The researchers at University of Western Australia, Queensland University of Technology, University of Queensland, and University of New South Wales attribute this effect to a matter of control: In a densely populated community, there are fewer opportunities for an individual to exert control over their physical environment. A larger product assortment when shopping provides the individual a chance to exercise control in that realm, so items in that assortment carry a bonus value.
Of note, the researchers explored this effect with online shopping. This is why the researchers refer to population density rather than physical crowding. People generally conduct their ecommerce in private spaces like home or work.
But there’s evidence the effect does hold in public spaces, too. In one of the studies, participants were shown an ad for earphones featuring a person in either a densely populated train station or an empty train station. Next, half the number of participants in each group were asked to choose from among a selection of six earphones, while the other participants were asked to choose from among a selection of 30.
Participants primed with the ad showing a densely populated train station expressed willingness to pay more for the chosen earphone when they were selecting from a larger assortment. This difference was not seen with the participants who had been primed with the ad showing an empty train station.
The implication for ecommerce retailers is to vary the assortment size depending on the population density of the shopper’s community. Also, the train station study indicates that a marketer can positively influence an online shopper’s attitude toward larger product assortments by showing a more densely populated situation in an ad for the product category. Beyond providing enhanced opportunity to exert control, large assortments offer higher probabilities of a close purchaser-product fit.
Other studies—which do look at physical crowding, not just consumers’ density perceptions—document a related consideration with larger assortments: According to studies at Columbia University and University of British Columbia, consumers from Western cultures shopping in tight spaces seek greater variety among products. If they have fewer choices, they'll become less comfortable.
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