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Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected] Triggers for Free Will January 20, 2014 Jason Riis Visiting Assistant Professor of Marketing Wharton University of Pennsylvania 1

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Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Triggers for Free Will January 20, 2014

Jason Riis

Visiting Assistant Professor of Marketing Wharton

University of Pennsylvania

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Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Thinking Fast and Slow

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Fast Brain and Slow Brain

Slow (reflective) system

FREE WILL

Fast (automatic) system

MOST DECISIONS

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

What is Free Will?

4

Free Will … = Slow System = Self Control = Long term thinking

This system can be triggered!

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Free Will Comes and Goes

• “The Fresh Start Effect: Temporal Landmarks Motivate Aspirational Behavior” • Forthcoming, Management Science • With Hengchen Dai and Katy Milkman

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Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Free Will Comes and Goes: Google searches on “Diet”

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Monday 1st of Month 1st of Year after Federal holiday

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Free Will Comes and Goes: Stickk.com

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Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Free Will Comes and Goes: Stickk.com

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0

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Monday 1st of Month 1st of Year after Federal holiday

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Free Will Comes and Goes: Gym Attendance on Campus

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Monday 1st of Month 1st of Year Semester School breaks Birthdays

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

How can free will be triggered?

Traditional tools • Price (taxes / subsidies) • Information (raw)

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Triggers self control

By-passes self control

?

“Strong Nudge” … Directive … but not too directive

1) Invitation to downsize 2) Traffic light labels 3) Feedback 4) Incentives 5) Temptation bundling

“Weak Nudge” • Change default • Change salience

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

5 Triggers: 1) Invitation to downsize 2) Traffic light labels 3) Feedback 4) Incentives 5) Temptation bundling

How can we trigger free will?

11

Triggers self control

When will they work best: • When language is not too strong • When consumers do want to eat better • When choice is preserved (so people can

still eat stuff they love)

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Trigger 1: Invitation to Downsize

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Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Pilot study: Attitudes to portions

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How big are the portions at the restaurants you typically visit? (N=142)

Usually too small

4%

Usually about right

59%

Usually too large

37%

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Pilot study: Attitudes to portions

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At the restaurants you go to, how often do you specifically request a smaller portion than is offered on the menu? (N=81)

Almost never

89%

Often

10%

Most of the time

1%

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Pilot study: Attitudes to portions

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If the restaurants you go to started offering optional “downsized” portions at a very small discount, how often would you accept? (N=61)

Almost never

38%

Often

51%

Most of the time

11%

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Field Experiment at Panda Express: Questions

• Do customers spontaneously request smaller portions?

• Do customers accept strong nudges to take smaller portions for no discount or for a nominal discount? (Can free will be triggered?)

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Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Ordering a meal at Panda Express

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Fried rice

Steamed rice

Chow mein

Mixed veggies

Orange chicken

Beijing beef

BBQ pork

Mushrm chicken

Broccoli beef

Country tofu

Step 2 Order side dish

Step 3 Order entrée(s)

Step 4 Pay

$

Step 1 Order meal size

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

How the nudge worked

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Fried rice

Steamed rice

Chow mein

Mixed veggies

Orange chicken

Beijing beef

BBQ pork

Mushrm chicken

Broccoli beef

Country tofu

Step 2 Order side dish

Step 3 Order entrée(s)

Step 4 Pay

$

Step 1 Order meal size

“Would you like to cut more than 200 calories from your meal by taking a half portion of your side dish?”

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Study 1 Design

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Sun Mon Tue Wed Thu Fri Sat

BASELINE BASELINE NUDGE no discount

NUDGE no discount

BASELINE BASELINE

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Study 1 Design

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Sun Mon Tue Wed Thu Fri Sat

BASELINE BASELINE NUDGE no discount

NUDGE no discount

BASELINE BASELINE

NUDGE 25¢

discount

NUDGE 25¢

discount

“Would you like to cut more than 200 calories from your meal (and save 25¢) by taking a half portion of your side dish?”

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Proportion taking half sized side dish portion

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Sun Mon Tue Wed Thu Fri Sat

BASELINE BASELINE NUDGE no discount

NUDGE no discount

BASELINE BASELINE

NUDGE 25¢

discount

NUDGE 25¢

discount

1% 35%

4% 32%

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Proportion taking half sized side dish portion

22

Sun Mon Tue Wed Thu Fri Sat

NUDGE no discount

NUDGE no discount

NUDGE 25¢

discount

NUDGE 25¢

discount

35%

32%

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Calories per customer (Nudge condition only), n=164

464505

255

538

0

100

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600

Side Dish Entrees

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Nudge Rejecters Nudge

Rejecters Nudge

Accepters

Nudge Accepters

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Calories per customer (Nudge condition only), n=164

464505

255

538

0

100

200

300

400

500

600

Side Dish Entrees

24

Nudge Rejecters Nudge

Rejecters Nudge

Accepters

Nudge Accepters

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Calories per customer, N=283

480530

396

516

0

100

200

300

400

500

600

Side Dish Entrees

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Baseline Baseline

Nudge Nudge

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Calories per customer, N=283

480530

396

516

0

100

200

300

400

500

600

Side Dish Entrees

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Baseline Baseline

Nudge Nudge

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

“Strong Nudge” … Directive … but not too directive

1) Invitation to downsize 2) Traffic light labels 3) Feedback 4) Incentives 5) Temptation bundling

How can free will be triggered?

