The “less is better” paradox and consumer behaviour: a systematic review of choice overload and its marketing implications

Abstract

Purpose This study, a systematic literature review, aims to review the state-of-the-art literature on choice overload from 2000 to 2023. Design/methodology/approach The paper reviews 53 research articles published in peer-reviewed journals, using thematic and descriptive analyses. The literature was selected using the PRISMA framework. Findings Recent research in consumer behaviour has found that too many choices can be detrimental to decision-making. This paper reviews the development of choice overload literature, methodologies used by researchers to study choice overload, small and large choice sets, antecedents, moderators and outcomes of choice overload and the contexts in which choice overload exists. Research limitations/implications Limited literature coverage because of the strict adherence to inclusion/exclusion criteria. The theory challenges the conventional choice models in psychology and economics according to which expanding a choice set cannot make decision-making worse and violates the regularity axiom, a cornerstone of classical choice theory. This review also identifies avenues for further research in the field. Practical implications A significant decrease in satisfaction or motivation because of too many choices would require marketers and public policymakers to rethink their practice of providing ever-increasing assortments to choose from because they could possibly boost their success by offering less. Originality/value This systematic review makes distinctive contributions by classifying the existing studies based on evidence “for” and “against” the existence of choice overload. The review also combines cross-context insights on assortment sizes, moderators and methodological commonalities and gaps to understand the multi-faceted nature and contextual nuances of choice overload.