„Nudge or Compel? Canbehavioural economics tackle thedigital exclusion of older people?‟             Thursday 29th Novembe...
Welcome    Baroness Sally Greengross       International Longevity Centre - UKThis event is kindly supported by Nominet Tr...
Jo Connell         Consumer Communications PanelThis event is kindly supported by Nominet Trust                           ...
Nudge or Compel?Can behavioural economics tackle the   digital exclusion od older people?                                D...
Nudge or Compel?Can behavioural economicstackle the digital exclusion ofolder people?David Sinclair, International Longevi...
The International Longevity Centre-UK is an independent, non-partisan think-tank   dedicated to addressing issues of longe...
Summary 10 years of digital inclusion  policy. Why arent older people online  (access, skills, behaviour). We havent pa...
Looking back to 2003Instructions, packaging, userexperience, hardware, software gavea relatively terrible user experiencef...
The slow death of adult learning?Government had invested heavily in learning (UK Online Centres).We have failed to evaluat...
And since 2003Technology has facilitated betterback office functions which hasmade service delivery better forall.But more...
But much public discourse remains the same“This problem will go away. Thenext generation will be fine”.Last quarter ONS St...
From universal access to high speed broadbandDelivering Digital Inclusion (2008): Recognised behaviouralissues and led to ...
A move towards “digital by default”„We need to embrace newways of deliveringservices … We need to bedigital by default.Ser...
Barriers to going online Barriers to going online can be categorised  as: Access, Skills and Behavioural  choice The dis...
Behavioural choice is important Randall (2010) 39 per cent of those  without internet access at home  reported that they ...
Behavioural choice is important Selwyn et al (2005): a combination of choice, interest and  disposition were most likely ...
So what do we know about the relationshipbetween age, internet use and behaviouraltraits? New analysis of ELSA Wave 4. S...
But firstly, take care with Age AssumptionsThe International Longevity Centre-UK is an independent, non-partisan think-tan...
A significant association between internet useand perceived control in one‟s life                                        U...
A strong association between the measure of internet use and measures of loneliness                                      U...
People who reported not using the internet weremore likely to say that they „often‟ felt isolated                         ...
We found a weak association between themeasure of internet use and anxiety                                     Uses the in...
Other findings There was a strong association  between the measure of internet  use and whether respondents  reported hav...
Skills and behavioural economics People who said they did not own a  computer were more likely to feel  that they were un...
Where can we best nudge older people online?Social interactionsWhere older people use the internet, social interaction is ...
What do we mean by nudge?http://youtu.be/2lXh2n0aPywThe International Longevity Centre-UK is an independent, non-partisan ...
Status quo biasPeople tend to be conservative in theirpersonal decision-making, even wherethere is little or no evidence t...
Addressing the status quo biasRegret Aversion: service providers should offer the opportunity forpeople to „go back to pap...
Hyperbolic discountingPeople tend to over-value the present and under-value the future –they perceive the value of a certa...
Addressing hyperbolic discounting Non-users might be unwilling to make  initial investments involved in getting  online....
Anchoring and availability heuristicAnchoring means that people tend to decide things in accordancewith things they alread...
Anchoring and availability heuristic If older people have experience of  performing certain tasks by offline  mechanisms,...
Social norms People are influenced  by the behaviour of  others. Given that many of their  peers are offline, it is  per...
Shifting the Social Norm Companies advertising  technology and opportunities to  learn technology must do so  using image...
Choice architecture Individual decisions are  also influenced by the  way that people are  presented with choices. Going...
Influencing Choice Much more emphasis needs  to be placed on co-design. Representations of the  online world should be m...
Addressing Choice Overload   Smart, clear and accessible search    engines, should find ways of helping limit    the choi...
Should we go further? Compulsion?“By switching services, like what wehave done with analogue TV, there is areal opportunit...
Many thanksDavid SinclairAssistant Director, Policy andCommunicationsInternational Longevity CentreDavid.sinclair@ilcuk.or...
Annika Small                               Nominet TrustThis event is kindly supported by Nominet Trust                   ...
