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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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    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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