Does Immediate Feedback Make You Not Try as Hard? A Study on Automotive Telematics

Serguei Netessine, Operations, Information and Decisions, The Wharton School; Vivek Choudhary, INSEAD; and Masha Shunko, Foster School of Business

Manufacturing & Service Operations Management, December 2020

Abstract: Mobile and Internet-of-things (IoT) devices increasingly enable tracking of user behavior, and they often provide real-time or immediate feedback to consumers in an effort to improve their conduct. Growing adoption of such technologies leads to an important question: “Does immediate feedback provided to users improve their behavior?” We study immediate (close to real-time) feedback in the context of automotive telematics, which has been recognized as the most disruptive technology in the automotive insurance industry.

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