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Journal of Business Ethics

, Volume 96, Issue 4, pp 589–611 | Cite as

A Cross-National Investigation on How Ethical Consumers Build Loyalty Toward Fair Trade Brands

Article

Abstract

Although Fair Trade has recently experienced rapid growth around the world, there is lack of consumer research that investigates what determines consumers’ loyalty toward Fair Trade brands. In this research, we investigate how ethical consumption values (ECV) and two mediating variables, Fair Trade product beliefs (FTPB) and Fair Trade corporate evaluation, (FTCE) determine Fair Trade brand loyalty (FTBL). On the basis of two empirical studies that use samples from the U.S. and Korea, we provide evidence demonstrating that the manner in which ECV influence FTBL differs in the U.S. and Korea. In the U.S., ECV determine FTBL only indirectly via FTPB, whereas in Korea they determine FTBL directly as well as indirectly via FTCE. We discuss theoretical and managerial implications of these findings.

Keywords

brand loyalty corporate evaluation culture ethical consumption values Fair Trade product beliefs 

Abbreviations

ECV

Ethical consumption values

FTPB

Fair Trade product beliefs

FTCE

Fair Trade corporate evaluation

FTBL

Fair Trade brand loyalty

SEM

Structural equation modeling

CFA

Confirmatory factor analysis

CR

Composite reliabilities

AVE

Average variance extracted

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Notes

Acknowledgments

This research was financially supported by the Marketing Center at Seoul National University, Korea. Address correspondence regarding this paper to Kiwan Park.

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Copyright information

© Springer Science+Business Media B.V. 2010

Authors and Affiliations

  1. 1.Korea Energy Economics Institute (KEEI)SeoulKorea
  2. 2.Seoul National UniversitySeoulKorea

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