Fair trade implies a type of international trade that pays just wages to workers and supplies stable and eco-friendly products to customers, so boosts a sustainable development of economies. Nowadays attention on fair trade is increasing, and at the s...
Fair trade implies a type of international trade that pays just wages to workers and supplies stable and eco-friendly products to customers, so boosts a sustainable development of economies. Nowadays attention on fair trade is increasing, and at the same time the volume of fair trade is also getting bigger. In the backgrounds, this study intends to form a purchasing intention for fair trade products and to provide educational, promotional and marketing strategic implications by examining different variables that affect purchasing actions. Moreover, this study will be able to provide useful information of fair trade to consumers by understanding the demand of customer education.
For this study, a survey conducted targeting randomly collected 428 adult consumers in Seoul, South Korea and Beijing, China, to grasp the demand of customer education and a purchasing intention for fair trade and its products. Through the survey, this study will examine intentions, attitudes and interests toward fair trade of Korean and Chinese customers. It also has its aim for expanding consumption of fair trade products in South Korea and China through comparing and analysing the demand of customer education and the purchasing intention for fair trade of customers of both countries.
The main results of this study follow below:
First, as a result of examination of degrees for fair trade products purchasing intention of customers in South Korea and China, both had a meaningful difference: Chinese customers showed a higher purchasing intention for fair trade products than Korean customers.
Second, demographic variables that indicate meaningful differences for demand of customer fair trade education were differed between South Korea and China: age, level of education and occupation in South Korea, and level of education, monthly income in China. In case of Korea, 20-49 year-old consumers and consumers educated for more that 13 years more required customer fair trade education than people aged more than 50 and educated for less than 12 years. Compared to office worker/public official, self-employment/sales&service, housewife/others, student consumers implied more demand on customer education about ‘the effect of fair trade’. In China, people who were educated for more than 13 years and who earn average 6,501-9,500 Yuan of money for a monthly salary had more demand on the customer education than customers educated for less than 12 years and earning less than 3,500 Yuan in a month.
Variables that showed meaningful differences about current conditions of use and purchase were a degree of use and a degree of purchase in South Korea: customers who have high degrees of use and purchase showed more demand for customer education on fair trade. In case of China, there was no variable that indicates such a meaningful difference.
Variables about fair trade features that customers education demand also found some meaningful differences. It was awareness, attitude and interests about fair trade in both of South Korea and China. The urging of demand for customer fair trade education followed the level of the awareness, attitude and interests for fair trade.
Variables about a purchasing intention for fair trade products for customers education demand indicated a meaningful difference. In South Korea and China both, the urging for customer fair trade education got higher when people have more intentions to buy fair trade products.
In general, awareness of fair trade was the biggest factor that influenced to the demand on customer fair trade education, and a purchasing intention for the second factor in South Korea. It means the more customer awareness of fair trade and purchasing intention for fair trade products, the more demand on the customer education. In China, the purchasing intention showed a stronger influence on urging for customer education about fair trade, and awareness of fair trade as the second factor. In other words, people demanded more customer fair trade education when they have high awareness and purchasing intention for fair trade.
The conclusion and a proposal based on the results of research follow below:
First, consumers in South Korea and China had comparatively low features (awareness, attitude or interest) on fair trade, and those features influence on the demand on customer education for fair trade.
Second, compared to the current high use and purchasing of fair trade products, a purchasing demand in the future was low. It can be inferred that fair trade product customers were unsatisfied for the products they had purchased. Thus, fair trade products that meet needs of Korean and Chinese customer should be developed and produced. Particularly, needs and desire of Korean 30 year-old customers should be carefully analysed to develop various products, because the analysis of different purchasing intention by demographic variables indicated that they have more intention to buy fair trade products than other age-ranges of customers.
Third, people demanded more customer education for fair trade, when they have more intention to buy fair trade products in both South Korea and China. Thus, to vitalise the purchase of fair trade products, customer education about fair trade and its products should be carried out for the customers in both of countries.
Forth, the result proved that awareness of fair trade enhanced fair trade product purchasing intention of Korean and Chinese customers, so customer education is required to raise the awareness among customers. Especially when the absolute level of fair trade awareness in both of countries is not so high, such an education for concepts, products, organisations and purposes of fair trade has to be carried out.
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