IDEAS home Printed from https://ideas.repec.org/a/bpj/bjafio/v9y2011i1n6.html
   My bibliography  Save this article

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

Author

Listed:
  • Rotaris Lucia
  • Danielis Romeo

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
    DOI: 10.2202/1542-0485.1305
    as

    Download full text from publisher

    File URL: https://doi.org/10.2202/1542-0485.1305
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.2202/1542-0485.1305?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. Ferrini, Silvia & Scarpa, Riccardo, 2007. "Designs with a priori information for nonmarket valuation with choice experiments: A Monte Carlo study," Journal of Environmental Economics and Management, Elsevier, vol. 53(3), pages 342-363, May.
    3. 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.
    4. Scarpa, Riccardo & Rose, John M., 2008. "Design efficiency for non-market valuation with choice modelling: how to measure it, what to report and why," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), pages 1-30.
    5. Cicia, Gianni & Corduas, Marcella & Del Giudice, Teresa & Piccolo, Domenico, 2010. "Valuing Consumer Preferences with the CUB Model: A Case Study of Fair Trade Coffee," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 1(1), pages 1-12.
    6. Riccardo Scarpa & Danny Campbell & W. George Hutchinson, 2007. "Benefit Estimates for Landscape Improvements: Sequential Bayesian Design and Respondents’ Rationality in a Choice Experiment," Land Economics, University of Wisconsin Press, vol. 83(4), pages 617-634.
    7. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, October.
    8. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, October.
    9. Basu, Arnab K. & Hicks, Robert L., 2008. "Label Performance and the Willingness to Pay for Fair Trade Coffee: A Cross-National Perspective," Discussion Papers 44336, University of Bonn, Center for Development Research (ZEF).
    10. Stephane Hess & John Rose, 2009. "Should Reference Alternatives in Pivot Design SC Surveys be Treated Differently?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(3), pages 297-317, March.
    11. Loureiro, Maria L. & Lotade, Justus, 2005. "Do fair trade and eco-labels in coffee wake up the consumer conscience?," Ecological Economics, Elsevier, vol. 53(1), pages 129-138, April.
    12. Fabrizio Adriani & Leonardo Becchetti, 2004. "Fair Trade: A 'Third Generation' Welfare Mechanism to Make Globalisation Sustainable," CEIS Research Paper 62, Tor Vergata University, CEIS.
    13. repec:feb:natura:0061 is not listed on IDEAS
    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. 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.
    2. Leslie J. Verteramo Chiu & Jura Liaukonyte & Miguel I. Gómez & Harry M. Kaiser, 2017. "Socially responsible products: what motivates consumers to pay a premium?," Applied Economics, Taylor & Francis Journals, vol. 49(19), pages 1833-1846, April.
    3. 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.
    4. 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.
    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.
    6. 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.
    7. Gianni Betti & Daniela Evangelista & Francesca Gagliardi & Emanuele Giordano & Angelo Riccaboni, 2024. "Towards Integrating Information Systems of Statistical Indicators on Traceability, Quality and Safety of Italian Agrifood Systems for Citizens, Institutions and Policy-Makers," Sustainability, MDPI, vol. 16(15), pages 1-26, July.
    8. 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).
    9. 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.
    10. 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.
    11. Jong-Wen Wann & Chia-Yung Kao & Yu-Chen Yang, 2018. "Consumer Preferences of Locally Grown Specialty Crop: The Case of Taiwan Coffee," Sustainability, MDPI, vol. 10(7), pages 1-13, July.
    12. Jeff Luckstead & Heather A. Snell & Lawton Lanier Nalley & Rodolfo M. Nayga & Joshua Sarpaning, 2022. "A multi‐country study on consumers' valuation for child‐labor‐free chocolate: Implications for child labor in cocoa production," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 1021-1048, June.
    13. Man-, ZuyiKeunZuyi Wang & Takagi, Chifumi & Kim, Man-Keun & Chung, Anh, 2022. "Uncover Drivers Influencing Consumers' WTP Using Machine Learning: Case of Organic Coffee in Taiwan," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322150, Agricultural and Applied Economics Association.
    14. Sittidaj Pongkijvorasin & Steven R. McGreevy, 2021. "Loving local beans? The challenge of valorizing local food in the Thai highlands," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 17305-17328, December.
    15. 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.
    16. 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.
    17. 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.
    18. 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.
    19. 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.
    20. Katherine Fuller & Carola Grebitus & Troy G. Schmitz, 2022. "The effects of values and information on the willingness to pay for sustainability credence attributes for coffee," Agricultural Economics, International Association of Agricultural Economists, vol. 53(5), pages 775-791, September.
    21. Nesrine Merbah & Sonia Benito-Hernández, 2024. "Consumer Willingness-to-Pay for Sustainable Coffee: Evidence from a Choice Experiment on Fairtrade and UTZ Certification," Sustainability, MDPI, vol. 16(8), pages 1-12, April.

