The article reports the findings of an empirical study among consumers, regarding the impact of physical, social, and psychological proximity on their engagement to the fair trade idea and purchasing behavior. Based on a random sample of 211 British and 112 Indian consumers and using structural equation modeling, it was found that high levels of physical, social, and psychological proximity leads to high consumer fair trade engagement. Moreover, consumer fair trade engagement was confirmed to have a positive impact on fair (...) trade purchasing behavior. Furthermore, consumer empathic concern was found to positively moderate the association between proximity and consumer fair trade engagement, while the opposite was true with regard to consumer hypocrisy. Finally, consumer nationality was found to have a control effect on physical, social, and psychological proximity, with the latter felt stronger among Indian, as opposed to British consumers. (shrink)

This research investigates the potential for a “fair” co-branding operation. A major corporate brand is fictitiously allied with a Fair Trade labelling organization brand. The sample for the study is composed of 540 respondents, representative of the French population. By considering commercial brands and Fair Trade labels as dissimilar in terms of customers’ perceived Fair Trade orientations, this article studies how this lack of similarity impacts perceived congruence between both entities and how prior brand attitudes and congruence influence customers’ evaluation (...) of the co-branded product. The results of this research demonstrate that: Consumer prior brand attitudes toward the partner brands influence very little customers’ evaluation. Perceived similarity of the partner brands has a strong influence toward congruence of the co-branding operation. Results also indicate that congruence has a strong influence upon customers’ evaluation. An inverted U-shaped relationship exists between perceived similarity and relevancy of the alliance, and between expectancy and customers’ evaluation. The results obtained through the test of a partial least square model, and inverted U-shaped hypothesis, represent a new insight into co-branding theory. The high discursive power of fair co-branding is a key issue: the corporate brand provides the alliance with its leading position, while the Fair Trade brand provides the ethical attribute. (shrink)

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. (shrink)

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 play key roles in ethical consumers’ happiness with fair-trade consumption. (shrink)

Although fair trade has grown exponentially in the U.S. in recent years, we do not have a clear understanding of why small U.S. firms choose to participate in it. To answer this question, we use a qualitative case study approach and grounded theory analysis to explore the motivations of 35 small fair trade businesses. We find that shared values and the desire to help others, often triggered by a critical incident, lead social entrepreneurs to found and sustain fair trade businesses. (...) The relationship between shared values and engagement in fair trade and the relationship between altruism and engagement in fair trade are strengthened by four motivating factors: direct relationships with producers, support for social causes, the desire for the preservation of craftsmanship, and the desire to share aesthetic products. These links are strengthened by four facilitating factors : the acquisition of business knowledge, family member involvement in the firm, assistance from faith communities, and assistance from the fair trade community. Additional analysis reveals three types of fair trade social entrepreneurs: “ethics first” entrepreneurs, primarily motivated by human rights and social justice concerns; “faith first” fair traders, motivated primarily by their religious faith; and “business first” businesspeople, motivated by what they perceive to be an opportunity to build a successful business while simultaneously doing “good” and helping others. (shrink)