Consumer matching costs to context: Status quo bias, temporal framing, and household energy decisions

Gill, Carrie; Atlas, Stephen A.; Hardisty, David J.; Scott, Shawn P.

doi:10.1002/cb.2051

Cited by 4 publications

(6 citation statements)

References 69 publications

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“…The SQB theory suggests that users are showing unfavorable responses toward new systems due to the existing system's status quo (Samuelson & Zeckhauser, 1988). Cognitive misperceptions (inertia, perceived values), rational decision making (switching cost and perceived threat), and psychological commitment sunk cost, regret avoidance) These are crucial inhibitors to adopting new technology (Gill et al, 2022; Joshi et al, 2021). SQB theory has been extensively used in understanding emerging technology adoption such as voice assistance (Balakrishnan et al, 2021), cloud system (Fan et al, 2015), mobile ticketing (Zhao et al, 2016), health cloud (Hsieh, 2015) and knowledge management systems (Li et al, 2016).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Should I adopt an integrated virtual clinic? A dual‐factor theory perspective

Shankar

Kumar

Yadav

et al. 2023

J of Consumer Behaviour

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This study investigates consumers' adoption intention toward the virtual clinic. The theory of planned behavior and status‐quo‐bias theory are used as underpinning theories to investigate the effects of enablers and inhibitors, respectively. Further, the mediating role of perceived values on the relationship between enablers, inhibitors, and adoption intention is also investigated. The study also investigates how mediating effect of perceived values varies at different levels of perceived information privacy concerns. The results of this study reveal that attitude, subjective norm, regret avoidance, inertia, and switching costs significantly influence the adoption intention toward virtual clinics. The study's findings will enrich technology adoption and online health literature, especially emerging literature related to the virtual clinic. The study helps healthcare service providers understand consumers' adoption intention of the virtual clinic.

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Section: Theoretical Backgroundmentioning

confidence: 99%

Should I adopt an integrated virtual clinic? A dual‐factor theory perspective

Shankar

Kumar

Yadav

et al. 2023

J of Consumer Behaviour

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“…The results showed that when presented with a monthly framework, individuals made the most energy efficient decisions because people were more likely to consider monthly costs than annual or daily costs. They also argue that people are usually unwilling to change the current level of energy use, even if they are using more energy than they actively choose [12].…”

Section: Energy Consumptionmentioning

confidence: 99%

“…Gill et al used a time frame model and concluded that when developing a monthly framework, individuals are able to make decisions that minimize energy consumption [12]. But direct evidence for status quo bias and energy consumption is also lacking.…”

Section: Energy Consumptionmentioning

confidence: 99%

An Overview of Status Quo Bias and Its Applications

Liao,

Zhang,

Zhou

2023

HBEM

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Behavioural economics has highlighted various biases that impact decision-making processes, including the pervasive status quo bias. This paper explores the impact of status quo bias indecision-making and its implications for policy interventions. The first section provides an overview of the status quo bias, its underlying mechanisms, and its prevalence across different domains. The second section investigates the consequences of status quo bias on individual decision-making, such as inertia, suboptimal choices, and resistance to change. Additionally, it discusses how status quo bias can lead to market inefficiencies and hinder social welfare. The third section explores potential policy interventions to mitigate the negative effects of status quo bias, including default options, nudges, and information provision. It also discusses the ethical considerations and potential limitations of these interventions. Understanding the role of status quo bias and its implications is crucial for policymakers and individuals alike, as it can inform the design of interventions that promote better decision-making and improve overall societal outcomes.

