Naresh K. Malhotra, Arun K. Jain & Stephen W.

Lagakos
This paper reviews the information overioad controversy and presents a methodology for investigating the effects of information ioad on consumer decision making performance. The proposed framework enables the statistical testing of specific hypotheses and can incorporate several extensions and refinements. The methodology is illustrated by re-analyzing the published data of previous studies; some interesting findings emerge from the analysis. The paper concludes with some public policy and managerial implications of the consumer information overioad concept.

The Information Overload Controversy: An Ajternative Viewpoint

Introduction
N recent years the area of consumer information processing has received considerable attention from researchers in marketing. Several studies dealing with various issues in consumer information processing have been reported. Bettman (1974, 1979), Chestnut and Jaeoby (1977), Jaeoby (1974, 1977), Wilkie (1975, 1978) and Wright (1975) have summarized most of the previous work in this area. A review of the literature suggests that the results of past research in consumer information processing have not always been clear-cut and precise. Investigations in some areas have given rise to substantial controversy. In particular, considerable disagreement seems to exist regarding the information load paradigm (Malhotra 1982a). Although some researchers have indicated the occurrence of information overload in their experiments (Jaeoby et al. 1974a, 1974b), their conclusions and findings have been questioned by others (Russo 1974, Summers 1974, Wilkie 1974).
Naresh K. Malhotra is Assistant Professor of Marketing, Georgia Institute of Technology, and Arun K. Jain is Professor of Marketing, State University of New York at Buffalo. Stephen W. Lagakos is Associate Professor, Department of Bio-Statistics and Sidney Farber Cancer Institute, Harvard University. The authors wish to acknowledge the helpful comments of two anonymous reviewers.

This paper first reviews the information overload controversy. Next, a methodology using LOGIT framework (Green, Carmone and Wachspress 1977) for examining the information load paradigm is presented. The proposed approach is more flexible than the traditional methodology employed in that it enables the formulation and statistical testing of alternative hypotheses regarding the form of the information load curve and the effect of concomitant variables. The proposed framework is illustrated by re-analyzing the published data of previous studies on infomiation overload. The paper concludes with a discussion of some public policy and managerial implications of the information overload phenomenon.

A Review of Past Research on Information Overload

The information load paradigm is based on the proposition that consumers have finite limits to the amount of information they can assimilate and process during any given unit of time. If these limits are exceeded, overload occurs and consumers become confused and make poorer decisions. Hence, too much information can lead to dysfunctional performance. This concept of information overload derives theoretical support from research in human information processing (Miller 1956, Quastler 1956), statistical prediction (Wherry

Journal of Marketing Vol. 46 (Spring 1982), 27-37.

The Information Overload Controversy: An Alternative Viewpoint /

27

TABLE 1 An Overview of Published Empirical Work on Information Load in Marketing and A Summary of the Results of Its Re-analysis
EXPERIMENTAL DESIGN Invmtigators I. Jacoby, Spallar and Bern ing (1975) Expkrimantsl Stimuli Instant Rice Sample Size = 192 Experimental Manipulations Both the number of brands and the number of attribuies per brand were veried at four levels each. ORIGINAL STUDY Anelytical Approach Study 1,2 Study 1, Z Approach A. Means and stardard deviations for Kendall's coefficient of concordance between the predicted and elicited preference rankings undeF different treatment conditions. B. Analysis of Variance of tbe concordance coefficients between the predicted and elicited rankings under different treatment conditions. Study 1, 2, 3 Major Rndings M Jacoby et al. studies conclude that tbe consumer choice accuracy first increases and later decreases as tbe " t o t a l " amount of information provided is increased. Study Logit Paramatars 0.754 1.014 = - 0.487 P3 Pd - - 0.487 Ps = - 0.325 0.759 PB 1.124 P? Pi = Malor Finding! 1.1 The probability of correct choice increased significantly as the number of (a) attributes increased from 4 to 16 or (b) brands increased from 4 to 8. 1.2 No significant effect on choice accuracy was detected by increase in the number of: (a) attributes from 4 to 8 or 12 Of (b) brands from 4 to 12 or IB. RESULTS OF RE ANALYSIS

Study

P!

