'Hidden persuaders': defaults and consumer welfare
Subject
Marketing
Publishing details
Authors / Editors
Smith N C;Goldstein D G
Publication Year
2007
Abstract
Defaults have been shown to have such powerful and unrecognized effects on consumer behavior that in some settings they may be considered ‘hidden persuaders’. This paper looks at defaults from the perspective of consumer welfare, consumer autonomy and marketing ethics. It surveys research on defaults and identifies three theoretical explanations for default effects: implied endorsement, cognitive biases, and effort. These theoretical explanations are informative in understanding the implications of defaults for consumer autonomy and consumer welfare. While attention has been paid to the means through which defaults can enhance consumer welfare, we show how, in certain circumstances, defaults can diminish consumer autonomy and also have adverse effects on consumer welfare. We conclude with implications for marketers, consumers, policymakers and researchers.
Publication Research Centre
Centre for Marketing
Series Number
07-105
Series
Centre for Marketing Working Paper
Available on ECCH
No