Subtle features of online loan calculators can influence consumer choices. ESRI Research Bulletin 2019/13

As online banking becomes more popular, many consumers now use online calculators and price comparison tools to apply for financial products. These online tools often feature default figures that the consumer sees when they first reach the webpage, such as the default repayment term for a personal loan. Findings from behavioural economics suggest that these kinds of default settings can have surprisingly strong influences on people’s decisions. In collaboration with the Competition and Consumer Protection Commission (CCPC), the ESRI’s Behavioural Research Unit designed a controlled behavioural experiment to test whether the default repayment terms set on loan calculators and search tools influence the loans that people choose

Can official advice improve mortgage-holders’ perceptions of switching? An experimental investigation. ESRI WP612, February 2019

Encouraging consumers to seek out and switch to lower-rate mortgages is important both for the individual consumer’s finances and for functioning competitive markets, but switching rates are low. We conducted an experiment with mortgage-holders to test whether official advice on how to select good mortgage products and how to navigate the switching process alters perceptions of switching. The experiment shows that the advice made consumers more sensitive to interest rate decreases and more favourable towards switching at longer terms. It also increased consumers’ confidence in their ability to select good offers. The findings imply that advice from policymakers can change perceptions and increase switching rates

Using behavioural science to help fight the coronavirus. ESRI Working Paper No. 656 March 2020

This paper summarises useful evidence from behavioural science for fighting the COVID-19 outbreak. It is based on an extensive literature search of relevant behavioural interventions and studies of crises. The findings aim to be useful not only to government and public authorities, but to organisations, workplaces and households. Seven issues are covered: (1) Evidence on handwashing shows that education and information are not enough. Placing hand sanitisers and colourful signage in central locations (e.g. directly beyond doors, canteen entrances, the middle of entrance halls and lift lobbies) increases use substantially. All organisations and public buildings could adopt this cheap and effective practice. (2) By contrast, we lack direct evidence on reducing face touching. Articulating new norms of acceptable behaviour (as for sneezing and coughing) and keeping tissues within arm’s reach could help. (3) Isolation is likely to cause some distress and mental health problems, requiring additional services. Preparedness, through activating social networks, making concrete isolation plans, and becoming familiar with the process, helps. These supports are important, as some people may try to avoid necessary isolation. (4) Public-spirited behaviour is most likely when there is clear and frequent communication, strong group identity, and social disapproval for those who don’t comply. This has implications for language, leadership and day-to-day social interaction. (5) Authorities often overestimate the risk of panic, but undesirable behaviours to watch out for are panic buying of key supplies and xenophobic responses. Communicating the social unacceptability of both could be part of a collective strategy. (6) Evidence links crisis communication to behaviour change. As well as speed, honesty and credibility, effective communication involves empathy and promoting useful individual actions and decisions. Using multiple platforms and tailoring message to subgroups are beneficial too. (7) Risk perceptions are easily biased. Highlighting single cases or using emotive language will increase bias. Risk is probably best communicated through numbers, with ranges to describe uncertainty, emphasising that numbers in the middle are more likely. Stating a maximum, e.g. “up to X thousand”, will bias public perception. A final section discusses possibilities for combining these insights, the need for simplicity, the role of the media, and possibilities for rapid pretesting

Motivating social distancing during the Covid-19 pandemic: An online experiment. ESRI Working Paper No. 658 April 2020

Social distancing during the COVID-19 pandemic will save lives. We tested communication strategies to promote social distancing via an online experiment (N = 500) commissioned by Ireland’s Department of Health. A control group saw a current informational poster. Two treatment groups saw similar posters with messages that highlighted: (i) the risk of transmission to identifiable persons vulnerable to COVID-19; (ii) the exponential nature of transmission. We then measured judgements of behaviours previously identified by focus groups as “marginal” (meaning that people were not sure whether they were advisable, such meeting others outdoors, or visiting parents). We recorded intention to undertake behaviours and stated acceptability of behaviours. Our hypotheses, that both treatments would increase participants’ caution about marginal behaviours, were preregistered (i.e. lodged with an international organisation for open science before data collection). Results confirmed the hypotheses. The findings suggest that the thought of infecting vulnerable people or large numbers of people can motivate social distancing. This has implications for communications strategies. The stud

