Cross-Country Analysis of Willingness to Pay More for Fair Trade Coffee: Exploring the Moderating Effect between South Korea and Vietnam

Abstract

This study aims to analyze variations in the willingness to pay more for fair trade coffee between South Korea and Vietnam. Employing the theory of planned behavior (TPB), the research delves into consumer attitudes, subjective norms, and perceived behavioral control related to increased expenditure on fair trade coffee. The investigation centers on two coffee-centric nations: South Korea, known for its substantial coffee consumption, and Vietnam, a global powerhouse in both coffee production and consumption. In this study, hypothesis testing was conducted using SmartPLS 4.0.9.5, and CFA (confirmatory factor analysis) and SEM (structural equation modeling) were used to assess each initial and second stage. In the second stage, moderating effects were examined through multi-group analysis. This study particularly explores how moral responsibility, knowledge, and involvement in fair trade coffee shape individuals’ attitudes toward FTC. Additionally, it aims to validate potential moderating effects between the two countries. While previous studies have emphasized the significance of ethical consumption, especially in business ethics, this research expands on these insights by examining fair trade coffee within the broader context of the coffee industry, encompassing both coffee-consuming and coffee-producing nations. The practical implications highlight that merely increasing knowledge about fair trade coffee is insufficient to foster a positive attitude. Instead, it underscores the importance of moral responsibility, which significantly influences attitudes toward fair trade coffee among both Koreans and Vietnamese.

1. Introduction

In contemporary society, the evolving consumption landscape has given rise to ethical concerns encompassing various dimensions, including workers’ rights, fair trade practices, and sustainability. Consequently, consumers are increasingly compelled to incorporate ethical considerations into their decision-making processes when making purchases. Ethical consumption, in essence, entails prioritizing products or services that offer social or environmental value over competitive alternatives based solely on price and quality [1,2]. Within the realm of ethical consumption, one area that has garnered significant attention is fair trade [3,4].

Fair trade endeavors to establish greater equity in international trade and is characterized by principles of communication, transparency, and mutual respect [5]. This trading approach involves consumers and distributors who ensure economic stability and improved working conditions for local producers and farmers by paying fair prices for their products. Over the long term, fair trade is believed to foster economic independence and environmental protection in developing countries [6,7].

Fair trade coffee, often referred to as “ethical coffee”, has garnered significant recognition and popularity in recent years due to its commitment to fairly compensate producers for their adherence to ethical labor practices [1,8]. However, the stark reality is that producers receive only a meager share of the proceeds, severely limiting their economic benefits. Moreover, coffee shop operators purchasing fair trade coffee are burdened with a 20–30% premium for the beans, coupled with additional expenses related to import duties and tariffs. Consequently, the price of fair trade coffee experiences a substantial increase, placing a significant financial burden on consumers. Furthermore, the lack of adequate information dissemination regarding fair trade coffee has left consumers puzzled about the underlying reasons for its elevated pricing [9].

Korea, often referred to as the “Coffee Republic”, stands out for its exceptional coffee consumption habits. In 2018, the average Korean adult consumed a remarkable 353 cups of coffee annually, which is 2.7 times higher than the global average per adult. Additionally, the Korean coffee market, as projected by the Hyundai Economic Research Institute in 2019, is set for substantial growth, with estimates indicating a rise from USD 4.9 billion in 2016 to a projected USD 7.1 billion by 2023 [10]. This market has experienced a shift towards Western consumption patterns since the 1990s, with consumers increasingly seeking cafes that offer a comprehensive experience, encompassing factors such as product quality, ambiance, and service, rather than just coffee. Korean consumers now frequent coffee shops for various purposes beyond mere coffee consumption [11].

In contrast, Vietnam, a major coffee producer, holds the second position in global coffee production, trailing only Brazil. In 2019, its coffee production surged by 3.8% year-on-year, reaching an impressive 1.82 million tons [12]. Robusta coffee dominates Vietnam’s coffee landscape, accounting for a significant 95% of the country’s total coffee production. Coffee is a key agricultural export for Vietnam, contributing 3% to the nation’s GDP in 2014 and providing livelihoods for approximately 2.6 million people [13]. Despite maintaining its status as the world’s second-largest coffee exporter since 2000, Vietnamese coffee producers face a myriad of challenges [14]. Most notably, the sustainable cultivation rate of Vietnamese coffee remains below 10%, in stark contrast to the 75% seen in Latin American coffee production [15].

The rapid growth of the coffee markets in Korea and Vietnam holds the potential to greatly improve the lives of fair trade workers worldwide and generate positive social impacts if the fair trade coffee market is well-established. Consumer willingness and roles are pivotal in achieving this [16]. To ensure actual purchases of fair trade coffee, it is crucial to understand coffee consumers’ characteristics, particularly in these countries where coffee consumption and production are at their peak. Awareness of fair trade coffee among consumers in developed countries does not always translate into increased consumption of ethical products [17,18]. Western consumers are often considered more sophisticated in terms of consumer rights and product requirements [19,20]. However, having sufficient knowledge does not guarantee ethical purchasing practices [21].

Conversely, consumers in developing countries that are coffee producers may engage in ethical consumption if they have some access to producers, even without extensive knowledge and education about ethical consumption [5]. Consumer engagement in fair trade significantly influences their purchasing behavior. Gillani et al.’s research demonstrates that nationality plays a significant role in consumer fair trade engagement, with consumers in developing countries having closer ties to marginalized producers compared to their counterparts in developed countries [5].

This study aims to answer several research questions:

• How do consumers in South Korea and Vietnam differ in their willingness to pay more for fair trade coffee?
• What are the internal and external factors influencing consumers’ attitudes, subjective norms, and perceived behavioral control regarding increased spending on fair trade coffee in these two countries?
• To what extent do recognized values and additional willingness to pay impact fair trade coffee purchase intentions and actual behavior in South Korea and Vietnam?
• How can the theory of planned behavior (TPB) framework be extended to better understand consumer behavior and decision-making related to fair trade coffee in these specific contexts?

The research gap addressed in this article is the need to understand cross-country variations in consumer willingness to pay a premium for fair trade coffee, with a specific focus on South Korea and Vietnam. It underscores the lack of comprehensive knowledge regarding how consumers in these countries, which exhibit distinct coffee consumption and production habits, perceive and respond to fair trade coffee. To achieve this, the study employs the theory of planned behavior (TPB) framework, a well-established model widely applied across various fields [22,23]. Ethical consumption decisions, such as purchasing fair trade coffee, are influenced by internal factors such as morality, attitudes, and knowledge, as well as external factors like social norms and risk perceptions. TPB helps elucidate the relationship between beliefs, attitudes, behavioral intentions, and subsequent actions. This study extends the TPB framework to explore consumer attitudes, subjective norms, and perceived behavioral control concerning increased spending on fair trade coffee in Korea, a major consumer of coffee, and Vietnam, a key coffee producer. Additionally, this research introduces recognized values and additional willingness to pay as components within the TPB to assess their impact on fair trade coffee purchase intentions and behaviors.

