Fair Trade: Market-Driven Ethical Consumption Fair trade: Market-driven ethical consumption

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zachary Robichaud ◽  
Hong Yu

PurposeA global shift in ethical/sustainable purchase drivers highlights Generation Z (persons aged 15–24) as an important market for producers and marketers. Although much research has touched on fair trade consumption, very little has focused on Gen Z's consumption patterns. This study provides insights into and implications of younger consumers' motivations in ethical/sustainable consumption.Design/methodology/approachThis research examines Gen Z's purchase intention towards fair trade coffee with the theory of reasoned action framework. Data were collected with a convenience sample, and analyses were conducted using structural equation modelling.FindingsThe research found a significant influence of knowledge of fair trade towards product interest. Furthermore, general attitudes towards fair trade had a significant influence on product interest, product likeability and convenience. Lastly, product interest and subjective norms significantly influenced Gen Z's purchase intentions towards fair trade coffee.Originality/valueFindings suggest that Gen Z's shift in ethical/sustainable consumption revolves around their subjective norms or peer influence circles and contributes to the notions of self-branding, identify claims and social currency. Younger generations are digital natives, and social media has created a looking glass into their actions. This digital expansion has created more opportunities for individuals to monitor the actions of others and release information in real-time. Therefore, ethical/sustainable consumption by Gen Z can be used as a communication tool among their peers to project personal values and ideological shifts and to influence others close to them.


2021 ◽  
Author(s):  
◽  
Kelle Howson

<p>Fair trade aims to empower smallholder agricultural producers in the global South to gain more power over their industries by the formation of transparent and democratically representative cooperatives. However, critiques of the fair trade system have emerged in ethical consumption literature, and pockets suggest that individual producer contexts have more of a role to play in determining the benefits of fair trade than had been previously understood or addressed. This work constitutes a case study designed to examine implementation and practice anomalies within the Timorese fair trade certified coffee industry, and the ways in which they impact on producers’ livelihoods and development. A mixed methods approach is deployed to analyse the coffee cooperative Cooperativa Café Timor, and the producers who sell to it. It finds the cooperative to be subject to a number of external pressures that prevent it from passing on the benefits of fair trade certification to farmers. Governance practices in terms of transparency and grassroots representation are found to be significantly hindered by reliance on outside organisations for market access. Also, producers are found to remain superficially represented within commodity chains; having little or no access to value-added income. The involvement of American private enterprise within the East Timorese fair trade system has served to distance the fair trade cooperative from its grassroots, and acts as somewhat of a barrier to democratic management, participatory decision-making, and the realisation of the objectives of fair trade.</p>


2017 ◽  
Vol 29 (3) ◽  
pp. 553-568 ◽  
Author(s):  
Ghi-Feng Yen ◽  
Ru-Yu Wang ◽  
Hsin-Ti Yang

Purpose The purpose of this paper is to examine how psychological antecedents (i.e. consumer mindsets) and individual difference characteristics (i.e. moral identity) affect the intention to purchase Fair Trade products based on the triadic reciprocal causation model in social cognitive theory (Bandura, 1986). The primary factors that influence ethical consumption decisions in ethnic Chinese societies were explored by integrating the unique cultural environment of the Chinese. Design/methodology/approach The study effective sample comprised university students and professors. Structural equation modelling was used to test the hypotheses and indirect effects. Results showed that moral identity internalization had a mediating effect on the relationship between a collectivistic mindset and the intention to purchase Fair Trade products. Findings A high moral identity symbolization had a moderating effect on the relationship between a collectivistic mindset and the intention to purchase Fair Trade products. This demonstrated that the two dimensions of moral identity, internalization and symbolization, play different roles and have different functions in regards to the intention to purchase Fair Trade products. Research limitations/implications Future studies are urged to examine this issue at a cultural level by performing a cross-cultural comparison and to integrate consumer heterogeneity for a deeper examination of the interaction between demographic factors and psychological traits on consumer behaviours regarding Fair Trade products. Originality/value This study indicates that moral identity internalization is the primary factor that influences ethical consumption decisions in Chinese societies. In terms of the moderating effect of moral identity symbolization, results showed that the higher an individual’s moral identity symbolization, the stronger the relationship between a collectivistic mindset and the intention to purchase Fair Trade products is. These results can serve as a reference for marketing communications and market segmentation policies in the business world.


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