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How GMO labels affect customer decision making with food purchases

This research reveals that GM labels add an important product feature for consumers to evaluate. The labels draw attention away from factors such as price, allowing firms to charge a premium for non-GM products.

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Photo by Markus Spiske from Unsplash.com

Researchers from Neoma Business School, Concordia University, and University of Wisconsin-Madison published a new paper in the Journal of Marketing that examines how the GMO labeling that policymakers implement affects consumer choice.

The study, forthcoming in the Journal of Marketing, is titled “GMO Labeling Policy and Consumer Choice” and is authored by Youngju Kim, SunAh Kim, and Neeraj Arora.

Genetically modified (GM) foods are widespread worldwide, but they are also controversial and subject to regulatory oversight. For example, in the United States, all GM foods will be required to display a “Bioengineered” label by 2022, a policy decision that is heavily debated. Most scientists claim that genetically modified organisms (GMOs) in foods are safe for human consumption and offer societal benefits such as better nutritional content. In contrast, many consumers have an overall negative attitude toward GMOs. These conflicting views create a fundamental tension for policymakers in how GM-foods should be labeled.

To reconcile the diverging views that scientists and consumers have on GMOs, policymakers all over the world adopt either a voluntary or a mandatory GMO labeling policy. In a voluntary labeling regime, food producers who make non-GM products disclose such information through a “non-GMO” label. Conversely, in a mandatory labeling regime, food manufacturers are required to include labels such as “contains GMO” when their foods are genetically modified.

To understand how GMO labeling policies impact consumer choice, this research team conducted four studies.

Study 1 examines whether consumer choice depends on the GMO labeling regime. The results show that each labeling regime greatly affects consumers’ demand for GM foods. Labels such as “non-GMO” (absence labeling) and “contains GMO” (presence labeling) serve as negative signals for GM foods and tend to shrink their market share. The market share shrinkage effect is stronger under the mandatory policy (presence labeling) than under voluntary policy (absence labeling).
 
Study 2 examines the impact of GMO labeling (absence vs. presence) on consumers’ sensitivity to the GMO attribute, price, and category purchase. The results show that presence-focused labeling (“contains GMO”) makes consumers more sensitive toward the GMO attribute, less sensitive toward price information, and more reluctant to make a purchase in a category. Why? Presence-focused labeling enhances consumers’ concerns about GMOs, encourages them to pay greater attention to GMO information, and makes their choice more difficult. 
 
Study 3 finds that the increased preference for non-GM products is amplified when both “non-GMO” and “contains GMO” labels are displayed on the products.
 
Study 4 shows that the signal policymakers decide to send via the GM label (e.g., a green logo may be viewed as an endorsement and a yellow logo as a cautionary signal) significantly affects consumer choice. To be more specific, participants exposed to positive GMO labels tend to be less negative toward GMOs than those exposed to neutral GMO labels. A GMO label format has a greater impact on consumers who have no strong opinions about GMOs, suggesting that preference for GM foods is highly pliable for a large segment of consumers. 
 
Consumers’ willingness to pay (WTP) for non-GM products critically depends on the policy regimes and the label policymakers adopt. Consumers have higher WTP for non-GM products in the mandatory (vs. voluntary) regime and when the adopted GMO label signals a less positive image. Across studies, both the voluntary and mandatory labeling regimes create incentives for firms to add premium-priced, non-GM products to their portfolio of offerings. These incentives are substantially greater in the mandatory labeling regime than in the voluntary regime. 
 
The research teams says that “Our findings provide a clear understanding of how the GMO labeling that policymakers implement affects consumer choice. Any form of GMO labeling has significant externalities.” GMO labeling reduces the demand for GM foods. The signal contained in the GMO label also affects consumer choice. Even a neutral GMO label may lead consumers to focus on the negative aspects of GMOs, pay less attention to price information, and become more reluctant to make a purchase in the product category. Unlike the positive “Bioengineered” logo that the Unites States adopted, the label in Brazil is a yellow triangle resembling a caution sign. Therefore, the externalities of GMO labeling noted in this study will be larger in Brazil.
 
