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Short: Using Behavioural Economics to sell carbon-reducing products & initiatives  (including to people who might  not be interested)
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Short: Using Behavioural Economics to sell carbon-reducing products & initiatives (including to people who might not be interested)

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We use Behavioural Economics to create communications that sell carbon-reducing products & initiatives (including to people who might not be interested). ...

We use Behavioural Economics to create communications that sell carbon-reducing products & initiatives (including to people who might not be interested).

See how we do it with this short and sweet trot through the sector.

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  • NOTES: Gas prices aren’t the only reason for more hybrid sales http://nudges.wordpress.com/gas-prices-arent-the-only-reason-for-more-hybrid-sales/ http://www.thehuntingdynasty.com/2010/01/death-and-taxes-why-your-decisions-kill-you-and-cost-you-money/
  • NOTES: Gas prices aren’t the only reason for more hybrid sales http://nudges.wordpress.com/gas-prices-arent-the-only-reason-for-more-hybrid-sales/ http://www.thehuntingdynasty.com/2010/01/death-and-taxes-why-your-decisions-kill-you-and-cost-you-money/
  • NOTES: Gas prices aren’t the only reason for more hybrid sales http://nudges.wordpress.com/gas-prices-arent-the-only-reason-for-more-hybrid-sales/ http://www.thehuntingdynasty.com/2010/01/death-and-taxes-why-your-decisions-kill-you-and-cost-you-money/
  • Called The Hunting Dynasty.
  • Called The Hunting Dynasty.

Short: Using Behavioural Economics to sell carbon-reducing products & initiatives  (including to people who might  not be interested) Short: Using Behavioural Economics to sell carbon-reducing products & initiatives (including to people who might not be interested) Presentation Transcript

