The effect of nutrition information, status quo bias, and loss aversion on the health of Thais and their consumption behaviour: A behavioural economic approach

Abstract

Seeking a way to reduce the prevalence of obesity in Thailand, this research applied ideas of behavioural economics to consumers' eating habits in order to find methods which could significantly encourage people to be aware of healthier foods. We designed an experiment aiming to test consumption behaviours of students, and working-age people. More specifically, in our experiment, each sample was offered a coupon for a free drink, which was for either a soft drink, or a healthy mixed-vegetable juice. The coupons were designed based on nutritional information, and principles of behavioural economics, namely status quo bias and loss aversion. The experiment found that applying approaches from behavioural economics could, to a certain extent, make individuals more concerned about their future health and choose healthier foods. The effective implementations were coupons designed with the ideas of: 1) status quo bias; 2) loss aversion, which: 1) present a healthier choice as the default option; 2) provide information on the coupon about obesity and its negative effects, respectively. © 2020 Inderscience Enterprises Ltd.