On Jan 9, 2008, at 6:09 PM, Gretchen Anderson wrote:

> This research (http://www.apa.org/monitor/jun04/toomany.html) talks  
> about how the more adds/choices a person has the less likely they  
> are to pick on.

This is one of the key items in Barry Schwartz's book Paradox of Choice.

As for first hand knowledge, we experienced this recently during  
ethnographic research for a financial client (they do insurance and  
investment plans). Employers who only offered one option typically had  
enrollment/participation rates of 80-95%. Employers who offered  
multiple options typically had enrollment/participation rates of  
47-70%. The worst was an employer who only had a 47% enrollment/ 
participation from their employees. This employer offered plans from  
four different providers. The irony is that these are people who are  
consciously not participating in match plans. So, over half of the  
employees decide not to participate in retirement plans where the  
company is matching them and giving them free money for retirement.

As to why they don't participate? Well, there are a few reasons.
1. The entire planning for retirement process is intimidating and scary.
2. The marketing packet they get from each provider is large. This  
leads them to believe that it's a complicated process—more intimidation.
3. Add to #2 multiple packets and you get a compounded problem.
4. With multiple options, there's more information to wade through and  
they don't feel confident that they're making the right decision.
5. After they've made a decision, they're constantly questioning if  
it's the correct one.

Numbers 4 and 5 are highlighted in Schwartz's book.


Cheers!

Todd Zaki Warfel
President, Design Researcher
Messagefirst | Designing Information. Beautifully.
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