When it comes to home energy choices and consumption, consumers might believe that their behavior is based upon high-minded motives, such as concern for the environment. Or maybe behavior is based on practical concerns: money, budgets, value.
But psychologists and behavioral economists say that consumer behavior boils down to something more fundamental. Good old-fashioned peer pressure.
Utilities partnering with OPower provide their customers with a Home Energy Report that graphs a household’s energy.
Customers can see how they compare with a “highly credible set of neighborhood peers”. Are they “average”? Do they rank amongst the “most efficient?” Exceptionally efficient customers are rewarded with a “subtle psychological mechanism” meant to drive them to action.
That mechanism? A smiley face on their bill.
According to the WSJ:
Utilities say homes that get the report show a consistent, sustained reduction in energy use of about 2% on average, compared with similar homes that don't receive the reports.
Two percent is significant, when spread across millions of homes. The savings are achieved without costly rebates, tax credits or mass-media ad campaigns.
Social mobilization works on a subconscious level. When we tell people what those around them are doing – “77% of your neighbors choose ceiling fans over air conditioning – it’s your community’s popular choice! ” – we provide them with a fundamental cue as to what they should be doing.
Photo credit: All rights reserved http://www.flickr.com/photos/a-m-z-xo/