Assessing Consumers’ Valuations of Socially Responsible Products with Controlled Experiments

Abstract

This chapter discusses the use of controlled experiments to study consumers’ valuations of socially responsible products. We review three common experimental methodologies: conjoint analysis, controlled laboratory experiments, and controlled field experiments. We contrast these methods with examples and highlight the strengths of each method. Despite the large literature on consumers’ valuations of social responsibility, few studies link consumers’ valuations with a company’s supply chain strategy. We present a recent study that fills this gap by utilizing a controlled laboratory experiment to investigate how the level of supply chain transparency may influence consumers’ valuations of a company’s social responsibility practices. We conclude by discussing a few interesting topics for future studies.