The aim of the present thesis is to analyze consumers’ willingness to pay for Fair Trade products. Specifically, the thesis asks whether (a) people are willing to pay a premium for Fair Trade products, (b) how much extra they are willing to pay, and (c) which factors influence the consumers’ willingness to pay. To answer these questions, findings of the most recent quantitative research on Fair Trade are studied. A total of 24 separate empirical papers on Fair Trade and willingness to pay are identified and reviewed. The main results are: (1) about 85% participants are willing to pay a price-premium for Fair Trade products; (2) the price-premium people are willing to pay range from 3% to 80%, with the median of 17%; (3) these values are somewhat lower in studies with more controlled research (i.e., experiments) - the prevalence is 70% and the price-premium 10%; (4) the higher price of Fair Trade products has an inconsistent impact on consumers’ willingness to pay - for some it remains a significant barrier to the purchase, for others a sign of product credibility; (5) the level of income is insignificant for FT consumption; (6) demographic variables are rather useless for predicting Fair Trade consumption; (7) ethical and environmental values matter; and (8) positive attitudes toward Fair Trade increase consumers’ buying behavior. Based on these results, implications for marketing are drawn.
Inhaltsverzeichnis (Table of Contents)
- INTRODUCTION
- FAIR TRADE AND ETHICAL CONSUMPTION
- Fair Trade criteria
- The development of Fair Trade
- Fair Trade in Germany
- WILLINGNESS TO PAY FOR FAIR TRADE PRODUCTS
- Economic approach
- Social psychological approach
- Summary of the research questions
- METHOD
- Article search
- Methods in the research on WTP for FT products
- Sample types
- Country of origin
- Fair Trade products
- RESULTS
- Willingness to pay the FT price-premium
- The level of the FT price-premium
- Moderators of the willingness to pay for FT products
- DISCUSSION
- REFERENCES
- APPENDIX
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This thesis investigates consumer willingness to pay for Fair Trade products. It examines whether consumers are willing to pay a premium for these products, the amount of that premium, and the factors influencing their willingness to pay. The study analyzes recent quantitative research on Fair Trade, drawing conclusions about its implications for marketing.
- The prevalence of willingness to pay a premium for Fair Trade products
- The magnitude of the price premium consumers are willing to pay for Fair Trade products
- Factors influencing consumer willingness to pay for Fair Trade products, including demographic variables, ethical and environmental values, and attitudes toward Fair Trade
- The impact of the higher price of Fair Trade products on consumer purchase decisions
- Marketing implications based on the findings of the research
Zusammenfassung der Kapitel (Chapter Summaries)
- INTRODUCTION: This chapter introduces the topic of Fair Trade, highlighting its growing popularity and the associated price premium for Fair Trade products. It also outlines the thesis's objective, which is to analyze consumer willingness to pay for Fair Trade products by reviewing existing research.
- FAIR TRADE AND ETHICAL CONSUMPTION: This chapter explores the concept of Fair Trade, including its criteria, development, and presence in Germany. It discusses how Fair Trade aims to improve trading conditions for producers in developing countries by paying them a "fair price" for their products.
- WILLINGNESS TO PAY FOR FAIR TRADE PRODUCTS: This chapter examines the economic and social psychological approaches to understanding consumer willingness to pay. It summarizes the research questions addressed in the thesis, focusing on the prevalence, level, and factors influencing consumer willingness to pay for Fair Trade products.
- METHOD: This chapter describes the methodology employed for the thesis, including the article search process, methods used in research on willingness to pay for Fair Trade products, sample types, countries of origin, and Fair Trade products analyzed.
- RESULTS: This chapter presents the findings of the research, focusing on consumer willingness to pay a price premium for Fair Trade products, the level of that premium, and the factors influencing consumer willingness to pay.
Schlüsselwörter (Keywords)
The thesis focuses on the core concepts of Fair Trade, ethical consumption, consumer willingness to pay, price premium, demographic factors, ethical and environmental values, and attitudes toward Fair Trade. It explores the relationship between these concepts and the implications of the findings for marketing strategies.
- Quote paper
- Michaela Gröpel (Author), 2012, Willingness to pay for Fair Trade products: Analysis and implications, Munich, GRIN Verlag, https://www.grin.com/document/209559
