Effect of Information Displays on Cage-free and Organic Egg Sales: Evidence from Two Field Experiments

Abstract

This research determines the effect of point-of-purchase informational displays on the difference in quantity and type of eggs purchased. Informative displays were introduced in two supermarkets and consumer purchasing behavior before, during, and after the introduction of the signage was analyzed. A random utility model was fit to the data, which described consumer choice as a function of price, egg type, day-of-the-week, promotional deals, and informative displays. Results indicate informative displays did not cause a large shift toward organic or cage-free eggs. The signs, however, did increase the total amount of eggs purchased, thus indicating the signs served as an overall demand enhancement mechanism.