Sugar-sweetened beverage price elasticities in a hypothetical convenience store

• Published in: Social science & medicine (1982) Vol. 225; pp. 98 - 107
• Main Authors: Blake, Miranda R., Lancsar, Emily, Peeters, Anna, Backholer, Kathryn
• Format: Journal Article
• Language: English
• Published: England Elsevier Ltd 01-03-2019; Pergamon Press Inc
• Subjects: Adolescent; Adult; Adults; Age groups; Aged; Australia; Changes; Choice modelling; Commerce - statistics & numerical data; Consumer Behavior; Consumer behaviour; Consumers; Discrete choice; Economic models; Experimental economics; Female; Health behavior; Health care policy; Heterogeneity; Humans; Internet; Latent class analysis; Legal; Logit analysis; Male; Middle Aged; Population growth; Price elasticities; Price elasticity; Prices; Public policy; Responsiveness; Socioeconomic Factors; Sugar; Sugar-sweetened beverage; Sugar-Sweetened Beverages - economics; Young Adult; Australia; Heterogeneity; Experimental economics; Choice modelling; Legal; Sugar-sweetened beverage; Australia; Price elasticities; Public policy; Consumer behaviour
• ISSN: 0277-9536; 1873-5347
• DOI: 10.1016/j.socscimed.2019.02.021

An increase in sugar-sweetened beverage (SSB) prices has been suggested to reduce SSB intake to improve population health. Using a discrete choice experiment, we tested the effect of price changes on beverage choices in an online hypothetical convenience store setting amongst 1,008 Australian adults in May to June 2016. From this we calculated pre-packaged beverage price elasticities overall and for health policy-target consumer subgroups; and identified consumer subgroups likely to be most reactive to beverage price changes. Using mixed logit analysis, we found similar price elasticities for age, gender and income groups. More frequent SSB consumers tended to be less sensitive to SSB price changes. Latent class analysis revealed five consumer groups, none of which fit the desirable policy-target of highly price sensitive, frequent SSB consumers. An improved understanding of responsiveness to beverage price changes and consumer preferences could improve predictions of whose health is likely to benefit most from pricing interventions.
•Sugar-sweetened beverage (SSB) price increases reduce SSB purchases among consumers.•SSB price changes have similar purchase impacts across age, gender and income groups.•More frequent SSB consumers are less responsive to SSB price changes.•SSB pricing policies may benefit consumers suffering greatest health effects less.