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Nudging users into digital service solutions

Author

Listed:
  • David Schneider

    (Technical University of Darmstadt)

  • Johannes Klumpe

    (Technical University of Darmstadt)

  • Martin Adam

    (Technical University of Darmstadt)

  • Alexander Benlian

    (Technical University of Darmstadt)

Abstract

With the ubiquity and prevalence of advanced technologies in society, transactions have become increasingly digital, requiring new user identity verification mechanisms. Electronic identification (eID) enables user identity authorization in online environments. Although eID plays a central role in government initiatives worldwide to digitalize citizen transactions, eID adoption remains surprisingly low. Drawing on digital nudging theory and e-government literature, we examine how eID adoption can be increased by changing the decision environment in which users choose eID. In a controlled experiment with 161 participants, we investigate the effect of default options (eID vs. offline ID as default) and popularity signals (presence vs. absence of social proof) on users’ eID adoption behavior. Both nudges increase eID adoption, but default options are a double-edged sword as they simultaneously fuel privacy concerns towards the government, attenuating the effect of default option on eID adoption. These concerns can be mitigated by adding social proof cues.

Suggested Citation

  • David Schneider & Johannes Klumpe & Martin Adam & Alexander Benlian, 2020. "Nudging users into digital service solutions," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(4), pages 863-881, December.
    • Handle: RePEc:spr:elmark:v:30:y:2020:i:4:d:10.1007_s12525-019-00373-8
    DOI: 10.1007/s12525-019-00373-8
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    2. Malodia, Suresh & Kaur, Puneet & Ractham, Peter & Sakashita, Mototaka & Dhir, Amandeep, 2022. "Why do people avoid and postpone the use of voice assistants for transactional purposes? A perspective from decision avoidance theory," Journal of Business Research, Elsevier, vol. 146(C), pages 605-618.
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    4. Kamoonpuri, Sana Zehra & Sengar, Anita, 2023. "Hi, May AI help you? An analysis of the barriers impeding the implementation and use of artificial intelligence-enabled virtual assistants in retail," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    5. Dominick Werner & Martin Adam & Alexander Benlian, 2022. "Empowering users to control ads and its effects on website stickiness," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1373-1397, September.
    6. Moritz T. Bruckner & Dennis M. Steininger & Jason Bennett Thatcher & Daniel J. Veit, 2023. "The effect of lockup and persuasion on online investment decisions: An experimental study in ICOs," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-25, December.
    7. Adam, Martin & Wessel, Michael & Benlian, Alexander, 2020. "AI-based chatbots in customer service and their effects on user compliance," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 119304, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    8. Severin Weiler & Christian Matt & Thomas Hess, 2022. "Immunizing with information – Inoculation messages against conversational agents’ response failures," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(1), pages 239-258, March.
    9. Martin Adam & Konstantin Roethke & Alexander Benlian, 2022. "Gamblified digital product offerings: an experimental study of loot box menu designs," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 971-986, June.
    10. Goutier, Marc & Diebel, Christopher & Adam, Martin & Benlian, Alexander, 2024. "Proactive and Reactive Help from Intelligent Agents in Identity-Relevant Tasks," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 142985, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    11. Jithesh Arayankalam & Satish Krishnan, 2023. "ICT-Based Country-Level Determinants of Social Media Diffusion," Information Systems Frontiers, Springer, vol. 25(5), pages 1881-1902, October.

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    More about this item

    Keywords

    eGovernment; Digital nudging; Choice architecture; Default option; Social proof; Adoption; Privacy concerns; eID;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • M38 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Government Policy and Regulation

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