Brand personality as moderator for fair trade
label and the willingness to pay
Anouk Spekking
University of Amsterdam
Bachelor Thesis
Author: Anouk Spekking (10580417) Institution: University of Amsterdam Supervisor: Tina Dudenhöffer
Date: 29 June 2016
Statement of Originality
This document is written by Anouk Spekking who declares full responsibility for the contents of this document. I declare that the text and the work presented in this document is original and that no sources other than those mentioned in the text and its references have been used in creating it. The faculty of Economics and Business is responsible solely for the supervision of completion of the work, not for the contents.
Table of Content
Abstract 5
1. Introduction 6
2. Literature Review 8
2.1. Fair-trade label enhances the willingness to pay 8
2.2. Brand personality serves as moderator for Fair-trade label and willingness to pay 9
2.3. Conceptual Model 11
3. Method 12
3.1. Design and Sample 12
3.2. Measures 13
3.2.1. Moderating variable: Brand Excitement and Brand Sophistication 13
3.2.2. Dependent variable: Willingness to pay 14
3.2.3. Independent variable: Fair Trade label 14
3.3. Procedures 15 3.3.1. Pre-test 15 3.3.2. Experiment 15 3.4. Analysis 15 3.5. Expectations 16 4. Results 17 4.1. Participants 17
4.2. Reliabilities and Correlations 18
4.3. Testing the hypothesis 20
4.3.1. ANOVA analysis 20
4.3.2. Cluster analysis 21
5. Discussion 24
5.2. Limitations and future research 25
5.3. Practical Implications 27 6. Conclusion 28 7. References 29 8. Appendix 31 8.1. Appendix A: Pre-test 31 8.2. Appendix B: Experiment 34
Abstract
Previous studies have proven that there is a positive effect between Fair Trade label and the
willingness to pay (De Pelsmacker, Driesen & Rayp, 2005). This study investigates whether having a brand personality, developed by Aaker (1997), as a chocolate bar brand has a positive moderating effect on the relationship between a Fair Trade label and the willingness to pay. The brand
personalities used in this research were Brand Excitement and Brand Sophistication, as these relate to Brand Affect. First, a pre-test was conducted to measure whether the created chocolate bar brands were associated with the personality traits (N = 42). Later, the willingness to pay for the two
chocolate brands was tested with and without Fair Trade label displayed on the packaging (N = 159). The results indicated that consumers are willing to pay more for a chocolate brand with a Fair Trade label when the brand personality is Excitement. However, unexpectedly, consumers are not willing to pay more for a chocolate bar with Fair Trade label when the personality is Sophistication.
1. Introduction
Picture this: you’re standing in the supermarket in the aisle of chocolate bars and you have two different chocolate bars in your hand. Both chocolate bars have the same packaging, only the one in your right hand has the words ‘Fair Trade’ written on it. Which one would you choose? Research revealed that products labelled with the words ‘Fair Trade’ can promote the misperception that foods are lower-calorie and thus are perceived as a healthier option (Schuldt, Muller & Schwarz, 2012). According to Schuldt et al. (2012), ethical words as ‘Fair Trade’ can bias consumers to see the poor-nutrition food products in a healthier light. Consumers make a decision to buy Fair Trade products only by looking at the package and seeing the Fair Trade label. A large portion of the public is unaware of Fair Trade issues, however, the importance of purchasing policy and producer welfare for the corporate image of multinational manufacturers and the major multiples is growing (Connolly & Shaw, 2006).
The knowledge and attitudes consumers have associated with products have a considerable effect on the buying behavior of consumers. It can affect perceived quantity and quality of Fair Trade information and also have a significant effect on buying behavior (De Pelsmacker & Janssens, 2007). Research has also shown that consumers are willing to pay more for a Fair Trade product than a non- Fair Trade product (Rousu & Corrigan, 2008; Cranfield, Henson, Northey & Masakure, 2010). However, research has also shown that to increase the willingness to pay, consumers must receive more information about the performance of a brand’s Fair Trade programme (Basu & Hicks, 2008). The Fair Trade label on the product also influences the behavior of the consumer. Connolly and Shaw (2008) show that while many consumers act in a rational self-motivated manner to select, in their case, coffee on the basis of factors as price and taste, the consumers who were concerned with ethical issues may be guided by a sense of obligation to others and identification with ethical issues.
Moreover, Adams and Raisborough (2010) found that many consumers show a commitment to act as a morally good person by purchasing Fair Trade products. A lot of research has been conducted on the subjects why consumers buy Fair Trade products and how much more they would spend on Fair Trade products. However, there hasn’t been done enough research to examine whether the Fair Trade
label or stamp increases the preference of the consumer towards those Fair Trade products and thus the willingness to pay. The preference of a consumer towards a product is dependent on many different factors that may be related to the product itself, the consumer or the consumer’s environment. Also, the taste of the food product and the visual appearance of its packaging are powerful influences on the consumer’s acceptability or preference (Murray & Delahunty, 2000).