1, 2

PrBparsd Dinners Sample Size = 192

Pi = - 1.099 2.1 The probabilitv 1.099 of correct choice Pi does not decline P3 = - 0.000 significantly as P4 = - 0.511 the number of Ps - - 0.511 1.435 la) attributes is = 2.708 increased from 4 to 8, or 12 or Ps = - 0.588 = -50.593 Ibl brands is in0.511 creased from 4 Pto = - 3.833 to 8, 12, or 16. Pti = -52.539 2.2 When the information is proPi3 = - 2.224 vided about 4 PI4 = - 3.807 = - 4.007 brands on 16 at= - 3.496 tributes (instead Pia of 4), the probability of correct choice improves significantly. However, any concomitant increase in the number of brands at this attribute level leads to a decline in the probability.

pf

1931, 1940), and clinical prediction (Bartlett and Green 1966, Kelly and Fiske 1951). While the basic proposition seems reasonable, the question remains whether the occurrence of information overload in the consumer setting has been empirically demonstrated. In the recent past, marketing researchers have undertaken several studies to examine the occurrence of information overload. Jacoby et ai. (1974a) in their pioneering research systematically varied the amount of information defined in terms of the number of product attributes and brands of laundry detergents at three levels each. The subjects, randomly assigned to one of the nine treatment conditions, were presented with an appropriate number of brands and attributes. They were to provide importance ratings of the product attributes, rate their ideal brand and identify their

most preferred brand from among the alternatives in the choice set. The effects of information load were assessed by examining the number of subjects correctly choosing their best brand across the treatment conditions. Best brand was defined as the one coming closest to the subject's ideal brand. In a follow-up experiment, Jacoby et al. (1974b) varied the number of brands and product attributes at four levels each to shed further light on the occurrence of information overload. Scammon (1977) extended the information load paradigm by varying the number of attributes and the format in which information about the experimental stimuli (peanut butter) was provided. Subjects were presented with information about two brands and requested to identify the brand that was more nutritious and preferred for the next purchase. The effects

28 / Journal of Marketing, Spring 1982

TABLE 1 (continued)
EXPERIMENTAL DESIGN Investigators II. Jacobv, Speller and Kohn (1974a) Exparimental Stimuli Laundry Detergents Sample Size = 153 Experimental ManipulsUons The numbers of brands and attributes were varied at three levels each. ORIGirUL STUDY Analytkal Approach Study 3 Study 3. Approach A. Chi-square analysis of the number of correct choices in each treatment condition. B. Analysis of variance af subjective data ur^der different treatment conditions. Study Major Rndings Study 3. Logit Paramstara Pj Pa P* 01 = - o.iai - - 0.474 0.723 = 1.224 = Major nndingi af correct choice Improved significantly as the number of attributes were increased from 2 to 5. 3.2 The number of brands in tha choice set do not significantly influence the probability of correct choice. RESULTS OF HE-ANALVSIS

Study 3

0t = - 1.204 3.1 The probability

III, Scammon 4 (1977)

Peanut Butter Sample Size = 300

The number of attributes were varied at three levels each while their format was varied at two levels.

A. Chi-square analysis of the number of correct choices in each treatment combination. B. Analysis of variance of aided recall accuracy scores.

4.1

Neither the amount nor the format of the information affeaed subjects' brand preference/intention to buy as judged by subjective criteria.

4.

0? =

01 P2 03 04 Ps

= = = =

1.386 4.1 Using subjective 1.253 criteria, subjects 1.558 made poorer de1.253 cisions when in2.020 formation about 2.811 8 nutrients plus calories was provided in the percentsge format than when no information about nutrients was provided. 4.2 Subjects had a tendency to make batter decisions when Information about 8 nutrients plus calories was provided in the adjective format using subjective criteria than when no information about nutrients was provided.

