Learn why reducing the number of choices can actually lead to higher sales, as demonstrated by the success of simplifying the Head & Shoulders shampoo variations. Explore Sheena Ainga's study on supermarket jams and its impact on intrinsic motivation. Discover the negative effects of too many choices on consumer behavior and decision-making. Find out how McDonald's doubled their sales by simplifying their menu and the quest to find the optimal number of choices for businesses. Explore the consequences of choice overload, from decreased decision-making likelihood to lower satisfaction, and how it impacts dating, relationships, and retirement savings.
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Quick takeaways
Reducing the number of choices increased sales for Head & Shoulders by 10%, challenging the belief that more options lead to more sales.
Having too many choices makes people less likely to make a decision, more likely to make sub-optimal choices, and results in decreased satisfaction in various areas.
Deep dives
Reducing Choice Increases Sales
Contrary to conventional wisdom, reducing the number of choices actually increased sales for Head & Shoulders by 10%. This finding challenges the belief that more options lead to more sales.
The Optimal Number of Choices
According to Professor Sheena Ainga, the ideal range for choices is between three and six. Offering too few options can lead to insufficient choices, while offering too many options overwhelms and decreases satisfaction.
The Negative Impact of Choice Overload
Research shows that having too many choices makes people less likely to make a decision, more likely to make sub-optimal choices, and results in decreased satisfaction. This applies to various areas, including investing, dating, and consumer purchases.
In the early 2000s Head and Shoulders, the anti-dandruff shampoo product, sold 26 variations of their shampoo. The thinking was, the more choice, the more sales.This made sense to almost everyone, except today’s guest. See, today’s guest, the world leading expert on choice told Proctor and Gamble, the company behind Head and Shoulders, to reduce the number of variations from 26 to 15.
And when they did, sales increased by 10%. Find out why on today’s episode of Nudge, featuring the brilliant Sheena Iyengar.