Do Consumers Care about Ethics? Willingness to Pay for Fair‐Trade Coffee

TLDR

Consumers often buy products inconsistently with their positive attitude toward ethical goods. The study surveyed 808 Belgian respondents to measure their willingness to pay for fair‑trade coffee. Consumers were willing to pay an average 10% premium for fair‑trade coffee, with 10% willing to pay the 27% premium in Belgium; fair‑trade lovers (11%) were younger, more idealistic, and less conventional, whereas fair‑trade likers (40%) were similarly idealistic but otherwise comparable to the average consumer.

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.