The Role of Fair Trade Trust on the Relationship of Fair Trade Knowledge, Fair Trade Adhesion, and Willingness to Pay Fair Trade Premium: The Case of Turkey

Abstract

Nowadays, the increase of competition has made it difficult for small-scale producers and farmers to carry on their activities in the face of big business. These challenges have started to bring significance to fair trade, which aims to bring more equal footing to trade. This study investigates the impacts of fair trade knowledge on fair trade adhesion and on willingness to pay its premium cost, and the effect of a sense of trust in fair trade on these impacts. The study's first model examines the relationships among fair trade knowledge, fair trade adhesion, and sense of trust in fair trade; the second model examines the relationships among fair trade knowledge, willingness to pay its premium, and sense of trust in fair trade. The results obtained in the study revealed that fair trade knowledge has an impact on fair trade adhesion, and that fair trade trust has a partial mediating effect on this relationship. Additionally, the study's results show that fair trade knowledge affects wi)