2. Literature Review

2.1. The Coffee Market

2.1.1. Korean Coffee Market

After Korea’s liberation from Japan in 1945, coffee became a part of Korean life. The introduction of instant coffee, an American product, post-liberation, led to the proliferation of coffee shops. By the 1970s, mass production of instant coffee and coffee beans in facilities comparable to those in advanced countries began. In the mid-1970s, Dongsuh Foods gained dominance in the domestic market, driving out illegal foreign coffee with a market share exceeding 70% and spearheading coffee localization [24]. Coffee beans gained popularity in the mid-1970s, coinciding with the 1988 Seoul Olympics, leading to a significant increase in new coffee shops. In 1999, Korea welcomed its first Starbucks store, marking the entry of foreign coffee franchise companies into the domestic market. The domestic coffee market, especially the demand for specialty coffee, has witnessed continued growth since 2010 [25]. Korea has evolved into the world’s sixth-largest coffee consumer, boasting a market worth KRW 7 trillion [10].

Presently, the domestic coffee market is undergoing a continuous Westernization of consumption patterns. Consumers now seek comprehensive cafes offering product quality, ambiance, and service. With the deepening coffee culture, consumers are willing to pay more for a special taste experience. Coffee franchises have become multi-purpose destinations for consumers beyond just coffee consumption [26]. Franchise coffee shops are changing the coffee market landscape, moving from a focus on expensive premium coffee to low-priced offerings [27]. Additionally, there is a noticeable rise in private coffee shops characterized by upscale interiors and premium coffee, coinciding with the entry of global coffee companies into the domestic market [28]. Consumers have also established a coffee culture that emphasizes individuality and self-expression through product and brand choices [29].

2.1.2. Vietnam Coffee Market

Coffee cultivation in Vietnam began in the northern region in 1857 and expanded to the central region by the late 19th century, eventually covering 10,000 hectares by 1945. The significant growth of Vietnam’s coffee industry took off in the 1970s [30]. During the 1990s, Vietnam rapidly rose to become the world’s second-largest coffee exporter, driven by the government’s development initiatives and the global demand for Robusta coffee [31]. The combination of vast inland land availability, overpopulation in coastal areas, government support, and foreign investment created Vietnam as a major player in the global coffee market. The surge in demand for Robusta coffee, primarily from multinational coffee companies, further solidified Vietnam’s position. By the 1990s, Vietnam’s coffee production aggressively expanded, growing from 3.4% of global production in 1990 to 13.5% in 2001 [32].

Presently, Vietnam contributes more than 19% to global coffee production, with small family farms being a predominant feature of the country’s coffee landscape [33]. Coffee ranks as a significant agricultural export for Vietnam, constituting 3% of its GDP in 2014 and supporting the livelihoods of approximately 2.6 million people [9]. Since 2000, Vietnam has maintained its position as the world’s second-largest coffee exporter, following Brazil, and continues to exhibit a positive outlook for the industry’s future [13]. Nonetheless, several challenges must be addressed. Currently, less than 10% of Vietnamese coffee is sustainably produced, a notable contrast to the 75% seen in Latin American coffee production [10]. The increasing global market demand poses a threat to the competitiveness of Vietnamese coffee. However, Vietnam holds a favorable position within the coffee economy, particularly with the rising demand for Robusta beans in emerging markets and for instant coffee production. Furthermore, Vietnam has a strong presence in the Chinese coffee market, accounting for 75% of Chinese coffee imports in 2013. While the Chinese coffee market is relatively small, it is one of the world’s fastest-growing coffee markets, with predictions of becoming one of the largest by 2020 [34].

2.2. Fair Trade Coffee

Fair trade seeks to address trade imbalances between developed and developing nations through equal transaction agreements between consumers and producers, with a focus on individual product characteristics and development [35,36,37]. Its primary objective is to maximize producer profits rather than consumer margins by trading fair trade products [38,39]. Profits generated through fair trade are reinvested in farmers’ well-being, social infrastructure, certification, and quality control. For instance, coffee is traded directly to producer associations under conditions that ensure fair prices per pound of raw beans and separate local premiums per pound. Up to 60% of the anticipated yield is paid in advance before harvesting. Fair trade operates a system where consumers support producers in regions marginalized by product distribution and consumption structures, providing buffers and funds for social and economic development to offset market price fluctuations [40].

Consumers interested in fair trade display altruistic consumption tendencies, valuing not only product price and quality but also environmental, ethical, and social product values [11]. They are concerned about the working conditions of laborers in developing countries involved in the production of fair trade products [41]. These consumers exhibit distinct purchasing patterns, showing a willingness to pay price premiums to ensure fair wages and establish ethical work environments [42].

Fair trade coffee, a top-selling fair trade product, gained recognition as “quality coffee” and experienced significant sales growth over the years, driven by campaigns to reward producers for their labor [8]. Fair Trade Labeling Organizations International (FLO) reported a 16% year-on-year increase in global fair trade sales to approximately USD 7.3 billion in 2015 [43]. In Korea, fair trade product sales reached USD 25 million in 2016, marking a remarkable 57% year-on-year growth. Among various fair trade products like fruits, beverages, and chocolate, coffee stands as the most consumed item [44]. Coffee, introduced to the domestic market in the late 1980s, has consistently shown the highest sales growth among fair trade products [45].

2.3. Theory of Planned Behavior (TPB)

The theory of planned behavior (TPB), developed by Ajzen in 1985 and 1991, has its roots in the theory of reasoned action (TRA) proposed by Fishbein and Ajzen in 1975 [22,46,47]. TRA is a prominent model in the field of attitudes, recognized for its role in predicting the connection between attitude and behavior. In TRA, attitude and subjective norm are central variables shaping behavioral intentions. TPB, as an extension of TRA, introduces an additional variable: perceived behavioral control. Ajzen’s TRA outlines consumer intentions by considering three key variables: attitude, subjective norm, and perceived behavioral control [5,22]. TPB is frequently compared and contrasted with other theories. Both TPB and the S-O-R theory address the relationship between internal psychological factors and behavioral responses. However, they diverge in their conceptual frameworks. TPB emphasizes individual beliefs, attitudes, subjective norms, and perceived behavioral control as predictors of behavioral intentions and actions [22,48]. In contrast, the S-O-R theory focuses on the role of external environmental stimuli in shaping internal psychological states (the organism), which subsequently lead to behavioral responses. While both theories provide insights into consumer behavior, the S-O-R theory places a stronger emphasis on the role of external stimuli, while TPB concentrates more on internal cognitive factors and social norms as behavior drivers [49,50].

