The aim of the present thesis is to analyze consumers’ willingness to pay for Fair Trade products. Specifically, the thesis asks whether (a) people are willing to pay a premium for Fair Trade products, (b) how much extra they are willing to pay, and (c) which factors influence the consumers’ willingness to pay. To answer these questions, findings of the most recent quantitative research on Fair Trade are studied. A total of 24 separate empirical papers on Fair Trade and willingness to pay are identified and reviewed. The main results are: (1) about 85% participants are willing to pay a price-premium for Fair Trade products; (2) the price-premium people are willing to pay range from 3% to 80%, with the median of 17%; (3) these values are somewhat lower in studies with more controlled research (i.e., experiments) - the prevalence is 70% and the price-premium 10%; (4) the higher price of Fair Trade products has an inconsistent impact on consumers’ willingness to pay - for some it remains a significant barrier to the purchase, for others a sign of product credibility; (5) the level of income is insignificant for FT consumption; (6) demographic variables are rather useless for predicting Fair Trade consumption; (7) ethical and environmental values matter; and (8) positive attitudes toward Fair Trade increase consumers’ buying behavior. Based on these results, implications for marketing are drawn.
CONTENTS
1. INTRODUCTION
2. FAIR TRADE AND ETHICAL CONSUMPTION
2.1 Fair Trade criteria
2.2 The development of Fair Trade
2.3 Fair Trade in Germany
3. WILLINGNESS TO PAY FOR FAIR TRADE PRODUCTS
3.1 Economic approach
3.2 Social psychological approach
3.3 Summary of the research questions
4. METHOD
4.1 Article search
4.2 Methods in the research on WTP for FT products
4.3 Sample types
4.4 Country of origin
4.5 Fair Trade products
5. RESULTS
5.1 Willingness to pay the FT price-premium
5.2 The level of the FT price-premium
5.3 Moderators of the willingness to pay for FT products
6. DISCUSSION
7. REFERENCES
APPENDIX
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