Are Stated Preferences Confirmed by Purchasing Behaviours? The Case of Fair Trade-Certified Bananas in Switzerland

Abstract

As the market share of Fair Trade food products in countries of the North grows, understanding consumer preferences with regard to this recent label is becoming increasingly important. This article reports on a test of the consistency of consumers’ stated preferences, for which a survey was conducted at the place and time of actual purchase decisions. The aim of the survey was to further improve the understanding of consumers’ stated motivations for buying ‘Fair Trade’ and ‘organic Fair Trade’ bananas in Switzerland. Hypothetical questions with double dichotomous choices were used to compare two types of bananas – conventional and labelled – and to assess the average stated willingness-to-pay (WTP) for Fair Trade-labelled bananas. The results show that Fair Trade is largely accepted in Switzerland and that the premium for purchasing such products is influenced by age, the number of young children and the perception of the Fair Trade label. I then used a comparative test of field observations and stated preferences for bananas to measure inconsistency in choices. This comparison reveals that less than one-fifth of the answers are in principle inconsistent. These results point to the importance of confidence in the Fair Trade labels if consumers’ purchases are to increase.