Sheena Iyengar: How to Make Choosing Easier

A632.2.3.RB

We all want customized experiences and products -- but when faced with 700 options, consumers freeze up. With fascinating new research, Sheena Iyengar demonstrates how businesses (and others) can improve the experience of choosing. Identify four of the methodologies Sheena Iyengar suggests as methods of helping us improve our experience in choosing. Discuss the implications of two of these methods in terms of your own decision-making as an individual and a member of an organization. How else can you improve your ability to decide?

Many of us are bombarded with countless options and inputs as consumers and decision-makers. Sheena Iyengar (2011) believes that having so many choices leads to decision paralysis. In fact, Iyengar (2011) describes this as a choice overload problem which “affects us even in very consequential decisions, we choose not to choose even when it goes against our best self-interest.” Indeed, while many companies feel that the best way to accommodate their customers is to provide a little bit of everything for everyone. This belief, according to Iyengar’s (2011) studies revealed the contrary. For example, in one of her experiments, customers were presented with six jams and twenty-four jams for tasting, although more customers stopped to taste the twenty-four jams, many did not buy a jar of jam. However, of those that did stop to taste the six jam options, (30%) more people bought a jar of jam. Overall, choice overload drastically affects consumers and decision makers’ engagement, decision quality and satisfaction (Iyengar, 2011).

Iyengar (2011) also provided four techniques to mitigate the choice overload problem in order to make decision making more productive. These techniques include the following:

1. Cut: The ability to cut or limit the amount of options which lends itself to the belief that less is more. By preventing the initial overload, we are better suited to evaluate more practical options.

2. Concretize: When making decisions, consumers must understand the differences in their choices by comprehending the consequences of such decisions.

3. Categorization: People are able to process categories more effectively as it relates to differences than in choosing options; only when such categories make sense to the choosers (consumers) oppose to the choice maker.

4. Condition for complexity: Consumers (decision makers) are better at making decisions that involve more complexity when lead into the process at a gradual pace. Such conditioning allows the consumer to prepare and build excitement for upcoming more complex decision choices.

In terms of my decision-making process, I find that I cut and concretize more often than not. For example, not long ago I was in the market for a good pair of every-day walking shoes. Due to on-going back and knee pain, I concluded that I was willing to sacrifice price for comfort. As I began researching the best pair, I had three requirements in mind: functionality, versatility, and durability. During my initial search, there were over a hundred-recommended pair of shoes. Thus, in an effort to limit (cut) the choices, I began using the search filters which eventually brought my search down to three pairs of shoes that fit my needs. It was at this point that I shifted to the concretization part of making the best decision. Of the three pairs options and specialization, I conducted a visualization exercise with each pairs pros and cons to give greater weight and life to my decision. At this point I narrowed my search to two pairs and visited a local shoes store with the two pairs so that I could touch and try out each. Ultimately, I settled for a Merrell hiking shoe that suited my requirements and needs. I was able to come to an educated and definitive decision from hundreds to one in a relatively short period of time because I unknowingly used two of Iyengar’s (2011) techniques of making choosing a more productive experience. Moreover, I also find myself using these methods in many other areas of my decision making. I believe it is important to know what decision needs to be made and why before considering a hundred different options. By knowing and understanding the decision that needs to be made, I have been able to automatically limit (cut) options that apply to a given situation rather than be overwhelmed with options that provide more “fairy dust” than functionality. It is also important to me when making decisions to reflect and visualize the decision, its immediate benefits, and the second & third orders of effect.

Reference

Iyengar, S. (2011). How to make choosing easier. TED.com. Retrieved from http://www.ted.com/talks/sheena_iyengar_choosing_what_to_choose#t-810440.