Imagine that the manager of Dell’s university sales division (which sells computers and other technology equipment to universities for classroom and office use) has recently come to you for advice. She says, “My plan is to expand the number of choices we offer our customers exponentially. We know people like choice, so the best thing to do is to give them even more of what they want. If our customers like choosing from 4-5 options, they will love choosing from 15-20 options. Our sales should go through the roof!” Which of the following statements is the best assessment of this plan?

Question

BlackTom AI · Accepted Answer

The scenario hinges on research about choice overload: more options can attract interest but too many can impede decision making. Now let's evaluate each option in turn.

Option 1: 'The manager is correct. Offering consumers more choices is likely to lead to more sales.' This overstates the positive impact of more choices. While some increase in perceived freedom and variety can attract attention, empirical findings show that excessively many options often overwhelm customers, leading to choice paralysis or regret, which can actually suppress sales or reduce satisfaction. So this option misses the nuance that more choices can backfire.

Option 2: 'The manager is correct. Consumers don’t like the process of choosing when the number of choices are high, but they will be more satisfied by their choice in the end.' This partially captures a phenomenon: people may feel burdened by many options during the choice process, yet claim satisfaction after selection. However, it still implies a net positive outcome from a large choice set, which ignores evidence that extensive menus can decrease overall willingness to buy, effort, and satisfaction due to decision difficulty. It’s not fully aligned with the best-supported assessment.

Option 3: 'The manager is partially correct. Consumers are attracted by choice, but too many choices can make it hard to choose, resulting in potentially negative outcomes.' This option integrates two well-supported ideas: (1) people do like having options and variety, (2) excessive choice can impair decision making and lead to negative results like paralysis or regret. It presents a balanced view consistent with the literature on choice architecture and consumer behavior.

Option 4: 'The manager is incorrect. Consumers do not like choice and they will have a difficult time choosing.' This is too sweeping and inaccurate. It ignores that some level of choice is valued by consumers and can be beneficial if the options are well-structured. It denies the positive aspect of having options that many buyers appreciate, making it an extreme position.

Option 5: 'The manager is in incorrect. Varying the number of choices will likely have far less impact than she anticipates.' This underestimates the impact of choice architecture. Research indicates that the number of options can significantly influence decision effort and satisfaction, so claiming a minimal effect is not well-supported.

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