When Do Large Product Assortments Benefit Consumers? An Information-Processing Perspective

Abstract

Retailers frequently attempt to attract shoppers by offering large product assortments. The prevailing literature on assortments has recognized that although large assortments benefit consumers by providing many choices, wide choices also challenge consumers to use extensive cognitive processes in making purchase decisions. Therefore when retailers offer extensive product assortments, they may also be adding cognitive costs to consumers—costs that may diminish the assortment's attractiveness. This research draws on the literature related to the Heuristic-Systematic Model (HSM) of information processing and the literature related to optimal stimulation level (OSL) in testing for the presence of two possible processing benefits provided by large assortments: their capacity to aid consumers in achieving decision-making certainty and their ability to provide consumers with desired stimulation. In two experiments, we find support for both models of assortment evaluations and demonstrate that purchase context and individual traits can lead consumers to prefer large assortments from a processing perspective.