1. Using Behavioural Theory to Promote Sustainable Living 7th June 2010 Oliver Payne,Founder, CEO, The Hunting Dynasty ,

2. A sustainable future requires people to change their behaviour | How do you create sustainable behaviour?

3. change in purchase behaviour | How do you create sustainable behaviour?

4. change in purchase behaviour change in lifestyle behaviour | How do you create sustainable behaviour?

5. change in purchase behaviour change in lifestyle behaviour (or a combination of the two) | How do you create sustainable behaviour?

6. Familiar to comms industry • Mostly switching purchase habits • AIDA standard model • Not great for side/down-shifting change in purchase behaviour change in lifestyle behaviour | How do you create sustainable behaviour?

7. change in purchase behaviour change in lifestyle behaviour | How do you create sustainable behaviour?

8. Less familiar to comms industry • Asking people to break with habitual patterns of behaviour • AIDA seems deficient (knowledge and awareness rarely enough to illicit action) *door knob • Not necessarily aspirational (injunctions ‘Don’t/Please/After/Stop’) change in purchase behaviour change in lifestyle behaviour | How do you create sustainable behaviour?

9. change in purchase behaviour change in lifestyle behaviour | How do you create sustainable behaviour?

10. change in purchase behaviour change in lifestyle behaviour There’s one thing we all have in common that spans purchase & lifestyle behaviour (or a combination of both) | How do you create sustainable behaviour?

11. “…despite being generally capable and smart, we are highly context dependent.” Jack Fuller, Australian research group Per Capita Research change in purchase behaviour change in lifestyle behaviour (or a combination of both) | How do you create sustainable behaviour?

12. Meaning? We are not purely rational beings Neither are we irrational – context dependency is measureable change in purchase behaviour change in lifestyle behaviour (or a combination of both) | How do you create sustainable behaviour?

13. 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. Meaning? We are not purely rational beings Neither are we irrational – context dependency is measureable change in purchase behaviour change in lifestyle behaviour (or a combination of both) | How do you create sustainable behaviour?

14. How do you use these universal quirks to create sustainable behaviour? change in purchase behaviour change in lifestyle behaviour (or a combination of both) | How do you create sustainable behaviour?

15. How do you use these universal quirks to create sustainable behaviour? change in purchase behaviour change in lifestyle behaviour In 19 ways… (or a combination of both) | How do you create sustainable behaviour?

17. 1. Simply ask 2. Ask using the right words 4. Ask using the right authority 3. Ask using the right images

18. 1. Simply ask

19. 1. Simply ask What can I get you sir? Whilst queuing for food 40% of students took a serving of fruit Yale University researcher Marlene Schwartz in a 2007 study

20. 1. Simply ask What can I get you sir? Whilst queuing for food 40% of students took a serving of fruit When asked if they would ‘like fruit or fruit juice’ 70% of students took a serving of fruit Yale University researcher Marlene Schwartz in a 2007 study

21. 1. Simply ask Exposure effect What can I get you sir? Whilst queuing for food 40% of students took a serving of fruit When asked if they would ‘like fruit or fruit juice’ 70% of students took a serving of fruit Yale University researcher Marlene Schwartz in a 2007 study

22. 2. Ask using the right words

23. 2. Ask using the right words ¼ Petrified Thieves People steal bits of wood from Arizona’s Petrified Forest National Park. Many past visitors have removed petrified wood from the Park, changing the natural state of the Petrified Forest Please don’t remove the petrified wood from the Park, in order to preserve the natural state of the Petrified Forest [nothing] The signs above were tested to stop the theft: Some were more successful than others… Yes! 50 secrets from the science of persuasion | Goldstein, Martin, Cialdini | 2007 | pp20

24. 2. Ask using the right words ¼ Petrified Thieves People steal bits of wood from Arizona’s Petrified Forest National Park. Many past visitors have removed petrified wood from the Park, changing the natural state of the Petrified Forest Please don’t remove the petrified wood from the Park, in order to preserve the natural state of the Petrified Forest [nothing] 8% theft Yes! 50 secrets from the science of persuasion | Goldstein, Martin, Cialdini | 2007 | pp20

