Alleviating inequity and promoting a moral economy through Fair Trade: how can reluctant consumers become part of the solution?

Abstract

ABSTRACT Anchored in social-justice philosophy, the Fair Trade (FT) system aims to help producers in poor/developing countries through contributions from consumers in wealthy parts of the world. Focusing on consumers who have not yet adopted FT products, we examine marketing options for broadening the Fair Trade system by encouraging the involvement of this consumer segment. Based on equity theory, across three studies, we test if fairness considerations increase consumers’ willingness-to-pay the FT premium and illustrate the role of product type (utilitarian versus hedonic) in stimulating willingness-to-pay. Individual differences in consumers’ social-value-orientation are taken into account, and the strategic implications of marketing FT products to reluctant consumers are highlighted.