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Triggers self control

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

“Strong Nudge” … Directive … but not too directive

1) Invitation to downsize 2) Traffic light labels 3) Feedback 4) Incentives 5) Temptation bundling

Trigger 2: Traffic Light Labels

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“Consume often” “Consume less often” “There’s a better choice in green or yellow”

Triggers self control

AJPH - March, 2012

Food choices of minority and low-income employees: A cafeteria intervention

AJPM - September, 2012

AJPM - February, 2014

Traffic-light labels and choice architecture: Long-term effectiveness in promoting healthy food choices

Co-authors from MGH: • Anne Thorndike • Lillian Sonnenberg • Susan Barraclough • Doug Levy

A 2-Phase Labeling and choice architecture intervention to improve healthy food and beverage choice

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Setting: Main cafeteria, Massachusetts General Hospital (MGH)

• 6,000 visitors / day • $30,000 revenue / day

• 2 years of cash register data.

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Phase 1: Strong Nudge

• Labeling based on USDA food pyramid guidelines

“Consume often” “Consume less often” “There’s a better choice in green or yellow”

How the trigger works:

• Regular reminders you are choosing the unhealthy (red) item • … “Why am I doing this?”

Trigger 2: Traffic Light Labels

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

PHASE 1: LABELS

PHASE 0: BASELINE

Study Design and Timeline

December 1, 2009

March 1, 2010

Sales of all cafeteria items

05

1015202530354045

Red Yellow Green

% o

f tot

al c

afet

eria

sale

s

Sales of cold beverages

0

10

20

30

40

50

60

Redbeverages

Yellowbeverages

Greenbeverages

% o

f tot

al b

ever

age

sale

s

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

How can free will be triggered?

35

Triggers self control

“Strong Nudge” … Directive … but not too directive

1) Invitation to downsize 2) Traffic light labels 3) Feedback 4) Incentives 5) Temptation bundling

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

“Strong Nudge” … Directive … but not too directive

1) Invitation to downsize 2) Traffic light labels 3) Feedback 4) Incentives 5) Temptation bundling

Triggers 3 & 4: Feedback and Incentives

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Triggers self control

Feedback: You purchased 30% FEWER green items than the healthiest MGH eaters Incentive: To earn your $10 reward, meet your GREEN GOAL for next month. GREEN GOAL: Make 60% or more or your cafeteria purchases green items during the month of December

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Using feedback and incentives to promote healthy food choices in a workplace cafeteria

2672 employees randomized

870 CONTROL 877 FEEDBACK only 925 FEEDBACK + INCENTIVES

No contact Monthly letters with green purchase data

Monthly letters with green purchase data + incentive

3 MONTHS 3 MONTHS 3 MONTHS

3 month wash-out period (no contact)

2672 employees randomized

870 CONTROL 877 FEEDBACK only 925 FEEDBACK + INCENTIVES

3 month wash-out period (no contact)

• Monthly letter: (Oct 1, Nov 1, Dec 1)

• Feedback (absolute): % green you bought last month

• Feedback (peer comparison): You vs. “All” and “Healthiest”

• No letters • Monthly letter: (Oct 1, Nov 1, Dec 1)

• Feedback (absolute): % green you bought last month

• Feedback (peer comparison): You vs. “All” and “Healthiest”

• Incentive • $10 for reaching 40%, 60%, 80% green • $5 for maintaining 40%, 60%, 80% green • applied toward cafeteria purchases

925 FEEDBACK + INCENTIVES 877 FEEDBACK only

100% 80% 60% 40% 20% 0%

38% 49%

89%

YOU All MGH Eaters

Healthiest MGH Eaters

To earn your $10, simply reach your GREEN GOAL next month:

Make 60% or more of your purchases green

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

“Strong Nudge” … Directive … but not too directive

1) Invitation to downsize 2) Traffic light labels 3) Feedback 4) Incentives 5) Temptation bundling

How can we trigger free will?

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Triggers self control

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Trigger 5: Temptation Bundling

• “Holding the Hunger Games Hostage at the Gym: An Evaluation of Temptation Bundling” • Forthcoming, Management Science • Katy Milkman, Julia Minson, Kevin Volpp

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Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

Experimental Conditions

• Full Treatment (N = 75): • Receive 4 tempting audio novels on loaned iPod • Intake visit with 30 min. workout (listening to novel) • Only listen to novels while exercising

• Intermediate Treatment (N = 75):

• … • Try to only listen to novels while exercising

• Control (N = 76):

• Receive $25 gift certificate to B&N • Intake visit with 30 min. workout

0.45

0.60

0.75

0.90

1.05

1.20

1 2 3 4 5 6 7 8 9

Avg.

Gym

Vis

its E

ach

Wee

k

Weeks Into Intervention

Full Treatment Group

Intermediate Treatment Group

Control Group

Thanksgiving Break

56% increase

Will consumers pay for this trigger?

• After 10 week study, all participants: – Told they might win a new iPod shuffle pre-loaded

with a tempting audio novel of their choice

– Asked WTP to have access to iPod restricted for one month so they could only use it at the gym?

+

0%

10%

20%

30%

40%

50%

60%

$0 $5 $10 $15 $20 $25 $30 $35 $40

% W

ho W

ould

Buy

at a

Giv

en P

rice

Price for One Month of Temptation Bundling

61% would pay $1

32% would pay $10 or more

10% would pay $20 or more

Most will pay for temptation bundling

64.2% interested in program $6.91 average WTP

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

5 Triggers: 1) Invitation to downsize 2) Traffic light labels 3) Feedback 4) Incentives 5) Temptation bundling

Conclusion: Free Will can be Triggered

47

Triggers self control

When will they work best: • When language is not too strong • When consumers do want to eat better • When choice is preserved (so people can

still eat stuff they love)

Jason Riis, Ph.D. | Wharton, University of Pennsylvania | [email protected]

- END -

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