Encouraging Energy Efficiency: Product Labels Activate Temporal Tradeoffs

53 Pages Posted: 8 May 2020

See all articles by David J. Hardisty

David J. Hardisty

Sauder School of Business

Yoonji Shim

The Chinese University of Hong Kong, Shenzhen - School of Management and Economics

Daniel Sun

University of Calgary - Haskayne School of Business

Dale W. Griffin

University of British Columbia (UBC) - Division of Marketing

Date Written: April 15, 2020

Abstract

The current research presents the "10-year energy cost" label as an effective nudge to increase energy efficient choices by retail consumers. Its efficacy is demonstrated in both lab and field studies (Studies 1a and 1b) and compared to other energy labels (Studies 4 and 5). The current work proposes that it is effective partly because many consumers have a latent "long-term dollar cost-reduction" goal. Normally, when consumers purchase energy using products, they do not think about long-term costs. However, the "10-year energy cost" label activates this latent goal in the presence of an appropriate behavioral path to achieving the goal, increasing the proportion of energy efficient choices (Studies 3 and 4). Thus, this nudge is somewhat selective, having its greatest impact on consumers who self-report actively pursuing long-term cost reduction goals (Study 5).

Keywords: Product Labels, Attribute Framing, Inter-temporal Choice, Energy Paradox

Suggested Citation

Hardisty, David J. and Shim, Yoonji and Sun, Daniel and Griffin, Dale W., Encouraging Energy Efficiency: Product Labels Activate Temporal Tradeoffs (April 15, 2020). Available at SSRN: https://ssrn.com/abstract=3576266 or http://dx.doi.org/10.2139/ssrn.3576266

Yoonji Shim

The Chinese University of Hong Kong, Shenzhen - School of Management and Economics ( email )

2001 Longxiang Road, Longgang District
Shenzhen, 518172
China
+86 (0) 755-235-18577 (Phone)

Daniel Sun

University of Calgary - Haskayne School of Business ( email )

2500 University Drive, NW
Calgary, Alberta T2N 1N4
Canada

Dale W. Griffin

University of British Columbia (UBC) - Division of Marketing ( email )

Canada

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