Enhancing Consumer Satisfaction in Complex Choices Through a Sequential Elimination Approach

Abstract

Consumers often face challenges in making choices when their preferences are unclear, the number of alternatives is high, and information is complex. This can result in reduced engagement and satisfaction with the process and result of choice. These negative effects can be countered by sequentially eliminating choice alternatives via a series of more manageable trade-offs. We applied this approach to private health insurance choices, designing a product comparison tool that splits this complex decision into a sequence of simpler trade-offs. In a pre-registered online study with 801 participants, we compared the sequential tool to a regulator's existing comparison tool. Results showed higher satisfaction and a clear preference for the sequential tool across sociodemographic groups. The sequential tool also positively influenced satisfaction with chosen health insurance plans. Our findings support the potential of simplified, sequential elimination to enhance choice satisfaction, suggesting opportunities for developing consumer decision aids in complex product markets.