Type: Research Report
Topic: Adoption
Country: Uganda
Many people do not purchase products that appear beneficial. For example, the price of an efficient cookstove can be less than a few months’ savings on fuel. If liquidity constraints, present bias, and poor information on fuel savings and stove durability are barriers, then a novel sales offer combining a free trial, time payments, and the right to return the stove at any time should increase sales. In a randomized trial, this sales offer increases sales of an efficient charcoal-burning stove in Kampala, Uganda, from 5% to 45%. We provide additional evidence that both liquidity constraints and imperfect information were important barriers.