Consumer Trust, Confidence, and Price Sensitivity: Drivers of Engaged Consumption in Ethical Markets

Abstract

This study investigates the dynamics of engaged consumption in ethical markets, emphasizing the roles of consumer trust, confidence, expertise, and price sensitivity. As consumer behavior increasingly reflects ethical considerations, particularly in the food sector, understanding the gap between ethical intentions and purchasing behaviors becomes paramount. We explore how consumer trust influences the engaged consumption of local products, the moderating effect of expertise on trust, and the role of price sensitivity in ethical purchasing decisions. Through a survey of 320 respondents in Saudi Arabia, our findings reveal that emotional and social values significantly enhance consumer confidence, which mediates the relationship between perceived value and engaged consumption. However, functional and monetary values do not show significant effects. Additionally, price sensitivity moderates the confidence-engaged consumption relationship, indicating that more price-sensitive consumers may hesitate to act on their ethical intentions despite having confidence in a product's ethical claims. This research offers actionable insights for businesses aiming to promote local and ethical products effectively, thereby fostering a more engaged and ethically aware consumer base.