More than just the spice of life: Using variety as a signal for change and diversification

Abstract

We consider the role of variety or diversity as a main goal for consumer experiences. We argue that consumers may incorporate variety in their choices of product or experiences for reasons other than merely increasing the consumption utility over time. Specifically, we develop a framework that shows two new roles that variety can play in consumer choice. First, it can serve as a signal to oneself and others that the consumer is able to accept change and be flexible. Second, we show that the meta role of variety, or diversity as a goal in and of itself, is beneficial because more variety in consumers' choice sets (a) provides a more optimal portfolio for future choices under uncertainty, (b) facilitates creative thinking and adoption of innovation, and (c) allows for the consumption of a fuller set of attributes, which satisfies goals of balancing and completeness.