Information source and content – Drivers for consumers’ valuation of fairly traded chocolate

Abstract

To learn about the role of information content and source as catalysts to increase consumers' valuation of fairly traded foods, we conducted an online survey with 2500 consumers representative of the German population. Within the online survey, respondents were randomly assigned to one of five information treatments or the control group. We employ the contingent valuation approach to measure the willingness-to-pay (WTP) premium for chocolate with the Fairtrade label compared to similar conventional chocolate. To estimate WTP and another outcome which measures the participants’ purchasing intentions, we use ordinary least squares and interval regressions. We find that German consumers are willing to pay a high price premium for a Fairtrade label despite limited knowledge about the certification. This WTP is relatively robust to additional supportive information provision irrespective of the information source. However, the purchasing intention can rise due to information provided by a retailer or the government. While a supportive statement by a university does not seem to incentivize the valuation of Fairtrade certified chocolate, we find that an unsupportive (zero effect) statement of the same source can discourage the purchasing intention. Our findings imply that policymakers and communicators of scientific information need to mind the risk of generalized science communication aiming at forming the public opinion and create information campaigns to increase purchasing frequency. • Little knowledge about certification impedes valuation of Fairtrade chocolate. • 2500 German consumers were exposed to five treatments in an online survey. • Information does not affect the initial high willingness to pay. • Supportive information by retailers or government increases purchasing intention. • Zero-effect statements by a university decrease the purchasing intention.