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BEHAVIOURAL APPLICATIONS TO DIGITAL FINANCE The Busara Center for Behavioral Economics, CGAP, FSD-Tanzania, and the Global Insights Initiative (GINI) April 27, 2017
BEHAVIOURAL APPLICATIONS TO DIGITAL FINANCE
The Busara Center for Behavioral Economics, CGAP, FSD-Tanzania, and the Global Insights Initiative (GINI)
April 27, 2017
© Busara 2017
Advisory Partners Research Partners
ADVISORY Applying behavioral evidence to answer
organizational challenges
The Busara Center for Behavioral Economics is a behavioral research and advisory firm that works to identify core behavioral biases and structure programs, products and policies around these barriers. Our mission is to work with researchers and organizations to advance and apply behavioral science in pursuit of poverty alleviation.
ABOUT BUSARA
RESEARCH Identifying new barriers and unpacking their
mechanisms in emerging markets
2
© Busara 2017
WHERE WE WORK
Busara works to understand the context of decision-making in new markets, with a strong focus in sub-Saharan Africa.
Busara operates permanent offices in Kenya, Uganda, and Ethiopia, but has worked on projects with partners across the continent.
Permanent Presence
Project Presence
Libya
Tunisia
Algeria
Morocco
Western Sahara
Guinea Bissau
Mauritania
Egypt
Chad Niger
Eritrea Sudan
Central African
Republic
Nigeria
Mali Senegal
Liberia
Togo
Cameroon
Ethiopia Somalia
Djibouti Gambia
Sierra Leone
Guinea
Ivory
Coast
Benin Zaire
Uganda
Gabon
Kenya
Burkina
Ghana Equatorial
Guinea
Congo Rwanda
Tanzania
Mozambique
Angola
Zambia
Burundi
Malawi
Madagascar Botswana
Zimbabwe Namibia
South Africa
Lesotho
Swaziland
3
© Busara 2017 4
ABOUT THE PROJECT: THREE OBJECTIVES
Apply behavioural insights and test interventions to better understand what drives uptake and usage for specific mobile money use cases. Examine differences in behaviors relating to mobile money use cases by customer segment, including demographics, geography, and gender. Identify optimal design elements and relevant target audiences to drive rapid scalability.
1
2
3
© Busara 2017
PHASE 1
ABOUT THE PROJECT: THREE PHASES
5
In collaboration with Airtel, determined saving as the mobile money use
case of choice.
© Busara 2017
PHASE 2
6
ABOUT THE PROJECT: THREE PHASES
PHASE 1
In collaboration with Airtel, determined saving as the mobile money use
case of choice.
Conducted research across the country to understand trends and influencers in
Tanzanian saving behaviors.
© Busara 2017
PHASE 3
7
ABOUT THE PROJECT: THREE PHASES
PHASE 2 PHASE 1
In collaboration with Airtel, determined saving as the mobile money use
case of choice.
Conducted research across the country to understand trends and influencers in
Tanzanian saving behaviors.
Ran two experiments on a digital saving platform to
understand how interventions influence
saving behaviours.
© Busara 2017
EXPERIMENTAL RESULTS: MEASURING PREFERENCES FOR PRODUCT FEATURES
NEXT STEPS
EXPERIMENTAL RESULTS: TESTING SMS NUDGES FOR MOBILE SAVING
RECAP: TRENDS AND INFLUENCERS IN TANZANIAN SAVING BEHAVIORS
8
© Busara 2017
HOW DO TANZANIANS SAVE?
A RECAP OF FINDINGS FROM EXPLORATORY RESEARCH
9
© Busara 2017
THE APPROACH
QUALITATIVE INTERVIEWS TIMELINE: August – December, 2016. SAMPLE: ~150 participants. LOCATIONS: Dar es Salaam, Arusha, Dodoma, Lindi. FOCUS: Perceptions of saving on mobile accounts, behavioral insights in to mobile saving, triggers and barriers to mobile money use. METHODS: Focus group discussions, individual interviews, behavioral narratives.
