Title: Less-is-better effect - Wikipedia
Headings: Less-is-better effect
Less-is-better effect
Contents
Identifying the effect
Other studies
General observations
Limitations
Hypothesized causes
Applications
See also
Notes
References

Content: The 31-piece set contained all the pieces of the 24-piece set, and all of them were intact. This made no difference to the recipients. All they could see was the loss of the broken pieces." General observations
It has been observed that when consumers assess objects in isolation, they often compare them to other objects in the same category. " It seems that in evaluating a gift, people are neither sensitive to the actual price of the gift, nor to the category of that gift (e.g. whether a coat or a scarf), but they are very sensitive to the relative position of the gift within its category." It has also been observed that customers tend to be happier when merchants give them a little extra something that costs the merchant relatively little – a bonus scoop of ice cream on a sundae, for example – than when merchants actually offer them a better deal on the sundae that would cost the merchant more. Limitations
The less-is-better effect occurs only under specific circumstances. Evidence has shown that it manifests itself only when the options are evaluated individually; it disappears when they are assessed jointly. " If the options are put right next to each other, the effect disappears, as people see the true value of both," states one source. "