Maximilian Wei

Academic Communication II

Literature Review

Nowadays, companies tend to work on sustainable products rather than non-sustainable ones
as the demand for sustainable products increases. By doing so, the expectation is to achieve
a better image towards customers in general and to reach a wider circle of customers.
However, the market of sustainable products brings along problems which the companies
have to deal with: higher costs, smaller availability and readjustments everything in order to
provide a more responsible experience. That is why companies need to change their
marketing strategies and make efforts to be able to compete economically with companies
which lure customers with considerably less sustainable, but also much less expensive
products. To ensure competitiveness, it should be clear what companies can do to be
successful and what consequences might result from caring about sustainability. In order to
guarantee the alleged sustainability and a greater responsibility to the customers, one of the
most common efforts is to provide so-called Fair Trade products. To determine whether the
adoption of these products is worth the struggle, the following question has to be answered:
To what extent does the purchase of Fair Trade products influence the consumers attitude?
Answering this crucial question requires dealing with these topics: Fair Trade in general and
how it is defined, the characteristics of the potential Fair Trade consumer, the incentives for
buying Fair Trade products and the meaning of Fair Trade to the customer.
As of today, Fair Trade is on everyones lips. But what does it actually mean? The name itself
suggests something fair which essentially can be translated with honest, reasonable,
clean or just. In conjunction with the term trade, it could mean that the products labeled
Fair Trade are products that have a clean history with nothing bad happening throughout the
production.
Nevertheless, to give a more specific overview of what Fair Trade basically means, this
definition of the EFTA, the European Free Trade Association, which says it is a trading
partnership, based on dialogue, transparency and respect, that seeks greater equity in
international trade is appropriate; in this context, it is also indicated that Fair Trade
contributes to sustainable development by offering better trading conditions to, and securing
the rights of, marginalized producers and workers especially in the South. (EFTA, 2002, p.
24) To sum up, the keywords of Fair Trade are: transparency, respect, equity, sustainability
and development; and since each one of these words connotes positively, this corresponds to
the broader term fair.
In addition to that, the greater task of Fair Trade is considered the support of social justice
which can be seen as a huge problem in the modern world, as there are many structural
disparities between the North and the South. Improving the conditions as far as prices, labor
and the situation of the environment and the communities in affected regions of countries are
concerned is also rather important aspect of Fair Trade (International Journal of Consumer
Studies, 2011, p.656).
What is more, Fair Trade can be characterized by its organizations. These organizations were
founded to directly help producers in underdeveloped countries and, more importantly, show
the world that the conditions need to be improved by making it a public issue through
campaigns. They also enter into dialogues with those who are responsible for the current state
of affairs in order to promote progress.

Maximilian Wei

Academic Communication II

Literature Review

To conclude, Fair Trade can be seen as a movement whose goal it is to create better
productions conditions all over the world. It tries to achieve this goal by helping producers
and ensuring their situation does not worsen.
Now that there is a better understanding of what Fair Trade includes, one can concentrate on
the customer buying Fair Trade products. This person must be different from the usual
customer, since they decide to pay more for a product that in its core may not be unlike others
(Journal of Business Ethics, 2011, p.365), but whose history is definitely different. Therefore,
the Fair Trade consumer is described in the following.
First, there is the will of the consumer to spend more money for the fact that their product is
produced in a fair manner (Journal of Business Ethics, 2009, p.2) even if there are other
possibilities on the market which may be less expensive. This leads to the assumption that
buyers of Fair Trade products have a higher income which enables them to buy better
products. Moreover, there is the aspect of being responsible: The consumers knows about the
nuisances in productions in affected countries and feels that there is a need for change; by
buying Fair Trade products, they express this feeling and thereby show that they care.
Furthermore, the consumers view of the retailer is a significant feature. If a retailer keeps
products in stock which are labeled Fair Trade, they receive a reputation for being more
conscious. This is a way of gaining trust so that these customers may choose a Fair Trade
retailer over other ones. The comparison of brands belongs to this aspect as well, because the
customers favor products from companies that produce responsibly; the producers profile
thereby takes on greater significance.
Giving an example of who the typical person buying Fair Trade products look like is not that
easy, since one can imagine that nowadays people of all demographic groups nowadays may
buy those products. However, studies show that people from Paris or the regions around it buy
the most Fair Trade products around the globe; people with considerably higher incomes to
dispense are also at the of the list when it comes to taking Fair Trade into account. This
circumstance may be a result of a better education which leads to a higher awareness of
inequities in the world (International Journal of Consumer Studies, 2011, p.656).
The consumers of Fair Trade not only adapt to these products in order to improve the
situation, but also demand something: For the higher price, a good product is supposed to be
natural; yet, the price should not be excessive and the product has to be available without any
struggle.
To sum up, the typical Fair Trade consumer is a very conscious and intelligent person who is
eager to improve the situation of those disadvantaged in order to achieve more equality and
justice. Responsibility is a very important aspect in this context.
Knowing what characterizes a Fair Trade consumer does not necessarily uncover what might
drive them to this decision. As a result of this, one has to ask: Which incentives make
consumers buy Fair Trade products and why?
Very central is the obligation towards others an open-minded person might experience. The
potential Fair Trade consumer who is reputed to be open-minded sees things on a larger scale,
which lets them think of others not only in their community, but also in the whole world.
That is why this obligation leads to thoughts about ethical issues; and even if it is not possible
for everyone to help exploited producers directly, there is the idea of resolving issues
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Maximilian Wei

