Promoting Portion Downsizing By Improving Consumer Response to Percentage Cost Vs. Percentage Benefit Offers

Bhavya Mohan, Harvard Business School, USA
Pierre Chandon, INSEAD, France
Jason Riis, Harvard Business School, USA
We find that individual differences such as cognitive ability and shopping goals moderate consumers’ ability to objectively assess the value of percentage-based cost (50% off) and benefit (50% free) offers. Providing ratio-based rates nudges consumers away from obesogenic % benefit offers in favor of healthier and economically-superior % cost offers.
[ to cite ]:
Bhavya Mohan, Pierre Chandon, and Jason Riis (2013) ,"Promoting Portion Downsizing By Improving Consumer Response to Percentage Cost Vs. Percentage Benefit Offers", in NA - Advances in Consumer Research Volume 41, eds. Simona Botti and Aparna Labroo, Duluth, MN : Association for Consumer Research.