IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v11y2021i4p21582440211052956.html
   My bibliography  Save this article

Willingness to Pay for Sustainable Coffee: A Case of Thai Consumers

Author

Listed:
  • Veenarat Ut-tha
  • Pai-Po Lee
  • Rebecca Chung

Abstract

The aim of this study is to investigate the willingness to pay (WTP) for sustainable coffee, and its determinants as well. Drawing an empirical survey with 500 consumers in Thailand, contingent valuation method was performed to elicit the WTP for sustainable coffee. A logistic model was adapted to evaluate the impacts of factors under Fishbein and Ajzen’s theory of reasoned action, that is, to test hypotheses of attitude and subjective norm, along with consumer characteristics on the WTP. Stata15 was adopted to analyze the cross-sectional data in logistic models; meanwhile probit regression was performed to confirm the results of the logistic model. The results indicate that attitude, self-brewing, marital status, past experience, job, and household income influence WTP. The WTP or premium price of sustainable coffee as compared to the conventional coffee is found to be 36.48%. Various stakeholders in coffee industry, for example, distributors, roasters, retailers and coffee farmers, as well as the policy makers, can act accordingly based upon the findings to develop a sustainable value-added coffee supply chain.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:sagope:v:11:y:2021:i:4:p:21582440211052956
    DOI: 10.1177/21582440211052956
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/21582440211052956
    Download Restriction: no
    File URL: https://libkey.io/10.1177/21582440211052956?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. 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(1), pages 1-14, February.
    2. Meleddu, Marta & Pulina, Manuela, 2016. "Evaluation of individuals’ intention to pay a premium price for ecotourism: An exploratory study," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 65(C), pages 67-78.
    3. Anna Alberini & James R. Kahn (ed.), 2006. "Handbook on Contingent Valuation," Books, Edward Elgar Publishing, number 1893, December.
    4. Camelia F. Oroian & Calin O. Safirescu & Rezhen Harun & Gabriela O. Chiciudean & Felix H. Arion & Iulia C. Muresan & Bianca M. Bordeanu, 2017. "Consumers’ Attitudes towards Organic Products and Sustainable Development: A Case Study of Romania," Sustainability, MDPI, vol. 9(9), pages 1-14, September.
    5. Halstead, John M. & Luloff, A.E. & Stevens, Thomas H., 1992. "Protest Bidders In Contingent Valuation," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 21(2), pages 1-10, October.
    6. Giovannucci, Daniele & Ponte, Stefano, 2005. "Standards as a new form of social contract? Sustainability initiatives in the coffee industry," Food Policy, Elsevier, vol. 30(3), pages 284-301, June.
    7. Hu, Wuyang & Woods, Timothy A. & Bastin, Sandra, 2011. "Consumer Willingness to Pay for Value-Added Blueberry Products: A Payment Card Approach," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103444, Agricultural and Applied Economics Association.
    8. 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.
    9. Grabs, Janina & Kilian, Bernard & Hernandez, Daniel Calderon & Dietz, Thomas, 2016. "Understanding Coffee Certification Dynamics: A Spatial Analysis of Voluntary Sustainability Standard Proliferation," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(3), pages 1-26, August.
    10. Steven Stewart & James R. Kahn, 2006. "An Introduction to Choice Modeling for Non-market Valuation," Chapters, in: Anna Alberini & James R. Kahn (ed.), Handbook on Contingent Valuation, chapter 7, Edward Elgar Publishing.
    11. 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.
    12. Chun-Chu Liu & Chu-Wei Chen & Han-Shen Chen, 2019. "Measuring Consumer Preferences and Willingness to Pay for Coffee Certification Labels in Taiwan," Sustainability, MDPI, vol. 11(5), pages 1-13, March.
    13. 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.
    14. John Loomis & Thomas Brown & Beatrice Lucero & George Peterson, 1997. "Evaluating the Validity of the Dichotomous Choice Question Format in Contingent Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 10(2), pages 109-123, September.
    15. Hu, Wuyang & Woods, Timothy & Bastin, Sandra & Cox, Linda & You, Wen, 2011. "Assessing Consumer Willingness to Pay for Value-Added Blueberry Products Using a Payment Card Survey," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 43(2), pages 243-258, May.
    16. V. Kerry Smith, 2006. "Fifty Years of Contingent Valuation," Chapters, in: Anna Alberini & James R. Kahn (ed.), Handbook on Contingent Valuation, chapter 2, Edward Elgar Publishing.
    17. Kamonthip Maichum & Surakiat Parichatnon & Ke-Chung Peng, 2016. "Application of the Extended Theory of Planned Behavior Model to Investigate Purchase Intention of Green Products among Thai Consumers," Sustainability, MDPI, vol. 8(10), pages 1-20, October.
    18. Li Bai & Mingliang Wang & Shunlong Gong, 2019. "Understanding the Antecedents of Organic Food Purchases: The Important Roles of Beliefs, Subjective Norms, and Identity Expressiveness," Sustainability, MDPI, vol. 11(11), pages 1-18, May.
    19. Spash, Clive L. & Urama, Kevin & Burton, Rob & Kenyon, Wendy & Shannon, Peter & Hill, Gary, 2009. "Motives behind willingness to pay for improving biodiversity in a water ecosystem: Economics, ethics and social psychology," Ecological Economics, Elsevier, vol. 68(4), pages 955-964, February.
    20. Hultman, Magnus & Kazeminia, Azadeh & Ghasemi, Vahid, 2015. "Intention to visit and willingness to pay premium for ecotourism: The impact of attitude, materialism, and motivation," Journal of Business Research, Elsevier, vol. 68(9), pages 1854-1861.
    21. John C. Whitehead, 2006. "A Practitioner's Primer on the Contingent Valuation Method," Chapters, in: Anna Alberini & James R. Kahn (ed.), Handbook on Contingent Valuation, chapter 3, Edward Elgar Publishing.
    22. 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.
    23. Liobikienė, Genovaitė & Mandravickaitė, Justina & Bernatonienė, Jurga, 2016. "Theory of planned behavior approach to understand the green purchasing behavior in the EU: A cross-cultural study," Ecological Economics, Elsevier, vol. 125(C), pages 38-46.
    24. Halder, Pradipta & Pietarinen, Janne & Havu-Nuutinen, Sari & Pöllänen, Sinikka & Pelkonen, Paavo, 2016. "The Theory of Planned Behavior model and students' intentions to use bioenergy: A cross-cultural perspective," Renewable Energy, Elsevier, vol. 89(C), pages 627-635.
    25. Alberini Anna, 1995. "Optimal Designs for Discrete Choice Contingent Valuation Surveys: Single-Bound, Double-Bound, and Bivariate Models," Journal of Environmental Economics and Management, Elsevier, vol. 28(3), pages 287-306, May.
    26. Jens Hainmueller & Michael J. Hiscox & Sandra Sequeira, 2015. "Consumer Demand for Fair Trade: Evidence from a Multistore Field Experiment," The Review of Economics and Statistics, MIT Press, vol. 97(2), pages 242-256, May.
    27. 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.
    28. Paul, Justin & Modi, Ashwin & Patel, Jayesh, 2016. "Predicting green product consumption using theory of planned behavior and reasoned action," Journal of Retailing and Consumer Services, Elsevier, vol. 29(C), pages 123-134.
    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. Veenarat Ut-tha & Rebecca Chung, 2023. "Unraveling Psychosocial Drivers of Environmentally-labeled Coffee," Economia agro-alimentare, FrancoAngeli Editore, vol. 2023(3), pages 109-141.

