The Costco Effect: Science Says We Choose Less Variety When Buying In Bulk – Consumerist

Something to keep in mind whilst on your next shopping binge,,,

When you go to a convenience store to grab a few cold drinks and some snacks, you’re probably going to make different shopping choices than you would at the supermarket or warehouse store. And a new study claims that we tend to go for more variety when we’re not buying in bulk — even if the bulk packages offer variety.

A new study [PDF] from an international group of researchers published in the Journal of Consumer Research looks at consumers’ desire to opt for variety when purchasing single products versus purchasing them in bundles.

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The researchers believe that their findings have implications for how retailers manage their businesses.

For example, while many bundles are discounted in order to entice customers to clear out inventory by paying a lower unit price, the researchers believe that bundles could also be used to simply entice people to buy more of the same product even if there is no price incentive.

The results also imply that consumers who shop at smaller markets, where things are less likely to be bundled together, are more likely to choose variety than those who patronize warehouse stores and other retailers where buying in bulk is the norm.

“If this conjecture is correct, then it should be easier, other things being equal, for new competitors to gain a foothold in small rather than in large retail outlets,” conclude the researchers.

The Costco Effect: Science Says We Choose Less Variety When Buying In Bulk – Consumerist

Note:  I find it interesting that it is being called the Costco Effect, why not BJs or Aldi's?