Technology is alienating people – and it’s not just those who are older
We take it for granted that technology brings people closer together and improves our access to essential products and services. If you can’t imagine life without your smartphone, it’s easy to forget that people who can’t or don’t want to engage with the latest technology are being left behind.
For example, there have recently been reports that cashless payment systems for car parking in the UK are seeing older drivers unfairly hit with fines. This has led to calls for the government to intervene.
Age is one of the biggest predictors of digital exclusion. Only 47 per cent of those aged 75 and over use the internet regularly. And out of the 4 million who have never used the internet in the UK, only 300,000 people are under 55.
But older people are not the only ones who feel shut out by new technology. For example, research shows vulnerable people, such as those with disabilities, are also disengaging with e-services and being “locked out” of society.
The digital transition
From train tickets to vaccine passports, there is a growing expectation that consumers should embrace technology to participate in everyday life. This is a global phenomenon. Out in front, Sweden predicts its economy will be fully cashless by March 2023.
Shops increasingly use QR codes, virtual reality window displays and self-service checkouts. Many of these systems require a smart device, and momentum is building for QR codes to be integrated into digital price tags as they can give customers extra information such as nutritional content of food. Changing paper labels is a labour intensive process.
Technology pervades all aspects of consumer life. Going on holiday, enjoying the cinema or theatre, and joining sport and social clubs all make people feel part of society. But many popular artists now use online queues to sell tickets to their shows. Social groups use WhatsApp and Facebook to keep their members updated.
When it comes to booking a holiday, there is a decreasing number of in-person travel agents. This limits the social support to make the best choice, which is particularly important for those with specific needs such as people with health issues. And once travelling, aircrew expect flight boarding passes and COVID passports to be available on smartphones.
Essential services such as healthcare, which can already be difficult for older and other people to navigate, are also moving online. Patients are increasingly expected to use the GP website or email to request to see a doctor. Ordering prescriptions online is encouraged.
Not just older people
Not everyone can afford an internet connection or smart technology. Some regions, particularly rural ones, struggle for phone signal. The UK phone network’s plans for a digital switchover by 2025, which would render traditional landlines redundant, could cut off people who rely on their landlines.
Concerns about privacy can also stop people using technology. Data collection and security breaches impact people’s confidence in organisations. A 2020 survey into consumers’ trust in businesses showed no industry reached a trust rating of 50 per cent for data protection. The majority of respondents (87 per cent) said they would not do business with a company if they had concerns about its security practices.
Some people view “forced” digitisation as a symbol of consumer culture and will limit their technology use. Followers of the simple living movement, which gained momentum in the 1980s, try to minimise their use of technology. Many people take a “less is more” approach to technology simply because they feel it offers a more meaningful existence.
One of the most common reasons for digital exclusion, however, is poverty. When the pandemic hit in March 2020, 51 per cent of households earning between £6,000 to £10,000 had home internet access, compared with 99 per cent of households with an income over £40,000.
Limited access to tablets, smartphones and laptops can result in feelings of isolation. Many older consumers have developed strategies to manage and overcome the digital challenges presented by these devices. But those unable to engage with technology remain excluded if their family and friends don’t live close by.
Smart change
The solution is not simply to give devices to those without smart technology. While there is a need to provide affordable internet access and technology, and offer support in learning new skills, we need to recognise diversity in society.
Services should provide non-digital options that embrace equality. For example, cash systems should not be abolished. There might be a demand for services to become digital, but service providers need to be aware of the people who will be isolated by this transition.
Retailers, local councils, health providers and businesses in tourism, entertainment and leisure should try to understand more about the diversity of their consumers. They need to develop services that cater for the needs of all people, especially those without access to technology.
We live in a diverse world and diverse consumers need choice. After all, access to and inclusion in society is a human right.
Carolyn Wilson-Nash, Lecturer, Marketing and Retail, Stirling Management School, University of Stirling and Julie Tinson, Professor of Marketing, University of Stirling
This article is republished from The Conversation under a Creative Commons license. Read the original article.
Buy now pay later: how to protect consumers without regulating it out of existence
Calls to regulate the booming “buy now, pay later” (BNPL) industry have not deterred big brands like Apple and Amazon from the idea of offering consumers an interest-free, no-fee way to spread payments for purchases. Apple cited “users’ financial health” when it announced this new feature, but research shows financially vulnerable people need more protection.