10
© Busara 2017
THE APPROACH
QUANTITATIVE SURVEYS
TIMELINE: August – October, 2016. SAMPLE: ~500 participants. LOCATIONS: Dar es Salaam, Arusha, Dodoma. FOCUS: Summary statistics on: (i) saving habits, (ii) saving preferences, (iii) willingness to take risks, (iv) patience, (v) financial literacy.
11
12 © Busara 2017
GLOBAL THEMES
12
Aspirational thinking
Social networks
Trends
Women’s Financial
Status
Saving to Mitigate
Risk
Locus of Control
Household Dynamics
Getting Trustworthy Information
Agency
Mental Accounting
Trust and Risk
Conceptuali-zing Risk
Social Influence
Saving for emergencies
Goal based saving
Social Norms
Myths and Misconceptio
n's
13 © Busara 2017
GLOBAL THEMES
13
Aspirational thinking
Social networks
Trends
Women’s Financial
Status
Saving to Mitigate
Risk
Locus of Control
Household Dynamics
Getting Trustworthy Information
Agency and Control
Mental Accounting
Trust and Risk
Conceptuali-zing Risk
Social Influence
Saving for emergencies
Goal based saving
Social Norms
Myths and Misconceptio
n's
Trust and
Risk
Agency
Mental Accounting
Social Influences
© Busara 2017
PRIORITY THEMES
Agency
Trust and Risk
Social Influences
Mental Accounting
© Busara 2017 © Busara 2017
MENTAL ACCOUNTING
• Peoples’ preferred savings medium are associated with their reason for saving.
• Individuals typically use different channels to save depending on whether it is for a specific goal or for keeping excess money for emergencies.
15
0%
10%
20%
30%
40%
50%
Bank Mobile Money Kibubu
Rela
tive
Popu
larit
y fo
r Sav
ing
Reas
on b
y Sa
ving
s Med
ium
Savings Medium
REASONS TO SAVE BY PREFERRED SAVINGS MEDIUM
Start/Improve Business Education for Children Medical Emergency
© Busara 2017 © Busara 2017
AGENCY
• An individual’s perceptions of the agency and control they have over events seem to be associated with their preferred medium for saving.
• Perceptions of control vary by gender.
16 © Busara 2016
0%
10%
20%
30%
40%
50%
60%
70%
Bank Mobile Money Kibubu
% o
f Res
pond
ents
per
Pre
ferr
ed
Savi
ngs M
ediu
m
Savings Medium
PERCEPTION OF CONTROL BY PREFERRED SAVINGS MEDIUM
Low Mid High
0%
10%
20%
30%
40%
50%
60%
Low Mid High
Inte
rnal
Loc
us o
f Con
trol
By
Gend
er
Locus of Control
INTERNAL LOCUS OF CONTROL BY GENDER
Male Female
© Busara 2017 © Busara 2017
TRUST AND RISK
• There is no saving medium that is universally considered “the most trustworthy”.
• Individuals express trust in whichever
saving medium they use most actively.
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”[Saving in the bank is safest] because when someone takes the phone and the password is known then the money can be stolen." Male respondent, Dodoma environs
“[Mobile money is] one of the best ways to save money and it is a safe method to keep money. In case you lose
your phone...you can get your money after renewing the line.”
Male respondent, Arusha environs
”[The safest money is that which is] saved under the mattresses, when sleep you [are] sure that your money is under you but MPESA you never know may be someone has noted your passwords.” Male respondent, Arusha environs
© Busara 2016
© Busara 2017 © Busara 2017
SOCIAL INFLUENCES
• Social norms, networks and trends seems to influence people’s savings behaviors and the channels they use to save.
• In Dodoma and Arusha, mobile money (as
primary savings channel) is largely associated with people with little or no formal education, whereas saving through formal banking channels is associated with higher education.
18
”Rich people or people with high income [save on mobile money platforms]. Poor people save under mattresses.” Male respondent, Arusha environs
“Saving is for rich people, since I do not have money I cannot save.”
