The Effect of Digital Nudging Techniques on Customers’ Product Choice and Attitudes towards E-Commerce Sites

Digital nudging is receiving increasing attention by academics and practitioners in recent years. In this research, our main goal is to determine the relative impact of different nudging techniques on the customers’ product choice processes and their attitudes towards e-commerce sites employing these techniques. Specifically, we are interested in the interaction effects of defaulting, customer reviews (star ratings of products) and purchase pressure cues with the centrality choice bias. Prior research has predominantly investigated nudging techniques or positioning effects in separation. We try to fill this gap and explore possible interaction effects in an eye-tracking experiment. In our study, we plan to research not only the effects of digital nudging techniques on product choice, but also in how far they shape users’ attitudes towards an e-commerce site

How Digital Nudges Influence Consumers – Experimental Investigation in the Context of Retargeting

Retargeting is an innovative online marketing technique in the modern age. Although this advertising form offers great opportunities of bringing back customers who have left an online store without a complete purchase, retargeting is risky because the necessary data collection leads to strong privacy concerns which, in turn, trigger consumer reactance and decreasing trust. Digital nudges – small design modifications in digital choice environments which guide peoples’ behaviour – present a promising concept to bypass these negative consequences of retargeting. In order to prove the positive effects of digital nudges, we aim to conduct an online experiment with a subsequent survey by testing the impacts of social nudges and information nudges in retargeting banners. Our expected contribution to theory includes an extension of existing research of nudging in context of retargeting by investigating the effects of different nudges in retargeting banners on consumers’ behaviour. In addition, we aim to provide practical contributions by the provision of design guidelines for practitioners to build more trustworthy IT artefacts and enhance retargeting strategy of marketing practitioners

Digital Nudge Stacking and Backfiring: Understanding Sustainable E-Commerce Purchase Decisions

Background: The consumption of ‘fast fashion’, which is expedited by cost-effective e-commerce systems, represents one of the major factors contributing to the acceleration of climate change. An emerging approach to steer consumers in the direction of more sustainable purchase decisions is digital nudging. This paper explores digital nudging in the context of green fashion e-commerce by testing the effectiveness of two nudging strategies on the decision to choose green fashion products (GFP) over regular fashion items. Method: This study was conducted as a between-subject online experiment (n=320) with four conditions simulating an e-commerce scenario. The participants were presented with different products: one was ecologically friendly, and another was the regular option. Depending on their randomized group allocation, the participants experienced a default nudge, a social norm nudge, a combination of both strategies, or no nudge. In addition, we conducted 10 qualitative interviews to gain a deeper understanding of consumers’ decision process. Results: Our experiment failed to demonstrate statistically significant relationships between the various nudging strategies and GFP purchase decisions. However, additional explorative analyzes confirmed a backfire effect for the combination of nudging strategies. This reveals the previously overlooked influence of participants’ identification on the effectiveness of digital nudging strategies. In addition, qualitative interviews revealed individual factors that influence sustainable e-commerce purchase decisions. Conclusion: This study contributes to information systems research by explaining the differences in the effectiveness of different nudging strategies regarding high-involvement compared to low-involvement products. Moreover, it provides empirical evidence of a backfire effect resulting from a combination of digital nudging strategies (i.e., digital nudge stacking). Finally, the study underscores the leverage that individual factors have on both GFP purchase decision and the effectiveness of nudges

Personality and the effectivity of digital nudges: an empirical study

Decision making isn’t always rational and fact-based. Instead, it’s often intuitive and stems from heuristics. So-called nudge theory is based on this idea. Nudges are meant to influence behaviour with the use of these heuristics and biases. In this research I study two digital nudges in a context of an online store and examine how consumer’s personality affects their effectivity. The other nudge is a discounted price with limited availability and it is based on loss aversion bias. The other one is a rating given by other customers. It is based on conformity bias. The data I use is from a web survey with a sample size of 237. In the survey, I measured respondents’ personality with Big Five personality dimensions and their behaviour with a choice-based conjoint analysis. The findings of this study are in many ways consistent with a previous literature and the results also give new insights on the individual differences in the effectivity of nudging. Openness to Experience was negatively correlated with the susceptibility to both nudges. High Conscientiousness, on the other hand, reduced susceptibility to the nudge that utilizes the conformity bias. In addition, other correlations between personality and the effectivity of the nudges were found, but those findings were not statistically significant, probably due to small sample size. Still, the results are promising for further research