It’s possible to regulate this sector to safeguard consumers without completely restricting access. By learning lessons from previous efforts to regulate the payday lending sector, for example, the industry and its regulators could take steps to prevent misuse.
The use of BNPL payment platforms almost quadrupled in 2020, with transaction values reaching £2.7 billion. In 2021, UK BNPL transaction value grew by as much as 70 per cent to £6.4 billion or 5 per cent of the total e-commerce market.
This form of credit allows people to pay for online purchases in instalments, without a credit record check. It tends to attract younger borrowers, with a quarter of users aged 18-24 years old and half aged 25-36 years old, according to data shared by providers with the UK’s financial regulator, the Financial Conduct Authority (FCA).
Unfortunately, it has also encouraged some shoppers to spend more than they can afford. Citizens Advice says two in five BNPL users have struggled to repay, and one in four of those that have missed a payment have been contacted by debt collectors.
And while BNPL was conceived as a convenient way to purchase big-ticket items such as sofas and TVs, the rising cost of living means people are now using it to pay for essentials such as food and toiletries. Research has also found that users who are unable to repay their BNPL sometimes use credit cards with typical interest rates of 20 per cent to delay repaying their debt.
A rise in overstretched users is not only detrimental to consumers, it could also damage businesses. Retailers have increasingly relied on BNPL to boost sales by allowing people to spread the cost of goods over a series of payments. They pay the provider a fee for the purchased goods and the BNPL business model is reliant on consumers’ repeat use.
Retailers have used this to navigate recent challenges like Brexit and COVID-19. Up to 92 per cent of merchants surveyed last year had integrated their first BNPL solution since early 2020. But the rising cost of living crisis has changed the economics of this form of credit for all involved.
Regulatory lessons
As a result, regulation looks increasingly likely, and necessary, to provide consumers with greater protection from financial harm. The FCA has already enforced new contractual changes to terms and conditions to help protect consumers using Klarna, Clearpay, Laybuy and Openpay. These new measures include protecting consumers that cancel their goods through BNPL from being charged a late payment fee.
At the moment, the hope is that other providers will follow suit. This regulation needs to be enforced across the sector in a way that shields consumers without removing access to this form of finance.
The regulation of payday lending in 2015 provides valuable lessons for BNPL. My research on the experience of borrowers shows that, while “high-cost, short-term” credit regulation protected users from falling into too much debt, it also excluded many people from accessing this credit at all.
Ultimately, this regulation restricted consumer choice by forcing several high-profile lenders into administration. Their business models no longer worked due to the stricter rules on lending and a cap on the cost of credit, combined with an influx of pre-regulation compensation claims.
Protecting consumers
Financial regulation that aims to protect consumers must support those on the lowest incomes that are shouldering the greatest burden in the cost of living crisis. More generally, an uplift in benefits in line with inflation would be useful. Credit is not always the right solution, but affordable community finance providers such as credit unions and community development finance institutions should also be promoted.
For BNPL regulation specifically, regulators can and should design rules that will ensure that consumers are protected but also able to continue to use this increasingly popular form of finance. According to my research, the following measures would help:
- Clarifying that BNPL is a form of credit and the implications of using it so that consumers can make informed decisions.
- Ensuring providers make sufficient and appropriate checks about whether consumers can afford to repay loans alongside their other financial commitments to reduce overall debt. This would rely on access to real-time data to prevent multiple loans with multiple providers.
- Adding greater consumer goods protection to match other forms of credit such as credit cards, which offer a refund if goods are lost or damaged.
The BNPL model is unlikely to disappear any time soon. Instead, BNPL companies are already starting to adapt to a more regulated future by changing their business models to some extent. For example, Klarna’s moves to report its data to credit scoring companies certainly indicates it is pre-empting regulation of the sector, as well as an economic slowdown that could curb its growth in the near future.
Even with this outlook, however, confidence in the sector remains. Thoughtful regulation will ensure present players and new entrants can build responsible BNPL offerings that online shoppers can continue to add to their baskets.
