IDEAS home Printed from https://ideas.repec.org/p/ags/aaea12/124360.html
   My bibliography  Save this paper

Product Information and Willingness-to-Pay: A Case Study of Fair Trade Coffee on Chinese Market

Author

Listed:
  • Yang, Shang-Ho
  • Guan, Huanda
  • Hu, Wuyang
  • Liu, Yun

Abstract

This study investigates variant responses of Chinese consumers on the willingness-to-pay for fair trade coffee given different amount of product information. Respondents were randomly assigned to one of three different information treatments in a recent survey conducted in China. The information explained various aspects on fair trade and ranged from basic to comprehensive. Results indicated that consumers are generally willing to pay additional amount for fair trade coffee. Information played an important role in determining what types of consumers are responsive to fair trade coffee. However, the amount of information provided and consumer willingness-to-pay do not follow a linear relationship.

Suggested Citation

  • Yang, Shang-Ho & Guan, Huanda & Hu, Wuyang & Liu, Yun, 2012. "Product Information and Willingness-to-Pay: A Case Study of Fair Trade Coffee on Chinese Market," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124360, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea12:124360
    DOI: 10.22004/ag.econ.124360
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/124360/files/AAEA%202012%20Poster.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.124360?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Chris Arnot & Peter C. Boxall & Sean B. Cash, 2006. "Do Ethical Consumers Care About Price? A Revealed Preference Analysis of Fair Trade Coffee Purchases," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(4), pages 555-565, December.
    2. repec:feb:natura:0061 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Joanna Kaczorowska & Krystyna Rejman & Ewa Halicka & Agata Szczebyło & Hanna Górska-Warsewicz, 2019. "Impact of Food Sustainability Labels on the Perceived Product Value and Price Expectations of Urban Consumers," Sustainability, MDPI, vol. 11(24), pages 1-17, December.
    2. Otieno, D., 2018. "Consumer Willingness to Pay for Fair Trade Attributes of Goat Meat in Kenya," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277156, International Association of Agricultural Economists.
    3. Jiwon Lee & Lee L. Schulz & Glynn T. Tonsor, 2021. "Swine producer willingness to pay for Tier 1 disease risk mitigation under multifaceted ambiguity," Agribusiness, John Wiley & Sons, Ltd., vol. 37(4), pages 858-875, October.
    4. Bosbach, Moritz & Maietta, Ornella Wanda, 2019. "The Implicit Price for Fair Trade Coffee: Does Social Capital Matter?," Ecological Economics, Elsevier, vol. 158(C), pages 34-41.
    5. Takahashi, Ryo, 2021. "How to stimulate environmentally friendly consumption: Evidence from a nationwide social experiment in Japan to promote eco-friendly coffee," Ecological Economics, Elsevier, vol. 186(C).
    6. Erpeng Wang & Ning An & Zhifeng Gao & Emmanuel Kiprop & Xianhui Geng, 2020. "Consumer food stockpiling behavior and willingness to pay for food reserves in COVID-19," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(4), pages 739-747, August.
    7. Jorge A. Valenciano-Salazar & Francisco J. André & Mario Soliño, 2021. "Paying for Sustainable Coffee in a Developing Country: Consumers’ Profile in Costa Rica," Sustainability, MDPI, vol. 13(16), pages 1-15, August.
    8. Van Loo, Ellen J. & Caputo, Vincenzina & Nayga, Rodolfo M. & Seo, Han-Seok & Zhang, Baoyue & Verbeke, Wim, 2015. "Sustainability labels on coffee: Consumer preferences, willingness-to-pay and visual attention to attributes," Ecological Economics, Elsevier, vol. 118(C), pages 215-225.
    9. Joanna Kaczorowska & Aleksandra Prandota & Krystyna Rejman & Ewa Halicka & Agnieszka Tul-Krzyszczuk, 2021. "Certification Labels in Shaping Perception of Food Quality—Insights from Polish and Belgian Urban Consumers," Sustainability, MDPI, vol. 13(2), pages 1-22, January.
    10. Volker Lingnau & Florian Fuchs & Florian Beham, 2019. "The impact of sustainability in coffee production on consumers’ willingness to pay–new evidence from the field of ethical consumption," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 30(1), pages 65-93, April.
    11. Cerjak, Marija & Naglić, Tatjana & Mesić, Željka & Tomić, Marina, 2015. "Croatian consumers' knowledge and attitudes towards Fair Trade," 143rd Joint EAAE/AAEA Seminar, March 25-27, 2015, Naples, Italy 202756, European Association of Agricultural Economists.
    12. Leonard Maaya & Michel Meulders & Nick Surmont & Martina Vandebroek, 2018. "Effect of Environmental and Altruistic Attitudes on Willingness-to-Pay for Organic and Fair Trade Coffee in Flanders," Sustainability, MDPI, vol. 10(12), pages 1-21, November.
    13. Ryo Takahashi, 2019. "How to stimulate environmentally friendly consumption: Evidence from a nationwide social experiment to promote eco-friendly coffee," Working Papers 1917, Waseda University, Faculty of Political Science and Economics.
    14. Champonnois, Victor & Chanel, Olivier & Makhloufi, Khaled, 2018. "Reducing the anchoring bias in multiple question CV surveys," Journal of choice modelling, Elsevier, vol. 28(C), pages 1-9.
    15. Filippa Pyk & Assem Abu Hatab, 2018. "Fairtrade and Sustainability: Motivations for Fairtrade Certification among Smallholder Coffee Growers in Tanzania," Sustainability, MDPI, vol. 10(5), pages 1-18, May.
    16. Veenarat Ut-tha & Pai-Po Lee & Rebecca Chung, 2021. "Willingness to Pay for Sustainable Coffee: A Case of Thai Consumers," SAGE Open, , vol. 11(4), pages 21582440211, October.
