A new study by Canadian business researchers suggests a novel strategy for increasing sales of ethically certified products, including coffee. Published in the Journal of Business Ethics, the research found that consumers are more willing to purchase an ethical option if it is offered at the same shelf price as its conventional counterpart, even if the package contains a smaller quantity.
The study addresses the well-documented gap between consumer intentions and actions, where many shoppers who say they want to buy ethical goods are deterred by higher prices at the point of sale. Researchers identified this as the “pain of payment,” an immediate discomfort from spending more on a product for an ethical attribute that benefits others. Through six experiments involving over 2,300 participants, the study tested an alternative to the typical price premium for certified products.
In one key experiment, when a Fairtrade-certified coffee was priced higher than a conventional bag of the same size ($6.05 vs. $4.95), 49.2% of participants chose it. However, when the Fairtrade coffee was offered in a smaller bag at the same $4.95 price, the purchase rate rose to 60.7%. The authors distinguish this transparent approach from “shrinkflation,” as it involves clearly displaying both options, allowing consumers to consciously choose the ethical product without feeling financially penalized.