Unlocking the Psychology of Online Travel Booking: How Price Expectations Affect Consumers

Price fluctuation is a major concern for consumers in making travel plans, such as booking flights or hotels. Thus, consumers tend to hesitate over whether to make a booking or not. Online travel booking platforms such as Kayak, Hopper, and Google Flights, have been adopting various digital nudges to influence consumers’ price expectations. For example, they may inform users that “Prices are unlikely to decrease within 7 days” (reassurance) or “Prices may rise within 7 days” (alert). Despite the pervasive adoption of reassurance and alert nudges in online travel booking, little is known about how they influence consumers’ price expectations and travel booking behavior, and why. We plan to conduct a lab experiment and a randomized field experiment in collaboration with a leading travel metasearch platform to investigate how digital nudges like reassurance and alert may affect individuals’ emotions, price expectations, and subsequent online travel booking behavior

Understanding the Impact of Sustainability and CSR Information in D2C Online Shops on Consumer Attitudes and Behavior – A Literature Review

Many brands nowadays use direct-to-consumer channels such as proprietary online shops, in order to provide information related to their sustainability and CSR initiatives and to increase consumers’ perceptions of legitimacy of the company and its products. However, so far little is known about the effects of such information on consumer attitudes and behavior. This implies that the true benefit of S/CSR initiatives is currently not well understood by most companies and resource allocation in this area may be distorted. Therefore, in this literature review we consolidate and map existing research that can inform our understanding of this phenomenon. By analyzing a sample of 46 papers we find that research on the topic in a direct-to-consumer context is sparse, but that theories and empirical evidence from related contexts can help us grasp the issue to some extent

Mapping of the digital climate nudges in Nordic online grocery stores

This paper explores how 21 Nordic online food retailers nudge their customers towards more climate-friendly food choices. We use a choice architecture taxonomy dividing the nudges into decision information, decision structure, and decision assistance. We find that most retailers use several types of climate nudges. Most of these are decision information type nudges, such as personalized carbon footprint apps and climate labels. Wide use of non-salient nudges, often presenting the climate impact after the customers have made their purchase, limits the potential impact of information on consumers' environmental footprints. Furthermore, the use of broad climate categories and aggregated CO2 measures reflect the challenges in calculating the footprints of individual products. The lack of industry-wide standards for emission data and climate labels makes the current situation challenging for customers wanting to compare emissions across stores. Our results also show that few stores have any form of decision structure or decision assistance nudges, even though these are often found to be themost effective types in the literature on nudges.We endwith discussing promising digital climate nudging opportunities for retailers seeking to reduce the environmental footprint of their customers.publishedVersio

Navigating the digitalization of individuals as employees, customers, and themselves