An experiment for regulatory policy on broadband speed advertising. ESRI WP641, November 2019

Identifying whether hyperbolic advertising claims influence consumers is important for consumer protection, but differentiating mere “puffery” from misleading advertising is not straightforward. We conducted a pre-registered experiment to determine whether pseudo-technical advertising claims about broadband speed bias consumer choice. We tested whether these claims lead consumers to (i) make suboptimal choices and (ii) choose faster, more expensive broadband packages than they otherwise would. We also tested a potential policy response, consisting of consumer information on broadband speeds and how they are advertised. One-in-five consumers chose a provider advertising “lightning fast” broadband over another offering the same speed at a cheaper price. Puffery also led consumers to choose faster, more expensive packages than consumers who saw no such claims. The information intervention (i) decreased the proportion of suboptimal decisions, (ii) increased the likelihood that consumers switched package, and (iii) improved understanding of speed descriptions. The findings suggest that a relatively soft regulatory intervention may benefit broadband consumers

CCPC advice helps consumers judge mortgage offers, but potentially serious misunderstandings remain1. ESRI Research Bulletin January 2020/02

Although many mortgage-holders stand to make substantial savings by refinancing or “switching” their mortgage, very few do so. In collaboration with the Competition and Consumer Protection Commission (CCPC), the ESRI’s Behavioural Research Unit undertook a controlled behavioural experiment with a sample of mortgage-holders. The experiment was designed to test whether reading independent advice on how to evaluate mortgages and navigate the switching process can help consumers to make better choices. The study also assessed how well mortgage-holders understand the basic features of mortgages

How much do survey estimates of compliance with COVID-19 advice depend on how the question is asked? ESRI Research Bulletin 202027 November 2020.

The ESRI’s Behavioural Research Unit undertook two controlled experiments to test whether survey estimates of public compliance with COVID-19 vary depending on how the survey questions are asked

Public understanding and perceptions of the COVID-19 Test-and-Trace system. ESRI Survey and Statistical Report Series 96 August 2021.

Almost half of people do not know that calling their GP to discuss symptoms of COVID-19 is free, according to new ESRI research, and over one third think they could be charged for a test. These wrongly perceived costs could deter or delay people from arranging a test if they experience symptoms

Behavioural pre-testing of COVID Tracker, Ireland’s contact-tracing app. ESRI Working Paper 687 December 2020.

Contact-tracing mobile phone apps have the potential to play a role in controlling the spread of COVID-19, but their success hinges on widespread uptake by the public. We report a study that behaviourally pre-tested COVID Tracker, Ireland’s contact-tracing app, prior to its launch with a large sample of smartphone users. The study was funded by the Department of Health and run in co-operation with the app’s developers, NearForm. Participants were randomised to receive different versions of a trial app. They responded to an online survey while downloading and using the app on their phones in real-time. The experimental manipulations focused on three broad areas: (i) the level of privacy assurance provided in the app, (ii) the goal-framing of the purpose of the app, and (iii) the structuring of the exposure notification received by users if they are recorded as a close contact. Almost one in five participants mentioned privacy concerns in relation to their likelihood of downloading the app. Including additional assurances regarding the privacy of users’ data in the app successfully lowered participants’ privacy concerns and boosted engagement. This finding fed into the final version of the app released in July 2020. We also found minor beneficial effects of restructuring the exposure notification but did not find any significant differences between two different types of goal-framing, other than a subtle effect on how the exposure notification is interpreted. Overall, our results demonstrate the value of pre-testing contact-tracing apps from a behavioural perspective to boost uptake, trust, and participation

Public expectations for lifting COVID-19 restrictions. ESRI Survey and Statistical Report Series 88 May 2020.

People expect the lifting of social distancing restrictions to be slow and gradual, with most indoor social activities not possible until at least September, according to new ESRI research. Most also believe that the lifting of restrictions should prioritise necessities ahead of leisure activities. The findings are based on data collected the week before the Taoiseach’s May 1st announcement of the Roadmap for Reopening Society and Business. The study found no evidence that a substantial proportion of the public expected a more rapid lifting of restrictions. All phases of the roadmap are subject to review based on public health data. However, if it proves possible to meet the timetable outlined in the roadmap, this would amount to a substantially more rapid lifting of restrictions than the public expected before the roadmap was published