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An assessment of consumer preference for fair trade coffee in Toronto and Vancouver

Author

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  • John Cranfield

    (Department of Food, Agricultural and Resource Economics, University of Guelph, Guelph, Ontario N1G 2W1, Canada)

  • Spencer Henson

    (Department of Food, Agricultural and Resource Economics, University of Guelph, Guelph, Ontario N1G 2W1, Canada)

  • James Northey

    (Department of Food, Agricultural and Resource Economics, University of Guelph, Guelph, Ontario N1G 2W1, Canada)

  • Oliver Masakure

    (Department of Human Rights and Human Diversity, Wilfrid Laurier University, Brantford, ON N3T 6C9, Canada)

Abstract

In this article, the authors use conjoint analysis to elicit the views of coffee consumers on the attributes of Fair Trade coffee using data from the Greater Toronto Area and Vancouver collected through face-to-face interviews with consumers. The impact of socioeconomic and demographic factors on respondents' acceptance of Fair Trade coffee is evaluated using cluster analysis and multinomial logit models. The results suggest that, regardless of location, consumers place a strong premium on price and labeling claims. Three consumer segments are identified in each city; in Toronto, these segments are labeled Fair Trade-Focused, Price Conscious, and Balanced Buyers; for Vancouver these segments are labeled Organic and Fair Trade-Focused, Price Conscious, and Balanced Buyers. Although a broad spectrum of variables influences segment membership, no single variable explains membership in the same segment in each city. Such a result is rather telling; it suggests deeper constructs underlie segment membership, and presumably consumption behavior with respect to Fair Trade coffee. © 2010 Wiley Periodicals, Inc.

Suggested Citation

  • 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.
  • Handle: RePEc:wly:agribz:v:26:y:2010:i:2:p:307-325
    DOI: 10.1002/agr.20217
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    File URL: http://hdl.handle.net/10.1002/agr.20217
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    References listed on IDEAS

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    Cited by:

    1. Murekezi, Abdoul & Oparinde, Adewale & Birol, Ekin, 2017. "Consumer market segments for biofortified iron beans in Rwanda: Evidence from a hedonic testing study," Food Policy, Elsevier, vol. 66(C), pages 35-49.
    2. Jones, Eugene, 2014. "An Empirical Assessment of Consumers’ Preferences for Coffee," Journal of Food Distribution Research, Food Distribution Research Society, vol. 45(2), July.
    3. 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.
    4. Veronika Andorfer & Ulf Liebe, 2012. "Research on Fair Trade Consumption—A Review," Journal of Business Ethics, Springer, vol. 106(4), pages 415-435, April.
    5. 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.
    6. Wang, Xiaojin, 2016. "Is Fair Trade Fair for Consumers? A Hedonic Analysis of U.S. Retail Fair Trade Coffee Prices," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 236344, Agricultural and Applied Economics Association.
    7. 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.
    8. Jason E. Taylor & Vigdis Boasson, 2014. "Who Buys Fair Trade and Why (or Why Not)? A Random Survey of Households," Journal of Consumer Affairs, Wiley Blackwell, vol. 48(2), pages 418-430, June.
    9. 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.
    10. 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.
    11. Ulf Liebe & Veronika A. Andorfer & Patricia A. Gwartney & Jürgen Meyerhoff, 2014. "Ethical Consumption and Social Context: Experimental Evidence from Germany and the United States," University of Bern Social Sciences Working Papers 7, University of Bern, Department of Social Sciences.

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