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

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