How to position ‘mildly sustainable’ products: The joint impact of assortment display and price setting

To tempt consumers towards more sustainable food choices, ‘intermediately’ sustainable products (i.e., in between conventional and organic) have been introduced. This poses the managerial question how to best position this range of products. In an experiment with intermediately sustainable meat products, we show that the choice share of these intermediate products is high when price level and physical display signal a consistent positioning of these products. This implies that the effect of layout depends on the price level at which intermediately sustainable products are offered. When these products are offered at intermediate prices, displaying them in a separate section will increase choice (i.e., unique feature positioning). Yet, when intermediately sustainable products are offered at low prices, a mixed display in which intermediately sustainable and conventional products are dispersed will be more effective in increasing choice for the intermediately sustainable options (i.e., comparative positioning). These results show the importance of assortment display in affecting the sales potential of products, and how the most optimal display in-store depends on price level.