Research Insights: Order Takeout and Save the Planet
Encouraging customers to pay a premium for environment-friendly packaging
There is growing concern over wasteful use of food packaging, especially with the rise of off-premises consumption, in a word, takeout. A critical question, then, is the extent to which customers are willing to pay a premium for environmentally friendly—reusable and sustainable—off-premises packaging compared to single-use plastics.
Muhammet Kesgin, professor in the department of international hospitality and service innovation, explores this topic in a co-authored (first author) article, “Legacy matters: Encouraging willingness to pay a premium for environmentally friendly off-premises food packaging,” published in the International Journal of Hospitality Management.
Kesgin and his co-authors conducted two studies. In the first, subjects were shown online photos of packaging and asked to imagine ordering a meal “and seeing it comes with the above conventional/reusable/sustainable food packaging option available for your selection”. Subjects were asked about their willingness to pay a premium for off-premises food packaging directly and indirectly through pro-environmental self-identity and moral judgment. The key finding: both reusable and sustainable food packaging positively influence pro-environmental self-identity and moral judgment, leading to an increased willingness to pay a premium for off-premises food packaging.
The second study was similar to the first in design. In addition to seeking confirmation of the first study’s results, Study 2 explored and confirmed the moderation roles of reputation and impact legacy motives.
The findings have clear implications for food-service businesses. They “can encourage consumers, particularly those with strong legacy motives, to pay a premium for environmentally friendly off-premises food packaging by creating message appeals to their pro-environmental self-identity and moral judgment.”
View paper in the International Journal of Hospitality Management, Legacy matters: Encouraging willingness to pay a premium for environmentally friendly off-premises food packaging.