Thursday, February 25, 2010

Too much choice is bad for your health

We used to think that choice = freedom. But, says Barry Schwartz, author of The Paradox of Choice, too much choice results in decision paralysis.

We find it hard to choose. Which starts us down the slippery slope to raised expectations, dissatisfaction and ultimately, clinical depression.

Walk into any supermarket, electrical goods or clothing store and you instantly face a bewildering array of choices. Hundreds of salad dressings, breakfast cereals and detergents. Multiple brands of music players, washers, dryers and coffee makers. Computers with more features than you will ever use. Jeans used to come in one style. Now they're slim, easy fit, distressed, stone-washed...



In the old days, the doctor gave you advice. Now she gives you options, each with different benefits and risks. The phone company used to rent us one-size-fits-all phones; now we buy our own cell phones, which comes in different colors, shapes, sizes and a flotilla of bells and whistles. We used to get married as soon as we could, now we worry whether to have a career or family first, or whether the girl or guy we're dating is the best we can get.

The problem with too much choice, is if you make a purchase, and it's not as good as expected, you may come to regret your decision. Which detracts from your satisfaction. With so much choice, there's many more ways be disappointed.

Then there's the opportunity cost - the benefits foregone by ignoring other choices. Like the case Schwartz cites of a guy "relaxing" on the beach in the New Hamptons pre-occupied with the idea that, with all his neighbors on holidays, he's unable to benefit from a rarely available parking space on the streets of Manhattan.

It turns out that when we make a choice, we often think it's the wrong choice, and blame ourselves, which detracts from enjoyment of the experience. Or we avoid making a purchasing decision, and miss out in other ways. Contributing further to our misery.

But not all the world is drowning in choice. Schwartz points out that in some parts of the world there is little or no choice. In the poorer countries of Africa, South America, the Middle East or Asia. He wonders whether we in the West could shift some of our surplus choice to where it is needed more.

So here's two workshops to explore how to reduce choice, increase satisfaction and experience happiness:

For customers

1. Make a list of all the things about products/services that make you unhappy, angry, disappointed or concerned.
2. Make a list of all the things about products/services generally that make you happy, delighted or excited.
3. Thinking about a product or service you recently purchased. What was it, what other choices were available and what were there main features/benefits?
4. How satisfied/happy are you now with your recent product/service purchase? How does it compare with other choices?
5. Describe a product or service that has a ridiculous number of features and options that make it diffcult to choose what to buy.
6. Describe a time when you avoided making a purchasing decision because you could not decide.
7. Describe another time when you made a product/service purchase, only to later feel you could have made a better choice.
8. If you had responsibility for the design, manufacturing and retailing of a product/service you are currently considering purchasing, what would you expect in order for you to be pleased, delighted or surprised.

For organizations

1. Think of a product/service category that you offer and describe all the different choices that people have available.
2. Make a list of all the different products and services and the variations available that compete with your product or service?
3. How could you change/transform your product or service so that it either sits within a different product/service category or gives the customer fewer clearer options to choose from?
4. What marketing strategies could you pursue so that you simplify the customer purchase options and at the same time satisfy unique market segments.e.g. separate sales channels only available in the specific geographical regions for the segment you serve.

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