Consumers' decoy effect when purchasing pork with traceability technologies

Abstract

Despite government investment, policy guidance, and publicity, it has been difficult to establish a traceable food market in China over the past 2 decades. Once a food safety problem occurs, it is difficult to implement effective traceability, recall, and accountability along the food supply chain. How to use the decoy effect to promote the development of China traceable food market? As bounded rationality, a decoy effect exists when adding an alternative to a choice set increases the chance an existing alternative to be chosen. However, few studies have examined the decoy effect in food purchases. Based on consumers in Wuxi, Jiangsu Province, China, we show the decoy effect in traceable pork hindquarter purchases and that the effects differ across product quality and price attributes. The effects are heterogeneous across consumers and are less likely to occur among those who had a personal annual income of more than 50,000 yuan (USD $7,000), were married, and had minor children in the family. These findings have implications on leveraging the influence of the decoy effect on consumer behavior and facilitating the construction of food traceability systems.