Research About "Low-Response" People

Research about persuading people to pay NYC parking tickets has implications for business communicators—and raises questions of character. The study, published in American Economic Journal: Economic Policy, found that reminder letters get more people to pay fines, but this approach doesn’t work for everyone.

People who respond least to the “nudges,” including notices about greater fines, happen to be those least likely to pay in the first place. Referred to as “low-response” types, these folks need sterner warnings. As one author says, “It’s only when they get this legal-looking letter that says, ‘We are in default judgment against you; you may get towed.’” Most interesting, people in the “low-response” groups tend to be from historically “disadvantaged populations—lower income, less education, and higher proportions of Black or other racial groups.”

The authors acknowledge that their recommendations ”would not be based on individual characteristics (e.g., income, race, neighborhood) but only on past behavior–while statistically helping traditionally underserved populations to avoid penalties with a nonintrusive nudge. We further note that, in proposing this policy, we are not assuming that the low baseline response rates of the LRs are suboptimal. Rather, we are pointing out a lower-cost policy that could induce more timely payments from the LRs without imposing larger penalties on them.”

Still, this study raises questions about character, for example, compassion, integrity, and accountability. Am I the only one cringing at the term “low-response type” and use of “LRs”? Is it right to threaten one group but not another, even if it’s based on past behavior? True, people should pay fines, but we have deeper societal issues and inequities to consider. How do people in these groups view rules and law enforcement? Are people in lower-income neighborhoods or with cars in greater disrepair more likely to get tickets in the first place?

If, as the authors say, their proposed policy is helpful to avoid “imposing larger penalties,” why not simply eliminate fines that some people can’t afford to pay? Our local library has stopped charging late fees so they don’t discourage reading and cause a disparate impact. The authors do propose eliminating later, greater fines that have little impact and most affect people in historically disadvantaged populations. Theoretically, data can also be used for a sliding fee scale according to income level—or perhaps the value of one’s car.

The simpler takeaway for business communication students is the relevance of knowing your audience. As study authors say, NYC already has the data and can customize approaches. We do teach analyzing an audience and tailoring a message. But students may discuss the ethics of using data and taking different approaches in these types of situations.

Accommodations and Persuasion in the PA Debate

The Pennsylvania Senate Debate between John Fetterman and Dr. Mehmet Oz illustrates several interesting points for business communication students. One is the art of not answering questions, perhaps best illustrated by the first question, an opportunity to describe the candidates’ own qualifications, which they spent criticizing their opponent.

Another example is how the debate was structured to accommodate John Fetterman’s auditory processing issues, five months after he suffered a stroke. Fetterman kicked off the debate by admitting his illness and saying, “I had a stroke. He’s never let me forget that.” His speech was sometimes halting and repetitive, and he confused a few words. Repeating his doctor’s clearance, he tried to persuade voters that he is fit to serve.

Hot topics about abortion and fracking were discussed at length, with candidates balancing their party affiliations and ideals. At some point, Dr. Oz said, “I want women, doctors, local political leaders, letting the democracy that’s always allowed our nation to thrive to put the best ideas forward so states can decide for themselves.” This inspired jokes and “Inside Amy Schumer” segments that I won’t link (because they’re NSFW).

Students will find more to discuss about the candidates’ presentation skills, responses to questions, and persuasive communication.

Comparing Company Statements About Kanye West

Since his anti-semitic posts and after pressure from consumers and industry leaders, companies are dropping ties with Kanye West. Here are several statements for students to compare. These messages could be considered positive or bad news, but they are all persuasive. Which demonstrate more courage and compassion?

MRC Entertainment: Company leaders wrote a personal note about their decision to stop distribution of a Kanye West documentary. They explain his flawed logic about Jewish people and call out others for being silent.

Balenciaga: The fashion company gave only a short statement to WWD: “Balenciaga has no longer any relationship nor any plans for future projects related to this artist.”

CAA: Similarly, CAA Talent Agency reportedly dropped West as a client but gave no statement.

United: This talent agency’s CEO, Jeremy Zimmer, was more vocal. In an email, he encouraged staff to boycott Kanye West.