'Signlficam at a > 0.05 >

of information load were assessed by examining the number of objectively correct choices (identification of the nutritionally superior brand) and subjectively correct choices (selection of the nutritionally superior brand). All three published studies concluded that the subjects suffered information overload as the amount of information provided was increased. Table 1 presents a brief summary of the published empirical information load studies in marketing. While commending Jacoby et al. for addressing an important public policy issue, marketing researchers have questioned their operational procedures and rejected their conclusions (Russo 1974, Summers 1974, Wilkie 1974). Three basic reservations have been expressed about their studies.' First, it is proposed that the number of brands and the number of information items (attributes) per brand are concepAdditional issues have also been raised. However, these are relatively minor and may be found in the original articles. Here, only the major issues addressed by all three critics have been emphasized.

tually as well as psychologically different dimensions. Hence, it is suggested that the total amount of product information should not be defined in terms of the number of brands times the number of items per brand. Next, since the probability of making a correct choice by chance alone is inversely proportional to the number of brands, subjects responding to smaller numbers of brands in the choice set are expected to have a higher probability of correct choice. Therefore, when comparing the effects of the number of alternatives on choice accuracy, the effect of chance factors should be explicitly considered. Finally, the wisdom of using weighted euclidean distances of the brands in the choice set from the ideal brand to measure correct choice was questioned given the problems associated with ideal point measurement. The use of importance weights and variation in the number of attributes over which distances were computed further clouded the accuracy of Jacoby's measures. However, Jacoby and his associates have generally disagreed with the evaluation of their research

The Information Overload Controversy: An Alternative Viev/point / 2 9

procedures and findings (Jacoby 1977, Jacoby et al. 1975). While they accept that their operationalization of total infonnation may not be entirely appropriate, citing studies that report that the number of brands in the choice set affects respondent's ability to make accurate choices, they contend that a definition of total infonnation must take into account the number of brands in the choice set. They acknowledge that chance factors must be controlled when comparing decision quality across the number of brands. To overcome this problem, the researchers suggest that a correlation analysis be used or that the number of brands be kept constant in the experiment. The latter suggestion, however, contradicts their proposition that any operationalization of total information must incorporate the number of brands. Finally, with respect to the appropriateness of the ideal point measure of correct choice, Jacoby (1977) contends that since no single approach for defining decision quality in the consumer context is entirely satisfactory, their operationalization "is as good as any." Discussion It is possible to resolve the disagreements with respect to a definition of total information. Total information should not be defined in terms of the product of the number of brands and items per brand. However, there is reasonable evidence (Jacoby et al. 1977, Moreno 1974) to suggest that a definition of total information should not be divorced from a consideration of the number of brands. What is needed is a methodology that would permit an examination, individually as well as jointly, of tbe effects of the number of brands and the number of items per brand on decision quality. Moreover, the methodology must not force the researcher to adopt a particular definition of total information, yet it must be flexible enough to permit statistical evaluation of different operationalizations of total information. The analytical framework utilized by previous investigators leaves much to be desired. The chi-square test employed by Jacoby et al. (1974a) and Scammon (1977) is at best a weak test. The two-way chi-square test employed by previous researchers merely examines the independence between two classificatory variables (e.g., number of attributes and number of brands). However, in the infonnation load paradigm the occurrence of information overload is determined by examining the ability of consumers to make correct choices across different treatment conditions. Hence, what needs to be tested is whether the number of correct choices under different treatment conditions are significantly different. If under certain treatment conditions information overload does occur, one would expect the ability of the consumers to make correct choices under those conditions to decrease signifi-

cantly. This cannot be detected within the conventional chi-square framework employed by the previous investigators. The information processing strategy adopted by the respondents may be influenced by the particular combination of tbe number of attributes and the number of brands in the choice set (Jacoby et al. 1976, Payne 1976, Wright 1975). The knowledge of such interactions would provide a richer understanding of the information load phenomenon. The use of analysis of variance (Jacoby et al. 1974a, 1974b; Scammon 1977) on the number of correct choices to examine the effect of different treatment conditions does not permit the estimation of interaction effects. Since there is only one entry per cell, the various interactions between the leveis of number of brands and the number of attributes cannot be estimated within the standard ANOVA framework. The assertion that the determination of best brand, and hence correct choice, is subject to inaccuracies is reasonable. Given that no single measure of choice accuracy is fully satisfactory, it is desirable to adopt different operationalization s of the dependent variable. This could include self-report measures (Weitz and Wright 1979) as well as objective criteria, Wilkie (1974) has stated that "there is little doubt that the issue of consumer information provision will be one of tbe major problems confronting marketing researchers and policy makers in this decade"(p. 462), Given the apparent importance of the issue and disagreement with the finding of Jacoby et al. (1974a, 1974b), it would be wise to examine the occurrence of consumer information overload further. With this in mind we next present a methodology for examining infonnation load effects via the LOGIT framework. The proposed framework is then employed to re-analyze the published data of Jacoby et al. (1974a, 1974b) and Scammon (1977). Other applications of this methodology for examining consumer information processing behavior are provided by Malhotra (1982b, 1982c).

