Behavioral Economics: What does it have to do with what I order?

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FOOD 2030 -Die Zukunft der Ernährung im Zeitalter der Konnektivität Technische Universität München December 1 st, 2016

1 FOOD Die Zukunft der Ernährung im Zeitalter der Konnektivität Technische Universität München December 1 st, 2016 Behavioral Economics: What does it have to do with what I order? Laure Saulais, PhD Laure.saulais@institutpaulbocuse.com

2 Externalities of foodservice and consumer behaviour Environmental impact, food waste Diet-related chronic diseases

3 Food and Hospitality Research Center «The science of meal» From preparation to consumption Choices, decisions, context Preferences, perception, representations Practices, symbols, usages 3

4 Determinants of food choices in foodservice Consumersfooddecisionsin foodservicecontexts = Choice of quality of food/ingredients Choice of quantity Reasons for suboptimal choices? Economic environment:value, price, information, availability, access Social environment: social interactions, familial and cultural norms Individual characteristics : habits and experience, attitudes, knowledge and skills, beliefs, sociodemographic characteristics, culture Psychological: mood, emotions, stress Biological : hunger, appetite & satiety, taste perception

environment: social interactions, familial and Individual characteristics : cultural norms habits and

5 What can be done? Recipe development Economic environment: value, price, information, availability, access Social environment: social interactions, familial and Individual characteristics : cultural norms habits and experience, attitudes, knowledge and skills, beliefs, sociodemographic characteristics, culture Psychological: mood, emotions, stress Biological : hunger, appetite & satiety, taste perception

: habits and experience, attitudes, knowledge and skills, beliefs,

6 What can be done? Information, education Economic environment:value, price, information, availability, access Social environment: social interactions, familial and cultural norms Individual characteristics : habits and experience, attitudes, knowledge and skills, beliefs, sociodemographic characteristics, culture Psychological: mood, emotions, stress Biological : hunger, appetite & satiety, taste perception

7 What can be done? Improve service process Economic environment:value, price, information, availability, access Social environment: social interactions, familial and Individual cultural characteristics norms : habits and experience, attitudes, knowledge and skills, beliefs, sociodemographic characteristics, culture Psychological: mood, emotions, stress Biological : hunger, appetite & satiety, taste perception

environment: social interactions, familial and cultural norms Individual characteristics : habits and

8 What can be done? Develop economic incentives Economic environment:value, price, information, availability, access Social environment: social interactions, familial and cultural norms Individual characteristics : habits and experience, attitudes, knowledge and skills, beliefs, sociodemographic characteristics, culture Psychological: mood, emotions, stress Biological : hunger, appetite & satiety, taste perception

low involvement, individual At least two consequences: 1] Consumersrelyon contextto

9 Is that enough? Taking into account the role of context Choices in foodservice : Frequent, immediate, low involvement, individual At least two consequences: 1] Consumersrelyon contextto makedecisions: heuristics(«shortcuts») how to make accurate predictions? 2] Hierarchy of criteria of choice depends on context Crédit photo: Getty Images 10

10 Taking into account the impact of context on choices: investigating heuristics and biases

11 Context factors which may impact choices Example of factors linked directly to decision Examplesof factorsa prioriunrelatedto decision Preferences, taste, hunger Price, value Quality Origin, environmental impact Position of dishon menu Default /recommended choice Waiting time What are these factors? What modulates their effect? Can they be neutralized? 12

2013-2017 A multi-partner, multi-disciplinary

Industry-Academia Partnerships and Pathways

Development of vegetable-based recipes for use

12 A multi-partner, multi-disciplinary research project : Marie Curie Industry-Academia Partnerships and Pathways (IAPP), FP7-PEOPLE-2013-IAPP call 4 countries: FR, DK, UK, IT 2 target age groups : adolescents and seniors Aim: increase vegetables intake in institutional restaurants, taking into account sensory and environmental cues Approach : Sensorycharacterization of vegetables Development of vegetable-based recipes for use by food providers Investigation of choice architecture factors facilitating vegetable consumption Credit : Calvin & Hobbes 13

advantage to elected candidate Is there a status quo bias for food choices in foodservice?

13 Investigating how context may bolster decisional biases Status quo bias : preference for current or recommended situation choice over change Favours organ donation when opt-out is the rule Gives an advantage to elected candidate Is there a status quo bias for food choices in foodservice? How does it manifest? Johnson, E. J., & Goldstein, D. G. (2003). Do defaults save lives? Science, 302,

2003) Added default healthy product increases selection but not always consumption (Just &Price 2013; List &Samek2015; McCluskeyet al.

