¹Department of Marketing, Albers School of Business and Economics, Seattle University, Seattle, WA, USA

Abstract

There are numerous retailers in the specialty coffee market that sell Fair Trade Coffee (FTC). Some retailers sell FTC to meet the demand of socially responsible consumers, some are motivated by their own concern for small coffee producers and others sell FTC because of the taste profile of a particular FTC grower's coffee. A critical question facing these retailers is how best to position FTC: as good tasting or as socially responsible? This study examines consumers' coffee preferences, their comprehension of labels, the price they are willing to pay for FTC and tests the effectiveness of advertising socially responsible consumption as primary benefit of purchasing FTC. The implications for managing company reputation and communication of social responsibility for FTC are discussed and suggestions are given for advertising strategy and management of Fair Trade products