A Study on Green Consumption through the Lens of Certified Coffee

advertisement
A Study on Green Consumption through the Lens of Certified Coffee
Jackie Silverman
Honors Thesis in Program in the Environment
April 2011
Advisor: Professor Ivette Perfecto
Reader: Professor Bobbi Low
Abstract
Conscientious consumer decision-making has become an important topic of
research for economics, psychologists, and marketing researchers, among others. Although the
aspects that influence green and socially-responsible consumption are varied and complex,
research in the area is providing insights regarding some of the characteristics of these
conscientious consumers. This thesis examines green and socially-responsible consumption of
college-age Americans in the context of their opinions and propensity to purchase certified
coffee products, specifically fair-trade, shade-grown and organic coffee. A survey was
distributed electronically via social networks and 372 responses were collected and analyzed.
Results show that demographics—gender, political alignment, education level, surrounding
community environment, and whether they are a student or not—play a significant role in
determining and individual’s likelihood in engaging in proenvironmental behaviors, like buying
certified goods. Likewise, psychological concepts—moral obligation, environmental knowledge,
economic rationality, habitual response, and social status—are also influential. Using means
testing and nonparametric comparisons, I found that liberals are more influenced by “moral
obligation” than moderates and conservatives when making green consumption decisions, and
that “moral obligation” and political alignment are the only parameters to significantly describe
differences in expected future coffee purchases (i.e.; if an individual will buy a certified coffee
product or not). Women are more influenced than men by both “environmental knowledge” and
“economic rationality.” Additionally, community environment (urban versus non-urban) and the
effects of “habitual response” on consumers’ decisions are significantly correlated. However,
these concepts cannot fully describe consumer behavior in environmental or socially-responsible
2
markets. These patterns are discussed in the context of consumer behavior regarding certified
coffee purchases based on demographic information and derived psychological “factors.”
Introduction
The majority of theories regarding ecological and ethical consumption are based on the
premise that consumers are rational, fully-informed agents who make consistent decisions
because of concrete personal values (e.g., Salmela and Varho, 2006). However, to describe
consumers’ decision-making processes accurately in environmental or ethical markets is not that
simple (e.g., Roberts 1996; Mainieri et al, 1997). One could argue that every consumer is
actually a “green” consumer, as when faced with the choice between two identical goods that
differ only in their environmental impact (and with perfect knowledge), almost every consumer
would pick the item with less associated environmental damage (Kardash, 1974). On the other
hand, some argue that there may be no such thing as a green consumer, since consumption is
inherently destructive, making the phrase an oxymoron (Peattie, 1990). It is possible that a
archetypal green consumer does exist, but does not uniformly apply environmental and ethical
values to every purchase type (McDonald et al, 2009); however, there may be many different
types of “green” consumers, each with a distinct level of preference for different categories of
environmentally- and ethically-conscious goods (McDonald et al, 2006).
Despite the complexity in defining a conscientious consumer, there are quantifiable
measures that can help describe him or her. These concepts can be broken down into six main
categories: economic rationality, environmental knowledge, demographics, social status, habitual
activity, and moral obligation. economic rationality captures the idea of a rational, self-serving
consumer in a market, while environmental knowledge may improve the likelihood of a
consumer making sustainable purchases (Peattie, 2010). Demographics also influence consumer
3
choices to some extent. Roberts (1996) suggests that typical eco-conscious consumers are “more
educated, earn more money, and [are] female,” but that this definition is becoming less relevant.
Social status influences are those that describe the level of esteem that the environment and its
proponents gain in society. Habitual activities are activities that consumers have done in the past
and continue out of habit, not things they do because they have knowledge of their actions’
implications, and moral obligation is the feeling that one must do what is “right.”
Initially, research on green consumption focused on distinct, easily-quantifiable green
measures: the consumption of typically “dirty” products, such as automobiles, fossil fuels and
chemicals, and consumer behaviors like recycling and energy saving (Peattie, 2010; Henion and
Kinnear, 1974). Over time, as researchers recognized a growing number of world citizens with
concern for the environment, the need to define the “green consumer” and his or her motivation
to buy certain products has arisen (Dunlap, 1992). Peattie (2010) pointed out that the majority of
research devoted to this cause is concentrated on marketing and economics; examining
consumption behavior in environmental and socially-conscious markets through a different lens
could shed light on new results. Therefore, interpreting consumer preferences and knowledge in
a related niche market, like certified coffee (organic, shade grown, and fair trade), could reveal
the motivations of consumers who buy these and other green products.
Certified Coffee and Consumer Behavior
Organic coffee is a part of the organic agricultural movement, which focuses on creating
“an agriculture that can evolve indefinitely toward greater human utility, greater efficiency of
resource use, and a balance with the environment that is favorable both to humans and to most
other species” (Harwood, 1990: 4). Federal legislation for sustainable agriculture, such as
reduced soil erosion and pesticide use, has existed in the US since the early 1900s, but the
4
resources crises in the 1960s and 1970s increased the public’s acknowledgment of a domestic
need to farm sustainably. Within the US, farms that practice organic farming must comply with
the Organic Foods Production Act of 1990 to label their products as “certified organic.” The
Organic Foods Production Act allows the labeling of items with “organic under USDA
requirements” if they meet certain growing restrictions, including reduced chemical use and soil
and water degradation. For processed food, a product cannot be advertised as organic unless it
has at least 70% organic content, and may feature the USDA organic label only if it has at least
95% organic content. To have their product qualify as organic, a company must follow these
regulations and apply to the National Organic Program.
Coffee production in Latin America underwent a shift in cultivation practices in the
1980s. Encouraged by national and international programs, coffee farmers substituted traditional
varieties for high-yielding varieties, increased plant density, eliminated shade trees and increased
the use of chemical fertilizers and pesticides (Rice, 1999). Small “traditional” farms often grow
coffee plants in situations similar to their natural habitat: dispersed among other tree species with
their top branches occupying a shady sub-canopy. These new intensive or “technified” coffee
plantations, on the other hand, feature sun-tolerant hybrids grown in monocultures (Jaffee, 2007).
While it is important to note that coffee production schemes are much more complex and varied
