Effects of perceived justice of fair trade organizations on consumers’ purchase intention toward fair trade products

Abstract

The purpose of fair trade (FT) initiatives is to provide fair and reasonable payment to producers who may otherwise be negatively affected by free trade. Attracting consumers to purchase FT products is key to the success of the FT movement. This study identified the effects of consumers’ perceived justice of FT organizations (FTOs) on their purchase intention toward FT products. A total of 398 valid questionnaire responses were received and structural equation modeling was adopted to assess the casual relationships between variables. The results indicate that (a) perceived distributive, procedural, and interactional justice of FTOs among consumers positively affected trust in FTOs; (b) perceived distributive and procedural justice exhibited positive effects on perceived effectiveness of FT; and (c) trust in FTOs and perceived effectiveness of FT among consumers positively affected their purchase intention toward FT products. Based on these findings, this study provides practical suggestions to FT-related businesses and organizations, enabling these entities to accurately determine directions for the promotion and marketing communications of FT products.