Fuzzy-Trace Theory and Risky Decisions in The Setting of The Digital Economy

Abstract

The purpose of this study was to test the ability of fuzzy-trace theory in explaining the influence of framing; and provide empirical evidence on the influence of framing and assurance structure in online consumer decision making with the setting of the digital economy in Indonesia. A total of 226 students participated in the experiment, using between-subjects design with a factorial of 2x2x2. This type of research is experimental research on students at the Muhammadiyah University of Makassar. The results of this study prove the accuracy of the predictions of fuzzy-trace theory in explaining framing, and also prove that assurance structure provides confidence to overcome the doubts and reluctance of online consumers in Indonesia to make online transactions. The implications of this research will be very beneficial for producers who will consider the consumer market in Indonesia as one of the countries with a potential population with growing online transaction growth.