What are the takeaways for marketers? This research reveals that GM labels add an important product feature for consumers to evaluate. The labels draw attention away from factors such as price, allowing firms to charge a premium for non-GM products. GM manufacturers inevitably lose market share when presence-focused labeling is enforced. They face both reduced brand share and reduced category demand. Because mandatory presence-focused labeling makes consumers less price-sensitive, GM food manufacturers may attempt to compensate for their sales loss by considering promotions other than price cuts.

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As local businesses grow, digital tools help stay flexible amid changing customer behavior

As digital payments become increasingly embedded in everyday transactions, SMEs are quickly discovering that growth also means needing to adapt their operations to keep pace with how customers want to transact and ensuring payments don’t become a barrier to their growth.

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For many small and medium-sized businesses today, growth no longer follows a single path. Some expand through new branches, while others build their customer base by moving between pop-ups and bazaars. As they grow, they’re also finding ways to ensure they meet the evolving habits and preferences of consumers – including the way they pay.

Data from the Bangko Sentral ng Pilipinas in 2025 showed that QR Ph person-to-merchant (P2M) transactions grew by 246.9% in volume, reaching 183.3M transactions from 52.8M only in 2024. Transaction value also grew by 211.3%, reaching ₱926.1 billion from ₱297.5 billion the previous year.

As digital payments become increasingly embedded in everyday transactions, SMEs are quickly discovering that growth also means needing to adapt their operations to keep pace with how customers want to transact and ensuring payments don’t become a barrier to their growth.

Chef Christine Balucas-Tabu of smash burger restaurant Bun Run, and Gabriel Jocson IV and Stephanie Dianne Ang, founders of matcha shop Kyoto House, know this firsthand. Though they’ve taken different paths to growth, both have had to adapt how they operate to meet customers while keeping the experience they’ve built consistent.

Growth without losing what works

For Chef Christine Balucas-Tabu, who serves as Culinary Operations Director at Bun Run, expanding a restaurant business while preserving the overall experience that made customers fall in love with it in the first place requires a careful balance. This is something she knew well when the brand decided to open its second shop in Makati in October 2025., making sure that what customers loved about the original San Juan branch could also be found in Makati, while they adapted to a different crowd and their preferences.

“Ultimately, we want our customers coming back for more not just because the food tastes good but because the experience was even greater,” she explains. Part of that experience is making sure the payment process is as seamless as possible – for both staff and customers. “GCash for Business has been a great part of the growth of our business to make all transactions smooth and sound,” she adds.

Bun Run uses GCash SoundPay Plus, a device that accepts QRPH and card payments with  real-time voice confirmation, helping staff verify payments faster and safely. With over 80% of their transactions cashless – around 30% through QRPH and 50% via debit and credit cards according to Chef Christine – having a single device that supports multiple payment methods has helped keep transactions fast and seamless, especially during peak hours.

Growing by meeting customers where they are

Flexibility takes on a different look for Kyoto House. Rather than operating from a permanent store, the business reaches customers through online channels, bazaars, and pop-ups. For its owners, this approach allows them to reach more of its target customers: home brewers who want to enjoy a delicious cup of matcha in the comfort of their own homes, but may not know where to start.

Today, 40% of the sales of Kyoto House come from pop-ups and bazaars. Its flexible model has been a key growth driver, and according to its owners, being present in multiple locations allows them to introduce their products and teach their customers how they can correctly prepare matcha at home. But because they’re constantly on the move, they also need the flexibility to make payments work wherever they go.

“What should not change is the experience customers receive. Wherever we are, we want the service to feel warm, the product information to remain accurate, and the payment process to be simple and reliable,” Gabriel and Stephanie emphasizes.

On a typical weekend bazaar, the team typically handles 300-450 transactions per day, with 100% of their payments being cashless, making it essential to have a payment solution that can keep up with the pace. For that, they can count on the flexibility that GCash Soundpay Plus gives them.

