IDEAS home Printed from https://ideas.repec.org/p/ags/gausfs/317123.html
   My bibliography  Save this paper

Information Source and Content – Drivers for Consumers’ Valuation of Fairly Traded Foods

Author

Listed:
  • von Grafenstein, Liza
  • Iweala, Sarah
  • Ruml, Anette

Abstract

To learn about the role of information content and source as catalysts to increase consumers’ valuation of fairly traded foods, we conducted an online survey with 2,500 consumers representative of the German population. Within the online survey, respondents were randomly assigned to one of five information treatments or the control group. We employ the contingent valuation approach to measure the willingness-to-pay (WTP) premium for chocolate with the Fairtrade label compared to similar conventional chocolate. To estimate WTP and the outcome which measures the participants’ purchasing intentions, we use ordinary least squares and interval regressions. We find that German consumers are willing to pay a high price premium for a Fairtrade label despite limited knowledge about the certification. This WTP is relatively robust to additional supportive information provision irrespective of the information source. However, the broader measure of behavior, the purchasing intention, can rise due to information provided by a retailer or the government. While a supportive statement by a university does not seem to incentivize the valuation of Fairtrade certified chocolate, we find that an unsupportive (zero effect) statement of the same source can discourage the purchasing intention. Our findings imply that policymakers and scientists need to mind the risk of generalized science communication and create information campaigns to increase purchasing frequency.

