Since their introduction several years ago Fairtrade products have remained subject to low sales and failed to win satisfactory market shares. Investigating into the reasons for the observed underperformance the study will begin by analysing customers’ motivations to buy Fairtrade products and their reasons to refrain from Fairtrade purchases.
After the analysis of the various important influences on customers’ Fairtrade buying behaviour, it will examine some of the implications this may have for marketing professionals. The study will conclude that some of the main factors affecting Fairtrade purchases are of demographical nature, while others stem from customer equity dimensions, before it will propose a number of possible actions to increase the success of the Fairtrade initiative.
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Table of Contents
1. Introduction
2. Analysis
3. Implications
4. Conclusion
Research Objectives and Themes
The primary research objective of this study is to investigate the reasons for the observed underperformance of Fairtrade products in terms of market share by analyzing consumer motivations for both purchasing and refraining from these products, and subsequently proposing actionable strategies for marketing professionals.
- Analysis of demographic factors influencing purchase behavior
- Examination of personal norms, ethical motives, and individual interest
- Evaluation of the impact of product quality and price sensitivity
- Assessment of information availability and brand familiarity barriers
- Strategic recommendations for increasing Fairtrade market penetration
Excerpt from the Book
Analysis
To begin with, there are three important demographical factors that can have an influence on Fairtrade buying behaviour. These are the customers’ age, their level of education, and the income of the household they live in.
First of all, older customers tend to be more inclined to purchase Fairtrade products than younger customers. As de Pelsmacker et al. (2005) suggest, people between 31 and 44 years of age belong to the group which on average buy the most Fairtrade products followed by the over 45 year olds. Secondly, in the same study the authors also found that people with higher education (more than twelve years of education) tend to purchase more Fairtrade products than the less educated. Finally, the market research company TNS Emnid (cited in Witkowski, 2005) conducted a study among German consumers which suggested that the amount of Fairtrade purchases be positively correlated to the level of household incomes – the more people earn, the more Fairtrade product they buy.
A limitation to the studies of de Pelsmacker et al. (2005) as well as Witkowski (2005) has to be seen, however, in the fact that both have been conducted with customers of one nationality only – Belgium and German respectively – under the presumption that these form a fair representation of the average European customer. Questioning the validity of these studies, other researchers have come to the conclusion that neither age nor education have significant impact on socially responsible buying behaviour (Dickson, 2001). Thus, despite certain indications of customers’ decisions on Fairtrade purchases being influenced by the aforementioned demographical factors their actual impact remains ambiguous.
Summary of Chapters
1. Introduction: This chapter introduces the Fairtrade initiative, its mission to support developing world producers, and highlights the paradox between positive consumer attitudes and low actual market shares.
2. Analysis: This section evaluates key drivers and barriers of purchase behavior, including demographic influences, personal ethical norms, product quality, price perceptions, and brand familiarity.
3. Implications: This chapter translates the research findings into actionable marketing strategies, such as improving information transparency, fostering supermarket alliances, and reconsidering branding or pricing approaches.
4. Conclusion: This final section synthesizes the identified motives under the customer equity theory framework and reiterates the necessity for strategic marketing interventions to overcome consumer skepticism and accessibility issues.
Keywords
Fairtrade, consumer behavior, market share, ethical consumption, customer equity, demographic factors, price premium, brand familiarity, product quality, marketing strategies, retail availability, consumer motivation, social responsibility, sustainability, ethical label.
Frequently Asked Questions
What is the core focus of this study?
The study examines why Fairtrade products consistently face low market shares despite positive consumer attitudes, focusing on the underlying motivations that drive or hinder purchase decisions.
What are the primary themes discussed in the paper?
Central themes include demographic influences, the role of personal ethics and social norms, the impact of price premiums, the necessity of product quality, and the strategic importance of brand familiarity and retail availability.
What is the main goal of the research?
The goal is to provide a comprehensive analysis of consumer behavior regarding Fairtrade to suggest effective strategies for marketing professionals to boost sales and market penetration.
Which scientific method is utilized?
The author uses an analytical approach based on existing literature, market studies, and consumer behavior theories, specifically applying the customer equity framework to interpret findings.
What topics are covered in the main body?
The body analyzes the demographic profile of Fairtrade buyers, the influence of hedonistic vs. altruistic motives, barriers like price and lack of information, and potential marketing remedies like supermarket alliances.
Which keywords best describe the paper?
Key terms include Fairtrade, consumer behavior, ethical consumption, customer equity, and marketing strategies.
Why do many consumers find the price premium of Fairtrade products unjustified?
Many consumers lack sufficient information regarding the benefits of the Fairtrade initiative, making them hesitant to pay higher prices for products that may seem indistinguishable from conventional alternatives.
How could cooperating with major supermarkets impact the Fairtrade initiative?
Partnering with supermarkets could increase product availability and shelf visibility, which would directly improve the "convenience" factor—a major hurdle for current non-buyers.
What risk is associated with closer cooperation with multinational supermarket chains?
The primary risk is that the brand's image could be perceived as "selling out" or sacrificing the core norms and ethical values that currently form its identity.
- Citation du texte
- Jens Hillebrand (Auteur), 2007, Fairtrade: Motivations of customers to engage in Fairtrade purchases and the implications for marketing professionals, Munich, GRIN Verlag, https://www.grin.com/document/118320
