Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 7th International Conference on Economic Management and Green Development
Series Vol. 42 , 10 November 2023
Open
Access | Article
Status Quo Bias and Its Applications
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Abstract
In real life, humans tend to maintain the status quo, although other options or choices are better than the original ones. This phenomenon is quite common in decision-making, and businesses will also cleverly use it. The paper analyzes the applications of status quo bias in catering services, medical treatment, and health care based on existing literature and experimental results. The result shows that status quo bias impacts the consumer’s decision-making. Lastly, the paper provides advice to solve the problems of how consumers can avoid falling into the trap, which is called the status quo bias: they should take their time to make decisions, for example, by weighing the advantages and disadvantages. Try to spend as much time discussing both the benefits and drawbacks of the suggested change as possible; this will prevent people from favoring one side of the argument.
Keywords
status quo bias, default options, New Coke, loss aversion
References
1. Samuelson, William. “(PDF) Status Quo Bias in Decision-Making - Researchgate.” Status Quo Bias in Decision-Making, 1988. https://www.researchgate.net/publication/5152072_Status_Quo_Bias_in_Decision-Making.
2. Schmidt, U., & Zank, H. What is loss aversion?. Journal of risk and uncertainty, 30, 157-167. (2005).
3. Vinney, Cynthia. “How Status Quo Bias Affects Your Decisions.” Thought Co, December 11, 2019. https://www.thoughtco.com/status-quo-bias-4172981.
4. Baroi, J. Status Quo Bias Effect on Consumer Behavior to the Change in Products and Services. (2020).
5. Karl, F. M., Holle, R., Schwettmann, L., Peters, A., & Laxy, M. Status quo bias and health behavior: findings from a cross-sectional study. European Journal of Public Health, 29(5), 992-997. (2019).
6. Roberto, C. A., & Kawachi, I. Use of psychology and behavioral economics to promote healthy eating. American journal of preventive medicine, 47(6), 832-837. (2014).
7. Riis, J., & Ratner, R. Simplified nutrition guidelines to fight obesity. In Leveraging consumer psychology for effective health communications: The obesity challenge (pp. 333-346). Routledge. (2015).
8. Martech, A. What is status quo bias and how does it affect the workplace? Wharton Online. (2022, August 18). https://online.wharton.upenn.edu/blog/status-quo-bias/#:~:text =Simply%20put%2C%20status%20quo%20bias%20negatively%20affects%20your, also%20hinder%20the%20growth%20trajectory%20of%20a%20business.
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 7th International Conference on Economic Management and Green Development
- ISBN (Print)
- 978-1-83558-105-6
- ISBN (Online)
- 978-1-83558-106-3
- Published Date
- 10 November 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/42/20232083
- Copyright
- 10 November 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