Calorie Overestimation Bias and Fast Food Products: The Effects of Calorie Labels on Perceived Healthiness and Intent to Purchase

22 Pages Posted: 8 Oct 2016 Last revised: 9 Oct 2016

Simon Hedlin

Harvard University; Columbia University

Date Written: October 3, 2016

Abstract

In 2014, the United States Food and Drug Administration announced that chain restaurants with 20 or more locations would be required to put calorie labels on the menu. The merits of the policy depend in large part on three empirical issues: 1) if calorie labels help correct calorie under- or overestimation biases; 2) if the labels lead to changes in consumer behavior, which may improve physical health; and 3) if they have an impact on psychological health. This paper presents data from an online experiment (N = 1,323) in which participants were randomly presented with pictures of food and drink items from major fast-food companies either with or without calorie labels.

The following findings are reported. First, there was calorie overestimation bias among participants, and the respondents thought, on average, that products contained more calories than was actually the case. Second, calorie labels both made participants perceive the products as healthier, and made them more likely to intend to purchase said items. Third, calorie labels did not have any discernible effects either on the expected utility from consuming the products, or on the participants’ experienced well-being.

Thus, while calorie labels did not appear to have any negative effects on psychological health, they did seem to correct a calorie overestimation bias, which may inadvertently improve the perceived healthiness of foods and beverages high in calories, and could also potentially lead consumers to buy more, rather than fewer, such products.

Keywords: calorie labels, calorie overestimation bias, perceived healthiness, intent to purchase, nutrition, fast food, health

JEL Classification: C9, D12, I1, I12, I18, K3, K32

Suggested Citation

Hedlin, Simon, Calorie Overestimation Bias and Fast Food Products: The Effects of Calorie Labels on Perceived Healthiness and Intent to Purchase (October 3, 2016). Available at SSRN: https://ssrn.com/abstract=2847480

Simon Hedlin (Contact Author)

Harvard University ( email )

1875 Cambridge Street
Cambridge, MA 02138
United States

Columbia University ( email )

3022 Broadway
New York, NY 10027
United States

Paper statistics

Downloads
107
Rank
204,300
Abstract Views
443