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

Purpose New 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/approach For 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. Findings Results 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/value The 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.