• Title/Summary/Keyword: Psychological Sunk Costs

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Exploring Escalation of Commitment Situation in the Internet C2C Auction

  • Park, Sang-Cheol;Kim, Jong-Uk;Jang, Si-Young;Lee, Won-Jun
    • 한국경영정보학회:학술대회논문집
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    • 2007.06a
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    • pp.126-131
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    • 2007
  • Most Internet auction studies have focused on examining the determinants of auction success or closing price. However, there has been little previous research which investigates dark-side factors such as overbidding behavior in the Internet C2C transactions. For this reason, this study attempts to find situations with the escalation of commitment to bids using Internet auction systems and also examines whether the bidder's bidding is irrational. Therefore, this study applies escalation of commitment to explain the auction process such as the "going, going, gone period" with competition in Internet C2C auctions. In order to describe the auction process in terms of escalation of commitment, this study proposes psychological sunk costs, completion effect, and self-justification as the key factors of escalation of commitment and also willingness to continue bidding reflecting the decision maker's escalation behavior in terms of persistence perspective as final dependent variable. The results of PLS analysis indicate that a bidder's overbidding behavior is explained by the escalation of commitment.

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The effect of switching costs on resistance to change in the use of software

  • Perera, Nipuna;Kim, Hee-Woong
    • 한국경영정보학회:학술대회논문집
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    • 2007.06a
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    • pp.539-544
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    • 2007
  • People tend to resist changing their software even alternatives are better then the current one. This study examines the resistance to change in the use of software from the switching costs perspective based on status quo bias theory. For this study, we select Web Browsers as software. Based on the classification of switching costs into three groups (psychological, procedural, and loss), this study identifies six types of switching costs (uncertainty, commitment, learning, setup, lost performance, and sunk costs). This study tests the effects of six switching costs on user resistance to change based on the survey of 204 web browser users. The results indicate that lost performance costs and emotional costs have significant effects on user resistance to change. This research contributes towards understanding of switching costs and the effects on user resistance to change. This study also offers suggestions to software vendors for retaining their users and to organizations for managing user resistance in switching and adopting software.

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Determinants of perceptual switching costs for digital game: focused on the different effects of basic psychological needs satisfaction (게임 전환 비용의 결정 요인: 모바일 게임 사용자의 기본적 심리 욕구 충족 차이를 중심으로)

  • Kim, Young-Berm;Lee, Sang-Ho
    • Journal of the Korea Convergence Society
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    • v.11 no.1
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    • pp.131-139
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    • 2020
  • Gamers switch their games to a new when get bored or encounter more attractive ones. Switching cost varies by gamers and depends on how they are satisfied with their current game. This study evaluates the satisfaction with current games as the miltiple basic psychological need in the self-determination theory and suggests 'needs-costs' causality research model that explain the variety of gamer's switching behavior. As the empirical test to domestic mobile gamers, the autonomy fulfillment to current game affect reversely with those of autonomy and relatedness. Those relationships between need satisfaction and perceptual switching cost vary according to their age and game genre preference. The results would be applied to understand gamers' switching behavior.