The company's board of directors knows that the prices for fair trade products tend to be higher than the market prices. The board wants to hear from Andy about what strategy he is going to use to price the new chocolate brand in Belgium and how that compares with the pricing strategy in the domestic market. One thing that Andy learned in graduate school is that prices have a strong influence on product demand, but he also learned that there are other (psychological) factors that motivate consumers to buy a specific product; it is in this context that Andy expects to influence the Belgian market for his fair trade-labeled chocolates. Andy has asked you to study the following articles dealing with the economics of fair trade, consumer attitudes toward fair trade, and the fair trade of chocolate.
Primary Task Response: Within the Discussion Board area, write 500-600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas:
Write a summary and conclusion of your findings, including an explanation of which pricing strategy is more appealing and why.
The following articles may be found in the ABI/INFORM Global database by the Document ID number:
Document ID: 695028611
Blowfield, M. (2003). Ethical supply chains in the cocoa, coffee and tea industries. Greener Management International, 43,15-24.
Document ID: 1093087531
Steinrücken, T., & Jaenichen, S. (2006). Does the fair trade concept work? An economic analysis of social labels. Aussenwirtschaft, 61(2), 189-209.
The following articles may be found in the Business Source Premier database by the Document ID number:
Document ID: 1051282841
De Pelsmacker, P., Janssens, W., Sterckx, E., & Mielants, C. (2006). Fair-trade beliefs, attitudes and buying behaviour of Belgian consumers. International Journal of Nonprofit and Voluntary Sector Marketing, 11(2), 125-138.