Digitalization has long since entered and transformed our professional lives, our interaction with companies, and our private lives. With the progress in digitalization in general and of individuals in particular, both opportunities and challenges arise. Digitalization represents a double-edged sword, with its vast potential on the one end and a number of risks and detrimental effects for individuals, such as technostress, on the other. Individuals need to navigate the opportunities provided by digitalization, as well as its risks, in all areas of their lives. Addressing digitalization in a way that is in the best interest of individuals requires a thorough understanding of developments, challenges, and possible interventions and solutions. Matt et al. (2019) propose a framework for studying the digitalization of individuals, which represents a holistic approach to structure, classify, and position research along different roles of individuals from a comprehensive set of research angles. By applying this framework as a guiding structure, this dissertation aims to advance knowledge for an improved, safer, and more deliberate navigation of digitalization for individuals in their roles as employees, customers, and themselves from the research angles design, behavior, and consequences. While building on and integrating qualitative research methods such as literature analysis and expert interviews, this dissertation mainly relies on the collection of empirical data and their quantitative analysis. This comprises several small- and large-scale surveys and field experiments, as well as analytical methods such as structural equation modeling, regression analysis, and cluster analysis. Chapter 2 of this dissertation discusses the digitalization of individuals in their role as employees. Chapter 2.1 covers workplace design in terms of equipment with digital workplace technologies (DWTs) and the user behavior of employees. It determines which DWTs exist and are used by individual employees in a comprehensive and structured fashion. Contributing to a deeper understanding of workplace digitalization, chapter 2.1 also demonstrates and elaborates how this overview of DWTs represents a basis for individualized digital work design as well as adequate interventions. Chapter 2.2 deals with the consequences of DWT user behavior. It focuses on the relationship between workplace digitalization, the negative consequence technostress, and possible countermeasures termed technostress inhibitors. By enabling a more detailed understanding of the underlying mechanisms as well as evaluating the effects of countermeasures, chapter 2.2 discusses the overall finding that workplace digitalization increases technostress. The dynamics of its different components and technostress inhibitors, however, require individual consideration at a more detailed level, as the interrelationships are not consistently intuitive. In chapter 3, the focus changes to individuals in their role as customers. As a response to increasing data collection by companies as well as increasing data privacy concerns of customers, chapter 3.1 focuses on the identification of a comprehensive list of data privacy measures that address these concerns. Furthermore, it is identified that the implementation of some of these measures would lead to increased customer satisfaction, demonstrating that there is an upside to data privacy for companies and that mutually beneficial outcomes for both involved parties are conceivable. Chapter 3.2 analyzes whether and how digital nudging can be applied to influence customers online shopping behavior towards the selection of more environmentally sustainable products in online supermarkets and how this influence differs with respect to individual customer characteristics. It determines the digital nudging element default rules to be generally effective and simplification to be effective among environmentally conscious customers. On a macro level, the findings contribute to a safer environment in which individuals live their lives, while at the individual level, they foster decision-making quality and health. Chapter 4 highlights the digitalization of individuals themselves. Chapter 4.1 deals with the design of a habit-tracking app that offers users autonomy in their goal-directed behavior. It is found that the provision of autonomy enhances well-being. Its exercise improves performance, which in turn positively affects well-being. Chapter 4.1 thus contributes insights into how digital technologies can foster the flourishing of users. As a summary, this dissertation aims to provide research and practice with contributions to a deeper understanding of how individuals as employees, customers, and themselves can successfully navigate digitalization.Die Digitalisierung und durch sie verursachte Veränderungen haben längst in unserem Berufsleben, unserer Interaktion mit Unternehmen und unserem Privatleben Einzug erhalten. Mit der fortschreitenden Digitalisierung im Allgemeinen und der fortschreitenden Digitalisierung von Individuen im Speziellen ergeben sich sowohl Chancen als auch Herausforderungen. Die Digitalisierung stellt ein zweischneidiges Schwert dar. Den enormen Potenzialen stehen eine Reihe von Risiken und negativen Auswirkungen für Individuen wie z.B. Technostress gegenüber. Individuen müssen sich in allen Lebensbereichen in einem