25. 2. Ask using the right words ¼ Petrified Thieves People steal bits of wood from Arizona’s Petrified Forest National Park. Many past visitors have removed petrified wood from the Park, changing the natural state of the Petrified Forest Please don’t remove the petrified wood from the Park, in order to preserve the natural state of the Petrified Forest [nothing] 8% theft 3% theft Yes! 50 secrets from the science of persuasion | Goldstein, Martin, Cialdini | 2007 | pp20

26. 2. Ask using the right words ¼ Petrified Thieves People steal bits of wood from Arizona’s Petrified Forest National Park. Many past visitors have removed petrified wood from the Park, changing the natural state of the Petrified Forest Please don’t remove the petrified wood from the Park, in order to preserve the natural state of the Petrified Forest [nothing] 8% theft 1.7% theft 3% theft Yes! 50 secrets from the science of persuasion | Goldstein, Martin, Cialdini | 2007 | pp20

27. 2. Ask using the right words ¼ Framing effect Social norms Petrified Thieves People steal bits of wood from Arizona’s Petrified Forest National Park. Many past visitors have removed petrified wood from the Park, changing the natural state of the Petrified Forest Please don’t remove the petrified wood from the Park, in order to preserve the natural state of the Petrified Forest [nothing] 8% theft 1.7% theft 3% theft “…a message that focuses recipients on the injunctive norm will be superior to messages that focus recipients on the descriptive norm.” (Cialdini et al., 2003) Yes! 50 secrets from the science of persuasion | Goldstein, Martin, Cialdini | 2007 | pp20

28. 3. Ask using the right images

29. 3. Ask using the right images Chief Iron Eyes Cody "People Start Pollution. People can stop it." YouTube

31. 2 Clio awardsCrafting Normative Messages to Protect the Environment Robert B. Cialdini, Department of Psychology, Arizona State University

32. 3. Ask using the right images Social norms Chief Iron Eyes Cody “…small but conceptually meaningful modification of… changing the perceived descriptive norm regarding littering.” However - reinforcing damaging message that many people do litter Crafting Normative Messages to Protect the Environment Robert B. Cialdini, Department of Psychology, Arizona State University

33. 4. Ask using the right authority

34. 4. Ask using the right authority Insulating expectation Sutton council worked with B&Q to made 6,000 rolls of loft insulation available at massively reduced prices “[A] very simple step to make their homes more carbon efficient and to save on their bills” Daniel Ratchford -Strategic Director, Environment & Leisure, Sutton Council

35. 4. Ask using the right authority Authority effect Social norms Insulating expectation Sutton council worked with B&Q to made 6,000 rolls of loft insulation available at massively reduced prices “[A] very simple step to make their homes more carbon efficient and to save on their bills” Daniel Ratchford -Strategic Director, Environment & Leisure, Sutton Council

36. 1. Simply ask 2. Ask using the right words 4. Ask using the right authority 3. Ask using the right images

37. 5. Ask using the right fakeauthority 6. Ask in the right order 7. Ask at the right time 8. Ask with the right incentive

38. 5. Ask using the right fakeauthority

39. 5. Ask using the right fake authority b. Expend very little energy Can these fake approval and disapproval emoticons change behaviour? Making buildings more efficient: It helps to understand human behavior | Grist.org

40. 5. Ask using the right fake authority Expend very little energy Two groups given information about their neighbourhood energy use Group A Group B 10 mpg 25 mpg Straight info and smiley/sad face Straight info about energy use Making buildings more efficient: It helps to understand human behavior | Grist.org

41. 5. Ask using the right fake authority Expend very little energy Two groups given information about their neighbourhood energy use Group A Group B 10 mpg 25 mpg High users reduced consumption Low users increased consumption High users reduced consumption Low users consistent consumption Making buildings more efficient: It helps to understand human behavior | Grist.org

42. 5. Ask using the right fake authority Loss aversion Social norms Expend very little energy Two groups given information about their neighbourhood energy use Group A Group B 10 mpg 25 mpg High users reduced consumption Low users increased consumption High users reduced consumption Low users consistent consumption 40% more energy saved Making buildings more efficient: It helps to understand human behavior | Grist.org

