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Consumers Avoid Extremes in Soft Drink Sizes

Preferences tend to midrange options in beverages

September 2, 2008

• Senate Studies Soda Tax • Pepsi Takes Coke To Court Over Energy Drink Claims • Fructose Sets Table For Obesity, Study Suggests • Consumers Avoid Extremes in Soft Drink Sizes • Artificial Sweeteners Linked to Weight Gain • Caffeine Content Labels Suggested for Soft Drinks • Soft Drink Sweetener Linked to Diabetes in Kids • Diet Soft Drinks Linked To Metabolic Syndrome • FTC Urged to Crack Down on Enviga • Strong Evidence Links Soft Drinks, Obesity • Coke, Nestle Sued Over Enviga Claims • Study Links Soft Drinks With Obesity • Pepsi Agrees to Get the Lead Out of Mexican Soda Bottles Used in the U.S. • Soft Drink Makers Sued Over Benzene • Groups Want Sodas With Benzene Out Of Schools • Consumer Group Wants Health Warnings on Soft Drinks • Beverage Industry Pulls Soda From Elementary Schools --- • Weight Loss News

As portion sizes have increased, Americans' waistlines have expanded. And as a new study in the Journal of Consumer Research suggests, consumers may be tricked into drinking more soft drinks when retailers eliminate small drink sizes.

No matter what the volume of the soft drink, customers tend to avoid the largest and smallest options, according to authors Kathryn M. Sharpe, Richard Staelin, and Joel Huber, all Duke University. "Our basic premise is that consumer purchases are altered by the portfolio of drink sizes made available," the authors said.

Fast-food restaurants, in an attempt to boost profit margins, have eliminated smaller drink sizes and added even larger sizes. The authors believe these policies have led to a 15 percent increase in the consumption of these high-calorie drinks.

"Consumers who purchased a 16-ounce drink when a 12-ounce drink was available later chose a 21-ounce drink when the 12-ounce drink option was removed, since now the 16-ounce soda is the smallest option," they write. "This effect also occurred at the large end of the spectrum; people who purchased a 21-ounce drink when the 32-ounce drink was the largest size available moved up to the 32-ounce drink when a 44-ounce drink was added to the range of drink sizes available.

By adding the 44-ounce option, the restaurant is able to shift the demand curve upward, even though the authors believe customers still want 12-ounce drinks.

The researchers go on to simulate policy directions for slimming America's waistlines. Their models show that for flat taxation of soft drinks to reduce consumption by 10 percent, it would need to be 28 cents per drink and would reduce corporate profits by at least 7 percent.

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