Abstract
Consumer interest in eco-friendly and local food sources is growing, leading to the adoption of glass bottles for taste preservation, recyclability, and reusability. However, the logistics of bottle return pose challenges for persistent demand. This study investigates the impact of monetary incentives on glass-bottled milk purchases and their potential to foster long-term habit changes. Partnering with a grocery co-op with more than 10,000 members, we implemented a randomized experiment at the household level where treated members received coupons at purchase, others upon bottle return, and a control group received no incentive. We hypothesize increased sales for incentivized groups with higher return rates when coupons are tied to returns and overall habit formation in treatment groups. This study offers valuable insights into whether habit formation drives lasting shifts toward sustainable dairy choices.