Corporate social responsibility and biotechnological foods: an experimental study on consumer’s behaviour

Abstract

PurposeNew food technologies based on biotechnological organisms are increasingly becoming a cause for debate and conflicting discussions. This paper aims to investigate hypothetical consumer behaviour, and the willingness to pay (WtP), towards a specific type of genetically modified food in relation to particular indications on the label about the implementation of corporate social responsibility (CSR) initiatives by manufacturing companies.Design/methodology/approachFor this purpose a choice experiment was used on a representative sample of more 1,300 Italian families, interviewing the component in charge of the buying choices within the selected household. A random parameter logit-error component model allows for heterogeneity in consumer preferences and potential correlation across utilities and across taste parameters. Beyond investigating consumers’ preferences regarding that product through a choice experiment, the aim was to detect the drivers of that purchase and preference heterogeneity across consumers’ choice, and the WtP, for the products with those features.FindingsResults also offer a topic for further discussion and are useful for companies’ strategies to understand how to address such concerns through appropriate CSR policies. The main results are: CSR initiatives always have a strong effect on consumer choice; the price is consistently important, exerting a negative influence in the decision-making process for individuals; consumers may also know possible effects of genetically modified foods, but that does not always translate into purchase behaviour.Originality/valueThe research considers a particular link between genetically modified food and CSR not addressed in details; moreover, it is also based on the author’s own previous research and is its natural continuation and development, but also important for future researches.