Marie Kamara                                    Open AgeThis event is kindly supported by Nominet Trust                   ...
Panel                            Dinah Greek                             Computeractive                       David Mortim...
Panel Debate and Q&A•   What potential is there for behavioural economics to ‘nudge’    people online?•   Has media litera...
‘Nudge or Compel? Can behaviouraleconomics tackle the digital exclusion                    of older people?’              ...
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Nudge or Compel? Can behavioural economics tackle the digital exclusion of older people?

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On the 29th November 2012, ILC-UK held the launch of a new report: ‘Nudge or Compel? Can behavioural economics tackle the digital exclusion of older people?’. This report, kindly supported by Nominet Trust, examines the factors which affect why older people do not get online, concentrating on behavioural choice. The launch was hosted by the Communications Consumer Panel.

Close to eight million adults in the UK have never used the internet, with the vast majority being older people. Over two fifths of those who have never been online are over 75. Previous work from ILC-UK has drawn attention to the nuances in why this digital divide continues; reporting in 2011 that for digital exclusion, factors such as psychological issues ‘appear to be more influential than material factors such as cost or lack of physical infrastructure’.

Within the last decade a strong policy trend has developed with the use of behavioural economics. Explored by Thaler and Sunstein in Nudge, this theory has been used in the development of programmes such as automatic enrolment in occupational pensions.

The introduction of the ‘digital by default’ agenda is likely to eventually result in reducing the alternative options for accessing public services and information. While resources have been funnelled into projects aiming to getting those not online connected, concerns have been raised that people who are disinclined to use the internet will be left without support and excluded from information and services.

During this event we heard from a number of experts in this area and approached the following questions:

-What potential is there for behavioural economics to ‘nudge’ people online?
-Has media literacy failed?
-Should we make more public services available exclusively online?
-How can we ensure that the digital by default agenda supports people to get online?
- How can we use digital technology in imaginative ways to re-think the challenges facing people in later life?

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Nudge or Compel? Can behavioural economics tackle the digital exclusion of older people?

  1. 1. „Nudge or Compel? Canbehavioural economics tackle thedigital exclusion of older people?‟ Thursday 29th November 2012 This event is kindly supported by Nominet Trust #nudgeorcompel
  2. 2. Welcome Baroness Sally Greengross International Longevity Centre - UKThis event is kindly supported by Nominet Trust #nudgeorcompel
  3. 3. Jo Connell Consumer Communications PanelThis event is kindly supported by Nominet Trust #nudgeorcompel
  4. 4. Nudge or Compel?Can behavioural economics tackle the digital exclusion od older people? David Sinclar International Longevity Centre - UK This event is kindly supported by Nominet Trust #nudgeorcompel
  5. 5. Nudge or Compel?Can behavioural economicstackle the digital exclusion ofolder people?David Sinclair, International LongevityCentre – UK @ilcuk@sinclairda #nudgeorcompel The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  6. 6. The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  7. 7. Summary 10 years of digital inclusion policy. Why arent older people online (access, skills, behaviour). We havent paid enough attention to behaviour. Our research shows that there are links between behavioural traits and internet use. Can we influence these behavioural traits? http://nudges.org/tag/urinals/The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  8. 8. Looking back to 2003Instructions, packaging, userexperience, hardware, software gavea relatively terrible user experiencefor many.Accessibility and the UserExperience has vastly improved http://www.adsavvy.org/amazoncoms-new-frustration-free-packaging-is-eco-and- customer-friendly/(hardware, software, ease ofpurchase, setup).There are millions of fewer peoplenot online.But there are millions more (over 7.5million) still offline.The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  9. 9. The slow death of adult learning?Government had invested heavily in learning (UK Online Centres).We have failed to evaluate impact of learning and ACL struggles tojustify expenditure.Public sector spending on adult learning is likely to be squeezedfurther due to spending cuts.By 2014/15 the education budget will be reduce by 13%. Spendingon schools will fall by 1%. But we will see 20% cuts to FurtherEducation and sixth-form colleges, and 40% to Higher Educationinstitutions. The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  10. 