Fair Trade branding as a purchase criterion

Abstract: Background: In the 1970’s, the first concerns regarding manufacturing pollu-tion headed off in Sweden and an enormous demand was cre-ated. The result came to be an enhanced consumption of ingredi-ent branded products such as KRAV, Bra Miljöval and The Swan to mention a few. Fair Trade entered the Swedish shelves in 1996 which gave the consumers the possibility to buy products and contribute to better conditions for farmers and employees in de-veloping countries. Problem: In 1995 a research was performed, which showed that 50 percent of the respondents did not buy products with for instance an en-vironmental concerned label due to the significantly higher price. Some argue against this and believe that it is more of a marketing issue. Customers have become more aware in their shopping and, in order to keep them, companies must meet their demands by paying more attention to how they run their business. Purpose: The aim with this thesis is to investigate why managers make decisions to purchase ingredient branded products, particulary Fair Trade. Method: To accomplish this thesis a qualitative approach has been applied with the intention to describe the result from performed tele-phone and personal interviews with companies within chain res-taurants, hotels, grocery stores, and textile retail stores. Conclusion: The study demonstrated that the decision to introduce Fair Trade labelled products depended on factors such as; the introduction year of these products, the history of the company and core values. Managers at the selected companies decided to purchase products with the ingredient brand Fair Trade for different rea-sons. Either since they had a long history of concern for fair production and rooted values or due to that the introduction of these products contributed to a good business image or to clean the company’s history.