As mentioned above, the personality of a consumer can be an influence on purchasing
behavior. According to Aaker (1997), the greater the congruity between the human characteristics that describe an individual’s actual or ideal self and those that describe a brand, the greater the preference for that brand. Blackwell (2001) defines preferences as attitudes towards one object in relation to another. Preferences can be transformed into a specific behavior. Brands can contain specific characteristics, which can be associated with the human characteristics. This can be defined as brand personality (Aaker, 1997). In the study of Aaker (1997) five distinct personality dimensions were found: Sincerity (down-to-earth, honest, cheerful), Excitement (Daring, Imaginative, up-to date), Competence (Reliable, Intelligent, Successful), Sophistication (Upper class, Charming) and
Ruggedness (Outdoorsy, Tough). In previous studies it has been researched which dimensions relate more to brand trust and which relate more to brand affect. Brand trust can be defined as a key variable in the exchange network between a company and its various partners because the variables encourage the company to invest in a long-term relationship. Brand affect refers to a brand’s potential to elicit a positive emotional response in the average consumer as a result of its use. The findings suggest that the dimensions Sincerity and Ruggedness are more likely to influence brand trust than brand affect, whereas Excitement and Sophistication dimensions relate more to brand affect than brand trust (Sung & Kim, 2010). Because Fair Trade products attempt to address the emotional, social and ethical issues, two dimensions relating to brand affect are chosen to examine in this study. Thus, in this study Brand Excitement and Brand Sophistication are researched.
It is mentioned that a Fair Trade label can affect the consumer preference and thus the willingness to pay. Also, brand personality can influence the preference of the brand because of certain personality characteristics the consumer has. However, it is not yet researched whether the
brand personalities, which are related to brand affect, have an influence on the relationship between a Fair Trade label and consumer preference. Thus, this study examines to what extent brand
personalities Excitement and Sophistication can influence the relationship between the Fair Trade label and consumer preference and if those personalities can enhance the consumer preference. The corresponding research question is: To what extent can Brand Excitement and Brand Sophistication positively moderate the relationship between Fair Trade label and consumer preference.
2. Literature review
This chapter will show the content of the current literature on the subjects of Fair Trade, the
willingness to pay and the different brand personality dimensions. Firstly, the concept of Fair Trade label and the willingness to pay will be discussed and evaluated. Secondly, the concept of brand personality dimensions will be elaborated and will be compared to the existing literature of the relationship between Fair Trade label and the willingness to pay. The chapter ends with a graphical illustration of the hypotheses that will be analyzed and interpreted in the following chapters.
2.1 Fair Trade label enhances the willingness to pay
Public awareness of the human, ecological and environmental cost of consumption has increased over the past few decades. Consumers can improve this matter by committing to make ‘responsible’ consumer choices. Participating in ethical consumption can do this. Bartnett, Cloke, Clarke and Malpass defined this in a broadly manner: ‘any practice of consumption in which explicitly registering commitment to distant or absent others in an important dimension of the meaning of activity of the actors involved’ (2005, p. 29). It is also defined as purchasing decisions that are made with consideration for moral dimensions of how products are produced (Arnot, Boxall & Cash, 2006).
Nowadays, the ethical consumption is a growth market (Adams & Raisborough, 2010). Moreover, Fair Trade products represent a large and growing market. Fair trading refers to alternative trading regimes to help farmers in developing countries by guaranteeing producers a “fair” price for their products. Often, these products are certified by international bodies who act as regulators for
both importers and producers (Arnot et al., 2006). Farmers work under healthy and safe working conditions and use sustainable and environmentally friendly production methods (Basu & Hicks, 2008). Since the introduction of the Fair Trade labels, customer awareness has increased regarding production methods and a lot of research has been done regarding the willingness to pay for products with a Fair Trade label. According to Basu and Hicks’ study (2008) consumers’ willingness to pay for labeled products depends on several factors: the credibility of the label itself, the type of product in question, consumer heterogeneity (age, gender, education and income) and quality of the labeled product. Research has shown that consumers have more willingness to pay for a Fair Trade product than a non-Fair Trade product (Rousu & Corrigan, 2008; Cranfield et al., 2010, De Pelsmacker, Driesen & Rayp, 2005). Moreover, organic and Fair Trade labels increase consumers’ willingness to pay (Didier & Lucie, 2008). However, research has also shown that to increase the willingness to pay, consumers must receive more information about the Fair Trade programme’s performance of a brand (Basu & Hicks, 2008, De Pelsmacker, Janssens, Sterckx & Mielants, 2005). It is also stated that the Fair Trade label influences the perceived quantity and quality of the Fair Trade product and thus influencing the buying behavior of the consumer (De Pelsmacker & Janssens, 2006).
2.2 Brand personality serves as moderator for Fair-trade label and willingness to pay Consumers could perceive a similarity between their ideal and/or actual selves and that of the brand. This is due to the fact that consumers perceive brands as having personality traits (Azoulay & Kapferer, 2003). Aaker (1997) defines this as the term brand personality: the set of human
characteristics associated with a brand. Consumers can think about brands as they relate to one’s own self and previous research suggested that the greater the congruity between the human characteristics that consistently and distinctively describe the consumer’s actual or ideal self, the greater the
preference for the brand. Personality traits associated with brands can be direct and indirect. Examples of direct sources are the set of human characteristics associated with typical brand users, company, employees, corporate CEOs and brand endorsers (Wang & Yang, 2008). Indirect sources are perceived through product-related attributes, product category associations, brand name, symbol,
logo, advertising style, price and distribution channel (Batra, Rajeev, Lehmann & Singh, 1993). Aaker (1997) developed a brand personality scale, categorizing 114 human personality traits into 5 brand personalities: Sincerity (down-to-earth, honest, cheerful), Excitement (Daring, Imaginaitive, up-to date), Competence (Reliable, Intelligent, Successful), Sophistication (Upper class, Charming) and Ruggedness (Outdoorsy, Tough).
