BusinessEconomics

P. Pelsmacker, Liesbeth Driesen, G. Rayp

2005.9.1JOURNAL OF CONSUMER AFFAIRS

DOI: 10.1111/j.1745-6606.2005.00019.x

tlooto Summary

In a survey of 808 Belgian respondents, the actual willingness to pay for fair-trade coffee was measured and it was found that the average price premium that the consumers were willing to paid for a fair- trade label was 10%.

Abstract

Consumers’ buying behavior is not consistent with their positive attitude toward ethical products. In a survey of 808 Belgian respondents, the actual willingness to pay for fair-trade coffee was measured. It was found that the average price premium that the consumers were willing to pay for a fair-trade label was 10%. Ten percent of the sample was prepared to pay the current price premium of 27% in Belgium. Fair-trade lovers (11%) were more idealistic, aged between 31 and 44 years and less “conventional.” Fair-trade likers (40%) were more idealistic but sociodemographically not significantly different from the average consumer.

Citation format

PELSMACKER, P.; DRIESEN, Liesbeth; RAYP, G. Do consumers care about ethics? Willingness to pay for fair‐trade coffee. JOURNAL OF CONSUMER AFFAIRS, 2005, 39: 363–385.