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

Author

Listed:
  • Rotaris Lucia

    (Università di Trieste)

  • Danielis Romeo

    (Università di Trieste)

Abstract

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.

Suggested Citation

  • Rotaris Lucia & Danielis Romeo, 2011. "Willingness to Pay for Fair Trade Coffee: A Conjoint Analysis Experiment with Italian Consumers," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 9(1), pages 1-22, June.
  • Handle: RePEc:bpj:bjafio:v:9:y:2011:i:1:n:6
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    References listed on IDEAS

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    Cited by:

    1. Veronika A. Andorfer & Ulf Liebe, 2014. "Do Information, Price, or Morals Influence Ethical Consumption? A Natural Field Experiment and Customer Survey on the Purchase of Fair Trade Coffee," University of Bern Social Sciences Working Papers 6, University of Bern, Department of Social Sciences.
    2. Durham Catherine A. & Roheim Cathy A. & Pardoe Iain, 2012. "Picking Apples: Can Multi-Attribute Ecolabels Compete?," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 10(1), pages 1-28, October.
    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. Ismail Tamer Toklu, 2017. "Consumer Preferences for the Attributes of Sunflower Oil: An Exploratory Study with Conjoint Analysis," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(1), pages 39-60, January.
    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. Chiu, Leslie J. Verteramo & Gomez, Miguel I. & Liaukonyte, Jura & Kaiser, Harry M., 2015. "Socially Responsible Products: What Motivates Consumers to Pay a Premium?," 2016 Allied Social Science Association (ASSA) Annual Meeting, January 3-5, 2016, San Francisco, California 212829, Agricultural and Applied Economics Association.
    7. Li, Xi-Le & Saghaian, Sayed, 2014. "The Presence Of Market Power In The Coffee Market: The Case Of Colombian Milds," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170348, Agricultural and Applied Economics Association.

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