To Buy or Not to Buy: The Fair-Trade Buying Decision A study analyzing fair-trade buying motivations and the willingness to pay of Dutch customers. Author:
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2021-08-12
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en
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This study examines the willingness to pay for fair-trade products by Dutch customers and the influential factors on the willingness to pay. The aim of this study is to add to the existing academic knowledge and insights into general customer attitudes and behavior with respect to fair-trade products. In order to find an answer a survey is designed based on existing literature and (empirical) studies. The survey resulted in data from 320 respondents. The average willingness to pay extra for fair-trade coffee, curry, chocolate sprinkles and coconut milk compared to a non-fair-trade A-branded alternative is estimated at 12,6%, 12,9%, 12,4%, and 12,3%, respectively. The influential factors on the willingness to pay were tested by means of an Ordinal Logistic Regression Analysis. The results of this analysis indicate that demographic characteristics have no significant predatory power on the willingness to pay, except the education attainment level. Furthermore, observability of the product being fair-trade and the knowledge of the concept of fair-trade are positively related with the willingness to pay. Perceived customer effectiveness and ethical identity are partly significant predictors for the dependent variable depending on the food-category.
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Faculteit der Managementwetenschappen