1. The Effects of Pressure and Self-Assurance Nudges on Product Purchases and Returns in Online Retailing: Evidence from a Randomized Field Experiment.
- Author
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Ghose, Anindya, Lee, Heeseung Andrew, Nam, Kihwan, and Oh, Wonseok
- Subjects
NUDGE theory ,BEHAVIOR modification ,SOCIAL pressure ,PERSUASION (Psychology) ,SELF-confidence ,CONSUMER behavior ,INTERNET marketing ,PRODUCT returns - Abstract
Through a randomized field experiment, this study compares the economic effects of two categories of nudges—self-assurance- and pressure-based interventions—on consumers' purchase and return behaviors. In contrast to pressure-oriented nudges, such as quantity scarcity, time scarcity, and social persuasion, self-assurance nudges are intended to facilitate the validation of product choice and style/size characteristics as well as the self-assurance-grounded justification of the purchase. The findings reveal that self-assurance nudges designed to help consumers make better choices have both short-term (high sales) and long-term (few product returns) benefits. Although pressure-driven nudges offer slightly higher short-term benefits (high sales), they eventually engender unfavorable long-term outcomes (high product returns) for consumers and online retailers. Finally, using return-adjusted net sales as performance measures, the authors find that self-assurance-based nudges are as effective in stimulating purchase as those that capitalize on scarcity and social pressure. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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