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

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  • 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, Cambridge University Press, vol. 44(1), pages 21-34, February.
  • Handle: RePEc:cup:jagaec:v:44:y:2012:i:01:p:21-34_00
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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. 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.
    4. 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.
    5. 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.
    6. 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.
    7. Yuqing Zheng & Songqing Jin & Jian Zhang, 2019. "The 21st century agribusiness in China: E‐commerce, consumer preference, and competition," Agribusiness, John Wiley & Sons, Ltd., vol. 35(1), pages 3-5, January.
    8. 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.
    9. 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.
    10. 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.
    11. Xuqi Chen & Zhifeng Gao & Lisa House & Jiaoju Ge & Chengfeng Zong & Fred Gmitter, 2016. "Opportunities for Western Food Products in China: The Case of Orange Juice Demand," Agribusiness, John Wiley & Sons, Ltd., vol. 32(3), pages 343-362, July.
    12. 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.
    13. 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.
    14. 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.
    15. Chen, Xuqi & Gao, Zhifeng & Swisher, Marilyn & House, Lisa & Zhao, Xin, 2018. "Eco-labeling in the Fresh Produce Market: Not All Environmentally Friendly Labels Are Equally Valued," Ecological Economics, Elsevier, vol. 154(C), pages 201-210.
    16. 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.

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