The effect of default opt-ins and social proof tags on high-stake decision-making in an e-commerce context

(1) Pathways School Gurgaon, (2) Individuals and Societies, Pathways School Gurgaon

https://doi.org/10.59720/24-157
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Previous research has investigated how certain strategies can influence people's decisions in simple, everyday choices, such as selecting a loaf of bread or purchasing a book online. The objective of this study was to further the understanding on choice architecture elements of default opt-ins and social proof tags, which are interface elements that signal the use of a product by other individuals. We analyzed their effect in an e-commerce context, specifically exploring high-stake economic decision-making that is characterized by high economic cost (financial or opportunity cost) and high decision importance. We achieved this through investigating the effect of default opt-ins on test ride bookings for an automobile, as well as the influence of social proof tags on click-through rates and ‘bookings’, which involve a payment of ~5% of the vehicle price made by customers to reserve a place for them on the purchase waitlist. We hypothesized that a default opt-in in the test ride form would have a significant positive influence on the conversion rate. Our findings supported our hypothesis. We further hypothesized that the addition of social proof tags on choices within a set of alternatives would result in a significant increase in the consideration of those choices for purchase. Though the results were inconclusive, our comparative analysis showed the potential importance of both the default options and social proof tags on consumer decision-making, creating an opportunity for further research into the effective use of the combination of defaults and social proof tags in an e-commerce context.

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