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having choice

While in western societies we have started to aknowledge that sometimes we have too much choice (look at soda choices or ice cream flavors) we often forget the basic physchology benefiting two options in stead of just one.

A while ago I worked on a school project involving the supposed launch for a new sustainable hotel line. Students ran off and in a week came back with brilliant (and sometimes not so brilliant) executions of strategies to position the imaginary hotel line as either very mass, or very high-end. We presented last. With my team, we recognized the lack of any, and I mean any, substantially recognizable sustainable hotel line in people’s minds. Could you name one? I don’t think so. So based on psychological research proving that when there is a new product (only one option of it) introduced to people, they tend to be scared of it. They don’t know what to do with it. An example was the bread-making machine. When it came out, noone was buying it. It was expensive and seemingly had little value to people. A bread-machine, wait what? So, some smart person intrduced another line of those. Facing two choices, with distinct differences, people made their chocie, and all of a sudden the breadpmaking maching did not seem so alien any more.

Based on this research, and with this example in mind in case of questions, we went ahead and boldly presented our plan for introducing two lines of sustainable hotels to the market. We gave them fancy names, nature-inspired logos to keep the green-washing going, and rolled out a presentation to prove we were right. Students were dumbfounded, the teacher said, wait whaat, but the person who in end judged the assignment was quite fascinated. She thought that is exactly what needs to happen.

Forbes, not too long ago, predicted that the Nissan Leaf will be a sales disaster in the US. Yes it seats 5, and is kind of like a real car they say, might even have vitamin C infused air for the airconditing inside, but they said – disaster is coming. Then this week Chevrolet Volt came forward with their proposition for an electric car. Much more expensive, an absolutely different experience. Very Chevy! Considering these cars are the first ones to be actively available to the public at a time when it is ready to listen, having two options makes sense. In this case, I think the real benefactor will be the Leaf. It was known first and it is more readily available to the public.

Good for both companies that we have two options. For now, it doesn’t matter which one you choose. But you will be choosing.

Categories: psych, strategy
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