Why people love Costco-sized portions

It’s long been believed that one reason stores like Costco are so popular is that they allow people to buy, for instance, a whole winter’s supply of canned soup at a per-unit price that’s far below that of soup at the grocery store. But the study points to another reason bundled packages sell so well. If a store sells individual cans of soup, people will be more likely to buy from a mix of brands, and will probably buy only a few cans. Instead, a store can, like Costco, sell a bunch of cans of a single brand together. In this setup, shoppers’ preference for a large, unvaried bundle is, according to this study, strong enough to convince them to buy more cans than they would have if those same cans were sold individually.

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In other words, people might be more comfortable with buying a forkliftful of paper towels simply because they aren’t purchasing it one roll at a time, and they’re more likely to be okay purchasing a quantity they otherwise would’ve rated too big.

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