“I don’t like that fast food, there are too many choices and I never know what to choose. Let’s go to the other one”. Did you ever say this or has it crossed your mind? Personally, I would associate this statement with Taco Bell. Honestly, by the time I’ve finished ordering, I’m already tired (decision fatigue is a real thing!). Running shoes manufacturers are also catching up, offering different types of soles, shapes, materials, for walking, running, jumping, sitting, with or without laces. The example above is the choice paradox in a nutshell.

Whenever there are too many options at hand, most people either drop the decision process altogether, let others decide (decision fatigue!) or enter the analysis paralysis.

A bit of background to choice paradox

The choice paradox has been studied in 2000, by Iyengar and Lepper in a study on… jams. Barry Schwartz wrote a whole book about the choice paradox. So, there is scientific research backing up the theory. Here what the choice paradox says: the more choices you have the less likely you are to make a decision that you’ll be satisfied with.

Analysis paralysis is what happens when there are too many possibilities and you fail to react in due time, because you don’t know which one to choose. Overthinking paralyzes action. Popular examples are the tale of Buridan’s ass or Aesop’s fable “The Fox and The Cat”. If you prefer more “mature” examples: waterfall projects, where a huge amount of time used to be spent in analysis and by the time the project ended, the result was almost obsolete due to market changes.

The effect of choice paradox

As the titles says, choice paradox (and analysis paralysis) lead(s) to reducing transactions. In psychology, a transaction is any interaction between an individual and his physical or psychological environment. In marketing, that’s simply sales.

Therefore, when too many choices are given, people might abandon the interaction altogether.

When a company or an environment offers few choices, customers will complain about lack of variety. However, sales figures show they are not that bothered. People who like to complain about lack of choice, are a bit… spoiled. They feel that their uniqueness is affected because they can’t make their order ultra-customized.  BUT, here’s the catch, offering few choices to start with doesn’t mean you have to be inflexible. You can provide the customer with 3-5 options (like car manufacturers do) and be flexible to adjust some things ON DEMAND. Now, that’s something that will make the client feel special.

For a company, more options also mean a higher marketing budget in order to highlight the differences between products and have a reasonable reach of audience.

Aren’t choices good? Why is this an issue?

That’s a good question. Why aren’t people happy when they are free to do whatever they want? Because most people don’t own their decisions. Others are overthinkers or simply avoidant or codependent personalities. What if they will be judged for their poor choices? It could be a big expenditure. Then there’s FOMO – what if I choose option A and something better comes up or already is out?

What does this all lead to? Anxiety. Plus, choosing means additional work for the brain and as explained in a completely different topic, here, our brain is naturally “lazy” and doesn’t like that. On top of that, if you’re depressed you may face a “brain fog”, meaning that thinking straight might be difficult.

People don’t like to discover they’ve made a bad deal. It generates resentment, they feel tricked, it can even hurt their self-esteem. They also don’t like to defend their choices.

What happens when you have only a few choices?

In the end what makes a good choice? Good for whom? Good for what? Example: which car is better: a Lexus or a beetle? Well, better for what? If you’re going to use the car just go to the supermarket and occasionally drive outside the city on the weekends, plus the gas money would be a problem, the beetle is a far better deal. Quality means fit for purpose. What problem does your choice have to resolve?

Do you know what the best wine is? The one you like. Do you know what the best food is? The one you like. Do you know what the best car is? The one you actually have.

Indecision is the worst type of decision, because you choose not to act and opportunities don’t stay forever, they vanish after a while. Choosing poorly can help to fail fast, learn fast and recover fast.

When there are only 2-3 choices to pick from, usually they are completely different, such as: light beer, dark beer and maybe amber. Buyer’s satisfaction increases because he / she has chosen well (!), even if it’s because there was no other viable option.

Solutions

According to studies, companies should focus on the minimum number of choices that still differentiate them in the market.

At a personal level, the solution is to own your decision (oh no, not adulthood again!). If you’re afraid of being judged, you really need only one argument for whatever you choose: you liked it. Sure, we can perform a rational analysis on anything: houses, cars, computers, phones, clothes. So what? You’re not a robot meant to take purely rational decisions. You should enjoy life and be happy with your choices.

What if you discover you’ve made a really bad choice? Simple. Read here the answer.Why beat yourself up? Have some self-compassion.

Still don’t know how to make a good decision? I’ve explained here a simple method.

Have fun with your choices! 😊

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