In prior literature, consumers who are involved to Fair Trade issues and are portrayed as ‘concerned consumers’ are named various terms. Commonly used terms are ‘green consumer’, ‘ethical consumer’ and ‘voluntary simplicity’. The ‘ethical consumer’ refers to buyer behavior that reflects a concern with the problems of the Third World, where producers are poorly paid and must survive in poor conditions to produce cheap products for western consumers and profits of multinational companies. Connolly and Shaw (2006) show that while many consumers act in a rational self-motivated manner to select, in their case, coffee on the basis of factors as price and taste, whereas the consumers who were concerned with ethical issues may be guided by a sense of obligation to others and identification with ethical issues. The Fair Trade labels are a symbol required for self and social identity
communication. Moreover, Adams and Raisborough (2010) show that many consumers have a commitment to ‘being good’ and making a difference through their shopping decisions. As mentioned earlier, the greater the congruity between the personality traits of the consumer and the brand, the greater the preference for the brand (Aaker, 1997). Thus it can be concluded that the more
congruence with the personality of the consumer and the brand personality, the more the preference of the brand and therefore willingness to pay. The brand personalities of Fair Trade products must therefore be similar to the personalities of the ethical consumers. Sung and Kim (2010) divided the five brand personality dimensions into two categories: Brand Trust and Brand Affect. Brand Trust can be defined as a key variable in the exchange network between a company and its various partners because the variables encourage the company to invest in a long-term relationship. Brand Affect refers to a brand’s potential to elicit a positive emotional response in the average consumer as a result of its use. Sincerity and Ruggedness are more likely to influence the level of Brand Trust than brand affect while Excitement and Sophistication relate more to Brand Affect than Brant Trust. As this
study is focused on Fair Trade labeling, where emotional, social and ethical issues are tackled, it is chosen to select the two brand personality dimensions that relate more to Brand Affect: Brand
Excitement and Brand Sophistication. The representation of the brand personalities as Excitement and Sophistication can be largely influenced by the affective characteristic or personality of the brand (Sung & Kim, 2010). The personality traits of the consumer do not have to be affective, only the response has to be affective.
2.3 Main hypotheses and Conceptual Model
Based on previous literature, this study aims to analyze the moderating effect of brand personality dimensions Excitement and Sophistication on the relationship between Fair Trade label and the willingness to pay. With the help of the following hypotheses, this will be tested.
H1. Fair Trade labels have a positive effect on the consumers’ willingness to pay H2. Brand Excitement has a positive moderating effect on the relationship between Fair
Trade label and willingness to pay
H3. Brand Sophistication has a positive moderating effect on the relationship between Fair Trade label and willingness to pay
To summarize the variables and hypothesis in this study, a conceptual framework is created (Figure
1). In this framework it is clearly shown that there are four variables in total, one dependent variable; willingness to pay, one independent variable; Fair Trade label, and two moderating variables; Brand Excitement and Brand Sophistication. These moderating variables are two of the five brand
personality dimensions (Aaker, 1997). All variables show their corresponding hypothesis and whether the relation to the dependent variable is positive or negative. Hypothesis 2 and 3 show a moderating effect on the relationship between the independent and dependent variable.
3. Method
This chapter illustrates the empirical part of the study. Firstly, the design and the sample of the conducted pre-test and experiment will be explained. Further, the measures of the variables will be elaborated and afterwards the procedure of the pre-test and the experiment will be outlined. Finally, the method of analysis of the questionnaires and the expectations will be discussed.
3.1 Design and Sample
The data in this study was gathered with the use of a cross-sectional questionnaire. The questionnaire is divided into a pre-test and an experiment. In the pre-test, two chocolate brands were created, which were tested on the two brand personality dimensions Brand Excitement and Brand Sophistication. Respondents of the pre-test were gathered with the use of personal contacts and through the course of two days, 42 respondents were gathered. The experiment, measuring the independent and moderating variables related to the dependent variable, was conducted four days after the pre-test. With the use of personal contact and social media groups, 159 respondents were gathered.
1.2 Measures
First, the measures for the moderating variable will be discussed because the brand personalities ‘Excitement’ and ‘Sophistication’ were tested before any other variable in the pre-test. Further, the measures of the dependent and independent variable will be discussed.
3.2.1 Moderating variable: Brand Excitement and Brand Sophistication
The pre-test was conducted to test whether chocolate bars can be seen as a brand with the
personalities Excitement and Sophistication. Two different chocolate bar packages were created. The ‘Brand Excitement chocolate bar resembled the Dutch chocolate brand Tony’s Chocolonely, named
Johnny Chocolate. The ‘Brand Sophistication’ chocolate bar was inspired by the chocolate brand Côte D’or, named Noblesse, which is translated to nobility in English. Both packages were created with
and without Fair Trade label displayed on the bar (See Appendix A1, Figure 2-5). However, the chocolate bar packages used in the pre-test were without Fair Trade label to prevent biases towards Fair Trade and the brand personalities. Each chocolate bar packaging was displayed with the corresponding question “To what extent do you associate this chocolate bar packaging design with
the following trait…”. Personality traits corresponding Brand Excitement and Brand Sophistication
were gathered from previous research (Aaker, 1997). Brand Excitement personality traits asked in the survey were as followed: daring, trendy, exciting, spirited, cool, young, imaginative, unique, up-to-date, independent and contemporary. For Brand Sophistication, the personality traits used were upper-class, glamorous, good looking, charming, feminine and smooth. Respondents were asked to indicate the association with these personality traits on a 5-point Likert scale, where 1 refers to ‘Strongly Disagree’ and 5 to ‘Strongly Agree’.
In the experiment, the same chocolate bar packages were used to indicate the respondents’ willingness to pay (see Dependent variable: willingness to pay for further information).