43. Opower Smart measuring tech Take a fee for collating and presenting supply data to existing utility companies’ customers Making buildings more efficient: It helps to understand human behavior | Grist.org

44. Popular interest CEO's live interview on Fox Business Finalist for Discovery Channel's 2010 Edison Awards Featured in USA Today In Washington Post as "best example of climate psychology in action" Making buildings more efficient: It helps to understand human behavior | Grist.org

45. Powerful interest President Obama speaks at OPOWER, Arlington Cameron, highlights OPOWER at TED2010 “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.” “…BE can transform people's behaviour in a way that all the bullying and badgering from a Government cannot possibly achieve.” Making buildings more efficient: It helps to understand human behavior | Grist.org

46. 6. Ask in the right order

47. 6. Ask in the right order The mpg illusion Which trade-in saves the most fuel? Trade-in A Trade-in B 10 mpg 25 mpg 50 mpg 12.5 mpg The MPG Illusion | Professors Richard Larrick, Jack Soll | Duke University

48. 6. Ask in the right order The mpg illusion Now let’s show Miles-per-gallon as Gallons-per-(hundred)mile. Same answer? Trade-in A Trade-in B 10 mpg = 10 GPhM 25 mpg = 4 GPhM 50 mpg = 2 GPhM 12.5 mpg = 8 GPhM The MPG Illusion | Professors Richard Larrick, Jack Soll | Duke University

49. 6. Ask in the right order The mpg illusion Now let’s show Miles-per-gallon as Gallons-per-(hundred)mile. Same answer? Trade-in A Trade-in B 10 mpg = 10 GPhM 25 mpg = 4 GPhM 50 mpg = 2 GPhM 12.5 mpg = 8 GPhM MPG makes you undervalue improvements in inefficient cars MPG makes you overvalue improvements in efficient cars The MPG Illusion | Professors Richard Larrick, Jack Soll | Duke University

50. 6. Ask in the right order Framing effect The mpg illusion 10 mpg = 10 GPhM11 mpg = 9 GPhM 12.5 mpg = 8 GPhM 14 mpg = 7 GPhM 16.5 mpg = 6 GPhM 20 mpg = 5 GPhM 25 mpg = 4 GPhM 33 mpg = 3 GPhM50 mpg = 2 GPhM 100 mpg = 1 GPhM “The New York Senate Environmental Conservation Committee has passed a new fuel efficiency bill… vehicle manufacturers [must] list "gallons per 1,000 miles….” Rick Larrick, The MPG Illusion, Feb 2010 The MPG Illusion | Professors Richard Larrick, Jack Soll | Duke University

51. 5. Ask using the right fakeauthority 6. Ask in the right order 7. Ask at the right time 8. Ask with the right incentive

52. 10. Take away options 9. Add options 12. Ask a different question 11. Ask (but have a default option)

53. 11. Ask (but have a default option)

54. 11. Ask, but have a default option Catering for a conference A conference experimented with their default menu options: one year they offered meat as default, the next year vegetarian Vegetarian Meat When Behavioral Economics Meets Climate Change, Guess What's Coming for Dinner? | Marc Gunther | climatebiz.com

55. 11. Ask, but have a default option Catering for a conference A conference experimented with their default menu options: one year they offered meat as default, the next year vegetarian 83% 17% Vegetarian = option Meat = default When Behavioral Economics Meets Climate Change, Guess What's Coming for Dinner? | Marc Gunther | climatebiz.com

56. 11. Ask, but have a default option Framing effect Catering for a conference A conference experimented with their default menu options: one year they offered meat as default, the next year vegetarian 80% 20% Vegetarian = default Meat = option When Behavioral Economics Meets Climate Change, Guess What's Coming for Dinner? | Marc Gunther | climatebiz.com

57. 12. Ask a different question

58. 12. Ask a completely different question Few people use stairs when there’s an escalator on offer. How do you create the desire to use the stairs? ? Funtheory.com | Piano Staircase

