The joint influence of regulatory and social cues on consumer choice of gambling websites: preliminary evidence from a discrete choice experiment

Abstract

ABSTRACT Authorities regulate online transactions to protect consumers from unintended negative consequences. Regulatory cues (e.g. certifications) enable consumers to identify formally approved online gambling offers where unauthorized products are available and blocking access is difficult. However, consumers who gamble online are also influenced by peer endorsement and frequently search for peer usage information to make decisions. This study investigates the interaction of regulatory and social cues and shows that these can be either complementary or substitutionary from a consumer perspective. Australian undergraduate students (N= 195, 72.3% female) indicated preferences toward fictitious online gambling websites in a discrete choice experiment involving active searching for cues. The impact of regulatory cues on decision-making increased when social cues indicated high quantities of website users, and when respondents lacked general trust toward gambling websites, but decreased when user social proximity was signaled. Our preliminary findings suggest regulatory cues should be prominent, and policies could aim to heighten mistrust in unauthorized sites. This study provides a foundation for further research designed to inform consumer protection agencies about how to influence consumer choice of online gambling websites in settings where regulatory and social cues may compete.