3.2.2 Dependent variable: Willingness to pay
The willingness to pay variable was introduced in the experiment. This variable was measured with a two-item question in the survey. As mentioned above, the chocolate bars used as Brand Excitement and Brand Sophistication were created with and without Fair Trade label on the
packaging. In the survey, it was randomized which respondents received the question with and which without the chocolate bar with Fair Trade label on it. The respondents who got the chocolate bar without Fair Trade label were the control group. The questions for both groups were however the same. The two chocolate bars were displayed sequentially with the corresponding question “How
much are you willing to pay for this chocolate bar?”, accompanied with a drop down menu with
prices ranged from €1,70-€2,10 to €3,70-€4,10. Every option was a price range of 40 cents. The respondents were asked to select one of the price ranges.
3.2.3. Independent variable: Fair trade label
To measure whether consumers are willing to pay more for a product with a Fair Trade label on it, the first part of the survey was already mentioned above (see dependent variable: Willingness to pay). Besides the willingness to pay for chocolate bars with a Fair Trade label on it, the second part of the survey consisted of 9 statements about the values and beliefs of Fair Trade in general. E.g. “I would
refrain from buying products if I were not sure whether growers and workers were fairly paid”.
Respondents were asked to what extent they identify themselves with the 9 statements with a 5-point Likert scale ranging from (1) ‘Strongly Disagree’ to (5) ‘Strongly Agree’. 4 of the 9 questions were deducted from previous research (Tanner et al., 2003). A higher score indicates that respondents are more concerned with Fair Trade issues.
3.3 Procedures
3.3.1 Pre-test
The respondents of the pre-test were approached via e-mail, Facebook and Whatsapp, sending them the link to the survey to be filled out electronically. Respondents were able to answer the survey on computer, tablet or mobile device. This method was chosen because it was a quick way to gather many respondents. Also, the respondents were asked to send the link of the survey out to a couple more persons who were willing to help. The data of the pre-test was collected within the course of two days. The survey was created with Qualtrics, an online survey site (See Appendix A2)
3.3.2. Experiment
The respondents of the experiment were approached, as in the pre-test, via e-mail, Facebook and Whatsapp. Like before, the respondents were able to fill out the survey on their computer, tablet or mobile device. With the help of Qualtrics, an online survey site, there was the ability to randomize questions for the respondents. Some respondents got a question with the chocolate bar with the Fair Trade label, and some without Fair Trade label. As for the explanation as introduction of the survey, this stated that the survey was about chocolate bar packaging design, and didn’t mention the fact that there would be questions regarding Fair Trade values and beliefs, nor the willingness to pay for Fair Trade chocolate bars. This was chosen to prevent any bias towards Fair Trade products.
3.4 Analysis
The data was tested in a model based on one-way ANOVA analysis. This is a technique that
generalizes the two-sample t-test to three or more samples (Heiberger, 2009). It results in differences between and within groups between means, and whether those are significantly different from one another. As dependent variable, all four different chocolate bars’ willingness to pay were used and several independent variables were used to test whether the independent variables had a significant effect on the dependent variables. Further in the analysis, several clusters were made to test for preferences and values. Three clusters were used in the analysis. First, all cases were analyzed.
Second, only the respondents who generally consumed chocolate were analyzed. This was done by creating a filter on SPSS Statistics that allowed the software to only select cases that answered ‘yes’ on the question whether they generally consumed chocolate. Third, a cluster was created for the respondents who had high values regarding Fair Trade issues. As mentioned above, 9 statements were asked to the respondents about the Fair Trade issues and respondents could answer in a 5 point Likert scale, where (1) stands for ‘Strongly Disagree’ and (5) for ‘Strongly Agree’. In the ‘high values cluster’, only the cases were selected with answers 3, 4 and 5. This was done by the same selecting method as the previous cluster, only this time the software only was allowed to select the cases that answered 3 or higher on all of the 9 statements.
3.5 Expectations
According to the theory and the hypotheses, the expectations of the study are as followed. For the pre-test, it is expected that each chocolate bar packaging is associated with the personalities
corresponding to Brand Excitement and Brand Sophistication. As for the experiment, products with a Fair Trade label have a positive effect on willingness to pay. This means that consumers are willing to pay more for products with a Fair Trade label, than with no Fair Trade label. Further, a positive interaction effect is expected of the independent variable Fair Trade label and the moderating variable Brand Excitement and Brand Sophistication. This means that having a Brand personality like
Excitement and/or Sophistication strengthens the fact that consumers are willing to pay more if a product has a Fair Trade label.
4. Results
In this section, the results of the hypotheses will be illustrated. First, this will be done by giving an overview of the participants that were used in the pre-test and the experiment. Further, the reliabilities and correlations of the variables will be outlined and evaluated. Finally, the hypotheses of this study will be tested and assessed, which consists of an ANOVA analysis and cluster analysis.
4.1 Participants
The number of respondents of the pre-test consisted eventually of 34 respondents, where 28 responses were valid responses, which are used in the analyses. This is due to implications with the online survey site Qualtrics, not every respondent was able to answer all the questions. No demographics were asked in the pre-test. Data in the experiment consisted of (N = 155, 62,3% female) respondents. The age of the respondents varied between 15 and 65 (M = 27, SD = 13). The majority of the
respondents completed university as the highest level of education (cumulative 43,8%), which was followed by the completion of HAVO/VWO as highest level of education (33,6%). Most respondents earn an annual salary varied between €0 and €10.000 (61,0%). The reason for this is that probably most respondents were still students, as the majority of the respondents were in the early twenties (53,2% age 20-25). Most of the respondents generally consumed chocolate (N = 140) and the larger part consumed chocolate a couple of times a week (26,5%). In the experiment, (N = 80, 60,5% female) respondents filled out the Non Fair Trade questions and (N = 74, 64,5% female) respondents answered the Fair Trade questions. There isn’t a significant age difference between the two groups. However, the difference between education levels is notable. 39,5% of the Non Fair trade respondents completed university, whereas 48,6% of the Fair Trade respondents completed university. Moreover, the largest group of annual income €0 – €10.000 differs with almost 2 per cent (NonFT: 61,8%, FT: 60%).