Male respondent, Dar es salaam
© Busara 2017
TWO EXPERIMENTS
1. TESTING SMS NUDGES FOR MOBILE SAVING
• 550 participants. • Measured the impact of various SMS
reminders on mobile saving rates. • Applications to SMS messaging approaches
for encouraging customer engagement.
2. MEASURING PREFERENCES FOR PRODUCT FEATURES
• 200 participants. • Measured the impact of varying product
features on customer preferences for products. • Applications to marketing strategies for mobile
saving products.
19
vs.
?
© Busara 2017
TWO EXPERIMENTS: STUDY PARTICIPANT PROFILE
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0%
10%
20%
30%
40%
50%
60%
18-25 26-35 36-45 46+
AGE GENDER
Male Female Male: 47% Female: 53%
© Busara 2017
TWO EXPERIMENTS: STUDY PARTICIPANT PROFILE
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0%
10%
20%
30%
40%
50%
60%
Primary and Below
Secondary College and Above
EDUCATION
0% 5%
10% 15% 20% 25% 30% 35%
Multiple times a
day
Once a day
2-6 days per week
Once in a week
Once in a month
Once in 3 months
FREQUENCY OF MOBILE MONEY USAGE
© Busara 2017
TWO EXPERIMENTS: LOCATIONS OF RECRUITMENT
22
© Busara 2017
HOW TO ENCOURAGE MOBILE SAVING?
TESTING SMS NUDGES ON SAVING BEHAVIOURS
23
© Busara 2017
APPROACH
24
EX
PE
RIM
EN
T 1
QUESTION: !“How does varying SMS-based communication influence mobile saving behaviors?” !
© Busara 2017
APPROACH
25
Using their mobile phones, Participants interact with an SMS message system over 14 days.
1.
EX
PE
RIM
EN
T 1
OVERVIEW:
© Busara 2017
APPROACH
26
EX
PE
RIM
EN
T 1
OVERVIEW: Each day participant are required to send an SMS message at a particular time in order to earn income.
2.
© Busara 2017
APPROACH
27
EX
PE
RIM
EN
T 1
OVERVIEW: Once they earn income, the system asks how much they would like to deposit in to a digital saving account that would earn them interest.
3.
?
© Busara 2017
APPROACH
28
EX
PE
RIM
EN
T 1
OVERVIEW: Participants are randomly allocated to five groups. Four of the groups are sent reminder SMSs at 4 points throughout the 14 day period reminding them to save. One group (pure control) does not.
4.
SMS SMS SMS SMS
© Busara 2017
APPROACH
29
EX
PE
RIM
EN
T 1
OVERVIEW: We measured their saving behaviours over the 14-day period.
5.
? ? ? ? ?
© Busara 2017 30
PURE CONTROL GROUP: NO SMS MESSAGES
INTERVENTION DESIGN
4 INTERVENTION GROUPS: VARIATIONS OF SMS
MESSAGES
EX
PE
RIM
EN
T 1
© Busara 2017
INTERVENTION DESIGN
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• Social Influence
Mental Accounting
Social Influences
Trust and Risk
Agency
The interventions included a “control” SMS, and three variations of the SMS that were inspired by behavioral themes found during our exploratory data
collection exercise.
EX
PE
RIM
EN
T 1
© Busara 2017
INTERVENTION DESIGN: INTERVENTION 1
32
• Social Influence
Mental Accounting
Social Influences
Trust and Risk
Agency
Control SMS
Hi. Remember
to save today with your
Busara account!
EX
PE
RIM
EN
T 1
© Busara 2017 33
• Social Influence
Mental Accounting
Social Influences
Trust and Risk
Agency
Hi.!Save!more!and!have!greater!control!over!
your!money!and!your!life!!
Remember!to!save!today!with!your!Busara!account!!
Agency SMS
INTERVENTION DESIGN: INTERVENTION 2
EX
PE
RIM
EN
T 1
© Busara 2017
Agency
34
• Social Influence Social Influences
Trust and Risk
Mental Accounting
Hi.!Remember!to!save!for!{!}!!today!with!your!Busara!{!}!account!!Every!shilling!saved!
gets!you!closer!to!your!goal!!!