Since its inception, TPB has been widely applied in understanding various human behaviors. This broad applicability stems from TPB’s foundation on a simple yet robust theoretical framework, allowing it to adapt to a wide range of human behaviors. Consequently, TPB has become a valuable tool for unraveling the complex relationship between individual beliefs, attitudes, behavioral intentions, and actual behaviors. This area of research has remained a consistent focus in social psychology, alongside TRA, solidifying TPB’s status as a representative and indispensable theory in the field.

This study expands on the TPB framework by incorporating additional factors such as moral obligation, knowledge, and involvement and investigates how these factors influence consumer attitudes, subjective norms, and perceived behavioral control in the context of fair trade coffee. It also examines the impact of these variables on consumers’ willingness to pay more for fair trade coffee. This extended framework allows for a more comprehensive understanding of consumer behavior related to fair trade products.

To investigate the impact of moral responsibility, knowledge, and involvement on attitudes, social norms, and perceived behavior control, as well as to explore how attitudes, social norm, and perceived behavior control influence willingness to pay, hypotheses were developed rooted in the theory of planned behavior, drawing insights from existing literature. These hypotheses were subsequently subjected to empirical testing through surveys administered to consumer samples in both South Korea and Vietnam.

2.3.1. Moral Obligation

Moral obligation, as defined by researchers such as Chen and Tung and Beck and Ajzen, refers to an individual’s sense of responsibility for carrying out morally specific actions when confronted with an ethical dilemma [51,52]. This perception of moral obligation plays a pivotal role in determining what behavior is considered right and is essentially a value-based judgment, as highlighted by Kohlberg [53]. It is essential to note that moral obligation stands apart conceptually from subjective norms, embodying a deep-seated sense of personal responsibility and commitment toward executing a particular action [54]. Previous studies have demonstrated that incorporating moral factors as predictors of behavior significantly enhances the accuracy of intention prediction. For instance, the research conducted by Beck and Ajzen, which explored dishonest behavior, serves as a notable example [52]. Drawing upon the analysis of these foundational concepts and insights from prior research, we formulate the following three hypotheses.

H1a. 

Moral obligation is positively associated with attitudes toward fair trade coffee.

H1b. 

Moral obligation is positively associated with subjective norms concerning fair trade coffee.

H1c. 

Moral obligation is positively associated with perceived behavioral control regarding fair trade coffee.

2.3.2. Knowledge

In the realm of consumer knowledge, individuals can be categorized into experts and beginners, a classification dependent on their level of expertise. The approach taken by these individuals in processing information can vary significantly based on their prior knowledge [55]. When consumers possess limited product knowledge, their inclination is to seek additional information, utilizing multiple sources to compensate for their lack of familiarity with the product [56]. Conversely, consumers with a higher level of product knowledge tend to rely on internal information sources, such as their own prior knowledge and past experiences, as the primary basis for their judgment. In contrast, those with lower levels of knowledge are more inclined to lean on external sources for information [57]. These distinctions in consumer knowledge and information processing lead to the formulation of the following three hypotheses for investigation.

H2a. 

Knowledge of fair trade coffee is positively associated with attitudes toward fair trade coffee.

H2b. 

Knowledge of fair trade coffee is positively associated with subjective norms concerning fair trade coffee.

H2c. 

Knowledge of fair trade coffee is positively associated with perceived behavioral control regarding fair trade coffee.

2.3.3. Involvement

Involvement, a concept often defined as the extent to which individuals perceive the importance or interest in a specific subject or situation within a particular context, is closely tied to the level of effort individuals are willing to invest in addressing associated issues [58,59]. Sherif and Cantril introduced involvement in social psychology, emphasizing the personal relevance, importance, or interest an individual attaches to products, situations, or issues due to external stimuli [60]. What sets involvement apart within this context is how individuals connect these stimuli to their lives, values, and knowledge, distinguishing it from passive learning theories, attention, or arousal [61].

Moreover, the perceived relevance is contingent on the consumer’s level of involvement, rooted in their desires, values, and interests [62]. As consumers gain knowledge, their interest in a specific product or brand grows, leading to increased engagement, especially when involvement is high, resulting in ongoing interaction with the product or brand [63]. Involvement often strengthens the relationship between consumer attitudes and purchase intentions, as well as between consumer values and satisfaction, particularly among groups well-informed about the brand [64]. Based on these observations, the following research hypotheses emerge.

H3a. 

Involvement with fair trade coffee is positively associated with attitudes toward fair trade coffee.

H3b. 

Involvement with fair trade coffee is positively associated with subjective norms concerning fair trade coffee.

H3c. 

Involvement with fair trade coffee is positively associated with perceived behavioral control regarding fair trade coffee.

2.3.4. Attitude

In the realm of consumer behavior research, the concept of attitude holds significant importance. Attitude, as defined by Ajzen, refers to the extent to which an individual evaluates a particular action favorably or unfavorably [22]. In essence, it represents a person’s mental disposition and reflects their positive or negative assessment of engaging in a specific behavior. Building on this notion, research by Taylor and Todd underscores the pivotal role of attitude in shaping behavioral intentions [65]. Their findings suggest that individuals with more positive attitudes are more likely to exhibit positive intentions toward a given action, while those with more negative attitudes tend to harbor negative intentions.

Furthermore, the impact of attitude extends to consumer decision-making processes. As Eagly and Chaiken highlight, an individual’s attitude plays a crucial role in influencing their choices regarding the purchase of products or services [66]. In essence, consumers are inclined to make purchasing decisions that align with their favorable attitudes and preferences, while avoiding products or services they hold unfavorable views about. This interplay between attitude and consumer decision-making underscores the significance of understanding and analyzing attitudes in the context of consumer behavior research. These theoretical insights lead to the hypothesis that:

H4. 

Attitudes toward fair trade coffee are positively associated with willingness to pay more for fair trade coffee.

2.3.5. Subjective Norms

A subjective norm, as defined in social psychology, encompasses the extent of social pressure exerted by an individual’s immediate social circle, encompassing family and friends, with regard to a specific behavior. This construct is closely intertwined with the prevailing opinions held by influential groups regarding a given action, rendering it a salient determinant in the decision-making process, often attributed to external pressures [46]. Moreover, subjective norms serve as a quantifiable gauge of the influence exerted by social groups that individuals take into consideration when deliberating behavioral choices [67].

Fishbein and Ajzen have contended that subjective norms encapsulate the perceived social pressures that actively encourage engagement in specific actions. In essence, subjective norms constitute the discernible viewpoints of others that continue to hold sway over decisions of significance to individuals [22,47]. These observations lead to the formulation of the following hypothesis.

H5. 

Subjective norms concerning fair trade coffee are positively associated with willingness to pay more for fair trade coffee.

2.3.6. Perceived Behavioral Control

Perceived behavioral control, as defined by Ajzen in 1991, relates to the individual’s perception of how easy or challenging it is to engage in a particular behavior [22]. When people feel they cannot control a behavior, it becomes difficult for them to intend or act on it, even if they have positive attitudes toward it. This often leads to avoiding the behavior.