than simply “traditional” versus “technified,” this general transition has consequences for local
ecosystems, including substantial decreases in biodiversity and ecosystem stability, as well as
increases in soil erosion and water runoff (Perfecto et al, 1996). This phenomenon ultimately
gained global attention because of its negative impact on migratory bird species, giving rise to
shade grown coffee (Perfecto et al., 2007). While lacking a central regulating body, coffee
labeled “shade grown” is grown with canopy-level shade trees. Overall, shade coffee plantations
5
have significantly higher levels of biodiversity and potentially allow for higher per-plant yields
than their monoculture counterparts, especially when grown in low input systems (Perfecto et al,
2005).
According to Fairtrade Labeling Organizations International (FLO), a group of 24
organizations that regulate fair trade standards and certification, fair trade is “a trading
partnership, based on dialogue, transparency and respect that seeks greater equity in international
trade. It contributes to sustainable development by offering better trading conditions to, and
securing the rights of, marginalized producers and workers—especially in the South.” The
concept of fair trade was started by grassroots efforts in the 1960s with the goal of providing fair
wages for producers in the Southern Hemisphere while simultaneously creating sociallyconscious consumers in the western world (Raynolds, 2000). Although specific standards and
ruling bodies vary regionally and nationally, fair trade coffee guarantees a set price or premium
per pound for approved farmers. From 2000 to 2005, coffee farmers faced a “coffee crisis” due
to low prices generated by high production of Robusta coffee in Vietnam coupled with a lower
general demand for coffee and increased production worldwide. This contributed to a recent
boom in the share of fair trade specialty coffee in the market (Goodman, 2008).
Within the framework of different coffee certification programs, I examine consumer’s
knowledge of, trust in, and affinity for buying green products. I seek explanations to the
following questions: 1) what are some motivations for consumers to buy environmental or
socially-responsible goods like certified coffee, and 2) how do different demographics consider
these motivations (i.e.; gender, education level, political beliefs, etc.)? Ideally, by surveying
young adults, I will be able predict the potential trajectory of consumer beliefs and values in the
future.
6
Methods
I created a 54-question survey with Qualtrics (www.qualtrics.com) for anonymous online
participation. Distribution via a social networking site (Facebook) was deemed most effective
and cost-efficient because the targeted survey audience was college-age Americans.
Questions first gathered general information about the respondent; these answers were
later used as demographics measurements against which influential factors were compared. The
survey then asked about environmentally- and socially-certified coffee availability and the
likelihood of the consumer purchasing it. Next, the survey addressed the respondent’s opinion of
their environmental and social awareness when buying goods relative to their peers.
The survey gathered information about environmental and social concerns, purchasing
trends, and opinions regarding certified coffee markets through a series of Likert-scale opinionbased questions. Likert-scale questions are those that aim to determine attitudes towards a given
statement by allowing the respondent to rank their opinion on a scale, often 1 to 5 (Likert, 1932).
In this survey, the scale was assigned using these definitions: 1 = strongly disagree, 2 = disagree,
3 = neither agree nor disagree, 4 = agree, 5 = strongly agree; 1 = very unlikely, 2 = unlikely, 3 =
neither likely nor unlikely, 4 = likely, 5 = very likely; or 1 = very unimportant, 2 = unimportant,
3 = neither important nor unimportant, 4 = important, 5 = very important.
Opinion questions were grouped by topic and sorted to include a variety of positive,
negative and neutral statements for Likert-style response. Additional questions addressing selfdefinition of different coffee certification programs and a critique of the survey were included,
but not analyzed in this study. The complete survey is in Appendix A.
7
After collecting 372 responses over approximately one month, I analyzed the information
with PASW 18. To ensure that sample sizes for all categories in each variable were large enough,
four questions experienced consolidation, as shown in Table 1:
Question
What is the highest
level of education you
have completed?
Which of the
following best
describes the
community in which
you live?
Which of the
following political
categories do you
most agree with?
Next time you are
shopping, you will
most likely buy…
Options
Some high school
Completed high school
Some college
Completed college
Some graduate work
Completed graduate work
Rural
Small town
Suburban
Small city
Large urban area
Liberal
Moderate
Conservative
Original Coding
1
2
3
4
5
6
1
2
3
4
5
1
2
3
Regrouped Coding
Eliminated
Eliminated
1
2
2
2
1
1
1
2
2
1
2
2
Organic coffee
1
1
Shade-grown coffee
2
1
Fair-trade coffee
3
1
Coffee without an
4
2
environmental or social label
Table 1: Recoding for three personal trait question responses and one future consumption
behavior question.
To track trends well within the 43 Likert-scale questions posed in the survey, I conducted
factor analysis and compared the factors to the demographic traits via separate ANOVA means
testings. Exploratory factor analysis uses answers from a series of opinion-based questions that
address “surface attributes,” or measurable and observable characteristics, to uncover “internal
attributes,” or unobservable characteristics that exist at varying degrees within individuals and
alter their responses to these questions (Tucker and MacCallum, 1997). Each question is given a
rank, or loading value, from -1 to 1; the more positive or negative a question’s loading is, the
more likely that the internal attribute is addressed by the question. These internal attributes, also
known as factors or latent variables, are given as numerical values on a continuous scale, often -3
8
to 3, that are assigned to each survey respondent. This variable represents the relative importance
of this factor in the decision-making of that individual; a score of 1.0 means that the respondent
is one standard deviation above the average person’s display of the factor, while a -1.0 means he
or she is one standard deviation below it. While factor analysis is by no means a concrete
statistical tool, it reduces information gathered from large surveys into manageable variables that
can be used in parametric testing, which can then help conjecture in describing motivating
factors or predicting new trends in attitudes.
For the exploratory factor analysis, I used the typical settings for social science: principal
axis factoring with varimax rotation. A scree test of the Eigenvalues indicated that a thirteenfactor model provided a reasonable fit to the data, with minimum Eigenvalues at 1.0 (a standard
cut-off for accepting factors). However, components with three or fewer questions featuring high
enough loading values (at least 0.35) were dismissed as unstable. This eliminated eight factors
that, although having Eigenvalues between 1 and 2, each accounted for less than 4% of the
variance. The loading values for all significant and unstable factors can be found in Appendices
B and C, respectively.
Using Peattie’s (2010) literature review, I grouped thirteen predominant influences in
green consumption into six main categories. Five of these categories were used to name and
