Risk aversion impacts on need for transparency and traceability pre- and post-pandemic

The need for transparency and traceability of product information has increased due to the increased attention towards food contamination in both the United States and China. Examining this need is vital to companies considering business decisions involving product development, supply chain management, and marketing tactics. To address this need, companies must understand the underlying motivators. Through MANOVA analysis, this paper studies how risk aversion impacts consumers’ need for transparency and traceability concerning product information both before and after the COVID-19 pandemic. Results obtained pre-COVID-19 indicate that high-risk-averse individuals have an increased need for transparency and traceability. Post-COVID-19, results indicate no difference between high- and low-risk-averse individuals. Study 1 (pre-pandemic) results suggest that firms need to consider risk related to their product when increasing transparency and traceability. Study 2 (post-pandemic) results indicate that firms should create a generalised approach to improve transparency and traceability. The pandemic minimised the impact of risk aversion on the need for transparency and traceability.