59. 12. Ask a completely different question Few people use stairs when there’s an escalator on offer. Piano stairs increased stair use by 66% Funtheory.com | Piano Staircase

60. 12. Ask a completely different question Do you want to take the stairs lose weight? These stairs in the Goodnight Hostel in Lisbon appeal to the calorie conscious. FREAK Shots: Nudging the Calorie Counters | Freakonomics Blog | New York Times

61. 12. Ask a completely different question Framing effect Do you want to…

62. 10. Take away options 9. Add options 12. Ask a different question 11. Ask (but have a default option)

63. 14. Don’t ask. (Tell.) 13. Let the feedback ask the question 16. Ask nothing – other than to go public 15. Ask nothing, except measurement

64. 13. Let the feedback ask the question

65. 13. Let the feedback ask the question ¾ A ball of energy Attempts by Southern California Edison to notify people of their energy use with e-mails and text messages did no good. Chicago Tribune | A gentle prod to go green

67. It glows green when their use is modest.Chicago Tribune | A gentle prod to go green

68. 13. Let the feedback ask the question ¾ Social norms Loss aversion A ball of energy They tried an Ambient Orb – a personal energy meter in the shape of a little ball: Within weeks users of the orb reduced their energy consumption during peak times by 40% Chicago Tribune | A gentle prod to go green

69. 14. Don’t ask. (Tell.)

70. 14. Don’t ask. (Tell.) Tax doesn’t have to be taxing (no, really) In Australia, tax-payers were informed that that normal practice was honesty in tax returns HEADS, YOU DIE: Bad decisions, choice architecture, and how to mitigate predictable irrationality | Jack Fuller | Per Capita research

71. 14. Don’t ask. (Tell.) Social norms Tax doesn’t have to be taxing (no, really) In Australia, tax-payers were informed that that normal practice was honesty in tax returns Deductions plunged by 47% (over $800 million Aus$ extra revenue) HEADS, YOU DIE: Bad decisions, choice architecture, and how to mitigate predictable irrationality | Jack Fuller | Per Capita research

72. 14. Don’t ask. (Tell.) 13. Let the feedback ask the question 16. Ask nothing – other than to go public 15. Ask nothing, except measurement

73. 18. Ask kinetically 17. Ask for a commitment – in the future 19. Make the question irrelevant

74. 18. Ask kinetically

75. 18. Ask kinetically Lights. Out. Communicating ‘turn off the lights’ in a hotel is tricky – the guest derives no personal benefit What do you do? ? A gentle prod to go green: Turning wishes into actions a matter of showing people the way | Chicago Tribune | Thaler, Sunstein | 2008

76. 18. Ask kinetically Framing effect Lights. Out. Link to an action that is in the interests of the guest: “When they leave the room and take their key [from the slot], the lights and AC are automatically turned off.” Chicago Tribune A gentle prod to go green: Turning wishes into actions a matter of showing people the way | Chicago Tribune | Thaler, Sunstein | 2008

77. 19. Make the question irrelevant

78. 19. Make the question irrelevant As clear as day How do you create energy efficiency in private homes?

79. 19. Make the question irrelevant Social norms As clear as day How do you create energy efficiency in private homes? In 1916 Germany was the first European nation to move the clocks forwards and backwards as a way to conserve coal during WWI We all followed suit Daylight savings time | Nudge pp 51

81. 3 most common non-rational behaviours Framing Drawing different conclusions based on how data are presented (Petrified thieves, Add options, Take away, MPG illusion, Stairs) Loss Aversion The pain of loss twice as bad as the pleasure of gain (Ambient orb, Neighbourhood electricity, Prius) Social norms No one wants to be the weirdo (Opower, Ambient orb, B&Q, Iron Eyes Cody, LA food) Overt or Covert

82. “…despite being generally capable and smart, we are highly context dependent.” Jack Fuller, Australian research group Per Capita Research change in purchase behaviour change in lifestyle behaviour (or a combination of both) | How do you create sustainable behaviour?

83. Create: change in purchase behaviour change in lifestyle behaviour (or a combination of the two) | How do you create sustainable behaviour?

84. Thank you