PACIS 2019 Proceedings


More and more vendors are building and optimizing their own online customization system (OCS). Although the design of OCS is important aspects of IS research, little attention has been paid to the effect of emerging digital nudging on OCS. Following Felsen et al. (2013) study, we divide digital nudges into the “overt digital nudges (ODN)” and the “covert digital nudges (CDN)”. Through a 2 (ODN: yes / no) × 2 (CDN: yes / no) factorial online laboratory experiment, we explore how ODN and CDN influence on consumers’ choice of intermediate option. We found that both ODN and CDN significantly increased the number of selections of the intermediate option in consumers’ final package, and there was an interaction between them. If ODN and CDN were applied simultaneously, the effect was stronger than CDN only, but there’s no significant difference compared to ODN only. In addition, ODN had stronger effect than the CDN. Important theoretical and managerial implications are also discussed.