Working paper
Nudging Healthier Food Choices: A Collaborative Field Experiment between Manufacturers and Retailers [JMP]
Joint with Paulo Albuquerque and Pierre Chandon
Abstract: In this paper, the authors evaluate the impact of novel promotional interventions on the healthiness of food purchases, stemming from a collaboration between several food manufacturers and a large retail chain. The intervention involved visible end-of-aisle displays promoting two to five food products from different manufacturers, selected for their superior nutritional value. Each display focused on a common theme (e.g., “let's reduce sugar” or “let's pay attention to salt”), with price discounts offered on some of the products. We apply the difference-in-difference estimation method to investigate the change in sales of the promoted products and the overall food category. Controlling for price, the results reveal that the manufacturer-retailer collaboration aimed at promoting healthier food choices was effective in increasing the relative sales of the promoted products across most food categories. This indicates a “win-win” outcome for both consumers and manufacturers, achieved through price promotions and informational nudges. Additionally, we estimate a choice model to separately assess the effects of price promotions and informational nudges, using individual-level data on margarine purchases. We find that price promotions and informational nudges increase the purchase of treated products for most categories. Specifically the informational nudges motivate consumers to switch from smaller (e.g., 255g) to larger (e.g., 510g) sizes of the healthier products. Overall, this research demonstrates that collaborations between food manufacturers and retailers can lead to healthier purchase choices by consumers, aligning the goals of manufacturers and retailers while enhancing public health.