Cross-Country Analysis of Willingness to Pay More for Fair Trade Coffee: Exploring the Moderating Effect between South Korea and Vietnam

Abstract

This study aims to analyze variations in the willingness to pay more for fair trade coffee between South Korea and Vietnam. Employing the theory of planned behavior (TPB), the research delves into consumer attitudes, subjective norms, and perceived behavioral control related to increased expenditure on fair trade coffee. The investigation centers on two coffee-centric nations: South Korea, known for its substantial coffee consumption, and Vietnam, a global powerhouse in both coffee production and consumption. In this study, hypothesis testing was conducted using SmartPLS 4.0.9.5, and CFA (confirmatory factor analysis) and SEM (structural equation modeling) were used to assess each initial and second stage. In the second stage, moderating effects were examined through multi-group analysis. This study particularly explores how moral responsibility, knowledge, and involvement in fair trade coffee shape individuals’ attitudes toward FTC. Additionally, it aims to validate potential moderating effects between the two countries. While previous studies have emphasized the significance of ethical consumption, especially in business ethics, this research expands on these insights by examining fair trade coffee within the broader context of the coffee industry, encompassing both coffee-consuming and coffee-producing nations. The practical implications highlight that merely increasing knowledge about fair trade coffee is insufficient to foster a positive attitude. Instead, it underscores the importance of moral responsibility, which significantly influences attitudes toward fair trade coffee among both Koreans and Vietnamese.