describe the five main factors derived in my statistical analysis. These factors, as described in
the introduction, are the following: environmental knowledge, moral obligation, economic
rationality, habitual response, and social status. The sixth category, demographics, was not used
in describing the factors. Individuals fell into one of two subsets for each demographic, as
shown below:
Demographic Shortcode
Gender
Related Question
What is your gender?
Subsets
Male, Female
9
Student
Education
Are you currently a student?
Yes, No
What is the highest level of
Some College, Finished College
education you have completed?
and/or Graduate Work
Community
Which of the following best
Non-urban, Urban
describes the community in which
you live?
Political
Which of the following political Liberal, Moderate / Conservative
categories do you most agree
with?
Table 2. Demographic categories, their full meanings and subsets.
In this study, I used these demographics as variables through which to compare other
influences on consumer decisions. The five main factors account for 44% of the variance in the
data, individually accounting for between 21.1% and 4.3%. The minimum Eigenvalue was 1.90.
These factors, and their corresponding Eigenvalues, are shown in Table 3:
Moral
Obligation
9.29
21.1%
Environmental
Knowledge
3.29
7.5%
Economic
Rationality
2.51
5.7%
Eigenvalue
Percent
Variance
Supporting
24
12
7
Questions
(loading >0.35)
Table 3. Descriptive statistics for the five most significant factors.
Habitual
Response
2.39
5.4%
Social
Status
1.90
4.3%
6
6
Each concept was applied to a factor based on that factor’s defining questions (the types
of questions with the highest positive and negative loadings). The most influential factor, with
significantly high enough loadings in over half the surveys questions and explaining 21.1% of
the variance in responses, was labeled “Moral Obligation.” The statements with the highest
loadings included “I feel that I have an ethical obligation to buy environmentally or socially
labeled coffee” (0.795), “the humanitarian aspect of fair-trade coffee is important to me” (0.701)
and “I am concerned with the impact of coffee production on local ecosystems” (0.722). These
statements, as well as others with particularly high loadings of over 0.600, all address personal
10
values and opinions about the importance of the environment, implying a moral obligation to
engage in green consumption.
The second-most influential factor, “Environmental Knowledge,” explained much less
(7.5%) of response variance. This factor was labeled with this concept because the supporting
questions were related to the legitimacy of environmental advertising and certification programs
and positive outcomes from buying certified coffee products, including a reduction in the use of
harmful chemicals and support for independent farmers. Confidence in environmental labeling
reflects green consumers’ research; overall, these consumers are more likely to have educated
themselves about the products in the market and to have put extra time into finding the most
environmentally friendly (and properly labeled) goods (Shrum et al, 1995).
I assigned the third factor as “Economic Rationality” because of the high loadings
associated with consumers being well informed about markets and the influence of supermarkets,
large corporations, and coffee shops on purchasing decisions. Economically rational actors
would believe that they have access to full information in the market; given that condition,
consumers would be well informed and the suppliers in the market—supermarkets, large
corporations, and coffee shops—and their prices would heavily influence consumption.
The “Habitual Response” factor focuses on perceived pressure from family, supermarkets
and large corporations to buy (or, more likely, to not buy) certified products, as well as a lack of
confidence in environmental labeling.
The typical consumer’s mentality is one in which
traditionally conservative viewpoints, like those of corporations, families and media outlets
skeptical of pro-environmental claims, have a lot of power. Therefore, it is appropriate to equate
influence from these entities with a consumer’s tendency to stick to “normal” market behavior—
i.e., not buying certified products.
11
The last factor’s significant questions were associated with confidence in environmental
certification and environmental and social organizations’ opinion that consumers should buy
certified coffee products. I tied this factor to “Social Status” because individuals that label
themselves as “green consumers” are inclined to trust eco-labels and are influenced by
information from pertinent nonprofit organizations.
Results
I studied the impact of each of the above factors by conducting an analysis of variance, or
ANOVA, for each factor in terms of the demographic traits reported by those who answered the
survey. Specifically, I compared subsets of the sample—divided based on gender, education
level, surrounding community environment, political alignment, and whether they were a student
or not—based on each group’s mean value for each factor to determine whether these traits
changed how important that factor was in consumer’s decision making. The p-values of the
ANOVA test for each factor and its comparison under reported demographics and future buying
decisions (“Future Purchase”) are shown below in Table 4, with the significant p-values in bold
(p < 0.05):
Gender Student Education Community Political
Moral Obligation
0.13
0.70
0.45
0.33
< 0.01
Environmental Knowledge
0.32
0.78
0.44
0.39
0.03
Economic Rationality
0.15
0.49
0.89
0.51
0.01
Habitual Response
0.84
0.44
0.29
0.82
0.02
Social Status
0.90
0.48
0.34
0.51
0.72
Table 4: P-values for six personal traits measured against five identified factors.
Future
Purchase
< 0.01
0.99
0.44
0.73
0.12
There were five statistically significant comparisons: women were statistically higher in
“Environmental Knowledge” and “Economic Rationality” than men, meaning that these factors
were more important influences in women’s decisions to purchase certified goods than men’s.
Liberals were statistically higher in “Moral Obligation”—or consider what is ethically right more
12
when potentially purchasing certified goods—than moderates and conservatives. People living in
non-urban environments were statistically higher in “Habitual Response” than those in urban
settings, meaning that they rely on habitual activities to make decisions more. “Social Status”
was not statistically significant for any demographic or future purchase comparison. In addition,
two demographics—level of education and whether the respondent was currently a student or
not—did not create any significantly different subgroups among factor responses. The
comparative box plots and bar graphs to illustrate the statistically significant results are in
Appendix D.
To further explore the relationship between “Moral Obligation” and reported future
purchase, I conducted another ANOVA with a Tukey post-hoc test where the Future Purchase
variable was ungrouped, allowing for comparison among the four types of coffee (shade-grown,
fair-trade, organic, and not certified). The ANOVA’s p-value was again less than 0.01, with the
following p-values for the comparison groups (i.e.; the mean for “Moral Obligation” under each
expected future coffee purchase type):
Coffee Types
P-value
Mean
Standard
Difference
Deviation
Organic Coffee vs.
Shade-grown Coffee
0.051
-1.35
0.52
Fair-trade Coffee
0.482
-0.35
0.24
Non-certified Coffee
0.72
0.25
0.024
Shade-grown Coffee
Fair-trade Coffee
0.171
1.00
0.48
vs.
Non-certified Coffee
2.07
0.49
< 0.01
Fair-trade Coffee vs.
Non-certified Coffee
1.07
0.17
< 0.01
Table 5: P-values from a post-hoc ANOVA test showing p-values and standard deviations for
compared means for “Moral Obligation” based on reported future coffee purchase.
