• Korea Trade Review
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• v.46 no.1
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• pp.23-38
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• 2021

This paper investigated the preference change of payment terms in international trade along with counteroffer or first offer conditions of the other parties. Studies on trade payment terms have mainly focused on payment term determination factors such as firm size, product price level, country credit rate, etc. We tried to find other factors affecting payment terms choice, during the negotiation process. We applied behavioral economics theories such as 'Status Quo Bias' and 'Anchoring effect' to build our research model. To prove the existence of the above effects, we proceeded with field experiments to the exporting companies in Alibaba.com. Both 'Status Quo Bias' and 'Anchoring effect' were found in the field experiment. Most of the exporting companies preferred traditional payment methods to new payment methods. And an initial request for a low advance payment ratio led to a lower advance payment ratio. Also, the experience of using new payment methods could diminish status quo bias. This paper applied behavioral economics theories and field experiment methodology to the payment term studies in international trades. These attempts could contribute to expanding the diversity of methodology and scope of international trade studies.

• The Journal of Information Systems
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• v.23 no.3
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• pp.143-164
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• 2014

This study draws on status quo bias theoretic perspective as a meta-theoretic lens to explain why individuals have resists to adopt smart devices for their tasks. More specifically, we attempted to examine the relationships among user's resist, perceived usefulness and individual productivity in the smart work context. By employing the status quo bias theoretic perspective, we develop and test our research model by using a survey data from 235 individual users. We demonstrate that satisfaction on the current state influence users' resist, and also the users' resist is mediated by perceived usefulness on individual productivity. From the status quo bias view, this study presents an alternative meta-theoretical lens in order to understand individuals' resist in the smartwork context.

• Korean Journal of Organic Agriculture
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• v.32 no.1
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• pp.25-37
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• 2024

This study is to apply behavioral economics-an economics that studies actual human behavior based on cognitive psychology-to the farming decision-making process of onion and garlic farmers. Of behavioral economic theories, dual system theory and prospect theory (value function), heuristic and bias were surveyed and examined in the field. The reference point of farmers was farming experience of the previous year, and so they showed reference dependence and anchoring heuristic, not rational thinking on production cost plan. And they showed status quo bias that cultivated continuously the previous year or the present crop. This status quo bias is related to loss aversion propensity. Farmers did not usually change cultivating crops, in other words, they showed diminishing sensitivity-insensitive to those that the more revenue or loss was increased. This diminishing sensitivity is related to loss aversion propensity and status quo bias. Also, farmers had representativeness heuristic because they regarded auction price of Garakdong wholesale market as the standard price level despite various prices by production region. And farmers had the affect heuristic that they depended on producers' organization data more than the state-run research institute ones about cultivation intentions and actual situations.

• The Journal of Information Systems
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• v.27 no.2
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• pp.221-245
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• 2018

Purpose This study aims to investigate the factors that influence switching intention of Smart Appliances. We focuses on Push-Pull-Mooring theory and status quo bias as factors related to switching behavior. Design/methodology/approach This study developed an model to explain the switching intention of Smart Appliances and conducted structural equation modeling with AMOS22.0. To test the proposed hypotheses, we collected 319 survey responses from smart appliances's users. Findings The results indicated that low usefulness and low ease of use had an effect on the switching intention of smart appliances. The results also indicated that attractiveness of the alternative and social norms had an effect on the switching intention of smart appliances. Lastly, The difference between the relation of push effect and switching intention and the relation of pull effect and switching intention was found to be due to the level of status quo bias. The academic and managerial implications were discussed based on the results of empirical analysis.

• Journal of Information Technology Services
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• v.21 no.4
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• pp.1-26
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• 2022

Recently, the number of cases of purchasing food online has been increased, especially in the open market. Therefore, we examined the characteristics of status quo bias and switching costs in the open market. Also, in this study, the causal relationship between the characteristics of status quo bias and switching costs, switching costs and switching intention in the open market was investigated. The analysis result consists of four parts as follows. First, in the open market, rational decision making, which belongs to the characteristics of status quo bias, was found to have a positive (+) effect on time switching cost among switching costs, but did not have a positive (+) effect on economic and psychological switching cost. Second, cognitive misperceptions was consistent with the assumption that it have a positive (+) effect on all of the economic, time, and psychological switching cost, which are switching costs in the open market. Third, psychological commitment was found to have a positive (+) effect on economic and time switching cost among switching costs, but did not have a positive (+) effect on psychological switching cost. Fourth, psychological switching cost, which belongs to switching costs in the open market, was found to have a negative (-) effect like the hypothesis set in switching intention. However, it was found that economic and time switching cost did not have a negative (-) effect on switching intention. This study subdivided the switching costs into three dimensions and compared the degree of influence on the switching intention, and the degree of influence was different for each dimension. Therefore, it was found that when switching from the existing open market to the new open market, it is not possible to simply judge that the switching costs directly has a negative (-) effect on the switching intention or does not.