4.2 Reliability and correlations
In Table 1 the means, the standard deviations and the reliabilities of all variables of the pre-test are presented. The reliability of the personality Brand Excitement (α = .78) and Brand Sophistication (α = .64) were satisfactory. Table 1 also contains the relevant correlations between the personality traits per brand personality. Almost all personality traits were in line with the expectations (M ≥ 3). The two personality traits Glamorous (M = 2,9, SD = 0,89) and Feminine (M = 2.45, SD = 0,83) associated with Brand Sophistication were however not as expected. Nevertheless, the other four personality traits are, according to the results, associated with the personality Sophistication and thus the chocolate bar will be used in the experiment. To conclude, both chocolate bars have a satisfactory reliability, which means that the chocolate bars will be used in the experiment. Johnny Chocolate as Brand Excitement and Noblesse as Brand Sophistication.
In Table 2, the means, standard deviations and reliabilities of the experiment are presented. The reliabilities of Non Fair Trade (α = .422) and Fair Trade (α = .535) are both non-satisfactory. However, the questions are not debatable for deletion because they are the fundament of this study. As for the correlations between the variables, these are both significantly correlated. The Non Fair Trade chocolate bars are significantly correlated, r (80) = .267, p = .016 and Fair Trade chocolate bars with r (74) = .366, p = .001.
Table 1: Descriptives and correlations between variables (Cronbach's Alpha on diagonal) M SD 1 1a 1b 1c 1d 1e 1f 1g 1h 1i 1j 1k 2 2a 2b 2c 2d 2e 1 Brand Excitement 3.78 .89 (.78) a Daring 3.61 .92 b Trendy 4.18 .61 .20 c Exciting 4.04 1.00 .26 .11 d Spirited 3.74 .86 .01 .17 .58** e Cool 3.79 .83 .42* .22 .10 .24 f Young 3.96 1.04 -.21 .36 -.04 .38 .42* g Imaginative 3.96 .79 .29 .24 .52** .37 .27 .09 h Unique 3.64 .99 .33 .29 .46* .42* .08 .02 .55** i Up-to-date 3.57 .88 .38* .35 .19 .10 .33 .15 .24 .37 j Independent 3.54 .96 .37* -.11 .25 .26 .33 -.09 .46* .44 .33 k Contemporary 3.54 .92 .17 .61** -.06 .14 .35 .447* -.02 .30 .13 .04 2 Brand Sophistication 3.17 .47 (.64) a Upper-class 4.1 .61 .35 .12 .19 -.14 .00 -.12 .25 .49* .49* .26 -.05 b Glamorous 2.9 .89 -.15 -.35 -.09 -.19 .03 .12 -.11 -.30 -.35 .19 -.04 -.05 c Good-looking 3.17 1.09 -.50* -.42* .18 .05 -.39 -.24 .05 -.06 -.47* -.10 -.21 -.24 .34 d Charming 3.03 .87 -.37 -.19 .11 .04 .03 .35 .07 -.12 -.13 -.17 -.15 -.01 .24 .44* e Feminine 2.45 .83 -.21 -.23 .05 .17 -.07 .01 -.20 -.13 -.39 -.27 .15 -.30 .09 .50** .48** f Smooth 3.38 .94 .05 .08 .34 .35 .09 .20 .13 .22 -.16 -.05 -.02 -.01 .15 .35 .42* .51** Note: N = 28 *p<.05, ** p<.01
Table 2: Descriptives and correlations between variables (Cronbach’s Alpha on diagonal)
4.3 Testing the hypothesis 4.3.1. ANOVA analysis
To test the hypotheses, several different computations of One-Way ANOVA were conducted. First, a one-way between subjects ANOVA was conducted to compare the effect of generally eating
chocolate on the willingness to pay for the various chocolate bars. There was found a difference in the case of the chocolate bar Noblesse Fair Trade, however this was not significant (p = .261). Other variables tested to compare the effect on willingness to pay were age, gender, income, education, respondents with high Fair Trade values (All values ≥ 3) and respondents with low Fair Trade values (All values ≤ 3). Both age and income were given differences in all chocolate bars, however not significant. As for gender, there was found a significant effect of gender on the Johnny Chocolate Non Fair Trade chocolate bar (p = .009) and on Johnny Chocolate Fair Trade (p = .046). Moreover, there was a significant effect of education on Noblesse Non Fair Trade (p = .049), however the effect of education on Johnny Chocolate Non Fair Trade was not significant (p = .124). The effect of the respondents having a higher values regarding to Fair Trade issues were significant on Johnny Chocolate Fair Trade (p = .045). The effects found for respondents having low values were all not significant.
Taking together, these results suggest that gender and having high values regarding Fair Trade issues have an effect on the willingness to pay for Johnny Chocolate Fair Trade. Moreover, gender also has an effect on the willingness to pay for Johnny Chocolate Non Fair Trade. Also, education has
M SD 1 1a 1b 2 2a 2b
1 Non Fair Trade 2.22 1.085 (.422)
a Johnny Non FT 2.14 1.064
b Noblesse Non FT 2.29 1.105 .267*
2 Fair Trade 2.26 1.008 (.535)
a Johnny FT 2.42 1.047
b Noblesse FT 2.09 .968 .366**
an effect on the willingness to pay for Noblesse Non Fair Trade. Translating the chocolate bars into the brand personalities for which they were created; gender and people with high values on Fair Trade issues have an effect on Brand Excitement chocolate bars with Fair Trade label on it. As for the control group, the non – Fair Trade chocolate bars, gender and education have an effect on both Brand Excitement and Brand Sophistication. As mentioned above, the Fair Trade labels only have an effect once the brand personality Excitement is involved, this means that Hypothesis 1 is partly supported by the results of this study. The Fair Trade label has a positive on willingness to pay, only when Brand Excitement is the personality of the chocolate bar.
