Scrutinize Default in Sequential Decisions

Defaults ease the decision making in the face of an overwhelming number of options. Researchers at University of Alberta and University of St. Gallen have recommended developing a limited number of combinations of the major item attributes, then encouraging the consumer to choose one of these defaults and customize it.
     However, doing this risks another problem. The fault with a default is that it can contaminate the next steps when, as often occurs, a sequence of decisions is being made. Accepting a default choice in an early step might lull consumers toward lazy inattention to the subsequent steps or arouse resistances to following advice in subsequent steps.
     In studies at Erasmus University, Monash University, and University of Alberta, when participants accepted the default higher-quality alternative for an initial decision, they became less likely to select higher-quality alternatives in subsequent decision steps. When the default was the lower-quality alternative, those who accepted it were less likely to select lower-quality alternatives in subsequent steps.
     These findings run counter to the usual one that when people select higher quality or lower quality at the start on their own, they’ll stay with that preference. It is in line with the finding that when people accept a default rather than deliberate on their own, this strengthens their wish to change to a different option afterwards.
     The researchers emphasize that in their studies, both the higher and lower quality options were attractive. The pattern of findings might be different if the choices are between excellent and insufficient caliber choices.
     A way around the default choice’s contamination of next steps might be to offer an opt-out. Researchers at Northeastern University, Indiana University, and University of Cincinnati conducted a series of experiments involving opt-out configurations for food choices, financial incentives, energy usage, and privacy permissions.
     Rejection rates for the default option were about the same whether or not the consumers were told the purpose of the opt-out structure was to encourage them to accept the default. As long as consumers feel in control, they usually prefer simplicity, and accepting the default keeps things simpler.
     But the assertive disclosure did make a positive difference in another way: Those given it developed higher trust in the seller and were more likely to say they’d give the seller future business. This argues for employing defaults while making prominent disclosure to consumers that they have opt-outs.

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