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Fair trade has made paying producers in poorer countries a “just” price one of its central aims, with the issue constantly in its public communiqués, from the print media to social networking sites. As most research has looked at fair trade in the South, where small producers and craft makers live, discussions of the fair price have centered on whether the wholesale prices paid to them are alleviating poverty. However, circumscribing the issue of the fair price only to its impact in the South impedes our understanding of how fair trade operates in the North, on which the system relies for its existence. Looking at fair trade from a Northern perspective, this paper sees the fair price as a partial illustration of the social processes that characterize reflexive modernity, particularly the ethical dilemmas that surround the composition of prices. But rather than focusing exclusively on activist discourse, the paper uses practice theory to build a more nuanced picture of the diverse beliefs and behaviors that the fair price is entangled with. Drawing on ethnography with people who consume and sell fair trade in the Italian city of Palermo, the paper shows how understanding what a fair price is appears to be an enigma that conceals different aspects of the fair trade network. Specifically, it reveals that the fair price is not a single but a double entity, comprising the wholesale price paid to producers, where “political” emphasis usually lies, and the fair retail price, an entity discussed far less often.

The purpose of this paper is to analyse value co-creation in the context of ethical consumption by extending the focus to customers and their relational contexts. The paper unravels the core mechanism of the entire process of value co-creation in ethical consumption by drawing from engagement and awareness as emerging topics in value co-creation perspectives. By expanding the understanding of engagement and awareness as integrating mechanisms, the paper addresses the potential for these elements to shape the holistic consumer experience in an ethical context.

The authors chose to investigate consumer experience in the ethical context of Altromercato, the top seller of Fair Trade products in Italy. Following a phenomenological approach, the authors had the opportunity to gain knowledge on the lived experiences of customers as part of the Altromercato phenomenon. To depict the most important aspects of this experience, the authors chose a thematisation based on transcripts of in-depth interviews.

Drawing from the conceptualisation of the customer as a value co-creator, the work identified two main features in understanding co-creation in an ethical context – engagement and awareness – and two secondary ones as emerging from the empirical analysis – sharing and brand meaning. The two main topics acted as drivers to favour the depiction of our results through the following categories: first, trend following; second, believing; and third, supporting. Each category provides insight into the ways customers co-create.

The study proves the inherent complexity and multidimensionality of customer interactions in an ethical context and supports the recent perspective of service scholars on the systemic and holistic nature of the value co-creation process.

Co-creation depends on roles and activities performed by customers at different touch points. This approach leads firms to strive for better understanding of the contexts shaped by the cultural, social, and relational dimensions.

This work also proves helpful to service research by clarifying how some critics have come to view value co-creation and resource integration as highly general and abstract concepts. Engagement, awareness, brand meaning, and sharing are identified in this work as the core mechanisms on which co-creation practices are based. The study supports even co-creation in ethical businesses as a values-laden concept that depends on the values and value experienced in context.