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Product Information and Willingness-to-Pay: A Case Study of Fair Trade Coffee on Chinese Market

Author

Listed:
  • Yang, Shang-Ho
  • Guan, Huanda
  • Hu, Wuyang
  • Liu, Yun

Abstract

This study investigates variant responses of Chinese consumers on the willingness-to-pay for fair trade coffee given different amount of product information. Respondents were randomly assigned to one of three different information treatments in a recent survey conducted in China. The information explained various aspects on fair trade and ranged from basic to comprehensive. Results indicated that consumers are generally willing to pay additional amount for fair trade coffee. Information played an important role in determining what types of consumers are responsive to fair trade coffee. However, the amount of information provided and consumer willingness-to-pay do not follow a linear relationship.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:aaea12:124360
    DOI: 10.22004/ag.econ.124360
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    References listed on IDEAS

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    1. Chris Arnot & Peter C. Boxall & Sean B. Cash, 2006. "Do Ethical Consumers Care About Price? A Revealed Preference Analysis of Fair Trade Coffee Purchases," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(4), pages 555-565, December.
    2. repec:feb:natura:0061 is not listed on IDEAS
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    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. 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.
    5. 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.
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    8. 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.
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    10. 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).
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    14. 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.
    15. 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.
    16. 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.
    17. Joanna Kaczorowska & Aleksandra Prandota & Krystyna Rejman & Ewa Halicka & Agnieszka Tul-Krzyszczuk, 2021. "Certification Labels in Shaping Perception of Food Quality—Insights from Polish and Belgian Urban Consumers," Sustainability, MDPI, vol. 13(2), pages 1-22, January.
    18. 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.
    19. 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.
    20. 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.
    21. 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.

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