The Influence of Status Quo Bias in Marketing and Reasons Leading to this Tendency

Abstract

Status quo bias refers to the emotional preference to the present situation. It could also be defined as the tendency to resist changes, even there are better alternatives being provided. Status quo bias significantly influences individuals behavior in variously fields. This essay mainly investigated the extent of status quo bias, affecting consumers purchasing preferences in marketing, as well as the reasons behind. Through the study on historic concepts, analysis on typical cases and 2 specially designed experiments, the conclusion reached is that status quo bias is consistently influential in marketing, and reasons include preference to familiar subjects and aversion of lost. Based on the previous theories and studies, typical case (Coca-Cola, 1985) is analyzed and online experiments are designed to illustrate the reasons people choose status quo when facing consumption choices. Results show that status quo bias is consistently influential in marketing, due to loss aversion, cognitive tendency and the rejection of risk and uncertainty. Enterprises therefore could use status quo bias as an effective selling strategy, in order to increase sales and profits.