Monday, February 13, 2017

Opt for Full Disclosure of Opt-Out Defaults

A pre-conference announcement sent to about 300 registrants from over 60 federal agencies described the default lunch option: Bean sprout and soy cheese sandwich on gluten-free soda bread. The recipients of the announcement were invited to opt out and choose an alternative in advance of the conference. But only 20% did so. How surprised many of the other 80% were when their inaction was discussed at the keynote address, the theme of which was information disclosure to consumers!
     The pair, based at University of Chicago and ideas42, who conducted this little demonstration project went on to point out to the conference attendees that few consumers thoroughly read any terms and conditions given by sellers. That reality opens possibilities for merchants to swindle, and even endanger, their customers. Consumer advocates argue for assertive disclosure to shoppers of any opportunities to opt out of defaults.
     Would doing this encourage opt-outs? Not so much, say researchers at Northeastern University, Indiana University, and University of Cincinnati. They conducted a series of experiments involving opt-out configurations for food choices, financial incentives, energy usage, and privacy permissions. Rejection rates for the default option were about the same whether or not the consumers were told the purpose of the opt-out structure was to encourage them to accept the default. As long as consumers feel in control, they usually prefer simplicity, and accepting the default keeps things simpler.
     But the assertive disclosure did make a positive difference in another way: Those given it developed higher trust in the seller and were more likely to say they’d give the seller future business.
     This argues for using defaults and making full disclosure to consumers that you have opt-outs. Further, in choosing what defaults to use, be aware how your choice shapes behavior. For instance, this applies to charitable contributions. In a field study based at France's ESSEC Business School, a request for a small amount increased the willingness of the person to make a donation, and the larger the greatest amount in the same request, the higher the eventual donation.
     Researchers at State University of New York-Buffalo and University of Chicago obtained similar results, plus finding that because of these countervailing effects, a high default amount with opt-out doesn’t reduce net funds raised. The high default will actually increase the average donation amount over a low default if full disclosure is paired with an effective argument for donating at all.

For your profitability: Sell Well: What Really Moves Your Shoppers

Click below for more: 
Disclose Ethically
Simplify the Shopping
Tip Off Shoppers Before Manipulation
Hand Off Intended Hands-Off Items
Enhance Variety in Nonprofit Donations

No comments:

Post a Comment