Advances in Economics, Management and Political Sciences

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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

Midi Xie * 1
1 Guanghua Cambridge International School

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 10, 76-83
Published 13 September 2023. © 13 September 2023 The Author(s). Published by EWA Publishing
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.
Citation Midi Xie. The Influence of Status Quo Bias on the Behavior of Micro Subject. AEMPS (2023) Vol. 10: 76-83. DOI: 10.54254/2754-1169/10/20230434.

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.

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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

Copyright © 2023 EWA Publishing. Unless Otherwise Stated