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An assessment of consumer preference for fair trade coffee in Toronto and Vancouver

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Author Info

  • John Cranfield

    (Department of Food, Agricultural and Resource Economics, University of Guelph, Guelph, Ontario N1G 2W1, Canada)

  • Spencer Henson

    (Department of Food, Agricultural and Resource Economics, University of Guelph, Guelph, Ontario N1G 2W1, Canada)

  • James Northey

    (Department of Food, Agricultural and Resource Economics, University of Guelph, Guelph, Ontario N1G 2W1, Canada)

  • Oliver Masakure

    (Department of Human Rights and Human Diversity, Wilfrid Laurier University, Brantford, ON N3T 6C9, Canada)

Abstract

In this article, the authors use conjoint analysis to elicit the views of coffee consumers on the attributes of Fair Trade coffee using data from the Greater Toronto Area and Vancouver collected through face-to-face interviews with consumers. The impact of socioeconomic and demographic factors on respondents' acceptance of Fair Trade coffee is evaluated using cluster analysis and multinomial logit models. The results suggest that, regardless of location, consumers place a strong premium on price and labeling claims. Three consumer segments are identified in each city; in Toronto, these segments are labeled Fair Trade-Focused, Price Conscious, and Balanced Buyers; for Vancouver these segments are labeled Organic and Fair Trade-Focused, Price Conscious, and Balanced Buyers. Although a broad spectrum of variables influences segment membership, no single variable explains membership in the same segment in each city. Such a result is rather telling; it suggests deeper constructs underlie segment membership, and presumably consumption behavior with respect to Fair Trade coffee. © 2010 Wiley Periodicals, Inc.

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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

Volume (Year): 26 (2010)
Issue (Month): 2 ()
Pages: 307-325

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Handle: RePEc:wly:agribz:v:26:y:2010:i:2:p:307-325

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Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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  1. Bradley D. Parrish & Valerie A. Luzadis & William R. Bentley, 2005. "What Tanzania's coffee farmers can teach the world: a performance-based look at the fair trade-free trade debate," Sustainable Development, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 13(3), pages 177-189.
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  3. Teisl, Mario F. & Roe, Brian & Hicks, Robert L., 2002. "Can Eco-Labels Tune a Market? Evidence from Dolphin-Safe Labeling," Journal of Environmental Economics and Management, Elsevier, vol. 43(3), pages 339-359, May.
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  6. Wuyang Hu & Michele M. Veeman & Wiktor L. Adamowicz, 2005. "Labelling Genetically Modified Food: Heterogeneous Consumer Preferences and the Value of Information," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(1), pages 83-102, 03.
  7. Baker, Gregory A. & Burnham, Thomas A., 2001. "Consumer Response To Genetically Modified Foods: Market Segment Analysis And Implications For Producers And Policy Makers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, Western Agricultural Economics Association, vol. 26(02), December.
  8. Laura T. Raynolds & Douglas Murray & Peter Leigh Taylor, 2004. "Fair trade coffee: building producer capacity via global networks," Journal of International Development, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 16(8), pages 1109-1121.
  9. Loureiro, Maria L. & Lotade, Justus, 2005. "Do fair trade and eco-labels in coffee wake up the consumer conscience?," Ecological Economics, Elsevier, Elsevier, vol. 53(1), pages 129-138, April.
  10. John Wilkinson, 2007. "Fair Trade: Dynamic and Dilemmas of a Market Oriented Global Social Movement," Journal of Consumer Policy, Springer, Springer, vol. 30(3), pages 219-239, September.
  11. Bacon, Christopher, 2005. "Confronting the Coffee Crisis: Can Fair Trade, Organic, and Specialty Coffees Reduce Small-Scale Farmer Vulnerability in Northern Nicaragua?," World Development, Elsevier, Elsevier, vol. 33(3), pages 497-511, March.
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Cited by:
  1. Ulf Liebe & Veronika A. Andorfer & Patricia A. Gwartney & Jürgen Meyerhoff, 2014. "Ethical Consumption and Social Context: Experimental Evidence from Germany and the United States," University of Bern Social Sciences Working Papers, University of Bern, Department of Social Sciences 7, University of Bern, Department of Social Sciences.
  2. Veronika Andorfer & Ulf Liebe, 2012. "Research on Fair Trade Consumption—A Review," Journal of Business Ethics, Springer, Springer, vol. 106(4), pages 415-435, April.
  3. Veronika A. Andorfer & Ulf Liebe, 2014. "Do Information, Price, or Morals Influence Ethical Consumption? A Natural Field Experiment and Customer Survey on the Purchase of Fair Trade Coffee," University of Bern Social Sciences Working Papers, University of Bern, Department of Social Sciences 6, University of Bern, Department of Social Sciences.
  4. Hannes Koppel & Günther Schulze, 2013. "The Importance of the Indirect Transfer Mechanism for Consumer Willingness to Pay for Fair Trade Products—Evidence from a Natural Field Experiment," Journal of Consumer Policy, Springer, Springer, vol. 36(4), pages 369-387, December.
  5. Yang, Shang-Ho & Hu, Wuyang & Mupandawana, Malvern & Liu, Yun, 2012. "Consumer Willingness to Pay for Fair Trade Coffee: A Chinese Case Study," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, Southern Agricultural Economics Association, vol. 44(01), February.

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