Mental Accounting SMS
INTERVENTION DESIGN: INTERVENTION 3
EX
PE
RIM
EN
T 1
© Busara 2017
Agency
35
• Social Influence
Mental Accounting
Trust and Risk
Social Influences
Hi.!The!successful!savers!in!your!group!have!a!savings!balance!of!%!!Remember!to!save!today!with!your!Busara!account!!
Social Influences SMS
INTERVENTION DESIGN: INTERVENTION 4
EX
PE
RIM
EN
T 1
© Busara 2017
WHICH INTERVENTION WAS THE MOST EFFECTIVE?
36
© Busara 2017 37 © Busara 2017
1. Participants nudged with SMS messages emphasizing saving balances of strong savers within their group saved at a higher rate compared to the control.
2. Participants nudged with SMS messages emphasizing a sense of agency saved at a lower rate compared to the control.
RESULTS:
© Busara 2017
RESULTS: DATA AND VISUALIZATION
38
Hi. The successful savers in your group have a
savings balance of %! Remember
to save today with your Busara
account!
Hi. Save more and have greater
control over your money and your
life! Remember to save today with
your Busara account!
VS.
SOCIAL INFLUENCE MESSAGE
AGENCY MESSAGE
EX
PE
RIM
EN
T 1
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Agency Control SMS Pure Control Mental Accounting
Social Influence
% AVERAGE AVAILABLE MONEY SAVED PER DAY
© Busara 2017
RESULTS: DATA AND VISUALIZATION
39
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Agency Control SMS Pure Control Mental Accounting
Social Influence
% AVERAGE AVAILABLE MONEY SAVED PER DAY
Hi. The successful savers in your group have a
savings balance of %! Remember
to save today with your Busara
account!
Hi. Save more and have greater
control over your money and your
life! Remember to save today with
your Busara account!
VS.
SOCIAL INFLUENCE MESSAGE
AGENCY MESSAGE
EX
PE
RIM
EN
T 1
© Busara 2017
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Agency Control SMS Pure Control Mental Accounting
Social Influence
% AVERAGE AVAILABLE MONEY SAVED PER DAY
RESULTS: DATA AND VISUALIZATION
40
Hi. The successful savers in your group have a
savings balance of %! Remember
to save today with your Busara
account!
Hi. Save more and have greater
control over your money and your
life! Remember to save today with
your Busara account!
VS.
EX
PE
RIM
EN
T 1
SOCIAL INFLUENCE MESSAGE
AGENCY MESSAGE
© Busara 2017
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Agency Control SMS Pure Control Mental Accounting
Social Influence
% AVERAGE AVAILABLE MONEY SAVED PER DAY
RESULTS: DATA AND VISUALIZATION
41
EX
PE
RIM
EN
T 1
If a pair of individuals had 4000 TSh of excess cash a day, the
individual who received the Social Influences intervention would save
12,000 TSh more per month than the individual who didn’t receive an intervention SMS.
© Busara 2017
The wrong message can be worse than no message. Always test with a small sample before scaling up.
42
RESULTS: IMPLICATIONS
Comparing customers’ savings balance with others in a social group may increase mobile saving.
EX
PE
RIM
EN
T 1
© Busara 2017 43
LEVERAGING SOCIAL GROUPS E
XP
ER
IME
NT
1
STEP 1 ! STEP 2 ! STEP 3 !
Comparing customers’ savings balance with others in a social group may increase mobile saving.
© Busara 2017 44
LEVERAGING SOCIAL GROUPS E
XP
ER
IME
NT
1
STEP 2 ! STEP 3 !
Comparing customers’ savings balance with others in a social group may increase mobile saving.
STEP 1 !
Generate “customer profiles” using transaction and other administrative data.
© Busara 2017 45
LEVERAGING SOCIAL GROUPS E
XP
ER
IME
NT
1
STEP 3 !
Comparing customers’ savings balance with others in a social group may increase mobile saving.