10. And since 2003Technology has facilitated betterback office functions which hasmade service delivery better forall.But more private and publicservices are availableexclusively online.The issue continues to be no-ones and everyonesresponsibility.Where are the Ministers? Anassumption remains that the http://www.glastonburyfestivals.co.ukmarket will solve this problem.The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  11. 11. But much public discourse remains the same“This problem will go away. Thenext generation will be fine”.Last quarter ONS Stats showedthat progress for 65+s is twothirds slower than for under 65s(4.36% improvement vs.14.22%).Anecdotal policy makingdominates debateOffline groups are still more likelyto be older, have disabilities orbe from lower socio-economicgroups.The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  12. 12. From universal access to high speed broadbandDelivering Digital Inclusion (2008): Recognised behaviouralissues and led to the creation of Race Online (but little else?)Digital Britain (2009) saw digital inclusion move to BIS andDCMS.Digital Britain conflated the issues of skills development andmotivation. No initiatives were proposed in either regard, althoughthe work of Race Online 2012 was referred to as a solution. Laterthat year actions legislative responsibility moved to the Treasuryrecognising economic imperative in relation to high speedbroadband.Britain’s Superfast Broadband Future (2010) abandons the UKGovernment‟s universal ambitions?The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  13. 13. A move towards “digital by default”„We need to embrace newways of deliveringservices … We need to bedigital by default.Services that could bedelivered online should bedelivered only online …Digital by default willbecome a reality, not justa buzz phrase‟. FrancesMaude MP http://www.ieg4.com/Universal Benefit – Heavyreliance of online access.The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  14. 14. Barriers to going online Barriers to going online can be categorised as: Access, Skills and Behavioural choice The disproportionally under-researched topic of behaviour and attitudes seem to play just as great, if not a greater role as access and skills Nudge was developed by Thaler and Sunstein (2008)The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  15. 15. Behavioural choice is important Randall (2010) 39 per cent of those without internet access at home reported that they didn‟t need the internet. 20 per cent said they didn‟t want it. FreshMinds (2008) two fifths of non- users failed to see the need or http://www.flickr.com/photos/48039948@N02/6070071650/sizes/m/in/pool- 92307085@N00/ benefit of using the internet or felt that it wasn‟t for them; older people (& those on low incomes) were more likely to hold this view. These groups were less likely to use the internet even when they did have access at home.The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  16. 16. Behavioural choice is important Selwyn et al (2005): a combination of choice, interest and disposition were most likely to be reasons for non-use than any other. Pew Internet Project in the United States (Smith, 2010): among current non-internet users, almost half (48 per cent) said that the main reason they didn‟t go online was because they didn‟t think the internet is relevant to them. One in five cited cost as a contributing factor in their non-use, and a similar number mentioned usability. Six per cent reported that a lack of access or availability was the main reason they didn‟t go online. Ofcom Technology tracker (2011), with nearly two thirds felt that people who buy things online put their privacy at risk. The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  17. 17. So what do we know about the relationshipbetween age, internet use and behaviouraltraits? New analysis of ELSA Wave 4. Some strong relationships which support the working hypotheses that people who did not report using the internet from this wave of the ELSA survey showed different behavioural qualities to people who did. Hypothesis: behavioural characteristics might somehow predict „limiting beliefs‟ which might prevent individuals from using the internet. The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  18. 18. But firstly, take care with Age AssumptionsThe International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  19. 19. A significant association between internet useand perceived control in one‟s life Uses the internet Yes No TotalStrongly agree 551 (39.6%) 840 (60.4%) 1391Moderately agree 1515 (51.6%) 1420 (48.4%) 2935Slightly agree 1545 (59.4%) 1058 (40.6%) 2603Slightly disagree 636 (68.2%) 296 (31.8%) 932Moderately 593 (77.3%) 174 (22.7%) 767disagreeStrongly disagree 268 (71.8%) 105 (28.2%) 373Chi-Sq= 422.074, df = 5, P=<0.000Table 1. Feels what happens in life is often determined by factors beyond control The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  20. 20. A strong association between the measure of internet use and measures of loneliness Uses the internet Yes No TotalHardly ever or 3764 (60.2%) 2489 (39.8%) 6253neverSome of the time 1091(51.3%) 1037 (48.7%) 2128Often 272 (37.4%) 456 (62.6%) 728Chi-Sq= 166.556, df = 2, P=<0.000Table 5. How often respondent feels lonely The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  21. 