Adidas: After much pressure, including a dropping share price and a tweet and petition from the Anti-Defamation League, Adidas finally announced an end to their partnership. The Adidas statement identified what Kanye (“Ye”) did: “[H]is recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness.” But the rest of the statement focuses on the financial impact. Fun fact: Adi Dassler, the founder of Adidas, was a member of the Nazi party.

Gap: In as short statement, Gap announced the end of its Yeezy partnership. Posted the same day as Adidas’s announcement, the message doesn’t mention that West ended the relationship in September for breach of contract. The current decision is to stop selling products that were in the pipeline.

Resume Cakes and Other Attention-Getters

Every couple of years an attention-getting resume goes viral, and students might wonder what they could do to get eyes on their job application. This time, we see a cake with a resume screen printed in the icing, sent to Nike headquarters.

The lesson for students is the same: creative approaches for creative jobs might work but are probably not appropriate for more conversative positions or industries. I also wonder, despite the reports on programs like Good Morning America, how often these ideas turn into job offers. A couple have, but I imagine that companies don’t want to encourage a lot of cakes, which, because of safety concerns, are probably discarded.

This story doesn’t have a happy job ending but became about the Instacart driver who carried the cake—and her 8-month-old son—around Nike’s campus to hand deliver the cake. It’s inspiring to see the lengths people will go for their dream job and how determined people can be. But I would encourage students to find other ways to differentiate themselves in the job market.

Comparing Donation Webpages

How do nonprofit organizations structure webpages to solicit Hurricane Ian donations? A Google search for “how to donate for hurricane ian” showed these top three ads:

Red Cross: The boldest of the three, this page shows users how to donate but provides no “why.” The cover image, palm trees blowing in the wind, could be more original.

Salvation Army: Although the Red Cross palm tree image lacks originality, the Salvation Army’s images are generic, showing volunteers with a truck and loading boxes. The call is for other recent hurricanes—not just Ian. Users can find information, including how their donation will be used, in the “Questions” box.

American Humane: Dedicated to rescuing pets, this smaller organization explains its work. Several photos show cute cats and dogs, and text explains the urgency and how quickly volunteers are responding.

Students will find more differences among these three organizations and their favorite nonprofit. An interesting activity could be guessing the organization name, given their webpage without identifying information.

Victoria's Secret Admits "Toxic Culture"

A song has challenged Victoria’s Secret in a way I haven’t seen since “United Breaks Guitars.” Already struggling because of changing customer preferences, a Hulu documentary, and leadership ties to Jeffrey Epstein, the brand responded to try to repair its reputation.

Jax wrote the song for the girl she babysits, and now it’s 50 on Billboard’s Hot 100 songs. Viewed more than 30 million times, “Victoria’s Secret” speaks to young people about unrealistic body images. Jax demonstrates vulnerability by talking about her own struggles, including how she “stopped eating.” She wrote lyrics the company couldn’t ignore: “I know Victoria's secret / And girl, you wouldn't believe / She's an old man who lives in Ohio / Making money off of girls like me.”

The company responded with two statements. The first, an Instagram post, is a clever handwritten note from the CEO, complimenting the song and promising to do better. The second, below, is a spokesperson’s statement, which illustrates a classic crisis communication strategy: distancing yourself from the issue. Referring to the past, the writer remind us how far Victoria’s Secret has come. In my view, the company demonstrates some accountability but could offer more compassion.

For her part, Jax demonstrates integrity in her video response. She focuses on her intent, which wasn’t to “take down a brand,” and she invites others to share their stories.

We’ll see how Victoria’s Secret fares in the end. Some believe the brand hasn’t changed enough or took too long to be more inclusive of different body types. Regardless, the situation and response are good crisis communication and character examples.

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At Victoria's Secret, we make no excuses for the past. We know the old VS lost touch with many people, projected a damaging standard of beauty, and perpetuated a toxic culture.

Today, we are proud to be a different company, with a new leadership team and mission to welcome, celebrate, and champion all women. We have made much progress, but recognize this transformation is a journey, and our work continues to become the Victoria’s Secret our customers and associates deserve — where everyone feels seen, respected, and valued.

We’re always open to engage with those looking to share feedback as we continue our transformation.

