How Millennials’ Knowledge, Trust, and Product Involvement Affect the Willingness to Pay a Premium Price for Fairtrade Products?

DOI 10.14707/ajbr.190062

Hasan Aksoy
Department of International Trade and Logistics, Gaziantep University, Turkey
Ceren Özsönmez
Department of International Trade and Logistics, Gaziantep University, Turkey

Abstract
This study provides, through a survey of 200 Millennials, an empirical analysis of the influences of Fairtrade (FT) knowledge, trust in FT and product involvement on the willingness to pay (WTP) a premium for Fairtrade products. The objectives of this study were to examine the factors influencing the Millennials‟ willingness to pay a premium price for Fairtrade products. To succeed in these objectives, this paper improved on the model of Millennials’ willingness to pay a premium for Fairtrade products. Based on the questionnaires from Turkey, the model was confirmed by the structural equity model.

The results demonstrate that FT knowledge is the basis of antecedent trust and product involvement. The findings indicate that there is not a significant relationship between FT knowledge and WTP. It was further revealed that a willingness to pay a premium for Fairtrade products was positively affected by the trust in FT and product involvement. Besides, it may be inferred that the trust in the Fairtrade movement influences consumer‟s product involvement. The findings of the study have significant implications for the development of the consumption of Fairtrade products and understanding the perception by Millenials of Fairtrade products.

Keywords: Fairtrade, Product Involvement, Willingness to Pay a Premium, Trust in Fairtrade

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