I just finished reading about a study where participants were offered money in exchange for taking a survey. Once they completed the survey, the surveyor threw in an unexpected twist. Instead of the $15, participants were given the option to receive an ink pen valued at $20. So did they choose the money or the pen? In study-after-study, the overwhelming majority chose the pen.
Here is where things get interesting. The same study was repeated with one change; instead of a single pen there were three pens to choose from. The choices included the pen from the original study and two similarly nice pens. This time an overwhelming majority chose the money. Why? The same pen was available! There were two other very nice pens as well. Why did participants elect to take the money?
This type of consumer behavior (decision theory) has been the focus of numerous books over the last several years. Here are several that I highly recommend:
- Trade-Off by Kevin Maney
- Blink by Malcolm Gladwell
- How we Decide by Jonah Lehrer
If, however, you have time to only read one book on the topic, it should be The Paradox of Choice by Barry Schwartz. This is a must-read for anyone in Marketing or Product Development.
So, back to the money-vs-pen study, why did people in the second study choose the money? The researchers offer their explanation, but I am more interested in hearing YOURS. Post your thoughts. Join the conversation.
{ 2 comments… read them below or add one }
I would’ve chosen the money in either situation! Who needs another pen?
I have to say I would have chosen the money as well… both times. But maybe people chose the money the second time because they had too many options and didn’t know which pen was worth the most. It was easier to pick the money and know the value it communicated to them than to have to decide which of the three pens was best. I don’t know though… these questions always throw me for a loop.