The Effect of Fair Trade on Consumer Behavior: In Terms of Ethical Consumerism

Fair Trade has experienced increased popularity due to rising numbers of socially concerned consumers. This study intends to gain insights into the drives to the growth of Fair Trade as well as to evaluate its future potential in South Korean market. The purchase intention of Korean consumers on Fair Trade products and their level of ethical consumerism were measured. A sample of 564 randomly selected participants was asked to complete a survey. The study presented empirical evidence that consumers’ level of ethical consumerism had a significant effect on the purchase intention for Fair Trade products, and strong purchase intention leads to positive effects on repurchase intention, brand loyalty, and brand commitment. This study adds to understanding of the emerging market to enhance further development of Fair Trade and to open up new possibilities in production of goods and services.