An approach to increase Perceived Consumer Effectiveness : Investigating the effect of Just-World Belief and empowering statements on PCE

Abstract: Consumers demand for sustainable and ethical products; products that protect the environment as well protect the well-being of workers in every way. Ethical products are a part of sustainability development where companies are obliged to follow guidelines and provide workers with good daily wages and various possibilities to enhance their life. The thesis focuses on ethical consumption and specifically takes a closer look at fair-trade tea. Fair-trade products are produced in a fair way and follow strict guidelines to make sure every worker is cared and provided a respectful life. Due to increase of sustainable products in the market, consumers have become largely aware of the consequences caused by products to the environment. However, when it comes to ethical products, consumers have a disbelief towards unfair situations workers experience. Some consumers believe labor malpractices are often exaggerated and some consumers believe that the victim actually deserves the situation. Even though some consumers would like to contribute, others tend to turn away with a thought that their purchase would not make any significant difference which leads them to not purchase fair- trade products. The thesis explores how and what factors influence such consumers’ minds, with the focus to increase PCE - Perceived Consumer Effectiveness (consumer’s belief that their purchase contributes to a positive outcome). The thesis further examines if PCE directly influences purchase intentions if Belief in Just World and empowering statements influence PCE. Results show that high belief in Just World negatively influences Perceived Consumer Effectiveness. Empowering statements increase awareness on ethical issues and decreases skepticism towards ethical products. The thesis contributes to the theory of PCE and in-store marketing techniques. Triggering PCE at the stores during the point of purchase influences consumers intentions to buy a certain product.