Monday, February 27, 2017

Is Choice Overload Dependent on the Sales Channel?


The conclusion from the paper about choice overload in the wine market seems to indicate that choice overload does not happen in the case of wine. I found that paper to be somewhat narrow focused. What if the choice overload effect for wine was dependent on the retail / sale channel?

As discussed in class wine is different and far more complex compared to yoghurts or jam, however, intuitively it does seem strange that there would be no choice overload whatsoever. The paper focused on wine sold in specialized retail shops and it seems that no choice overload happens there. I can agree with that from personal experience. Every time I enter K&L, even if it is without the objective of buying a bottle, I always end up buying something as there is such a big selection that I always spot an interesting offering which sparks my interest. In brief, a consumer that enters a wine shop is looking forward to a broad selection and that actually increases his satisfaction of the purchase.

I’m not sure the same reasoning is valid for other settings though. In supermarkets for example, consumers are shopping for their groceries and they may want to buy a bottle of wine on the side. If the selection is too big however, they might be “scared off” and feel like they do not have time to properly asses a buying decision, as the main reason they are at the shopping center is to buy groceries. In brief, a consumer might be more frustrated with their wine choice, regardless of the bottle, thus deciding not to buy.

For restaurants, the previous posts and comments make a good point. In most cases it seems like there is choice overload, unless a sommelier service is present (which I guess is the point of having a 1000+ wine list) whose ultimate goal is to narrow down and advise the selection for the customer.

One interesting channel which I feel hasn’t been take in consideration enough in the choice overload discussion is online sales. Here I would like to compare 2 different models. The first is KLwines online, the online shop of the retailer I mentioned in paragraph 2 which has more than 9900 wines in catalogue; the second is sommly.io, a startup that imports Italian wines with 41 wines offered.

K&L has a very easily searchable database with a lot of different tags per wine. The website is set up in order to enable the user to narrow down his search, then browse the selection. Without knowing what to look for, it is very easy for the user to get lost in an endless loop of research / filtering / sorting. Even with some criteria in mind, the offer is probably going to still wide, so deciding factors tend to become the critic scores (which are showed quite plainly with the wine’s price). As discussed in class previously, not everyone feels satisfied when relating to critics’ scores.

Sommly instead has a much newer looking UI, with the picture of the wine being the main object on the screen. The search is not very refined, but given the small selection, it is quick and easy to just browse all the catalogue. I feel like each time I go on Sommly, I am much more tempted of buying a wine, as I can usually pinpoint the bottle that seems more interesting among all those offered. I would be more “satisfied” of my purchase decision in this case.

It would be interesting to run experiments and have data regarding customer satisfaction and buying decisions in settings with online choice overload.

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