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Who Buys Fair Trade and Why (or Why Not)? A Random Survey of Households

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  • JASON E. TAYLOR
  • VIGDIS BOASSON

Abstract

type="main" xml:id="joca12025-abs-0001"> We conduct a random survey of Michigan (United States) households to gauge consumer behavior toward, and awareness of, fair trade. Around 58% of respondents have heard of fair trade and just over a quarter have knowingly purchased a fair-trade product. Of the 38% of respondents who indicated a willingness to pay a premium for a fair trade product, the median premium they were willing to pay was around 20%. We find that those who are politically liberal, female, younger, and have attained higher levels of education are willing to pay higher premiums for fair trade, other factors held constant. Respondents who are unwilling to pay a fair trade premium are divided between not doing so because of a belief that all voluntary trade is already fair and a fear of potential unintended negative consequences on workers.

Suggested Citation

  • Jason E. Taylor & Vigdis Boasson, 2014. "Who Buys Fair Trade and Why (or Why Not)? A Random Survey of Households," Journal of Consumer Affairs, Wiley Blackwell, vol. 48(2), pages 418-430, June.
    • Handle: RePEc:bla:jconsa:v:48:y:2014:i:2:p:418-430
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    File URL: http://hdl.handle.net/10.1111/joca.12025
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    References listed on IDEAS

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    2. Alvina Gillani & Smirti Kutaula & Leonidas C. Leonidou & Paul Christodoulides, 2021. "The Impact of Proximity on Consumer Fair Trade Engagement and Purchasing Behavior: The Moderating Role of Empathic Concern and Hypocrisy," Journal of Business Ethics, Springer, vol. 169(3), pages 557-577, March.
    3. Kumju Hwang & Hyewon Kim, 2018. "Are Ethical Consumers Happy? Effects of Ethical Consumers' Motivations Based on Empathy Versus Self-orientation on Their Happiness," Journal of Business Ethics, Springer, vol. 151(2), pages 579-598, August.
    4. María D. Bovea & Valeria Ibáñez-Forés & Victoria Pérez-Belis & Pablo Juan & Marta Braulio-Gonzalo & Carlos Díaz-Ávalos, 2018. "Incorporation of Circular Aspects into Product Design and Labelling: Consumer Preferences," Sustainability, MDPI, vol. 10(7), pages 1-17, July.
    5. Meng, Jie & Layton, Roger & Huang, Yimin, 2016. "Why do some consumers shop in this pharmacy? A cross-check of vulnerable characteristics and store types," Journal of Retailing and Consumer Services, Elsevier, vol. 30(C), pages 116-130.
    6. Sama, Celia & Crespo-Cebada, Eva & Díaz-Caro, Carlos & Escribano, Miguel & Mesías, Francisco J., 2018. "Consumer Preferences for Foodstuffs Produced in a Socio-environmentally Responsible Manner: A Threat to Fair Trade Producers?," Ecological Economics, Elsevier, vol. 150(C), pages 290-296.

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