Why does not everybody purchase fair trade products? The question of the fairness of fair trade products' consumption for consumers1

Current statistics show that more than three out of four people in France have heard about fair trade. However, fair trade goods are purchased in significantly higher proportions by executive class people, individuals with a postgraduate education, urban dwellers and high‐income earners. Why does not everybody purchase fair trade products? An important question follows: is fair trade not really fair for consumers? This paper seeks to gain deeper insight into what social features give rise to the consumption of fair trade goods using quantitative and qualitative data to verify the reasons for which fair trade goods are consumed by particular groups in society. It shows that the lack of access to information and financial resources can explain consumers' refusal to purchase fair trade products. But this explanation is incomplete, as the meaning given by consumers to their consumption appears to be a key‐factor to understand their behaviour: refusing to buy fair trade goods can be a deliberate choice.     

Fair Trade Coffee and Human Rights in Guatemala

This paper explores how the fair trade coffee market translates consumer action and shopping habits into the promotion of human rights in distant locales. This process does not occur through direct producer–consumer contact. Instead, it is channeled through two interrelated avenues. First, the fair trade certification system which requires producer groups to be democratic, transparent, and accountable and second, the relationships between producers and coffee roasters and importers, who, in this specific commodity chain, act as conduits for consumer actions and intentions. These two facets of the fair trade consumer market promote and protect the secure organizational space that is necessary for producer initiated community development. This freedom to identify and fulfill economic and social development goals through cooperation also reaffirms existing cultural traditions of service and mutual aid among producers. These key components of human rights compliance are critically important in countries such as Guatemala with its history of violent repression, structural inequality, and cultural discrimination against indigenous populations and community organizers. The analysis emerges from ongoing ethnographic research on a group of indigenous, fair trade coffee producers in Guatemala and their relationships with outside buyers and certifiers.

Through Thick and Thin: How Fair Trade Consumers Have Reacted to the Global Economic Recession

Research on fair trade has flourished over the past decade as fair trade food products have gained popularity amongst consumers in many developed economies. This study examines the effects of recessionary economic conditions on fair trade consumers’ purchasing behaviour. An online survey was administered to 306 fair trade consumers from Canada, the United Kingdom and the United States of America. The results reveal a discrepancy among fair trade consumers as only consumers that purchase fair trade on an occasional basis adhered to established consumer behaviour norms, i.e. decreasing their purchases of fair trade products and becoming significantly more price aware. Respondents who actively consume fair trade generally remained loyal to their purchase. While some active consumers altered their purchasing behaviour, this phenomenon was not common amongst this group as no statistically significant changes were observed. Differences were also noted among the three countries as the Canadian and US fair trade consumers significantly decreased their consumption of fair trade as a result of the recession, whereas the UK consumers did not. In addition to the research results, theoretical and managerial implications will be discussed along with future research directions.     

Do Ethical Values Work? A Quantitative Study of the Impact of Fair Trade Coffee on Consumer Behavior

This study investigates the large French fair trade (FT) market and the importance of FT coffee within it, in an attempt to identify some general features of FT consumers. On the basis of 7,587 transactions, the authors also determine the impact of FT characteristics on customer behavior. The main result is somewhat surprising: FT coffee purchases seem to involve a temporary commitment as FT coffee consumers appear less loyal than traditional coffee consumers. The authors derive some business and academic implications.     

Fair trade and global cognitive orientation: a focus on Spanish fair trade consumers

In the past few years, there has been an increase in the ‘ethical consumer’, characterized by more reflexive values like solidarity, social responsibility, multiculturalism and ecology. This idea has found support in the appearance and development of proposals like fair trade, along with others, such as responsible consumption, the recycling business or sustainable development. In a parallel way, also during the past few years, various analysts have pointed out that the phenomenon of globalization is changing not only the aspect of the world but also our way of perceiving it, which is progressively becoming a ‘global orientation’. In the framework of these two tendencies, this paper examines the extent to which ‘global orientation’ is also a characteristic of consumers of fair trade products. The paper presents a two‐phase exploratory study. The first phase, of a quantitative nature, showed the greater global orientation of Spanish consumers of fair trade products, and it obtained a typology of them. This typology showed, however, that not all the clusters of consumers of fair trade products have a high global orientation, which reveals that the relationship between this dimension and the consumption of fair trade products is not a direct, straightforward one. The subsequent qualitative study examined the components of this global orientation in each of the three clusters where the consumption of fair trade products was the highest. The results showed that the purchase of fair trade products is influenced by the ‘global orientation’ of the consumer, although other factors, such as a sense of social responsibility and trust in international non‐governmental organizations, can condition this influence.     

