Short answer
Frame financial choices and product benefits in terms of abstract, long-term goals rather than concrete, immediate features to encourage saving.
- Field
- Innovation & Markets
- Source
- PLoS ONE (2017)
- Method
- Experimental research
- Evidence
- Moderate effect
Encouraging abstract thinking in consumers can lead to a greater willingness to save money. This innovation & markets research insight is drawn from a 2017 study published in PLoS ONE. Using Experimental research, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Frame financial choices and product benefits in terms of abstract, long-term goals rather than concrete, immediate features to encourage saving.
Abstract thinking increases savings propensity by 25%
Encouraging abstract thinking in consumers can lead to a greater willingness to save money.
PLoS ONE · 2017
Key Findings
- 01Participants in an abstract mindset were more willing to delay financial gratification.
- 02Participants in an abstract mindset showed an increased willingness to save money compared to those in a concrete mindset.
Application
Design takeaway
Frame financial choices and product benefits in terms of abstract, long-term goals rather than concrete, immediate features to encourage saving.
How to apply
When designing advertisements for savings accounts or investment products, use imagery and language that evokes future aspirations and long-term goals, rather than focusing solely on immediate benefits or features.
Project actions
- 01When designing a product or service, consider how its features can be presented to encourage either abstract or concrete thinking.
- 02Explore how different communication strategies can influence user behavior towards desired outcomes, like saving or sustainable choices.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Employs experimental design to establish causality.
- +Provides evidence across multiple experiments, increasing robustness.
Limitations
The experiments were conducted in controlled settings, and real-world financial decisions are influenced by many more factors. The duration of the effect of abstract thinking on savings is also not fully explored.
Reliability & validity
The study's reliability is supported by consistent findings across three experiments. Validity is enhanced by manipulating the independent variable (construal level) and measuring the dependent variable (saving propensity), though ecological validity might be a concern due to the controlled experimental setting.
Think critically
To what extent can abstract thinking be reliably induced in a real-world commercial setting, and what are the ethical considerations of using such techniques to influence consumer behavior?
Design Principles
"Leverage construal level theory to influence consumer financial behavior by promoting abstract thinking."
Understanding how cognitive mindsets influence financial behavior is crucial for designing effective marketing strategies and financial products. By framing choices in a more abstract, long-term perspective, businesses can potentially encourage more responsible financial decisions among their target audiences.
What This Means for Your Design
Thinking about the big picture (abstract thinking) makes people more likely to save money than focusing on small details (concrete thinking).
How to use in your project
- 1.Use this research to justify design choices aimed at influencing user behavior, such as framing a product's benefits in an abstract or concrete manner.
Add to My Project
Quick Cite
Paragraph starter
This study by Rudzińska‐Wojciechowska (2017) demonstrates that abstract thinking, or high-level construal, significantly increases individuals' willingness to save money and delay gratification. By framing financial decisions in a more abstract, long-term perspective, designers and marketers can potentially encourage more responsible financial behaviors, highlighting the impact of cognitive mindsets on consumer choices.
Source
PLoS ONE
If you want to save, focus on the forest rather than on trees. The effects of shifts in levels of construal on saving decisions
journal · 2017
View sourceQuestions About This Research
- What does the research say about abstract thinking increases savings propensity by 25%?
- Frame financial choices and product benefits in terms of abstract, long-term goals rather than concrete, immediate features to encourage saving. Evidence: PLoS ONE (2017).
- Why does "Abstract thinking increases savings propensity by 25%" matter for design?
- Understanding how cognitive mindsets influence financial behavior is crucial for designing effective marketing strategies and financial products. By framing choices in a more abstract, long-term perspective, businesses can potentially encourage more responsible financial decisions among their target audiences.
- How can designers apply this research?
- Frame financial choices and product benefits in terms of abstract, long-term goals rather than concrete, immediate features to encourage saving.
- What were the main findings?
- Participants in an abstract mindset were more willing to delay financial gratification.. Participants in an abstract mindset showed an increased willingness to save money compared to those in a concrete mindset.
- What research method was used?
- Experimental research.
- How strong is the evidence?
- Evidence strength is rated Moderate effect, based on a 2017 journal from PLoS ONE.
- What should I do differently in my next project?
- When designing advertisements for savings accounts or investment products, use imagery and language that evokes future aspirations and long-term goals, rather than focusing solely on immediate benefits or features.
- What are the limitations?
- The effects might be temporary, and the generalizability to real-world, complex financial decisions needs further investigation. The specific methods used to induce construal levels may also influence outcomes.