A LOGIT Approach to Information Load Paradigm

In the information load paradigm, the dependent variable of interest is tbe ability of the consumer to make "a correct choice" under different infonnation load conditions. This can be modelled in terms of the probability of making a correct choice. The probability of correct choice can be estimated in several ways (Bishop, Feinberg and Holland 1975; DeSarbo and Hildebrand 1980). However, in view of the binary nature of the dependent variable and the fact that the probability of making a correct choice under each experimental condition (cell) varies between 0 and 1,

30 / Journal of Marketing, Spring 1982

the linear logistic model (LOGIT) becomes a particularly suited technique for analysis (Green, Carmone and Wachspress 1977).^ The probability of making a cotTect choice in each experimental cell could be calculated as a function of the number of brands and the number of attributes per brand on which information is provided. Where information overload does occur, the probability of making correct choices should decrease significantly. The LOGIT analysis is a flexible approach. In addition to the commonly employed main effects plus interactions and main effects-only models, other models purporting to capture the underlying information load process may also be formulated and statistically tested. For the sake of simplicity, consider the probability of correct choice as a function of only the number of attributes per brand on which information is provided. A general model for the information load paradigm may be represented as:
log,

FIGURE 1 Some Possible Forms of Information Load Curve

Bo < - B , < 0 <0

NO OF ATTBIDUTES

<0

B2 > 0. B3 - a

NO. or ItTTniBUTES

(1)

where, Pi = the probability of correct choice in the i-th eel! (information load condition). Z = K if K > Ko - 0 if K < Kfl K = the number of attributes per brand on which information is provided. Kg = critical number of attributes specified by the researcher either on the basis of a priori expectations or by looking at the data obtained. As indicated in Figure 1, the researcher may postulate different forms of information load curve. For example, the log odds of correct choice, when the number of attributes per brand exceed Kg, may: first increase and then decrease (e.g., Figure 1a) first decrease and then remain constant (e.g.. Figure 1-b) increase at different rates (e.g.. Figure 1-c) increase or decrease at a constant rate (e.g., Figure 1-d) The hypothesized values of ^2 and pg will vary under these conditions as shown in Figure 1 and can be staA second operationalization of performance accuracy consists of a comparison between each subject's actual preference ranking and the ranking predicted from the ideal brand. The response variable may still be treated as binary by comparing actual and predicted choices for all possible brand pairs (Wright 1972). A discussion of the inherent advantages of LOGIT approach for analyzing binary data may be found in Cox (1970).

tistically examined. For example, the appropriateness of form 1-a could be investigated by testing the following hypotheses (Cox 1970): H,: H,:
+ P3 < 0

The model (1) could be generalized to include the number of brands and the combination of the number of brands and attributes in the discrete as well as continuous cases.-' Using this framework, it is also possible to take into account the effect of chance factors.
Checking for Chance Factors

As critics have rightly pointed out, the probability of making a correct choice based on chance alone decreases as the number of brands in the choice set increases. Thus it seems reasonable to adjust the probability of correct choice for chance factors. There does exist a natural measure for incorporating correction due to chance (Fleiss 1975) as indicated below:
Pjo - Pic

1 -p.

(2)

where, j = the probability of correct choice in cell i adjusted for chance.

^Summers (1974) has pointed out that while examining information load effects, it is desirable to account explicitly for the salience of the attributes on which information is provided and the variability of the attractiveness of the brands. Such extensions could be readily incorporated by introducing additional terms in the model formulation.

