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The Effect of Information Overload on Consumer Choice Quality in an On-Line Environment

Research has found that online information overload results in less satisfied, less confident, and more confused consumers. The founding ground for the research has been on the notion of limited human processing capacity (Bettman.J.R., 1979) (Streufert, 1965), if consumers are provided with too much information at a given point in time, such that it exceeds their processing limits, the problem of information overload occurs which leads to poorer decision making and affects performance.
Study
This study examines the effect of on-line information load on consumer decision quality.
Model Used
Information load was measured by the number of alternatives and attributes and distribution of each attribute value across alternatives. It combines both traditional and structural approaches to investigating information overload.
Result

Results from this study largely confirm that when the level of attributes is varied equally across alternatives in addition to the number of attributes being increased, that is, when imposing information overload, consumer choice quality suffered a negative effect and is consistent with prior findings using the structural approach (Lurie, 2002) (West, 1996)

Satisfaction in Choice as a Function of the Number of Alternatives

Investigations have found how satisfaction from choice varies as a function of the number of alternatives faced (Elena Reutskaja, 2009)

Satisfaction as a function of the number of alternatives.
Result of the experiment
Results supported that satisfaction is an inverted U-shaped function of the number of alternatives. The participants of the experiment reported lower outcome and process satisfaction from limited (5) and extensive (30) options and higher satisfaction from medium-sized sets (10 and 15 options).

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