STEP 2 !STEP 1 !
Craft messaging that draws on typical behaviors exhibited by
that customer profile.
© Busara 2017 46
LEVERAGING SOCIAL GROUPS E
XP
ER
IME
NT
1
STEP 1 ! STEP 2 ! STEP 3 !
Comparing customers’ savings balance with others in a social group may increase mobile saving.
Roll out SMS communication at key points, i.e., one week after first deposit is made / before customer has made first saving transaction / if saving balance is at a relatively low point.
© Busara 2017 47
LEVERAGING SOCIAL GROUPS: TWO APPROACHES
Hi! Did you know that other Airtel Money users like
you are saving an average of x
TSh a week? Don’t lag behind
the group. Remember to
save.
SOCIAL INFLUENCE MESSAGE
EX
PE
RIM
EN
T 1
© Busara 2017 48
LEVERAGING SOCIAL GROUPS: TWO APPROACHES
EX
PE
RIM
EN
T 1
1. Identify existing groups amongst customers. 1.
1. Use transaction data to construct groups amongst customers. 2.
© Busara 2017 49
LEVERAGING SOCIAL GROUPS: IDENTIFY EXISTING GROUPS
EX
PE
RIM
EN
T 1
Hi! Did you know that other Airtel Money users in
your district save an average of x
TSh a week? Don’t lag behind the
group. Remember to save.
Hi! Did you know that other Airtel
Money users who use your agent save an average of x TSh a week? Don’t lag behind
the group. Remember to
save.
Rural Customers Urban Customers
LOCATION-BASED GROUPING:
© Busara 2017 50
LEVERAGING SOCIAL GROUPS: IDENTIFY EXISTING GROUPS
EX
PE
RIM
EN
T 1
Hi! Did you know that other Airtel
Money users who registered at the
same time as you save an
average of x TSh a week? Don’t lag
behind the group.
Timing of opening account
TIMING-BASED GROUPING:
© Busara 2017 51
LEVERAGING SOCIAL GROUPS: USE DATA TO CONSTRUCT GROUPS
EX
PE
RIM
EN
T 1
Hi! Did you know that other Top Savers like you save an average of x TSh a week? Don’t lag behind
the group. Remember to
save.
Use transaction data to construct group identities and encourage a
sense of belonging.
Hi! Did you know that other
Premium Users like you save an
average of x TSh a week? Don’t lag
behind the group. Remember to save.
“Top Savers”: >10,000TSh maintained for 2 weeks
“Premium Users”: >2 transactions a week
© Busara 2017
BRAINSTORM
Source: Icon by Bernice Beltran, The Noun Project
What social patterns do we have access to? What do we think would be part of customer's identity?
52
© Busara 2017
HOW TO ENCOURAGE MOBILE SAVING?
MEASURING PREFERENCES FOR SAVINGS PRODUCT FEATURES
53
© Busara 2017
MOTIVATION
54
• Social Influence
Mental Accounting
Social Influences Agency
EX
PE
RIM
EN
T 2
Trust and Risk
© Busara 2017
MOTIVATION
55
• Social Influence
Mental Accounting
Social Influences
Agency
During our exploratory data collection, we found that there is no saving medium that is universally considered “the most trustworthy”. Individuals
express trust in whichever saving medium they use most actively.
EX
PE
RIM
EN
T 2
Trust and Risk
© Busara 2017
MOTIVATION
56
• Social Influence
Mental Accounting
Social Influences
This suggests that choice of saving product may not always reflect true preference for the product, but rather the information most readily
available and accessible about the product.
EX
PE
RIM
EN
T 2
Agency
Trust and Risk
© Busara 2017
APPROACH
57
EX
PE
RIM
EN
T 2
!1. “How do customers value common
features of saving products?” 2. “Are customers more likely to prefer
a ‘wrong’ savings product when presented with a complex choice?”
!
QUESTIONS: vs. vs.
© Busara 2017
APPROACH
58
Participants are presented with a list of eight features of savings products:
Security
Accessibility
Privacy
Convenience
1.
