Do Information, Price, or Morals Influence Ethical Consumption? A Natural Field Experiment and Customer Survey on the Purchase of Fair Trade Coffee
We address ethical consumption using a natural field experiment on the actual purchase of Fair Trade (FT) coffee in three supermarkets in Germany. Based on a quasi-experimental before-and-after design the effects of three different treatments - information, 20% price reduction, and a moral appeal - are analyzed. Sales data cover actual ethical purchase behavior and avoid problems of social desirability. But they offer only limited insights into the motivations of individual consumers. We therefore complemented the field experiment with a customer survey that allows us to contrast observed (ethical) buying behavior with self-reported FT consumption. Results from the experiment suggest that only the price reduction had the expected positive and statistically significant effect on FT consumption. In the customer survey, however, we find that the personal norm has the strongest effect on both self-reported and observed purchases of FT products.
|Date of creation:||26 Apr 2014|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.sowi.unibe.ch/|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gerald J. Pruckner & Rupert Sausgruber, 2009.
"Honesty on the Streets: A Natural Field Experiment on Newspaper Purchasing,"
NRN working papers
2009-24, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
- Gerald J. Pruckner & Rupert Sausgruber, 2008. "Honesty on the Streets - A Natural Field Experiment on Newspaper Purchasing," Working Papers 2009-24, Faculty of Economics and Statistics, University of Innsbruck.
- Patrice Cailleba & Herbert Casteran, 2010. "Do Ethical Values Work? A Quantitative Study of the Impact of Fair Trade Coffee on Consumer Behavior," Journal of Business Ethics, Springer, vol. 97(4), pages 613-624, December.
- George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
- Veronika Andorfer & Ulf Liebe, 2012. "Research on Fair Trade Consumption—A Review," Journal of Business Ethics, Springer, vol. 106(4), pages 415-435, April.
- Rotaris Lucia & Danielis Romeo, 2011. "Willingness to Pay for Fair Trade Coffee: A Conjoint Analysis Experiment with Italian Consumers," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 9(1), pages 1-22, June.
- Michal Carrington & Benjamin Neville & Gregory Whitwell, 2010. "Why Ethical Consumers Don’t Walk Their Talk: Towards a Framework for Understanding the Gap Between the Ethical Purchase Intentions and Actual Buying Behaviour of Ethically Minded Consumers," Journal of Business Ethics, Springer, vol. 97(1), pages 139-158, November.
- John Cranfield & Spencer Henson & James Northey & Oliver Masakure, 2010. "An assessment of consumer preference for fair trade coffee in Toronto and Vancouver," Agribusiness, John Wiley & Sons, Ltd., vol. 26(2), pages 307-325.
- Patrick Pelsmacker & Wim Janssens, 2007. "A Model for Fair Trade Buying Behaviour: The Role of Perceived Quantity and Quality of Information and of Product-specific Attitudes," Journal of Business Ethics, Springer, vol. 75(4), pages 361-380, November.
- Tversky, Amos & Kahneman, Daniel, 1986. "Rational Choice and the Framing of Decisions," The Journal of Business, University of Chicago Press, vol. 59(4), pages S251-78, October.
- Robert T. Jensen & Nolan H. Miller, 2008. "Giffen Behavior and Subsistence Consumption," American Economic Review, American Economic Association, vol. 98(4), pages 1553-77, September.
- Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
- Shareen Hertel & Lyle Scruggs & C. Patrick Heidkamp, 2007. "Human Rights and Public Opinion: From Attitudes to Action," Economic Rights Working Papers 3, University of Connecticut, Human Rights Institute, revised Apr 2008.
- Basu, Arnab K. & Hicks, Robert L., 2008. "Label Performance and the Willingness to Pay for Fair Trade Coffee: A Cross-National Perspective," Discussion Papers 44336, University of Bonn, Center for Development Research (ZEF).
- Battalio, Raymond C & Kagel, John H & Kogut, Carl A, 1991. "Experimental Confirmation of the Existence of a Giffen Good," American Economic Review, American Economic Association, vol. 81(4), pages 961-70, September.
- repec:feb:natura:0061 is not listed on IDEAS
- Chris Arnot & Peter C. Boxall & Sean B. Cash, 2006.
"Do Ethical Consumers Care About Price? A Revealed Preference Analysis of Fair Trade Coffee Purchases,"
Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie,
Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(4), pages 555-565, December.
- Chris Arnot & Peter Boxall & Sean Cash, 2006. "Do ethical consumers care about price? A revealed preference analysis of fair trade coffee purchases," Natural Field Experiments 00221, The Field Experiments Website.
- Julie A. Caswell & Eliza M. Mojduszka, 1996.
"Using Informational Labeling to Influence the Market for Quality in Food Products,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 78(5), pages 1248-1253.
- Caswell, Julie A. & Mojduszka, Eliza M., 1996. "Using Informational Labeling To Influence The Market For Quality In Food Products," Working Papers 25989, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
- Lakshman Krishnamurthi & S. P. Raj, 1991. "An Empirical Analysis of the Relationship Between Brand Loyalty and Consumer Price Elasticity," Marketing Science, INFORMS, vol. 10(2), pages 172-183.
- Jeffery Bray & Nick Johns & David Kilburn, 2011. "An Exploratory Study into the Factors Impeding Ethical Consumption," Journal of Business Ethics, Springer, vol. 98(4), pages 597-608, February.
- N. Lesca, 2011. "Introduction," Post-Print halshs-00640604, HAL.
When requesting a correction, please mention this item's handle: RePEc:bss:wpaper:6. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ben Jann)
If references are entirely missing, you can add them using this form.