Is behavioural economics the new social marketing
 

Is behavioural economics the new social marketing

on

  • 3,538 views

Viv Casey, Social Marketing and Behavioural Change Consultant and Stephen Young, University of Brighton Business School

Viv Casey, Social Marketing and Behavioural Change Consultant and Stephen Young, University of Brighton Business School
www.charitycomms.org.uk/events

Statistics

Views

Total Views
3,538
Views on SlideShare
2,938
Embed Views
600

Actions

Likes
3
Downloads
72
Comments
0

7 Embeds 600

http://www.charitycomms.org.uk 566
http://charitycomms.org.uk 14
http://charitycomms.herokuapp.com 10
http://paper.li 6
http://localhost 2
https://letsgetin.unicef.org.uk 1
http://dev.charitycomms.org.uk 1
More...

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Is behavioural economics the new social marketing Is behavioural economics the new social marketing Presentation Transcript

  • Social Marketing Conference:Changing Behaviour Through Communications 30 November 2011 www.charitycomms.org.uk www.twitter.com/CharityComms www.facebook.com/CharityComms
  • IS BEHAVIOURAL ECONOMICSTHE NEW SOCIAL MARKETING? Viv Caisey Stephen Young Social Marketing: Changing Behaviour Through Communications 30th November 2011
  • AgendaIntroduction and OverviewWhat is Behavioural Economics And Why Does It Matter?Quick Wins and CaveatsMINDSPACE: Behavioural Economics meets Social MarketingClosing Thoughts Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • INTRODUCTION & OVERVIEW Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Social Marketing…and That Elephant Source: Banksy Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Social Marketing? Dr Halpern identified the origins of what is now BIT in “deregulatory thrust”, in part linked to the Better Regulation Executive. He understands the team’s role as raising awareness of “lesscognitive, less familiar approaches”as alternatives to legislation, pricing mechanisms and advertising and social marketing. Mr Letwin said that BIT wascreated in order to help Governmentdepartments think about“non-regulatory means ofachieving behaviour change”House of Lords Science and Technology Select Committee on Behaviour ChangeJuly 2011http://www.publications.parliament.uk/pa/ld201012/ldselect/ldsctech/179/179.pdf Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • But we need a mix... “ We agree with the Committee’scentral findings that nudges, usedin isolation, are likely to be lesseffective than using a range ofinterventions. We believe,however, that it is a useful andimportant to consider how to applybehavioural insights as one ofseveral tools which theGovernment has at its disposal”The Cabinet Office Government Response to theScience and Technology Select Committee Report onBehaviour Changehttp://www.parliament.uk/documents/lords-committees/science-technology/behaviourchange/BCGovernmentResponse.pdf Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • WHAT IS BEHAVIOURALECONOMICS AND WHY DOES IT MATTER? Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • “Behavioural economics… …the new Rock and Roll.”Geoff Gardner, Social Marketingconsultant, Atkins, July 2010 Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • “We are all choice architects now.”The Institute ofPractioners inAdvertising Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Economics 101: A Selection Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • “Standard” EconomicsIn the Standard Economic Model,economic agents are: Rational Motivated by expected utility maximisation Governed by selfishness, not taking into account the utility of others Bayesian probability operators Likely to have consistent time preferences according to their discounted utility Likely to treat all income and assets as fungible Source: Wilkinson, Nick, “An Introduction to Behavioural Economics,” Palgrave Macmillan Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Is This You? 1. A rational decision maker 2. Someone who considers how to maximise your outcomes from minimal inputs 3. Someone who acts as a result of thinking carefully about the costs and benefits of your decisionsCongratulations, you have stepped straight from the pages ofan economic textbook:You are a rational economic man/woman. Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Have You Ever:paid upfront for gym membership and then not gonebought a lottery ticketnot taken your medicationnot paid off your credit card billsmoked tobaccodrunk too much boozeeaten the “wrong” kinds of foodtaken out a mobile phone contract with large upfront paymentstaken out an “all you can eat” phone or broadband contractgiven in to temptationdonated bloodtaken pleasure from giving a gift…If yes, you are a homo sapiens.If no, you are a homo economicus (possibly an economist!) Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • “Standard” vs Behavioural EconomicsRational decision makers But how to explain: Blood donationConsider how to maximise outcomes Buying Fairtradefrom minimal inputs Keeping things longer than you should Being fooled by randomnessAct as a result of thinking carefully Buying a lottery ticketabout costs and benefits of decisions. Misjudging risk Hating to lose more than loving toHomo economicus, as seen in win“standard” economics Giving in to temptation Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Behavioural Economics: Where Economics meets PsychologyFrom Colin Camerer, George Loewenstein & Drazen Prelec “Neuroeconomics: Howneuroscience can inform economics” in Advances in Behavioral Economics Princeton,Princeton, 2004 and “Neuroeconomics: How Neuroscience Can Inform Economics,”Journal of Economic Literature, (March 2005) Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • “A lot of what makes behavioural “What were saying is economics interesting is psychology, it is about what that there is a happens inside the mind. These technology emerging phenomena are taking things that from behavioural are happening inside the mind economics. Its not and interfacing them with things happening in the world, the only an abstract thing. environment, and getting You can do things with feedback or getting interesting it. I thought the input of responses from that.” psychology into economics was finished but clearly its not! We are just at the beginning.”Sendhil Mullainaithan: Professorof Economics, Harvard Daniel Kahneman, A Short Course In BehavioralUniversity, A Short Course InBehavioral Economics, 10.1.08 Economics, 10.1.08http://www.edge.org/3rd_culture/ http://www.edge.org/3rd_culture/thaler_sendhil08/thaler_s endhil_index.htmlthaler_sendhil08/thaler_sendhil_index.html Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Decision making BiasesAutomatic system PreferencesReflective system FramesHomo economicus AnchorsHomo sapiens Loss AversionSpock Endowment effectSimpson Choice ArchitectureHeuristics DefaultsPreferences Nudges Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • What Is A Frame? And Does It Matter? Source: banksy vs Bristol Museum, July 2009 Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Can You Have Too Much Information? Private Eye, 30.10.09 Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Too Much Choice? 100 cereals are launched in the UK each year There are 700 breakfast cereals in the UK 94% of UK households have a box of breakfast cereals in their kitchen In the 1950s, 50% of UK population had a cooked breakfast each day Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Choosing A Charity “By investigating the role need actually plays in giving decisions, it begins to question assumptions behind fundraising practices that treat potential donors as rational agents, rather than social beings who live in social contexts that affect their overall charitable outlook and their specific charitable decisions” Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Too Much InformationThere is often an assumption that donors want more information to helpthem decide. But this may not be true.There are approx 180,000 registered charities in the UK.In the report, How Donors Chose Charities*,donors questioned were “oftendisarmingly honest about their lack of knowledge regarding the causes andcharities they support” “I’m not methodical about it ....I don’t have any very good “ Its just what way of choosing ...I just go by grabs me and gut instinct I suppose what doesn’t“ How Donors Choose Charities c 2010 Beth Breeze. Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Two Systems of Behaviour Spock Son of a Vulcan and a human Perfectly rational remembers ∏ to fifty decimal places, whilst under enemy phaser fire, without emotion Kirk: Youd make a splendid computer, Mr Spock. Spock: That is very kind of you, Captain! Spock: Nowhere am I so desperately needed as among a shipload of illogical humans. Kirk: I suspect youre becoming more human all the time. Spock: Captain, I see no reason to stand here and be insulted Offers Captain Kirk an emotionally detached, logical perspective and an "outsiders" perspective on "the human condition". Not an economist, but could be! Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Two Systems of Behaviour Simpson Apathetic Crude Boorish Unthinking Overweight Incompetent Ignorant Forgetful Stupid Clumsy Lazy fiercely devoted to his family Homer’s brain has a record of giving him dubious advice, sometimes helping him make the right decisions, but often failing spectacularly Doh… Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Interventions to Change BehaviourBehavioural economics acknowledges that, being human, we all aresusceptible to various biases that can lead us to blunder.Policies can be redesigned – based on recent findings inbehavioural economics – in order to change the way people behavein an optimal way so that an ideal level of individual and socialwelfare can be achieved for any given society. By knowing how people think, we can design choice environments that make it easier for people to choose what is best for themselves, their families, and their society. For example "choice architecture" can be established to nudge us in beneficial directions without restricting freedom of choice Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • QUICK WINS ANDCAVEATSSocial Marketing and Behavioural Economics © S.Young & V.Caisey
  • Nudges“A Nudge is asmall feature ofour environment,which capturesour attention andchanges our “A Nudge canbehaviour.” change behaviour without changing minds.” Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Source: www.nudges.org Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Quick Wins – a small Nudge – cut “spillage” …. by 80%Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Quick Wins Choice Architecture: Different shapes, same capacity. In an experiment, subjects poured 30% more "liquor" in the short tumblers than in the tall glasses. http://priceless-the-book.blogspot.com/Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Quick WinsCurrent Approach: BE Approach Explicit Consent UK Provisional Driving Licence Application: Now includes a tick box “I wish to register for the NHS organ donor scheme, as someone whose organs can be used after my death” Better still, why not make it opt out - change the default to presumed consent Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Quick Wins Can Mean Life or Death opt-in opt-out » http://www.decisionsciencenews.com/?p=98 Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Caveats“As policymakers use it to deviseprograms, it’s becoming clear thatbehavioral economics is beingasked to solve problems it wasn’tmeant to address. Indeed, itseems in some cases thatbehavioral economics is beingused as a political expedient,allowing policymakers to avoidpainful but more effectivesolutions rooted in traditionaleconomics.” George Loewenstein And Peter Ubel (2010) Economics Behaving Badly, New York Times, 14.7.10 http://www.nytimes.com/2010/07/15/opinion/15loew enstein.html?_r=1&src=tptw Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Caveats Foresight Report into Causes of ObesitySocial Marketing and Behavioural Economics © S.Young & V.Caisey
  • MINDSPACE:BEHAVIOURAL ECONOMICS MEETS SOCIAL MARKETING Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Natural Allies? “….. behavioral economics is a natural ally of social marketing. We have much to give each other. I am particularly attracted because it opens the possibility for great emphasis on the design of new policies and services to balance our somewhat excessive commitment to messages and exposure.”William Smith, Behavioral Economics and Social Marketing: New Allies in the War on AbsentBehavior Unpublished article, Social Marketing Quarterly, 2010 Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • MINDSPACE Institute for Government and the Cabinet Office, 2 March 2010. The report explores how behaviour change theory can help meet current policy challenges, such as how to reduce crime, tackle obesity and ensure environmental sustainability. http://www.instituteforgovernment.org.uk/content/1 33/mindspace-influencing-behaviour-through- public-policySocial Marketing and Behavioural Economics © S.Young & V.Caisey
  • MINDSPACESocial Marketing and Behavioural Economics © S.Young & V.Caisey
  • MessengerRadio 4 Appeal Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Incentives “I tend to be most unsympathetic if they include gifts. I don’t know why they do it, I mean it just makes you think ”what stupid fool do they think I am, that a biro is going to alter what I do?” Female, sixties, middle- high incomeHow Donors Chose Charities http://www.cgap.org.uk/uploads/reports/HowDonorsChooseCharities.pdf Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Norms“My mum alwaysgave to the localhospice so I dotoo.” Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • DefaultsSocial Marketing and Behavioural Economics © S.Young & V.Caisey
