Do preferences for fair trade rely on ethical argument or logos?

Abstract

This paper investigates the effect of ethical labelling on consumer choice in the context of fair trade. Previous studies have shown that the Fairtrade logo has a positive effect on brand choice. However, it is uncertain whether this effect is due to attention to an ethical claim or due to the Fairtrade brand. Understanding which of these two aspects are the main drivers in consumers’ decision making can help marketers to design marketing communications and packaging strategies. This paper reports a conjoint experiment that compares the effect of the Fairtrade logo with a hypothetical comparator logo that is matched on contrast, size, number of colours and ethical context. The effect of the Fairtrade logo was much larger than for the comparator logo demonstrating that fair trade effects are not solely due to mere attention or ethical appeal.