Why Consumers Purchase Fair-Trade Products

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Introduction Fair trade is an initiative that was created by importing organisations in the United States and Europe with the purpose of fostering inclusion, capacity building as well as equal opportunities for agricultural and textile producers who had been marginalised in less developed nations (Huybrechts 2012). The whole concept of fair trade has seized the imagination of the public in a remarkable way. This is evidenced not only by increased sales of products or the rampant acknowledgement of the trade mark, rather from the almost global recognition and understanding of the term itself as well as immense advocacy at the grassroots through establishments as fair trade towns. Fair trade has been defined by major fair-trade organisations as: “A trading partnership, based on dialogue, transparency and respect that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, securing the rights of, marginalised producers and workers, especially in the south. Fair trade organisations (backed by consumers) are engaged actively in supporting producers, awareness raising and in campaigning for changes in rules and practice of international trade”. (Huybrechts 2012, p.13) Perceived from this angle, fair trade has turned out as an ‘alternative’ standard institutional arrangement to marshal and regulate production and trade in a range of sectors. Much marketing of fair trade products lean towards the principle of a fair price for producers, integrating both minimum prices enumerated in relation to each particular product line (Shaw et al. 2006). Additionally, the system attempts to embed principles of democratic decision-making and social and environmental stability ac... ... middle of paper ... ...10. Ethical Products and Consumer Involvement: What’s New? European Journal of Marketing, 44(9/10), 1305-1321. Gomersall, K., and Wang, M. Y., 2012. Expansion of Fairtrade Products in Chinese Market. Journal of Sustainable Development, 5(1), 23-32. Huybrechts, B., 2012. Fair Trade Organisations and Social Enterprise: Social Innovation through Hybrid Organisation Models. Routledge: New York. Pelsmacker, P. D., Driesen, L., and Rayp, G., 2005. Do Consumers Care About Ethics? Willingness to Pay for Fair-Trade Coffee. Journal of Consumer Affairs, 39(2), 363-385. Raynolds, L. T., Murray, D., and Wilkinson, J., 2007. Fair Trade: The Challenges of Transforming Globalisation. New York: Routledge. Shaw, D., Hogg, G., Wilson, E., Shui, E., and Hassan, L., 2006. Fashion Victim: The Impact of Trade Concerns on Clothing Choice. Journal of Strategic Marketing, 14, 427-440.

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