  • Oliver Payne, Founder, CEO, The Hunting Dynasty [email_address] , Using Behavioural Economics to sell carbon-reducing products & initiatives (including to people who might not be interested) . It’s short. And light.
    • “… despite being generally capable and smart, we are highly context dependent .”
      • Jack Fuller, Australian research group Per Capita Research
    It won’t take long
  • How do we change behaviour in… | How do you create sustainable behaviour? 12. Irrational escalation: the tendency to make irrational decisions based upon rational decisions in the past, or to justify actions already taken. The dollar auction is a thought exercise demonstrating the concept. 13. Loss aversion: the tendency to fear losses more than to value gains of equal size. 14. Endowment effect: the tendency to demand much more to give up an object than you would be willing to pay to acquire it. The Duke University basketball ticket experiment (a combination of loss aversion and the endowment effect = Status quo bias ) 15. Neglect of probability: the tendency to disregard probabilities for absolutes when making a decision under uncertainty. 16. ‘Not Invented Here’: the tendency to ignore an idea or solution because its source is seen as unfamiliar. 17. Planning fallacy: the tendency to underestimate the time it takes to complete tasks. 18. Post-purchase rationalisation: the tendency to rationalise your purchases as ‘good buys’ merely based on the fact that you purchased them – and the reason why a 110% money back guarantee works. 19. Pseudo-certainty effect/Gambler’s fallacy: the tendency, when seeking positive outcomes, to make only risk-averse choices; but to make risk-seeking choices to avoid negative outcomes. 20. Selective perception: the tendency for expectations to shape perceptions. 21. Wishful thinking: the formation of beliefs according to what is pleasant to imagine rather than based on evidence or rationality. 22. Zero-risk bias: the preference for reducing a small risk to zero over a greater reduction in a larger risk. 23. Self-serving bias ( Illusory superiority/better-than-average effect ) occurs when people attribute their successes to internal or personal factors but attribute their failures to situational factors beyond their control.
    • 1. Aversion to extremes: the tendency to avoid extremes, to prefer a choice simply because it is the middle-ground option. Consumers Avoid Extremes In Soda Sizes
    • 2. Bandwagoning or herd instinct: the tendency to do (or believe) things simply because other people do.
    • 3. Choice-supportive bias: the tendency to remember your own choices as better than they actually were.
    • 4. Conservatism bias : the tendency to ignore the consequences and implications of new evidence.
    • 5. Contrast effect: the tendency to perceive measurements of an object differently when comparing them with a recently observed contrasting object.
    • 6. Distinction bias: the tendency to view two options as more dissimilar when viewing them together than when viewing them separately.
    • 7. Excessive temporal discounting/ hyperbolic discounting : the tendency for people to have excessively stronger preferences for immediate gains relative to future gains.
    • 8. Exposure effect: the tendency for people to like things simply because they are familiar with them.
    • 9. Framing effects: the tendency to draw different conclusions based on how data are presented.
    • Anchoring
    • Mental accounting (current income, current wealth, future income – different marginal propensity to consume, eg: extra 1, spend 0.65)
    • 10. Scarcity value: When we perceive something to be scarce it has a greater value in our eyes. Conversely, when we perceive it to be plentiful its perceived value falls. When valuing things, circumstantial factors tend to crowd out factors that point towards absolute value.
    • 11. Social norms: the rules that a group uses for appropriate and inappropriate values, beliefs, attitudes and behaviors. These rules may be explicit or implicit. Failure to follow the rules can result in severe punishments, including exclusion from the group.
    In all these ways (and more) This bit looks like an exam. It’s not.
  • 1. 2. 3. 4. 5. The Expected The Unexpected The Contradictions The Conversations The Swerves We categorise in 5 ways (Over ¼ of way through already…)
  • 1.
    • The Expected
    • Simply ask
    • Ask using the right words
    • Ask using the right images
    • Ask at the right time
    • Ask with the right incentive
    • The Unexpected
    • The Contradictions
    • The Swerves
    And nest each category 2. 3. 5. (Quick example next)
    • Between 2000 –’ 06, US hybrid sales increased from 3,000 to 250,000
    • Which incentive is the most popular?
    1. Gas prices aren’t the only reason for more hybrid sales | Nudge blog Income tax credit: $2k Sales tax incentive: $1k (Immediate) (Delayed) It’s only 3 slides short… e. Ask with the right incentive
    • Between 2000 –’ 06, US hybrid sales increased from 3,000 to 250,000
    • 7x more popular
    1. Gas prices aren’t the only reason for more hybrid sales | Nudge blog Sales tax incentive Income tax credit: $2k Sales tax incentive Sales tax incentive Sales tax incentive Sales tax incentive Sales tax incentive Sales tax incentive: $1k e. Ask with the right incentive It’s only 3 slides short… (Immediate) (Delayed)
    • Between 2000 –’ 06, US hybrid sales increased from 3,000 to 250,000
    • “ Sales tax incentives, which are immediate and easy to obtain, have a much greater effect on the demand for hybrid vehicles than income tax incentives…”
    • Kelly Sims Gallagher and Erich Muehlegger, of Harvard’s Kennedy School,
    1. Gas prices aren’t the only reason for more hybrid sales | Nudge blog Sales tax incentive Income tax credit: $2k Sales tax incentive Sales tax incentive Sales tax incentive Sales tax incentive Sales tax incentive Sales tax incentive: $1k Done! Next… e. Ask with the right incentive (Immediate) (Delayed)
  • 1. 2. 3. 4. 5. The Expected The Unexpected The Contradictions The Conversations The Swerves And nest each category That’s where we were
  • 1. 2.
    • The Expected
    • The Unexpected
    • Ask in the right order
    • Ask (but have a default option)
    • Ask for a commitment – in the future
    • Ask kinetically
    • The Contradictions
    • The Conversations
    • The Swerves
    And nest each category 3. 4. . This is where we’re going (we’re well over ½ way)
    • A conference experimented with their default menu options : one year they offered meat as default, the next year vegetarian
    2. When Behavioral Economics Meets Climate Change, Guess What's Coming for Dinner? | Marc Gunther | climatebiz.com Vegetarian Meat … the final 3-slide example b. Ask (but have a default option)
    • A conference experimented with their default menu options : one year they offered meat as default, the next year vegetarian
    2. When Behavioral Economics Meets Climate Change, Guess What's Coming for Dinner? | Marc Gunther | climatebiz.com 83 % 17 % Vegetarian = option Meat = default 80% of the slides done already b. Ask (but have a default option)
    • A conference experimented with their default menu options : one year they offered meat as default, the next year vegetarian
    2. When Behavioral Economics Meets Climate Change, Guess What's Coming for Dinner? | Marc Gunther | climatebiz.com 20 % 80 % Vegetarian = default Meat = option b. Ask (but have a default option) Done! Next…
  • “ Just as no building lacks an architecture, so no choice lacks a context.” Dr. Robert Cialdini, ex-Regents' Professor of Psychology and Marketing Arizona State University Why/how/what? Learn-y bit How and when information is delivered is as important (if not more so) than the information itself
  • These two love it Cameron , highlights OPOWER at TED2010 President Obama speaks at OPOWER, Arlington “ I want companies like OPOWER… all across America. It’s good for consumers. It’s good for our economy. It’s good for our environment.” “… Behavioural Economics can transform people's behaviour in a way that all the bullying and badgering from a Government cannot possibly achieve.” (see them on youtube) ‘ Power’ bit
  • “ Thanks are due for so many different reasons… You made us look good. I could go on.” Christian Dawson, Strategy Director Proof-y bit (& penultimate slide) “ Environmentalists struggle to craft messages to anyone except environmentalists (he [Oliver] showed us how). ” Sustainable Future workshop, 10/ 2009 “ Again very impressive work. ” Justin Hall, Discovery Channel Environmental Explorer “ [Learnt] New techniques for mainstreaming” Mainstreaming Sustainable Consumption Workshop, April 2010 “ I love…Creating Sustainable Behavior… So smart and well done.” John Rooks, President, The SOAP Group (Sustainable Organization Advocacy Partners), Portland, USA “… what a real agency of tomorrow… should look like...” David Shearer, Senior Vice President and Executive Creative Director of MRM West USA This lot love us
  • We’d love to speak to you 0844 357 9072 [email_address] The End