Publications

Suggested Citation

Kaiser, C., Unfried, M., Schallner, R., Horneber, D., & Laumer, S. (2024). The Power of Persuasion. Driving Sustainable Choices in E-Commerce. NIM Insights Research Magazin Vol. 6 - The AI Transformation

Year

2024

Authors
Dr. Carolin Kaiser,
Dr. Matthias Unfried,
René Schallner,
David Horneber,
Professor Sven Laumer
Publication title
The Power of Persuasion
Publication
NIM INSIGHTS Research Magazine

The Power of Persuasion

Driving Sustainable Choices in E-Commerce

Have you ever tried to buy a sustainable product? Online shops are increasingly integrating filters that allow consumers to display results according to sustainability criteria. A recent study delves into how these design features influence consumer choices.

JASON MARZ, GETTY IMAGES

Today, shoppers often find themselves overwhelmed when trying to make buying choices. The sheer amount of products and information available can cause what's known as choice overload. Moreover, the present economic scenario, specifically high inflation rates, urges many to focus on price. Simultaneously, a  rowing awareness about sustainability has led many to prefer eco-friendly products. In fact, 62% are ready to alter their shopping habits to lessen environmental damage, but only 31% have managed to mostly buy sustainable items recently. The higher prices of green products remain a major hurdle, with 53% of U.S. shoppers finding them too pricey.

Now, online sellers are adopting numerous tactics to ease the buying process while also boosting their earnings. For instance, Amazon has a feature called "Amazon's Choice" to highlight certain products, making it simpler for buyers to decide. Moreover, various online platforms offer filters and sorting features to help narrow down choices. Observing the rising demand for sustainable goods, many online stores like Booking, Zalando, and Nordstom now have a “sustainability” filter. Aside from these, the initial display order of products and sponsored content can also sway buying decisions.

AI is revolutionizing e-commerce strategies, particularly in how consumers interact with online stores. AI-powered recommendation engines analyze past behavior to make personalized suggestions, reducing choice overload and helping customers find what they want faster. AI also optimizes filters and sorting options, ensuring sustainability-focused shoppers see eco-friendly products aligned with their preferences.

Understanding how design elements—such as filters, sorting, and sponsored content—impact purchasing behavior is essential to refine the AI algorithms driving e-commerce platforms. This study delved into how these design features influence consumer choices, especially around sustainable products, offering valuable insights for both retailers and consumers.

For this purpose, a team of researchers from NIM and Friedrich-Alexander-University of Erlangen-Nuremberg conducted an online experiment to understand how different design features can influence consumer choices when shopping for sustainable products. Participants were asked to purchase a basic white T-shirt in a mock-up online fashion store, allowing us to see how eco-labels and sorting options impact their buying decisions.

We divide participants into four groups (see Figure 1):

  1. Control group: Products were shown with a sustainability rating (eco-label).
  2. Sorting group: Consumers could sort products by their sustainability ratings.
  3. Sponsored content group: Sponsored products with lower sustainability ratings were placed at the top, even with the ecological sorting option.
  4. Self-nudge group: Before entering the store, participants were asked if they wanted their search results sorted by sustainability.
Figure 1: Experimental Groups

Figure 1: Experimental Groups

The store displayed 15 T-shirts with various prices and sustainability ratings, and each participant had VT-$30 (virtual dollars) to spend. Unspent money was converted into real cash for compensation, and to encourage ecofriendly purchases, we tied donations to a conservation charity based on the sustainability rating of the chosen product—the higher the rating, the larger the donation. With 1,198 U.S.-based participants, we collected insights on how these design features impact decision-making. After the purchase, we also asked participants about their motivations, from value for money to ethical considerations.

Our study looked at how different e-commerce design elements—like eco-rating labels, sustainability sorting, and sponsored content—impact consumer decisions. The results showed that offering a sustainability sorting option did not significantly boost the effect of an eco-rating label, and placing sponsored products at the top of the page didn’t deter users from making sustainable choices.

Interestingly, only 25% of participants used the sustainability sorting option, even when it was available. Moreover, even when sponsored items appeared at the top, the number barely changed (21%). However, in the self-nudge group, where users were asked if they wanted to sort by sustainability before shopping, 77% chose to do so. This suggests that consumers are more likely to engage with sustainable options when prompted to make an active decision, whereas sorting features alone have a limited impact on actual purchase behavior.

These findings highlight that sorting tools may not significantly drive ecofriendly purchases, which is important for marketers looking to influence consumer behavior. They also raise questions about the effectiveness of digital nudging, showing that even subtle tactics like self-nudging have only a weak effect on buying patterns. For marketing professionals, this points to the need for a more nuanced approach when using design elements to promote sustainability in online shopping.

This research offers key insights for e-commerce managers, consumers, and society, especially in the growing market for sustainable products. Many online retailers like Booking, Zalando, and Nordstrom now provide options to search for eco-friendly products. While these features cater to environmentally conscious shoppers, they don’t necessarily influence those who aren’t prioritizing sustainability. As a result, many e-commerce platforms should combine these eco-friendly options with other persuasive design elements, such as focusing on price or product ratings.

AI plays a crucial role in this process. By analyzing consumer behavior, AI-driven recommendation engines can predict individual preferences and suggest products that match those preferences, helping personalize the shopping experience. AI can also optimize the use of filters and sorting options, ensuring that sustainability-focused consumers are more effectively matched with ecofriendly products, while those who prioritize price or ratings are also served.

Our findings suggest that using a mix of design strategies, with the strategies reflecting different goals, does not negatively impact overall sales. Retailers can successfully combine AI-powered personalization with a range of persuasive tools to reach different consumer segments. Additionally, our research shows that self-nudging—where shoppers are prompted to choose how they sort products—can lead to more sustainable choices. Although its effect was modest, self-nudging increased consumer autonomy and enhanced the overall shopping experience. 

Key Insights

  • In online shopping, consumers are more likely to engage with sustainable options when prompted to make an active decision.
  • Sorting tools alone may not significantly drive eco-friendly purchases. Instead, web store owners need a more nuanced approach when using design elements to promote sustainability in online shopping.
  • Although its effect was modest, self-nudging increases consumer autonomy and enhances the overall shopping experience.

Authors

  • Dr. Carolin Kaiser, Head of Artificial Intelligence, NIM, carolin.kaiser@nim.org
  • Dr. Matthias Unfried, Head of Behavioral Science, NIM, matthias.unfried@nim.org
  • René Schallner, Chief Founding Engineer, ZML
  • David Horneber, Friedrich-Alexander-Universität Erlangen-Nürnberg
  • Professor Sven Laumer, Schöller Stiftungslehrstuhl für Wirtschaftsinformatik, insbesondere Digitalisierung in Wirtschaft und Gesellschaft, Friedrich-Alexander-Universität Erlangen-Nürnberg

Contact

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