Noticeably, mean “Moral Obligation” was significantly lower for non-certified coffee
when compared to each certified coffee category. As further illustrated in Figure 1, organic and
fair-trade coffee are the most similar of the certified coffee products, and individuals who will
buy shade-grown coffee in the future have the most variance in “Moral Obligation” importance.
13
Figure 1. Error Bars with 95% confidence for Mean “Moral Obligation.” Shade-grown has the
highest mean for this factor, with 1.47, followed by fair-trade (0.47), organic (0.12) and then
non-certified coffee (-0.61).
To make inferences about how demographic characteristics play a role in green
consumption, I also conducted a Mann Whitney U test on the demographic categories against the
response to the future purchase question (whether they would purchase certified or non-certified
coffee) with results in Table 6.
Demographic
Gender
Student
Education
Community
Political
p-value
0.39
0.78
0.52
0.85
< 0.01
z-score
-0.86
-0.28
-0.65
-0.184
-3.30
14
Table 6: Results of Mann Whitney U testing on demographic information against reported future
buying trends.
Notably, demographics are not significant in predicting future purchasing decisions in
green consumption, except for political alignment; in that case, self-labeled liberals are
significantly more likely to buy certified coffee over self-labeled moderates and conservatives
(see Appendix D).
Discussion
My factors—moral obligation, environmental knowledge, economic rationality, habitual
response, and social status—account for 44% of variance in responses, and four out of five
demographic measures were not significant in explaining expected future purchases. Similarly,
Roberts’ (1996) study on ecologically conscious consumer behavior revealed that only 8% and
37% of variance could be attributed to demographic and psychological characteristics,
respectively, even when these traits were statistically significant.
Political alignment was the only statistically significant demographic category, as well as
the only statistically significant demographic in creating subgroups among the most influential
factor, “Moral Obligation;” respondents who identified as liberal, rather than moderate or
conservative, were significantly more likely to have “Moral Obligation” as a positive motivating
factor in making consumption decisions. This could be due to the general belief that leftist
policies pay relatively more attention to environmental issues, resulting in those who selfidentify as “liberal” also more often acting to preserve the environment (Hine and Gifford, 1991).
“Moral Obligation” was the only significant factor related to reported future purchases,
with noticeably higher factor scores for individuals who will most likely buy certified coffee
products the next time they are shopping. This factor could be similar to the motivations behind
green consumerism as described by Stern et al (1993); “socio-altruism,” “biospheric-altruism,”
15
and “egoism” are all levels of importance individuals assign to other world citizens, the planet,
and themselves, respectively, that play into day-to-day decisions, including the choice to engage
in proenvironmental behaviors.
Women had a significantly higher mean for “Environmental Knowledge” than men.
Environmental knowledge may improve the likelihood of a consumer making sustainable
purchases, but may also fail to increase a person’s affinity for engaging in proenvironmental
behaviors, like participation in curbside recycling programs (Davies et al, 2002). Environmental
knowledge that is most effective in changing an individual’s behavior focuses on the individual’s
direct impacts on the environment through personal habits and consumption (Hobson, 2003;
Anable et al, 2006). In this study, men had significantly lower environmental knowledge than
women. These results are not supported by most existing theories about gender differences in
environmental knowledge; men have generally been found to have attitudes more in line with the
green movement, and when women do have greater environmental knowledge, it is regarding
household impacts (e.g.; Arcury, 1990; Arcury et al 1987; Schahn and Holzer, 1990). It is
important to note, however, that the majority of evidence in support of men having higher
environmental knowledge originates from the 1990s and earlier, and does not focus on the young,
college-age demographic. Therefore, the differences in results could be due to temporal changes,
as only recently have women commanded the majority in college attendance (Goldin et al, 2006).
Since my survey was mainly distributed to college-age individuals, it may have captured this
new, more-educated segment of women in our population who seek out environmental
knowledge.
Women were also significantly more economically rational than men. To align
consumers with more altruistic, green purchasing preferences, incentives or disincentives must
16
be introduced, like taxes or penalties for items with negative externalities (or, conversely,
subsidies or rewards for goods with positive aspects not captured by the market). The results of
this study suggest that women are more likely to subscribe to these incentive schemes. These
results are supported by another study that found that women often have higher willingness-topay for environmental or socially-responsible goods, so they may more readily support green
policies monetarily through taxes (DePelsmacker et al, 2005). Further research should be
conducted on any differences in willingness to pay between genders, and in what form extra
payments are most accepted (i.e.; national taxes, standardized fees, or per-item mark-ups).
Respondents living in non-urban communities—namely, rural, small town and suburban
settings—were significantly more affected by “Habitual Response” than those living in urban
communities. This contrast could be due to the habits that can only be found in urbanites; only
people living in large cities, especially in the US, can regularly take advantage of green options
like public transportation and housing with a small environmental footprint. However, a person’s
ability to adhere to green habits is inconsistent. For example, the majority of people are much
more wasteful when on vacation (Dolnicar and Grun, 2008). Therefore, future studies on green
consumer behavior should take note of the context—regionally, spatially, and mentally—in
which consumption is conducted.
Eco-labeled and green certified products could increase market shares the most by taking
advantage of “Moral Obligation” and liberal leanings among potential consumers. As suggested
by Straughan and Roberts (1999), this could be achieved by using a “liberal” spokesperson in
advertising. Advertising for these products could also be improved by changing the “take-away
message;” consumers are more likely to buy a green product if they are assured of the product’s
integrity and are offered a benefit outside environmental protection, such as lower cost of use
17
(Ottman et al, 2006). In certified coffee markets, this could mean creating uniform, explicit
labels for products who meet certain environmentally-friendly standards while also putting the
benefits in personal and tangible terms, such as stating the lack of harmful chemicals used to
grow and process organic coffee that are often used with (and possibly ingested) non-organic
coffee.
Future research in green consumer profiles should continue to focus on psychological
traits, like my factors (moral obligation, environmental knowledge, economic rationality,
habitual response, and social status), and how they may influence market decisions. This and
other studies show that the demographic and internal motivations for green consumption often