Lindsey Appleyard, Assistant Professor, Coventry University
This article is republished from The Conversation under a Creative Commons license. Read the original article.
Sustainability and Innovation: Swiftpak’s key to the future
With its intelligent green packaging solutions that meet regulations while considering the bigger picture, Swiftpak is ahead of the game
Swiftpak, a Certified B Corporation, firmly believes that innovation and sustainability go hand-in-hand. By continuously innovating, the Reading-based packaging supplier is in a position to introduce more sustainable products, lower its carbon footprint and minimise waste. Swiftpak strives to continue to keep sustainability at the forefront of its R&D process.
“Design is now a fundamental part of the definition of sustainability,” says Swiftpak’s Head of Innovation, Craig Allen. “The design of any new packaging now applies a greater focus on the impact of that packaging for its whole life – from manufacture to how it will be dealt with at the end of its use. Recyclability will hopefully be part of an economic, fit-for-purpose solution with the focus on minimising impact to meet the world’s requirement of a sustainable future.”
This push for sustainability driven by innovation has only been intensified further by the Plastic Packaging Tax that came into place this year. As of April 2022, plastic packaging containing less than 30 percent recycled materials incurs a tax penalty. To help make life easier for customers, Swiftpak ensures transparency through its online portal, where the percentage of recycled content in each product is now clearly shown.
Bringing new sustainable solutions to market
Swiftpak has been proactive in bringing sustainable value through innovation while not ignoring the bigger picture. An example of looking at the grand scheme is stretch wrap. Relatively quickly after the Plastic Packaging Tax announcement, a new stretch wrap with 30 percent recycled content came to market. While in theory it sounded great, Swiftpak decided to hold off on the promotion of this product as the film was significantly thicker, meaning that companies would end up using more plastic than with Swiftpak’s MWrap. Promoting the product would have been counterproductive, as with the increased usage, customers would not only spend more even with avoiding the tax but also create more waste. However, in the past few months, rapid developments have been made. Following extensive research and development, Swiftpak launched a new stretch wrap in its MWrap range with 30 percent recycled content that has the same capabilities as the other MWrap stretch films – without losing any efficiencies or creating excess waste.
Swiftpak has recently launched multiple other products containing recycled content, such as the Premium Polypouch bags with 30 percent recycled content, strapping with 100 percent recycled content and foam profiles made from 100 percent recycled material. The introduction of the Plastic Packaging Tax has only pushed the importance of sustainability and innovation and encouraged the development of innovative solutions to meet the new standards that the tax has created.
Swiftpak has also launched brand-new recyclable paper-based solutions such as Honeycomb Paper Wrap – a bubble wrap alternative that is made from 100 percent die-cut kraft paper. This sits alongside Swiftpak’s bubble paper, another alternative to traditional bubble wrap.
As a well-known industry expert in the food and drinks sector, Swiftpak has additionally launched a temperature-controlled Vegan Thermal Liner that is made from 100 percent recyclable materials and has a positive CO2 balance – verified by 1,000 climate tests.
A carbon-neutral certified company
Sustainability is clearly a topic high on Swiftpak’s agenda, which is why it strived to become carbon neutral. This certification was achieved in the first quarter of 2022, showing Swiftpak’s commitment to maintaining the highest standards of sustainability at every level of business.
“At Swiftpak, we truly care about our impact on the environment,” says Craig Gulley, Swiftpak’s Managing Director. “By becoming a carbon-neutral business, we are taking an additional step to make a difference and creating a better tomorrow.”
Swiftpak’s sustainability commitment is witnessed not just through the certifications it has been awarded and its packaging innovations but also in its advances in the digital space. Last year, Swiftpak launched an online Stretch Wrap Calculator where businesses can input their existing stretch wrap figures and discover if a reduction in plastic use is possible. Previous results have shown that this can reduce waste by up to 74 percent. This goes hand-in-hand with Swiftpak’s established partnership with Ecologi, another Certified B Corporation, which allows customers to offset their paper packaging waste and lower their carbon footprint through the planting of trees directly on the portal. Swiftpak has so far planted almost 6,000 trees in a forest and has offset more than 420 tonnes of CO2e by sponsoring various projects such as producing electricity from wind power.