Columbia’s Ranking, Data, and Communication Issues

The news of Columbia University’s tumble in college rankings from 2 to 18 offers business communication lessons for reporting data—and for persuasive arguments. In February 2022, Professor of Mathematics Michael Thaddeus identified discrepancies in how the Columbia reported data for U.S. News’s annual list. His analysis resulted in a persuasive argument with the following main points summarized in the introduction:

In sections 2 through 5, we examine some of the numerical data on students and faculty reported by Columbia to U.S. News—undergraduate class size, percentage of faculty with terminal degrees, percentage of faculty who are full-time, and student-faculty ratio—and compare them with figures computed by other means, drawing on information made public by Columbia elsewhere. In each case, we find discrepancies, sometimes quite large, and always in Columbia’s favor, between the two sets of figures.

In section 6, we consider the financial data underpinning the U.S. News Financial Resources subscore. It is largely based on instructional expenditures, but, as we show, Columbia’s stated instructional expenditures are implausibly large and include a substantial portion of the $1.2 billion that its medical center spends annually on patient care.

Finally, in section 7, we turn to graduation rates and the other “outcome measures” which account for more than one-third of the overall U.S. News ranking. We show that Columbia’s performance on some, perhaps even most, of these measures would plunge if its many transfer students were included.

New reports about Columbia’s fall credit Thaddeus’s analysis. The argument serves as an excellent example for our students, who might also explore their own views about the college rankings. In addition to data integrity, Thaddeus questions the value of these rankings and the influence they have on students’ college choice.

Students can also analyze the university’s response. In a statement posted on September 9, Provost Mary Boyce admitted, “we had previously relied on outdated and/or incorrect methodologies.” She also expressed “regret”:

The Columbia undergraduate experience is and always has been centered around small classes taught by highly accomplished faculty. That fact is unchanged. But anything less than complete accuracy in the data that we report—regardless of the size or the reason—is inconsistent with the standards of excellence to which Columbia holds itself. We deeply regret the deficiencies in our prior reporting and are committed to doing better.

The statement is more about future plans, for example, participating in the Common Data Set initiative, than about acknowledging wrongdoing. A fuller apology, including the impact of the inaccuracies and posted earlier than just days before rankings were published, would have demonstrated more humility and integrity.

RadioShack Takes Risks in New Ad Campaign

RadioShack launched a new advertising campaign that includes sexual and other questionable references. The situation is an interesting example of persuasive communication—catchy and potentially offensive.

A Wall Street Journal article describes franchisees’ mixed reactions to the approach as well as the company’s new cryptocurrency exchange platform. As the majority franchisee, Bob Wilke, president of HobbyTown Unlimited complained, “This is so damaging to their integrity, and the reputation of the brand. We just do not want to be associated with that type of marketing.”

The company follows a sad story line, with 8,000 at its prime in 1999, filing for bankruptcy in 2015 and 2017, getting acquired, and limping along with 110 stores today. Looking at RadioShack’s history, we do see a different picture from the current marketing. This Business Insider article chronicles ads from the company’s inception in 1921, when products were sold primarily through catalogs.

Abel Czupor, the new marketing head, responded to the controversy: “Every company that has lovers also has haters, but that just means that marketing is working. And I would rather have lovers and haters than not having anyone that knows about the brand.” Edgy marketing attracts attention, but it’s not always positive. Business communication students can analyze the company’s roots and progression to decide whether the current strategy might work or only drag the brand further down.

Tip Menus Increase Tips

A Stanford Business researcher found that tip menus in NYC taxi cabs increase the amount people tipped unless the suggestions are too high. Percentages offer options without having to calculate the dollar amount, which seemed to appeal to riders.

In his working paper, Kwabena Baah Donkor theorizes that “the cost of deviating from the norm tip and opting out of the default tip menu are both high relative to the taxi fare.” Typically, people choose conforming and will take the easier path. Both are reasons to select a given tip percentage, assumed to be what others do in a similar situation.

Of course, this research is useful for other tipped workers. Students might consider other applications: in what other contexts could a menu of options simplify decision making and ultimately increase revenue or further business goals?

Arguments About Student Loan Forgiveness

Students might be interested to analyze persuasive messages about the new U.S. student loan forgiveness program. Political pundits, economists, journalists, my sister—everyone has an opinion on the plan, which the government frames as “The Biden-Harris Administration's Student Debt Relief Plan.”