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“…The time-inconsistent preference bias refers to a situation when people perceived things as less valuable or less significant if further away in time, even if such things afford long-term benefits (Thaler R. , 1981); (Gill, Atlas, & Hardisty, 2016); (Hardisty, Shim, Sun, & Griffin, 2017). For instance, people often 'discount the future' by preferring smaller immediate rewards (e.g., $5 now) over larger future rewards (e.g., $10 next year), while they may avoid actions which are costly in the short-term (e.g., outlaying money and time to purchase new energy-efficient appliances, or making an effort to switch energy retailers), despite offering larger long-term benefits (e.g.…”

Section: Time Inconsistent Preferencementioning

confidence: 99%

“…Previous studies suggested that effective interventions should connect consumers with their 'future selves' which lead to larger contributions to savings and future rewards (Hershfiled et al, 2011); (Gill, Atlas, & Hardisty, 2016). This implies that future rewards from consumers' purchase decisions should be available to them.…”

Section: Knowledge Gap In Led Product Adoptionmentioning

confidence: 99%

Purchasing behavior of led lightbulbs of Thai consumers

Apipuchayakul

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Electricity use in residential sectors has become one of major demands for global energy production and consumption.One of today's most energy-efficient lighting products is a Light-Emitting Diode (LED) lighting technology. The efficiency of LED lighting technology has already surpassed all other forms of lighting products such as traditional incandescent and Compact Fluorescent Lamp (CFL). Replacement with highly efficient lighting appliances like LED products could generate more than 10-15 billion USD of national energy-savings a year, or save up to 801 Mt of CO2�emissions annually.�Even though LED technology have been introduced in the lighting market since 2014 coupled with its substantial price drop; the total LED adoption rate in Thailand accounted for fewer than 20% of the 4-5 billion light bulbs in use. A study to understand attitudes and behaviors of household consumers is therefore very important for governments and relevant authorities to determine effective incentive measures and promote changes in Thai consumers' attitudes and norms towards the use of LED lighting. This underlines the necessity for Thailand to achieve the United Nations Sustainable Development (Goal 7: Ensure Access to Affordable, Reliable, Sustainable, and Modern Energy for All). This thesis analyzed three major dimensions; psychological theory dimension, behavioral economics dimension, and perception of price dimension. First,�this study aims to examine the determinants of household consumers' behaviors in purchasing energy-saving lighting products LED (Light-Emitting Diode by applying the Theory of Planned Behavior (TPB) as the main theoretical framework.�Secondly, research in psychology and behavioral economics show that there are certain behavioral anomalies influenced and impeded consumers in making optimal decisions to maximize their utilities.�In this regard, this study aimed to empirically investigate the behavioral anomalies within the context of LED product purchase behavior, particularly through the lens of behavioral economics.�Third, in order to catch up with recent substantial decline in LED products; this study aims to present the Price Sensitivity Measurement (PSM) to determine the optimal price of energy-efficient LED bulbs. There are three main key findings of this thesis. First, the results suggested that attitude has the largest direct effect, while subjective norm was the weakest predictor of purchase intention towards LED products. An important additional finding is that attitudes have a strong direct influence on the purchasing behavior for LED products. Second, major behavioral anomalies to adopting LED bulbs at home were their (1) current satisfaction with the previous (inefficient) light bulbs and (2) habits of buying the same light bulb types, i.e., those recently�adopted�at home. Majority of the samples don't know that LED bulb has the shortest payback period and LED bulb is environmentally-friendly when they were asked about the LED's benefits. Finally, the results confirm that the optimal price point is different across two different consumer groups. LED users value the product higher due to their previous direct experience of the product's efficiency, than those who have never experienced the product's efficiency in energy-saving. The discrepancy between optimal prices across two different groups accounts for the incorporated WTP for premium towards energy-efficient products.The study's findings highlight several implications for policymakers, private sectors, and green marketers in developing practical strategies, effective behavioral interventions, efficient communication messages, and pricing strategies to encourage the adoption of LED products in Thailand.�

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Consumer matching costs to context: Status quo bias, temporal framing, and household energy decisions

Cited by 4 publications

References 69 publications

Should I adopt an integrated virtual clinic? A dual‐factor theory perspective

Should I adopt an integrated virtual clinic? A dual‐factor theory perspective

An Overview of Status Quo Bias and Its Applications

Purchasing behavior of led lightbulbs of Thai consumers

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