Prize-linked savings accounts : combining virtue and vice to make savings more enticing

Purpose: The purpose of this paper is to investigate whether moral licensing – that is, doing something morally dubious after doing the “right” thing – influences the attractiveness of an existing virtue–vice bundle. Design/methodology/approach: A prize-linked savings (PLS) account that combines a savings (certificate of deposit) and a probabilistic component (lottery) was examined. In two online experiments, the level of moral license offered by the PLS was manipulated through what institution offered the PLS or a lottery alternative. Findings: When the source of the PLS account was more moral (Study 1) or the source of the lottery was less moral (Study 2), the interest in the PLS increased. Research limitations/implications: Moral licensing plays a role in making virtue–vice bundles appealing and supports that the need for moral license can be used to increase interest in more morally acceptable behaviour. However, manipulating moral license in the field is complex and requires further research. Practical implications: Practitioners may increase PLS savings rates via messaging that emphasises how the saving aspect offers the customer the license to indulge in the gamble; similar to how McDonald’s sold the idea of indulging in fast food with “You deserve a break today”. Originality/value: This paper shows that the attractiveness of the PLS virtue–vice bundle is sensitive to the moral acceptability of the components, suggesting their ability to offer the consumer moral license to engage in a socially sanctioned action is part of their appeal. Also, demonstrating that the desire for moral license can be used to encourage positive behaviour.