“For us, ease does not mean removing every challenge. It means building systems that allow us to spend less time on preventable problems and more time improving the products and serving our customers,” shares Gabriel and Stephanie.

Flexibility is the new way to grow for SMEs

The growth of Bun Run and Kyoto House may look different, but their journeys point to the same need: having the flexibility to adapt and scale. With tools like GCash SoundPay Plus, merchants can streamline payments, serve more customers with ease, and unlock more opportunities for revenue growth.

Businesses can get started by creating a Starter Plan account on the GCash for Business Portal with as simple as a GCash verified account to enjoy P5M wallet limit then start ordering a GCash SoundPay Plus device.

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Many MSMEs remain vulnerable to disruptions beyond their control

Years of hard work can be compromised in a matter of hours by natural disasters that the country regularly experiences, due to its location along the Pacific Ring of Fire and within the typhoon belt.

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Often regarded as the backbone of the Philippine economy, the country dedicates the month of July in recognition and celebration of micro, small, and medium enterprises (MSME). According to the Department of Trade and Industry, MSMEs account for 99% of businesses nationwide and provide employment to nearly 65% of the country’s workforce.

Yet despite their vital role, many MSMEs remain vulnerable to disruptions beyond their control, from rising costs and cash flow pressures to other unforeseen events that can threaten business continuity. Years of hard work can be compromised in a matter of hours by natural disasters that the country regularly experiences, due to its location along the Pacific Ring of Fire and within the typhoon belt. For entrepreneurs, being prepared goes beyond simply protecting physical assets; it is ensuring they can continue supporting the people and communities who rely on them.

When unexpected setbacks occur, it is never only the business owner who feels the impact. Every closed storefront, delayed operation, or damaged workplace can also affect the people whose livelihoods rely on it. Protecting a business is more than safeguarding an investment; it is also protecting the dreams, stability, and future of everyone who relies on it to keep running.

This message comes to life in the latest and last film of AXA Philippines’ Everyday Protectors campaign, which follows Lucing, a bakery owner whose shop is damaged by a powerful typhoon. As heavy rain continues to pour, Lucing and her staff choose to keep distributing bread to people in their neighborhood who need it most, demonstrating that for many entrepreneurs, being there for their community is important, especially during crises.

The film ends with Lucing’s bakery reopening under clearer skies, a hopeful reminder that businesses can recover when they are prepared for the unexpected. That readiness is especially important in a country where severe calamities can force businesses to close permanently. According to the Philippine Institute for Development Studies, around 25% of SMEs are unable to reopen. For Lucing, however, the storm did not mark the end of her story as she was equipped with advanced protection that enabled her to begin again and continue supporting the people who depend on her business.

Lucing’s story reflects the kind of risk that many Filipino entrepreneurs face and the role protection can play in helping them recover. Through MSME Secure, AXA helps business owners recover from unforeseen events so they can move forward with greater confidence. In addition to coverage for property damage and spoiled inventory caused by fire, typhoons, floods, and other covered calamities, MSME Secure provides protection against risks such as burglary, employee fraud, and the loss of business funds due to theft or robbery—whether outside the premises, in transit, or in the custody of staff or messengers. It also helps with legal liabilities and related expenses arising from incidents involving customers or other third parties.

Recognizing that businesses have different needs and budgets, AXA also offers MSME Secure Lite for basic protection and MSME Secure Max for more comprehensive coverage, allowing entrepreneurs to choose the level of protection that best fits their business.

By helping businesses bounce back after unexpected disruptions, AXA enables entrepreneurs to focus not only on rebuilding what was lost, but also on continuing to create opportunities, support livelihoods, and serve the communities that count on them.

As the one name to cover all your insurance needs, discover how AXA can provide complete protection for small and medium businesses, health, car, and travel here.

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Tip for resto owners and managers: Plating matters, and how sauce placement can make a dish appear healthier

The way food is presented can shape diners’ expectations before they even taste it.