Spannungsfeld der Digitalisierung zurechtfinden, welches am einen Ende vielfältige Chancen für Weiterentwicklung und Selbstverwirklichung bereithält, aber am anderen Ende auch zahlreiche Fallstricke und Risiken birgt. Mit der Digitalisierung auf eine Art und Weise umzugehen, die im besten Interesse von Individuen liegt, erfordert ein gründliches Verständnis der Entwicklungen und Herausforderungen sowie möglicher Interventionen und Lösungen. Matt et al. (2019) schlagen ein Framework für die Untersuchung der Digitalisierung von Individuen vor, das einen ganzheitlichen Ansatz zur Strukturierung, Klassifizierung und Positionierung von Forschung entlang verschiedener Rollen von Individuen und unterschiedlicher Forschungsperspektiven darstellt. Unter Anwendung dieses Frameworks als Leitstruktur zielt diese Dissertation darauf ab, aus den Forschungsperspektiven Design, Verhalten und Konsequenzen Wissen zu schaffen und zu erweitern, wie Individuen in ihren Rollen als Arbeitnehmer:innen, Kund:innen und im privaten Kontext die Digitalisierung besser, sicherer und bewusster meistern können. Aufbauend auf und unter Einbeziehung von qualitativen Forschungsmethoden wie Literaturanalyse und Experteninterviews stützt sich diese Dissertation vor allem auf die Erhebung empirischer Daten und deren quantitative Auswertung. Dies umfasst mehrere kleiner und größer angelegte Umfragen und Feldexperimente sowie analytische Methoden wie Strukturgleichungsmodelle, Regressions- und Clusteranalysen. Kapitel 2 der Dissertation befasst sich mit der Digitalisierung von Individuen in ihrer Rolle als Arbeitnehmer:innen. Kapitel 2.1 beschäftigt sich mit der Gestaltung von Arbeitsplätzen hinsichtlich der Ausstattung mit digitalen Technologien und des Verhaltens von Arbeitnehmer:innen bei deren Nutzung. Zum anderen arbeitet Kapitel 2.1 heraus, inwiefern dieser Überblick der digitalen Technologien eine Grundlage für die individualisierte Gestaltung digitaler Arbeit sowie für adäquate Interventionen darstellt. Kapitel 2.2 beschäftigt sich mit den Konsequenzen des Nutzungsverhaltens dieser digitalen Technologien. Im Mittelpunkt steht dabei der Zusammenhang zwischen der Digitalisierung von Arbeitsplätzen, der negativen Konsequenz Technostress und möglichen Gegenmaßnahmen, den sogenannten Technostress-Inhibitoren. Kapitel 2.2 ermöglicht ein detaillierteres Verständnis der zugrunde liegenden Mechanismen und bewertet die Wirksamkeit von Gegenmaßnahmen. In Kapitel 3 liegt der Fokus auf Individuen in ihrer Rolle als Kund:innen. Als Reaktion auf zunehmende Datenerfassung seitens Unternehmen und wachsende Datenschutzbedenken seitens Kund:innen konzentriert sich Kapitel 3.1 auf die Identifizierung einer umfassenden Liste von Datenschutzmaßnahmen, die diese Bedenken adressieren. Darüber hinaus wird festgestellt, dass die Umsetzung einiger dieser Maßnahmen zu einer höheren Kundenzufriedenheit führen würde. In Kapitel 3.2 wird analysiert, ob und wie digitales Nudging eingesetzt werden kann, um das Online-Einkaufsverhalten von Kund:innen in Richtung der Auswahl umweltfreundlicherer nachhaltiger Produkte in Online-Supermärkten zu beeinflussen und wie sich dieser Einfluss in Bezug auf einzelne Kundenmerkmale unterscheidet. Kapitel 4 beleuchtet die Digitalisierung von Individuen im privaten Kontext. Kapitel 4.1 befasst sich mit der Entwicklung einer App zum Festhalten und zur Verfolgung von Gewohnheiten, die ihren Nutzer:innen Autonomie in Bezug auf ihr zielgerichtetes Verhalten bietet. Es wird festgestellt, dass die Bereitstellung von Autonomie das Wohlbefinden der Nutzer:innen steigert. Die Ausübung von Autonomie verbessert die Leistung bei der Zielerreichung. Zusammenfassend stellt diese Dissertation für Forschung und Praxis Beiträge bereit, die zu einem tieferen Verständnis eines erfolgreichen Umgangs von Individuen als Arbeitnehmer:innen, Kund:innen und Individuen im privaten Kontext mit der Digitalisierung führen sollen

Status Quo, Critical Reflection, and the Road Ahead of Digital Nudging in Information Systems Research: A Discussion with Markus Weinmann and Alexey Voinov

Research on digital nudging has become increasingly popular in the information systems (IS) community. In this paper, we overview the current progress of, critically reflect on, and discuss further research on digital nudging in IS. To do so, we reviewed the literature and interviewed Markus Weinmann from Rotterdam School of Management at Erasmus University, one of the first scholars who introduced digital nudging to the IS community, and Alexey Voinov, Director of the Centre on Persuasive Systems for Wise Adaptive Living at University of Technology Sydney. We uncovered a gap between what we know about what constitutes digital nudging and how we can actually put consequent requirements into practice. In this context, the original nudging concept bears inherent challenges about, for example, the focus on individuals’ welfare, which, thus, also apply to digital nudging. Moreover, we need to better understand how nudging in digital choice environments differs from that in the offline world. To further distinguish itself from other fields that already tested various nudges in many different domains, digital nudging research in IS may benefit from a design science perspective in order to go beyond testing effectiveness and provide specific design principles for the different types of digital nudges