The Information Overload Controversy; An Alternative Viewpoint /

31

 Pjo ~ the observed probability of correct choice ^ in cell i. Pjp = the probability of correct choice in cell i by chance alone (1/number of brands). A chi-square test could be performed to test whether the observed distribution of correct choices (based on Pj^,) is different from what one would expect by chance alone (based on Pj^.).'' Furthermore, chisquare analysis could also be conducted to test whether the chance-adjusted distribution of correct choices (based on P^) and the observed distribution (based on PjJ come from the same population. Where the chance effects are not significant, the Pj and P^^ will be close and the resulting x^ statistic not significant. However, the distributions based on Pj^ and Pj^. will differ significantly (Malhotra 1982a).

where :^ Pj = the probability of correct choice in the i-th cell (information load condition)(i, i = 1,2, . . . , 16) X, = 1 X2 = 1 if the number of brands in the stimuli set is 8 0 otherwise X3 = 1 if the number of brands in the stimuli set is 12 0 otherwise X4 = 1 if the number of brands in the stimuli set is 16 0 otherwise X5 = 1 if the number of attributes per brand is 8 0 otherwise X5 = 1 if the number of attributes per brand is 12 0 otherwise X7 = 1 if the number of attributes per brand is 16 0 otherwise Xg to Xj6 = the interaction terms between the levels of number of brands and number of attributes per brand.* 3i to P16 - the parameters to be estimated. Alternately, a main effects model may be represented by eliminating Xg to Xi^ from (3). Both the main effects plus interactions and main effects-only models were estimated on the instant rice data. The likelihood ratio test revealed that the interaction terms of model (3) were not significant at a = 0.05. Thus only the results for the main effects model are presented. A chi-square test of homogeneity (Mendenhall and Schaeffer 1973, p. 502-508) between the observed and predicted number of people correctly choosing their best brand using the main effects-only model was not significant. This suggests that the observed and predicted distributions came from the same population. The test provides a further indication of the appropriateness of the main effectsonly model. In the absence of interactions, different additive models may be indicated. The chi-square test of homogeneity could be used to test the appropriateness of the various models. The results of estimating main effects model are summarized in Table 1. In terms of the number of brands, the results in-

A Re-analysis of Published Data from Previous Studies

The proposed methodology was employed to re-analyze the published data of previous investigators. The dependent variable in the re-analysis was the probability that a respondent would make a correct choice under different information load conditions. Given the nature of the published data, the method of determination and definition of correct choice adopted was the same as that used in the original studies. Thus information reported in previous studies (Table 1) on the number of respondents making correct choices under each information load condition, given the total number of respondents in that condition, was used to estimate the probability of correct choice as a function of information load. Both the main effects plus interactions models and the main effects-only models were estimated for all the published data from previous information load studies discussed in Table 1. The estimated parameters were statistically tested to re-examine the hypotheses implied by previous investigators. In the following, results of model estimation and hypotheses testing for each published data set are presented. Instant Rice Data A main effects plus interactions model for the probability of correct choice in each cell for the instant rice data may be formulated as: (3)

1 -P,

^It may be pointed out that if P^ is greater than P^, the P, should be set to equal to 0.

Xi denotes the constant tenn similar to that employed in dummy variable regression analysis, In the present formulation, it depicts the presence of four brands each described by four attributes in the experiment. *For example, Xg denotes the joint effect of the presence of eight brands with each brand described in terms of eight attributes.

