Mobile targeting of consumers for location-based offers are ubiquitous. But in the near future, with the rise of ride-sharing services and autonomous vehicles, consumers may be consuming more media and making more decisions on the go than ever before. Turns out, such mobility affects consumers’ decisions.
In this study, Yael Shani-Feinstein, Jacob Goldenberg and Arieh Gavious conducted several lab studies and a field experiment. Past research has correlated drivers’ speed, perceived thrill and sensation-seeking with other risk-taking behavior. Similarly, the more holistic, abstract view of what is perceived when moving at high speed may induce abstract decision making associated with riskier choices. The researchers thus hypothesized that consumers who perceive themselves to be moving at higher speeds may be prone to making riskier choices.
We investigate how the speed at which one is moving influences consumers’ risk preferences, an important factor of influence on consumer decision-making and behavior.
In the first lab study, subjects were shown images of passing landscapes at different speeds and asked to choose among six possible gambles with increasing expected payoffs and risk. Controlling for the perception of distance traveled, subjects exposed to higher speeds were more likely to choose the risker options. The second lab study repeated this design and results and further confirmed that subjects associated moving at high speeds with generalized, broad and automatic processing and moving slowly with detailed, controlled and specific processing.
The third study was a field experiment with subjects actually traveling on trains at different speeds. Passengers were asked to choose between two options: a smaller reward available immediately or a larger reward available in the future. Results again demonstrated that consumers traveling at high speeds are more likely to select the riskier option (greater reward in the future).
A fourth lab study exposed subjects to simulated smooth or bumpy car and train rides. While the difference for train riders was in the expected direction but not statistically significant, subjects exposed to the bumpier, high-speed car ride did experience these negative effects. Consistent with previous theory and research, this reversed subjects’ preferences and made them more risk averse (choosing a smaller, guaranteed award over a larger lottery award).
Read the full working paper here.