HCBE Theses and Dissertations

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Date of Award

2016

Document Type

Dissertation - NSU Access Only

Degree Name

Doctor of Business Administration (DBA)

Department

H. Wayne Huizenga College of Business and Entrepreneurship

Advisor

Ramdas Chandra

Committee Member

Yuliya Yurova

Committee Member

Russell Abratt

Abstract

The purpose of this study was to investigate the antecedents and reinforcements of fairtrade purchase intention and to examine the effect of reporting good fairtrade practices on consumers’ punishment behavior. A stratified sample of 240 English-speaking, American, adult subjects was collected online. First, the Behavioral Perspective Model (BPM) (Foxall, G., 2007) was modified and four manipulations varying luxury/commodity product type and open/closed purchase settings were presented. The results of paired-sample t-tests demonstrated closed purchase settings did not increase luxury purchase intention by itself. A split-plot ANOVA combining closed setting and the participant’s fairtrade learning history did not produce significant results, but post-hoc testing revealed a significant effect of positive learning history on purchase intention. Two separate, repeated-measures ANOVA found that utilitarian reinforcement was not affected by purchase setting, but informational reinforcement was significantly increased by the presence of others. Second, four manipulations of good/bad press events were presented without/without the firm’s fairtrade performance history mentioned in a news article. A two-way, between-subjects ANOVA produced insignificant results for the effect of information on willingness to pay. Importantly, the type of event significantly affected willingness to pay, accounting for 18% of the variation, with positive events generating higher willingness to pay than negative, regardless of whether fairtrade performance information was included. This study suggested firms would benefit from including cues for the social reward aspect of luxury fairtrade purchasing in marketing efforts and from preventing missteps rather than bragging about past practices. Future research suggestions included further analyzing the effect of information on punishment of bad corporate actors, investigating the credibility of self-declaration of fairtrade certification versus independent certification labels, and incorporating the effect of culture into the BPM.

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