4.3.2 Cluster analysis
Besides the one-way ANOVA, results of values of Fair Trade issues were compared to several customer clusters. Three types of clusters were analyzed: all cases, people with high values on Fair Trade issues and people who generally consume chocolate. Moreover, these scores were
compared to the willingness to pay for chocolate bar types (See Table 4). Of all the respondents, people were agreeing on the fact that buying Fair Trade products contributes to a better world (M = 3.98). Generally speaking, all respondents were consciously aware of Fair Trade issues and
contributing to help (M = 3.34). Taking all respondents and clustering them into a group who value Fair Trade issues more than average (all scores ≥ 3) sums up to 26 respondents (M = 3.88). As for the third group, people who generally consume chocolate (N = 136), the average scores of all Fair Trade values are very similar to all the respondents (M = 3.35). However, all scores are a bit higher than the responses of all cases.
By comparing the clusters to the willingness to pay for the chocolate bar types, it can be concluded that, for all cases, the respondents are willing to pay more for Johnny Chocolate with a Fair Trade label on it (M = 2.42, SD = 1.05) than without (M = 2.14, SD = 1.06). Thus all respondents were willing to pay more for a chocolate bar with the brand personality Excitement including a Fair Trade label on it, than without. Therefore, Brand Excitement has a positive moderating effect on the relationship between Fair Trade label and the willingness to pay. This means Hypothesis 2 is
supported. The other clusters can support these results as well. People with high Fair Trade values are willing to pay more for Johnny Chocolate with a Fair Trade label on it (M = 3, SD = 1.41) than without Fair Trade label (M = 2.24, SD = 0.97). Also, people who generally consume chocolate are willing to pay more for the Brand Excitement chocolate bar with Fair Trade label (M = 2.41, SD = 1.05), than without Fair Trade label (M = 2.13, SD = 1.03). Comparing the two Noblesse chocolate bars, it can be seen that respondents are not willing to pay more for a chocolate bar once it has a Fair Trade label on the packaging (Noblesse Non Fair Trade: M = 2.29, SD = 1.11; Noblesse Fair Trade:
M = 2.09, SD = 0.97). Thus, the brand personality Sophistication does not have a positive moderating
effect on the relationship between Fair Trade label and the willingness to pay. Therefore it can be concluded that Hypothesis 3 is not supported. The other clusters can also support these results. Respondents with high Fair Trade values are not willing to pay more for Noblesse with Fair Trade label on it (M = 2, SD = 1), than without (M = 2.65, SD = 1.27). Also, respondents who generally consume chocolate wouldn’t spend more on a Brand Sophistication chocolate bar with Fair Trade label (M = 2.13, SD = 0.95), than without (M = 2.32, SD = 1.11).
As mentioned above, the Fair Trade labels only have an effect once the brand personality Excitement is involved, this means that Hypothesis 1 is partly supported by the results of this study. The Fair Trade label has a positive on willingness to pay, only when Brand Excitement is the personality of the chocolate bar.
Note. All cases N = 149, NonFT & FT (N =80; N= 74) All values ≥ 3 N = 26, NonFT & FT (N = 17; N = 9) Cases generally consuming chocolate N = 136, NonFT & FT (N = 72; N = 68).
Table 3: Descriptives of Willingness to pay and Values of All cases, All values ≥ 3 and Cases who generally consume chocolate
All cases All values ≥ 3
Cases generally consuming
chocolate
M SD M SD M SD
Willingness to pay
Johnny Chocolate Non Fair Trade 2.14 1.06 2.24 0.97 2.13 1.03
Noblesse Non Fair Trade 2.29 1.11 2.65 1.27 2.32 1.11
Johnny Chocolate Fair Trade 2.42 1.05 3 1.41 2.41 1.05
Noblesse Fair Trade 2.09 0.97 2 1 2.13 0.95
Values
Solidarity with third-world countries is important to me 3.73 0.80 4.12 0.52 3.72 0.82 I would refrain from buying products if I were not sure
whether growers and workers were fairly paid 2.71 0.90 3.5 0.58 2.71 0.92
When buying chocolate. I pay attention to fair trade
labels (e.g. Max Havelaar) 2.95 1.02 3.81 0.63 2.96 1.01
I would be willing to pay a higher price to support small
growers from third-world countries 3.82 0.78 4.04 0.60 3.81 0.78
When buying clothes. I pay attention to where the
clothes are manufactured 2.36 1.01 3.46 0.58 2.39 1.03
I feel I’m doing something good when buying Fair Trade
products 3.76 0.74 4.08 0.48 3.8 0.69
When Fair Trade products are more promoted (e.g. commercials. actions. distinctive places in shop). I
would buy more Fair Trade products 3.47 0.98 3.96 0.60 3.52 0.97
Buying Fair Trade products contributes to a better world 3.98 0.66 4.31 0.55 4.03 0.55 I buy Fair Trade products because of the quality of the
product 3.27 0.86 3.65 0.63 3.25 0.83
5. Discussion
In this final chapter, the results will be discussed and evaluated considering their practical
implications. Also, the limitations of the research will be outlined and suggestions for further research will be given.
