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Perceived fairness of direct-to-consumer genetic testing business models.

Philipp A Toussaint¹, Scott Thiebes¹, Manuel Schmidt-Kraepelin¹

¹Department of Economics and Management, Karlsruhe Institute of Technology, Kaiserstr. 89, 76133 Karlsruhe, Germany.

Electronic Markets

|July 25, 2022

Summary

Consumers find direct-to-consumer (DTC) genetic testing fairer when privacy is protected, but price remains the most significant factor influencing their perception of fairness in these services.

Keywords:

Business models Direct-to-consumer genetic testing Discrete choice experiment Genetic privacy Retail fairness

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Area of Science:

Consumer Behavior
Genetics
Business Models

Background:

Direct-to-consumer (DTC) genetic testing services are rapidly expanding despite consumer and expert concerns about business practices like data reselling.
Understanding consumer perceptions of fairness is crucial for navigating the ethical landscape of DTC genetic testing.

Purpose of the Study:

To investigate consumer fairness perceptions of DTC genetic testing business models using retail fairness theory.
To identify key attributes influencing consumer preferences for DTC genetic testing services.

Main Methods:

A discrete choice experiment was conducted with 16 attributes to model consumer preferences.
Retail fairness theory was employed as the analytical lens.

Main Results:

Consumers perceive DTC genetic testing services that prioritize privacy as fairer.
Price emerged as the primary driver of consumer fairness perceptions in the DTC genetic testing market.
The study identified specific consumer preferences regarding DTC genetic testing business models.

Conclusions:

Consumer perceptions of fairness in DTC genetic testing are influenced by a balance between privacy protection and cost.
The findings offer insights into disruptive business models in healthcare and retail fairness.
Discrete choice experiments are effective for eliciting perceived fairness in consumer services.