1. bookVolume 3 (2011): Issue 1 (May 2011)
Journal Details
License
Format
Journal
First Published
30 May 2019
Publication timeframe
2 times per year
Languages
English
access type Open Access

When More is Less and Less is More: The Psychology of Managing Product Assortments

Published Online: 19 Jul 2014
Page range: 8 - 15
Journal Details
License
Format
Journal
First Published
30 May 2019
Publication timeframe
2 times per year
Languages
English
Abstract

The strategy of giving customers what they want can backfire when it comes to designing and managing product assortments. Not only does offering more options lead to higher costs for the company, larger assortments often lead to lower probability of purchase and decreased satisfaction due to choice overload. Surprisingly, most consumers (as well as many managers) are unaware of the drawbacks of larger assortments, displaying preference for the greater variety of options even in cases when such variety makes consumers less confident in their decisions and lowers their satisfaction with choice. Understanding the psychology of choice gives managers a competitive advantage, allowing them to design assortments and product lines that create value for both the company and its customers

Keywords

Chernev, Alexander (2003), “When More Is Less and Less Is More: the Role of Ideal Point Availability and Assortment in Consumer Choice,“ Journal of Consumer Research, 30 (september), pp. 170 - 83. Search in Google Scholar

Chernev, Alexander (2003), “Product Assortment and Individual Decision Processes,” Journal of Personality and social Psychology, 85 (1), pp. 151 - 162. Search in Google Scholar

Chernev, Alexander (2006), “Decision Focus and Consumer Choice among Assortments,“ Journal of Consumer Research, 33 (June), pp. 50 - 59. Search in Google Scholar

Chernev, Alexander (2008), “the Role of Purchase Quantity in Assortment Choice: the Quantity-Matching Heuristic,” Journal of Marketing Research, 45 (April), pp.171 - 181. Search in Google Scholar

Chernev, Alexander and Ryan Hamilton (2009), “Assortment size and option Attractiveness in Consumer Choice among Retailers,“ Journal of Marketing Research, 46 (June), pp. 410 - 20. Search in Google Scholar

Hamilton, Ryan and Alexander Chernev (2010), “Managing Product Assortments: Insights from Consumer Psychology,” in Kellogg on Marketing, 2nd ed. (editors Alice tybout and Bobby Calder). new York, nY: Wiley. Search in Google Scholar

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