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Our experience of eating is shaped by the combined influence of vision, smell, touch, and taste. The way food is presented can shape diners’ expectations before they even taste it. Visual features, such as arrangement and esthetic design, can influence perceptions of taste, quality, healthiness, and overall appeal.

Although previous studies have examined factors such as plate size, arrangement, and neatness, relatively little attention has been given to sauce presentation. Sauces can serve as both flavor additions and visual elements, and their placement may shape how diners perceive and interact with a dish.

To investigate these effects, researchers led by Dr. Kosuke Motoki of the Faculty of Business and Commerce, Keio University, Japan, examined how chef-designed sauce presentations influence consumers’ evaluations of a dish. The research was conducted in collaboration with Dr. Kohei Yamaguchi and Dr. Haruka Tohara of the Department of Dysphagia Rehabilitation, Institute of Science Tokyo, Japan, and Dr. Shin-ichi Ishikawa of the Department of Food Science and Business, Miyagi University, Japan, along with Chef Tatsuya Noda of the PLUM KNOT Co., Ltd., Japan. Their findings were published in Volume 15, Issue 17 of the journal Foods.

The idea for the study grew from discussions among Dr. Motoki, Dr. Yamaguchi, Dr. Ishikawa, and Chef Noda about food artistry and plating at 8go, the restaurant at Gastronomy Innovation Campus Tokyo (GIC Tokyo), where the study was later conducted. GIC Tokyo, developed in partnership with Tokyo Tatemono Co., Ltd., provides a collaborative setting for researchers, chefs, and industry partners.

“Our study involved 57 participants in a real restaurant setting at 8go, where we evaluated the same sturgeon-fritter dish presented with two different sauce arrangements. Sturgeon aquaculture is primarily oriented toward caviar production, while sturgeon meat is less commercially prominent. Its fuller use may improve resource efficiency, placing the study in a sustainability-oriented culinary context,” explains Dr. Motoki.

Participants evaluated a sturgeon-filet dish in two ways. In the minimal plating condition, sauces were placed separately on the plate, while in the drizzle presentation condition, sauces were distributed across the plate and around the food. Each participant experienced both versions, allowing the researchers to compare individual responses. The dish was prepared in collaboration with a professional chef from a restaurant recognized with a Michelin Green Star.

Before tasting, participants rated various measures including expected tastiness, perceived healthiness, intention to eat, overall liking, perceived artistic presentation, and willingness to pay. Minimal plating produced a significantly higher perceived healthiness rating than drizzle presentation: 4.65/7 compared with 4.05/7. This difference remained significant after correction for multiple comparisons.

“We observed that minimal plating made the same dish appear healthier, showing how small visual details can influence our first impressions of the food,” notes Dr. Motoki.

No significant differences were found in the other pre-tasting measures. After tasting, minimal presentation received higher ratings for overall liking and intention to eat more, but these differences did not remain significant after correction for multiple comparisons and were therefore considered preliminary.

One possible explanation for the pre-consumption healthiness finding could be visual simplicity. The minimal presentation may appear less visually dense, potentially associating it with qualities such as simplicity or naturalness.

Additionally, separately placed sauces may also give diners greater control over how much sauce they use, which could influence the eating experience. However, these mechanisms were not directly measured.

The findings offer a practical direction for evidence-based food presentation in restaurants and hospitality. “By bringing together researchers, a professional chef, and 8go as a real-world research setting within GIC Tokyo, we were able to examine how chef-designed plating shapes diners’ evaluations before and after tasting,” says Dr. Motoki. These findings show that sauce placement can help communicate a healthier impression. The preliminary post-tasting results also provide a starting point for investigating whether presentation and the way diners use the sauce may influence enjoyment.

Importantly, the researchers emphasize that looking healthier does not necessarily mean being nutritionally healthier. Further studies across different foods, plating styles, and dining environments are needed to gain deeper insights.

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