For Love or Money? Fairtrade Business Models in the UK Supermarket Sector

This article analyzes the distribution of benefits from Fair Trade between producing and consuming countries. Fair Trade and conventional coffee production and trade were examined in Nicaragua in 2005–2006 and 2008. Consumption of the respective coffees was assessed in Finland in 2006–2009. The results indicate that consumers paid considerably more for Fair Trade-certified coffee than for the other alternatives available. Although Fair Trade provided price premiums to producer organizations, a larger share of the retail prices remained in the consuming country relative to conventional coffee trade. Paradoxically, along with the certified farmers and cooperatives, Fair Trade empowers roasters and retailers.     

ἐμπάθɛια (Empatheia) and Caritas: The Role of Religion in Fair Trade Consumption

There is much still to learn about the nature of fair trade consumers. In light of the Pope’s encyclical Caritas in Veritate, this article sought to advance the current understanding by investigating the role of religion in fair trade consumption. In this study, fair trade consumers and non-consumers across many religions as well as the non-religious described their consumption of fair trade products as well as the use of their religious beliefs in their purchase behavior. It appears that the non-religious are slightly more inclined toward buying fair trade products. Of the religious observers studied, Buddhists have a greater propensity to buy fair trade. The relationship between religion and fair trade consumption is complex in that religious affiliation – group membership – alone is not enough to encourage members to buy fair trade; rather, it is the use of religious beliefs as a criterion in consumption behavior that linked religion to fair trade consumption.     

The Role of Personal Values in Fair Trade Consumption

Research in the U.S. on fair trade consumption is sparse. Therefore, little is known as to what motivates U.S. consumers to buy fair trade products. This study sought to determine which values are salient to American fair trade consumption. The data were gathered via a Web-based version of the Schwartz Value Survey (SVS) and were gleaned from actual consumers who purchase fair trade products from a range of Internet-based fair trade retailers. This study established that indeed there are significant interactions between personal values and fair trade consumption and that demographics proved to be useless in creating a profile of the American fair trade consumer.     

Consciousness for fair consumption: conceptualization,scale development and empirical validation

Sustainable consumption means that consumers act in an environmentally and socially responsible manner. Compared with the vast amount of studies concerning environmentally conscious consumer behaviour, relatively little is known about socially conscious consumption. The present paper focuses on fair consumption as an important aspect of social consumption. In our study, consciousness for fair consumption (CFC) is defined as a latent disposition of consumers to prefer products that are produced and traded in compliance with fair labour and business practices. A scale to measure CFC was conceptualized and tested in three independent empirical studies. Two studies were conducted at European universities (2010 and 2012) and used 352 and 362 undergraduate business students respectively. The third study, conducted in 2011, used 141 employees at a European university. The results confirmed the reliability and validity of the new CFC scale across samples. While being moderately related to other aspects of sustainable consumption such as ecological concern and moral reasoning, CFC was significantly distinct from those concepts. Most importantly, it was established that the CFC, as measured by the new CFC scale, is a strong determinant of consumption of fair trade products that has been neglected in existing research.     

In search of fair trade: ethical consumer decision making in France

While the market for fair trade products has been growing in many countries, this paper examines the French market where fair trade remains marginal but is experiencing growth. Using a modified Theory of Planned Behaviour framework the research examines consumer intention to purchase fair trade grocery products in order to explain the pertinent decision‐making criteria of both consumers of and potential consumers of fair trade. Results reveal that concerned consumers should not be treated as one homogeneous group, rather, the distinct variations in the factors that influence their decision making must be considered when promoting, labelling and distributing fair trade products. Implications for both sustaining and developing the market for fair trade products in the future are highlighted and discussed.     

