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Are consumers willing to go the extra mile for fair trade products made in a developing country? A comparison with made in USA products at different prices

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  • Rashid, Md Sanuwar
  • Byun, Sang-Eun

Abstract

We investigated whether fair trade messages (fair labor/environment-friendly production) can counterbalance the negative country of origin effect on brand evaluations and increase willingness to pay premium prices. Our findings suggest that fair trade messages led consumers to evaluate a product made in a developing country as favorably as a product made in the U.S. While brand attitude and brand trust were higher for a fair trade product made in a developing country, consumers hesitated to buy a product with a fair trade message when the premium price was 15% higher than the base price product with no fair trade message. We discussed implications of these findings.

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  • Rashid, Md Sanuwar & Byun, Sang-Eun, 2018. "Are consumers willing to go the extra mile for fair trade products made in a developing country? A comparison with made in USA products at different prices," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 201-210.
    • Handle: RePEc:eee:joreco:v:41:y:2018:i:c:p:201-210
    DOI: 10.1016/j.jretconser.2017.12.011
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    3. David Bürgin & Robert Wilken, 2022. "Increasing Consumers’ Purchase Intentions Toward Fair-Trade Products Through Partitioned Pricing," Journal of Business Ethics, Springer, vol. 181(4), pages 1015-1040, December.
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    5. Carlos Guerrero Medina & Myriam Martínez‐Fiestas & Maria I. Viedma‐del‐Jesus & Jessica Alzamora Ruiz, 2020. "Living wage in the framework of corporate social responsibility: Analyzing its impact on consumer response," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(5), pages 2060-2070, September.
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    9. Daniel Belanche & Luis V. Casaló & Carlos Flavián & Alfredo Pérez-Rueda, 2021. "The role of customers in the gig economy: how perceptions of working conditions and service quality influence the use and recommendation of food delivery services," Service Business, Springer;Pan-Pacific Business Association, vol. 15(1), pages 45-75, March.
    10. Swetarupa Chatterjee & Naman Sreen & Jyoti Rana & Amandeep Dhir & Pradip H. Sadarangani, 2022. "Impact of ethical certifications and product involvement on consumers decision to purchase ethical products at price premiums in an emerging market context," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 19(4), pages 737-762, December.
    11. The Anh Phan & Pham Ngoc Quyen Nguyen & Ngoc Anh Pham & Nhan Phan, 2023. "A Cross-Cultural Study on the Role of Message Framing in the Promotion of Fair-Trade Buying Behavior," SAGE Open, , vol. 13(4), pages 21582440231, December.
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