Does Cash Really Mean Trash? An Empirical Investigation Into the Effect of Retailer Price Promotions on Household Food Waste

Retailer price promotions, and in particular multi-unit deals such as “buy one, get one,” are often criticized as a leading cause of food waste, presumably because they lure households into buying more than they can realistically consume. In this research, we combine field and laboratory data to provide the first systematic test of this claim. The field data show no evidence of a positive relationship between the presence of either a single-unit or a multi-unit promotion and food waste. In fact, our analysis indicates that, when the purchase quantity is larger than usual for a given household, food purchased on a multi-unit promotion is wasted less than food purchased at its regular price, and that households in this situation also report consuming and freezing (i.e., storing to prolong shelf life) more. The experiments confirm the role played by overbuying and establish the causal link to food waste concerns and, ultimately, waste-preventing behaviors including increased consumption, accelerated consumption, and freezing. Overall, these findings are relevant to marketing scholars interested in price promotions or consumers’ aversion to food waste, and to marketing professionals and regulators interested in the broader societal and environmental impact of retailer tactics.