Pam Scholder Ellen and Paula Fitzerald Bone
Executive Summary
Genetic modification (GM) is a relatively new technology used in approximately 70% of the processed foods found on U.S. grocery store shelves. However, these common GM foods are at the center of international controversies, among which is whether and how to label these products. Whereas the European Union argues for consumers’ right to know, the U.S. Food and Drug Administration believes that this disclosure could lead to stigmatization. Using stigma theory, the authors examine the effects of labeling GM foods.
Stigma theory in the marketing been used almost exclusively to examine social stigma, though other fields address stigma as it applies to products, places, and technologies. Stigma is a multidimensional formative construct—a mark (i.e., label) that is perceived negatively; considered deviant, immoral, and undesirable; and is associated with inflated risk perceptions. In addition to identifying the relevant aspects of true stigma, the authors suggest two cognitive processes by which stigma occurs: negative attributions regarding the stigmatizing mark and negative cognitive associations evoked by the mark.
To test the potential for labels to stigmatize a product, the authors presented 210 consumers with a product labeled as either “Not Genetically Modified” or one of three labels that disclosed that the product was genetically modified, consistent with labels proposed by international bodies. One of these three disclosures gave no reason for using GM ingredients, whereas the other two disclosures noted the benefits of GM—either to reduce pesticides or to increase yield. Respondents perceived pesticide reduction as primarily benefiting consumers, but they perceived increasing yield as primarily benefiting the producer.
Despite significant scientific agreement that GM products pose no known risk from consumption, the authors find evidence that labeling a product as containing GM ingredients inflates negative associations and risk. Moreover, they find that labeling a product as not containing GM ingredients leads consumers to erroneous negative beliefs and risk perceptions about the GM process. This is a significant problem because it means that GM labeling is not adequately and accurately informing consumers about risk and that such inaccuracy may be spilling over to competing products. This finding confirms the Food and Drug Administration’s suspicions that mandatory GM labeling may mislead consumers.
Biography
Pam Scholder Ellen is Associate Professor Of marketing at Georgia State University and associated faculty of the Nonprofit Studies program in the Andrew Young School of Policy Studies. She received her bachelor’s degree from Auburn University and her PhD from the University of South Carolina. Her research primarily focuses on perceptual biases, particularly in the area of social and public policy concerns. This includes work on consumer response to corporate social responsibility and the effect of claims and cues, such as labels and promotional execution on consumer attributions, attitudes, and choice. She has published in Journal of Consumer Research, Journal of Public Policy & Marketing, Journal of Business Research, Personality and Social Psychology Bulletin, Journal of Academy of Marketing Science, Marketing Letters, Journal of Advertising, Journal of Retailing, and Journal of Consumer Affairs.
Paula Fitzgerald Bone is Nathan Haddad Professor of Business Administration at West Virginia University. She received her undergraduate degree from University of Alabama and her doctorate from University of South Carolina. Her research focuses on primarily on biases in perception in the food and drug industries. She also studies theories of consumer choice between the present and the future. Her most recent works have been published in Journal of Consumer Affairs, Journal of Public Policy & Marketing. Her current projects include investigating the best way to present risk information in the pharmaceutical industry and finding ways to communicate level of science supporting health claims on food and supplement packages.
Journal of Public Policy & Marketing, Vol. 27, No. 1, Spring 2008
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