Understanding Whether Price Tag Messaging Can Amplify the Benefits of Taxes: An Online Experiment

Citation

Hall, Marissa G.; Ruggles, Phoebe R.; McNeel, Katherine; Prestemon, Carmen E.; Lee, Cristina J. Y.; Lowery, Caitlin M.; Campos, Aline D'Angelo; & Taillie, Lindsey Smith (Online ahead of print). Understanding Whether Price Tag Messaging Can Amplify the Benefits of Taxes: An Online Experiment. American Journal of Preventative Medicine.

Abstract

INTRODUCTION: Excise taxes on unhealthy products like sugary drinks and tobacco can reduce purchases of these products. However, little research has investigated whether messages at the point of purchase, such as enhanced price tags, can increase the effects of taxes by heightening psychological reactions. This study aimed to examine whether including messages about taxes on price tags could amplify the benefits of excise taxes on unhealthy products.
METHODS: In 2022, an online study recruited 1,013 U.S. parents to view seven price tag messages (e.g., "includes a 19% sugary drink tax") and a control (i.e., standard price tag with the tax included in the price) displayed in random order alongside sugary drinks. Participants were randomly assigned to view a caution-symbol icon or no icon on price tags. Analyses were conducted in 2023.
RESULTS: All seven messages discouraged parents from buying sugary drinks for their children compared to control (average differential effects [ADEs] ranged from 0.28 to 0.48, all p<0.001). All messages led to greater attention to the price tag (ADEs ranged from 0.24 to 0.41, all p<0.001) and greater consideration of the cost of sugary drinks (ADEs ranged from 0.31 to 0.50, all p<0.001). Icons elicited higher cost consideration than text-only price tags (ADE=0.15, p<0.010), but not discouragement (p=0.061) or attention (p=0.079).
CONCLUSIONS: Messaging on price tags could make excise taxes more effective. Policymakers should consider requiring messaging on price tags when implementing taxes.

URL

http://dx.doi.org/10.1016/j.amepre.2023.11.020

Reference Type

Journal Article

Year Published

Online ahead of print

Journal Title

American Journal of Preventative Medicine

Author(s)

Hall, Marissa G.
Ruggles, Phoebe R.
McNeel, Katherine
Prestemon, Carmen E.
Lee, Cristina J. Y.
Lowery, Caitlin M.
Campos, Aline D'Angelo
Taillie, Lindsey Smith

Article Type

Regular

Continent/Country

United States

State

Nonspecific

ORCiD

Hall - 0000-0002-8690-9498
Taillie - 0000-0002-4555-2525