Do Consumers Care about Ethics? Willingness to Pay for Fair‐Trade Coffee

Consumers’ buying behavior is not consistent with their positive attitude toward ethical products. In a survey of 808 Belgian respondents, the actual willingness to pay for fair‐trade coffee was measured. It was found that the average price premium that the consumers were willing to pay for a fair‐trade label was 10%. Ten percent of the sample was prepared to pay the current price premium of 27% in Belgium. Fair‐trade lovers (11%) were more idealistic, aged between 31 and 44 years and less “conventional.” Fair‐trade likers (40%) were more idealistic but sociodemographically not significantly different from the average consumer.     

Segmenting the market through the determinants of involvement: The case of fair trade

The fair trade market includes several types of actors, ranging from world shops to supermarkets, and from restaurants to clothing stores, involving a heterogeneous clientele. An analysis of fair trade consumers must be sufficiently granular to capture their different expectations, attitudes, and motivations; hence the need to segment the market. Through the concept of involvement, the objective of this research is to analyze and compare by segments the determinants of behavior of fair trade consumers. The research consists of three phases: segment identification, behavioral analysis by segment, and synthesis of the managerial implications. Two out of four hypothesized criteria prove to be effective in segmenting the fair trade market, namely age and distribution channel preference (whereas gender and education are not significant criteria). The analysis shows that the drivers of the involvement in the decision to buy fair trade products vary by segment. Thus, the article concludes with the development of communication axes that can trigger or strengthen the desired behaviors in each segment. It provides fair trade marketers with an efficient communication content that can be used for fair trade advertising, product packaging, branding, or merchandising. © 2011 Wiley Periodicals, Inc.     

Fair Trade Consumption: In Support of the Out-Group

Two sets of self-transcendence values – universalism and benevolence – act as a source of motivation for the promotion of the welfare of the other rather than the self. This article sought to determine the exact nature of the interaction between these sets of values and the consumption of fair trade products. In an earlier study, universalism values were found to have a significant influence on fair trade consumption whereas benevolence values did not, despite their shared goal and values theory. Additionally, there was supporting evidence in the extant literature that benevolence values should influence fair trade consumption behavior. This study took a closer look at the individual values that make up the value categories universalism and benevolence to better understand and describe this universalism–benevolence distinction in fair trade consumption. It was established that perhaps group membership has an influence on the decision to buy fair trade products. Specifically, it seems that an overriding sense of responsibility to one’s own group – the in-group – prevents some consumers from identifying with, empathizing with, and subsequently sharing resources with fair trade producers; members of out-groups in far-flung corners of the globe. It appears that the universalism–benevolence distinction in fair trade consumption might also be described as an in-group–out-group distinction.     

An assessment of ethical obligation and self‐identity in ethical consumer decision‐making: a structural equation modelling approach

Research has supported the addition of ethical obligation and self‐identity to models of consumer decision‐making in ‘ethical’ contexts. The particular placement of ethical obligation and self‐identity within a model of ethical consumer decision‐making remains unclear. Are these measures an antecedent to attitude or behavioural intention? This paper presents findings from a large scale survey of ethical consumers that explores, through structural equation modelling, the specific placement of these measures within a validated model of ethical consumer decision‐making, which uses the theory of planned behaviour as an initial framework. This research is examined within the ‘ethical’ context of fair trade grocery purchasing. (Fairly traded products are those purchased under equitable trading agreements, involving co‐operative rather than competitive trading principles, ensuring a fair price and fair working conditions for the producers and suppliers.)     

Understanding consumption behaviours for fair trade non‐food products: focusing on self‐transcendence and openness to change values

Using the Schwartz value system, this study explored the personal values of consumers related to fair trade product consumption. This study further investigated how the values determine beliefs, attitudes and purchase intentions associated with fair trade non‐food products. Data were collected using an online survey from a random sample of 1824 nationwide consumers. The results of this study revealed that fair trade purchasers show a higher level of self‐transcendence (universalism, benevolence) and openness to change values (self‐direction, stimulation) than non‐purchasers. These values also have positive effects on the formation of beliefs, attitudes and purchase intentions pertaining to fair trade non‐food products. Fair trade purchasers were also found to possess distinctive socio‐demographic characteristics concerning age, education and income. Findings can offer marketers specific information regarding consumers' motivations to purchase fair trade goods, which can improve targeting of products and ultimately increase the business and benefits of fair trade.     

