A large-scale field experiment conducted by Harvard-MIT, in collaboration with Gap Inc., provides new evidence on consumer behavior in relation to ethical products.

 

The experiment was conducted across 111 Banana Republic factory stores. It found that products clearly labeled with information about fair labor standards had a substantial positive effect on sales among a segment of shoppers even in outlet stores where customers are predominantly concerned with prices.

The products increased sales of a more expensive women’s item by 14%.