Fair trade and consumer valuation: Purchase intentions in an emerging economy

Abstract

In the scientific literature, there is little evidence of empirical research concerning the impact of fair trade (FT) on shopping behaviour (this is practically non-existent, if we consider studies in emerging economies. For this reason, the aim of this research is to analyse to what extent consumers value FT practices in the context of an emerging economy and how these affect their purchase intentions. For this purpose, partial least squares structural equation modelling (PLS-SEM) is used. The data are based on a sample of 409 consumers of an emerging economy (Peru). According to the results, the intention to purchase FT products by Peruvian consumers depends directly on the variables FT knowledge and attitude towards FT. Furthermore, the indirect influence on the purchase intention of the beliefs about FT variable is verified. On the other hand, the results obtained indicate that there are no differences between Peruvian women and men in terms of direct relations among model constructs. These results enable understanding consumer valuations of emerging economies concerning the responsible practices of firms. The study's findings have significant implications for the management of FT by public organisations and firms. There is evidence that consumers can start to value these FT policies, since they show a favourable disposition towards the consumption of products made or marketed with FT practices.

Cultural distance and bilateral trade: A transitional economy perspective

“…Shavitt and Barnes (2020) finds that the cultural gap between trade partners signifies the appeal of a nation's goods to the customers of another country. Culture is believed to influence international customer demand through the spread of preferences (Piedra et al, 2022;Zimu, 2023). However, consumers may exhibit a preference for domestic items due to their enduring consumption patterns (Ghazali et al, 2021).…”