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Nudging users into digital service solutions

David Schneider (), Johannes Klumpe (), Martin Adam () and Alexander Benlian ()
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David Schneider: Technical University of Darmstadt
Johannes Klumpe: Technical University of Darmstadt
Martin Adam: Technical University of Darmstadt
Alexander Benlian: Technical University of Darmstadt

Electronic Markets, 2020, vol. 30, issue 4, No 13, 863-881

Abstract: Abstract With the ubiquity and prevalence of advanced technologies in society, transactions have become increasingly digital, requiring new user identity verification mechanisms. Electronic identification (eID) enables user identity authorization in online environments. Although eID plays a central role in government initiatives worldwide to digitalize citizen transactions, eID adoption remains surprisingly low. Drawing on digital nudging theory and e-government literature, we examine how eID adoption can be increased by changing the decision environment in which users choose eID. In a controlled experiment with 161 participants, we investigate the effect of default options (eID vs. offline ID as default) and popularity signals (presence vs. absence of social proof) on users’ eID adoption behavior. Both nudges increase eID adoption, but default options are a double-edged sword as they simultaneously fuel privacy concerns towards the government, attenuating the effect of default option on eID adoption. These concerns can be mitigated by adding social proof cues.

Keywords: eGovernment; Digital nudging; Choice architecture; Default option; Social proof; Adoption; Privacy concerns; eID (search for similar items in EconPapers)
JEL-codes: C91 D91 M38 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/s12525-019-00373-8

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