Decision experience in hyperchoice: the role of numeracy and age differences
Natasha Peterson1, Jiuqing Cheng1
1Department of Psychology, University of Northern Iowa, Cedar Falls, IA 50614 USA.
Current Psychology (New Brunswick, N.J.)
|September 21, 2020
Summary
Hyperchoice, or too many options, increases decision difficulty, especially for individuals with lower numeracy. Older adults also report greater difficulty and lower satisfaction when facing numerous choices.
Area of Science:
- Cognitive Psychology
- Consumer Behavior
- Decision Making
Background:
- The proliferation of products due to new technologies has led to hyperchoice, a condition where consumers face an overwhelming number of options.
- Previous research on the impact of hyperchoice on decision experience has yielded mixed results, suggesting potential moderating factors.
- Individual characteristics like numeracy and age may influence how people experience hyperchoice.
Purpose of the Study:
- To investigate whether individual characteristics, specifically numeracy and age, moderate the decision experience under hyperchoice conditions.
- To examine the effects of hyperchoice versus simple-choice conditions on decision difficulty and satisfaction.
- To understand the interplay between numeracy, age, and the number of choices on consumer decision-making.
Main Methods:
- Recruited 116 older adults and 112 younger adults via Amazon Mechanical Turk.
- Administered a numeracy scale and consumer/gamble choice tasks with manipulated option quantities (hyperchoice: 16 options; simple-choice: 4 options).
- Measured post-choice difficulty and satisfaction, analyzing data using multiple regressions.
Main Results:
- Hyperchoice led to increased decision difficulty in both consumer and gamble tasks.
- An interaction between numeracy and hyperchoice was observed in the gamble task: lower numerate individuals experienced more difficulty and dissatisfaction under hyperchoice.
- Older adults consistently reported greater decision difficulty and lower satisfaction than younger adults, irrespective of the choice condition.
Conclusions:
- The negative effects of hyperchoice on decision experience are moderated by individual factors such as numeracy and age.
- Merchants should consider strategies to simplify choices and mitigate decision fatigue for consumers.
- Promoting numeracy education may help individuals better navigate hyperchoice scenarios.
Related Concept Videos
01:20Decision Making
586
Decision-making is a fundamental cognitive process that involves evaluating alternatives and selecting among them. This process can range from simple choices, such as deciding what to wear, to complex decisions, like choosing a major in college or a career path. The complexity of the decision often dictates the approach we use, which can be broadly categorized into two types: automatic and controlled decision-making.
Automatic decision-making is fast, intuitive, and relies on gut feelings...
Automatic decision-making is fast, intuitive, and relies on gut feelings...
586
01:14Decision Making: Traditional Method
4.9K
The process of hypothesis testing based on the traditional method includes calculating the critical value, testing the value of the test statistic using the sample data, and interpreting these values.
First, a specific claim about the population parameter is decided based on the research question and is stated in a simple form. Further, an opposing statement to this claim is also stated. These statements can act as null and alternative hypotheses, out of which a null hypothesis would be a...
First, a specific claim about the population parameter is decided based on the research question and is stated in a simple form. Further, an opposing statement to this claim is also stated. These statements can act as null and alternative hypotheses, out of which a null hypothesis would be a...
4.9K
01:37Reason and Intuition
7.3K
The human brain processes information for decision-making using one of two routes: an intuitive system and a rational system (Epstein, 1994; popularized by Kahneman, 2011 as System 1 and System 2, respectively). The intuitive system is quick, impulsive, and operates with minimal effort, relying on emotions or habits to provide cues for what to do next, while the rational system is logical, analytical, deliberate, and methodical. Research in neuropsychology suggests that the...
7.3K
01:24Revisionist Views of Adolescent and Adult Cognition
202
A revisionist approach to Jean Piaget's theory of cognitive development has brought new insights that challenge and reinterpret his established ideas. Piaget proposed that the formal operational stage, emerging in adolescence, represents the culmination of cognitive maturity. During this stage, individuals are said to develop abstract thinking, engage in systematic problem-solving, and show a form of egocentrism, believing others are as preoccupied with their behavior as they are...
202
01:25The Anchoring-and-Adjustment Heuristic
7.6K
In order to make good decisions, we use our knowledge and our reasoning. Often, this knowledge and reasoning is sound and solid. However, sometimes, we are swayed by biases or by others manipulating a situation. For example, let’s say you and three friends wanted to rent a house and had a combined target budget of $1,600. The realtor shows you only very run-down houses for $1,600 and then shows you a very nice house for $2,000. Might you ask each person to pay more in rent to get the...
7.6K
01:09Decision Making: P-value Method
6.6K
The process of hypothesis testing based on the P-value method includes calculating the P- value using the sample data and interpreting it.
First, a specific claim about the population parameter is proposed. The claim is based on the research question and is stated in a simple form. Further, an opposing statement to the claim is also stated. These statements can act as null and alternative hypotheses: a null hypothesis would be a neutral statement while the alternative hypothesis can...
First, a specific claim about the population parameter is proposed. The claim is based on the research question and is stated in a simple form. Further, an opposing statement to the claim is also stated. These statements can act as null and alternative hypotheses: a null hypothesis would be a neutral statement while the alternative hypothesis can...
6.6K