Sunday, July 29, 2012

Peer into Pressure from Obligation

Peer pressure boosts sales and encourages people to be socially responsible. The effects depend on you making the consumer’s behavior visible, or at least giving the impression of visibility.
     Although you can influence shopper behavior in the short-term by arousing shame, you’ll have better long-term results by aiming for a sense of obligation.
     Researchers at Arizona State University collaborated with the Holiday Inn in Tempe to place cards including recycling appeals in the 190 lodging rooms. There were three versions of the card:
  • “Help save the environment. You can show your respect for nature and help save the environment by reusing your towels during your stay.” 
  • “Partner with us to help save the environment. In exchange for your participation in this program, we at the hotel will donate a percentage of the energy savings to a nonprofit environmental protection organization. The environment deserves our combined efforts. You can join us by reusing your towels during your stay.” 
  • “Join your fellow guests in helping to save the environment. Almost 75% of guests who are asked to participate in our new resource savings program do help by using their towels more than once. You can join your fellow guests to help save the environment by reusing your towels during your stay.” 
     About one third of hotel guests receiving the first or second version hung towels on the rack, to indicate they were willing to reuse the towels. Of those receiving the third version, about half did so. Apparent visibility increased compliance.
     The third message set a social norm with its “almost 75%.” Was guilt behind the willingness to recycle towels and save a little energy for the environment as well as a little money for the Tempe Holiday Inn? To look at that issue, the researchers tried out a fourth version of the card:
  • “We're doing our part for the environment. Can we count on you? Because we are committed to preserving the environment, we have made a financial contribution to a nonprofit environmental protection organization on behalf of the hotel and its guests. If you would like to help us in recovering the expense, while conserving natural resources, please reuse your towels during your stay.” 
     The proportion of guests willing to reuse the towels was about the same as with the “almost 75%” card. It appears that what was at work could better be viewed as obligation than as guilt.

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

Click below for more: 
Prefer Obligation to Shame 
Bundle Utility, Discount Hedonism

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