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Are Ethical Consumers Happy? Effects of Ethical Consumers' Motivations Based on Empathy Versus Self-orientation on Their Happiness
Studies on fair-trade consumption have concentrated on economic, demographic, and ethical issues, and research on consumers' moral emotions and self-orientation is limited. Although consumers' satisfaction with their consumption has been emphasized in consumer studies and marketing, little substantive empirical research has addressed ethical consumers' emotional satisfaction and the link between their motivations and happiness. This study focused on ethical consumers who regularly purchase fair-trade coffee to understand their moral emotions and self-orientation as motivations for fair-trade consumption and determine whether empathy and self-oriented motivations led to their happiness. A survey was conducted on 471 regular purchasers of at least one cup of fair-trade coffee weekly or a pack of fair-trade coffee beans monthly. The survey data were analyzed using partial least squares. The results showed that guilt was positively associated with empathy, which positively influenced self-actualization. Contrary to the proposed hypothesis, empathy did not elicit consumers' happiness. As expected, narcissism affected self-actualization, which in turn elicited happiness. Happiness was positively associated with customers' repurchase intentions for fair-trade coffee. The results of this study demonstrate the strong associations of the paths from narcissism to self-actualization, self-actualization to happiness, and self-actualization to repurchase intentions compared to the paths from guilt to empathy, empathy to happiness, and empathy to repurchase intentions. Contrary to common expectations, the results indicate that self-oriented motivations focused on self-actualization rather than moral emotions (guilt and empathy) play key roles in ethical consumers' happiness with fair-trade consumption.
Journal Article
Everyday sustainability : gender justice and fair trade tea in Darjeeling
\"Everyday Sustainability takes readers to ground zero of market-based sustainability initiatives--Darjeeling, India--where Fair Trade ostensibly promises gender justice to minority Nepali women engaged in organic tea production. These women tea farmers and plantation workers have distinct entrepreneurial strategies and everyday practices of social justice that at times dovetail with and at other times rub against the tenets of the emerging global morality market. The author questions why women beneficiaries of transnational justice-making projects remain skeptical about the potential for economic and social empowerment through Fair Trade while simultaneously seeking to use the movement to give voice to their situated demands for mobility, economic advancement, and community level social justice.\"--Page 4 of cover.
Book
Increasing Consumers’ Purchase Intentions Toward Fair-Trade Products Through Partitioned Pricing
Selling fair-trade products can be problematic because of their higher price when compared with conventional alternatives. We propose that one way to solve this problem is to make consumers aware of the benefits of fair-trade. To this end, we perform three experimental studies to show that partitioned pricing (PP), which explicitly displays fair-trade as a separate price component, increases consumers’ purchase intention toward the fair-trade product. This effect can be explained by increased perceptions of price fairness, which itself is mediated through transparency (but only if an additional verbal justification of the fair-trade price component is present). In the absence of such a verbal justification, recalled prices instead of transparency explain the positive effect of PP on consumers’ purchase intentions. Interestingly, boundary conditions of this effect barely exist. Our incentive-aligned study illustrates that PP is associated with a 20% increase in purchases of fair-trade products. The results demonstrate an opportunity to increase the market share of fair-trade products, which increases social welfare and sustainability.
Journal Article
POST-PANDEMIC TRADE FAIR DYNAMICS: A LONGITUDINAL STUDY OF EXHIBITORS' VIEWS ON DIGITAL AND HYBRID TRADE FAIRS
This study investigates evolving perceptions and preferences among exhibitors regarding trade fair formats, focusing on virtual, hybrid, and physical events. The aim is to understand how attitudes have shifted post-pandemic and the implications for future trade fair strategies. A longitudinal comparative analysis was conducted using survey data collected from exhibitors over two years. The analysis focused on evaluating perceptions of virtual, hybrid, and physical trade fairs, examining factors such as cost savings, technological barriers, health safety advantages, and interpersonal interactions. Findings indicate increasing recognition of cost and time-saving benefits in virtual formats. Despite technological improvements, challenges in interpersonal interactions persist. Interest in hybrid events is rising, but concerns exist about effectively combining physical and virtual advantages. Confidence in physical trade fairs is rebounding, especially among less COVID-affected exhibitors, suggesting a coexistence with virtual events rather than a complete replacement. Strategic flexibility is crucial to optimizing engagement across diverse preferences and capitalizing on emerging opportunities. The findings underscore the need for trade fair organizers to adapt their strategies to accommodate hybrid models effectively. Future research should delve deeper into specific factors influencing exhibitor satisfaction and engagement in hybrid environments, informing ongoing adaptations to the evolving trade fair landscape.
