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Retailers increasingly use behavioral insights to guide consumer choices, balancing profit objectives with the promotion of healthier and more responsible consumption. This presentation discusses how promotional tactics such as bundling, discounting, and choice architecture can encourage healthier choices. By combining insights from behavioral economics and operations management, we aim to develop a framework for socially responsible retail practices that remain economically viable over time.

In the first part of the presentation, we explore how bundling incentives can encourage healthier food choices in a convenience store setting and examine their impact on retailer profitability. The second part discusses the relative effectiveness of bundling versus discounting in promoting healthy and unhealthy food choices, based on evidence from a field experiment. Ultimately, this presentation contributes to the broader field of socially responsible retailing by proposing interventions that simultaneously support consumer well-being and enhance retailer profitability.

(Joint work with Nymisha Bandi and Maxime Cohen)