21. People who reported not using the internet weremore likely to say that they „often‟ felt isolated Uses the internet Yes No TotalHardly ever or 3683 (59.5%) 2503 (40.5%) 6186neverSome of the time 1242 (52.6%) 1118 (47.4%) 2360Often 198 (37.4%) 331 (62.6%) 529Chi-Sq= 115.871, df = 2, P=<0.000Table 6. How often respondent feels isolated from others The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  22. 22. We found a weak association between themeasure of internet use and anxiety Uses the internet Yes No TotalExperiences anxiety 194 (44.5%) 242 436 (55.5%)Doesn‟t experience 216 (62.6%) 129 345anxiety (37.4%)Chi-Sq= 4.008, df = 1, P=0.045Table 4. Respondent reports anxietyThe International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  23. 23. Other findings There was a strong association between the measure of internet use and whether respondents reported having any qualifications. People who reported using the internet were more likely to report having qualifications. A strong relationship between the measure of internet use and household income. Internet users were more likely to be members of a range of groups, http://www.cadsoft-consult.com/blogs/acad/2011/when-push-comes-to- nudge%E2%80%A6/ suggesting more sociability.The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  24. 24. Skills and behavioural economics People who said they did not own a computer were more likely to feel that they were unable to learn a new skill, while conversely people who did report owning a computer were more likely to agree that they could. This potentially reinforces previous http://www.flickr.com/photos/takomalibrary/6972793012/sizes/ research which suggests that with z/in/photostream/ exposure to computers and the internet, people‟s limiting beliefs about internet use can dissipate.The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  25. 25. Where can we best nudge older people online?Social interactionsWhere older people use the internet, social interaction is a keymotivator (keeping in touch).Information seeking behaviourWhen they are online older people are mostly likely to use theinternet to look for all types of information.Using the concepts of behavioural economics: starting wherepeople areOlder people should not be expected to radically transform theirway of life to become digitally included. Going online must bemade relevant and manageable within, and complementary to,existing patterns of behaviour.The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  26. 26. What do we mean by nudge?http://youtu.be/2lXh2n0aPywThe International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  27. 27. Status quo biasPeople tend to be conservative in theirpersonal decision-making, even wherethere is little or no evidence that thestatus quo benefits them more thansome alternative. For many older people the internet has never formed a significant part of their day-to-day functions and interactions Not knowing which online sources to trust may be a form of anxiety brought on by choice overload Getting online initially may involve various expenses which would http://www.creativerealities.com/innovationist- become irretrievable blog/bid/54011/Creative-Leadership-Is-it-too-risky The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  28. 28. Addressing the status quo biasRegret Aversion: service providers should offer the opportunity forpeople to „go back to paper‟ if they are unsatisfied with their digitalexperience.Loss Aversion: The Post Office should provide internet access in branches to assist customers in carrying out tasks online with assistance from staff. Policy makers and services providers should better promote the benefits of online over offline services. Within local council offices, residents could be assisted to use internet portals to pay rents and council tax. Local authorities could seek to promote websites that offer a portal to local amenities and services, located in both the public and private sectors, for older people. Policy makers and service providers should increasingly look at finding ways of getting to use computers and the internet in their day to day lives.The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  29. 29. Hyperbolic discountingPeople tend to over-value the present and under-value the future –they perceive the value of a certain good to be lower when it is onlyavailable in the future (for instance, most people would rather begiven £100 today than £110 next week).http://litreactor.com/columns/5-ways-your-brain-sabotages-your-writing-and-what-to-do-about-it The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  30. 30. Addressing hyperbolic discounting Non-users might be unwilling to make initial investments involved in getting online. Service providers may be able to attract older (all?) customers by finding ways of discounted installation and connection deals, and initial periods of free internet access. Once online, older people are likely to stay online. Moreover, because of the tendency to discount the future, Hyperbolic customers are likely to be more willing discounting may to agree to longer-term contracts in explain lack of exchange for discounted or free initial progress on climate access. change and ageing. The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  31. 