Academic Communication II

Literature Review

indirectly by only consuming products that are considered fair. A change of priority can be
observed: fairness over price.
Some consumers could also have the effect of a chain reaction in mind: Buying Fair Trade
products may motivate others to do so, too. They want change something, but know that is
quite hard by oneself. Therefore, allies have to be found in order for the project to have a
greater effect. This action can either take place on a lower level with only friends, family and
acquaintances involved or on higher one with campaigns which should encourage people to
change their way of thinking.
Moreover, the protection of the environment as well as the social aspect is an impulse to buy
Fair Trade products. Imagining that they do want to live in utterly underdeveloped and
perhaps even polluted surroundings with no infrastructure and basically no future themselves,
Fair Trade customers take a stand and try to improve the situation so that the people living
there can have better lives, too.
The thought that consumers actually have power and that this power can be used to shape the
worlds economy, especially in countries which need help, also plays an important role when
analyzing what animates Fair Trade consumers. The powers which big companies that take
advantage of the bad conditions in some countries have been building for decades is now
being challenged by conscious consumers (International Journal of Consumer Studies, 2011,
p.657).
Being altruistic and wanting that people in countries depending on Fair Trade to improve the
situation increase their well-being is an incentive that sums the approach of a global
community in which people despite their possible distance from each other care about
everyone doing well.
Finally, the Fair Trade consumer is chiefly driven by his will to improve the world. The fact
that set goals can be achieved provides confidence and a change of attitude.
Since buying Fair Trade products indeed has a rational component which mainly constitutes
on the belief that inequities have to be fought against, but also can be seen as an emotional
act, the question of what the actual purchase of Fair Trade products means to the customer
arises.
First, the feeling of responsibility and also demonstrating this to others certainly is crucial. By
consuming Fair Trade products, the consumer basically feels better and contributes something
to improve the situation of others (Journal of Business Ethics, 2011, p.366).
What is more, the factor of having the control is essential for the customers feeling towards
Fair Trade. Their purchasing behavior brings consequences affecting the whole world with it.
The feeling of being able to change something by buying a product means a lot.
To conclude, the meaning of Fair Trade to the customer can be seen on an emotional level,
which means that feel inequality and due to that the need to get rid of it.
By lining out and showing what kind of effect Fair Trade has on the customer, it has become
clear that Fair Trade definitely influences those who buy products labeled with it. However,
the question of to what extent the purchase of Fair Trade products does influence the
consumers attitude can be answered as follows: Fair Trade entails a high appeal on people
who already think it is a great idea. If one begins living totally consciously, Fair Trade is the
3

Maximilian Wei

Academic Communication II

Literature Review

only way to go, since most products available do not reveal their origin, which is why one has
to assume the worst case, namely exploitation, bad working and living conditions, maybe
child labor and other deficiencies in or resulting from the production. The purchasing
behavior has to be rethought in order to match the requirements of living consciously
(Renewable Agriculture and Food Systems, 2008, p.235).
Moreover, the aspect of collectiveness is a rather important one, because those influenced by
Fair Trade seem to know that the whole concept only works, if it arrives in the collective
conscience. Therefore, those influenced actually become influencers so that an individual
awareness grows to a collective one.
One can conclude that Fair Trade is unquestionably influential. People who are able to buy
those products, which means that they can afford it, as the products are considerably more
expensive than many others, are one group of consumers, yet, there is another big group of
consumers who might want join the Fair Trade movement, but are simply not able, since they
cannot afford the products. That is why conventional products whose history is most of the
time unclear still dominate. Consequently, Fair Trade products can be considered luxurious
and will only influence those who can afford this luxury. Reducing prices would, however, be
counterproductive to the whole concept of Fair Trade.

Maximilian Wei

Academic Communication II

Literature Review

Reference list:

1. Through Thick and Thin: How Fair Trade Consumers Have Reacted to the Global
Economic Recession (Journal of Business Ethics, 2011)
http://link.springer.com/content/pdf/10.1007%2Fs10551-010-0726-4.pdf
2. Consumer involvement in fair trade and local food systems: delegation and empowerment
regimes (GeoJournal, 2008)
http://link.springer.com/content/pdf/10.1007%2Fs10708-008-9178-0.pdf
3. The Missing Link Between Corporate Social Responsibility and Consumer Trust: The Case
of Fair Trade Products (Journal of Business Ethics, 2009)
http://link.springer.com/content/pdf/10.1007%2Fs10551-008-9669-4.pdf
4. Consumer willingness to pay for domestic 'fair trade': Evidence from the United States
(Journal: Renewable Agriculture and Food Systems; 2008)
http://journals.cambridge.org/download.php?file=%2FRAF%2FRAF23_03%2FS1742170508
002275a.pdf&code=181169f9355d39de3592b187924f0996
5. Why does not everybody purchase fair trade products? The question of the fairness of fair
trade products' consumption for consumers (International Journal of Consumer Studies, 2011)
http://onlinelibrary.wiley.com/store/10.1111/j.1470-6431.2010.00990.x/asset/j.14706431.2010.00990.x.pdf?v=1&t=hk3pvopj&s=b38c52e1244593f4caaa7d747c9ca33bfa1f2b85
6. In Search of a Golden Blend: Perspectives on the Marketing of Fair Trade Coffee
(Sustainable Development, 2005)
http://onlinelibrary.wiley.com/store/10.1002/sd.274/asset/274_ftp.pdf?v=1&t=hk3r05hx&s=f
78a806d44f1aeade6fb786c6f53bf42ad352694