The role of sunk costs in online consumer decision-making

Liang, Austin Rong-Da; Lee, Chia Ling; Tung, Wei

doi:10.1016/j.elerap.2013.10.001

Cited by 27 publications

(17 citation statements)

References 57 publications

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“…The results found for Accounting and Business Administration students corroborate the existence of the sunk cost effect, ratifying results found in previous studies carried out in a national (Silva et al, 2012;Altoé et al, 2012;Munaro et al, 2015;Pavão, Grejo, & Morais, 2015;Rodrigues, Freire, & Silva, 2016) and international context (Máñez et al, 2009;Liang, Lee, & Tung, 2014).…”

Section: Sunk Cost Analysissupporting

confidence: 89%

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Sunk cost effect in the decision-making process: an analysis with accounting and business administration students

et al. 2019

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Purpose: The objective of this paper was to analyze the influence of the sunk cost effect in the decision-making process of Accounting and Business Administration undergraduate students of the Federal University of Rio Grande do Norte. Methodology: The sample comprised 655 students, of which 347 were from the Accounting program and 308 from a Business Administration program. Data were collected through the application of structured questionnaires, based on the studies of Arkes and Blumer (1985), Rover, Wuerges, Tomazzia and Borba (2009) and Silva and Domingos (2010). After tabulation, the data were analyzed through descriptive statistics, as well as a Mann-Whitney U test to verify if there are differences between the answers of the Accounting and Business Administration students. Results: The main results suggest that the amount of sunk cost can influence the occurrence of the sunk cost effect, and this evidence is perceived through the mean values, considering that the reduction of the amount of sunk cost is inversely proportional to the average disposition of the respondents in continue investing in the course of action. In addition, to identify that the investigated students take the sunk costs into consideration in the decision-making process, it is verified that there is no statistically significant difference between the medians of the respondents with regard to the questions that allow identifying the susceptibility to the sunk cost effect in the context of business decision-making. Contributions of the Study: The study contributes to signal that the future professionals of Administration and Accounting are susceptible to the sunk cost effect, which can imply in a report of biased accounting information by future accountants, as well as biased decisions by future administrators. Furthermore, these results contrast previous evidence that suggests that agents from different areas of knowledge react differently to the presence of sunk costs.

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Section: Sunk Cost Analysissupporting

confidence: 89%

“…In order to discuss, compare and investigate the sunk cost effect, investigations have been carried out using questionnaires with hypothetical scenarios (Tversky & Kahneman, 1981;Garland, 1990;Liang, Lee, & Tung, 2014).…”

Section: Introductionmentioning

confidence: 99%

Sunk cost effect in the decision-making process: an analysis with accounting and business administration students

et al. 2019

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“…Other issues affecting online transactions include privacy and quality concerns and incidental risks [60]. Online transactions require clients to fill in their financial information, which causes some to fear the risk of financial loss [61]. For example, embezzling credit cards via the internet can lead to money loss.…”

Section: Consumer Behavior and Purchasing Decision In E-commercementioning

confidence: 99%

Consumer Marketing Strategy and E-Commerce in the Last Decade: A Literature Review

Rosário

Raimundo

2021

JTAER

120

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E-commerce is deemed as the sale and purchase of goods and services through the internet in exchange for money and data transfer to complete the transactions. E-commerce is at the forefront of transforming marketing strategies, based on new technologies, and facilitates product information and improved decision-making. In this way, marketing strategy increasingly require large amounts of information to better understand client needs, which raises the question of choosing the right marketing strategy to better fit consumer expectations. This literature review aims to shed light on both the recent growth of e-commerce literature and its interplay with consumer marketing strategy. Extant research has examined this change in human interaction due to social network building, mostly through the themes of online marketing and social media marketing, also comprehending issues such as cost efficiency, information quality and trust development towards online shopping. Nevertheless, existing research has not shown in full all the research streams, how they interact with each other and its potential knowledge development. Thus, a literature review on consumer marketing strategy for e-commerce in the last decade is opportune. This paper aims to identify research trends in the field through a Systematic Bibliometric Literature Review (LRSB) of research on marketing strategy for e-commerce. The review includes 66 articles published in the Scopus® database, presenting up-to-date knowledge on the topic. The LRSB results were synthesized across current research subthemes. The following findings are presented: Amidst the current competitive global business environment, companies tend to respond with strategies for e-commerce and online businesses that resort to e-commerce platforms and social networking to better understand consumer needs, facilitate consumer marketing strategy and share innovative information. The originality of the paper relies on its LRSB method, together with extant review of articles that have not been categorized so far.

