ServiceFriday: One Size Doesn’t Fit All – Assortment Size’s Effect on Product Valuation

The hit T.V. show Spongebob Squarepants turned 20 years old this past May and one iconic episode featured Bikini Bottom’s lovable sponge with a tough choice many consumers are faced with: choosing a product from an assortment. Tasked with choosing between the “best paper towel around” and the “best paper towel in town”, Squarepants elects to purchase both products to save the trouble of comparing. However, unlike a fictitious setting on television, most consumers are more selective when choosing from an assortment. So how does assortment size affect choice engagement and product valuation for consumers?

Research published in the Journal of Retailing tested whether customers with high assessment orientations (i.e. customers who value being able to make comparisons of products) value products more when they are chosen from a larger assortment. The researchers conducted four studies to test the above theory as well as the mediating role of effort, regulatory fit, choice engagement, and attitude certainty on product valuation.

Study 1 featured 49 participants that were randomly assigned to one of two conditions that featured an online movie ticket platform; choosing a movie from 30 options, and choosing a movie from 6 options. The results indicated that participants in the larger assortment condition placed greater value on the selected tickets than the smaller assortment. “The two-way interaction effects suggest that, as predicted, participants with high assessment orientations in the large, rather than the small, assortment condition produced relatively higher perceptions of the value of the movie tickets.” the researchers wrote. 

The idea that assessment orientation is a “state rather than a trait” was explored in Study 2, as researchers investigated whether the findings of increased perceived value from larger assortment size occurs when assessment is primed instead of measured. 80 participants completed a priming method (i.e. recalling prior assessment behavior) and then were randomly assigned to either a large assortment condition or a small assortment condition. They created frozen yogurt based off flavor, toppings, and fruit. The results supported the findings from Study 1 and indicated that “only participants in an assessment state indicated higher product value when choosing from a large assortment rather than from a small one.”

Study 3 focused on exploring the two mediating factors behind assortment-assessment fit’s impact on product valuation: choice engagement and attitude certainty. 81 participants constructed cupcakes in either a large or small assortment condition and responded to questions afterwards relating to choice engagement and attitude certainty. After constructing data models, researchers saw that the mediating factors between assortment-assessment fit were indeed choice engagement and attitude certainty. “Thus, the fit effect between assortment sizes and assessment orientation on perceived value can be explained by increased engagement, followed by attitude certainty.”

Managerial implications

The findings indicated that customers with higher levels of assessment orientation prefer to choose products from larger assortments and will subsequently see greater value in the product they select. “The benefit of creating regulatory fit between a customer’s motivation to compare and the assortment size ultimately influences their inclination to spend money.”

Importantly, researchers noted that smaller industry platforms, such as a local restaurant, can target consumers with lower levels of assessment orientation. “For these platforms, a niche strategy with a limited assortment can create regulatory fit with low assessors, who also are willing to pay more for products they have selected from a smaller assortment.”

Customer attitude certainty positively influences purchase intentions. Therefore, researchers recommend that managers deploy tactics to increase customers’ attitude certainty. An example of this is when a company provides consistent product reviews.

To read the full article, go to the Journal of Retailing. (A fee may apply.)