5.1 Summary, hypotheses and unexpected results
The main goal of this study was to prove that brand personalities Excitement and Sophistication have an influence on the relationship between Fair Trade label and the willingness to pay for chocolate bars. Therefore were 3 different hypotheses stated: Fair trade label has a positive effect on willingness to pay, Brand Excitement has a positive moderating effect on the relationship between Fair Trade label and the willingness to pay and Brand Sophistication has a positive moderating effect on the relationship between Fair Trade label and the willingness to pay.
The most important contribution that the study has is that brand personalities can be used more actively to create consumer consciousness of Fair Trade issues and thus contribute to a better, fairer wage for the producers of Fair Trade products. The findings of the study are that the Fair Trade label partly has a positive effect on the willingness to buy. The condition is that the brand personality Excitement must be used to create this positive effect. Therefore, we can conclude that Hypotheses 2 is supported: Brand Excitement has a positive moderating effect on the relationship between Fair Trade label and the willingness to pay. Unexpectedly, there were no results that indicated that Brand Sophistication also has a positive moderating effect on the relationship between Fair Trade label and the willingness to pay. Thus, Hypothesis 3 is not supported. A possible explanation for this result can be that the personality traits associated with Sophistication were not all correlated with the brand packaging. As the results indicated, the personality traits Glamorous and Feminine were not associated with the chocolate bar packaging.
5.2 Limitations and Future Research
For this study, certain limitations of the study could have resulted in unexpected findings. First, as mentioned above, there were two personality traits that were not evidently associated with the personality Brand Sophistication. The chocolate bar packaging could be modified for a better fit with the Sophistication brand personality trait before it could be used in the experiment. Making the packaging more Glamorous and more Feminine could result in supporting the third hypothesis after all.
A more obvious limitation of this research is the group of participants. In the pre-test, only 42 respondents participated and 159 respondents filled out the experiment. With more participants, the power of the statistical tests will be stronger, which could yield stronger implications for the hypotheses.
Furthermore, the respondents who participated in the pre-test and the experiment were all residing in the Netherlands. This impairs the external validity of the research. It’s a possibility that the respondents, while residing in the Netherlands, are more informed of the Fair Trade issues and see more Fair Trade products in the supermarket, which is not the case in all countries and therefore not generalizable.
Additionally, another limitation that comes along with the chosen design of research is the fact that it is cross-sectional. This indicates that the study is done in one point in time and does not analyze certain trends or variations over time. For the case of Fair Trade chocolate, it is a possibility that in the coming years a lot more brands will advocate for fair trading, as Adams and Raisborough (2010) mentioned that ethical consumption is a growth market.
Moreover, the majority of the respondents (53.2%) were in their early twenties (20-25 years old), currently studying and 61,0% earned €0-€10.000 as an annual salary. These demographics of the respondents could be the cause that the respondents weren’t willing to pay more for the chocolate bar brands. Students earn a lot less money and are maybe therefore less willing to pay more for chocolate bars, whether or not the Fair Trade label is presented. If the sample of respondents was more varied in age and annual salary, it could yield in stronger implications for the hypotheses.
Another limitation refers to the type of Fair Trade products that were used in this study. This study only examined chocolate. Other types of Fair Trade products, for example coffee, bananas or clothing were left out. It is a possibility that consumers are willing to pay more for those other products than chocolate. Thus, the results regarding Fair Trade products could differ for different categories of products. This is also the reason that any conclusions made in this research cannot be drawn for Fair Trade products in general, but only for Fair Trade chocolate bars. Therefore, for future research, it is recommended to include all kinds of Fair Trade products to draw conclusions for Fair Trade products in general.
The final limitation of this study refers to the brands used as inspiration for the chocolate bars ‘Excitement’ and ‘Sophistication’. The brand that was used to create a similar packaging for the brand personality ‘Excitement’ was Tony’s Chocolonely. Tony’s Chocolonely already has a big personality in the Fair Trade industry and is destined to spread the word of unfair trading. Their mission is make the chocolate industry 100 percent slave free and this is clearly stated on every chocolate bar (Tony’s Chocolonely, 2016). The limitation is therefore that the respondents might be biased towards the packaging of ‘Excitement’, because they already know that this brand is fighting against a slave free chocolate industry and thus are willing to pay more for that brand. The ‘Sophistication’ packaging resembled Côte d’Or. Only by the end of 2012, all cacao from Côte d’Or was from certified farms (Rainforest Alliance, 2009). It is a possibility that the respondents were biased towards both brands.
Tony’s Chocolonely for clearly stating their mission to fight for fair trade, and Côte d’Or for
producing their chocolate bars from certified farms reasonably late comparing to others. Moreover, respondents could already have a preference for one of the two brands that resembled the packaging and this could have influenced the results as well.
For further research, it can be of use to control for chocolate bars without a brand personality. This is necessary to measure whether the Fair Trade label on its own has an influence of the
willingness to pay for the consumers. Now, only chocolate bars with brand personalities are used, which poses limitations to support Hypothesis 1. Also, further research can look into the other brand
personalities Sincerity
,
Competence and Ruggedness and possibly contribute to the marketing- and Fair Trade industries.Another recommendation for future research is to examine the concept of personality in this matter. Aaker (1997) stated that the greater the congruity between the human characteristics that consistently and distinctively describe the consumer’s actual or ideal self, the greater the preference for the brand. To test whether the respondents have similar personalities as the brands, this could result in stronger implications for the hypotheses and new insights for marketing industries. Another concept, which can be complementary for the personality approach is taste. Consumers have different tastes, which can also relate to personality. Future research should do experiments to control for the different flavors of the chocolate bar and the preference in taste of the consumers.
