Effectiveness of front-of-package labels on choice healthiness in partially-labeled product assortments
(A2024-119676)

AUTHORS

David Olk, University of Groningen; Koert van Ittersum, University of Groningen; Tammo Bijmolt, University of Groningen; Mike Palazzolo, UC Davis Graduate School of Management

ABSTRACT

Obesity is a growing threat to consumers and healthcare systems worldwide. As consumption is largely influenced by consumers’ choices in supermarkets, front-of-package nutrition labels were introduced to motivate healthier choices at the point of sale. Previous research found that front-of-package nutrition labels can motivate healthier choices in laboratory studies, but these effects are much weaker in field studies. We aim to help understand this finding using 18 months of sales data from a field study of a major Dutch retailer and a simulated online shopping trip. Specifically, we plan to determine the critical mass of labeled products necessary for front-of-package nutrition labels to lead to healthier choices while incorporating product category and consumer characteristics. Thereby, we also identify situations in which it is beneficial for producers to adopt a label for their products. These insights have several contributions for researchers, policymakers, and practitioners.