Barry Schwartz is a Marketing Genius

The podcast by Barry Schwartz opened my eyes to the effects of consumer decisions. Many people feel that maximizing choices also maximizes the freedom of consumers. Schwartz argues that by eliminating consumer choices can reduce anxiety for shoppers and increase satisfaction. Barry Schwartz talks about two outcomes in the decision making process.

One of the effects of having too many choices leads to paralysis. This paralysis makes it difficult for consumers to make a decision from the numerous options. When people go through paralysis, they continue to put off making a decision and therefore suffer the consequences. For instance, as people withhold from getting a job because they can not choose what they are interested in, they lose out on making an income and then before you know it, there is a recession. People are getting laid off, and there are no job opportunities available. Another negative effect that Barry mentioned was that even when people do make a decision, they end up unsatisfied by their choice and regret their decisions. They continuously contemplate whether or not they have made the best decision and imagine that the alternatives would have been better. Consumers feel that they are missing out on the opportunity cost and are less satisfied with their decision, even if they made a good decision. When I was 16, my parents let me choose a new car, a price under $27,000. This was an incredibly hard decision for me and it took a lot of thought. I looked at all of the options, researched each type on the Internet, and went car shopping. I test drove the Honda Accord, the Acura RSX, the Toyota Camry, and the Mazda 626. This was a very difficult decision for me, seeing as how this was a huge investment. I ended up choosing the Honda Accord. After my parents bought the car for me, I continuously doubted my decision. The alternatives looked more appealing. I felt less satisfied with my decision, but then I learned that it is okay to settle. I learned that you really have to ask yourself, “What do I want?” Whenever I am faced with the choice of picking a restaurant, I choose based upon how I would want the experience to make me feel.

Another main point Schwartz discusses is about the escalation of expectation. One time I had to buy a stereo system for my dad. I had absolutely no expectations when I went to Best Buy. As I went to the electronics aisle, there were 15 different types of stereo systems with all different features. I bought what I believed to be a good stereo system, but since there were so many options that increased my expectation, it also lessened my satisfaction. I did not know if I was really making the right decision. Maybe the secret to happiness for many people is having low expectations so you do not get disappointed. When people hype things up for me, I get overly excited and end up getting disappointed when it does not meet my expectations. I am sure that many consumers can relate to many of Barry’s ideas when it comes to making decisions.