32 / Journal of Marketing, Spring 1982

dicate that the only significant parameter is p2- This parameter represents the effect of the number of brands on the probability of correct choice when the number of brands in the stimuli set is increased from four to eight. What is more interesting is that the parameter p2 is positive. Thus in this particular experiment as the number of brands in the choice set increased from four to eight, the probability of making a correct choice increased significantly. Furthermore, while the coefficients pg and p^ are negative, they are not statistically significant at a = 0.05. When the number of brands in the choice set is increased from four to twelve or from four to sixteen, although the probability of making a correct choice decreases, the decrease in the probability is not statistically significant. The results for the number of attributes per brand are equally illuminating. We note that the estimated parameters Pg and p, are positive. Furthermore, while p7 is statistically significant, P5 is negative and not significantly different from zero. Thus, no definite conclusion can be made regarding the effect of increasing tbe number of attributes on which information is provided from four to eight (as indicated by pg) or from four to twelve (as indicated by |ig), because of the lack of statistical significance of the corresponding estimated parameters. However, as the number of attributes on which information is provided is increased from four to sixteen, the probability of making a correct choice {as indicated by p,) improves significantly. Thus our analysis shows that the subjects in the Jacoby et al. study actually made better decisions when provided with information on sixteen attributes rather tban on only four attributes. The effect of chance factors was also investigated using Fleiss' measure (1975) but was not found to be significant. Prepared Dinners Data The second data set analyzed in this paper is the one obtained by Jacoby et al. (1974b) on prepared dinners. Since the number of attributes and number of brands varied in this experiment was the same as that for the instant rice experiment, the interactions and main effects-only models for this data set are identical to the models proposed for the instant rice. Both the interactions (3) and the main effects model were estimated for these data. A likelihood ratio test indicated that the interactions were significant and so only the results of the interactions model are presented in Table 1. Several interesting conclusions can be drawn from the estimated parameters. First, none of the coefficients representing the number of brands are statistically significant. Second, the only significant main effect for the number of attributes is Ihat corresponding to sixteen attributes of information per brand. This effect, represented by p,, is positive

and therefore indicates that as the number of attributes on which information is provided is increased from four to sixteen, the probability of making correct choices increases. Finally, of the interaction terms, only pii, Pj4, p,5 and p,g are statistically significant. Moreover, all these coefficients have negative signs indicating a decrease in the probability of correct choice for the corresponding cells (treatment conditions). The significance of 3,4, p,5 and p,6 implies that when consumers were provided with information about sixteen attributes per brand, the probability of correct choice decreased as the number of brands in the choice set were increased from four to eight, four to twelve, and four to sixteen respectively. The significance of the interactions suggests that while providing information on sixteen attributes per brands leads to better choice making, any concomitant increase in the number of brands at this level of information leads to a relative decrease in the probability of making a correct choice. The chance effects, again, were not significant. Laundry Detergent Data The data on the laundry detergents experiment obtained by Jacoby et al. (1974a) were re-analyzed by estimating both interactions and the main effects-only models. However, since the likelihood ratio test indicated that the interactions were not significant, only the results of the main effects will be presented. The main effects model for the laundry detergent data may be represented as follows:
log.

1 -

=X

(4)

where. Xj = 1 if the number is 8 0 otherwise X3 = 1 if the number is 12 0 otherwise X4 = 1 if the number 0 otherwise X5 = 1 if the number 0 otherwise of brands in the stimuli set of brands in the stimuli set of items/brand is 4 of items/brand is 6

A chi-square test of homogeneity indicates that the model (4) provides a good fit to the observed data. It can be observed from the results presented in Table 1 that the estimated parameters representing the effect of increasing the number of brands in the choice set, p2 and P3, are negative but not statistically significant at a = 0.05. Thus our analysis indicates that although the probability of making a correct choice decreases

The Information Overload Controversy: An Alternative Viewpoint / 33

as the number of brands in the choice set is increased from four to eight and four to twelve, the resulting decrease in the probability is not statistically significant. The effects of the increase in the number of attributes per brand on the probability of making correct choice, p4 and P5, were found to be positive. It will be observed that P4 is not statistically significant. As the number of attributes per brand increased from two to four, the probability of making a correct choice increased but the improvement was not statistically significant. However, pj is statistically significant at a = 0.05. The probability of a consumer making a correct choice increases significantly as the number of attributes per brand increases from two to six. The results show that as the subjects in this experiment were provided with more information per brand, they actually made better decisions. Chance factors were also investigated and were not found to be statistically significant. Peanut Butter Data Scammon (1977) used peanut butter brands to examine the information load effects. As in the Jacoby studies (1974a, 1974b), the interactions and main effects-only models were formulated and parameters estimated independently for the subjective standards data.^ Since the interactions were found to be significant, only the results for the interaction model will be discussed. Such a model may be presented as follows: (5)

It will be observed from the results summarized in Table 1 that besides the constant term p^, only the estimated parameters P3 and Pg are statistically significant. Furthermore, P3 is negative while (3^ is positive. The effect of providing information on eight nutrients plus calories, as compared to the controlled condition of no nutrient information for the percentage format, is represented by P3. However, the effect of providing information on eight nutrients plus calories as compared to the no-nutrient-information condition under the adjective format is represented by p^ + pg. The significance and negative sign of (33 suggests that the subjects in Scammon's study made poorer decisions when information about eight nutrients plus calories was provided in the percentage format than when no information about nutrients was provided. Furthermore, the sum of Pj + pg is positive. Thus our analysis shows that the subjects had a tendency to make better decisions when provided with information on eight nutrients plus calories in adjective format than when they were not provided with any information about nutrients.

