How can discount labels reduce food waste in grocery stores? An eye-tracking experiment Analysing the effect of text-only and text-and-image discount labels on the information processing of a customer and the impact on the purchase intention

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Multiple companies in the Netherlands have been looking at how they could reduce food waste in grocery stores. The most viable strategy to reduce food waste in the critical categories is by providing a discount through a discount label. Yet, in 2020 only a reduction in food waste of 3,6% was realised by grocery stores in the Netherlands. However, customers tend to not invest a large amount of cognitive effort when confronted with a food-related decision. Therefore, it is important to take the ease of processing information from a visual stimulus into account. Thus, this research study will provide a better understanding in how customers cognitively process discount labels and its effect on the purchase intention to maximise the impact on preventing food waste in grocery stores. Additionally, there seems to be a discrepancy in the current literature if text-only labels or text-and-image labels are easier to cognitive process. Hence, these two types of labels were chosen as the two conditions to be measured. In order to do so, an eye tracking experiment was conducted which was supplemented with a survey. After the data was analysed using the partial least squares structural equation modelling, some interesting findings are presented in this paper.
Faculteit der Managementwetenschappen