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

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

Thursday 29th November 2012

This event is kindly supported by Nominet Trust
#nudgeorcompel

Welcome

Baroness Sally Greengross
International Longevity Centre - UK

#nudgeorcompel

Jo Connell
Consumer Communications Panel

#nudgeorcompel

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

David Sinclar
International Longevity Centre - UK

#nudgeorcompel

Nudge or Compel?
Can behavioural economics
tackle the digital exclusion of
older people?
David Sinclair, International Longevity
Centre – 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.

Summary
 10 years of digital inclusion
policy.

 Why aren't older people online
(access, skills, behaviour).

 We haven't 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/

Looking back to 2003

Instructions, packaging, user
experience, hardware, software gave
a relatively terrible user experience
for many.
Accessibility and the User
Experience has vastly improved http://www.adsavvy.org/amazoncoms-new-frustration-free-packaging-is-eco-and-
customer-friendly/
(hardware, software, ease of
purchase, setup).

There are millions of fewer people
not online.
But there are millions more (over 7.5
million) still offline.


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 to
justify expenditure.
Public sector spending on adult learning is likely to be squeezed
further due to spending cuts.
By 2014/15 the education budget will be reduce by 13%. Spending
on schools will fall by 1%. But we will see 20% cuts to Further
Education and sixth-form colleges, and 40% to Higher Education
institutions.


And since 2003

Technology has facilitated better
back office functions which has
made service delivery better for
all.
But more private and public
services are available
exclusively online.

The issue continues to be no-
ones and everyone's
responsibility.
Where are the Ministers? An
assumption remains that the
http://www.glastonburyfestivals.co.uk
market will solve this problem.


But much public discourse remains the same

“This problem will go away. The
next generation will be fine”.
Last quarter ONS Stats showed
that progress for 65+s is two
thirds slower than for under 65s
(4.36% improvement vs.
14.22%).

Anecdotal policy making
dominates debate

Offline groups are still more likely
to be older, have disabilities or
be from lower socio-economic
groups.


From universal access to high speed
broadband
Delivering Digital Inclusion (2008): Recognised behavioural
issues and led to the creation of Race Online (but little else?)

Digital Britain (2009) saw digital inclusion move to BIS and
DCMS.

Digital Britain conflated the issues of skills development and
motivation. No initiatives were proposed in either regard, although
the work of Race Online 2012 was referred to as a solution. Later
that year actions legislative responsibility moved to the Treasury
recognising economic imperative in relation to high speed
broadband.

Britain’s Superfast Broadband Future (2010) abandons the UK
Government‟s universal ambitions?


A move towards “digital by default”

„We need to embrace new
ways of delivering
services … We need to be
digital by default.
Services that could be
delivered online should be
delivered only online …
Digital by default will
become a reality, not just
a buzz phrase‟. Frances
Maude MP http://www.ieg4.com/

Universal Benefit – Heavy
reliance of online access.


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)


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.


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.


So what do we know about the relationship
between age, internet use and behavioural
traits?
 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.


But firstly, take care with Age Assumptions


A significant association between internet use
and perceived control in one‟s life
Uses the internet
Yes No Total

Strongly agree 551 (39.6%) 840 (60.4%) 1391
Moderately agree 1515 (51.6%) 1420 (48.4%) 2935
Slightly agree 1545 (59.4%) 1058 (40.6%) 2603
Slightly disagree 636 (68.2%) 296 (31.8%) 932
Moderately 593 (77.3%) 174 (22.7%) 767
disagree
Strongly disagree 268 (71.8%) 105 (28.2%) 373
Chi-Sq= 422.074, df = 5, P=<0.000
Table 1. Feels what happens in life is often determined by factors beyond control


A strong association between the measure of
internet use and measures of loneliness
Uses the internet

Yes No Total

Hardly ever or 3764 (60.2%) 2489 (39.8%) 6253
never
Some of the time 1091(51.3%) 1037 (48.7%) 2128

Often 272 (37.4%) 456 (62.6%) 728

Chi-Sq= 166.556, df = 2, P=<0.000
Table 5. How often respondent feels lonely


People who reported not using the internet were
more likely to say that they „often‟ felt isolated

Uses the internet

Yes No Total

Hardly ever or 3683 (59.5%) 2503 (40.5%) 6186
never
Some of the time 1242 (52.6%) 1118 (47.4%) 2360

Often 198 (37.4%) 331 (62.6%) 529

Chi-Sq= 115.871, df = 2, P=<0.000
Table 6. How often respondent feels isolated from others


We found a weak association between the
measure of internet use and anxiety

Uses the internet

Yes No Total

Experiences anxiety 194 (44.5%) 242 436
(55.5%)
Doesn‟t experience 216 (62.6%) 129 345
anxiety (37.4%)

Chi-Sq= 4.008, df = 1, P=0.045
Table 4. Respondent reports anxiety


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.


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.


Where can we best nudge older people online?

Social interactions
Where older people use the internet, social interaction is a key
motivator (keeping in touch).

Information seeking behaviour
When they are online older people are mostly likely to use the
internet to look for all types of information.

Using the concepts of behavioural economics: starting where
people are
Older people should not be expected to radically transform their
way of life to become digitally included. Going online must be
made relevant and manageable within, and complementary to,
existing patterns of behaviour.


What do we mean by nudge?

http://youtu.be/2lXh2n0aPyw


Status quo bias
People tend to be conservative in their
personal decision-making, even where
there is little or no evidence that the
status quo benefits them more than
some 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


Addressing the status quo bias
Regret Aversion: service providers should offer the opportunity for
people to „go back to paper‟ if they are unsatisfied with their digital
experience.

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.


Hyperbolic discounting

People 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 only
available in the future (for instance, most people would rather be
given £100 today than £110 next week).

http://litreactor.com/columns/5-ways-your-brain-sabotages-your-writing-and-what-to-do-about-it


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.


Anchoring and availability heuristic

Anchoring means that people tend to decide things in accordance
with things they already know or have experienced.

http://www.ajkesslerblog.com/children-master-behavioral-economists/


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.

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


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/


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/


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/


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.


Should we go further? Compulsion?

“By switching services, like what we
have done with analogue TV, there is a
real opportunity to carry people on [to
the internet],... I think that shutting down
services would be the best way of
carrying through the most amount of
people, as long as it is carried through
with training”

“the acid test for Directgov is whether it
can empower, and make life simpler for,
citizens and at the same time allow
government to turn other things off”

Martha Lane Fox

Many thanks

David Sinclair

Assistant Director, Policy and
Communications

International Longevity Centre

David.sinclair@ilcuk.org.uk

02073400440

Twitter: @ilcuk and @sinclairda


Annika Small
Nominet Trust

#nudgeorcompel

Marie Kamara
Open Age

#nudgeorcompel

Panel
Dinah Greek
Computeractive

David Mortimer
Age UK

#nudgeorcompel

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?
#nudgeorcompel

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

Thursday 29th November 2012

#nudgeorcompel

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

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

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

Similar to Nudge or Compel? Can behavioural economics tackle the digital exclusion of older people? (20)

More from ILC- UK

More from ILC- UK (20)

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