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For a Few Cents More: Why Supersize Unhealthy Food?

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  • Paul W. Dobson

    (Norwich Business School, University of East Anglia, Norwich NR4 7TJ, United Kingdom)

  • Eitan Gerstner

    (Faculty of Industrial Engineering and Management, Technion-Israel Institute of Technology, Haifa 32000, Israel)

Abstract

Health-care experts believe that increases in portion sizes served by food vendors contribute to the obesity epidemic. This paper shows that food vendors can profit handsomely by using supersizing strategies where regular portion sizes are priced sufficiently high to discourage price-conscious consumers from selecting them, and the prices for enlarging food portions are set so low that these customers are tempted to order the larger portion sizes and overeat. Setting aside the impact of obesity on health-care costs, we show that using supersizing to steer customers toward consuming excessive amounts of food can destroy value from a social perspective; thus this social value destruction trap adds another justification for pressuring food vendors to reduce supersizing for unhealthy food. As a public policy response, we consider how "moderating policies" may counter these effects through measures designed specifically to encourage eating in moderation by applying supersizing bans, taxes, and warnings.

Suggested Citation

  • Paul W. Dobson & Eitan Gerstner, 2010. "For a Few Cents More: Why Supersize Unhealthy Food?," Marketing Science, INFORMS, vol. 29(4), pages 770-778, 07-08.
    • Handle: RePEc:inm:ormksc:v:29:y:2010:i:4:p:770-778
    DOI: 10.1287/mksc.1100.0558
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    References listed on IDEAS

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    3. Guofang Huang & Ahmed Khwaja & K. Sudhir, 2012. "Short Run Needs and Long Term Goals: A Dynamic Model of Thirst Management," Cowles Foundation Discussion Papers 1856, Cowles Foundation for Research in Economics, Yale University.
    4. Lan, Hao & Lloyd, Tim A. & Morgan, C. Wyn, 2013. "The hazard function of sales: An analysis of UK supermarket food prices," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 151972, Agricultural Economics Society.
    5. Stoeckl, Verena E. & Luedicke, Marius K., 2015. "Doing well while doing good? An integrative review of marketing criticism and response," Journal of Business Research, Elsevier, vol. 68(12), pages 2452-2463.

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