Behavioral economics of nudging: Health warnings on beer product labels in the Czech Republic

The aim of this Bachelor's Thesis is to investigate the effectiveness of currently used warning labels on beer products in the Czech Republic. Appropriately designed warning labels on alcoholic beverages can positively influence the attention of given consumers, their understanding, judgment and ultimately their behavior (Dimova & Mitchell, 2022). However, if the choice architecture is set in such a way that the placement of warning labels is not mandatory for the manufacturer. Thus, the voluntary placement of warning labels in the form of self-regulation turns out to be ineffective in reducing the amount of beer consumed. On the contrary, the social influence (social drinking), the daily frequency of beer consumption and a higher income level are shown to be variables that, according to the created linear regression model (OLS) statistics, influence the rate of beer consumption. Two data sources (questionnaire survey and market research) are added to investigate the effectiveness of current warning labels. The warning labels used in the Czech Republic can be only found on the back of the label and occupies a very small part of the entire label. As a consequence, consumers do not pay enough attention to the warning, which implies a possible improvement in warning labeling (Kersbergen and Field, 2017), and therefore this first step in identifying inefficiencies represents a benefit for future research.