Social Proof, Scarcity, and Discounts: Experimental Evidence on Digital Nudges in E-Commerce

Abstract

The proliferation of digital nudges in e-commerce interfaces has reshaped consumer decision-making, yet their psychological mechanisms and societal implications remain contested, particularly in non-Western markets. This paper examines how three dominant interface defaults—social proof (“Top ranked”), monetary framing (“40% off”), and urgency cue (“Livestream ends in 3 minutes”)—influence willingness to pay and decision difficulty in China’s fast-paced digital marketplace. Using a randomized survey experiment with 519 respondents, we measure the causal effects of these nudges on engagement, purchase intent, and cognitive strain. Results show that nudges collectively increase WTP by 0.775 points (on a 5-point scale), with urgency cue producing the largest gains (1.063 points) but also raising decision difficulty by 0.304 points. Social proof and monetary framing boost WTP without increasing cognitive load. Heterogeneity analyses reveal stronger responses among women to social proof, greater sensitivity among lower-income users to discounts, and lower decision difficulty among tier-1 city residents. These findings highlight that the effectiveness and costs of digital nudges depend on demographic context and user characteristics, underscoring the need for ethical, user-centered interface design in digital commerce.

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