Influencing retirement saving behavior with expert advice and social comparison as persuasive techniques

Junius Gunaratne, Oded Nov

    Research output: Chapter in Book/Report/Conference proceedingConference contribution

    Abstract

    Numerous online communities and e-commerce sites provide users with crowd-based recommendations to influence decision making about products. Similarly, automated recommender systems often use social advice or curated knowledge provided by experts to give customers personalized product recommendations. Little, however, is known about the relative strengths of these approaches in repeated-decision scenarios. We used social comparison and an expert recommendation to examine the relative effectiveness of these methods of persuasion for users making repeated retirement saving decisions. We exposed 314 performance-incentivized experiment participants to a retirement saving simulator where they made 34 yearly asset allocation decisions in one of three user interface conditions. The gap between participants’ retirement goal and actual savings was smallest in the expert advice condition and significantly better than the social comparison condition. Both conditions were significantly better than the control condition. In non-control conditions, users adjusted their behavior and achieved their saving goal more effectively.

    Original languageEnglish (US)
    Title of host publicationPersuasive Technology - 10th International Conference, PERSUASIVE 2015, Proceedings
    EditorsThomas MacTavish, Santosh Basapur
    PublisherSpringer Verlag
    Pages205-216
    Number of pages12
    ISBN (Electronic)9783319203058
    DOIs
    StatePublished - Jan 1 2015
    Event10th International Conference on Persuasive Technology, PERSUASIVE 2015 - Chicago, United States
    Duration: Jun 3 2015Jun 5 2015

    Publication series

    NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
    Volume9072
    ISSN (Print)0302-9743
    ISSN (Electronic)1611-3349

    Other

    Other10th International Conference on Persuasive Technology, PERSUASIVE 2015
    CountryUnited States
    CityChicago
    Period6/3/156/5/15

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    Keywords

    • Behavior change
    • Financial literacy
    • Persuasive technology
    • Retirement saving
    • Social comparison

    ASJC Scopus subject areas

    • Theoretical Computer Science
    • Computer Science(all)

    Cite this

    Gunaratne, J., & Nov, O. (2015). Influencing retirement saving behavior with expert advice and social comparison as persuasive techniques. In T. MacTavish, & S. Basapur (Eds.), Persuasive Technology - 10th International Conference, PERSUASIVE 2015, Proceedings (pp. 205-216). (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics); Vol. 9072). Springer Verlag. https://doi.org/10.1007/978-3-319-20306-5_19