Any Size for a Dollar: The Effect of Any-Size-Same-Price versus Standard Pricing on Beverage Size Choices

Journal of Consumer Psychology, Forthcoming

25 Pages Posted: 22 Jul 2019

See all articles by Kelly Haws

Kelly Haws

Vanderbilt University - Marketing

Peggy Liu

University of Pittsburgh

Steven Dallas

New York University (NYU) - Leonard N. Stern School of Business

John Cawley

Cornell University - College of Human Ecology, Department of Policy Analysis & Management (PAM); Cornell University - College of Arts & Sciences, Department of Economics; Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE); National University of Ireland, Galway (NUIG) - J.E. Cairnes School of Business & Economics; NBER; IZA

Christina A. Roberto

Yale University - Department of Psychology

Date Written: July 19, 2019

Abstract

Overconsumption of sugary drinks is linked with obesity. These beverages have been the target of recent public health policies, and, simultaneously, some firms have altered their pricing of such beverages, including charging the same price for all beverage sizes (“any-size-same-price” pricing). We compare the effect of any-size-same-price pricing versus standard pricing on soft drink beverage size choices and further, explore the effect of this firm lever under different health-related policy situations. Overall, we show that any-size-same-price pricing increases consumers’ focus on the value of getting a good financial deal and thereby increases beverage size selections. Further, the allure of any-size-same-price pricing prevents calorie postings from successfully reducing choice of larger sizes as occurs under standard pricing. However, a more graphic health intervention can reduce the appeal of larger sizes under any-size-same-price pricing. Finally, the findings are not moderated by diet versus non-diet beverage selections, indicating that consumers do not perceive the value of larger sizes under any-size-same-price pricing to come from getting more calories. We conclude by discussing how this work can improve the design of public health nutrition policies.

Keywords: calorie posting, sugary beverages, soft drinks, pricing, supersizing, health, value, portion size

Suggested Citation

Haws, Kelly and Liu, Peggy and Dallas, Steven and Cawley, John and Roberto, Christina A., Any Size for a Dollar: The Effect of Any-Size-Same-Price versus Standard Pricing on Beverage Size Choices (July 19, 2019). Journal of Consumer Psychology, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3422926 or http://dx.doi.org/10.2139/ssrn.3422926

Kelly Haws (Contact Author)

Vanderbilt University - Marketing ( email )

Nashville, TN 37203
United States

Peggy Liu

University of Pittsburgh ( email )

3950 Roberto Clemente Drive
Pittsburgh, PA 15260
United States

HOME PAGE: http://https://sites.google.com/view/peggyjliu

Steven Dallas

New York University (NYU) - Leonard N. Stern School of Business ( email )

44 West 4th Street
New York, NY 10012
United States

John Cawley

Cornell University - College of Human Ecology, Department of Policy Analysis & Management (PAM) ( email )

3M24 MVR Hall
Ithaca, NY 14853
United States

Cornell University - College of Arts & Sciences, Department of Economics ( email )

414 Uris Hall
Ithaca, NY 14853-7601
United States

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

National University of Ireland, Galway (NUIG) - J.E. Cairnes School of Business & Economics ( email )

Galway
Ireland

NBER

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

IZA ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Christina A. Roberto

Yale University - Department of Psychology ( email )

P.O. Box 208205
New Haven, CT 06520-8205
United States

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