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Incentivizing Healthy Food Choices Using Add-on Bundling: A Field Experiment


8 nov. 2023   11h00 — 12h00

Nymisha Bandi Université McGill, Canada

Nymisha Bandi

Présentation sur YouTube.

How can retailers incentivize customers to make healthier food choices? Price, convenience, and taste are known to be among the main drivers behind such choices. Unfortunately, healthier food options are often expensive and not adequately promoted. Interestingly, we are observing recent efforts to nudge customers toward healthier food. In this paper, we conducted a field experiment with a global convenience store chain to better understand how different add-on bundle promotions influence healthy food choices. We considered three types of add-on bundles: (i) an unhealthy bundle (when customers purchased a coffee, they could add a pastry for $1), (ii) a healthy bundle (offering a healthy snack, such as fruit, vegetable, or protein, as a coffee add-on for $1), and (iii) a choice bundle (the option of either a pastry or a healthy snack as a coffee add-on for $1). In addition to our field experiment, we conducted an online lab study to strengthen the validity of our results. We found that offering healthy snacks as part of an add-on bundle significantly increased healthy purchases (and decreased unhealthy purchases). Surprisingly, this finding continued to hold for the choice bundle, that is, even when unhealthy snacks were concurrently on promotion. However, we did not observe a long-term stickiness effect, meaning that customers returned to their original (unhealthy) purchase patterns once the healthy or choice bundle was discontinued. Finally, we show that offering an add-on choice bundle is also beneficial for retailers, who can earn higher revenue and profit.

Olivier Bahn responsable
Maxime Cohen responsable


Activité hybride au GERAD
Zoom et salle 4488
Pavillon André-Aisenstadt
Campus de l'Université de Montréal
2920, chemin de la Tour

Montréal Québec H3T 1J4

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