account for less than 50% of variance. Therefore, direct observation of consumers, such as
surveillance and interviewing at the point of decision-making, could provide more analysis of
deeper, internal motivational characteristics.
Further research could also examine where
misconceptions regarding certified products comes from and in what demographic populations
they are most common. Realizing where this misinformation occurs—whether it is from specific
media sources, confusion from the variety of unclear certification systems, or general ignorance
among a specific population subset—could allow certifying organizations to efficiently change
labeling and communication standards.
18
Literature Cited
Arcury, Thomas. (1990) Environmental Attitude and Environmental Knowledge. Human
Organization, 49, 300-304.
Arcury, Thomas, Susan Scollay, and Timothy Johnson. (1987) Sex Differences in Environmental
Concern and Knowledge: The Case of Acid Rain. Sex Roles, 16, 463-472.
DePelsmacker, Patrick, Liesbeth Driesen, and Glenn Rayp. (2005) Do Consumers Care about
Ethics? Willingness to Pay for Fair-Trade Coffee. The Journal of Consumer Affairs, 39, 363-385.
Dolnicar, Sara and Bettina Grun. (2008) Environmentally Friendly Behavior: Can Heterogeneity
Among Individuals and Contexts/Environments be harvested for Improved Sustainable
Management? Environment and Behavior, 41, 693-714.
Dunlap, Riley E. (1992) Trends in Public Opinion toward Environmental Resources. Society and
Natural Resources, 4, 285-312.
Federal Organic Foods Production Act, 7 U.S.C. § 6051 (1990).
Goldin, Claudia, Lawrence Katz, and Ilyana Kuziemko. (2006) The Homecoming of American
College Women: The Reversal f the College Gender Gap. The National Bureau of Economic
Research Working Paper No. 12139.
Goodman, David. (2008) The International Coffee Crisis: A Review of the Issues, in Christopher
Bacon, V. Ernesto Mendez, Stephen Gliessman, David Goodman, and Jonathan Fox (eds)
Confronting the Coffee Crisis: Fair Trade, Sustainable Livelihoods and Ecosystems in Mexico
and Central America. USA: The MIT Press.
Harwood, Richard R. (1990) Sustainable Agricultural Systems, in Clive Arthur Edwards (ed) A
History of Sustainable Agriculture. USA: Soil and Water Conservancy.
Henion, Karl and Thomas Kinnear. (1974) A Guide to Ecological Marketing, in Karl Henion and
Thomas Kinnear (eds) Ecological Marketing. Chicago: American Marketing Association.
Hine, Donald and Robert Gifford. (1991) Fear Appeals, Individual Differences and
Environmental Concern. Journal of Environmental Education, 23, 36-41.
Jaffee, Daniel. (2007) Brewing Justice: Fair Trade Coffee, Sustainability, and Survival. Los
Angeles: University of California Press.
Kardash, WJ. (1974) Corporate Responsibility and the Quality of Life: Developing the
Ecologically Concerned Consumer, in Karl Henion and Thomas Kinnear (eds) Ecological
Marketing. Chicago: American Marketing Association.
Likert, R. A Technique for the Measurement of Attitudes. Archives of Psychology, 22, 55.
Mainieri, Tina, Elaine Barnett, Trisha Valdero, John Unipan, and Stuart Oskamp. (1997) Green
Buying: The Influence of Environmental Concern on Consumer Behavior. The Journal of Social
Psychology, 137, 189-204.
19
McDonald, Seonaidh, et al. (2006) Toward Sustainable Consumption: Researching Voluntary
Simplifiers. Psychology and Marketing, 23, 515-534.
McDonald, Seonaidh, et al. (2009) Comparing Sustainable Consumption Patterns across Product
Sectors. International Journal of Consumer Studies, 33, 137-145.
Ottman, Jacquelyn, Edwin Stafford and Cathy Hartman. (2006) Avoiding Green Marketing
Myopia: Ways to Improve Consumer Appeal for Environmentally Preferable Products.
Environment, 48, 22-36.
Perfecto, I., I. Armbrecht, S. M. Philpott, L. Soto Pinto and T. V. Dietsch. (2007) Shade coffee
and the stability of forest margins in Northern Latin America. In T. Tscharntke, M. Zeller and C.
Leuschner (eds.), The Stability of Tropical Rainforest Margins: Linking Ecological, Economic
and Social Constraints. Chicago: Springer-Verlag.
Perfecto, Ivette, Robert Rice, Russell Greenberg, and Martha van der Voort. (1996) Shade
Coffee: A Disappearing Refuge for Biodiversity. BioScience, 46, 598-608.
Perfecto, Ivette, John Vandermeer, Alex Mas, and Lorena Soto Pinto. (2005) Biodiversity, Yield
and Shade Coffee Certification. Ecological Economics, 54, 435-446.
Peattie, Ken. (2010) Green Consumption: Behavior and Norms. Annual Reviews of Environment
and Resources, 35, 195-228.
Peattie, Ken. (1999) Trappings versus Substance in the Greening of Market Planning. Journal of
Strategic Marketing, 7, 131-148.
Raynolds, Laura T. (2000) Re-embedding Global Agriculture: The International Organic and
Fair Trade Movements. Agriculture and Human Values, 17, 297-309.
Rice, Robert. (1999) A Place Unbecoming: The Coffee Farm of Northern Latin America.
Geographical Review, 89, 554-579.
Roberts, James A. (1996) Green Consumers in the 1990’s: Profile and Implications for
Advertising. Journal of Business Research, 36, 217-309.
Salmela, Suvi and Vilja Varho. (2006) Consumer in the Green Electricity Market in Finland.
Energy Policy, 34, 3669-3683.
Schahn, Joachim and Erwin Holzer. (1990) Studies of Individual Environmental Concern: The
Role of Knowledge, Gender and Background Variables. Environment and Behavior, 22, 767-786.
Shrum, L.J., John McCarty, Tina Lowrey. (1995) Buyer Characteristics of the Green Consumer
and their Implications for Advertising Strategy. Journal of Advertising, 24, 71-82.
Stern, Paul, Thomas Dietz and Linda Kalof. (1993) Value Orientations, Gender and
Environmental Concern. Environment and Behavior, 25, 322-348.
20
Straughan, Robert, and James A Roberts. (1999) Environmental Segmentation Alternatives: A
Look at Green Consumer Behavior in the New Millennium. Journal of Consumer Marketing, 16,
558-575.
Tucker, Ledyard R., and Robert C. MacCallum. (1997) Exploratory Factor Analysis. Internet
publication.
21
Appendix A: Survey
1 What is your age?
2 What is your gender?
o Male
o Female
3 What is the highest level of education you have completed?
o Some high school
o Completed high school
o Some college
o Completed college
o Some graduate work
o Completed graduate work
4 Are you currently a student?
o Yes
o No
Answer 5 If Are you currently a student? Yes Is Selected
5 What is your area of study?
o Natural Science
o Humanities
o Social Science
o Engineering
o Fine Arts
6 Which of the following best describes the community in which you live?
o Rural
o Small town
o Suburban
o Small city
o Large urban area
7 Which of the following political categories do you most agree with?
o Liberal
o Moderate
o Conservative
8 In what state do you live?
9 How often do you buy ground or whole bean coffee for use at home or work (specifically, not
already brewed at a coffee shop)?
o Never
22
o Rarely
o Sometimes
o Often
If Never Is Selected, Then Skip To 14
10 Where do you most often buy this coffee? (please specify location if possible, e.g., Kroger,
Starbucks, etc.)
o Local or farmer's market
o Supermarket
o Small convenience store
o Coffee shop
o Location: ____________________
11 What percent of coffee available at this location is socially or environmentally labeled?
o < 10%
o Around 25%
o Around 50%
o Around 75%
o Around 100%
o I don't know
12 Next time you are shopping, you will most likely buy...
o Organic coffee
o Shade-grown coffee
o Fair-trade coffee
o Coffee without an environmental or social related label
13 What is the main factor in your decision for the last question's scenario?
o Price
o Quality
o The environment
o Social issues
o Other: ____________________
14 How do you think you compare to other consumers when considering organic products?
Please rate your response on a 1-5 scale.
Strongly
Disagree Neither Agree Agree Strongly
disagree
nor Disagree
Agree





