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Consumer Willingness to Pay for Fair Trade Coffee: A Chinese Case Study

Author

Listed:
  • Yang, Shang-Ho
  • Hu, Wuyang
  • Mupandawana, Malvern
  • Liu, Yun

Abstract

Coffee consumption in China has seen a significant rise in recent years. This study seeks to explore the determinants of coffee consumption in China with a specific focus on fair trade coffee. In a survey of 564 respondents in Wuhan City, consumers’ willingness to pay (WTP)for fair trade labeled coffee was measured. This study uses an interval regression to investigate individual demographic and consumption characteristic impacts on WTP. Results show that on average, consumers were willing to pay 22% more for a medium cup of fair trade coffee compared with traditional coffee. In addition, other variables that indicated a higher WTP included female consumers, consumers who made their own coffee, and consumers who planned to consume more coffee in the following year.

Suggested Citation

  • Yang, Shang-Ho & Hu, Wuyang & Mupandawana, Malvern & Liu, Yun, 2012. "Consumer Willingness to Pay for Fair Trade Coffee: A Chinese Case Study," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(01), February.
  • Handle: RePEc:ags:joaaec:120449
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. Chankrajang, Thanyaporn & Muttarak, Raya, 2017. "Green Returns to Education: Does Schooling Contribute to Pro-Environmental Behaviours? Evidence from Thailand," Ecological Economics, Elsevier, vol. 131(C), pages 434-448.
    5. Moritz Bosbach & Ornella Wanda Maietta, 2018. "The Implicit Price for Fair Trade Coffee: Does Social Capital Matter?," CSEF Working Papers 492, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    6. Yang, Shang-Ho & Woods, Timothy A., 2013. "Farm Market Patron Behavioral Response to Food Sampling," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 146711, Southern Agricultural Economics Association.
    7. Victor Champonnois & Olivier Chanel, 2016. "How useful are (Censored) Quantile Regressions for Contingent Valuation?," Working Papers 2016.12, FAERE - French Association of Environmental and Resource Economists.

    More about this item

    Keywords

    China; fair trade coffee; interval regression; willingness to pay; Food Consumption/Nutrition/Food Safety; International Relations/Trade; D12; Q13;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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