Option Packaging is Great... Just Not for You

Kinja'd!!! "It's a "Porch-uh"" (ikazuchi)
04/15/2014 at 13:31 • Filed to: DeMuro

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I know a lot of you liked Doug's article on on !!!error: Indecipherable SUB-paragraph formatting!!! and how it's such an annoyance when spec'ing out a car. Yes, it is very annoying when you want one option but it requires you to buy a package that costs ten times the one item you really want, but guess what? We are not Joe Consumer. We are car guys and gals who are (generally) savvy buyers and research a car to death before stepping into a showroom.

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Joe Consumer does not do this. Joe Consumer sees a TV ad for a vehicle and thinks, "I like camping and that Pontiac Aztec has a tent built in! I'm totally going to buy one." Frankly, Joe Consumer is dumb. Because Joe Consumer is dumb, he has trouble making up his mind about options. The more choices he has, the less likely he is to make a decision and buy. All the choices cause doubt that he might not be picking the right choice. "Should I get the heated seats, backup camera, and espresso machine, or should I get the massaging seats instead? I don't know!" Even worse, whatever he does, he is left with a nagging doubt that he made the wrong choice.

The issue has been coined the paradox of choice by psychologist Barry Schwartz ( !!!error: Indecipherable SUB-paragraph formatting!!! ). Too many choices causes us to worry whether we are making the right one. I just went through this recently while trying to buy new stereo equipment for my M5. I have so many choices, but without being able to try all my options before buying (especially long-term to know that I would enjoy living with an option for an extended period of time) I'm unsure if I'm making the right choice in buying a new head unit.

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It has been shown that car companies that limit their choices sell more and have higher customer satisfaction than similar competitors who offer lots of choices.

Here's an example that I'm making up (because I really don't have the time to research who does this well and I wanted a good example for this thought exercise). Think about buying a new BRZ and Subaru has three trim level options to choose from: Base, Performance, and Premium. The Base package is exactly what is sounds like, basic options everywhere. The Performance package has upgraded wheels, Xenon lights, bolstered seats, and louder exhaust. Premium includes the nice wheels, a top-notch stereo, navigation, and leather. If you could afford any of them, which one would you get?

Now compare that to buying a Genesis Coupe (again, I'm making this all up for the example). You have three different engine options, six wheel options, and fifty different accessory options. Considering you don't have the budget to add every single option that you want, where would you compromise? Do you ditch the 10-speaker stereo for the 19" wheels? Do you get the turbo four, with decent power but great mileage, or the six with more power but crappy mileage? Are you stressed out yet?

So yes, in Doug's very specific example the QX60 gets out of control when all you want is the lane departure warning system, but for the most part option packaging helps consumers make decisions. Is the lane departure warning system with $10K in packages worth it for you? Yes? Great. No? Don't get it. While they made it ridiculous to figure out with all the package dependencies, the final decision is easy to make. For the most part, offering less options for the consumer actually makes them happier.


DISCUSSION (5)


Kinja'd!!! Soloburrito > It's a "Porch-uh"
04/15/2014 at 13:38

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How about option packages for driver types? I want a tall driver option package where the seats are lower and further back and the wheel telescopes. I'd like to use the lumbar support on my power seats but it basically inflates just above my ass.


Kinja'd!!! William Byrd > It's a "Porch-uh"
04/15/2014 at 13:39

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Agree 100%. From a consumer perspective it makes sense. I just bought a new Fusion and really just wanted a black SE with the shiny black wheels and black leather. Not that simple of course, but eventually I found what I was looking for. I ended up with a lane departure system, back-up camera, radar sensors on all sides to tell me how far away from crap I am, and some other stuff I wouldn't necessarily have gone looking for, but I don't mind having.

Considering a Focus ST (EcoBoost 2.0 x2) and just want Recaros. Of course you need package 201A to get it which has some other stuff, but what the heck, it's the means to an end.

Point being, as enthusiasts we make due. Normal consumers are stressed about buying cars, they want it simple and fast. So packages make sense in that context.


Kinja'd!!! jariten1781 > It's a "Porch-uh"
04/15/2014 at 13:49

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A good mix of the two would be to only offer packages for on-the-lot cars. For custom orders have packages be the default with a la carte options available for people who specifically ask for them. To make the packages more enticing offer a token discount when they're ordered (i.e. the tech package would be 1000 bucks, ordering all the pieces a la carte would be 1200 or something.)


Kinja'd!!! It's a "Porch-uh" > jariten1781
04/15/2014 at 13:53

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That's generally how it's done now. The consumer problem is that the possibility to spec it out the way you want just sends you down that rabbit hole of doubt.


Kinja'd!!! TheCraigy > It's a "Porch-uh"
04/17/2014 at 11:28

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I don't know... I understand your argument, but I think Joe Blo Consumer simply buys what is on the lot that looks nice for a good price. A buyer who is at all more discriminating and will actually look at an option list , the mandatory packages can often make my choices far more complicated. Small, relatively low cost packages are good, but others are simply too complicated.

Do I want this option? Yes or no. Very simple, even if I have to make 100 of these yes/no decisions. I am happy with the pricetag because I am the cause.

Do I want this package ? Maybe. What's in it? Too many choices, variables affecting other options and packages, and too large of a pricetag. I am suddenly befuddled and frustrated and lose confidence with my purchase. I am pissed that I am either sacrificing getting what I want, so I might as well not buy the car, or I am getting fleeced for thousands more than I wanted to spend, so I delay or avoid the decision.

Mandatory packages work on the Honda Civic, because you're only spending an extra few grand on the vehicle, and the packaged options make sense. On a new Infiniti, it is infuriating, because a $30k car suddenly becomes a $50k car (that you know in two years will be a $20k car, regardless of options).