E-Commerce: the paradox of choice and Digital marketing!!!
In the year 2000, Professor Sheena Iyengar, Professor of Management at Columbia University’s Business School, and Professor Mark Leper, Professor of Psychology at Stanford University, conducted an experiment in the United States which showed that a wide range of products in the same category, which attracts the interest of a larger number of people but sells less well, is not always the best choice and come to our Digital Marketing agency in Lahore.
To confirm their theory, the two professors posed as office workers in a shopping mall and organized a banquet where they alternately displayed 24 or 6 jars of jam of different flavors.
Digital experiment
The experiment consisted of giving each person who expressed interest in the jams a voucher with a discount code to buy the desired amount of jam jars, which were displayed at the food counter and come to our Digital Marketing agency in Lahore.
In the process, they discovered that:
1. The table with 24 different jams attracted more customers than the table with 6 jars of jam.
2. The average number of tastings in both cases was 2 per person.
However, the conversion rate, i.e. the actual purchases made at the grocery counter, was much lower at times when 24 different jam flavors were offered in the shopping center and join our Digital Marketing agency in Lahore.
The proportions were as follows:
– The 24 packages of jams in different flavors attracted the attention of 60% of the shopping center’s customers.
– On the other hand, the 6 jars of jams of different flavors attracted the attention of 40% of the customers.
– The 24 different flavors converted only 3% of those who received the coupon.
– On the other hand, the 6 jars of jams of different flavors converted 30% of those who received the coupon.
The conclusions reached by the two teachers on the basis of the objective data are as follows: A wide range of products of the same type confuses the potential customer, who prefers not to choose, for fear of making the wrong choice and thus losing his money and come to our Digital Marketing agency in Lahore.
Numerous psychological studies have shown that people have a strong aversion to loss.
In many cases, this kind of aversion manifests itself in the form of a strong feeling of guilt when returning home after buying a product or service.
For once in your life, you will have thought, “Was it right to buy this product?
When you are confronted with a wide range of products, the feeling of guilt works as a preventive measure paralyzes the potential buyer and causes him not to buy the product and visit our Digital Marketing agency in Lahore.
Online sales and the paradox of choice
Over the years, we have seen incorporate web marketing that this type of behavior, which has been studied offline, is also repeated in the area of sales via e-commerce platforms and come to our Digital Marketing services in Lahore.
When we explain the paradox of choice to the owners of online stores, we very often come across a rubber wall.
They do not want to hear reasons because they are convinced that they are right:
– They have a long experience in the (offline) industry
– They are afraid that one of their competitors will sell something they don’t have and make money from it.
– Amazon sells everything.
I will tell you right away that all these reasons are unfounded and show that the merchant has a precarious business model that will make him close in the long run and join our Digital Marketing agency in Lahore.
And I will tell you why:
1. We have a long experience in the field of e-commerce and the whole interest that our customers make profits and not sales (these are two very different things)
2. In order for your e-commerce platform to emerge, it needs to stand out from your competitors and have everything to go with it, even if it has many flea markets or Arab souks in one product category;
3. Amazon has not made a profit for more than 15 years. Can you afford it?
By the way, Amazon does not make big profits from the sale of the e-commerce platform, but from the sale of all its ancillary services: Amazon Web Services (i.e. everything it has learned over the years to be necessary for a company to be successful online and visit our Digital Marketing services in Lahore.
Conclusions
A successful e-commerce business must necessarily present a small number of products per category so that the potential customer does not feel lost and visit our Digital Marketing services in Lahore.
There are already various points of friction in online sales (the customer does not immediately bring the goods home, does not dare leave his credit card details, etc.).
Moreover, statistics tell us that 20% of the products offered on an e-commerce website account for 80% of sales and visit our agency known as Nomad’s Tech for Digital Marketing agency in Lahore.