  • SalienceSocial Marketing and Behavioural Economics © S.Young & V.Caisey
  • Salience – LocalHospices are everywhere “You can see where- but you tend to give to the money goes,the one in your own unlike big charities where you haven’t abackyard clue what they are up to” How Donors Chose Charities c Beth Breeze http://www.cgap.org.uk/uploads/reports/HowDonorsChooseCharities .pdf Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • PrimingSocial Marketing and Behavioural Economics © S.Young & V.Caisey
  • AffectSocial Marketing and Behavioural Economics © S.Young & V.Caisey
  • Commitment Toby OrbSocial Marketing and Behavioural Economics © S.Young & V.Caisey
  • Ego"I donate to the RSPBbecause bird-watching isone of my greatobsessions. Its a kind oftreat to myself.“How Donors Chose Charities c Beth Breeze 2010http://www.cgap.org.uk/uploads/reports/HowDonorsChooseCharities.pdf Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Reframing Charitable DonationsMINDSPACEMessenger Celebrities, family, friends.Incentives Buy a charity lottery ticket/free giftsNorms Many people I know choose to give to this charityDefaults ATM, salary giving, restaurant bill add onsSalience New, LocalPriming Sub-conscious cuesAffect Causes that give me a thrillCommitments Take out direct debit/sponsor a childEgo Makes me feel good about myself Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • CLOSINGTHOUGHTSSocial Marketing and Behavioural Economics © S.Young & V.Caisey
  • Social Marketing Behavioural EconomicsTheory No unified theory. Draws from commercial No unified theory. Based on anomalies in sector results. existing economic theoryHeritage Commercial marketing Economic theory, experimental, empiricalBehavioural People often act irrationality People often act irrationalityAssumptionMethods What works Based on experimental psychologyIdeology InterventionistCoercive? Voluntary VoluntarySegment? Yes NoNeed to Yes - based on insights into behaviours of Not specifically - based on knowledge ofunderstand relevant segment general psychological barriers that preventthe desired behavioursaudience?Rationale Understand what moves and motivates Understand general psychological barriers target audience that prevent desired behavioursPersuade? Yes, by segment No, facilitateCosts Relatively expensive Relatively cheapPolicy Favoured by previous government (eg Favoured by current government (eg Nudge, Change4Life) MINDSPACE)Professional Many FewServiceProviders Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Conclusion Behaviour change includes an emerging set of practices and ways of thinking that neither SM nor BE can claim alone. Behavioural Change is a process not an event, most sustained behavioural change requires multiple actions and adaptations over time. Complex and often need more than one type of intervention – design, support, inform/educate. Not all problems are Wicked You don’t need to re-invent the wheel for every intervention – BE can shine a light on the “known knowns” Start with the “known knowns” because BE can sometimes offer solutions that are easy and cheap. Often, people are more alike than they are not alike. Sometimes BE will work, sometimes it won’t – it’s horses for courses. If BE doesn’t work, move on to the “Known Unknowns.”… Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Biography and ContactStephen Young, BA, MA Viv Caisey, MA, FCIM Senior Lecturer in Economics, Brighton Social Marketing and Behaviour Change Business School, University of Brighton Training & Consultancy Visiting Lecturer, Brighton and Sussex Health Services Journal 2008 Award Medical School for the UK’s Best Social Marketing Project Consultant, United Nations International Telecommunication Union Behavioural Economics Training and Consultancy http://uk.linkedin.com/pub/stephen- http://www.linkedin.com/profile/view?id young/18/129/316 =47864859&trk=tab_pro www.stephenyoung.org.uk www.vivcaisey.co.uk s.young@brighton.ac.uk viv@vivcaisey.co.uk Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • Social Marketing & Behavioural Economics Social Marketing and Behavioural Economics © S.Young & V.Caisey
  • THANK YOU Social Marketing and Behavioural Economics © S.Young & V.Caisey