As is the case with ethical consumption in general, not everyone is equally likely to buy fair-trade products. For instance, Littrell and Dickson (1999) found that buyers of cultural (ethnic) fair-trade products were demographically quite homogeneous and consisted of highly educated, well-off Caucasian women in their forties. A large proportion of them were teachers, health professionals, and social workers. Idea Consult (2002) concluded that the Belgian fair-trade consumer is relatively highly educated and has a relatively high income and social status. In addition, personal values appear to play a role in fair-trade buying behavior. For instance, Littrell and Dickson (1999) found that buyers of cultural fair-trade products attached more importance to altruism, equality, peace, and a beautiful and environmentally secure world, and less importance to inner-directed values such as self-respect and inner harmony. In this study, consumers are segmented according to their willingness to pay for different coffee attributes (including the fair-trade attribute). The consumer segments are then defined based on sociodemographic characteristics and their terminal and instrumental values.
In summary, this study investigates the following research questions
1
What is the relative importance that consumers attach to a fair-trade label in their coffee-buying decision, compared with other attributes? Can segments of consumers be defined based on their relative willingness to pay for different coffee attributes? What is their willingness to pay a price premium for the fair-trade attribute? The narrow definition of fair trade (a fair price for products of producers from developing countries) is used.
2
To what extent are the consumer segments different in terms of demographic characteristics and personal values?