    17. Lee, Eun-Ju, 2016. "Empathy can increase customer equity related to pro-social brands," Journal of Business Research, Elsevier, vol. 69(9), pages 3748-3754.
    18. SuZanne Troske & Stephanie Waters & James Allen & Alison Davis & C. Jill Stowe, 2019. "Central Kentuckians’ Willingness to Pay for Horse Farm Preservation," Sustainability, MDPI, vol. 11(19), pages 1-15, September.
    19. Takahashi, R. & Todo, Y., 2018. "When do consumers stand up for the environment? Evidence from a large-scale social experiment to promote environmentally friendly coffee," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277507, International Association of Agricultural Economists.
    20. Takahashi, Ryo & Todo, Yasuyuki & Funaki, Yukihiko, 2018. "How Can We Motivate Consumers to Purchase Certified Forest Coffee? Evidence From a Laboratory Randomized Experiment Using Eye-trackers," Ecological Economics, Elsevier, vol. 150(C), pages 107-121.
    21. Tully, Stephanie M. & Winer, Russell S., 2014. "The Role of the Beneficiary in Willingness to Pay for Socially Responsible Products: A Meta-analysis," Journal of Retailing, Elsevier, vol. 90(2), pages 255-274.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bond, Craig A. & Thilmany, Dawn D. & Bond, Jennifer Keeling, 2008. "What to Choose? The Value of Label Claims to Fresh Produce Consumers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(3), pages 1-26.
    2. Jones, Eugene, 2014. "An Empirical Assessment of Consumers’ Preferences for Coffee," Journal of Food Distribution Research, Food Distribution Research Society, vol. 45(2), pages 1-26, July.
    3. Takahashi, Ryo, 2021. "How to stimulate environmentally friendly consumption: Evidence from a nationwide social experiment in Japan to promote eco-friendly coffee," Ecological Economics, Elsevier, vol. 186(C).
    4. Andrea Bastianin & Alessandro Lanza & Matteo Manera, 2018. "Economic impacts of El Niño southern oscillation: evidence from the Colombian coffee market," Agricultural Economics, International Association of Agricultural Economists, vol. 49(5), pages 623-633, September.
    5. Hannes Koppel & Günther Schulze, 2013. "The Importance of the Indirect Transfer Mechanism for Consumer Willingness to Pay for Fair Trade Products—Evidence from a Natural Field Experiment," Journal of Consumer Policy, Springer, vol. 36(4), pages 369-387, December.
    6. Hindsley, Paul & McEvoy, David M. & Morgan, O. Ashton, 2020. "Consumer Demand for Ethical Products and the Role of Cultural Worldviews: The Case of Direct-Trade Coffee," Ecological Economics, Elsevier, vol. 177(C).
    7. Takahashi, Ryo & Todo, Yasuyuki & Funaki, Yukihiko, 2018. "How Can We Motivate Consumers to Purchase Certified Forest Coffee? Evidence From a Laboratory Randomized Experiment Using Eye-trackers," Ecological Economics, Elsevier, vol. 150(C), pages 107-121.
    8. Daglish, Toby, 2015. "Consumer Governance in Electricity Markets," Working Paper Series 4183, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    9. Starr, Martha A., 2009. "The social economics of ethical consumption: Theoretical considerations and empirical evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(6), pages 916-925, December.
    10. Pamina Koenig & Sandra Poncet, 2019. "Reputation and (un)fair trade: Effects on French importers from the Rana Plaza collapse," Working Papers halshs-02418274, HAL.
    11. Paul Pecorino, 2016. "A Portion of Profits to Charity: Corporate Social Responsibility and Firm Profitability," Southern Economic Journal, John Wiley & Sons, vol. 83(2), pages 380-398, October.
    12. Mark Pigors & Bettina Rockenbach, 2016. "Consumer Social Responsibility," Management Science, INFORMS, vol. 62(11), pages 3123-3137, November.
    13. Lin, Yu-Hsuan & Kim, KyungJa, 2017. "Willingness to Pay for Government-Certified Agri-Products in South Korea," MPRA Paper 84100, University Library of Munich, Germany.
    14. Fredrik Carlsson & Jorge García & Åsa Löfgren, 2010. "Conformity and the Demand for Environmental Goods," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(3), pages 407-421, November.
    15. Horodecka, Anna & Śliwińska, Magdalena, 2019. "Fair Trade phenomenon – limits of neoclassical and chances of heterodox economics," Studia z Polityki Publicznej / Public Policy Studies, Warsaw School of Economics, vol. 6(3), pages 1-29, July.
    16. Rockenbach, Bettina & Pigors, Mark, 2015. "Consumer Social Responsibility," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113139, Verein für Socialpolitik / German Economic Association.
    17. Paul Pecorino, 2013. "Monopolistic Competition and Public Good Provision with By‐product Firms," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 22(4), pages 875-893, December.
    18. Podhorsky, Andrea, 2015. "A positive analysis of Fairtrade certification," Journal of Development Economics, Elsevier, vol. 116(C), pages 169-185.
    19. Grzegorz Maciejewski & Sylwia Mokrysz & Łukasz Wróblewski, 2019. "Segmentation of Coffee Consumers Using Sustainable Values: Cluster Analysis on the Polish Coffee Market," Sustainability, MDPI, vol. 11(3), pages 1-20, January.
    20. Raluca Dragusanu & Eduardo Montero & Nathan Nunn, 2022. "The Effects of Fair Trade Certification: Evidence from Coffee Producers in Costa Rica," Journal of the European Economic Association, European Economic Association, vol. 20(4), pages 1743-1790.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea12:124360. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.