This implies that, with regard to the formation of intentions regarding specific behaviors, factors such as attitudes and subjective norms of others may exert less influence in comparison to the material or non-material components, denoted as perceived behavioral control, which are imperative for the enactment of said behavior [68].

In general, when individuals believe they have a high degree of control over their actions, they are more likely to have a strong intention to engage in those actions [69]. This means that if someone feels confident in their ability to perform a particular behavior and believes they have the necessary resources and opportunities to do so, they are more inclined to intend to carry out that behavior. This concept is particularly relevant when considering consumer behavior.

When consumers assess how much control they have over various factors such as their ability to make a purchase, their access to the required resources, and their opportunities to engage in the purchasing behavior, it significantly impacts their intention to make that purchase [22]. In essence, a consumer’s perception of their control over these elements can greatly influence their decision to buy a product or service. These theoretical insights lead to the hypothesis that:

H6. 

Perceived behavioral control regarding fair trade coffee is positively associated with willingness to pay more for fair trade coffee.

This study examined the moderating effects of customers’ perceptions of Korea and Vietnam on their willingness to pay more for fair trade coffee. These moderating effects were tested using multi-group analysis, and the study compared the impact of certain variables on consumer behavior between Korean and Vietnamese perception groups. Here are the hypotheses related to the moderation effect and Proposed research model (Figure 1):

H7a. 

The moderating effect of customers’ perception of Korea and Vietnam on the relationship between moral responsibility and attitudes toward fair trade coffee.

H7b. 

The moderating effect of customers’ perception of Korea and Vietnam on the relationship between moral responsibility and subjective norms concerning fair trade coffee.

H7c. 

The moderating effect of customers’ perception of Korea and Vietnam on the relationship between moral responsibility and perceived behavioral control regarding fair trade coffee.

H7d. 

The moderating effect of customers’ perception of Korea and Vietnam on the relationship between knowledge and attitudes toward fair trade coffee.

H7e. 

The moderating effect of customers’ perception of Korea and Vietnam on the relationship between attitude and willingness to pay more for fair trade coffee.

3. Methodology

3.1. Sample and Data Collection

The data were collected in both Korea and Vietnam. The questionnaire was distributed to Korean and Vietnamese consumers through a web-based survey system (Google Drive). A convenient sampling approach was employed for this study. Data collection took place during the second and third weeks of November 2021, and the average time taken to complete the survey was approximately 15 min. After excluding incomplete responses, the data analysis included 477 completed survey responses.

3.2. Measurement

The measurement items were adopted from the literature. A five-point Likert scale was used to measure all study constructs, ranging from strongly disagree (1) to strongly agree (5). The scale was adjusted according to the study-specific objectives. MFC was evaluated using three items [4,70,71]. KFC was evaluated using four items [51,72]. IFC was evaluated using three items [4,72]. ATT was evaluated using four items [4,73]. SN was evaluated using three items [4,73]. PBC was evaluated using five items [9,74]. WPM was evaluated using three items [26,75]

3.3. Data Analysis

For demographic analysis, SPSS 23.0 was employed, and hypothesis testing was conducted using SmartPLS 4.0.9.5 [76] with bootstrapping of 5000 replicates. Bootstrapping creates subsamples (e.g., 5000) with observations drawn at random from the original dataset (with replacement).

This study followed a two-step strategy recommended by Anderson and Gerbing, which included testing a measurement model and a structural model [77]. In the initial stage, confirmatory factor analysis (CFA) was performed to assess the relationships between the measured variables for validity and reliability. The proposed model was then tested in the second stage using structural equation modeling (SEM) to elucidate the causal connections between the proposed constructs. In the second stage, moderating effects were examined through multi-group analysis.

4. Results

4.1. Sample

Among the 477 respondents, 259 (54.3%) were women. In terms of marital status, 285 (59.7%) of respondents were married and 188 (39.4%) were single. The age distribution was under 19 years (12, 2.5%), 20–24 years (274, 57.4%), 25–29 years (94, 19.7%), 30–34 years (30, 6.3%), 35–39 years (14, 2.9%), and older than 40 years (53, 11.1%). Regarding the level of education, 201 (42.1%) were college students and 168 (35.2%) held a Bachelor’s degree, 9 (1.9%) had obtained graduate degrees or were students, and 99 (20.8%) had not completed high school. As for occupations, 251 (52.6%) were college students, 22 (4.6%) were homemakers, 44 (9.4%) were professionals, 45 (9.4%) were administrative employees, 31 (6.5%) were sales employees, 31 (6.5%) were self-employed, 23 (4.8%) were production employees, and 27 (5.7%) were retired. Respondents’ monthly household incomes before tax were less than $500 (122, 25.6%), $500–$999 (74, 15.5%), $1000–$1499 (53, 11.1%), $1500–$1999 (51, 10.7%), $2000–$2499 (48, 10.1%), $2500–$2999 (23, 4.8%), and more than $3000 (106, 22.2%).

4.2. Measurement Model

SmartPLS 4.0.9.5, a software tool for conducting partial least squares structural equation modeling (PLS-SEM), was utilized in this study [76]. PLS-SEM is preferred for a wide range of theoretical and practical research areas (e.g., hospitality management, human resources management, information systems, operations management, marketing, etc.) due to its ability to handle small sample sizes, non-normally distributed data, and complex structural models, especially those involving formatively measured constructs [78,79,80]. In cases where studies involve intricate structural models and other challenging conditions, PLS-SEM, a variance-based structural equation modeling approach, is often favored over CB-SEM (covariance-based structural equation modeling) [79,81,82,83].

Reliability and validity testing of the constructs was employed to assess the measurement model’s adequacy before testing the proposed structural model.

The Cronbach’s values for the constructs ranged from 0.868 to 0.932, and the composite reliability values ranged from 0.919 to 0.957, indicating strong reliability (≥0.70) as recommended by Hair et al. [82]. Convergent validity was assessed based on two criteria [77,84]. Firstly, construct factor loadings ranged from 0.760 to 0.949. Secondly, the average variance extracted (AVE) for all seven constructs ranged from 0.705 to 0.880, surpassing the acceptable threshold of 0.5 [84,85]. Consequently, all constructs in the proposed model exhibited satisfactory convergent validity. Descriptive statistics for the constructs are summarized in

Table 1. Construct measurement (N = 477).

