Nudge theory

Colorado banned plastic bags from large retail stores at the beginning of 2024. A new state ordinance also prohibits restaurants and retail food establishments from using Styrofoam takeout containers. In Boulder, food shoppers have been paying 10 cents for every bag they need at checkout since 2013, with only paper and heavy-duty plastic bags available. Those fees were expanded this year to retail stores of all kinds and sizes. The Conversation interviewed Eleanor Putnam-Farr, an assistant professor of marketing at Rice University and co-author of “Forgot Your Bottle or Bag Again? How Well-Placed Reminder Cues Can Help Consumers Build Sustainable Habits,” about the challenges of changing people’s behavior – even when their intentions are good. How popular are plastic bag bans and taxes? Laws like Colorado’s are popular. Twelve states, plus Puerto Rico, and more than 300 municipalities, including Philadelphia, have banned plastic bag use by consum...

Back-to-school sales are underway, and people across the country will be shopping online to fill up backpacks, lockers and closets – and they’ll be taking advantage of free returns. Making it easy for customers to return items at no cost started as a retail strategy to entice more people to shop online. But it’s getting expensive, for both retailers and the planet. In 2022, retail returns added up to more than US$800 billion in lost sales. The transportation, labor, and logistics involved raised retailers’ costs even higher. Product returns also increase pollution, greenhouse gas emissions and waste in landfills, where many returned products now end up. So how can retailers fix this problem and still provide quality customer service? We conduct research in reverse logistics, focusing primarily on the intersection of retail returns and customer behavior. Here are some insights that can help reduce the abuse of free returns and lower costs without losing...