OVERVIEW:
EX
PE
RIM
EN
T 2
vs. vs. Interest
Check Balance
Language
Fees
© Busara 2017
APPROACH
59
2.
OVERVIEW:
EX
PE
RIM
EN
T 2
vs. vs.
They are asked to rank these product features against each other and provide a weighting for each:
Security
Accessibility
Privacy
Convenience
Interest
Check Balance
Language
Fees
1.
5.
7. 8.
3.
2.
4. 6.
© Busara 2017
APPROACH
60
3.
OVERVIEW:
EX
PE
RIM
EN
T 2
vs. vs.
We used these weightings to create variations of savings products for each participant.
+
-
+ +
-
-
+ +
-
-
- +
-
+
+ +
vs.
© Busara 2017
APPROACH
61
4.
OVERVIEW:
EX
PE
RIM
EN
T 2
vs. vs.
We varied the complexity of the choices to see whether the selection best matched their preferences.
+
-
+ +
-
-
+ +
- - -
+ -
+ +
+
vs.
© Busara 2017 62 © Busara 2017
1. Participants valued the feature of Privacy the most. They valued Security the least.
2. Participants were able to understand product features and place value on them. Even so, they generally struggled to make the choice that matched their preferences.
3. The more features participants had to compare, the more likely they made an active choice between product options. However, they were also more likely to make a sub-optimal choice.
RESULTS
© Busara 2017
RESULT 1: DATA AND VISUALIZATION
63
EX
PE
RIM
EN
T 2
0% 2% 4% 6% 8%
10% 12% 14% 16%
AVERAGE % OF POINTS ALLOCATED RESULT: Participants valued the feature of Privacy the most. They valued Security the least.
© Busara 2017
RESULT 1: DATA AND VISUALIZATION
64
EX
PE
RIM
EN
T 2
0% 2% 4% 6% 8%
10% 12% 14% 16%
AVERAGE % OF POINTS ALLOCATED PRIVACY: “Only you and Busara will know about the money in this account.”
vs. “Selected family and friends will be informed about the amount of money in this account.”
SECURITY: “3 out of every 100 people will lose half of their money.”
vs. “2 out of every 100 people will lose half of their money.”
© Busara 2017
RESULT 2&3: DATA AND VISUALIZATION
65
EX
PE
RIM
EN
T 2
RESULTS: Participants were able to understand product features and place value on them. Even so, they generally struggled to make the correct choice for themselves. The more features participants had to compare, the more likely they made an active choice between product options. However, they were also more likely to have made a sub-optimal choice.
30%
35%
40%
2 Features 5 Features 8 Features
SUBOPTIMAL CHOICE
0% 10% 20% 30% 40%
2 Features 5 Features 8 Features
RANDOM CHOICE
© Busara 2017 66
RESULTS: IMPLICATIONS
Help customers make the right choice by highlighting specific differences between your products and rival products.!
EX
PE
RIM
EN
T 2
Emphasizing differences between a higher number of features may engage customers, but may not support their ability to choose a product that reflects their preferences. !
© Busara 2017
BRAINSTORM
Source: Icon by Bernice Beltran, The Noun Project
67
Drawing on existing Airtel Money marketing strategies, how could these two findings apply?
ReBphrase!this!
© Busara 2017
NEXT STEPS
68
© Busara 2017
NEXT STEPS
Source: Icon by John Winowiecki, The Noun Project
69
© Busara 2017
QUESTIONS ? 70
© Busara 2017
THANK YOU
© Busara 2017 71
© Busara 2017
APPENDIX: FURTHER DETAIL ON EXPERIMENT 2
72
© Busara 2017 73
Participants are presented with a list of eight features of saving products:
Security
Accessibility
Privacy
Convenience
1.
vs. vs. Interest
Check Balance
Language
Fees
FULL DESCRIPTION OF EXPERIMENT 2
© Busara 2017 74
They are asked to make a preference between two options for each of the product features:
Security
Accessibility
Privacy
Convenience
2.
vs. vs. + vs. - ?