Constructs	Measurement Items	Factor Loading	Composite Reliability	Cronbach’s Alpha	AVE
MFC	I feel morally obliged to buy fair trade coffee.	0.932	0.948	0.918	0.859
	I feel it as my moral duty to buy fair trade coffee.	0.934
	I feel that I have an ethical obligation to reduce consumption of unfair trade coffee.	0.913
KFC	I know a lot about fair trade coffee.	0.930	0.950	0.930	0.826
	I feel knowledgeable about fair trade coffee	.0.914
	Among my circle of friends, I’m one of the “experts” on fair trade coffee.	0.874
	Compared to most other people, I know more about fair trade coffee.	0.917
IFC	I like to learn about fair trade coffee.	0.905	0.924	0.877	0.803
	I concentrate on the fair trade coffee.	0.916
	I want to know more about fair trade coffee	0.867
ATT	Purchasing fair trade coffee is beneficial.	0.896	0.931	0.901
	Purchasing fair trade coffee is good.	0.888			0.771
	Purchasing fair trade coffee is wise.	0.868
	Purchasing fair trade coffee is enjoyable.	0.860
SN	Most people who are important to me (friends and families) think that I should purchase fair trade coffee.	0.907	0.919	0.868
	I believe people around me want me to purchase fair trade coffee.	0.913
	Most people who are important to me (friends and families) have purchased fair trade coffee before.	0.848			0.792
PBC	I am confident that I would use fair trade coffee even if another person advised me to use non-fair trade coffee.	0.849	0.922	0.895
	I am sure that I would be able to make a difference by using fair trade coffee.	0.850
	Using fair trade coffee is entirely within my control.	0.760
	I am confident that I would use fair trade coffee in future.	0.882			0.705
	I have the resources, knowledge, and ability to use fair trade coffee.	0.852
WPM	I am willing to pay a premium fee for fair trade coffee.	0.939	0.957	0.932
	I will pay more for the fair trade coffee product.	0.927
	I intend to pay a premium fee for fair trade coffee.	0.949
					0.880

Note: MFC = moral responsibility regarding FC (fair trade coffee); KFC = knowledge of FC; IFC = involvement in FC; ATT = attitude toward FC; SN = subjective norm; PBC = perceived behavioral control; WPM = willingness to pay more for FC.

.

The Fornell–Larcker criterion and the heterotrait–monotrait (HTMT) ratio criterion were utilized to assess discriminant validity [82,84,86,87]. According to the Fornell–Larcker criterion, discriminant validity is established when the square root of the average variance extracted (AVE) for a concept exceeds the correlation between any two constructs [84,86]. In our analysis, the square root of the AVE for each construct exceeded the correlations between the constructs, as demonstrated in

Table 2. Results of discriminant validity (N = 477).

Measure	MFC	KFC	IFC	ATT	SN	PBC	WPM
Fornell–Larcker criterion
MFC	0.927 *
KFC	0.524	0.909 *
IFC	0.605	0.531	0.896 *
ATT	0.658	0.316	0.533	0.878 *
SN	0.619	0.605	0.564	0.537	0.890 *
PBC	0.750	0.493	0.646	0.728	0.655	0.839 *
WPM	0.660	0.433	0.598	0.686	0.618	0.776	0.938 *
Heterotrait–monotrait (HTMT) ratio **
MFC
KFC	0.563
IFC	0.674	0.586
ATT	0.721	0.335	0.595
SN	0.693	0.674	0.645	0.606
PBC	0.822	0.527	0.725	0.812	0.735
WPM	0.714	0.461	0.660	0.746	0.687	0.846
Mean	3.096	2.443	3.040	3.481	2.763	3.265	3.175
SD a	1.009	1.081	0.998	0.934	1.007	0.862	1.045
AVE	0.859	0.826	0.803	0.771	0.792	0.705	0.880

Note: * Diagonal elements are each construct’s AVE squared. ** The HTMT threshold is set at 0.90, ^a standard deviation. MFC = moral responsibility regarding FC (fair trade coffee); KFC = knowledge of FC; IFC = involvement in FC; ATT = attitude toward FC; SN = subjective norm; PBC = perceived behavioral control; WPM = willingness to pay more for FC.

.

The study adopted a HTMT threshold of 0.90, which is considered superior to the Fornell–Larcker criterion, especially when dealing with conceptually similar constructs. For constructs with greater dissimilarity, a conservative threshold of 0.85 may be more appropriate, while for constructs that are experimentally challenging to distinguish, a more lenient HTMT threshold can be employed [82,87]. As shown in Table 2, all HTMT values for the constructs were below 0.85, confirming the establishment of discriminant validity.

In summary, the CFA results demonstrated satisfactory construct validity and reliability.

4.3. Structural Model Testing

SmartPLS 4.0.9.5 was utilized to test the proposed hypotheses within the research framework [76]. The findings indicated that the proposed model can accurately predict FC attitude (R² = 47.0%), FC subjective norm (R² = 51.2%), FC perceived behavioral control (R² = 62.3%), and willingness to pay extra for FC (R² = 64.9%).

Furthermore, the suggested model demonstrated predictive capabilities for FC attitude (Q² = 0.459), FC subjective norm (Q² = 0.501), FC perceived behavioral control (Q² = 0.616), and willingness to pay more for FC coffee (Q² = 0.490) [88]. The blindfolding process was employed to estimate the Q² values, also known as Stone-Q² Geisser’s values, which quantify the model’s out-of-sample predictive power or predictive relevance [76,89,90].

The results for H1a, H1b, and H1c, which examine the impact of FC moral responsibility (MFC) on customers’ FC attitude (ATT) (0.566; p < 0.001), FC subjective norm (SN) (0.332; p < 0.001), and FC perceived behavioral control (PBC) (0.549; p < 0.001), demonstrated positive and significant coefficients. This indicates that customers’ sense of moral responsibility positively influenced their attitude toward FC. However, the results show that FC knowledge (KFC) had a significantly negative effect on ATT (−0.113; p < 0.05) and no significant effect on PBC (0.053; p > 0.05), failing to support H2a and H2c. Nevertheless, FC knowledge (KFC) had a positive and significant coefficient with SN (0.332; p < 0.001).

The results for H3a, H3b, and H3c, which examine the influence of customers’ FC involvement (IFC) on ATT (0.250; p < 0.001), SN (0.187; p < 0.001), and PBC (0.286; p < 0.001), also showed significant and positive relationships. This suggests that as customers perceive fair trade coffee as a positive contributor to society, their attitude becomes more favorable. Therefore, H1a, H1b, H1c, H2b, H3a, H3b, and H3c received support.

H4, which examined the influence of customers’ ATT on willingness to pay more for FC (WPM), was supported with significant and positive results (0.235; p < 0.001). Similarly, H5, which explored the impact of customers’ subjective norm (SN) on WPM, also showed a significantly positive relationship (0.167; p < 0.001), thereby supporting H5. Additionally, H6, which investigated the effect of customers’ perceived behavioral control (PBC) on WPM, yielded significant and positive results (0.496; p < 0.001), confirming H6. Figure 2 and

Table 3. Standardized parameter estimates ⁽¹⁾.

