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Fairly sold? Adding value with fair trade coffee in cafes

Fairly sold? Adding value with fair trade coffee in cafes Purpose – The presence of fair trade coffee in cafés may help in strategic positioning and market differentiation. This paper aims to explore the extent to which this is evident for café customers. Design/methodology/approach – Customers were surveyed on their perceptions of café and coffee attributes including taste, price and store atmosphere. Respondents were analysed by knowledge of the concept of fair trade, and by frequency and place of purchase. Findings – The study finds that nearly half of respondents claimed moderate self‐assessed knowledge, although objective knowledge was lower. More knowledgeable customers cared more for fair trade products and for café atmosphere, of which fair trade promotional material plays a part. Customers stated they expected to pay more for fair trade coffee, although on average not as much as current margins require. When exposed to more information about fair trade, stated price premium support increased, but coffee taste expectations worsened. Practical implications – Promoting fair trade coffee can help distinguish and position cafés, but not as much as was expected. Customer beliefs about the provision of fair trade products appear to have a stronger influence on their choices than actuality. Originality/value – The paper contributes to understanding customer motives for purchasing fair trade coffee, particularly in the context of cafés/coffee houses, and for their patronage. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Consumer Marketing Emerald Publishing

Fairly sold? Adding value with fair trade coffee in cafes

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References (44)

Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
0736-3761
DOI
10.1108/07363761111181491
Publisher site
See Article on Publisher Site

Abstract

Purpose – The presence of fair trade coffee in cafés may help in strategic positioning and market differentiation. This paper aims to explore the extent to which this is evident for café customers. Design/methodology/approach – Customers were surveyed on their perceptions of café and coffee attributes including taste, price and store atmosphere. Respondents were analysed by knowledge of the concept of fair trade, and by frequency and place of purchase. Findings – The study finds that nearly half of respondents claimed moderate self‐assessed knowledge, although objective knowledge was lower. More knowledgeable customers cared more for fair trade products and for café atmosphere, of which fair trade promotional material plays a part. Customers stated they expected to pay more for fair trade coffee, although on average not as much as current margins require. When exposed to more information about fair trade, stated price premium support increased, but coffee taste expectations worsened. Practical implications – Promoting fair trade coffee can help distinguish and position cafés, but not as much as was expected. Customer beliefs about the provision of fair trade products appear to have a stronger influence on their choices than actuality. Originality/value – The paper contributes to understanding customer motives for purchasing fair trade coffee, particularly in the context of cafés/coffee houses, and for their patronage.

Journal

Journal of Consumer MarketingEmerald Publishing

Published: Nov 1, 2011

Keywords: Fair trade; Coffee; Cafe; Atmosphere; Consumer knowledge; New Zealand; Individual perception

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