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Social and self-Image concerns in fair-trade consumption: Evidence from experimental auctions for chocolate

Author

Listed:
  • Sabrina Teyssier

    (ALISS - Alimentation et sciences sociales - INRA - Institut National de la Recherche Agronomique)

  • Fabrice Etilé

    (ALISS - Alimentation et sciences sociales - INRA - Institut National de la Recherche Agronomique)

  • Pierre P. Combris

    (ALISS - Alimentation et sciences sociales - INRA - Institut National de la Recherche Agronomique)

Abstract

Can social interactions be used to favor the consumption of fair-trade products? Social interactions can alter purchase behaviors by triggering either self-image concerns (when one observes others' decisions without being observed) or social-image concerns (when everybody observes everyone). A laboratory experiment is designed to identify separately the role of these motivators, using real auctions for a standard and a fair-trade chocolate, and controlling carefully for taste and package differences. The willingness-to-pay (WTP) for the chocolates and the premium that the subjects grant to the fair-trade variety are analyzed. The results reveal that both social and self-image matter: the subjects give a higher premium to the fairtrade chocolate when their decisions are made public; the premium is adjusted according to the information that is received about the premium granted by other subjects, even when decisions remain private. However, the higher premium in public auctions is obtained through a decrease in the WTP for the standard chocolate, rather than an increase in the WTP for the fair-trade chocolate. In addition, the subjects are much more sensitive to information about others' choices that relax the moral or social norm constraining their own choices. We thus conclude that social interactions cannot be used to nudge consumers into fair-trade consumption, at least for ordinary products such as chocolate.

Suggested Citation

  • Sabrina Teyssier & Fabrice Etilé & Pierre P. Combris, 2014. "Social and self-Image concerns in fair-trade consumption: Evidence from experimental auctions for chocolate," Working Papers hal-02800408, HAL.
    • Handle: RePEc:hal:wpaper:hal-02800408
    DOI: 10.1093/erae/jbu036
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-02800408
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    Cited by:

    1. Goytom Abraha Kahsay & Laura Mørch Andersen & Lars Gårn Hansen, 2014. "Price reactions when consumers are concerned about pro-social reputation," IFRO Working Paper 2014/09, University of Copenhagen, Department of Food and Resource Economics.
    2. Florence TOUYA, 2019. "Relevance of Potential Supply Structures in Frameworks involving Consumer's private Information: the Case of Fair Trade," Working Papers 2018-2019_12, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Aug 2019.
    3. Friedrichsen, Jana & Engelmann, Dirk, 2013. "Who cares for social image? Interactions between intrinsic motivation and social image concerns," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79746, Verein für Socialpolitik / German Economic Association.
    4. Florence TOUYA, 2019. "Relationships and Nature of Contracts in the Distribution Structure for Responsible Trade," Working Papers 2018-2019_10, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Oct 2019.
    5. Florence Lachet-Touya, 2019. "Relevance of potential supply structures in frameworks involving consumer's private information: the case of fair trade," Working Papers hal-02937902, HAL.
    6. Florence Lachet-Touya, 2019. "Relationships and nature of contracts in the distribution structure for responsible trade," Working Papers hal-02937865, HAL.

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    Keywords

    fair-trade; image motivation; willingness-to-pay; experiment; chocolate;
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