Hypothesis	Path	Path Coefficient	t-Value	Result
H1a	MFC → ATT	0.566	12.277 ***	Supported
H1b	MFC → SN	0.332	6.711 ***	Supported
H1c	MFC → PBC	0.549	13.072 ***	Supported
H2a	KFC → ATT	−0.113	2.504 *	Not Supported
H2b	KFC → SN	0.332	6.761 ***	Supported
H2c	KFC → PBC	0.053	1.412	Not Supported
H3a	IFC → ATT	0.250	4.625 ***	Supported
H3b	IFC → SN	0.187	3.548 ***	Supported
H3c	IFC → PBC	0.286	6.631 ***	Supported
H4	ATT → WPM	0.235	4.294 ***	Supported
H5	SN → WPM	0.167	3.743 ***	Supported
H6	PBC → WPM	0.496	8.507 ***	Supported
R2	ATT = 47.0%	SN = 51.2%	PBC = 62.3%	WPM = 64.9%
Q2	ATT = 0.459	SN = 0.501	PBC = 0.616	WPM = 0.490

Note: ⁽¹⁾ N = 477; MFC = moral responsibility regarding FC (fair trade coffee); KFC = knowledge of FC; IFC = involvement in FC; ATT = attitude toward FC; SN = subjective norm; PBC = perceived behavioral control; WPM = willingness to pay more for FC; critical coefficient (t-value) < 1.96 indicates non-significant relationship; * p < 0.05, *** p < 0.001.

illustrate the proposed relationships, path coefficients, and the significance of these paths.

In this study, it was determined that knowledge about fair trade coffee had no significant impact on attitudes towards fair trade coffee or perceived behavioral control over fair trade coffee. These findings align with results from prior research, as indicated by [91]. Perez and de los Salmons studied the influence of fair trade information and consumer knowledge on Spanish consumers’ attitudes and purchase intentions regarding fair trade products [91]. They found a general lack of consumer knowledge about fair trade in Spain, mainly due to limited product information availability. This research underscores the significance of information and communication in shaping consumer attitudes and intentions, particularly for ethical products. Interestingly, perceptions of information accessibility had a negative impact on consumer concern for fair trade, and the available information did not effectively reduce consumer skepticism.

On the other hand, Beldad and Hegner suggested that moral obligation and self-identity influence FT product purchase intentions, aligning with the results of this study [76]. In this research, among moral responsibility, involvement, and knowledge, moral responsibility had the most significant impact on attitude, and attitude was found to influence the willingness to pay more for fair trade coffee. However, unlike Beldad and Hegner, who stated that the impact of subjective norm on FT product purchase intentions is moderated by the consumer’s gender, in this study, it was observed that perceived behavioral control, attitude, and subjective norm, in that order, influenced the willingness to pay more for fair trade coffee, with the impact of subjective norm being relatively weaker [72]. Pelsmacker and Janssens examined factors influencing a model for fair trade buying behavior among Belgians [92]. Interestingly, it was found that product interest and concern had the most significant impact, while the influence of knowledge, quality of information, and quantity of information appeared relatively lower. Moreover, scepticism, on the other hand, was shown to have a negative effect. In other words, it can be said that interest in and concern about fair trade products play a more crucial role in fair trade buying behavior than knowledge.

Moderating Effects of the Customers’ Perceptions of Korea and Vietnam

The proposed moderating hypotheses in the research framework were tested using multi-group analysis (one-tailed test) with SmartPLS 4.0.9.5 [76]. These hypotheses aimed to explore differences in the effect of customers’ perceptions of fair trade coffee on their willingness to pay more for FC, considering different groups (Korea vs. Vietnam). Specifically, H72a, H73a, H73b, H74, and H76 were assessed by statistically comparing the corresponding path coefficients within the model. The p-values representing the differences in path coefficients between the Korean and Vietnamese perception groups are presented in

Table 4. Standardized parameter estimates for the moderating effects ^(1) a.

H7	Path	Korea (N = 286)		Vietnam (N = 191)		Kor-Vie p-Value *	Result
		Path Co.	t-Value	Path Co.	t-Value
H71a	MFC → ATT	0.551	9.843	0.588	8.160	0.341	Not supported
H71b	MFC → SN	0.395	5.937	0.301	4.232	0.166	Not supported
H71c	MFC → PBC	0.557	10.756	0.570	8.001	0.432	Not supported
H72a	KFC → ATT	0.015	0.263	−0.142	2.183	0.037 *	Supported
H72b	KFC → SN	0.257	3.446	0.275	4.386	0.431	Not supported
H72c	KFC → PBC	0.074	1.472	−0.018	0.303	0.118	Not supported
H73a	IFC → ATT	0.176	2.505	0.358	4.384	0.045 *	Supported
H73b	IFC → SN	0.070	1.047	0.382	4.599	0.002 **	Supported
H73c	IFC → PBC	0.229	4.119	0.367	5.731	0.051	Not supported
H74	ATT → WPM	0.168	2.673	0.392	3.922	0.030 *	Supported
H75	SN → WPM	0.103	2.024	0.233	2.861	0.089	Not supported
H76	PBC → WPM	0.588	9.148	0.309	3.515	0.007 **	Supported

Note: ^(1) a Kor-Vie one-tailed p-value using MGA; MFC = moral responsibility regarding FC (fair trade coffee); KFC = knowledge of FC; IFC = involvement in FC; ATT = attitude toward FC; SN = subjective norm; PBC = perceived behavioral control; WPM = willingness to pay more for FC; critical coefficient (t-value) < 1.96 indicates non-significant relationship; * p < 0.5, ** p < 0.01.

.

After examining the moderating effects, it was determined that moral responsibility for fair trade coffee had a similar impact on attitude, subjective norm, and perceived behavioral control in both the developing country, Vietnam, and the developed country, South Korea. However, the influence of knowledge on fair trade coffee had a more significant effect on attitude among Koreans compared to Vietnamese. Involvement in fair trade coffee had a greater impact on attitude and subjective norm among Vietnamese compared to Koreans. Furthermore, the influence of attitude towards fair trade coffee on the willingness to pay more was also more pronounced among Vietnamese than Koreans. This difference can be attributed to Vietnam’s role as a coffee-producing country, leading to a relatively higher concern for coffee farmers among Vietnamese compared to Koreans. Notably, the impact of perceived behavioral control on the willingness to pay more was higher for Koreans than for Vietnamese.

