The talk will be delivered by Nymisha Bandi, PhD candidate, McGill University
31 July, 2023, Bengaluru: The Office of Research and Publications (R&P) at IIM Bangalore will host a research seminar on ‘Incentivizing Healthy Food Choices Using Add-on Bundling: A Field Experiment’, to be led by Nymisha Bandi, PhD candidate at McGill University (Production & Operations Management area), at 2.30 pm on 8th August 2023, at Classroom P-11.
Abstract: How can retailers incentivize customers to make healthier food choices? Price, convenience and taste are known to be among the main drivers behind such choices. Unfortunately, healthier food options are often expensive and not adequately promoted. Interestingly, recent efforts to nudge customers toward healthier food, have been observed. In this paper, a field experiment is conducted with a global convenience store chain to better understand how different add-on bundle promotions influence healthy food choices. The researchers considered three types of add-on bundles: (i) an unhealthy bundle (when customers purchased a coffee, they could add a pastry for $1) (ii) a healthy bundle (offering a healthy snack, such as fruit, vegetable or protein, as a coffee add-on for $1) and (iii) a choice bundle (the option of either a pastry or a healthy snack as a coffee add-on for $1). In addition to the field experiment, an online lab study was conducted to strengthen the validity of the results. It was found that offering healthy snacks as part of an add-on bundle significantly increased healthy purchases (and decreased unhealthy purchases). Surprisingly, this finding continued to hold for the choice bundle, that is, even when unhealthy snacks were concurrently on promotion. However, no long-term stickiness effect was observed, meaning that customers returned to their original (unhealthy) purchase patterns once the healthy or choice bundle was discontinued. Finally, the research shows that offering an add-on choice bundle is also beneficial for retailers, who can earn higher revenue and profit.
Speaker Profile: Nymisha is a PhD candidate specializing in Retail Management at McGill University's Desautels Faculty of Management in Montreal, Canada. Her research focuses on socially responsible decision-making in the retail industry, with an emphasis on understanding human behavior through the application of field experiments, causal inference and advanced machine learning techniques. Specifically, her work centers around nudging consumers and employers within the retail sector towards making healthier and more sustainable decisions. Prior to her doctoral studies, Nymisha completed an MS with a focus on Data Science at the University of Illinois, Chicago and her B Tech from NITK. She also has industry experience as an ML expert, specializing across various areas like in demand forecasting for consumer packaged goods (CPG) and enterprise risk mitigation in the mortgage sector.
Webpage Link: https://www.mcgill.ca/desautels/nymisha-bandi
The talk will be delivered by Nymisha Bandi, PhD candidate, McGill University
31 July, 2023, Bengaluru: The Office of Research and Publications (R&P) at IIM Bangalore will host a research seminar on ‘Incentivizing Healthy Food Choices Using Add-on Bundling: A Field Experiment’, to be led by Nymisha Bandi, PhD candidate at McGill University (Production & Operations Management area), at 2.30 pm on 8th August 2023, at Classroom P-11.
Abstract: How can retailers incentivize customers to make healthier food choices? Price, convenience and taste are known to be among the main drivers behind such choices. Unfortunately, healthier food options are often expensive and not adequately promoted. Interestingly, recent efforts to nudge customers toward healthier food, have been observed. In this paper, a field experiment is conducted with a global convenience store chain to better understand how different add-on bundle promotions influence healthy food choices. The researchers considered three types of add-on bundles: (i) an unhealthy bundle (when customers purchased a coffee, they could add a pastry for $1) (ii) a healthy bundle (offering a healthy snack, such as fruit, vegetable or protein, as a coffee add-on for $1) and (iii) a choice bundle (the option of either a pastry or a healthy snack as a coffee add-on for $1). In addition to the field experiment, an online lab study was conducted to strengthen the validity of the results. It was found that offering healthy snacks as part of an add-on bundle significantly increased healthy purchases (and decreased unhealthy purchases). Surprisingly, this finding continued to hold for the choice bundle, that is, even when unhealthy snacks were concurrently on promotion. However, no long-term stickiness effect was observed, meaning that customers returned to their original (unhealthy) purchase patterns once the healthy or choice bundle was discontinued. Finally, the research shows that offering an add-on choice bundle is also beneficial for retailers, who can earn higher revenue and profit.
Speaker Profile: Nymisha is a PhD candidate specializing in Retail Management at McGill University's Desautels Faculty of Management in Montreal, Canada. Her research focuses on socially responsible decision-making in the retail industry, with an emphasis on understanding human behavior through the application of field experiments, causal inference and advanced machine learning techniques. Specifically, her work centers around nudging consumers and employers within the retail sector towards making healthier and more sustainable decisions. Prior to her doctoral studies, Nymisha completed an MS with a focus on Data Science at the University of Illinois, Chicago and her B Tech from NITK. She also has industry experience as an ML expert, specializing across various areas like in demand forecasting for consumer packaged goods (CPG) and enterprise risk mitigation in the mortgage sector.
Webpage Link: https://www.mcgill.ca/desautels/nymisha-bandi