The Influence of Status Quo Bias on the Behavior of Micro Subject
- 1 Guanghua Cambridge International School
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Abstract
The article uses an online experiment to set a questionnaire to participants in order to investigate the effectiveness of status quo bias in people’s daily life based on the Coca-Cola’s real case in 1985. Since in 1985 Coca-Cola met the commercial failure because of the reformulation of new coke and ignore the effectiveness of status quo bias for consumers. By asking their preferences of two types of coke in different situations, the research tested the impacts almost each explanation of status quo bias on participants’ decision making of which type of coke to buy. The result shows that transition cost, uncertainty and loss aversion all influenced participants decision since most of the participants chose the coke classic instead of new coke. And the article deepened the research of the effectiveness of status quo bias in decision for consumption. Companies could learn from it in order to value the importance of status quo bias in order to avoid the happening of commercial failure, especially when they plan to do the reformulation. And consumers can based on it when they need to make purchasing decision.
Keywords
status quo bias, commercial failure, Coca-Cola
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Cite this article
Xie,M. (2023). The Influence of Status Quo Bias on the Behavior of Micro Subject. Advances in Economics, Management and Political Sciences,10,76-83.
Data availability
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Volume title: Proceedings of the 2nd International Conference on Business and Policy Studies
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