Today’s Wall Street Journal editorial board op-ed argues that the plan will benefit universities, giving them permission to raise tuition further.

In a New York Times op-ed, Paul Krugman takes a broader view and considers the impact on the economy.

Students can find additional arguments—and will have their own ideas. As for all arguments, identifying logical arguments, emotional appeals, and credibility illustrates an author’s persuasive communication strategy. Students also will identify rhetorical devices, organizational approaches, and logical fallacies. For example, the WSJ article refers to “Ivory Tower progressives,” and Krugman uses questions throughout his article.

Nuclear Preparedness Video Fail

A New York City video about what to do during a nuclear disaster is criticized as unhelpful and lacking context. Mayor Eric Adams approved the PSA, part of a series about how to handle emergencies, such as extreme heat and flooding. Those videos received a few hundred views, while this one garnered more than 800,000, so officials consider it a success, but the reaction is mocking.

The video narrative says, “So there’s been a nuclear attack. Don’t ask me how or why; just know that the big one has hit.” Critics say that these types of service commercials typically start with some public announcement telling us what has or could happen. Mayor Adams said that the video was planned ”after the attacks in the Ukraine, and O.E.M. took a very proactive step to say, let’s be prepared,” and he “thought it was a great idea.” But we have no introduction. We’re left to worry: is the Ukraine facility an imminent danger?

Video presentation and quality count. Oddly, the YouTube post starts with an ad for a survival food kit. Then, the 1.5-minute video offers simplistic suggestions: get inside, stay inside, and stay tuned. Experts also question the advice. As one says, “get inside” isn’t practical when your house is gone, which will be the more likely case.

This situation may be the result, as the New York Times article suggests, of using a small, inexperienced production company. I wonder whether more context and more research, including focus groups, would have helped. Regardless, this is a communication failure.

Google Employee Petition

Google employees are petitioning for the company to stop collecting abortion-related data. The concern comes after Roe v. Wade was overturned, which could put women who search for abortion services in jeopardy.

Launched in January 2021, Alphabet Workers' Union is driving the petition, now signed by more than 650 employees. The group is asking Google to refrain from turning data about searches and illegal abortions over to authorities, as Facebook did; to omit “misleading ‘pregnancy crisis centers’” in search results, including maps, which often lead to anti-abortion centers; to stop donations and lobbying entirely; and more.

As tech employee activism becomes more prevalent, employees feel more empowered to demonstrate courage. I don’t see the entire petition, but I wonder whether employees are asking for too much, particularly an end to all lobbying and political donations. A more focused, realistic request of actions that show the company’s leadership among tech companies could be more effective.

Although the petition was sent to CEO Sundar Pichai and other executives on Monday, the group hadn’t received a response by Thursday. Company leaders are called on to demonstrate integrity—transparency in communication and consistency with company principles. This is also an opportunity to lead with humility and to show a willingness to be vulnerable because this is a highly sensitive issue with no clear answers. Although a difficult situation to address, leaders must respond, particularly before the story becomes about the lack of response.

Meta Explains Chatbot Offense

Meta’s new artificial intelligence software is already failing. The chatbot, BlenderBot 3, seems to believe Jewish conspiracy theories and that President Trump won the 2020 election, as shown in the conversation here.

Meta is focusing on BlenderBot 3’s pilot status and requires users to accept a statement before they interact:

I understand this bot is for research and entertainment only, and that is likely to make untrue or offensive statements. If this happens, I pledge to report these issues to help improve future research. Furthermore, I agree not to intentionally trigger the bot to make offensive statements.

The company describes BlenderBot 3 as a “state-of-the-art conversational agent that can converse naturally with people” and claims that feedback will improve how the bot interacts:

Since all conversational AI chatbots are known to sometimes mimic and generate unsafe, biased or offensive remarks, we’ve conducted large-scale studies, co-organized workshops and developed new techniques to create safeguards for BlenderBot 3. Despite this work, BlenderBot can still make rude or offensive comments, which is why we are collecting feedback that will help make future chatbots better.

As we learned from other messages this past week, company leaders are pushing back on complaints and asking customers to be patient. We’ll see whether Meta’s strategy of managing expectations turns out better for Blender than Microsoft’s response to complaints about its 2016 chatbot, which was removed after making anti-Semitic, racist, and sexist comments. Meta asks us for feedback, but I’d rather get offended by humans and invest my time in educating them instead of a bot.

CEOs’ Direct Talk

A Wall Street Journal article this week, “CEOs Ditch the Warm Talk as Economy Shows Signs That ‘Winter’s Coming,’” provides several examples of leaders’ direct communication. When we analyze bad-news messages in business communication, we consider the organizational strategy and, more important. tone and content choices. The current wave is for CEOs to warn employees about layoffs and prepare them for tough times ahead.

Some CEOs use this direct strategy to manipulate employees to return to offices, but others are demonstrating integrity. A CEO who asks employees to “do more with less” is being transparent. Employees may be motivated by this type of talk—either to work harder and cut costs or to leave the company. If employees leave, the CEO might be OK with that, hoping to reduce headcount or hire new workers who are more productive and have different skills.

Although the article title refers to declining “warm talk,” I would argue that the talk is compassionate—honestly preparing employees so they can make decisions about how and whether they want to continue working for the company.

Images source.

Cracker Barrel’s Minimal Response to Burger Criticism

Cracker Barrel added the plant-based Impossible Burger to its menu and faced more backlash than expected. An executive explained the change:

"Our new breakfast menu innovations provide a personalized experience with delicious breakfast choices to satisfy every taste bud—whether guests are nostalgic for homestyle food, hungry for a nutritious plant-based option or have a craving for a sweet treat. At morning, noon or night, we want guests to enjoy craveable breakfast favorites at a compelling value.”

But many customers responded negatively:

• "Don't ever try to push that crap in my direction. Stick to the basics that made your franchise a success,"

• "Are you kidding me? Who do you think your customer base is? I still order the double meat breakfast, and it's not even on the menu anymore."

• "You just lost your customer base. Congratulations on being woke and going broke..."

I don’t see much in response from Cracker Barrel, except the picture above on Twitter. A company spokesperson did release this statement to NBC News:

"We appreciate the love our fans have for our all-day breakfast menu. At Cracker Barrel, we’re always exploring opportunities to expand how our guests experience breakfast and provide choices to satisfy every taste bud—whether people want to stick with traditional favorites like bacon and sausage or are hungry for a new, nutritious plant-based option like Impossible Sausage."

Maybe the company gave fuller responses on other social sites, or leaders may have decided to stay out of the fray and let people decide what to order. They did enough testing—in 50 restaurants—to know the market. With the hand-shaking image, they accept responsibility and invite people to just get along. This could be an example of a minority group of outliers making noise, but ultimately, going back to their favorite restaurant as always.

Instagram Responds to Criticism About Video Strategy

When the Kardashians are unhappy on Instagram, everyone is unhappy (apparently). Called the Tiktokification of Instagram (owned by Meta), the company added videos and is suffering backlash from users.

Instagram CEO Adam Mosseri responded to critics—on video. The author of a Vanity Fair article, “Mark Zuckerberg and Adam Mosseri Need You All to Stop Being Big Babies,” called the leaders “uncharacteristically unapologetic.”

We do see and hear pushback. Mosseri said the “full-screen experience” was only a test and needs work. But he also said, “I need to be honest. I do believe that more and more of Instagram will become video over time.” He acknowledged “a lot of change,” while trying to reassure people that photos will always be supported.

Mosseri provides evidence based on what people prefer online (not necessarily what they say they want in this moment). Mosseri demonstrates accountability for the changes but not a lot of compassion.

Clearly, Meta isn’t backing off its strategy to compete with TikTok. In the meantime, we’ll see how well company leaders persuade users to stick with the app.

Blame Game for United Airlines

United Airlines CEO Scott Kirby apologized for blaming regulators for contributing to the airline’s flight delays. In a memo to employees, COO Jonathan Roitman, who has been removed from his role, indicated that FAA actions caused half of the delays:

“We estimate that over 50% of our delay minutes and 75% of our cancels in the past four months were because of FAA traffic management initiatives—those have been particularly acute in Newark and Florida. These ATC challenges can not only disrupt the schedule, but they also cause us to burn crew time throughout the month.”

The FAA responded by blaming the airline for mismanaging operations during weather conditions. After that, on an earnings call, Kirby said, “I apologized to [Transportation Secretary Pete] Buttigieg because that is not what we intended.”

All this comes after Buttigieg criticized the airlines for cancelling flights and not offering refunds. This is a complicated issue, likely caused by several factors, including staffing issues on both sides. Although Kirby didn’t take full responsibility, he demonstrated some humility and vulnerability in admitting that attacking regulators is not a useful argument, particularly when an internal memo goes public, which is always to be expected.

New Uber Document Leaks

Internal Uber documents from 2013 - 2017 prove what many have thought about the company under the leadership of founder and former CEO Travis Kalanick. More than 124,000 illustrate how Uber, according to a Guardian article, “louted laws, duped police, exploited violence against drivers and secretly lobbied governments during its aggressive global expansion.” Company executives admitted to acting like “pirates.” One wrote, “We’re just f—ing illegal.”

In Building Leadership Character, I profiled Kalanick’s leadership as a example of failing humility. As a dimension of character, humility is being “rightsized”—believing you’re neither below nor above others. Bragging about skirting the law is an obvious illustration of a lack of humility.

A spokesperson for Kalanick responded to what is called the “Uber files.” The message itself demonstrates failing humility, including an inability to learn from mistakes. (Of course Kalanick may face legal in addition to image challenges.) Instead of taking responsibility, the spokesperson questions the authenticity of the documents and tries to distance Kalanick from them:

In pressing its false agenda that Mr Kalanick directed illegal or improper conduct, the ICIJ [International Consortium of Investigative Journalists] claims to have documents that Mr Kalanick was on or even authored, some of which are almost a decade old.

As a crisis communication strategy, distancing is often effective. Uber employs the same strategy in its statement, for example, “When we say Uber is a different company today, we mean it literally: 90 percent of current Uber employees joined after Dara became CEO.” The company admits mistakes and uses that fact as the impetus for change: “It’s also exactly why Uber hired a new CEO, Dara Khosrowshahi, who was tasked with transforming every aspect of how Uber operates.”

Business communication students can analyze both responses as crisis and persuasive communications. Which is more effective in restoring image?

Image source.

TikTok Tries to Reassure Senators

Two letters illustrate persuasive communication for students to analyze. The first is a letter from nine republican U.S. senators following a BuzzFeed article, “Leaked Audio From 80 Internal TikTok Meetings Shows That US User Data Has Been Repeatedly Accessed From China.”

The second is TikTok’s response. After a few introductory paragraphs (which say very little, in my opinion), CEO Shou Zi Chew tackles each question in sequence.

As we might expect, some responses are clearer than others. In a fairly obvious obfuscation, Chew doesn’t respond to sub-questions (a, b, c, etc.) individually. Question 9, about Beijing parent company ByteDance and a newly named subsidiary, is particularly confusing.

Despite company efforts, at least one senator believes TikTok should testify before Congress.

Image source.

More Documents Show McKinsey's Role in Promoting Drugs

McKinsey has already paid close to a $600 million settlement for its consulting work with Purdue Pharma that fueled the opioid crisis. Now, as part of that investigation, new evidence has emerged about its role with other companies.

For example, McKinsey worked with Endo, which ramped up sales as part of a “blitz” recommended by McKinsey. In some cases, McKinsey suggested focusing on more potent products and, as we saw with Purdue, targeting physicians and developing aggressive sales incentive programs.

Endo sold Opana, which became an injected street-drug and caused an HIV outbreak. Still, McKinsey suggested ways to increase sales. McKinsey also recommended ways to avoid taxes, which, although technically legal, President Obama called tax “abuse.”

McKinsey promoted itself as having “in-depth experience in narcotics.” In one document, McKinsey boasted, “We serve the majority of the leading players.” That persuasive language has come back to bite the company.

Examples from the McKinsey document trove are included in 11th edition of Business Communication and Character to illustrate persuasive communication, writing style, and a lack of integrity. Newly released documents illustrate internal debate; for example, one consultant wrote, “We may not have done anything wrong, but did we ask ourselves what the negative consequences of the work we were doing was, and how it could be minimized?”

McKinsey may have hoped that the large settlement and public email to staff at the time would have ended the company’s trouble. But more criticism and lawsuits may be looming.