Target, distance, and valence: Unpacking the effects of normative feedback

Abstract

People constantly receive information about their performance relative to others. Estimating these effects is complicated because, as we show, normative feedback includes several dimensions: Target (e.g., a reference group of average versus exemplary performers), Distance (e.g., being near versus far from a benchmark), and Valence (e.g., being better or worse than the benchmark). In Study 1, we randomly assign households to receive no feedback or feedback comparing their energy consumption to either their average or most efficient neighbors. Households compared to average neighbors decreased electricity usage by 6%, but those compared to efficient neighbors increased consumption by 4%. We decompose these effects into the separate influences of Target, Distance, and Valence. In Studies 2 and 3a-c, we randomly assign normative feedback to isolate the independent effects of Distance and Valence. Additionally, we find evidence for the mediating effect of motivation: The more dispiriting the feedback, the worse the subsequent performance.