Journal of Business Ethics:1-26 (forthcoming)

Selling fair-trade products can be problematic because of their higher price when compared with conventional alternatives. We propose that one way to solve this problem is to make consumers aware of the benefits of fair-trade. To this end, we perform three experimental studies to show that partitioned pricing, which explicitly displays fair-trade as a separate price component, increases consumers’ purchase intention toward the fair-trade product. This effect can be explained by increased perceptions of price fairness, which itself is mediated through transparency. In the absence of such a verbal justification, recalled prices instead of transparency explain the positive effect of PP on consumers’ purchase intentions. Interestingly, boundary conditions of this effect barely exist. Our incentive-aligned study illustrates that PP is associated with a 20% increase in purchases of fair-trade products. The results demonstrate an opportunity to increase the market share of fair-trade products, which increases social welfare and sustainability.
Keywords No keywords specified (fix it)
Categories (categorize this paper)
DOI 10.1007/s10551-021-04938-6
Edit this record
Mark as duplicate
Export citation
Find it on Scholar
Request removal from index
Translate to english
Revision history

Download options

PhilArchive copy

Upload a copy of this paper     Check publisher's policy     Papers currently archived: 70,307
External links

Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
Through your library

References found in this work BETA

No references found.

Add more references

Citations of this work BETA

No citations found.

Add more citations

Similar books and articles

The Role of Personal Values in Fair Trade Consumption.Caroline Josephine Doran - 2009 - Journal of Business Ethics 84 (4):549-563.
Fair Trade: An Imperfect Obligation?Nicole Hassoun - 2018 - Global Justice : Theory Practice Rhetoric 10 (2).
Fair Trade: An Imperfect Obligation?Nicole Hassoun - 2017 - Global Justice: Theory Practice Rhetoric 10 (2).


Added to PP index

Total views
1 ( #1,546,653 of 2,507,870 )

Recent downloads (6 months)
1 ( #416,715 of 2,507,870 )

How can I increase my downloads?


Sorry, there are not enough data points to plot this chart.

My notes