Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 2nd International Conference on Business and Policy Studies
Series Vol. 10 , 13 September 2023
Open
Access | Article
The Influence of Status Quo Bias on the Behavior of Micro Subject
* Author to whom correspondence should be addressed.
Abstract
The article uses an online experiment to set a questionnaire to participants in order to investigate the effectiveness of status quo bias in people’s daily life based on the Coca-Cola’s real case in 1985. Since in 1985 Coca-Cola met the commercial failure because of the reformulation of new coke and ignore the effectiveness of status quo bias for consumers. By asking their preferences of two types of coke in different situations, the research tested the impacts almost each explanation of status quo bias on participants’ decision making of which type of coke to buy. The result shows that transition cost, uncertainty and loss aversion all influenced participants decision since most of the participants chose the coke classic instead of new coke. And the article deepened the research of the effectiveness of status quo bias in decision for consumption. Companies could learn from it in order to value the importance of status quo bias in order to avoid the happening of commercial failure, especially when they plan to do the reformulation. And consumers can based on it when they need to make purchasing decision.
Keywords
status quo bias, commercial failure, Coca-Cola
References
1. Samuelson, W., Zeckhauser, R.: Status quo bias in decision making[J]. Journal of Risk & Uncertainty, 1(1), 7-59 (1988).
2. Vinney, Cynthia.: Status Quo Bias: What It Means and How It Affects Your Behavior (December 6, 2021).
3. Kahneman, D., Tversky, A., Prelec, D., et al.: Choices, Values, and Frames[J] (1991).
4. Kahneman, D., Knetsch, J, L., Thaler, R, H.: Experimental Tests of the Endowment Effect and the Coase Theorem,". Journal of Political Economy, 98(6),1325-1348 (1990).
5. Schindler, R.M.: The Real Lesson of New Coke : The Value of Focus Groups for Predicting the Eff1ects of Social Influence (2005).
6. Ringold, D. J.: Consumer response to product withdrawal: the reformulation of coca-cola. Psychology and Marketing, 5(3),189-210 (1988).
7. Brehm J W , Stires L K , Sensenig J , et al.: The attractiveness of an eliminated choice alternative[J]. Journal of Experimental Social Psychology, 2(3), 301-313 (1966).
8. Zhang J.: Research on Spirit Moulding of Great Brands.
Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open Access Instruction).
- Volume Title
- Proceedings of the 2nd International Conference on Business and Policy Studies
- ISBN (Print)
- 978-1-915371-47-8
- ISBN (Online)
- 978-1-915371-48-5
- Published Date
- 13 September 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/10/20230434
- Copyright
- 13 September 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited