CONSUMER BEHAVIOUR, OBESITY AND SOCIAL COSTS. THE CASE OF ITALY

Abstract

This study analyses the social impact of obesity, focusing on the direct costs and, in particular,on the health-care expenditure. Using different socio-demographic variables and through theuse of Multiple Correspondence Analysis and Partial Least Squares Regression, the analysis: i)confirms the increase of the incidence of overweight and obesity when moving from Northernto Southern Italy; ii) identifies the main variables related to the growth of obesity; iii) highlightsa positive relationship between BMI and health-care costs and an incidence of 6% on theregional health-care costs. These findings confirm the need to define suitable guidelines fordecision makers and practitioners and to introduce mandatory regulations forcing companiesto effectuate product reformulation and achieve food safety. Indeed, asymmetric informationand consumer behaviour make investing in product reformulation undesirable for companiesbecause the use of attractive brands is more effective in influencing the purchasing decisionseven of a conscious consumer. Uninformed consumers often cling to the national brands,which sometimes, behind an image of familiarity and identity, may hide harmful ingredients(hydrogenated fats) or excessive quantities of certain ingredients (sugar, salt, saturatedfat) responsible for an unbalanced diet. Therefore, this justifies the introduction of bindingregulations.Keywords: Consumer Behaviour; Obesity; Social Costs; Health-Care Expenditure; MultivariateModel.