CONSUMER PREFERENCES FOR ECO- AND FAIR TRADE CLOTHES IN GOTHENBURG

Abstract

The aim of this thesis is to examine consumers’ attitudes and preferences towards eco and fair trade clothes in Gothenburg. As the market of these products is inadequate we conducted a contingent valuation (CV) study asking respondents if they were willing to pay an extra price premium for an eco and fair-trade labeled t-shirt. We conducted the survey with a total sample of approximately 500 respondents. 75% of the sample stated a positive willingness to pay for the eco and fair trade labeled t-shirt. The mean value of the extra price premium was 44 SEK. We performed two regression models to determine personal characteristics and motives influencing the willingness to pay. We found that the willingness to pay is decreasing with age, no other socio demographic variables were strongly determining. Personal attitudes and preferences had greater influence. Respondents with a larger recognition of responsibility for environmental and social conditions and respondents with altruistic values, considering other people and future generations in their consumption decisions, had a higher probability for stating a positive willingness to pay.