Why are consumers less likely to buy a product when it’s the only option?

How does the range of choices affect sales at a market? Talking with a vendor at a market last week, he mentioned that his sales have actually risen even though another vendor has joined the market with very similar items; he was dumbfounded that their sales had actually gone up. This may be the explanation that they need to understand:

“Giving consumers only one option increases their desire to search for more options. As a result, they might reject a product they would otherwise purchase.”

Market organizers always need to be carefully calibrating the levels of products because restricting sales too much may actually reduce the lone seller’s profits and too much of one item can certainly dilute those sales too much.

Study

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