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

Author

Listed:
  • Philipp A. Toussaint

    (Karlsruhe Institute of Technology)

  • Scott Thiebes

    (Karlsruhe Institute of Technology)

  • Manuel Schmidt-Kraepelin

    (Karlsruhe Institute of Technology)

  • Ali Sunyaev

    (Karlsruhe Institute of Technology)

Abstract

Although consumers and experts often express concerns regarding the questionable business practices of direct-to-consumer (DTC) genetic testing services (e.g., reselling of consumers’ genetic data), the DTC genetic testing market keeps expanding rapidly. We employ retail fairness as our theoretical lens to address this seeming paradox and conduct a discrete choice experiment with 16 attributes to better understand consumers’ fairness perceptions of DTC genetic testing business models. Our results suggest that, while consumers perceive privacy-preserving DTC genetic testing services fairer, price is the main driver for fairness perception. We contribute to research on consumer perceptions of DTC genetic testing by investigating consumer preferences of DTC genetic testing business models and respective attributes. Further, this research contributes to knowledge about disruptive business models in healthcare and retail fairness by contextualizing the concept of retail fairness in the DTC genetic testing market. We also demonstrate how to utilize discrete choice experiments to elicit perceived fairness.

Suggested Citation

  • Philipp A. Toussaint & Scott Thiebes & Manuel Schmidt-Kraepelin & Ali Sunyaev, 2022. "Perceived fairness of direct-to-consumer genetic testing business models," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1621-1638, September.
  • Handle: RePEc:spr:elmark:v:32:y:2022:i:3:d:10.1007_s12525-022-00571-x
    DOI: 10.1007/s12525-022-00571-x
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    Cited by:

    1. Rainer Alt, 2022. "Electronic Markets on platform culture," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1019-1031, September.

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    More about this item

    Keywords

    Direct-to-consumer genetic testing; Business models; Retail fairness; Genetic privacy; Discrete choice experiment;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D49 - Microeconomics - - Market Structure, Pricing, and Design - - - Other
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

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