A TV streaming service offers three different packages of channels to customers, even though some customers would prefer more. What concept from behavioral economics explains why the streaming service believes that it will sell more subscriptions with three services than if it offers customers the ability to choose the channels they want from its 150 channel line-up?
A) Consumers want fairness.
B) Consumers like balance.
C) Consumers like choices but not too many.
D) Consumer make inaccurate risk assessments.

Question

Quizplus · Accepted Answer

The concept from behavioral economics that explains this phenomenon is that consumers like choices but not too many. Offering too many options can lead to choice overload, which can make decision-making more difficult and potentially lead to fewer sales. Limiting options to a manageable number can simplify the decision process and increase the likelihood of a purchase.

A TV Streaming Service Offers Three Different Packages of Channels