Adding per serve pricing increases loose vegetable purchases by 6.2 per cent according to new research
Researchers from Monash Business School have collaborated with the Ritchies Supermarket chain and Deakin University to launch a new per-serve pricing tool for fresh produce called eatforhealth.
The tool is being rolled out alongside traditional price per weight advice in the Victorian stores of Melbourne independent grocer, Ritchies Supermarkets.
Only 6.5 per cent of Australian adults eat the recommended number of vegetable servings, while 55.9 per cent fall short of the recommended fruit servings, according to the Australian Bureau of Statistics.
Intrigued by this disparity, as well as evidence linking affordability perceptions to vegetable and fruit consumption, the research team questioned the conventional practice of only pricing fresh produce by the kilogram.
Lead researcher, Fiona Newton from the Monash Business School, noted per kilogram pricing shows shoppers what it would cost to purchase 13.3 serves of vegetables or 6.67 serves of fruit. In contrast, many pre-packaged food items are priced by the serve.
“Per kilogram pricing doesn’t communicate how much is needed for a healthy serve. If shoppers overlook this aspect, the purchase may not seem like good value for money, which could flow on to their purchase decisions,” said Newton.
“For example, green beans priced at A$12.99/kg may initially seem steep. However, this perception may change when shoppers see that the cost of a single 75g serve is only A$0.97.”
Newton and colleagues from Deakin University teamed up with Ritchies supermarkets to compare conventional per kilogram pricing information against a novel combination: providing per kilogram and per serve pricing.
The field trial took place in one store, with four additional comparison stores selected based on offering a similar range of fruit and vegetables and having similar transaction volumes, affluence group share, and fruit and vegetable prices to the trial store.
After introducing per serve pricing information, the research team found an increase in the purchase of loose fresh vegetables at the trial store, suggesting that per serve pricing helps consumers make purchase decisions consistent with meeting nutritional guidelines.
“Per serve pricing offers consumers a straightforward way to gauge how much it will cost to meet their daily vegetable and fruit servings. We found adding per serve pricing increased loose vegetable purchases by 6.2 per cent, while fruit saw no significant impact,” said Newton.
In Australia, the size of a serve of fruit is twice that of vegetables (150g versus 75g), which the research team thought could have implications for perceptions of their value for money.
The team therefore retested the per serve pricing cues in the UK, where both fruit and vegetable recommended serving sizes are standardised at 80g. In this follow-up online study involving 803 UK adults, per serve pricing cues significantly increased both vegetable and fruit purchase intentions. Further analysis demonstrated that this increase in purchase intentions could be attributed to fruit and vegetables being seen as providing greater value for money.
The Australian Government’s eatforhealth price per portion calculator has also been added to the Ritchies Supermarkets webpage, to assist shoppers in understanding their average recommended serving size.
“We’re really looking forward to undertaking future research to explore whether the pricing model helps reduce food waste,” said Newton.
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