    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. Veenarat Ut-tha & Rebecca Chung, 2023. "Unraveling Psychosocial Drivers of Environmentally-labeled Coffee," Economia agro-alimentare, FrancoAngeli Editore, vol. 2023(3), pages 109-141.
    2. 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).
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. Carlos Jurado-Rivas & Marcelino Sánchez-Rivero, 2019. "Willingness to Pay for More Sustainable Tourism Destinations in World Heritage Cities: The Case of Caceres, Spain," Sustainability, MDPI, vol. 11(21), pages 1-21, October.
    11. 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.
    12. Leslier Valenzuela-Fernández & Manuel Escobar-Farfán & Mauricio Guerra-Velásquez & Elizabeth Emperatriz García-Salirrosas, 2023. "COVID-19 Effects on Environmentally Responsible Behavior: A Social Impact Perspective from Latin American Countries," IJERPH, MDPI, vol. 20(4), pages 1-21, February.
    13. Manuela Vega-Zamora & Manuel Parras-Rosa & Francisco José Torres-Ruiz, 2020. "You Are What You Eat: The Relationship between Values and Organic Food Consumption," Sustainability, MDPI, vol. 12(9), pages 1-13, May.
    14. Meike Rombach & David L. Dean & Nicole J. Olynk Widmar & Vera Bitsch, 2021. "The Ethically Conscious Flower Consumer: Understanding Fair Trade Cut Flower Purchase Behavior in Germany," Sustainability, MDPI, vol. 13(21), pages 1-16, November.
    15. Farr, Marina & Stoeckl, Natalie & Alam Beg, Rabiul, 2014. "The non-consumptive (tourism) ‘value’ of marine species in the Northern section of the Great Barrier Reef," Marine Policy, Elsevier, vol. 43(C), pages 89-103.
    16. 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.
    17. Edwin Chukwuemeka Idoko & Chukwunonso Oraedu & Christian Chidera Ugwuanyi & Stephen Ikechukwu Ukenna, 2021. "Determinants of Smart Meter on Sustainable Energy Consumption Behavior: A Developing Country Perspective," SAGE Open, , vol. 11(3), pages 21582440211, July.
    18. Cristina Fleșeriu & Smaranda Adina Cosma & Vlad Bocăneț, 2020. "Values and Planned Behaviour of the Romanian Organic Food Consumer," Sustainability, MDPI, vol. 12(5), pages 1-21, February.
    19. Katherine Fuller & Carola Grebitus, 2023. "Consumers' preferences and willingness to pay for coffee sustainability labels," Agribusiness, John Wiley & Sons, Ltd., vol. 39(4), pages 1007-1025, October.
    20. Zaremohzzabieh, Zeinab & Ismail, Normala & Ahrari, Seyedali & Abu Samah, Asnarulkhadi, 2021. "The effects of consumer attitude on green purchase intention: A meta-analytic path analysis," Journal of Business Research, Elsevier, vol. 132(C), pages 732-743.

    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:sae:sagope:v:11:y:2021:i:4:p:21582440211052956. 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: SAGE Publications (email available below). General contact details of provider: .

    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.