The results demonstrate that the path coefficient from the MFC to ATT in the Korean perception group was not significantly greater than that in the Vietnamese perception group (K = 0.551 vs. V = 0.588; p > 0.05), from the MFC to SN (K = 0.395 vs. V = 0.301; p > 0.05), from the MFC to PBC (K = 0.557 vs. V = 0.570; p > 0.05), from the KFC to SN (K = 0.257 vs. V = 0.275; p > 0.05), from the KFC to PBC (K = 0.074 vs. V = −0.018; p > 0.05), from the IFC to PBC (K = 0.229 vs. V = 0.367; p > 0.05), and from the SN to WPM (K = 0.103 vs. V = 0.233; p > 0.05) failing to support H7a and H7e. However, the results show that in the Korean perception group, the path coefficient from the KFC to ATT (K = 0.015 vs. V = −0.142; p < 0.05) and from the PBC to WPM (K = 0.588 vs. V = 0.309; p < 0.001) were significantly higher than those in the Vietnamese perception group, supporting H72a and H76. The results demonstrate that the path coefficients from the IFC to ATT (K = 0.176 vs. V = 0.358; p < 0.05), from the IFC to SN (K = 0.070 vs. V = 0.382; p < 0.001), and from the ATT to WPM (K = 0.168 vs. V = 0.392; p < 0.05) in the Korean perception group were significantly lower than those in the Vietnamese perception group, supporting H73a, H73b, and H74.

5. Discussion and Conclusions

5.1. Discussion

In the global context, Korea ranks as the fifth-largest consumer of coffee [10], while Vietnam holds the position of the world’s second-largest coffee producer after Brazil [12]. Vietnam not only exhibits substantial coffee production and export volumes but also boasts a considerable domestic coffee consumption rate. Moreover, Vietnam’s coffee market encompasses a wide variety of coffee types available in cafes, and it also features a significant market for instant coffee, with popular brands such as G7. Nevertheless, it is noteworthy that both Korea and Vietnam share a common characteristic of having remarkably low levels of awareness and interest in fair trade coffee.

Therefore, the primary objective of this study, grounded in the theory of planned behavior, was to scrutinize the impact of attitudes toward fair trade coffee (FTC), subjective norms, and perceived behavioral control on the willingness to pay more for FTC. Our investigation was centered on two distinct coffee-centric nations: South Korea, renowned for its significant coffee consumption, and Vietnam, a global powerhouse as both a coffee producer and consumer. In particular, we delved into how moral responsibility, knowledge, and involvement in FTC shape one’s attitude toward FTC. Furthermore, we aimed to validate potential moderating effects between South Korea and Vietnam.

A summary of the findings of this study is as follows: moral responsibility and involvement were found to influence attitude toward FTC, while knowledge did not show any significant impact on attitude toward FTC. Additionally, it was noted that moral responsibility had a more substantial effect on attitude than involvement. The sequence of influence on the willingness to pay more was perceived behavioral control, attitude, and subjective norm. Subjective norm was influenced by all three factors: moral responsibility, knowledge, and involvement. Both moral responsibility and involvement were found to affect perceived behavioral control, while knowledge did not exert any influence on perceived behavioral control.

The implication of this study is that simply increasing knowledge about FTC does not necessarily result in a more positive attitude toward FTC. It is crucial to conduct in-depth research to understand the underlying reasons for this issue and work towards improvements, as indicated by these findings.

Meanwhile, the results of verifying the moderating effects between South Korea and Vietnam showed that moral responsibility’s impact on attitude toward FC was high in both countries, with no significant difference. The influence of subjective norm on attitude toward FC also did not exhibit statistically significant differences between the two nations. On the other hand, knowledge about FC had a higher impact on attitude toward FC in Korea compared to Vietnam, although the path coefficient value was minimal. Perceived behavioral control had a more substantial effect on willingness to pay more for FC in Korea than in Vietnam. In contrast, it was found that involvement in FC had a greater influence on attitude toward FC and that attitude toward FC had a more pronounced effect on the willingness to pay more for FC in Vietnam.

The study revealed that the influence of perceived behavioral control on the willingness to pay more for FC was stronger in Korea than in Vietnam. This suggests that Koreans have greater confidence in their ability to choose to purchase FC, believe they possess the necessary resources, knowledge, and skills to use FC, and perceive a higher level of self-control when it comes to paying more for FC. Perceived behavioral control refers to an individual’s expectation that they can effectively perform a particular behavior [22,23]. Therefore, if strategies can be devised to encourage consumers to willingly choose FC, Koreans are likely to be more willing to pay a premium for it. Achieving this may involve making FC more appealing to consumers by focusing on aspects such as taste, aroma, quality, packaging, and other related factors.

However, the stronger impact of involvement in FC on attitude toward FC and the more pronounced influence of attitude toward FC on the willingness to pay more for FC in Vietnam compared to Korea can be attributed to the fact that, despite being the world’s second-largest coffee-producing country, many Vietnamese are just becoming acquainted with FC. Consequently, Vietnamese individuals tend to exhibit higher levels of involvement with FC as they are eager to delve deeper into fair trade, acquire more knowledge, and pay closer attention to it. Given that this heightened involvement with FC also affects attitude toward FC, it becomes imperative to formulate strategies aimed at increasing Vietnamese individuals’ engagement with FTC.

Moreover, the greater influence of attitude toward FC on the willingness to pay more for FC in Vietnam compared to Korea can also be elucidated by the substantial number of coffee producers in Vietnam. If the purchase of fair trade coffee is perceived as advantageous, positive, enjoyable, and prudent, it can result in more significant benefits flowing to coffee farmers within one’s own country. Consequently, it is reasonable to infer that the willingness to pay more for FC is higher among Vietnamese than among Koreans.

The inter-country dissimilarities between South Korea and Vietnam regarding fair trade coffee can be interpreted primarily in two ways. First, it can be attributed to the distinction between a coffee-consuming country and a coffee-producing country. Vietnam ranks as the world’s second-largest coffee producer, leading to a higher level of interest and attachment to Vietnamese coffee farmers. This, in turn, may result in a greater impact of involvement in fair trade coffee on attitude toward fair trade coffee and a more substantial influence of attitude toward fair trade coffee on the willingness to pay more for fair trade coffee compared to South Korea. Many previous studies have indicated that attitude does not always necessarily have a positive effect on behavioral intention; specific references should be provided to support this statement. This dissimilarity between attitude and behavior is especially relevant in the context of ethical products. However, due to the unique affection that Vietnamese individuals hold for their country’s impoverished coffee farmers, it is reasonable to assume that this impact relationship is more significant in Vietnam compared to South Korea.

Second, it can also be interpreted as the difference between developed and developing countries. Perceived behavioral control is a person’s expectancy that performance of the behavior is within his/her control [23]. Gross national income (GNI) per capita is an indicator used to measure the living standards of a nation’s citizens. GNI (gross national income) shows a significant disparity between South Korea and Vietnam. GNI per capita in 2022 in Korea was USD 35,990, while in Vietnam it was USD 12,810 [93]. Due to such disparities in economic levels, the influence of perceived behavioral control on the willingness to pay more for FTC when purchasing FTC can be expected to be greater for Koreans compared to Vietnamese. In other words, even if they desire to make an additional payment, if it is not within their control, it can be challenging to purchase FTC while making an additional payment.

