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EMAC 2024 Annual


Product Badges and Consumer Choice on Digital Platforms
(A2024-118359)

Published: May 28, 2024

AUTHORS

Nastasia Gallitz, LMU Munich School of Management; Markus Lill, LMU Munich School of Management; Martin Spann, LMU Munich School of Managment; Lucas Stich, Julius-Maximilians-Universität Würzburg

ABSTRACT

Through simple design changes, digital platforms can strategically shape consumer behavior. While prior studies focused on search rankings, the impact of other platform-provided design elements, such as product badges, has been largely neglected. This research examines product badge usage on Amazon and its influence on consumers’ search behavior and product choice. We analyze data from Amazon UK and conduct a lab-in-the-field experiment using a custom Chrome extension that can experimentally mask badges. Our results reveal intriguing patterns: We find considerable heterogeneity in badge prevalence, placement, and co-occurrence across badge types. In addition, we show badges to be an effective tool in influencing consumers’ consideration and choice set formation. This research adds to our understanding of how badges affect consumer behavior on digital platforms, offering insights for regulators and practitioners to foster transparency and user-friendliness in digital marketplaces.