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Menu choice stated preference tasks to capture demand complementarity in health.

Elisabeth Huynh1, Joffre Swait2, Emily Lancsar1

  • 1Department of Health Economics, Wellbeing and Society, National Centre for Epidemiology and Population Health, Australian National University, 63A Eggleston Road, Acton, ACT, 2601, Australia.

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Summary

Bundled health programs, like exercise and nutrition, appeal to specific consumer groups. Understanding these preferences through menu-based choice experiments helps tailor interventions for healthier lifestyles.

Keywords:
BundlingChoice set formationComplementarityDiscrete choice experimentsExerciseMenu choicesNutritionStated preference

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Area of Science:

  • Health Economics
  • Behavioral Science
  • Public Health Interventions

Background:

  • Health programs are often offered as packages, enabling both substitution and complementarity.
  • Understanding consumer preferences for bundled health services is crucial for effective program design.

Purpose of the Study:

  • To adapt Discrete Choice Experiments (DCEs) for analyzing bundled health programs.
  • To investigate consumer preferences for combined exercise and nutrition programs.
  • To develop an extended choice set generation model (GenL) for bundled options.

Main Methods:

  • A menu-based choice experiment was conducted with a nationally representative sample of 333 Australians.
  • Participants chose between nutrition-only, exercise-only, combined, or status quo options.
  • A latent class GenL model was used to analyze preference heterogeneity.

Main Results:

  • A significant portion of the population expressed interest in combined exercise and nutrition programs.
  • Two distinct latent classes emerged: those preferring offered programs and price-sensitive individuals preferring the status quo.
  • Preference heterogeneity directly influenced bundling preferences, with combined offerings appealing to specific consumer segments.

Conclusions:

  • Menu-based choice tasks effectively capture demand for bundled health interventions.
  • Policymakers can leverage these insights for targeted interventions promoting combined exercise and nutrition.
  • Understanding consumer segmentation is key to optimizing the uptake of health programs.