A Comparative Analysis with Previous Findings

The foregoing analysis provides insight into the information load controversy using an alternative analytical framework. Based on re-analysis of the data obtained by Jacoby et al., three broad conclusions can be drawn. First, as the number of attributes on which information was provided to subjects increased, the probability of making correct choice generally improved. It is interesting to note that in all the three experiments of Jacoby et al. (1974a, 1974b) as the number of attributes was increased from the lowest level to the highest, the probability of making conect choices increased significantly. One may reasonably conclude, therefore, that in the Jacoby experiments the provision of more information (in terms of the number of attributes) generally led to improved decision making. This finding is consistent with the observations of Russo (1974) and Wilkie (1974). Second, the effect of increase in the number of brands in the choice set on the probability of making correct choice was not found to be significant. Although the probability of making correct choice declined with an increase in the number of brands, such an effect was not found to be statistically significant. Any claim in these experiments that increasing the number of brands in the choice set led to dysfunctional consequences and hence information overload is untenable. Finally, as found in the prepared dinners data, there may exist significant interactions between the number of brands in the choice set and the number of attributes on which information is provided. This suggests

1 where,

X. = 1 X2 = I if the number of nutrients about which information is provided is 4 0 otherwise X3 = 1 if the number of nutrients about which information is provided is 8 0 otherwise X4 = 1 if the adjective format is used 0 otherwise
X5 = ~ X3 * X4

'An attempt was also made to analyze the objective standards data collected by Scanunon using the LOGIT framework. A likelihood ratio test (Mendenhall and Schaeffer 1973) indicated that the interaction terms were significant. However, when a main-effects plus interactions model was estimated, the second derivatives matrix was noninvertible. Consequently the variances could not be estimated and the statistical significance of the model parameters assessed. Hence, the results for objective standards data are not presented.

34 / Journal of Marketing, Spring 1982

the need to consider explicitly these two variables in the design and analysis of tbe information load paradigm. Jacoby, Speller and Kohn conclude that consumers "actually make poorer purchase decisions with more information" (1974a). Based on the reanalysis using LOGIT framework the validity of their conclusions is questionable. While their suggestion that "providing substantial amounts of package information can result in poorer purchase decisions" (1974b, p. 40) may be a reasonable proposition, it is not supported by their reported data. The re-analysis of Scammon's (1977) data demonstrated the existence of complex interactions between the number of attributes and the type of format. Her chi-square and ANOVA framework could not detect these interaction effects, and her conclusion that "neither tbe amount nor the format of the information presented to the subjects affected their brand preference/intention-to-buy" (p. 152) is not supported by our re-analysis.

Some Public Policy and Managerial Implications

Although the findings of previous investigations may be questioned, the concept of consumer information overload has some important implications in terms of the amount of information that should be provided to consumers and the manner in which it should be made available. In the last two decades the products from which consumers must choose have grown enormously in quantity and complexity. Commercial sources are the core of the existing information system, yet there is evidence that consumers are skeptical about the usefulness and truthfulness of this type of information (Day 1976, Jacoby 1974, Newman and Staelin 1972). In an effort to bridge the information gap, public policy makers have recently demonstrated heightened interest in consumer welfare. Programs aimed at providing useful information to consumers in the marketplace have been initiated by many federal, state and local agencies. Providing consumers with more information is a step in the right direction. The results of our re-analysis suggest that consumers are capable of processing fairly large amounts of information. Yet the capacity of consumers to absorb and process information is not unlimited. It should be recognized that these previous studies were conducted in an artificial environment in which the respondents were motivated to process the information provided due to the demands of the experiment. Research in consumer information processing does suggest that in many situations, the motivation of consumers to acquire and process information is rather low (Bettman 1979, p. 43-72). If efforts on the part of policy makers and consumer groups to