14 Status quo bias in foodservice : evidence from the field Evidence fromvarietyof products, tasks, nature of dish: Default portion of sidedishproposedmore likelyto bechosen (Giesenet al. 2003) Added default healthy product increases selection but not always consumption (Just &Price 2013; List &Samek2015; McCluskeyet al. 2012) Emphasizing a healthier choice increases choice and consumption of healthy dish, but effectdependson «strength» of intervention (Wisdomet al 2010) Beyond the field? How to generalize? Contextualized Laboratory approach 15

15 A unique experimental platform The Living Lab enables the study of behaviors in real-life dining environments: dining room, restaurant, school canteen, bar/pub as well as the study of real-life culinary production environments. - Professional kitchen - Domestic kitchen - Modular restaurant - Modular platform for service

Type of restaurant : Self-service Price: 10 for starter/dish/main course (excluding beverages)

16 Experimental Context Location : Experimental Restaurant (Living Lab), Food and Hospitality Research Center, Institut Paul Bocuse. Type of restaurant : Self-service Price: 10 for starter/dish/main course (excluding beverages) Consumptionoccation: lunch, Mondayto Friday, 2 weeksof test (10 days) Participants: 293 participants, general population. Homogenous samples across treatments. 17

17 Default presentation Plat du jour: Burger Végétarien et sa salade Autre alternative : Boulettes de dinde sauce tomate et quinoa

18 Neutral presentation Votre plat au choix : Burger Végétarien et sa salade Boulettes de Dinde sauce tomate et quinoa

19 Choice of main dish : treatments Nature of default dish of the day Number of alternatives 2 sessions per treatment Measures: Choices Liking, Hunger, Satiety Intake (weights) 21

20 Choices of main course N=6 1 N=60 34% 66% N=57 52% 23% 25% N=60 60% 40% N=56 35% 53% 12% 27% 73% 22

21 Choices of main course N=6 1 26% more go for the burger when placed in default position N=60 34% 66% N=57 52% 23% 25% N=60 60% 40% N=56 35% 53% 12% 27% 73% 23

22 Choices of main course N=6 1 7% more go for the burger when placed in default position N=60 34% 66% N=57 52% 23% 25% N=60 60% 40% N=56 35% 53% 12% 27% 73% 24

23 Consequences of nudging 34% 66% No significant differences in food waste No impact on consumer satisfaction 60% 40% 27% 73% 25

24 Choices of main course N=6 1 30% more go for the burger when placed in default position on a 3-option menu N=60 34% 66% N=57 52% 23% 25% N=60 60% 40% N=56 35% 53% 12% 27% 73% 26

25 Choices of main course N=60 N=6 1 34% 66% N=57 52% 23% 25% N=60 60% 40% 35% 53% 12% No impact on food waste and satisfaction 27

In practice : using context to nudge consumers Nudges (Thalerand Sunstein2008) = any aspect of

any options or significantly changing their economic incentives.

Nudges are not mandates. Putting fruit at eye level counts as a nudge.

26 In practice : using context to nudge consumers Nudges (Thalerand Sunstein2008) = any aspect of the choice architecture that alters people s behavior in a predictable way without forbidding any options or significantly changing their economic incentives. To count as a mere nudge, the intervention must be easy and cheap to avoid. Nudges are not mandates. Putting fruit at eye level counts as a nudge. Banning junk food does not. Can consumers be nudged towards healthier or more sustainable choices? Nudge: salad as default side dish Biais: preference for status quo

Nudges for foodservice : Smarter lunchrooms http://www.nytimes.

27 Nudges for foodservice : Smarter lunchrooms ive/2010/10/21/opinion/ _Oplunch.html?_r=0 Crédits

28 Taking into account decision-makers characteristics in the foodservice context

FoodSMART Multi-partners, multidisciplinary European

flexible, customizable and mobile-accessible interface

restaurants for personalized recommendations based on

29 FoodSMART Multi-partners, multidisciplinary European project(rise/ Marie Curie) Objectives: Provide a flexible, customizable and mobile-accessible interface (mobile app) that will allow access to the menu of restaurants for personalized recommendations based on their diet. Target group: workers 31

30 Decision-making criteria and use of information in workplace restaurants Hypothesis: differentdecisioncriteriaand heuristicsdependingon choice context Whattype of information do consumersvalue, searchfor, and use in workplace restaurants? What are the choice criteria used in priority? Consumers typology Methodology: data collection in controlled and in field settings, using mobile app Work in progress!

31 Conclusion Context plays a significant role in consumers choices in foodservice settings Challenges for research to inform choice architects: Knowing and taking into account the specificities of foodservice contexts in link with decision-making processes Providing more robust theoretical ground to build efficient interventions: more controlled experimental evidence needed Acceptability, consistency and efficiency at the heart of choice architecture debate Long-term effects of contextual interventions Nudge vs Boost?

32 SAVE THE DATE! International Institut Paul Bocuse Food choice environments to promote healthy and sustainable eating behaviours Nudges, in theory and in practice 2 nd -3 rd February 2017, Ecully, France Keynote speaker : Prof. Theresa MARTEAU, University of Cambridge CALL FOR ABSTRACTS : deadline December 16 th For more information and updates on the program, please visit the conference website : /

Smarter Lunchrooms Movement

Introduction to Behavioral Economics in Food Choices Funded by USDA/FNS/ERS Smarter Lunchrooms Movement BEN Center 2015 It s Not Nutrition Until It s Eaten Adam Brumberg, Deputy Director Cornell Food &