Homo economicus? An investigation of factors influencing perceived comfort of choosing paper-based triple stimulus vouchers

Abstract

PurposeTo alleviate the effects of coronavirus disease 2019 (COVID-19) on the economy, Taiwan introduced a stimulus package in the form of triple stimulus vouchers. Despite intense promotion to opt for the vouchers in digital form, Taiwanese public overwhelmingly chose the paper form. This study considers the reasons that influenced their decision comfort in choosing paper rather than digital vouchers based on two categories: rational (promotion depth and ease of use) and behavioral economics factors (analysis paralysis, mental accounting related to ease of tracking expenses, social influence and payment habits).Design/methodology/approachPartial least squares (PLS) method was utilized to analyze survey information obtained from 183 individuals who chose paper vouchers.FindingsIndividuals consider rational and behavioral economic factors in their perception of decision comfort while choosing paper over digital vouchers. Decision comfort is driven more by behavioral economics than rational factors such as ease of use. Interestingly, analysis paralysis related to paper vouchers has the greatest impact, but it positively influences decision comfort, indicating that Taiwanese people view paper vouchers as a safe haven in the midst of uncertainties and information overload. Therefore, when designing public policies or promotional campaigns, possible behavior outcomes should be considered from both rational and behavioral economic perspectives.Originality/valueThis study provides insights into the dynamics of how individuals arrive at their decision of opting paper vouchers over digital ones and offers theoretical contributions related to system adoption and behavioral economics.

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“…The concept of mental accounts, introduced by Thaler (1985) from a cognitive psychology perspective (Kahneman and Tversky, 1979), involves individuals categorizing, coding, evaluating, and mentally pre-calculating outcomes (Thaler, 1985;Lee, 2021;Tan and Liang, 2022). This theory has found widespread application in marketing (Lee and Morewedge, 2023), financial investment (Fan et al, 2018;Chiu, 2022), and other fields to explain individual's irrational decision-making behavior which cannot be explained by traditional economics (Baucells and Hwang, 2017;Qu et al, 2021;Alsharif et al, 2023a, b;Skwara, 2023).…”

“…The concept of mental accounts, introduced by Thaler (1985) from a cognitive psychology perspective (Kahneman and Tversky, 1979), involves individuals categorizing, coding, evaluating, and mentally pre-calculating outcomes (Thaler, 1985; Lee, 2021; Tan and Liang, 2022). This theory has found widespread application in marketing (Lee and Morewedge, 2023), financial investment (Fan et al.…”

“…Mental accounts provide valuable insights into the psychological aspects of decisionmaking behavior (Kahneman and Tversky, 1979;Chen et al, 2013). Individuals allocate their money into different accounts when engaging in transactions (Lee, 2021;Tan and Liang, 2022;Skwara, 2023), and consider factors such as pleasure attenuation, pain buffering, and time discount when deciding to pay now or pay later (Prelec and Loewenstein, 1998;Baucells and Hwang, 2017). Consequently, retailers and platforms need to offer flexible payment schemes and pricing strategies to achieve profitability (Zhang et al, 2021;Feng et al, 2023).…”

Consumers’ perceived value and use intention of cashless payment in the physical distancing context: evidence from an Asian emerging market

“…The outbreak of COVID-19 occurred in late 2019, and it continues to spread globally, with almost 510 million cases and more than 6.2 million deaths as of April 29, 2022(WHO, 2022. COVID-19 has damaged every aspect of human life around the globe and continues to exert threats, pressure and challenges for humans in both physical and psychological health (Alonso et al, 2020;Tan and Liang, 2022). Governments have proposed several regulations to protect people from the disease in most countries, including physical distancing (previously social distancing), wearing a mask, lockdown, travel restrictions and vaccination (Bonfanti et al, 2021).…”