On the other hand, when there is an increase in demand, more resources can be brought in at a minimal cost. This means that when demand for services is low, costs can be reduced accordingly. By outsourcing services, you can adjust the cost base and scale operations according to your needs. Outsourcing services can provide businesses with much greater cost control than having a fixed overhead. Watch Barry Schwartz’s TED Talk on ‘The Paradox of Choice’ - #paradoxofchoice #barryschwartz #consumerinsights #consumerbehavior #retail #engagement #experience #brand #tedtalk By carefully curating a selection that offers customers variety without overwhelming them, companies can create a winning shopping experience Overall, businesses must consider the paradox of choice when creating their product range. This approach has enabled Aldi to become one of the most successful discount retailers in the world.

By doing so, they have been able to attract customers looking for value-for-money products without compromising on choice. Instead of offering the 25,000 SKUs available in a traditional supermarket, Aldi opts for 2000 SKUs, allowing them to focus more on quality and price competitiveness. By balancing the scale and quantity of the offer, retailers can ensure customers have an enjoyable shopping experience without becoming overwhelmed.Īldi is an example of a retailer that has embraced this approach. This could involve introducing an essential range, covering the most important product categories while leaving space for more unusual or niche products. However, retailers can address this paradox of choice by providing a carefully curated selection that still offers customers enough variety. This can be particularly prevalent in online offerings, where customers must take the time to scan through pages of similar products before making a purchase decision. But choice is a paradox – too much overwhelms consumers and too little limits a brand’s market appeal.Īs consumers seek to simplify their lives and buying decisions, too much choice can create confusion, leading to reduced engagement with the brand. We often assume that more choice is better.

The Paradox of Choice by Barry Schwartz