Abstract
Food producers and retailers throw away large amounts of perfectly edible produce that fails to meet appearance standards, contributing to the environmental issue of food waste. The authors examine why consumers discard aesthetically unattractive produce, and they test a low-cost, easy-to-implement solution: emphasizing the produce’s aesthetic flaw through “ugly” labeling (e.g., labeling cucumbers with cosmetic defects “Ugly Cucumbers” on store displays or advertising). Seven experiments, including two conducted in the field, demonstrate that “ugly” labeling corrects for consumers’ biased expectations regarding key attributes of unattractive produce—particularly tastiness—and thus increases purchase likelihood. “Ugly” labeling is most effective when associated with moderate (rather than steep) price discounts. Against managers’ intuition, it is also more effective than alternative labeling that does not exclusively point out the aesthetic flaw, such as “imperfect” labeling. This research provides clear managerial recommendations on the labeling and the pricing of unattractive produce while addressing the issue of food waste.
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