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“…Os resultados encontrados tanto para os estudantes de Ciências Contábeis quanto para os estudantes de Administração corroboram a existência do efeito sunk cost, ratificando resultados encontrados em estudos anteriores realizados no contexto nacional (Silva et al, 2012;Altoé et al, 2012;Munaro et al, 2015;Pavão, Grejo, & Morais, 2015;Rodrigues, Freire, & Silva, 2016) e internacional (Máñez et al, 2009;Liang, Lee, & Tung, 2014).…”

Section: Análise Dos Sunk Costsunclassified

“…Para discutir, comparar e investigar o efeito sunk cost, têm sido realizadas pesquisas investigativas, utilizando questionários com cenários hipotéticos (Tversky & Kahneman, 1981;Garland, 1990;Liang, Lee, & Tung, 2014).…”

Section: Introductionunclassified

Efeito sunk cost no processo de tomada de decisão: uma análise com discentes de ciências contábeis e administração

et al. 2019

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Objetivo: O objetivo deste estudo é analisar a influência do efeito sunk cost no processo de tomada de decisão dos estudantes de graduação em Administração e Ciências Contábeis da Universidade Federal do Rio Grande do Norte. Metodologia: A amostra do estudo compreende 655 estudantes, sendo 347 do curso de Ciências Contábeis e 308 do curso de Administração. O levantamento de dados foi realizado por meio da aplicação de questionários estruturados elaborados com base nos estudos de Arkes e Blumer (1985), Rover, Wuerges, Tomazzia e Borba (2009) e Silva e Domingos (2010). Após tabulados, os dados foram analisados por meio da estatística descritiva, bem como foi realizado o teste U de Mann-Whitney para verificar se existem diferenças entre as respostas dos acadêmicos de Ciências Contábeis e Administração. Resultados: Os principais resultados sugerem que o montante de custo perdido pode influenciar na ocorrência do efeito sunk cost, sendo esta evidência percebida por meio dos valores das médias, tendo em vista que a redução do montante do custo perdido é inversamente proporcional à disposição média dos respondentes em continuar investindo no curso de ação. Além de identificar que os sunk costs são levados em consideração no processo de tomada de decisão por parte dos discentes investigados, verifica-se que não há diferença estatisticamente significante entre as medianas dos respondentes no que tange às questões que permitem identificar a suscetibilidade ao efeito custo irrecuperável no contexto de decisão empresarial. Contribuições do Estudo: O estudo contribui ao sinalizar que os futuros profissionais de Administração e Contabilidade são suscetíveis ao efeito sunk cost, o que pode implicar em um report de informações contábeis viesadas por parte dos futuros contadores, bem como tomadas de decisões viesadas por futuros administradores. Adicionalmente, contrapõe evidências anteriores que sugerem que os agentes de diferentes áreas de conhecimento reagem de forma diferente à presença de custos irrecuperáveis.

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The role of sunk costs in online consumer decision-making

Cited by 27 publications

References 57 publications

Sunk cost effect in the decision-making process: an analysis with accounting and business administration students

Sunk cost effect in the decision-making process: an analysis with accounting and business administration students

Consumer Marketing Strategy and E-Commerce in the Last Decade: A Literature Review

Efeito sunk cost no processo de tomada de decisão: uma análise com discentes de ciências contábeis e administração

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