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The Powers of Consumers: (Option 2: Purchasing the Fair Trade product…
The Powers of Consumers:
Option 1:
Choosing the cheaper deal
Lower costs/save money
(however neglects the farmers/producer of the product)
Normally choose to buy more of this product due to its low price and sees it as a good deal
The price of an item usually dictates whether a products is bought or placed back on the shelfs, customer have a basic knowledge on how much something should cost, when it's lower, the item is deemed a deal while some may see it as over-pricing when higher (via Fair Trade).
More widespreadly used/accessible
Companies are able to l
ower their production costs
as they are
mainstream
, therefore are more advantaged in accessibility. Smaller producers like the ones Fair Trade supports cannot compete therefore are often left out and not as accessible.
Large powerful companies are
lucrative
and have a high income, which could be projected into ads and campaigns which boosts their product even more. This could not be achieved by struggling producers which creates a negative circle of neglect and poverty.
Guaranteed Quality
Big organisations have
guaranteed quality
so customers feel
safe
buying such products. Fairtrade products, however (as mentioned in Fair Trade Challenges) often cannot
promise
the quality of their product.
Option 2:
Purchasing the Fair Trade product
Cheaper Price may actually scare off consumers
as most believe you get what you pay for, therefore, choosing a Fair Trade product that is more costly, they may have a sense of security that cannot be retained with cheaper products
"The bottom line of our research is that people can hold two opposing beliefs about a product,"
said Steve Posavac, the E. Bronson Ingram Professor in marketing at Vanderbilt University's Owen Graduate School of Management and a co-author of the study.
"In the case of price, most people simultaneously believe that low prices mean good value and that low prices mean low quality. But these two beliefs are not equally present in consumers'
minds all the time.
Link:
Customers, W. (2020). Why Cheap Prices Can Scare Off Customers. Retrieved 23 March 2020, from
https://www.businessnewsdaily.com/3455-cheap-prices-customers.html
Higher price but could help impoverished workers/farmers
Fair Trade has mentioned more than once on the benefits small holders are able to benefit from such purchases.
Drastically change the life of the poor, enabling better sanitation, health and education
By paying more, farmers and workers will be motivated in work and achieve better results.
Other Benefits
: as the item is purchased with a higher price than normal, consumers with such products would tend to use it more. Unlike cheap products, which would often be thrown out before maximum usage due to its low cost, customers with more valued products also value it more.
This is also great for the environment as items are getting more usage and therefore less rubbish would be thrown out.
Provides a sense of pride/helpfulness
This tightly correlates to the better price for the small producers, when customers purchase Fair trade items, they have a sense of attribution to better the lives of struggling workers.