A new study from the University of Pittsburgh and the University of Southern California found that customers prefer low priced products and are even more satisfied if the products in a shop are arranged according to their benefits rather than their features.
How often have you gone shopping and looked at the price of something before reading its features? Probably more often than you'd like to admit. A new study by researchers from the University of Pittsburgh and the University of Southern California found that customers prefer low priced products and are even more satisfied if products in a shop are arranged according to their benefits rather than their features.
For the study, researchers organized an assortment of nutrition bars according to their benefits (muscle-building, fat-burning) on one shelf and according to their features (fruit bars, nut bars) on the other. Before the study began, researchers already established that customers prefer low-priced products.
During the study, participants were asked to choose a product from both shelves. Researchers noticed that most participants preferred the shelf where the products were organized according to their benefits. The reason being, when products are arranged according to their benefits, the distinctions are lesser and it is easier to focus on the prices.
However, researchers of the study state that this is not always a good option because though products become less distinctive, they may not be as similar to each other as they appear to be. Moreover, by choosing the cheaper product, customers may lose out on the quality of another product that can be purchased only for a few extra dollars.
"Companies have an almost infinite number of options in setting up their product assortments, especially online. Organizing options makes decision making easier, but the decision about how to organize also matters. As a form of choice architecture, assortment organization shouldn't be overlooked - it can make a big difference for both consumers and companies," the authors conclude.
The study can be found in the Journal of Consumer Research.
