This essay tries to identify (using a marketing mix approach of Fair Trade products) the main determinants driving customers to choose fair trade products rather than their free trade equivalents. It also highlights the major difficulties encountered by companies active in the fair trade market while trying to inform consumers and to influence their buying behaviour. On that basis, this paper proposes several solutions in order to ameliorate the Fair Trade marketing offer. Arguments and critics included in this essay are supported by recent scientific researches in the Fair Trade marketing area.
Table of Contents
1. Introduction
2. Problem formulation & Methodology
3. Marketing Mix of fair Trade: What does matter?
3.1 Place
3.2 Product
3.3 Price
3.4 Promotion
3.5 Process
3.6 People
3.7 Physical Evidence
4. Conclusion
Objectives & Research Themes
This essay aims to analyze the determinants of consumer behavior regarding Fair Trade products in Belgium using a marketing-mix approach. The research seeks to identify why consumers choose fair-trade over free-trade alternatives, explores the challenges companies face in influencing purchasing habits, and proposes strategies to improve the Fair Trade marketing offer.
- Application of the 7Ps marketing mix framework to Fair Trade products.
- Analysis of consumer motivations and the attitude-behavior gap.
- Challenges in supply chain transparency and communication.
- The impact of price premiums and quality perceptions on purchase decisions.
- Comparison between specialized store and supermarket retail strategies.
Excerpt from the book
Product
Product appears to be the second element of the marketing-mix that fair trade companies have been focusing on. Indeed, while raising issue awareness and trust appear to be very efficient strategies to reach “strongly ethical” consumers, it was not sufficient to maintain growth beyond this natural target segment. The shift to fair trade product has allowed further market expansion by attracting a new segment of what Cowe and Williams (2000) called “self-actualisers” who “are demanding quality more than anything”. Consequently, fair trade marketers’ strategy has moved from an informational appeal to a “lifestyle” appeal with regards to the immediate consumer experience. Although the switch to a focus on Product can be considered as a real commercial success, it has received some severe criticism from alternative trading organizations (Alexander & Nicholls, 2006).
As Thierry Noesen (director of the fair-trade – and bio – Belgian chocolate brand Delvas) noted:
Current consumers of fair-trade products have very specific requests. They are usually looking for what we called “some authenticity”. Buyers of fair-trade chocolate, for example, are more willing to have a pure, dark – even bitter – chocolate than a sweet piece of it stuffed with an original flavour.
Summary of Chapters
Introduction: Provides a historical overview of the Fair Trade movement and introduces the current challenges of ethical consumption in the marketplace.
Problem formulation & Methodology: Outlines the core research question and the application of the 7Ps marketing mix to analyze Fair Trade consumer behavior.
Marketing Mix of fair Trade: What does matter?: Examines the seven components of the marketing mix—Place, Product, Price, Promotion, Process, People, and Physical Evidence—to evaluate their impact on Fair Trade sales.
Conclusion: Synthesizes the findings, suggesting that better management of marketing mix elements and improved consumer information are crucial for the future of the movement.
Keywords
Fair Trade, Marketing Mix, Consumer Behavior, Ethical Consumption, Belgian Market, Product Authenticity, Price Premium, Marketing Strategy, Distribution Channels, Information Asymmetry, Sustainability, Brand Loyalty, Fair Trade Labeling, Purchasing Motives, Retail Management.
Frequently Asked Questions
What is the core focus of this research?
The essay explores the determinants driving Belgian consumers to choose Fair Trade products, analyzing why some consumers support these products while others do not.
What are the primary themes discussed?
Key themes include the influence of marketing mix elements on ethical consumption, consumer motivations, the role of brand and labeling, and the challenges of retail distribution.
What is the primary research objective?
The paper aims to deliver a marketing-based answer to the question of why consumers buy Fair Trade products and how companies can improve their marketing offers to bridge the attitude-behavior gap.
Which scientific method is employed?
The research is exploratory, utilizing literature analysis from marketing and social sciences, combined with a semi-structured interview with a CEO in the Belgian Fair Trade chocolate industry.
What topics are covered in the main section?
The main section dissects the 7Ps (Product, Place, Promotion, Price, Process, People, and Physical Evidence) to see how each tool affects consumer purchase decisions.
What keywords characterize the study?
The study is defined by terms such as Fair Trade, marketing mix, consumer behavior, ethical consumption, and brand authenticity.
Why is the "Product" element considered critical?
It represents the shift from informational appeals to lifestyle appeals, highlighting the consumer demand for authenticity, especially in the premium food sector.
How does the author view the role of retail environments?
The author notes that while specialized shops cater to activists, the move into mass-market supermarkets is essential for reaching a broader audience, provided that quality and credibility are maintained.
- Quote paper
- Maxime Dessy (Author), 2008, Why do Belgian consumers buy fair trade products... and why not?, Munich, GRIN Verlag, https://www.grin.com/document/145295