    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. Beharry-Borg, Nesha & Scarpa, Riccardo, 2010. "Valuing quality changes in Caribbean coastal waters for heterogeneous beach visitors," Ecological Economics, Elsevier, vol. 69(5), pages 1124-1139, March.
    2. 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.
    3. 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.
    4. Jong-Wen Wann & Chia-Yung Kao & Yu-Chen Yang, 2018. "Consumer Preferences of Locally Grown Specialty Crop: The Case of Taiwan Coffee," Sustainability, MDPI, vol. 10(7), pages 1-13, July.
    5. Veronika Andorfer & Ulf Liebe, 2012. "Research on Fair Trade Consumption—A Review," Journal of Business Ethics, Springer, vol. 106(4), pages 415-435, April.
    6. Richard Yao & Riccardo Scarpa & John Rose & James Turner, 2015. "Experimental Design Criteria and Their Behavioural Efficiency: An Evaluation in the Field," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(3), pages 433-455, November.
    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. 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.
    9. Dan Marsh & Lena Mkwara & Riccardo Scarpa, 2011. "Do Respondents’ Perceptions of the Status Quo Matter in Non-Market Valuation with Choice Experiments? An Application to New Zealand Freshwater Streams," Sustainability, MDPI, vol. 3(9), pages 1-23, September.
    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. Fredrik Carlsson & Jorge García & Åsa Löfgren, 2010. "Conformity and the Demand for Environmental Goods," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(3), pages 407-421, November.
    12. Rai, Rajesh Kumar & Scarborough, Helen, 2012. "Estimating the public benefits of mitigating damages caused by invasive plant species in a subsistence economy," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 124421, Australian Agricultural and Resource Economics Society.
    13. Man-, ZuyiKeunZuyi Wang & Takagi, Chifumi & Kim, Man-Keun & Chung, Anh, 2022. "Uncover Drivers Influencing Consumers' WTP Using Machine Learning: Case of Organic Coffee in Taiwan," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322150, Agricultural and Applied Economics Association.
    14. Ndebele, Tom & Johnston, Robert J. & Newburn, David, 2020. "Transaction Costs and Household Adoption of Stormwater Best Management Practices," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304338, Agricultural and Applied Economics Association.
    15. Francesca Colantuoni & Gianni Cicia & Teresa Del Giudice & Daniel Lass & Francesco Caracciolo & Pasquale Lombardi, 2016. "Heterogeneous Preferences for Domestic Fresh Produce: Evidence from German and Italian Early Potato Markets," Agribusiness, John Wiley & Sons, Ltd., vol. 32(4), pages 512-530, November.
    16. Rungie, Cam & Scarpa, Riccardo & Thiene, Mara, 2014. "The influence of individuals in forming collective household preferences for water quality," Journal of Environmental Economics and Management, Elsevier, vol. 68(1), pages 161-174.
    17. 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, Boston, Massachusetts 236344, Agricultural and Applied Economics Association.
    18. Broch, Stine Wamberg & Strange, Niels & Jacobsen, Jette B. & Wilson, Kerrie A., 2013. "Farmers' willingness to provide ecosystem services and effects of their spatial distribution," Ecological Economics, Elsevier, vol. 92(C), pages 78-86.
    19. Bruno Lanz & Allan Provins, 2013. "Valuing Local Environmental Amenity with Discrete Choice Experiments: Spatial Scope Sensitivity and Heterogeneous Marginal Utility of Income," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 56(1), pages 105-130, September.
    20. Kerr, Geoffrey N. & Sharp, Basil M.H., 2010. "Choice experiment adaptive design benefits: a case study," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(4), pages 1-14.

    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:bpj:bjafio:v:9:y:2011:i:1:n:6. 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: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    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.