The Health vs. Taste Conundrum

The Health vs.
Taste Conundrum
Karizza Anika Intal
University of the People
BUS 1103 - Microeconomics
Dr. Galin Todorov
October 2, 2024
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The Health vs. Taste Conundrum
Introduction
In the competitive landscape of the snack industry, the author’s hypothetical company
“Pampanga’s Finest” faces a significant challenge. Despite producing nutritious, organic snacks,
the company struggles to compete with well-established brands offering less healthy but tastier
options at lower prices. This scenario highlights a common dilemma for health-conscious
consumers who often find themselves choosing taste over health, even when aware of the
nutritional benefits. This essay explores the economic principles and behavioral biases
influencing consumer choices and proposes interventions to encourage healthier decisions.
Behavioral Economics and Consumer Choices
Behavioral economics provides a valuable framework for understanding why consumers
might prioritize taste over health. Traditional economic theory assumes that consumers make
rational choices based on their preferences, income, and prices. However, behavioral economics
recognizes that consumers often deviate from rationality due to cognitive biases and heuristics.
One key concept is the “present bias,” where individuals disproportionately value immediate
rewards over future benefits. This bias explains why consumers might opt for tastier snacks
despite knowing the long-term health benefits of nutritious options. As Shapiro et al. (2023)
note, “Consumers often exhibit present-biased preferences, leading them to make choices that
favor immediate gratification over long-term well-being” (p. 45).
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Another relevant concept is the “availability heuristic,” where consumers judge the likelihood of
events based on how easily examples come to mind. If consumers frequently encounter
advertisements for tasty but unhealthy snacks, they may perceive these options as more
appealing and accessible. This heuristic can overshadow the health benefits of nutritious snacks,
leading to suboptimal choices.
Behavioral Interventions and Nudges
To address these biases and encourage healthier choices, “Pampanga’s Finest” can
implement behavioral interventions or “nudges.” Nudges are subtle changes in the environment
that influence behavior without restricting options or significantly altering economic incentives.
One effective nudge is the use of “default options.” By making healthier snacks the default
choice in vending machines or meal deals, consumers are more likely to select them. Laibson
and List (2015) explain, “Defaults are powerful because they leverage the status quo bias, where
individuals tend to stick with pre-set options” (p. 387). For example, Universal Robina
Corporation (a local and ubiquitous food company) successfully increased the consumption of
“healthier snacks” by making them the default option in their product bundles.
Another intervention is “salience enhancement,” which involves making the health
benefits of nutritious snacks more prominent. This can be achieved through clear labeling,
attractive packaging, and strategic placement in stores. Highlighting the immediate benefits, such
as improved energy levels, can also counteract present bias. As Laibson and List (2015) state,
“Enhancing the salience of health benefits can shift consumer preferences towards healthier
options” (p. 389).
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Additionally, “social norms” can be leveraged to promote healthier choices. By
showcasing testimonials from satisfied customers or endorsements from health experts,
“Pampanga’s Finest” can create a perception that choosing nutritious snacks is the socially
accepted behavior. This approach taps into the human tendency to conform to social norms and
can significantly influence consumer behavior.
Real-World Examples
Real-world examples further illustrate the effectiveness of these interventions. Lunchly, a
company offering supposedly healthy lunch options, successfully increased sales by
implementing default options and enhancing the salience of advertised health benefits. Similarly,
Lunchables, known for their convenient but less healthy snacks, faced competition from healthier
alternatives that leveraged social norms and strategic placement to attract health-conscious
consumers.
Conclusion
In conclusion, the health vs. taste conundrum presents a significant challenge for
“Pampanga’s Finest.” By applying insights from behavioral economics and implementing
targeted nudges, the company can encourage consumers to make more rational and healthier
choices without compromising on taste. Understanding and addressing the cognitive biases that
influence consumer behavior is crucial for promoting long-term well-being and achieving a
competitive edge in the snack industry.
Word Count: 662
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References
Laibson, D., & List, J. A. (2015). Principles of (Behavioral) Economics. The American
Economic Review, 105(5), 385–390. http://www.jstor.org/stable/43821914
Shapiro, D., MacDonald, D., Greenlaw, S. A., Dodge, E., Gamez, C., Jauregui, Andres., Keenan,
D., Moledina, A., Richardson, C., & Sonenshine, R. (2023). Principles of
microeconomics (3rd ed.). OpenStax. Licensed under CC 2.0.

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The Health vs.

Karizza Anika Intal

University of the People

BUS 1103 - Microeconomics

Dr. Galin Todorov

influencing consumer choices and proposes interventions to encourage healthier decisions.

Behavioral Economics and Consumer Choices

Behavioral economics provides a valuable framework for understanding why consumers

favor immediate gratification over long-term well-being” (p. 45).

leading to suboptimal choices.

Behavioral Interventions and Nudges

Another intervention is “salience enhancement,” which involves making the health

options” (p. 389).

showcasing testimonials from satisfied customers or endorsements from health experts,

can significantly influence consumer behavior.

Real-world examples further illustrate the effectiveness of these interventions. Lunchly, a

company offering supposedly healthy lunch options, successfully increased sales by

“Pampanga’s Finest.” By applying insights from behavioral economics and implementing

competitive edge in the snack industry.

Word Count: 662

Economic Review, 105(5), 385–390. http://www.jstor.org/stable/43821914

D., Moledina, A., Richardson, C., & Sonenshine, R. (2023). Principles of

microeconomics (3rd ed.). OpenStax. Licensed under CC 2.0.

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