31. Anchoring and availability heuristicAnchoring means that people tend to decide things in accordancewith things they already know or have experienced. http://www.ajkesslerblog.com/children-master-behavioral-economists/ The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  32. 32. Anchoring and availability heuristic If older people have experience of performing certain tasks by offline mechanisms, they may assume that these remain the most effective way for them. Service providers must promote online services as quicker, faster and delivering a better quality of service than offline alternatives. They must also live up to the http://www.wsulibs.wsu.edu/li/ucoll300 commitments they promote. The best way of moving the anchor facing non- users is for them to experience quality and efficiency from an online experience. The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  33. 33. Social norms People are influenced by the behaviour of others. Given that many of their peers are offline, it is perhaps perfectly understandable that older people don‟t consider using the internet a social norm. http://www.younghealth.co.uk/get-involved/social-norms The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  34. 34. Shifting the Social Norm Companies advertising technology and opportunities to learn technology must do so using imagery of both older and younger people. Older people who are online should be encouraged to talk through their experiences with their peers. Government and the private sector should support local digital champions to make the case at a community level for the use of new technology. http://www.browardprevention.org/resources/substance- abuse-prevention/ocial-norms/ The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  35. 35. Choice architecture Individual decisions are also influenced by the way that people are presented with choices. Going online will not seem like a worthwhile activity unless older people recognise web content that is relevant or useful to their lives, or related to their interests. http://smexchange.ogilvypr.com/2011/06/ogilvy-to-host-harvard-behavioral-economics-expert-on-june-29-to-discuss-what-drives- human-behavior/ The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  36. 36. Influencing Choice Much more emphasis needs to be placed on co-design. Representations of the online world should be more representative of all age groups, not just younger people. http://www.flickr.com/photos/driever/5525684658/sizes/m/in/ph otostream/The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  37. 37. Addressing Choice Overload Smart, clear and accessible search engines, should find ways of helping limit the choice of individuals according to their preferences, location and interests. Where government wants to encourage people to buy certain products or services such as pension or annuities for example, they should find ways of using technology to direct people to a selection of online providers which may meet their needs. Older people may be more willing to trust their local authority, even at the expense of searching for themselves for the best possible deals. Many already provide „trusted local company‟ guides. The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  38. 38. Should we go further? Compulsion?“By switching services, like what wehave done with analogue TV, there is areal opportunity to carry people on [tothe internet],... I think that shutting downservices would be the best way ofcarrying through the most amount ofpeople, as long as it is carried throughwith training”“the acid test for Directgov is whether itcan empower, and make life simpler for,citizens and at the same time allowgovernment to turn other things off” Martha Lane FoxThe International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  39. 39. Many thanksDavid SinclairAssistant Director, Policy andCommunicationsInternational Longevity CentreDavid.sinclair@ilcuk.org.uk02073400440Twitter: @ilcuk and @sinclairda The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change.
  40. 40. Annika Small Nominet TrustThis event is kindly supported by Nominet Trust #nudgeorcompel
  41. 41. Marie Kamara Open AgeThis event is kindly supported by Nominet Trust #nudgeorcompel
  42. 42. Panel Dinah Greek Computeractive David Mortimer Age UKThis event is kindly supported by Nominet Trust #nudgeorcompel
  43. 43. Panel Debate and Q&A• What potential is there for behavioural economics to ‘nudge’ people online?• Has media literacy failed?• Should we make more public services available exclusively online?• How can we ensure that the digital by default agenda supports people to get online?• How can we use digital technology in imaginative ways to re- think the challenges facing people in later life? This event is kindly supported by Nominet Trust #nudgeorcompel
  44. 44. ‘Nudge or Compel? Can behaviouraleconomics tackle the digital exclusion of older people?’ Thursday 29th November 2012 This event is kindly supported by Nominet Trust #nudgeorcompel
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