An ice-cream shop expanded its offerings from 10 flavors to 45 flavors and noticed that its sales fell. Which of the following ideas from behavioral economics explains why this happened?
A) Consumers like balance.
B) Consumers like choices but not too many.
C) Consumers want fairness.
D) Consumers make mistakes.

Question

Quizplus · Accepted Answer

When consumers are presented with too many options, it can lead to decision fatigue, making it harder for them to make a choice. This phenomenon, known as choice overload, suggests that while consumers appreciate having options, an excessive number can be overwhelming and lead to decreased satisfaction or decision paralysis, ultimately reducing sales.

An Ice-Cream Shop Expanded Its Offerings from 10 Flavors to 45