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Household demand persistence for child micronutrient supplementation.

Travis J Lybbert1, Stephen A Vosti1, Katherine P Adams1

  • 1University of California, Davis, United States.

Journal of Health Economics
|October 28, 2018
PubMed
Summary

Repeat purchases of food-based micronutrient supplements are price sensitive. Loyalty cards increased demand more than discounts, especially for non-poor households, highlighting the need for innovative delivery platforms.

Keywords:
Burkina FasoDemandEarly childhoodMicronutrientsSupplementationUndernutrition

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Area of Science:

  • Public Health
  • Nutrition Science
  • Behavioral Economics

Background:

  • Early-life micronutrient deficiencies impact short- and long-term health outcomes.
  • Private supply chains are crucial for delivering preventative micronutrient supplementation effectively.
  • Understanding household demand is key to improving supplementation coverage.

Purpose of the Study:

  • To evaluate the effectiveness of different market-based strategies for increasing repeat purchases of a food-based micronutrient supplement.
  • To assess the impact of price and non-price incentives on supplement consumption in rural Burkina Faso.
  • To identify factors influencing household demand persistence and heterogeneity for micronutrient supplements.

Main Methods:

  • A 60-week market trial was conducted with established vendors in rural Burkina Faso.
  • Randomized price and non-price treatments (including loyalty cards) were implemented.
  • Household purchasing behavior and repeat purchase rates were monitored.

Main Results:

  • Repeat purchases of the micronutrient supplement were highly price sensitive.
  • Loyalty cards significantly boosted demand, outperforming price discounts, particularly in non-poor households with male cardholders.
  • Purely retail distribution reached only a small minority of households with sufficient supplementation.

Conclusions:

  • Innovative public-private delivery platforms are needed to improve micronutrient supplementation coverage.
  • Demand-side insights into household heterogeneity and persistence are essential for designing effective interventions.
  • Behavioral incentives like loyalty programs show promise in promoting consistent supplement use.