Too many choices can lead to purchase paralysis.

Choosing the colour of your new Kitchenaid mixer, the style of your next iPhone case or what flavour of ice cream to buy is usually a fun part of the shopping experience. But can choice also be a bad thing? A study suggests that too many options can lead to overthinking, indecision and sadly, leaving without making a decision, or a purchase.

In 2000, psychologists Sheena Iyengar and Mark Lepper published a study that would disprove the assumption that more choices are better. The hypothesis being that the more choices you offer, the more customers you are likely to please.

The study...
They set up a tasting display of exotic jams at an upscale food market.
1. Shoppers saw a display with 24 varieties of gourmet jam.
2. On another day, shoppers saw a similar table with only 6 varieties of the jam.

Results...
Although more people were attracted to the large display than the small one, people who saw the small display purchased more often than the ones who saw the large one.

"Nearly 30% of the consumers in the limited-choice condition subsequently purchased a jar of Wilkin & Sons jam; in contrast, only 3% of the consumers in the extensive-choice condition did so." - Iyengar and Lepper, When Choice is Demotivating.

One thing is for sure, we enjoy having choices because it gives us a sense of control and satisfaction once we've made our decision. However, offering too many choices can make us become overwhelmed by the thought of making the right choice. Many choices means taking more time to examine and compare. Over time, that initial feeling of excitement slowly dwindles down, leading us to eventually walk out the door without making a purchase.

When contemplating the number of options you want to offer to your customers, remember this study and make sure you don't overwhelm your customers with too many choices.

Morty Silber, CEO

Mad Strategies Inc.
a Wizard of Ads Partner

How to make a pricey item look like a bargain.

Whether a customer interprets a product as being cheap or expensive is merely a reflection of how valuable it is to them. It`s a question of perception, and perceptions can be changed.

If consumers think your product is too expensive, you may not be giving them enough cause to justify the price. A little bit of information can go a long way in increasing a product`s perceived value.

Here are some simple things you can do to increase your product`s value.

The comparison - Put the product you want to sell next to a similar product that is much more expensive. Most customers won't go for the most expensive model but they also won't buy the least expensive one either. What they thought was expensive is now quite reasonable compared to the one next to it that is almost twice the cost! The same can be done by putting the featured product next to a similar yet less attractive model. The customer will be persuaded toward the "better looking and assumingly better performing" product.

Bits & bites - Breaking down the price into a monthly or daily amount can be easier to accept than the full price. Online services often do this to decrease sticker shock.

Adobe provides their customers with multiple pricing options to suit your needs but notice how they add a little yellow "Most Popular" tag on the second highest price point?

Explain the process and show them the guts - Explaining the work that went into making the product can definitely help justify the cost of a product. Also, giving the customer a view of the inner workings can be quite impressive. One company that is very successful at this is Dyson, the vacuum cleaner company.Explain the process and show them the guts - Explaining the work that went into making the product can definitely help justify the cost of a product. Also, giving the customer a view of the inner workings can be quite impressive. One company that is very successful at this is Dyson, the vacuum cleaner company.

It looks like quality, therefore it must be quality - Take two bottles of the same wine, put a different label on each, one being cheap looking and the other one fancy, and your mind will likely decide that the wine inside the bottle with the fancy label will taste better. See this for yourself in a video we've showed you before here.

Visual appeal works well for first impressions. Product photography is also quite effective at increasing customer confidence in a product and helps persuade them into buying. Bottom line... appearances matter when you are trying to increase a product's perceived value and price point.

Premiere Moisson pastries can seem quite expensive at first but if they taste half as good as they look.... "salivating"

What can you do to make your product seem like a steal?

Morty Silber, CEO

Mad Strategies Inc.
a Wizard of Ads Partner

The negative effects of offering discounts.

Discounts pull consumers in and then you never see them again... until the next sale! If a lower price is the only competitive advantage you have, it makes it more difficult for the returning customer to pay full price for your product the next time they need it.

Without a good reason, discounts are generally not a good idea and can leave full-price paying customers feeling cheated. 

Unless you are creative with the way you do them like this business did!

Reward your customers with a personalized discount. Make them feel special!

Leave your customers feeling great and pleasantly surprised!

So before you get sucked into lowering your price so you can make a quick sale, ask yourself, "Will it improve my reputation and my relationship with customers?", and "Will it attract the right kind of customer?".

Are you offering discounts in the right way?

Morty Silber, CEO

Mad Strategies Inc.
a Wizard of Ads Partner