How Many Product Variations Are Too Many?

Consumers will tell you that they want many versions of a product, but how many is too many? A series of experiments outlined in this Harvard Business Review article found that consumers’ perceptions of how many choices they prefer change depending on whether they intend to use an item for pleasure or to meet a functional need.

Consumers motivated by pleasure prefer a large assortment; however, when seeking to meet a utilitarian need with the same product, they will be satisfied by a smaller assortment from which to choose.

Interestingly, the composition and size of assortments not only affect customers’ ability to find a product they like but also influences their decision to visit a store or website in the first place.

Retailers should pay attention to the extent to which their target customers are motivated by pleasure or utility: for instance, consumers in a commercial area are more likely to be motivated by utility than consumers in a residential area.