“There are so many color options that I get tired just comparing them!”
“The menu has too many choices, so it takes me forever to order.”
“There are so many pricing plans that I can’t decide which one to choose…”
Have you heard comments like these from customers?
Businesses often increase choices in the hope of giving customers more freedom and enjoyment. However, too many options can sometimes have the opposite effect and make decision-making more difficult.
In this article, we'll explore how an abundance of choices affects customer behavior and sales performance.
1. What Is the “Jam Study”?
Are you familiar with the concept often referred to as the Jam Study?
It describes a psychological phenomenon in which having too many choices can actually make it harder for customers to make a purchase decision.
The idea originates from an experiment conducted by Professor Sheena Iyengar of Columbia University.
In the study, shoppers were presented with either:
- 6 varieties of jam
- 24 varieties of jam
While the larger display attracted more attention, the results showed that:
- The purchase rate for the 6-jam display was approximately 30%
- The purchase rate for the 24-jam display was approximately 3%
A similar study involving university students found that when students were asked to choose a report topic:
- A selection of 6 topics resulted in a 74% submission rate
- A selection of 30 topics resulted in a 60% submission rate
These examples suggest that increasing options does not necessarily increase decision-making.
2. Can Reducing Choices Increase Sales?
When customers face too many options, several things may happen:
- Comparing alternatives requires significant mental effort.
- Once customers start hesitating, every option begins to look equally attractive.
- Uncertainty may remain even after purchase, reducing customer satisfaction.
In some cases, customers may ultimately decide not to choose anything at all.
So how can businesses make selecting easier?
Even when many options are available, stores can guide customers toward a smaller set of choices for comparison.
Retail Examples
- Highlight recommended products through customer service, POP displays, and merchandising.
- Narrow the comparison to two products at a time during customer interactions.
For example:
Instead of presenting five options simultaneously, compare Product A and Product B. After narrowing the choices, compare the preferred option with Product C if necessary.
This reduces decision fatigue and helps customers move toward a purchase.
Restaurant Examples
- Use larger photos and descriptions for signature menu items.
- Add icons or visual markers to popular dishes and seasonal specials.
These visual cues help customers identify strong choices quickly.
Service Business Examples
(such as salons, spas, or wellness services)
- Simplify service structures, such as:
- Basic Package + Options
- Standard Plan vs. Premium Plan
- First ask customers what outcome they want to achieve, then recommend the most suitable service.
This shifts the focus from comparing every option to selecting the solution that best matches their needs.
3. What If You Already Have Too Many Products or Menu Items?
If reducing choices is difficult, it may be helpful to conduct an ABC Analysis of individual products or services.
Evaluate each item based on:
- Sales revenue
- Gross profit
Items that rank in the C category for both sales and profitability may warrant further review.
Possible actions include:
- Discontinuing products or services
- Replacing underperforming offerings
- Improving existing products or services
However, decisions should not be based solely on numbers.
It is equally important to gather feedback from:
- Customers
- Frontline staff
- Store managers
Combining quantitative data with on-the-ground insights often leads to better decisions.
Conclusion
Offering customers choices is important, but more choices do not always lead to more sales.
Sometimes, making decisions easier creates better customer experience and improves business results.
By guiding customers toward suitable options, highlighting recommendations, and periodically reviewing your product assortment, you can reduce decision fatigue and increase purchase confidence.
Does your store offer a number of options that feel comfortable and easy for customers to navigate?