+ vs. - ?
+ vs. - ?
+ vs. - ?
FULL DESCRIPTION OF EXPERIMENT 2
© Busara 2017 75
3.
vs. vs.
They are asked to rank preferred versions of the product features against each other:
Security
Accessibility
Privacy
Convenience
Interest
Check Balance
Language
Fees
1.
5.
7. 8.
3.
2.
4. 6.
FULL DESCRIPTION OF EXPERIMENT 2
© Busara 2017 76
4.
vs. vs.
They are presented with three pairs of saving products, where each product is described using a combination of the product features. They are asked to choose which they would prefer for each pair. If they choose not to make a decision, they have the option to skip.
+
-
+ +
-
-
+ +
-
-
- +
-
+
+ +
3x vs.
FULL DESCRIPTION OF EXPERIMENT 2
© Busara 2017 77
5.
vs. vs.
The pairs of saving products are described in such a way that it is relatively easy to make a choice for one pair, relatively difficult for the second pair, and somewhere in-between for the third pair.
-
-
+ +
-
-
+ +
-
-
- +
-
+
+ +
3x vs.
FULL DESCRIPTION OF EXPERIMENT 2
© Busara 2017
FULL DESCRIPTION OF EXPERIMENT 2
78
6.
vs. vs.
Level of difficulty is determined by how many of the product features the participant is required to consider whilst making their decision.
-
-
+ +
-
-
+ +
-
-
- +
-
+
+ +
3x vs.
© Busara 2017
FULL DESCRIPTION OF EXPERIMENT 2
79
7.
vs. vs.
The “easiest” product pairing are described almost identically, with variations in description between only two of the product features.
-
-
+ +
-
-
+ +
-
-
- +
-
+
+ +
vs.
EASY
© Busara 2017
FULL DESCRIPTION OF EXPERIMENT 2
80
8.
vs. vs.
The most “difficult” product pairing are described entirely discrepantly.
-
-
+ +
-
-
+ +
+
+
- -
+
+
- -
vs.
DIFFICULT
© Busara 2017
FULL DESCRIPTION OF EXPERIMENT 2
81
9.
vs. vs.
Given their initial valuations of the product features, we measured the rate at which participants made the “wrong” choice between the options as they had to consider more and more features.
-
-
+ +
-
-
+ +
+
+
- -
+
+
- -
vs.
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© Busara 2017 82
DESCRIPTIONS OF PRODUCT FEATURES USED IN EXPERIMENT 2
Security Accesibility Privacy Convenience Interest Check Balance Fees Language
Dominant
3 people out of every 100
people that save in this
device will lose half of their
money.
There is a period of seven days in which you
cannot touch your money, but once the
waiting period is over you can withdraw the
money at any time between 8 am to 5 pm
Monday to Friday.
Nobody but the participant and
Busara will be aware that you earned
money which is held in one of our
devices.
After the waiting period is over we
send the money to your mobile money
account, or any other mobile money
account that you request to send us.
4 people out of every 5 will get
paid 4% daily until the they decide to
withdraw the money from the savings device.
Participants can check their balance once a day between
8 am and 5 pm during the time
frame that we keep the money.
There is a 2% fee that will be charged when you withdraw your money.
All the messages and conversations revolving around
this savings device should be in
Swahili.
Dominated
2 people out of every 100
people that save in this
device will lose their money.
There is a period of seven days in which you
cannot touch your money, but once the
waiting period is over you can withdraw the
money at any time between 8 am to 12 pm
Monday to Friday.
Selected family and friends will be called by Busara staff and
notified that the participant has partaken in an
experiemnt, where she earned TZS X,
which she has stored in a device with us.
After the waiting period is over we canonly send the
money to your mobile money
account.
The participant will get paid 2%
daily until the they decide to withdraw the
money from the savings device.
Participants can check their balance once a day between
8 am and 12 pm during the time
frame that we keep the money.
There is a 4% fee that will be charged when you withdraw your money.
All the messages and conversations revolving around
this savings device should be in
English.
