Understanding Purchase Intention of Fair Trade Handicrafts through the Lens of Geographical Indication and Fair Trade Knowledge in a Brand Equity Model

Abstract

This study aims to investigate the effects of geographical indication (GI) and fair trade knowledge (FTK) on U.S. female consumers’ perceived brand equity and the purchase intention of fair trade apparel handicrafts. Employing a web-based experiment and survey, the study divided participants into groups exposed to brands with and without GI certification marks. A total of 206 responses were collected. A perceived brand equity model was developed, featuring elements such as perceived quality (PQ), brand awareness (BA), brand association (BS), uniqueness (UQ), and willingness to pay a price premium (PP). Structural equation modeling was used to analyze the data and validate the hypotheses. The results revealed that consumers are willing to pay a price premium for products with GI and that FTK positively impacts brand equity. Furthermore, FTK had an interactive effect with GI, enhancing PQ and BS. Increased scores in BS, UQ, and PP were also found to positively affect purchase intention. This study fills a research gap by quantitatively examining the relationship between GI, FTK, brand equity, and purchase intention in the domain of fair trade apparel handicrafts. The findings offer strategic insights for enterprises and organizations in the fair trade handicrafts sector.