Consumer Purchase Intentions Regarding Fair-Trade Coffee and the Role of Virtual Reality: an Exploratory Study

Abstract

Fair-trade is an alternative approach to trading that has a goal of sustainable development and creating a better opportunity for producers in third world countries. Fair-trade coffee represents the largest category under this umbrella. Globally, Generation Z’s consumption and adoption of ethical/sustainable products creates new challenges and opportunities for producers and marketers. Virtual reality has seen to educate, market, and create value with its media richness, presence, interactive, and immersive qualities. As a result, VR has positioned itself to be a very strong communication tool for social scientists and marketers to add value, communicate effective messages, and impact consumer behaviour. This research examines consumer purchase intentions regarding Fair-trade coffee through the lenses of the Theory of Reasoned Action and the exploratory effect of virtual reality in the context of Generation Z. A first analysis will allow me to outline, present, and test a model regarding Fair-trade coffee consumption in the scope of the Theory of Reasoned Action. Additionally, a second analysis will leverage VR in an exploratory manner to see if this has an effect on the dimensions outlined in the model. The dimensions presented to impact Fair-trade coffee purchase intentions are personal values, knowledge of Fair-trade, general attitudes towards purchasing Fair-trade coffee, and subjective norms. By analyzing data from 314 respondents, this study found that competence, knowledge of Fair-trade, skepticism, and concern are significant predictors of product interest and likeability. Knowledge of Fair-trade and Skepticism are significant predictors of price acceptability. Furthermore, subjective norms are a significant predictor of purchase intentions. Lastly, virtual reality was found to have an inconclusive effect on the dimensions outlined in the conceptual model.