The Paradox of Choice and Diamonds: How a Simplified Selection Led to More Sales
November 18, 2020
From toilet seats to menus – is more choice better? Not necessarily – an extensive range of options can seem overwhelming and even frustrating.
Such circumstances can lead to two non-ideal scenarios: the user may make a difficult decision or, even worse, no decision at all. The fear of making the wrong choice because the different options seem too similar or are not well understood can paralyze the decision-making process.
In this context, people often speak about the paradox of choice, also known as the “too-much-choice effect”. Put simply, it is about the fact that having too many options hinders decision-making. Experts have criticized the effect’s universal validity. According to a meta-analysis by Scheibehenne et al., certain conditions must apply for choice overload to happen.
In one of our recent projects, we also discovered that factors such as complexity, lack of prior knowledge and (perceived) density of supply prevent potential buyers from making a purchase decision.
The “ohs” and “hallelujahs” of buying diamond rings
MyDiamondRing allows its customers to customize a diamond ring with the help of a ring configurator. First, a setting is chosen; then, the right diamond is selected.
As part of our user research for this website, we found that most visitors got through the configurator without problems – up to the point where they had to choose a diamond.
The large selection of diamonds on the site was sometimes overwhelming:
The large selection of diamonds, along with the impression that they all looked the same, bothered the visitors. The following factors played important roles in this context:
Perceived complexity and density of choice
Most users failed to even try to understand the difference between the diamonds offered. The only distinguishing feature they could detect – after a longer consideration period – was the different carat weight. They largely overlooked other characteristics such as color and purity.
We observed that frustrations were not only caused by the sheer number of options, but also that complexity and the density of choices played important roles. In an assortment with a high perceived density, the alternatives all resemble each other. The less the options differ from one another (or the less the differences are perceived), the more difficult it is to make a decision.
Lack of prior knowledge
Furthermore, we discovered that many users simply lacked the knowledge necessary to understand and clarify the additional distinguishing features. Most of the users had little experience with buying diamonds.
In such circumstances in which the customer has little previous knowledge, offering an extended range simply seems to be problematic. People who do not yet have a precise idea of what they want are quickly overwhelmed by having too large a selection. Conversely, those who already know exactly what they want appreciate being able to choose from a wider selection.
At this point, the visitors refrained from making a decision and either concluded that they needed advice or simply left the site.
The wide range of products, catering to every taste and budget, meant that the users avoided the process altogether due to overstrain and fear of making a wrong decision.
Easier decision-making through recommendations and a shortened display
The website’s visitors emphasized again and again that at this point, they would rather seek advice from an expert who could tell them which diamond would be best for the selected ring setting.
This feedback was incorporated into the page’s revisions. In the new version, MyDiamondRing provides recommendations and takes away the fear of making wrong decisions. In addition, it added a box with explanations of the diamonds’ distinguishing features to help users decide.
In order to avoid overwhelming visitors with the large number of options, only a small part of the assortment is listed in the recommendations section. Further choices are only shown upon request. That way, potential buyers with little previous knowledge are not overwhelmed, while those who already have a clear idea of their ideal diamond can find the perfect gem from among the website’s extensive product range.
In short
Human decision-making behavior harbors interesting paradoxes. On one hand, we often want the greatest possible freedom of choice. On the other hand, such a wide range of offerings sometimes makes the selection process difficult. User research helps us to determine how a product range affects people and whether the options offered cause joy or frustration. In the latter case, it is important to not only rely on reduced offerings but also to examine what exactly is clouding the decision-making mood.