The Impact of Retail Pricing on Overeating and Food Waste
Lead Research Organisation:
Loughborough University
Department Name: Business and Economics
Abstract
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Organisations
Publications
Chakraborty
(2010)
Go Regular! Who Gains From Large-Size Soda Bans?
in INFORMS Marketing Science Conference Proceedings
Dobson P
(2010)
For a Few Cents More: Why Supersize Unhealthy Food?
in Marketing Science
Dobson Paul W.
(2010)
Fattening Competition
in INFORMS Marketing Science Conference Proceedings
Eitan Gerstner (Author)
(2010)
Dangerous pricing : impact on obesity and food waste
in INFORMS Marketing Science Conference Proceedings
Fruchter G
(2010)
Fee or free? How much to add on for an add-on
in Marketing Letters
Paul Dobson (Author)
(2010)
Wasteful pricing
in INFORMS Marketing Science Conference Proceedings
| Description | The research has made both theoretical and empirical contributions to our understanding as to why the pricing of food and particularly the use of special offers to encourage purchases in greater volumes in supermarkets, restaurants and other food vendors may contribute to excessive food purchasing by consumers that results in excessive eating (so exacerbating health and social problems relating to obesity) or food waste (so exacerbating environmental costs of disposing of wasted food in landfill sites). The research has produced policy proposals and advice for consumers and businesses to help alleviate the economic and social costs for the public benefit. |
| Exploitation Route | The research findings have attracted considerable press and broadcast media attention to help make the public more aware of the health and environmental dangers resulting from excessive food purchasing exacerbating obesity problems and increasing household food waste. Discussions with Tesco PLC highlight their concerns as the UK's leading retailer of the need to ensure that food pricing does not distort consumer purchasing behaviour and is seen as fair and appropriate. |
| Sectors | Agriculture, Food and Drink,Environment,Healthcare,Retail |
| URL | http://www.uea.ac.uk/mac/comm/media/press/2012/November/supermarkets-offers-paul-dobson |
| Description | The research project has demonstrated how the way that food sellers price difference units or amounts of food, encouraging consumers to buy more rather than less, can result in socially-harmful excessive food purchases that encourage consumers to eat too much or waste food not consumed. The first immediate impact has been to raise public awareness of this problem and the dissemination of the project findings through the national press and broadcast media, as well as other forums like public lectures, has helped serve this purpose. More direct impact has been made through discussions with industry participants. Here the challenge is finding win-win solutions that benefit the public as well as the industry participants. As an illustration, Tesco, as the UK's leading supermarket retailer, has made a move towards adapting the use of multi-buy special offers on highly perishable fresh salad products in a way that is less likely to result in food waste of such products, such as using offers like "buy one get one later", where a voucher is provided to the customer so that they do not need to take the addition "free" product at the time of purchase but can pick it up on another date - which benefits the shopper in reducing waste but also the retailer by encouraging the shopper to come back to the store. This research project and the discussions with managers at Tesco PLC provides support and encouragement for the use of such innovative pricing practices which can deliver win-win solutions but just as importantly makes them aware that the disclosure of our findings in raising public awareness will impact on consumer behaviour and result in negative sentiment unless actions are taken to alleviate the problem of pricing in a way that steers consumers to excessive and wasteful food purchasing. |
| First Year Of Impact | 2011 |
| Sector | Agriculture, Food and Drink,Retail |
| Impact Types | Societal,Economic |
| Description | Reference in Public Health England report "Sugar Reduction: The Evidence for Action" - October 2015 |
| Geographic Reach | National |
| Policy Influence Type | Citation in other policy documents |
| Impact | The report by Public Health England provides evidence on the adverse health effects of overeating sugary products and the need to curb sugar consumption amongst UK consumers. Reference is made to this ESRC project on page 18, figure 6, in relation to "Price Promotions", where it quotes the ESRC project as "Promotional bias towards discounting sugary food items and fatty and sugary items in UK supermarkets.In particular, 'buy one get one free' deals are heavily skewed towards less healthy products (source: Economic and Social Research Council)", which is quoted from http://www.esrc.ac.uk/news-events-and-publications/evidence-briefings/food-price-promotions-and-public-health/ |
| URL | https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/470179/Sugar_reduction_The... |
| Description | Contribution to Telegraph newspaper article on "How did Britain get so Fat?" published on 26 February 2016 |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Media (as a channel to the public) |
| Results and Impact | Contribution to a Telegraph newspaper article written by Tom Rowley and Ashley Kirk, titled "How did Britain get so fat?" and published on Friday 26 February 2016. The article quotes Professor Dobson and the research findings of the ESRC project: 'According to a 2011 study by the University of East Anglia, supermarkets are more likely to promote unhealthy foods. Foods on special offer were 20 percent more likely to have red "traffic light" labels for high sugar and 50 percent more likely to have the same designation for high fat than non-promoted products. "Often the most frequently promoted products are high in combinations of concerning constituents such as fresh desserts and chocolate, which have high levels of both sugar and fat," said Prof Paul Dobson, head of the university's Norwich Business School.' In addition, the article provides an infographic representation of evidence drawn from the ESRC study on which unhealthy food products are highly price promoted. |
| Year(s) Of Engagement Activity | 2016 |
| URL | http://s.telegraph.co.uk/graphics/projects/fat-Britain-obesity/ |
| Description | Participant in panel discussion for 30 minute TV programme about obesity and sugary food consumption shown on Mustard TV |
| Form Of Engagement Activity | A broadcast e.g. TV/radio/film/podcast (other than news/press) |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Media (as a channel to the public) |
| Results and Impact | A 30-minute TV programme called "This Week" shown on Mustard TV at 7:30pm on Thursday 21st January 2016, as a panel show with three expert participants (of which Professor Paul Dobson was one of them) discussing the British Heart Foundation finding that 31% of children leaving primary school in the East of England are obese or overweight, and their call for a ban on adverts for unhealthy foods prior to 9pm and a 'sugar tax.' Professor Dobson spoke on the pricing drivers of overbuying and overeating and possible industry and policy responses, including a sugar tax, citing evidence from the ESRC project. |
| Year(s) Of Engagement Activity | 2016 |
| URL | http://www.mustardtv.co.uk/episode/this-week-62/ |
| Description | The lure of supermarket special offers : a healthy choice for shoppers? |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Public/other audiences |
| Results and Impact | Special offers are big business for supermarkets, with over £50bn in sales and two-fifths of all spending. Price promotions can offer great savings for consumers. BUT...while the deals are good for our wallets, are they good for our waistlines and health? Do supermarkets over promote unhealthy foods and encourage excessive consumption? Are special offers fuelling the UK's obesity epidemic? This lecture examines these concerns and presents new evidence on the nature of supermarket price promotions. As a result of the positive feedback from this presentation as an inaugural lecture, I was invited to repeat and adapt the same lecture for (I) an academic seminar to the ESRC Centre for Competition Policy at the University of East Anglia, (ii) presenting a lecture to a public audience in London hosted by the University of East Anglia, (iii) presenting a lecture to a public audience in Norwich as part of the University of East Anglia's 50th Anniversary celebrations, and (iv) presenting an invited talk to Tesco senior managers in corporate social responsibility at the headquarters of Tesco PLC |
| Year(s) Of Engagement Activity | 2011 |
| URL | http://www.uea.ac.uk/mac/comm/media/press/2012/November/supermarkets-offers-paul-dobson |