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The effect of firm size on perceived product healthiness

Author

Listed:
  • Beatriz L. Bonetti

    (Catholic University)

  • Shreyans Goenka

    (Pamplin College of Business, Virginia Tech)

  • Frank May

    (Pamplin College of Business, Virginia Tech)

Abstract

The health food industry is comprised of firms of varying sizes. Does firm size influence consumers’ perceptions of how healthy its offerings are? This research proposes that products from smaller firms are perceived to be healthier. This is because smaller firms are perceived to be more moral, and these moral perceptions, in turn, influence health perceptions. Study 1 shows that products from a smaller firm are perceived to be healthier than products from a larger firm. Study 2 demonstrates mediation via moral perceptions. Study 3 shows that the health bias toward smaller firms diminishes when larger firms emphasize their Corporate Social Responsibility (CSR). Next, study 4, through an analysis of Yelp reviews, shows how firm size can influence word-of-mouth. Finally, study 5, via a Facebook experiment, shows that health-conscious consumers are more receptive to advertisements from smaller firms. Hence, these findings present implications for managers seeking to promote health-focused products.

Suggested Citation

  • Beatriz L. Bonetti & Shreyans Goenka & Frank May, 2024. "The effect of firm size on perceived product healthiness," Marketing Letters, Springer, vol. 35(2), pages 303-316, June.
  • Handle: RePEc:kap:mktlet:v:35:y:2024:i:2:d:10.1007_s11002-023-09703-5
    DOI: 10.1007/s11002-023-09703-5
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    References listed on IDEAS

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    1. Pierre Chandon & Kelly L. Haws & Peggy J. Liu, 2022. "Paths to Healthier Eating: Perceptions and Interventions for Success," Journal of the Association for Consumer Research, University of Chicago Press, vol. 7(4), pages 383-392.
    2. Linyun W Yang & Pankaj Aggarwal & Laura Peracchio & Gita Johar & Margaret C Campbell, 2019. "No Small Matter: How Company Size Affects Consumer Expectations and Evaluations," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 45(6), pages 1369-1384.
    3. Klaus Wertenbroch, 1998. "Consumption Self-Control by Rationing Purchase Quantities of Virtue and Vice," Marketing Science, INFORMS, vol. 17(4), pages 317-337.
    4. Koushyar Rajavi & Tarun Kushwaha & Jan-Benedict E M Steenkamp, 2019. "In Brands We Trust? A Multicategory, Multicountry Investigation of Sensitivity of Consumers’ Trust in Brands to Marketing-Mix Activities," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 46(4), pages 651-670.
    5. Alexander Chernev & Sean Blair, 2015. "Doing Well by Doing Good: The Benevolent Halo of Corporate Social Responsibility," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 41(6), pages 1412-1425.
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