Financial Daily from THE HINDU group of publications
Wednesday, Jun 08, 2005
Financial Daily from THE HINDU group of publications Wednesday, Jun 08, 2005 |
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Marketing
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Marketing Research `More the options, less the satisfaction' Purvita Chatterjee
Mumbai , June 7 CAN too much choice hurt? Cogito Consulting, FCB Ulka's consulting arm, has conducted a study on why many people end up unhappy rather than pleased when options expand or are overabundant. The study `Choice Behaviour' distinguishes between `Maximizers' — those who always aim to make the best possible choice — and `Satisficers' — those who settle for good enough, whether or not better options are available. Keeping this behaviour shift in mind, Cogito's study tries to understand the mindset of these consumer segments, especially in the context of the new economy where marketers consider the customers the king and load them with choices. The study reveals that increased choice results in maximisation. There is a greater presence of Maximizers in the relatively affluent segment, inflicted with greater choice. The study also shows that there is a greater presence of Maximizers among women than men. Satisficers are those who make choices without getting anxious and do not regret them later. Maximizers, however, are obsessed with making the "right" choice. Most Maximizers compare several products, before and after their purchase decision. Such behaviour is seen in almost every decision in life — from jobs to personal lives to the durables purchased, and even to things like places to eat at and movies to watch. When Satisficers find an item that meets their standards, they stop looking for more. But Maximizers spend time reading labels and consumer magazines and trying out various products. Maximizers collect information from several sources, especially those that aid them in comparisons. However, Satisficers mostly depend on word-of-mouth information and dealers; they have a more casual approach. Although no one can check out all options, Maximizers strive for that. Hence, decision-making becomes daunting as the number of choices increases. Even after selection, they are nagged by the alternatives they did not evaluate. Maximizers are more likely to make more objective choices than Satisficers, but get less satisfaction from them. When Maximizers have to choose, apprehension takes over, especially as they end the search. Explaining why more choice is not always better, especially for Maximizers, the study concludes that the cost of choosing one is the cost of not choosing the others. Assuming that opportunity costs reduce the overall desirability of the most preferred choice, then the more the alternatives, the deeper is the sense of loss and lesser the satisfaction over the ultimate decision.
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