The Power of Choice

Abstract

Almost in every city in the world, there is a bar street, where you will find all kinds of bars to choose from in a concentrated area. Don’t the owners know that there will be more competition if they are so close to each other? Now take a moment and reflect on your own shopping preference. Would you prefer a store with a big assortment or a small one? People like to have choices, while they don’t know always know how to make one. When confronted with too many choices, consumers tend to be paralyzed by these and shy away from purchase decisions, to the detriment of the retailers. Individualism is the epitome of today’s consumerism. Customization on an individual level or a differentiation among customer segments is of growing importance for companies in order to retain customers and extract deserved value. However, companies often fail in creating customized offers.