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Willingness to Pay for Fair Trade Coffee: A Conjoint Analysis Experiment with Italian Consumers

Listed author(s):
  • Rotaris Lucia

    (Università di Trieste)

  • Danielis Romeo

    (Università di Trieste)

Coffee can be distributed via the conventional supply chain or via the alternative fair trade supply chain. The implications of this choice on the distribution of the value added among the actors of the chain are relevant. Fair trade coffee rewards relatively more the producers located in the developing countries. A survey applying stated preference data collection methods to Italian households has demonstrated that they are willing to pay a premium price for the certified fair trade coffee of about 2.2 euros for a 250 gram coffee packet. This premium price, however, can vary significantly according to age, gender, income, and purchasing habits of the consumers. The methodology used implemented state-of-the-art survey design techniques and advanced models specifications to capture preference heterogeneity.

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Article provided by De Gruyter in its journal Journal of Agricultural & Food Industrial Organization.

Volume (Year): 9 (2011)
Issue (Month): 1 (June)
Pages: 1-22

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Handle: RePEc:bpj:bjafio:v:9:y:2011:i:1:n:6
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References listed on IDEAS
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  1. Chris Arnot & Peter Boxall & Sean Cash, 2006. "Do ethical consumers care about price? A revealed preference analysis of fair trade coffee purchases," Natural Field Experiments 00221, The Field Experiments Website.
  2. Basu, Arnab K. & Hicks, Robert L., 2008. "Label Performance and the Willingness to Pay for Fair Trade Coffee: A Cross-National Perspective," Discussion Papers 44336, University of Bonn, Center for Development Research (ZEF).
  3. repec:feb:natura:0061 is not listed on IDEAS
  4. Scarpa, Riccardo & Rose, John M., 2008. "Design efficiency for non-market valuation with choice modelling: how to measure it, what to report and why," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), pages -, September.
  5. Stephane Hess & John Rose, 2009. "Should Reference Alternatives in Pivot Design SC Surveys be Treated Differently?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(3), pages 297-317, March.
  6. Riccardo Scarpa & Danny Campbell & W. George Hutchinson, 2007. "Benefit Estimates for Landscape Improvements: Sequential Bayesian Design and Respondents’ Rationality in a Choice Experiment," Land Economics, University of Wisconsin Press, vol. 83(4), pages 617-634.
  7. Ferrini, Silvia & Scarpa, Riccardo, 2007. "Designs with a priori information for nonmarket valuation with choice experiments: A Monte Carlo study," Journal of Environmental Economics and Management, Elsevier, vol. 53(3), pages 342-363, May.
  8. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, October.
  9. Cicia, Gianni & Corduas, Marcella & Del Giudice, Teresa & Piccolo, Domenico, 2010. "Valuing Consumer Preferences with the CUB Model: A Case Study of Fair Trade Coffee," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 1(1).
  10. John Cranfield & Spencer Henson & James Northey & Oliver Masakure, 2010. "An assessment of consumer preference for fair trade coffee in Toronto and Vancouver," Agribusiness, John Wiley & Sons, Ltd., vol. 26(2), pages 307-325.
  11. Loureiro, Maria L. & Lotade, Justus, 2005. "Do fair trade and eco-labels in coffee wake up the consumer conscience?," Ecological Economics, Elsevier, vol. 53(1), pages 129-138, April.
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