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Using a Modified Payment Card Survey on Chinese Consumers’ Willingness to Pay for Fair Trade Coffee: Would the Starting Point Matter

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  • Yang, Shang-Ho
  • Hu, Wuyang

Abstract

Coffee consumption in China is increasing rapidly over the recent years. This study offers one of the few initial attempts to not only understand general consumption behavior associated with Chinese coffee, but to explore the viability of niche markets for coffee with the credence attribute “fair trade”. A modified payment card approach was adopted as the consumer willingness to pay elicitation method. Survey results of 564 consumers from the city of Wuhan, China suggest a positive attitude toward coffee as an alternative drink and a willingness to pay a premium for “fair trade” coffee. This study also explores and describes the potential impact of starting point bias, which has been relatively well documented in the dichotomous choice literature but has not been thoroughly addressed in a payment card context.

Suggested Citation

  • Yang, Shang-Ho & Hu, Wuyang, 2011. "Using a Modified Payment Card Survey on Chinese Consumers’ Willingness to Pay for Fair Trade Coffee: Would the Starting Point Matter," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103720, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea11:103720
    DOI: 10.22004/ag.econ.103720
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    References listed on IDEAS

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    1. Galarraga, Ibon & Markandya, Anil, 2004. "Economic techniques to estimate the demand for sustainable products: a case study for fair trade and organic coffee in the United Kingdom," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 4(07), pages 1-26.
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    Keywords

    Agribusiness; Consumer/Household Economics; Food Security and Poverty; International Development; Marketing; Research Methods/ Statistical Methods;
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