Journal Article
Supplier selection at the base of the chain: navigating competing institutional logics for shared mutual value
PurposeTraditional purchasing best practices primarily follow a commercial logic and may not necessarily be applicable for social enterprises (SEs) supplier selection. This study examines how SEs focused on poverty alleviation select suppliers amidst competing institutional logics to achieve both social impact and economic performance.Design/methodology/approachA grounded theory methodology is applied to guide semi-structured interviews with 18 fair trade verified SEs. Constant comparison methods aided in determining the point of data saturation was reached.FindingsThe results of this study indicate that SEs select marginalized suppliers based on implicit criteria that is initially based on social-welfare logic and then through a blend of commercial and social-welfare logic based on company structure.Originality/valueThis study is the first to reveal that SEs addressing social issues do not follow the traditional criteria for supplier selection but have their own unique selection criteria when selecting suppliers.
Journal Article
Do Sustainability Standards Benefit Smallholder Farmers Also When Accounting For Cooperative Effects? Evidence from Côte d’Ivoire
Although many studies analyzed effects of sustainability standards—such as Fairtrade or Rainforest Alliance—on smallholder farmers in developing countries, most did not sufficiently account for systematic differences between certified and noncertified farmers. Certified farmers are typically organized in cooperatives. When sampling only from a small number of cooperatives, as previous studies did, it is not easy to disentangle certification effects from possible cooperative effects. Here, we address this shortcoming by randomly sampling from a large number of cooperatives, thus better capturing existing institutional heterogeneity. In particular, we collect and use data from cocoa farmers in Côte d’Ivoire who are organized in Fairtrade-certified and noncertified cooperatives. Regression models with instrumental variables show that Fairtrade has positive and significant effects on cocoa yields, prices, and living standards. These effects remain significant also after controlling for cooperative characteristics, but the magnitude of the estimates changes. We draw two conclusions. First, in Côte d’Ivoire, Fairtrade certification benefits farmers economically. Second, and more generally, cooperative characteristics are jointly correlated with certification and relevant outcomes, which needs to be accounted for to avoid bias when evaluating the benefits of sustainability standards in the small farm sector.
Journal Article
Research on Fair Trade Consumption—A Review
An overview and assessment of the current state of research on individual consumption of Fair Trade (FT) products is given on the basis of 51 journal Publications. Arranging this field of ethical consumption research according to key research objectives, theoretical approaches, methods, and study population, the review suggests that most studies apply social psychological approaches focusing mainly on consumer attitudes. Fewer studies draw on economic approaches focusing on consumers' willingness to pay ethical premia for FT products or sociological approaches relying on the concept of consumer identity. Experimental, qualitative and conventional survey methods are used approximately equally often. Almost all studies draw on convenience or purposive samples and most studies are conducted in the USA or the United Kingdom. Several problems in current research are identified: amongst others, studies' rather narrow theoretical focus, potential hypothetical and social desirability bias of conventional survey data, and a lack of generalizability of empirical findings. In turn, we suggest that research would benefit from both a multiple-motives and a multiple-methods perspective.搎Considering competing theories can help to single out key behavioral determinants of individual FT consumption. The combination of different methods such as conventional surveys and field experiments contributes to uncovering respondents' truthful answers and improves generalizability of results. Scholars in the field of ethical consumption research should use experiments to detect causal relations proposed by theories and conduct cross-country surveys to gather insights as to how differences in market structures, cultural traits, and other path dependencies affect patterns of individual FT consumption.
Journal Article
Fairtrade Towns as Unconventional Networks of Ethical Activism
The growing availability and consumption of Fairtrade products is recognised as one of the most widespread ethically inspired market developments, and as an example of activist-driven change within the wider marketing system. The Fairtrade Towns movement, now operating in over 1700 towns and cities globally, represents a comparatively recent extension of Fairtrade marketing driven by local activists seeking to promote positive change in production and consumption systems. This paper briefly explores the conventional framing of the role that ethically related activism plays in the operation of markets and in influencing market participants. It then presents key insights gathered from a grounded theory exploration of Fairtrade Towns as activist-driven marketing systems, revealing the atypical nature of the activism involved. The findings demonstrate how local activists leverage their social networks to exert pressure and generate support to promote ethical consumption. The study suggests that Fairtrade Towns offer a new role for activists as Fairtrade itself becomes more mainstream, and considers the role they are fulfilling as 'informal' local marketers. The marketing dynamics revealed represent a complex and distinctive form of relational activism that seeks to build Fairtrade markets and highlight their positive benefits, with potential lessons for other local ethical market-building efforts in future.
Journal Article