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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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    15. 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.
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