ANNOUNCEMENTS
The confluence of urbanization and evolving consumption patterns has engendered substantial pressures on environmental resources, leading to their depletion and the rampant occurrence of deforestation. As per a comprehensive analysis conducted by IMARC, the Indian chocolate market recorded an impressive valuation of US$ 2.2 billion in 2021, demonstrating a commendable Compound Annual Growth Rate (CAGR) of 9.1% during the projection period from 2022 to 2027. In light of these empirical figures, it is reasonable to assert that the ecological impact stemming from chocolate production and consumption would be of considerable magnitude. Given the escalating demand for chocolates in both domestic and global contexts, comprehending the potential value associated with a shift in consumer behavior towards healthier alternatives to conventional chocolate assumes paramount significance. Organic chocolates, in many respects, represent a superior choice vis-à-vis their conventional counterparts. They are renowned for their enhanced health attributes, owing to their chemical-free composition that mitigates potential health hazards. Moreover, organic chocolate production eschews the use of synthetic chemicals, thereby positively contributing to environmental sustainability by averting potentially adverse ecological ramifications. The current study endeavors to assess the efficacy of three distinct behavioral nudges—health, environment, and social—on stimulating demand for organic chocolates. The research seeks to provide policymakers and marketers with invaluable insights into the application of nudge theory within societal frameworks. The overarching objective lies in identifying the most potent form of nudge capable of driving demand for organic chocolates, thereby empowering policymakers and marketers to align their product offerings accordingly to optimize sales performance within the Indian market. To achieve this, a survey employing the Contingent Valuation Method was conducted, which facilitated the measurement of the most effective nudge and the underlying behavioral mechanism. A payment card elicitation method was utilized within a field survey, and Interval Regression was employed to estimate demand. The research findings underscore the substantial positive impact of incorporating health or environmental information on packaging, as it significantly heightens the demand for organic chocolates. The study also delves into a comprehensive discussion concerning the plausible underlying behavioral mechanisms responsible for these observed effect.
Keywords: nudges, behavioral economics, experiment, stated preference survey, health, environment, social, organic chocolates.
JEL Classification: C93, D9, Q50.
