The Impact of a Social Norm Nudge and a Loss Aversion Nudge on Consumer Intention to Book Holidays on an Online Platform

Abstract

Today, the tourism sector is one of the largest industries, significantly contributing to the global economy (Travel and Tourism, 2024). However, it faces a major challenge: the abundance of competitors and choices complicates consumers' purchasing decisions. In this highly competitive environment, tourism researchers and promoters must develop strategies to capture consumers' attention and drive sales (Horng et al., 2012; Ho & Lee, 2007 ). Recently, soft approaches such as nudging, and particularly digital nudging, have emerged. Digital nudging is defined by Weinmann et al. (2016) as "...the use of user-interface design elements to steer individuals' behavior in digital choice environments." Although many disciplines have explored how humans make decisions under pressure, research has often focused on a single type of stimulus, frequently overlooking the comparison of different types of stimuli. Additionally, despite some existing knowledge, the role of customer engagement in tourism and its specific conceptual relationships remain underexplored (Rather et al., 2019). Therefore, we will examine the impact of social norms nudges and loss aversion nudges on the intention to book vacations online. Following a literature review, we conducted a quantitative study with 125 participants to analyze the influence of these nudges on their purchase intention. Three different scenarios were presented to compare purchase intention: one with a loss aversion nudge, one with a social norms nudge, and one without any nudge. The results of this study will provide managers with insights to adapt their marketing strategies in an increasingly competitive market.