How are sustainable choices influenced by the way customers approach decisions?

Jul. 27, 2022


Research has found that people make decisions based on a combination of three modes—calculating costs and benefits, responding to emotional reactions and considering their social identities. As part of the Catalyst podcast at the Fox School, Crystal Reeck discusses her research on how these decision modes influenced people to make sustainable choices when choosing a new electricity plan.

Reeck found that people making decisions based on emotional reactions or considering their social identities opted for sustainable plans. Those favoring cost-benefit calculations chose less environmentally-friendly plans, but could change their minds after remembering past decisions based on social identity.

These findings can help organizations communicate with stakeholders and consumers in a way that encourages individuals and groups to think consciously about making more sustainable decisions.