EU Food Loss and Waste Prevention Hub

Does cash really mean trash? An empirical investigation into the effect of retailer price promotions

  • Uploaded on Thursday 24 of August 2023
  • Author(s) Arjen van Lin, Aylin Aydinli, Marco Bertini, Erica van Herpen, Julia von Schuckmann

Retailer price promotions, and in particular multi-unit deals such as the ubiquitous “buy one, get one,” are often criticized as a cause of food waste, presumably
because they lure households into buying more than they can realistically consume. In this research, the authors combine field data and experiments to provide
the first systematic test of this claim.

The field data, which span eight frequently purchased perishable foods, show no evidence of a positive relationship between single-unit or multi-unit price promotions and food waste. In fact, households that took advantage of a multi-unit deal reported wasting less than did households paying regular prices (RPs), but only when the quantity purchased was larger than usual.

Given this result, and that households also reported consuming and freezing more, the authors hypothesize that promotion-induced overbuying triggers a concern for food waste that encourages waste prevention. One experiment finds support for this mechanism. A second experiment shows that the effect on food waste concerns is moderated by perishability and versatility but unaffected by convenience and healthiness. Overall, then, this research invites regulators and other professionals to rethink their stance on price promotions and work with retailers to design smart campaigns that motivate waste awareness and management.

Name of organisation : Wageningen University & Research

Contact email: hilke.bos-brouwers@wur.nl

Date of publication: 2023-03-07

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