THE PARADOX OF CHOICE: SIMPLIFYING CONSUMER CHOICES

Tuesday, December 13, 2016

The average Walmart has 100 000 items in store at any given time. Hamleys, the London toy store, contains over 250 000 toys. You can choose from over 27 000 000 books on Amazon.

We have moved from the early days of consumption, where only the necessary was bought, to the current state where we have become overwhelmed with choices. According to American psychologist, Barry Schwartz, a limited number of choices is better than a large number as having to choose from too many options becomes too laborious. Too many choices also leave people less satisfied with any choice they do eventually make as they fear a different choice would have been better.

“When providing consumers with choices, ensure that you do not have too many choices and that you are making the selection process easy for them,” says Derek Wilson, Head of online insurance and financial comparison website, Hippo.co.za, “When it comes to choosing an insurer, for example, it will take some time to select the best choice for your individual needs.”

On average, it would take a person a few hours to research and select the top options based on various factors such as client reviews, claim settlement statistics and products on offer. They then have to contact each and every one of these brands and go through the underwriting process in order to get the benefits and monthly premium. This does not take into account the difficulty in reaching the relevant contact person in the first place. So, consumers lose a lot of time, energy and money before they have even made their choice.

“Online comparison websites like Hippo.co.za ultimately looks out for the consumer, which is why we are able to help South African insurance and financial businesses. How? We are able to provide exclusivity in terms of the number and quality of brands that we host on the platform. We host top SA providers and top quality brands, highlighting their value propositions and products to consumers without them having to look through too many options,” concludes Wilson. Help potential clients access your business simpler and faster. Contact Hippo.co.za to find out how today.



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