14.1 I think of myself as
someone who is concerned with
social issues





14.2 I think of myself as
environmentally conscious





14.3 I do not think of myself as
an organic consumer
23
14.4 I think I am a socially
responsible consumer
14.5 I do not usually concern
myself with environmental issues










Please explain what you know about organic, shade-grown and fair-trade coffee production by
checking the words/phrases that you think best describe each category. Check all that apply to
each type of coffee.
15 Organic
o Grassroots
o Natural
o Sustainable
o Eco-friendly
o Tastes better
o Requires certification
o No fertilizers or pesticides
16 Fair-trade
o Grassroots
o Natural
o Sustainable
o Eco-friendly
o Tastes better
o Requires certification
o No fertilizers or pesticides
17 Shade-grown
o Grassroots
o Natural
o Sustainable
o Eco-friendly
o Tastes better
o Requires certification
o No fertilizers or pesticides
18 To me, purchasing an environmentally or socially labeled coffee product is:
o Very unimportant
o Unimportant
o Neither important nor unimportant
o Important
o Very important
19 What is your opinion concerning organic, fair-trade and shade-grown coffee? Please rate your
response on a 1-5 scale.
Strongly
Disagree Neither
Agree Strongly
24
disagree
19.1 Organic agriculture is good for
the environment
19.2 Sustainable agriculture is
important to me
19.3 The humanitarian aspect of
fair-trade coffee is important to me
19.4 I would not go out of my way
to buy environmentally or socially
labeled coffee
19.5 I prefer to buy locally
19.6 I am concerned with the impact
of coffee production on local
ecosystems
19.7 I feel that I have an ethical
obligation to buy environmentally or
socially labeled coffee
19.8 Coffee producers and farmers
who grow non-organic or non-fairtrade coffee get paid fairly
19.9 I would buy organic, shadegrown or fair-trade coffee to help
support the respective industry
19.10 I would go out of my way to
visit coffee shops featuring organic,
fair-trade or shade-grown coffee





Agree nor
Disagree

Agree












































20 What is your opinion towards environmental claims on products and labels? For example, this
includes labels or words such as “organic,” “USDA approved organic,” “fair-trade,” “shadegrown” and “natural.” Please rate your response on a 1-5 scale.
Strongly
Disagree Neither
Agree Strongly
disagree
Agree nor
Agree
Disagree





20.1 Most environmental claims
made in advertising or on products
are true





20.2 Most environmental claims are
exaggerated





20.3 Consumers would be better off
if environmental claims on products
were mandatory





20.4 I do not believe in most
environmental claims in advertising





20.5 The USDA Organics
certification process is legitimate
25
20.6 Consumers are generally wellinformed about the differences
between fair-trade, organic and nonorganic products
20.7 Environmental claims are
intended to better inform consumers










21 How do the attitudes of people around you influence your purchases? Please rate the
likelihood on a 1-5 scale.
Very
Unlikely Neither likely
Likely Very
unlikely
nor unlikely
likely





21.1 Friends





21.2 Family





21.3 Environmental or social
responsibility organizations





21.4 Supermarkets





21.5 Large corporations





21.6 Coffee shops
22 How likely is it that the following groups think you should purchase environmentally or
socially labeled coffee products?
Very
Unlikely Neither likely Likely Very
Unlikely
nor unlikely
Likely





22.1 Friends





22.2 Family





22.3 Environmental or social
responsibility organizations





22.4 Large corporations





22.5 Supermarkets that stock
environmentally or socially labeled
coffee products





22.6 Coffee shops that stock
environmentally or socially labeled
coffee products
23 If you were to purchase an environmentally or socially labeled coffee product, how likely do
you think it is that the following statements occurs? Rate the likelihood on a 1-5 scale.
Very
Unlikely Neither likely
Likely Very
Unlikely
nor unlikely
Likely





23.1 A fair wage for coffee
farmers





23.2 More retailers selling a
labeled product





23.3 Overpaying for a product





23.4 A reduction in the use of
harmful chemicals
26
23.5 Higher profits to
corporations
23.6 Improving my health
23.7 Supporting independent
farmers
23.8 Supporting proenvironmental groups
23.9 Purchasing a high-quality
product

