5.3 Practical Implications
Practical implications of the findings indicate a few focus points for managers in the business of Fair Trade chocolate. The first implication of this study is that consumers will be more aware of Fair Trade issues and hopefully be more conscious in their purchasing behavior towards Fair Trade products. This study will create necessary awareness of the severity of the Fair Trade situation and also will help eliminate possible prejudices that consumers have. Moreover, managers in the business of Fair Trade chocolate can strengthen this awareness by stating the Fair Trade issues in their mission statement.
The main practical implication is that managers can use brand personalities to attract
consumers and to make consumers willing to pay more. The more congruity between the personality of the consumer and the personality of the brand, the more preference the consumer has for the brand (Aaker, 1997). According to this study, that examined Brand Excitement and Brand Sophistication, only brands with the personality Excitement will strengthen the willingness to pay more for a brand with a fair trade label. For future research, other brand personalities must be examined to use brand personalities for the willingness to pay more for a brand with a fair trade label. For marketeers, this implication is interesting information for the chocolate industry.
Thus, if managers of brands or agencies focus their efforts on increasing the information on Fair Trade issues and using brand personalities to strengthen the willingness to pay for fair trade chocolate brands, they will have the best chance of achieving consumer awareness and recognition of the brand and thus higher profits.
6. Conclusion
The goal of this study was to prove that brand personalities Excitement and Sophistication have an influence on the relationship between Fair Trade label and the willingness to pay of chocolate bars. The results indicated that consumers are willing to pay more for a chocolate brand with a Fair Trade label when the brand personality is Excitement. However, consumers are not willing to pay more for a chocolate bar with Fair Trade label when the personality is Sophistication. Factors that limited the results of this study are as followed. The sample was limited to mostly Dutch students with higher education. Moreover, the research design was cross-sectional and not all the personality traits used in the pre-test were correlated with the personality Sophistication. Also, the results cannot be
generalized over all Fair Trade products because the use of only Fair Trade chocolate. Finally, there is a possibility that respondents already had a preference for one of the brands, which were used as inspirations for the pre-test stimuli. Future research needs to shed light on the other brand personality dimensions and their relation to willingness to pay for Fair Trade labeled products. Furthermore, there is a need for controlling for taste and the personalities of the consumers as well. Although more research on Fair Trade products and consumer behavior is necessary, the most important aim is to generate awareness on Fair Trade issues and to make sure consumers consume ethically with conscious thought.
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8. Appendices 8.1 Appendix A
A1: Chocolate bar packaging designs
Figure 2: Johnny Chocolate, without Fair Trade label
Figure 3: Johnny Chocolate, with Fair Trade label
Figure 4: Noblesse, without Fair Trade label
Figure 5: Noblesse, with Fair Trade label
A2. Pre-test
1. To what extent do you associate this chocolate bar packaging design with the personality trait …
2. To what extent do you associate this chocolate bar packaging design with the personality trait …
8.2 Appendix B
The experiment
1. Do you generally consume chocolate a. Yes
b. No
2. How often do you consume chocolate à Only question for people who answer yes a. Once every 6 months
b. Once every month c. Once every 2 weeks d. Once every week e. Couple times a week f. Every day
g. Couple times a day
3. How much are you willing to pay for this chocolate bar: (200 g) à Johnny Chocolate a. €1,70 – €2,10 b. €2,10 – €2,50 c. €2,50 – €2,90 d. €2,90 - €3,30 e. €3,30 – €3,70 f. €3,70 – €4,10
4. How much are you willing to pay for this chocolate bar: (200 g) à Noblesse a. €1,70 – €2,10 b. €2,10 – €2,50 c. €2,50 – €2,90 d. €2,90 - €3,30 e. €3,30 – €3,70 f. €3,70 – €4,10
5. How much are you willing to pay for this
chocolate bar: (200 g) à Johnny Chocolate Fair Trade a. €1,70 – €2,10 b. €2,10 – €2,50 c. €2,50 – €2,90 d. €2,90 - €3,30 e. €3,30 – €3,70 f. €3,70 – €4,10
6. How much are you willing to pay for this chocolate bar: (200 g) à Noblesse Fair Trade
a. €1,70 – €2,10 b. €2,10 – €2,50 c. €2,50 – €2,90 d. €2,90 - €3,30 e. €3,30 – €3,70 f. €3,70 – €4,10
7. To what extent do you identify yourself with the following statements:
a. Solidarity with third-world countries is important to me
b. I would refrain from buying products if I were not sure whether growers and workers were fairly paid
c. When buying chocolate, I pay attention to fair trade labels (e.g. Max Havelaar) d. I would be willing to pay a higher price to support small growers from third-world
countries
e. When buying clothes, I pay attention to where the clothes are manufactured f. I feel I’m doing something good when buying Fair Trade products
g. When Fair Trade products are more promoted (e.g. commercials, actions, distinctive places in shop), I would buy more Fair Trade products
h. Buying Fair Trade products contributes to a better world i. I buy Fair Trade products because of the quality of the product
8. What is your age? a. (…) years old 9. What is your gender?
a. Male b. Female
10. What is the highest level of education you have completed? a. Elementary school b. HAVO/VWO c. MBO d. HBO e. University – Bachelor f. University – Master
11. What is your income on a yearly basis? a. €0- €10.000 b. €10.000-€20.000 c. €20.000-€30.000 d. €30.000-€40.000 e. €40.000-€50.000 f. €50.000-€65.000 g. €65.000 or higher h. I’d rather not say
#nevernochocolate