Suggested Citation

  • von Grafenstein, Liza & Iweala, Sarah & Ruml, Anette, 2021. "Information Source and Content – Drivers for Consumers’ Valuation of Fairly Traded Foods," Sustainable Food Systems Discussion Papers 317123, Georg-August-Universitaet Goettingen, Department of Agricultural Economics and Rural Development.
  • Handle: RePEc:ags:gausfs:317123
    DOI: 10.22004/ag.econ.317123
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/317123/files/SFS_DP_001.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.317123?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Disdier, Anne-Célia & Marette, Stéphan, 2012. "How do consumers in developed countries value the environment and workers’ social rights in developing countries?," Food Policy, Elsevier, vol. 37(1), pages 1-11.
    2. Vermeir, Iris & Verbeke, Wim, 2008. "Sustainable food consumption among young adults in Belgium: Theory of planned behaviour and the role of confidence and values," Ecological Economics, Elsevier, vol. 64(3), pages 542-553, January.
    3. Steffen Anderson & Glenn Harrison & Morten Lau & Rutstrom Elisabet, 2007. "Valuation using multiple price list formats," Applied Economics, Taylor & Francis Journals, vol. 39(6), pages 675-682.
    4. Panzone, Luca & Hilton, Denis & Sale, Laura & Cohen, Doron, 2016. "Socio-demographics, implicit attitudes, explicit attitudes, and sustainable consumption in supermarket shopping," Journal of Economic Psychology, Elsevier, vol. 55(C), pages 77-95.
    5. Chrysochou, Polymeros & Grunert, Klaus G., 2014. "Health-related ad information and health motivation effects on product evaluations," Journal of Business Research, Elsevier, vol. 67(6), pages 1209-1217.
    6. repec:hal:pseose:halshs-00754604 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robert Mai & Stefan Hoffmann & Ingo Balderjahn, 2021. "When drivers become inhibitors of organic consumption: the need for a multistage view," Journal of the Academy of Marketing Science, Springer, vol. 49(6), pages 1151-1174, November.
    2. Andreas Niedermeier & Agnes Emberger‐Klein & Klaus Menrad, 2021. "Which factors distinguish the different consumer segments of green fast‐moving consumer goods in Germany?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1823-1838, May.
    3. Giuseppina Migliore & Massimiliano Borrello & Alessia Lombardi & Giorgio Schifani, 2018. "Consumers’ willingness to pay for natural food: evidence from an artefactual field experiment," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 6(1), pages 1-10, December.
    4. Ondřej Rydval & Andreas Ortmann & Sasha Prokosheva & Ralph Hertwig, 2009. "How certain is the uncertainty effect?," Experimental Economics, Springer;Economic Science Association, vol. 12(4), pages 473-487, December.
    5. Guomin Li & Wei Li & Zihan Jin & Zhihao Wang, 2019. "Influence of Environmental Concern and Knowledge on Households’ Willingness to Purchase Energy-Efficient Appliances: A Case Study in Shanxi, China," Sustainability, MDPI, vol. 11(4), pages 1-18, February.
    6. Andreas Falke & Nadine Schröder & Claudia Hofmann, 2022. "The influence of values in sustainable consumption among millennials," Journal of Business Economics, Springer, vol. 92(6), pages 899-928, August.
    7. Kerri Brick & Martine Visser & Justine Burns, 2012. "Risk Aversion: Experimental Evidence from South African Fishing Communities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(1), pages 133-152.
    8. Empen, Lena & Schulze, Birgit, 2014. "Analyse Des Einstellungs-Verhaltens-Zusammenhangs Bei Fair Gehandelter Schokolade," 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 187323, German Association of Agricultural Economists (GEWISOLA).
    9. Carrington, Michal J. & Neville, Benjamin A. & Whitwell, Gregory J., 2014. "Lost in translation: Exploring the ethical consumer intention–behavior gap," Journal of Business Research, Elsevier, vol. 67(1), pages 2759-2767.
    10. Sartzetakis, Eftichios & Xepapadeas, Anastasios & Yannacopoulos, Athanasios N., 2023. "Environmental regulation with preferences for social status," Ecological Economics, Elsevier, vol. 209(C).
    11. Kautish, Pradeep & Paço, Arminda & Thaichon, Park, 2022. "Sustainable consumption and plastic packaging: Relationships among product involvement, perceived marketplace influence and choice behavior," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    12. Sarah Jacobson & Ragan Petrie, 2009. "Learning from mistakes: What do inconsistent choices over risk tell us?," Journal of Risk and Uncertainty, Springer, vol. 38(2), pages 143-158, April.
    13. Dubravka Užar & Jelena Filipović, 2023. "Determinants of Consumer Purchase Intention Towards Cheeses with Geographical Indication in a Developing Country: Extending the Theory of Planned Behavior," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 35(2), pages 183-204.
    14. Yawar Abbas Sandhu & Selvan a/l Perumal & Waida Irani Mohd Fauzi, 2019. "The Predictors and Consequences of Personal Norms in Context of Organic Food Among Pakistani Consumers," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(3), pages 314-336, May.
    15. Patrice Cassagnard & Tendai Espinosa, 2022. "From boycott to buycott: is activism from the North good for the South?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 158(4), pages 1107-1135, November.
    16. Jianhua Wang & Ziqiu Gao & Minmin Shen, 2018. "Recognition of Consumers’ Characteristics of Purchasing Farm Produce with Safety Certificates and Their Influencing Factors," IJERPH, MDPI, vol. 15(12), pages 1-16, December.
    17. repec:lic:licosd:36315 is not listed on IDEAS
    18. Jianwen Zhang & Jacob Cherian & Yawar Abbas Sandhu & Jawad Abbas & Laura Mariana Cismas & Constantin Viorel Negrut & Lucia Negrut, 2022. "Presumption of Green Electronic Appliances Purchase Intention: The Mediating Role of Personal Moral Norms," Sustainability, MDPI, vol. 14(8), pages 1-15, April.
    19. Roland Olbrich & Martin F. Quaas & Andreas Haensler & Stefan Baumgaertner, 2011. "Risk preferences under heterogeneous environmental risk," Working Paper Series in Economics 208, University of Lüneburg, Institute of Economics.
    20. Farida Saleem & Ahmad Adeel & Rizwan Ali & Shabir Hyder, 2018. "Intentions to adopt ecopreneurship: moderating role of collectivism and altruism," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(2), pages 517-537, December.
    21. Boban Melovic & Suncica Rogic & Julija Cerovic Smolovic & Branislav Dudic & Michal Gregus, 2019. "The Impact of Sport Sponsorship Perceptions and Attitudes on Purchasing Decision of Fans as Consumers—Relevance for Promotion of Corporate Social Responsibility and Sustainable Practices," Sustainability, MDPI, vol. 11(22), pages 1-16, November.

    More about this item

    Keywords

    Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; Institutional and Behavioral Economics; Labor and Human Capital;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:gausfs:317123. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iagoede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.