An Analysis on the Impact of Choice Overload to Consumer Decision Paralysis

Abstract

As consumers make purchase decisions, they often encounter a large number of options from which they base their choices. Traditional theories such as the Rational Choice theory imply that the more options involved, the more beneficial for the consumer. However, recent studies suggest otherwise. One such study is that of Choice Overload, a phenomenon in which individuals encounter difficulty when they are presented with too many options. Some studies show that Choice Overload causes paralysis in analysis in different industries. Decision Paralysis is the abandonment of making a decision due to overanalysis. The paper focused on proving if Decision Paralysis would take place when there is Choice Overload by analyzing whether the different antecedents of Choice Overload, namely Decision Task Difficulty, Choice Set Complexity, Preference Uncertainty, Decision Goal, and Asymmetric Information, would be affected by the number of options available. A survey was used to measure the different variables, and the data were analyzed through logistic regression and ordinary least squares regression. The results of this study indicate that Decision Task Difficulty and Asymmetric Information directly impact Choice Overload, which then contributes to the high probability of the occurrence of Decision Paralysis. It is difficult for consumers to choose when more options are offered; thus, abandoning their purchasing decision.

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