Russ Moody, MBA Social Marketing & Behaviour Change. Acknowledgement PHE Behavioural Insights Team

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1 Behaviour Change Introduction to Behavioural Economics CIOS Physical Activity Summit From everybody s business to business critical 17th November 2017, Cornwall College, St Austell Russ Moody, MBA Social Marketing & Behaviour Change Acknowledgement PHE Behavioural Insights Team Health & Wellbeing Programme Lead Public Health England South West

2 My aim for today in <1hr Theory & discussion 1. Inspire you to go and learn more about behavioural science 2. Maybe - try it out?

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5 How do we promote health? Policy makers and professionals are prone to a frequent mistake. In their well-intentioned desire to highlight and address important social issues, policy makers often inadvertently communicate that the problem behaviour is relatively widespread. This signals to people that, even if we don t like or approve of the behaviour, lots of other people are doing it. Robert Cialdini, Professor of Psychology and Marketing at Arizona State University

6 Standard Economic Theory Homo-economicus Consistently rational (not emotional) Self-interested (not altruistic) Utility maximisers (the greatest amount of value possible for the budget) Takes the optimal route to achieve goals Acknowledgement - Public Heath England - Behavioural Insights Team

7 Behavioural Economics In reality Subject to biases Subject to irrationalities Use heuristics (shortcuts) to make decisions Context and time dependent (inconsistent) Emotional Acknowledgement - Public Heath England - Behavioural Insights Team

8 Stroop Test Public Heath England - Behavioural Insights Team

9 Interacting Systems AUTOMATIC Fast, effortless & REFLECTIVE vs Slow, conscious Implications: We use misleading rules of thumb (heuristics) We are heavily influenced by how choices are presented We are heavily influenced by what we think other people are doing Public Heath England - Behavioural Insights Team

10 Behavioural Economics "One of the most important discoveries of behavioural economics is how little our behaviour is influenced by our intentions, and how much it is influenced by context. Zoë Chance, Yale University

11 Example in Practice Smaller Plates Public Heath England - Behavioural Insights Masterclass

12 Smaller Plates Results Chinese buffet diners with large plates 1.Served 52% more food 2.Ate 45% more food 3.Wasted 135% more food than those with smaller plates. *Further, education does not appear effective in reducing such biases. Even a 60-min, interactive, multimedia warning on the dangers of using large plates had seemingly no impact on 209 health conference attendees, who subsequently served nearly twice as much food when given a large buffet plate 2 hr later. Public Heath England - Behavioural Insights Masterclass. (Wansink and van Ittersum, 2013)

13 COM-B Psychological capability Physical capability Capability Reflective motivation Automatic motivation Motivation Behaviour Social opportunity Physical opportunity Opportunity Public Heath England - Behavioural Insights Team. Michie et al. (2012)

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15 How can we apply it? Understanding why people behave as they do (context) Importance of automatic system Surprise Hyperbolic Discounting Social Learning Priming Placebo Effect Decoupling Proccrastination Availability Impact Bias Long-Tailed Risk Social Identity / norms Habit Anticipation of Reward Simplification Band Wagon Effect Anchoring Optimism Bias Intertemporal Choice Business Norms Intuition Messenger Planning Fallacy Key Influencers Hindsight Bias Loss Aversion Attention Collapse Identity Reciprocity Status quo bias Hedonic Framing Cognitive Load Gaming Sunk Costs Defaults Regret Choice Bracketing Certainty Bias Altruism Social Proof Mental Accounting Ambiguity Effect Salience Commitment effect Information Avoidance Endowment Effect Inequity Aversion Diagnostic Bias Representativeness Participatory Effect Teachable moment Cognitive Dissonance Over-Extrapolation Actor-Observer Bias Omission Bias Attribution Error Framing

16 What is everyone else doing? We are strongly influenced by what others do If the norm is desirable let people know about it Group Discussion Can you think of an example? Towel Reuse Study GOLDSTEIN, CIALDINI, GRISKEVICIUS (2008) JOURNAL OF CONSUMER RESEARCH Environmental factors 35% compliance 75% reuse increase by 26% 75% in this room reuse increase by 33% Can you communicate to your audience the beneficial actions or behaviours that the majority are taking?

17 Who do (are) we like? Group Discussion Can you think of an example? We are heavily influenced by who communicates the information Experts, leaders and those that are similar to ourselves Business Negotiation Study (MBA Students, Harvard) Time is Money 55% agreement Talk, share, identify commonality first 90% agreement (worth 18% more value) Identify similarity, look for genuine compliment & cooperate Who is best placed to demonstrate the desired behaviour, develop commonality and share the experiences?

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19 Make a Commitment Group Discussion Can you think of an example? We seek to be consistent with our public promises We delay taking decisions that will be in our long-term interest Car Safety Study (US) 4 times more likely to erect sign Can your audience make small initial commitments or public declarations to healthy ambitions?

20 Example: Time Inconsistent Preferences 100% 50% Snack choice for next week 49% 51% 0% 100% Unhealthy Healthy Snack choice for now 88% 50% 0% Unhealthy 12% Healthy Reed and van Leeuwen (1998) Predicting Hunger: The Effects of Appetite and Delay on Choice

21 Make a Commitment We seek to be consistent with our public promises We delay taking decisions that will be in our long-term interest 5 times more likely to quit long-term Can your audience make small initial commitments or public declarations to healthy ambitions?

22 Novelty and Relevance Our behaviour is influenced by what our attention is drawn to We register stimuli that are novel, accessible and simple Group Discussion Can you think of an example? Burn calories not electricity Alcohol Sales tax label (US) 40% increase in stair use 8% decrease in sales Pedometers Activity Trackers Calorie Intake Sleep Pattern Heart Rate Can you give your audience simple feedback on healthy behaviours (or eliminate choice complexity)?

23 What is the default option? We go with the flow of pre-set options We behave in predictably lazy ways so defaults exert influence Donor Scheme Fresh fruit & water in meeting rooms Smaller portion sizes as standard Junk foods placed strategically Salad (etc.) first in the cafeteria Group Discussion Can you think of an example? How can you restrict active choices and install healthy pre-selected options?

24 Opt-out Donor Schemes

25 Group Discussion: Step 1 Identify some specific behaviours that you would like to address in the context of Physical Activity (Patients/Yourself/People you know/workplace) In your groups IDENTIFY 3 potentials Feedback x 3: Describe the behaviour Describe your rationale

26 Group Discussion: Step 2 In your groups think about how you could change the context to influence the behaviour Promote beneficial behaviours of the majority Who do (are) we like? (potential role models/messengers) Make a (public) commitment Novelty, salience and relevance of stimuli Follow the default option 5min on each (x3)

27 Introducing MINDSPACE

28 Summary Information/policy is not enough Promote health through context Take a view through a behavioural economic lens Develop behavioural expertise Aggregation of marginal gains