Consumers care about workers

91% of consumers would pay a premium for goods labeled living wage.

Consumers are willing to pay for products labeled living wage.

91% of consumers would pay a premium for goods labeled living wage. That is the conclusion of a random survey of 320 consumers in Asheville, Sylva, Hendersonville, and Black Mountain, NC conducted by Prof. Susan Kask of Warren Wilson College.

Click below for the entire research report, co-authored by R. Fussel

https://econ.duke.edu/uploads/media_items/fussell-rachel-2011-duke-economic-symposium.original.pdf

This particular survey is a good indicator that the demand for a fair and safe labor label, such as Thayer Certified, is wide and evenly spread. The survey returned similar results across urban and rural populations. Surprisingly, the demand for living wage labels decreases for rich, highly-educated consumers.

Finally, the Warren Wilson study narrows the ideal price points for social labelling.

  • “The data shows that the total number of respondents willing to pay a price premium increases until 10 percent, and then decreases dramatically at 15 and 20 percent.”

  • “Overall, respondents mean percent willingness to pay for all living wage goods, at various price levels is 12.1%, above the original price.”

  • “The mean willingness to pay a percentage price premium for $20.00 medium priced items and $75.00 higher priced items was 13.6% and 10.8%, respectively. For occasional expensive items that cost $500.00, respondent’s mean percent willingness to pay was 9.5%.”