- Groundwork
The effect of discount pricing on consumer fruit purchase decisions: insights from randomized controlled trials in Ethiopia
- January 13, 2025
- 9:31 am

SECTOR
PROJECT TYPE
Location
BEHAVIORAL THEME
OVERVIEW
This study looked at how price discounts affected consumer purchasing decisions, aiming to understand the role that affordability plays in promoting the consumption of healthier foods. Although there are many studies on the effect of discounting prices on purchase of foods there is limited focus on purchase of healthy foods in developing markets capable of establishing causal inferences. Given the problems of limited nutritional diversity and high rates of malnutrition in low- and middle-income countries- LMICs ( Dukhi, 2020), this research offers insight that could inform policies and interventions aimed at enhancing nutritional outcomes and preventing malnutrition in these countries.
THEMATIC AREAS
We conducted a field experiment that randomly assigned participants based on a lottery process and provided them with unique colored vouchers—green for market price, yellow for 17% discount, and blue for 42% discount. The participants, however, are unaware of the price associated with the vouchers. Each voucher had a value of $7, and the participant used them to purchase whatever bananas they wanted from a designated single vendor so that the quality offered was uniform. The vendors identified the color of the vouchers to determine the price of the Banana for each participant. Subsequently, we compared their banana purchasing behaviors. Data analysis entailed using multiple regression, ANOVA, as well as t-tests statistics analysis.