Consumers willingness to pay for Fair trade and organic products

Summary

More and more products are now both “organic and fair trade” but little is known about consumers perception of these double labels. In this article, we examine the importance of the “organic” and “fair trade” labels in the consumers’ buying decisions and the effect on the perception of the taste of the product by the consumers in the valuation of these labels. We also propose a consumers’ typology according to their degree of valuation of these labels, and analyze the motivations of their behaviour.
Three consumers’ clusters were identified according to their reactions to the “organic and fair trade” label - the first cluster represents the people insensitive to the label’s presence, and contained nearly one half of the sample; for a second cluster, the “organic and fair trade” labels’ influence on the improving image of the products was positive and important; finally, for the third cluster, the valuation of the “organic and fair trade” label was determined by the product’s taste.