The fair trade concept originated in advanced nations such as the UK and the European Union in the 1950s. It emerged due to increasing awareness that multinational corporations were profiting from the labor of those directly involved in product production. Fair trade primarily started in the United States and Europe. Its objective is to recognize the overlooked value of labor and promote sustainable development in underdeveloped countries, particularly those in the third world [1,8]. Fair trade encompasses various products, including coffee, chocolate, sugar, handicrafts, and more [94]. Unlike traditional free trade, fair trade principles prioritize opportunities for economically disadvantaged groups, transparency, equitable pricing, gender equality, healthy working conditions, and environmental sustainability.

Southeast Asia, including Vietnam, faced European colonialism during the 19th century. Vietnam, in particular, was invaded by France in 1867 and subsequently became a French colony from 1884 to 1945, enduring French influence for nearly eight decades. Coffee cultivation also commenced under French colonial rule [95].

Nonetheless, a significant issue lies in the fact that the concept and sale of fair trade coffee predominantly cater to consumers in advanced nations. Meanwhile, the producers and consumers in coffee-producing countries, who should benefit from fair trade, often remain unaware or unfamiliar with it. Addressing and improving this situation is essential.

While Koreans are avid coffee consumers, their exposure to fair trade is limited, resulting in a lack of awareness and knowledge about fair trade coffee. There is a general disinterest in both producers and fair trade practices. Despite Korea’s rapid economic growth, there is a prevailing perception that societal, cultural, and ethical consumption awareness lags behind this progress. Consequently, discussions about fair trade coffee primarily occur among specific stakeholders, including organizations, associations, and social activists, limiting the broader conversation on these issues. Therefore, it is crucial for major restaurant corporations with franchise chains to actively engage in promoting fair trade coffee, instilling its value and awareness among Korean consumers, and ensuring its accessibility in their establishments.

5.2. Theoretical Contribution

The theoretical contribution of this study is that, first, fair trade coffee was studied in the hospitality industry. Preferential studies related to fair trade coffee have been dealt with in the field of business ethics. However, despite the large growth of the coffee market and it being an important part of the food service industry, little research has been done on fair trade coffee.

Second, the study of fair trade coffee was conducted in Asia, in Korea and Vietnam. Some studies on fair trade coffee have been conducted in Western countries such as the United Kingdom and the United States, but few studies have been conducted on fair trade coffee in Eastern countries. Western countries, such as the United Kingdom and the United States, have a reflective history of colonial rule in Africa and Asia, and are more aware of selling and consuming fair trade coffee with a sense of ethical responsibility. On the other hand, little research has been conducted in Asian countries, and with Korea growing into the world’s fifth-largest coffee consumer and Vietnam growing into the world’s second-largest coffee producer, it was time for fair trade coffee research in Asia and we performed it.

Third, it is of academic significance that the perception of fair trade coffee of consumers in coffee consuming countries and coffee producing countries was compared and studied using the extended theory of planned behavior. In general, prior research on coffee was conducted from the consumer’s point of view or from the producer’s point of view. However, no comparative study has been conducted on how factors affecting the intention to pay for fair trade coffee differ between coffee consuming countries and coffee producing countries. In this study, the academic contribution in that part was revealed.

Fourth, it was discovered that knowledge of fair trade coffee does not affect attitudes or perceived behavioral control regarding fair trade. In other words, it is not meaningful to educate on fair trade coffee itself simply to enhance the knowledge of fair trade coffee.

Finally, it was discovered that the moral responsibility regarding fair trade coffee had the greatest impact on consumer attitudes, perceived behavior control, and subjective norms regarding fair trade coffee. Therefore, a follow-up study is needed on ways to increase consumers’ moral responsiveness to fair trade coffee.

5.3. Practical Implications

The practical implication of this study is that simply increasing knowledge is not effective to form a favorable attitude toward FTC. It was found that, rather than knowledge, moral responsibility concerning FC had a great influence on the attitude toward FC for both Koreans and Vietnamese, so various programs and activities are needed to increase the moral responsibility regarding fair trade coffee.

Fair trade coffee refers to coffee from poor coffee growers in the third world that is traded at a fair price. Most coffee is grown by poor farmers in poor countries. However, poverty and labor exploitation by third-world producers continue because large corporations and middlemen buy this coffee at a low price and sell it to consumers at a high price due to unfavorable trade regulations. As a result, fair trade coffee was created with the aim of ensuring the lowest price of coffee based on direct transactions between producers and consumers and pursuing a more equitable and just relationship in international trade, such as long-term contracts with producers. It provides favorable conditions for marginalized producers and workers in underdeveloped countries and protects their rights. In other words, the distribution method is unique, not the taste or aroma.

Recently, as concerns about corporate social responsibility (CSR) have grown, interest in ESG management has grown. ESG is a combination of the first letters of environmental, social, and governance, and stands for eco-friendly management, social responsibility, and transparent governance of a company. ESG has been widely used as a word to refer to the importance of corporate responsibility since 2020. ESG management helps companies fulfill their social responsibilities and pursue sustainable management. In addition, it helps increase corporate value, and investors and consumers are more likely to make decisions in consideration of the company’s ESG performance, which can strengthen corporate competitiveness.

Until now, only the environmental aspect of ESG has been emphasized. However, companies should also actively consider social responsibility. Fortunately, large Korean companies are showing interest in fair trade products as part of activities related to social responsibility related to ESG.

Previously, to purchase fair trade products, some products could only be bought by ordering online or visiting large discount stores such as E-Mart and Homeplus. There was also a fair trade shop run by the International Fair Trade Organization, but it was less accessible because it had to be visited in person.

Recently, the number of distributors and retailers handling fair trade products has increased, making it easier to obtain fair trade products. As fair trade partners, brands familiar to us such as Shinsegae, SPC, and Starbucks stand out. In particular, many franchise cafes are attempting to use fair trade certified beans as there is discussion of fair trade as essential for ESG management of food and beverage brands.

Lotte GRS introduced fair trade certified beans to its coffee franchise Angelinus in 2019. In the same year, it received a plaque of appreciation from an International Fair Trade Organization producer for efforts to develop new coffee products using Fair Trade certified beans, and promised to expand the use of Fair Trade certified beans in response. To implement this, fair trade certified beans were introduced in turn to brands such as Lotteria and Krispy Kreme Donut. It is hoped that the results of this study will contribute to this movement.

5.4. Limitations and Future Research

The limitations and future research directions of this study include the fact that it focused on Vietnam, the second-largest coffee producer globally. However, several constraints, such as the COVID-19 situation, language limitations, and limited accessibility to coffee farmers from minority groups in the highland regions of Vietnam, hindered the inclusion of Vietnamese coffee farmers as direct research subjects in this study. Therefore, this can be considered a limitation of this study. In future research, conducting a study directly involving local Vietnamese coffee farmers is expected to yield more meaningful research results. Additionally, it would be beneficial to conduct comparative research with countries where the concept of fair trade coffee is more universally recognized, such as the UK, the European Union, and the United States.