Can traffic light labelling nudge heuristical decision processes?

Seda Erdem, Danny Campbell and Tony McCarthy
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Danny Campbell: Economics Division, Stirling Management School, University of Stirling
Tony McCarthy: Department of Work, Employment, and Organisation (WEO), Strathclyde Business School, University of Strathclyde, UK

Journal of Behavioral Economics for Policy, 2022, vol. 6, issue 1, 37-45

Abstract: This research investigates the effect of different front-of-pack nutritional labelling on individuals' decision-making processes and food choices. To do this, we combine a stated choice experiment, a preference elicitation technique, with an eye-tracking experiment to explore the tendency to make fast (or slow) decision-making processes. Our results show that when the tendency to make fast decisions decreases, the probability of ignoring an alternative also decreases. We also find that the labelling format plays an important role in influencing visual fixation and the probability of considering a choice alternative. Most importantly, we find that these effects are more prominent for unhealthy products compared to healthy products. The results have important implications for the food industry and the policy-makers regarding the front-of-pack labels. The findings show that labels using traffic light colour coding are more likely to help consumers process information than other formats, such as no-colour coded numeric labels. This gives insights into other areas where communication is delivered via labels to encourage people to make informed choices.

Keywords: front-of-pack labelling; food choice; decision-making; eye-tracking; latent variable model (search for similar items in EconPapers)
JEL-codes: D12 D90 D91 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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