Consumers who use interactive Web applications called product comparison
agents (PCAs) may be overwhelmed by information and decisions to make,
leading to an inability to choose or dissatisfaction with the ultimate
choice, a state of "choice overload." Two experiments were designed to
test the choice overload hypothesis. Eight choice tasks of different
size were presented to subjects. By observing the decision quality,
decision time, and decision confidence, we confirmed our hypothesis that
choice overload exists when the decision-making task exceeds 24 choices
and 5 attributes. Subjects were given different decision-making tools
(sorting and short-listing) and conditions (refreshing of information)
to deal with the same choice task within the choice-overload range
obtained from initial experiment. The use of PCAs required more
decision-making effort and resulted in less decision satisfaction than
when only one decision-making tool was provided. We believe these
findings are relevant to the development of new PCAs, the psychology of
decision-making, and the advancement of consumer behavior research.