24 If you have any comments or questions, please write them below:
27
Appendix B: Significant Factors and their Loadings per Question
QUESTION
How do you think you compare to other
consumers when considering organic
products?
I think of myself as someone who is
concerned with social issues
I think of myself as environmentally
conscious
I do not think of myself as an organic
consumer
I think I am a socially responsible
consumer
I do not usually concern myself with
environmental issues
To me, purchasing an environmentally or
socially labeled coffee product is:
What is your opinion concerning
organic, fair-trade and shade-grown
coffee?
Organic agriculture is good for the
environment
Sustainable agriculture is important to
me
The humanitarian aspect of fair-trade
coffee is important to me
I would not go out of my way to buy
environmentally or socially labeled
coffee
I prefer to buy locally
I am concerned with the impact of coffee
production on local ecosystems
I feel that I have an ethical obligation to
buy environmentally or socially labeled
coffee
Coffee producers and farmers who grow
non-organic or non-fair-trade coffee get
paid fairly
I would buy organic, shade-grown or
fair-trade coffee to help support the
Moral
Environmental Economic Habitual Social
Obligation Knowledge
Rationality Response Status
0.57
-0.22
-0.11
-0.09
0.14
0.57
-0.24
-0.05
-0.05
0.08
-0.60
0.09
-0.15
0.16
-0.17
0.60
-0.26
0.05
-0.11
0.09
-0.62
0.18
0.01
0.01
-0.10
0.77
-0.05
0.06
-0.08
0.04
0.48
0.07
-0.11
-0.17
-0.07
0.68
-0.24
0.07
0.18
0.01
0.70
-0.08
0.18
0.04
-0.03
-0.73
0.10
-0.02
0.03
-0.12
0.57
-0.22
0.06
-0.09
-0.14
0.72
-0.23
0.21
-0.04
0.05
0.80
-0.13
0.15
0.02
0.03
-0.37
0.14
0.02
-0.11
0.05
0.75
-0.08
0.07
0.00
-0.05
28
respective industry
I would go out of my way to visit coffee
shops featuring organic, fair-trade or
shade-grown coffee
What is your opinion towards
environmental claims on products and
labels?
Most environmental claims made in
advertising or on products are true
Most environmental claims are
exaggerated
Consumers would be better off if
environmental claims on products were
mandatory
I do not believe in most environmental
claims in advertising
The USDA Organics certification
process is legitimate
Consumers are generally well-informed
about the differences between fair-trade,
organic and non-organic products
Environmental claims are intended to
better inform consumers
How do the attitudes of people around
you influence your purchases?
Friends
0.75
0.01
0.15
0.04
-0.01
0.11
0.49
0.03
-0.36
0.39
-0.04
-0.46
-0.19
0.43
-0.31
0.39
0.15
-0.11
-0.06
-0.21
-0.11
-0.38
0.11
0.33
-0.42
0.07
0.41
-0.03
-0.25
0.31
-0.08
0.19
0.47
-0.13
0.22
0.22
0.40
-0.03
-0.31
0.15
0.03
0.25
0.09
0.38
0.05
Family
-0.04
0.44
0.22
0.30
-0.07
Environmental or social responsibility
organizations
Supermarkets
0.67
-0.03
0.29
0.05
-0.18
-0.11
0.37
0.56
0.24
-0.12
Large corporations
-0.19
0.39
0.56
0.14
-0.25
Coffee shops
0.05
0.13
0.63
0.22
-0.09
How likely is it that the following groups
think you should purchase
environmentally or socially labeled
coffee products?
Friends
0.41
0.01
0.14
0.28
0.02
Family
0.37
0.18
0.36
0.10
-0.09
29
Environmental or social responsibility
organizations
Large corporations
0.28
-0.01
-0.11
0.50
0.37
-0.17
0.03
0.28
0.04
0.31
Supermarkets that stock environmentally
or socially labeled coffee products
Coffee shops that stock environmentally
or socially labeled coffee products
If you were to purchase an
environmentally or socially labeled
coffee product, how likely do you think
it is that the following statements occur?
A fair wage for coffee farmers
0.07
0.21
-0.13
0.59
0.45
0.18
0.18
-0.21
0.63
0.47
0.35
0.29
-0.24
0.11
-0.09
More retailers selling a labeled product
0.17
-0.11
-0.27
0.10
0.07
Overpaying for a product
-0.34
-0.19
-0.04
0.30
-0.08
A reduction in the use of harmful
chemicals
Higher profits to corporations
0.34
0.55
-0.09
0.04
-0.24
-0.17
-0.40
0.21
0.01
0.38
Improving my health
0.49
0.30
-0.05
-0.22
-0.19
Supporting independent farmers
0.43
0.49
-0.35
0.16
-0.27
Supporting pro-environmental groups
0.42
0.41
-0.44
0.15
-0.16
Purchasing a high-quality product
0.56
0.35
-0.27
0.03
-0.10
Eigenvalue:
9.29
3.29
2.51
2.39
1.90
Percent Variance:
21.1
7.5
5.7
5.4
4.3
30
Appendix C: Unstable Factors and their Loadings per Question
QUESTION
How do you think you compare to other
consumers when considering organic products?
I think of myself as someone who is concerned
with social issues
I think of myself as environmentally conscious
6
7
8
9
10
0.03 -0.16 -0.02 -0.01 -0.18
0.48
0.00 -0.29
0.02
0.01 -0.15
0.28
0.04
0.13 -0.24 -0.19 -0.10
I think I am a socially responsible consumer
-0.01
0.00
I do not usually concern myself with
environmental issues
To me, purchasing an environmentally or
socially labeled coffee product is:
What is your opinion concerning organic, fairtrade and shade-grown coffee?
Organic agriculture is good for the environment
-0.49 -0.13
-0.07 -0.01
0.13
0.08
0.07 -0.08
0.09 -0.05
0.32 -0.04
0.07
0.03
0.08
0.19
0.11
0.11
0.10
0.13
0.02
0.13 -0.21
0.13
0.00 -0.04
0.02 -0.08
0.15
0.12 -0.05 -0.23 -0.08
0.15 -0.07
0.15
0.23 -0.16
0.16
0.37 -0.03
13
0.12
-0.10
Sustainable agriculture is important to me
12
0.00 -0.04
I do not think of myself as an organic consumer
0.04
11
0.01
0.36 -0.10 -0.18
0.09 -0.26
The humanitarian aspect of fair-trade coffee is
important to me
I would not go out of my way to buy
