Choice Overload Paradox in Online Shopping Environment

Choice overload appears to be the norm in the age of big data. The trend in consumer spending has been from offline to online over time. When given both extensive and limited options, Iyengar and Lepper performed a field experiment on jam purchases. Limited choice typically increases the urge to purchase, whereas extensive choice initially draws customers but does not encourage subsequent purchases. Has the proliferation of online shopping models that offer more options than traditional offline shopping models been hampered by choice overload? A simple mathematical model and a field experiment were used to demonstrate this paradox. A combination of quantitative and qualitative approaches was used in the experiment and data analysis. It was discovered that merchants might maximise consumer utility while still achieving their own goals of profit maximisation by interfering with consumer choices.