provide consumers with more information are to bear fruit, they should take into account not only the capacity but also the motivation of consumers to process information. Furthermore, the provision of information should not be independent of the number of choice alternatives facing the consumer and the choice behavior exhibited. The re-analysis of the prepared dinners data set suggests that there may exist, for certain product categories, significant interactions between the number of brands in the choice set and the number of attributes on which information is provided. These aspects need to be emphasized as they are typically ignored by the policy makers (Bettman 1979, p. 294). The format in which the information is presented can also affect the way in which consumers acquire and process information (Bettman 1979, p. 219-221; Bettman and Kakkar 1977; Bettman and Zins 1979). As pointed out by several researchers (Russo 1977; Russo, Krieser and Miyashita 1975), one may distinguish between the availability and the processability of information. Our re-analysis of Scammon's study suggests that adjective format, as compared to the numerical format, facilitates the processing of information. If this finding is in fact general izable, then important public policy implications follow. For example, policy makers could legislate that important information be communicated to the consumers in a verbal format. The information load paradigm also has important managerial implications. Unlike tbe policy maker, the marketing manager is more concerned with providing persuasive information that favors his/her brand. This information is communicated through various promotional activities. Such information programs must explicitly recognize the limited capacity and motivation of the target market to process information if the message is to have its intended impact in the market. Even when consumers are capable, the motivation to process the information provided may be low. For example, although a re-analysis of instant rice data indicates that the housewives in the Jacoby et al. (1974b) study were able to process information on 16 attributes, the motivation of housewives to process this much information while actually buying instant rice may be low. Hence, an informational type of advertisement detailing so much product information may have limited impact in the market. Likewise, in deciding on a media mix, the manager needs to be aware that different media vary in the extent to which they facilitate the processing of large amounts of information. Suppose, for example, a marketer believes that his/her brand is, on balance, better than other leading brands if a detailed, rational comparison were made. If so, such information may be more effectively communicated using point-of-sale displays or

The Information Overload Controversy; An Alternative Viewpoint / 35

print advertisements as opposed to broadcast media. The use of point-of-sale displays or print advertisements as in the studies of Jacoby et al. (1974a, 1974b) would allow the consumer greater time to process the information, thereby decreasing the possibility of information overload. Furthennore, the re-analysis of Scammon's (1977) study suggests that such information could be more effectively communicated in a verbal as opposed to a percentage or numerical format. A thorough discussion of public policy and managerial implications of information processing theory in general may be found in Bettman (1979, p. 293-342) and Wilkie (1975, 1978).

Conclusion
The concept of information overload has important implications both for public policy makers and managers. However, the results of past research in tbe area have not always produced clear-cut and precise findings. This paper reviews the information load controversy and suggests a methodological framework for examining this paradigm. The methodology proposed and the re-analysis does help resolve some of the problems in investigating the effects of information load on consumers. Our re-analysis of previous studies failed to support the conclusions of their authors that providing more information results in poorer purchase decisions.

The LOGIT framework offers an attractive approach for analyzing the information load paradigm and does not require the researcher to adopt a particular definition of "total information." The methodology is flexible enough to enable the researcher to examine the effects of the number of brands, the number of attributes or other variables of interest on the occurrence of information overload. Moreover, such effects can be examined individually or jointly. Yet the LOGIT framework permits the researcher to model various definitions of "total" information.* Furthennore, it is possible to examine complex interaction effects. Knowledge of such effects permitted better interpretation of previous studies. If the researcher desires, additional explanatory variables, such as the salience of information provided, variability of the relative attractiveness of the choice altematives, and individual variables can be explicitly incorporated in the analysis to develop a richer understanding of information load phenomenon.

'For example, using Jacoby et al.'s (1974a, 1974b) definition of "total" information, the probability of correct choice may be modelled as: log.

1 -P,

= Pi +

(NB * NA)

wbere NB = number of brands in the choice set and NA = number of attributes per brand on which information is provided. Such a model was estimated for all Jacoby data. The model provided a poor fit to the data collected by them.

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