environmentally or socially labeled coffee
I prefer to buy locally
-0.24
I am concerned with the impact of coffee
production on local ecosystems
I feel that I have an ethical obligation to buy
environmentally or socially labeled coffee
Coffee producers and farmers who grow nonorganic or non-fair-trade coffee get paid fairly
I would buy organic, shade-grown or fair-trade
coffee to help support the respective industry
I would go out of my way to visit coffee shops
featuring organic, fair-trade or shade-grown
coffee
What is your opinion towards environmental
claims on products and labels?
Most environmental claims made in advertising
or on products are true
Most environmental claims are exaggerated
-0.07
0.08 -0.02 -0.01
0.17 -0.06 -0.06
-0.23
0.09
0.04 -0.07
0.10 -0.04
0.34
0.04 -0.53
0.26
0.04
0.06 -0.13
0.18 -0.09
0.08 -0.07
-0.18 -0.04
0.12 -0.07
0.08 -0.16
0.14 -0.03
0.04 -0.12
0.25
0.22
-0.06
0.02
0.02 -0.01
0.01 -0.05 -0.01 -0.02 -0.10
0.20
0.06 -0.02
0.01 -0.16
-0.02 -0.19 -0.03 -0.11
0.04 -0.01
Consumers would be better off if environmental 0.19 -0.11
claims on products were mandatory
I do not believe in most environmental claims in -0.05 0.25
advertising
0.05
0.08 -0.03 -0.28 -0.07
0.07
0.20 -0.07
0.04 -0.13
0.09
0.07
0.23
0.24
0.14 -0.20
0.14 -0.03 -0.45 -0.01
0.38
0.19
0.08 -0.03
0.30 -0.06
0.21
0.09
31
The USDA Organics certification process is
legitimate
Consumers are generally well-informed about
the differences between fair-trade, organic and
non-organic products
Environmental claims are intended to better
inform consumers
How do the attitudes of people around you
influence your purchases?
Friends
-0.07
0.17 -0.14
0.21 -0.08
0.07
-0.29
0.11
0.19
0.18 -0.01 -0.34
0.14
0.01
0.29 -0.44
0.19 -0.01 -0.02 -0.21 -0.08
0.24
0.23 -0.03
0.13 -0.61
0.15
0.06
0.20
0.01
0.29
Family
0.26 -0.42 -0.04
0.18
0.34
0.18 -0.01 -0.15
Environmental or social responsibility
organizations
Supermarkets
0.16 -0.14 -0.03 -0.09 -0.09 -0.07
0.33
0.25
Large corporations
0.23
0.33 -0.01 -0.20 -0.04
Coffee shops
-0.23 -0.08 -0.20 -0.14 -0.07 -0.05
How likely is it that the following groups think
you should purchase environmentally or socially
labeled coffee products?
Friends
-0.37 -0.17
0.06
0.11 -0.27 -0.06
0.24
0.02
0.00
0.17
0.15 -0.09
0.07
0.23
0.22 -0.11 -0.35
0.03
Family
-0.13 -0.24 -0.17
Environmental or social responsibility
organizations
Large corporations
-0.03 -0.20 -0.20 -0.09 -0.23 -0.18
Supermarkets that stock environmentally or
socially labeled coffee products
Coffee shops that stock environmentally or
socially labeled coffee products
If you were to purchase an environmentally or
socially labeled coffee product, how likely do
you think it is that the following statements
occur?
A fair wage for coffee farmers
0.15 -0.03
0.08 -0.26 -0.03 -0.01 -0.05
0.04
0.10
0.33
0.15
0.46
0.05
0.30
0.09
0.32
0.15
0.06 -0.19 -0.08 -0.12
0.06
0.01
0.10
0.10 -0.07
0.11 -0.43
0.26
0.00
0.21
-0.30
0.06
0.02
0.00 -0.10 -0.03 -0.12
0.22
0.07
0.17
0.11
0.18
0.17 -0.11 -0.19
0.57
0.18
0.39
0.22
More retailers selling a labeled product
0.02
Overpaying for a product
0.18 -0.24
A reduction in the use of harmful chemicals
0.00
0.14 -0.03
Higher profits to corporations
0.07
0.01
0.14 -0.29
0.00
0.44 -0.09
0.28 -0.16
0.15 -0.07
0.05 -0.09
0.06 -0.21
0.21
0.12 -0.04
0.05
32
Improving my health
Supporting independent farmers
Supporting pro-environmental groups
Purchasing a high-quality product
Eigenvalue:
Percent Variance:
0.11
0.00
0.28
0.28 -0.06 -0.18
0.18
0.14
-0.06
0.17
0.07
0.03
0.04 -0.17
0.00
0.08
0.10
0.17 -0.02
0.21 -0.02 -0.07
0.02
-0.11
0.01
0.26 -0.05 -0.04
0.00 -0.11 -0.17
1.68
1.54
1.37
1.32
1.27
1.14
1.09
1.03
3.8
3.5
3.1
3.0
2.9
2.6
2.5
2.3
0.13
33
Appendix D: Significant Box Plots and Bar Graphs of ANOVAs between derived factors,
demographics, and reported future purchases.
Figure D1. Boxplot of the distribution of “Moral Obligation” factor based on political alignment.
Liberals are significantly more morally obligated (p-value < 0.01) with a mean of 0.24,
compared to the Moderate or Conservative mean of -0.42.
34
Figure D2. Error bars of mean “Moral Obligation” shown based on respondents’ reported future
coffee purchases (certified or non-certified). Certified coffee buyers had a mean of 0.44, which
was significantly higher than the non-certified coffee buyers’ mean of -0.61 (p-value < 0.01).
35
Figure D3. Comparative bar graph featuring percent of people who reported purchasing each
type of coffee (all the certified types—organic, fair trade and shade grown—as well as noncertified) divided by political alignment (liberal versus moderate or conservative). Moderates and
conservatives were much more likeyl to purchase non-certified coffee than liberals.
36
Figure D4. Boxplot of “Environmental Knowledge” factor divided based on gender. The male
mean (-0.22) was significantly lower than the female mean (0.11) at a p-value of 0.03.
37
Figure D5. Boxplot of the factor “Economic Rationality” divided based on gender. The male
mean (-0.25) was significantly less than the female mean (0.13) at a p-value of 0.01.
38
Figure D6. Boxplot of the factor “Habitual Reponse” divided based on respondents’ community
environment. Those living in non-urban environments were significantly more affected by
habitual response by those living in urban settings at a p-value of 0.02 (means were 0.17 and 0.17 respectively).
39
Download