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Literature Review: Uganda Clean Cooking Behavioral Diagnostic 1 - Coggle…

- - - - 61 percent of shopkeepers do not engage in any sort of marketing efforts to improve sales of improved cookstoves. Perhaps they feel little need to explain ICS benefits to their customers, since they believe these benefits are already widely known.
      - BCT
        
        An educational campaign promoting greater understanding of consumer attitudes toward improved cookstoves across distribution channels, targeting those on the front line of sales.
    - - Consumers are generally distrustful of any product-related messaging that is not directly observable (e.g., through a public demonstration) or that does not originate from someone that they trust.
      - 43 percent of household respondents stated that a friend or neighbor would be their most trusted recommender of purchasing an improved cookstove (compared to just 5 percent for a community leader, 2 percent for a government official, and 2 percent for a savings and credit cooperative.
      - Qualitative data indicates ICS owners are hesitant to share stove benefits openly.The reluctance to share likely stems from a reverse social desirability bias in poor communities, where being perceived as wealthy may lead to unwanted expectations of providing assistance during hardships.
      - The tendency of survey respondents to answer questions in a manner that will be viewed favorably by others.
      - BCT
        
        ICS referral program
        
        A behaviorally guided version of this program, particularly one that taps into existing social norms around helping others (e.g., “help your neighbors save” or “let’s save up together”), and combines this with possible financial incentives, should be designed and tested as a low-cost and potentially high-impact way of unlocking further ICS uptake.
        
        The Rapid Results Approach (RRA)
        
        The Rapid Results Approach is a dynamic, results-focused learning process designed to ignite major change efforts. It accomplishes this by implementing a series of small-scale, targeted initiatives that yield tangible results and build momentum. By engaging stakeholders in this process, it enhances implementation capacity and fosters a context for continuous learning and improvement.
        
        Steps of RRA
        
        Starts by focusing on a few results
        
        Challenges teams to achieve 100-day results goals
        
        Creates a temporary governance and support structure
        
        Reinforces basic management skills
        
        Manages the scale-up beyond the first 100 days
    - - Perceived price significantly impacts consumer decisions. If it's much higher than the actual price, the product might be disregarded. On the other hand, if perceived as lower, there's a risk of sticker shock. For those unfamiliar with improved cookstoves, this could lead to an unnecessarily negative first experience.
      - The shock or dismay experienced by the potential buyers of a particular product on discovering that its price is somehow higher than expected is called Sticker Shock.
      - BCT
        
        Reframe pricing to emphasize future savings
        
        To address sticker shock and leverage loss aversion, reframing product prices in terms of future fuel savings could be a promising solution. Consumers are generally more sensitive to potential losses than gains. By developing a strategy that visually highlights the contrast between two households—one losing money on charcoal with a baseline stove, and another saving with an improved cookstove—a promotional marketing campaign can tap into loss aversion and raise consumers' willingness to pay for the improved product.
        
        Visually appealing posters can compare the financial losses of two families over 1-2 years: one with an improved cookstove saving on charcoal expenses, and the other with baseline stoves incurring higher costs. This approach taps into loss aversion, motivating consumers to view the improved cookstove as a valuable investment.
    - - Significant confusion exists about what constitutes an improved cookstove. Some respondents associate only expensive brands as improved cookstoves, while others think any non-ceramic cookstove qualifies.
      - There is no formal industry definition of an improved cookstove, but instead, a tiered approach to qualifying stove cleanliness, which adds to consumer confusion. The combination of these barriers leads to an ambiguity effect, resulting in aversion towards improved cookstoves and a preference for familiar baseline stoves.
      - BCT
        
        To address consumer confusion about improved cookstoves, create a single universal term that aligns with existing mental constructs. This technique aims to enhance clarity by using familiar mental constructs and encourage adoption of improved cookstoves.
        
        Mental Model - A mental model is an internal representation that a person forms of the external world.
      - Ambiguity Effect- A cognitive bias where decision making is affected by a lack of information.
- - - - Shopkeeper survey revealed that 30% of customers require credit to buy an improved cookstove. However, 61% of these shopkeepers do not offer any financing options, with the rest providing financing only to friends. This leaves a significant number of interested consumers without the liquidity to purchase improved cookstoves.
      - BCT
        
        Centralized system using SMS, or toll-free numbers to enable potential customers to apply for credit directly through their mobile phones or access information on organizations providing credit. Personalized credit information can be delivered through a "survey," matching customers with relevant and accessible credit-providing organizations based on their employment and financial situation (self-employed or not, potential collateral, monthly income level, etc.). This system aims to enhance access to credit for interested customers seeking to purchase improved cookstoves.
    - - Qualitative data from distributor interviews shows that although credit is limited for improved cookstoves, offered loans often carry high-interest rates above 30% per year. Higher-cost models become more expensive for consumers due to these rates, potentially hindering adoption.
      - BCT
        
        Leveraging a default bias, consumers can opt for automatic ICS installment payments deducted from their monthly salary. This approach is most applicable to salaried employees and has proven effective in providing credit when implemented correctly.
        
        Use frictionless savings mechanisms, leveraging loss aversion, to encourage consumers to save for improved cookstoves. Automated platforms, like Acorns' round-up feature, make small savings during routine transactions, minimizing the sense of loss. For instance, shops selling mobile airtime can divert a portion of each purchase towards an ICS fund, making saving almost effortless for consumers.
        
        Create a dual incentive structure for layaways using a lottery system to encourage savings for improved cookstoves. Split the stove's cost into multiple scratchcards, with a chance to win prizes upon purchase. Upon collecting all scratchcards, consumers can exchange them for the cookstove. Although well-received, implementation design must address ethical considerations (e.g., gambling promotion), corruption risks, and lack of institutional trust. In-person transactions may also be involved to cater to consumer preferences for paying loan installments directly to shopkeepers. Careful testing is essential to ensure the effectiveness and integrity of this savings mechanism.