Concepts of price fairness: empirical research into the Dutch coffee market

This paper researches perceptions of the concept of price fairness in the Dutch coffee market. We distinguish four alternative standards of fair prices based on egalitarian, basic rights, capitalistic and libertarian approaches. We investigate which standards are guiding the perceptions of price fairness of citizens and coffee trade organizations. We find that there is a divergence in views between citizens and key players in the coffee market. Whereas citizens support the concept of fairness derived from the basic rights approach, holding that the price should provide coffee farmers with a minimum level of subsistence, representatives of Dutch coffee traders hold the capitalistic view that the free world market price is fair.     

Applying neutralization theory to fair trade buying behaviour

More and more consumers are willing to pay a premium for fair trade products. However, great potential remains as the market shares of these products are still low. In the present study, neutralization theory was applied to investigate the reasons for consumers hesitating to buy more fair trade products. A postal paper‐and‐pencil survey was sent out using random addresses from the telephone book in the German‐speaking part of Switzerland, resulting in a final sample size of n = 620. The results show that the techniques of neutralization are used to various degrees. A principal component analysis resulted in two strategies of neutralization: an internal strategy (focusing on the consumers themselves) and an external strategy (focusing on the farmers in developing countries). A regression analysis proved that the internal neutralization strategy was an important predictor for fair trade buying behaviour, even when controlling for attitudes towards fair trade.     

Female consumers׳ intention to be involved in fair-trade product consumption in the U.S.: The role of previous experience,product features,and perceived benefits

Fair-trade practices include paying fair wages, supporting participatory workplaces and environmentally sustainable production, and developing long-term and supportive buyer-producer relationships (Kunz, G. I. and Garner, M. B. (2011), Going Global (2nd ed.), New York, NY: Fairchild Books). Fair-trade is both a political movement organized around the theme of trade justice, and the practice of particular types of trading and production relationships (Mare, A. L. (2008), The impact of fair-trade on social and economic development: a review of the literature, Geography Compass, 2, (6), 1922–1942). The aim of this study was to examine female consumers׳ previous experience, product features and perceived benefits of fair-trade product consumption. Specifically, the study examined how previous experience or lack of experience in fair-trade product consumption influences female consumers׳ purchase decisions by considering the impact of product features and perceived benefits. Results indicated that consumers who did not have fair-trade products experience made their purchase decision based on traditional product features (i.e., style and new trends). On the other hand, consumers who had experience with fair-trade products more consider ethical responsibility (i.e., perceived consumer effectiveness) in fair-trade shopping. Implications and limitations were discussed.     

Values,socially conscious behaviour and consumption emotions as predictors of Canadians’ intent to buy fair trade products

Over the last two decades, a growing concern about ethical behaviour has been observed among consumers. Ethically minded consumers are more inclined towards the consumption of ethical goods, such as green products and fair trade (hereafter, ‘FT’) products, organic products and local products. Establishing the motives that predict FT consumption behaviour provides ground for understanding how consumers make purchase decisions. This research postulates that the intention of buying FT products is influenced by socially conscious behaviour, consumers’ values and emotions. The study, conducted among 268 Canadian consumers, shows that the high intention of buying FT products is linked to high levels of pride, enthusiasm, satisfaction, happiness and joy related to FT product consumption. The FT consumption experience provides consumers with hedonic gratification. It shows that the higher the levels of self‐centred, equality and social justice values are, the higher the intention of buying FT products. An increase in socially conscious behaviour generates an increase in intention of purchasing FT products. The research contributes to a preliminary analysis of the role of emotions in this field and calls for the development of cognitive‐affective models of purchase and consumption behaviour. Understanding the dimensions of hedonic values and the significance of pleasure experience is essential to the development of the theory and practices of FT consumption.