• The Journal of Information Systems
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• v.24 no.2
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• pp.189-208
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• 2015

Purpose While individuals have unique abilities for planned behavior, they also often act irrationally. In this study, we draw on myopic loss aversion perspective as a meta-theoretical lens to explain why mobile applications users have inertia from updating their applications, ultimately leading them to use current version of applications. Design/methodology/approach Based on a survey of 219 users, this study conducts its research model using partial least square analysis and also demonstrates that both subconscious triggers (habit and anxiety) of system 1 thinking and conscious triggers (sunk cost and transition cost) of system 2 thinking promotes user's inertia, thus leading to the willness to continue use current versions. Findings By grounding the research model in the combination of both status quo bias and dual information processing theory from the behavioral economics, this study provide an alternative theoretical lens to describe why mobile users hesitate to update their applications. The results of this research show that all triggers have significant impacts on inertia. This study also found that the relationship between inertia and willingness to continue to use current version was positively significant.

• The Journal of Information Systems
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• v.27 no.3
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• pp.81-102
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• 2018

Purpose The purpose of this study is to investigate the reason why smartphone users do not use mobile banking based on Status Quo Bias and to find out whether there is a difference between passive resistance and active resistance. Design/methodology/approach This study made a design of the research model based on Status Quo Bias. SPSS 23.0 and SmartPLS 2.0 were used for the analysis. Multiple group analysis was performed to identify differences between groups. Findings According to the empirical analysis result, this study confirmed that inertia and perceived risk affected smartphone users who do not use mobile banking. According to the type of resistance, the active resistance group(64.2%) was more than the passive resistance group(35.8%), and it was confirmed that there was a difference in the reasons for not using mobile banking between passive and active resistance group. That is, the greatest difference between passive and active resistance groups was found to be perceived risk, which is an assessment of risk.

• The Journal of Information Systems
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• v.24 no.3
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• pp.75-94
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• 2015

Purpose While new versions of mobile applications could offer users better computing environment, users are not always comfortable with them for various reasons. Considering making update decisions is important task for users, it is crucial for us to understand users' behavior and attitude on app updates. The purpose of this study is to explain why mobile users succumb to both reactance toward the update and satisfaction to the current version, ultimately leading them to feel the regret by employing three theoretical perspectives including regret theory, status quo bias theory and the dual model. Design/methodology/approach Survey data collected from 204 mobile users was used to test the research model using partial least squares analysis. The results have shown that both reactance toward the update and satisfaction to the current version have negative impacts on individuals' decisions to update, which leading to their regret after updating the applications Findings By integrating both status quo bias and regret theory in the model, this study tried to explain why mobile users feel regret in application update settings. More specifically, this study has proposed a novel framework that introduces an individual's update decision on mobile applications.

• The Journal of Information Systems
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• v.27 no.1
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• pp.133-151
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• 2018

Purpose Global fintech industry is proliferating. Although domestic investment in fintech service is also increasing fast, user acceptance of fintech payment service seems slower than expected. Previous fintech literature mainly focuses on overall characteristics and technical aspects of fintech including security issues and explores factors affecting the service adoption. This study aims to examine crucial factors affecting user's resistance intention to fintech payment service adoption. The research model was formulated based on innovation diffusion theory and status quo bias theory and validated empirically. Design/methodology/approach The proposed research model was empirically validated with 149 responses from college students who have used fintech payment service. The component-based SEM was employed for data analysis. Findings The significant findings are as follow. First, compatibility has significant negative effect and complexity, and perceived risk has a positive effect on user resistance. Second, institutional trust does not show a significant effect on user resistance but has an indirect effect through the mediation of trust in service provider. Finally, trust in service provider shows the significant negative effect on user resistance.

• Human Ecology Research
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• v.57 no.2
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• pp.171-183
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• 2019

Convergence between technology and financial services is ubiquitous and widespread. Virtual banks represent an important aspect of financial markets that can generate value added for consumers and enhance the quality of financial services. This study explores the effect of innovation characteristics (relative advantage, compatibility, and perceived risk), consumer characteristics (status quo bias), and social mechanisms (network externality: complementarity, numbers of peers) on consumers' adoption intention and resistance to virtual banks. This study adopted an innovation resistance model with two dependent variables: adoption intention and resistance to virtual banks. An online self-administered survey was conducted and 532 or non-users of virtual banks aged 20 to 69 years old were analyzed. Frequency analysis, descriptive analysis, and hierarchical multiple regression indicated that status quo bias, relative advantage, perceived risk, complementarity, and number of peers insignificantly influence the adoption intention regarding virtual banks. Furthermore, status quo bias, relative advantage, perceived risk, and number of peers insignificantly influence the resistance to virtual banks. Female respondents have a lower adoption intention and higher resistance to virtual banks than male respondents. The findings suggest that the innovation resistance model can be useful in understanding consumers'adoption and resistance behavior as well as reveal that innovation characteristics, consumer characteristics, and social mechanism are important antecedent variables of the innovation adoption decision.