With more than 45 years’ experience, Swiftpak continuously finds new ways to combine sustainability and innovation to create a better tomorrow.
To find out more, visit swiftpak.co.uk
INDUSTRY VIEW FROM SWIFTPAK
How shops use psychology to influence your buying decisions
You might think that you only buy what you need, when you need it. But whether you are shopping for food, clothes or gadgets, the retailers are using the power of psychological persuasion to influence your decisions – and help you part with your cash.
If you think back, I’ll bet there’s a good chance that you can remember walking into a grocery store only to find the layout of the shop has been changed. Perhaps the toilet paper was no longer where you expected it to be, or you struggled to find the tomato ketchup.
Why do shops like to move everything around? Well, it’s actually a simple answer. Changing the location of items in a store means that we, the customers, are exposed to different items as we wander around searching for the things we need or want. This ploy can often significantly increase unplanned spending, as we add additional items to our baskets – often on impulse – while spending more time in the shop.
Buying on impulse
In fact, studies suggest that as much as 50 per cent of all groceries are sold because of impulsiveness – and over 87 per cent of shoppers make impulse buys.
While it is complicated and affected by many factors, such as a need for arousal and lack of self-control, it is known that external shopping cues – “buy one get one free” offers, discounts and in-store promotional displays, for example – play a key role.
An appealing offer can lead to a rush of temporary delight, and this makes it harder to make a rational buying decision. We’re overcome by the perceived value of the “saving” if we buy the item in the here and now – so we ignore other considerations such as whether we really need it. The need for instant gratification can be hard to ignore.
Bundling is another technique that retailers use to trigger impulse buying.
You’ve probably seen it quite often. Complementary products are packaged together as one product, with one price, which often provides a substantial discount. Game consoles, for example, are often sold together with two or three games, and grocery stores have “meal deal” bundles and even web pages dedicated to a whole range of bundle offers.
Shopping can be friend or foe
While these strategies can help to swell the profits of retailers, they can also contribute to problems for their customers.
Impulse buying can undoubtedly affect a consumer’s mental wellbeing. It increases feelings of shame and guilt, which in turn can lead to anxiety, stress and depression.
And it’s potentially even more serious when buying on impulse leads to excessive buying, especially if people spend money they don’t have.
But there are some positives, too.
Online shopping has been found to give a dopamine boost, as it is released into our brains when we anticipate pleasure. So while we wait for our purchases to arrive, we tend to feel more excited than if we had bought things in store.
If this pleasurable feeling is well managed, then there’s no harm in it. But, sadly, it doesn’t always end there. That fleeting feeling of pleasure can sometimes lead to the onset of a shopping addiction. This can happen when a consumer wants to continuously experience the feel-good “hit of dopamine”, so they fall into a pattern of buying more and more items until it gets out of control.
On the flip side of the coin, shopping can help restore a person’s sense of control.
When we’re feeling unhappy or anxious, we tend to think that everything is out of our control. But as shopping allows us to make choices – which shop to go to or whether we like an item – it can bring back a feeling of personal control and reduce distress. So it can be a more meaningful activity than many think.
Retailers can help us too
While retailers might not be keen to reduce the amount of shopping we do, they could, if they wish, help to influence our buying decisions more positively.
There is a pressing need to combat obesity in most countries of the world. That’s why the UK government has decided to restrict the promotions of unhealthy foods – those high in free sugars, salt and saturated fats – in prominent store locations from October 2022.
It’s a strategy that could help.
Removing tempting treats from the checkouts can help to reduce the amount of sugary foods that are bought – in some cases by as much as 76 per cent.
And a recent study found that by increasing the availability and promotions of healthier food options (such as stocking low-fat chips next to regular chips) – and making them more visible through positioning and clever use of signage – shoppers can indeed be encouraged to make better choices.
Ultimately, the key to resisting goods we don’t want, or need – and making healthy decisions – lies with us. It helps to be conscious of what we are doing while shopping. A good personal strategy is to try to browse less and use a shopping list instead – and try to only buy what’s on it. But be kind to yourself, because it can be easier said than done.
Cathrine Jansson-Boyd, Reader in Consumer Psychology, Anglia Ruskin University
This article is republished from The Conversation under a Creative Commons license. Read the original article.