XF-FARHV8V-W Consumer demand for fair trade: Evidence from a multistore field experiment
Abstract
We provide new evidence on consumer demand for ethical products from experiments conducted in a U.S. grocery store chain. We find that sales of the two most popular coffees rose by almost 10% when they carried a Fair Trade label as compared to a generic placebo label. Demand for the higher-priced coffee remained steady when its price was raised by 8%, but demand for the lower-priced coffee was elastic: a 9% price increase led to a 30% decline in sales. While consumers attach value to ethical sourcing, there is significant heterogeneity in willingness to pay for it.
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MIT Press - Journals (2015). Consumer demand for fair trade: Evidence from a multistore field experiment. XFID: XF-FARHV8V-W. Retrieved from https://xframework.id/XFFARHV8VW
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