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Description
The purpose for creating this thesis project is to discover the effects that options have on consumer behavior and satisfaction, and to determine whether or not more options are a good thing. In exploring these questions, Information Measurement Theory (IMT), a theory founded by Dr. Dean Kashiwagi which relies on understanding natural laws to help minimize decision-making and risk, was utilized to draw conclusions. IMT illustrates that any given situation can only have one unique outcome, and minimizing decision-making in turn leads to reduced stress. The more information an individual has for the given situation, the better he/she can predict the outcome. The concepts of IMT, specifically the ideal that more decision-making leads to higher stress, were utilized to illustrate that more options naturally leads to more decisions and as a result more decision-makers will feel greater stress and less satisfaction. To conduct this research we explored two different segments of consumer markets. The first branch of our research was comprised of analyzing the differences in operations and menu structures of different fast food chains, most specifically In-N-Out and McDonald's and how these differences affect customer satisfaction. The other branch of our research involved reviewing phone case ratings based on Amazon reviews for a number of different phone types with varying popularity to gauge consumer satisfaction. Our results found that while both In-N-Out and McDonald's are successful companies, In-N-Out ranked consistently higher in customer satisfaction. Furthermore, a large portion of this satisfaction can be attributed to In-N-Out's simplistic menu structure which limits the amount of options and therefore decisions that a customer must make. Similarly, our study of phone cases found that for phone models where less case options are offered, customers rated their cases higher on a scale of 1-5 stars regardless of brand or the number of reviews. Through a combination of IMT and our research we were able to conclude that less options does indeed lead to higher consumer satisfaction.
ContributorsBrandt, Lawrence (Co-author) / Spiller, Ryan (Co-author) / Kashiwagi, Dean (Thesis director) / Kashiwagi, Jacob (Committee member) / Department of Finance (Contributor) / Department of Management (Contributor) / Mechanical and Aerospace Engineering Program (Contributor) / Barrett, The Honors College (Contributor)
Created2016-05