The Effects of Pressure and Self-Assurance Nudges on Product Purchases and Returns in Online Retailing: Evidence from a Randomized Field Experiment

Senior Consultant, Anindya Ghose, co-authored a paper published in the Journal of Marketing Research that explores the economic effects of two categories of nudges—self-assurance- and pressure-based interventions—on consumers’ purchase and return behaviors.

In this paper, Ghose and his co-authors use return-adjusted net sales as performance measures and find that self-assurance-based nudges are as effective in stimulating purchases as those that capitalize on scarcity and social pressure.

Abstract

Through a randomized field experiment, this study compares the economic effects of two categories of nudges—self-assurance- and pressure-based interventions—on consumers’ purchase and return behaviors. In contrast to pressure-oriented nudges, such as quantity scarcity, time scarcity, and social persuasion, self-assurance nudges are intended to facilitate the validation of product choice and style/size characteristics as well as the self-assurance-grounded justification of the purchase. The findings reveal that self-assurance nudges designed to help consumers make better choices have both short-term (high sales) and long-term (few product returns) benefits. Although pressure-driven nudges offer slightly higher short-term benefits (high sales), they eventually engender unfavorable long-term outcomes (high product returns) for consumers and online retailers. Finally, using return-adjusted net sales as performance measures, the authors find that self-assurance-based nudges are as effective in stimulating purchase as those that capitalize on scarcity and social pressure.

Read the full paper (restricted access)

This was originally published by the Journal of Marketing Research here. The views expressed are those of the authors only and do not necessarily represent the views of Compass Lexecon, its management, its subsidiaries, its affiliates, its employees, or clients.

Ghose, A., Lee, H. A., Nam, K., & Oh, W. (2023). The Effects of Pressure and Self-Assurance Nudges on Product Purchases and Returns in Online Retailing: Evidence from a Randomized Field Experiment. Journal of Marketing Research, 0(0). https://doi.org/10.1177/00222437231180494