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- Mandatory Versus Voluntary GMO Labelling: Does It Matter? Yes.
 
  

 

  #  Mandatory versus voluntary GMO labelling: Does it matter? Yes. 



 Published on 17/02/2022   [  View profile on Facebook](https://www.facebook.com/sharer.php?u=https://neoma-bs.com/news/mandatory-versus-voluntary-gmo-labelling-does-it-matter-yes) [  View profile on X-twitter](https://twitter.com/intent/tweet?urlhttps://neoma-bs.com/news/mandatory-versus-voluntary-gmo-labelling-does-it-matter-yes) [  View profile on Linkedin](https://linkedin.com/shareArticle?url=https://neoma-bs.com/news/mandatory-versus-voluntary-gmo-labelling-does-it-matter-yes) [   View profile on Email](mailto:?subject=https://neoma-bs.com/news/mandatory-versus-voluntary-gmo-labelling-does-it-matter-yes) [   View profile on Copy](javascript:void(0);https://neoma-bs.com/news/mandatory-versus-voluntary-gmo-labelling-does-it-matter-yes)

 **Genetically modified (GM) foods are widespread worldwide, but they are also controversial and subject to regulatory oversight. In** [**GMO labeling and Consumer Choice**](https://www.ama.org/2022/01/19/how-gmo-labels-affect-customer-decision-making-with-food-purchases/)**, published in the** [***Journal of Marketing***](https://www.ama.org/journal-of-marketing/)***,* Youngju Kim, professor at NEOMA and her co-authors examine how the GMO labeling that policymakers implement affects consumer choice.**

Across four studies, [Youngju Kim](https://neoma-bs.com/professors/kim-youngju-2) ([NEOMA Business School, France](https://neoma-bs.com/)), SunAh Kim (Concordia University, Canada), and Neeraj Arora (University of Wisconsin-Madison, USA) found out that:

*“GMO labels create vertical differentiation for many consumers by signaling that non-GM products are better than GM products.*

*GMO labels draw attention away from factors such as price—making it less important—and allow firms to charge a premium for non-GM products.*

*Accordingly, consumers show higher willingness-to-pay for non-GM products when a GMO label is present.*

*Even a voluntary GMO labeling policy deserves regulatory scrutiny because it causes a decrease in demand for GM products.*

*A mandatory GMO labeling policy shrinks the demand for GM products even more.*

*The signal contained in the GMO logo (e.g., color) also plays a critical role in consumers’ perceptions of GM products*.”

## Learn more:

- Read the full article on American Association of Marketing (AMA) website: [**How GMO Labels Affect Customer Decision Making with Food Purchases**](https://www.ama.org/2022/01/19/how-gmo-labels-affect-customer-decision-making-with-food-purchases/) and [press release](https://www.ama.org/2022/01/19/press-release-from-the-journal-of-marketing-how-gmo-labels-affect-customer-decision-making-with-food-purchases/).
- Read research paper: [Kim Y, Kim S, Arora N. **EXPRESS: GMO Labeling Policy and Consumer Choice**. *Journal of Marketing*. February 2022](https://journals.sagepub.com/doi/10.1177/00222429211064901)



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