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Consumer Willingness to Pay for Fair Trade Coffee: A Chinese Case Study

Published online by Cambridge University Press:  26 January 2015

Shang-Ho Yang ,
Wuyang Hu ,
Malvern Mupandawana  and
Yun Liu
Shang-Ho Yang
Affiliation:
Department of Agricultural Economics, University of Kentucky, Lexington, KY
Wuyang Hu
Affiliation:
Department of Agricultural Economics, University of Kentucky, Lexington, KY
Malvern Mupandawana
Affiliation:
Centre for Innovation and Service Research, University of Exeter, Exeter, United Kingdom
Yun Liu
Affiliation:
School of Finance, Zhongnan University of Economics and Law, China
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Abstract

Coffee consumption in China has seen a significant rise in recent years. This study seeks to explore the determinants of coffee consumption in China with a specific focus on fair trade coffee. In a survey of 564 respondents in Wuhan City, consumers' willingness to pay (WTP) for fair trade labeled coffee was measured. This study uses an interval regression to investigate individual demographic and consumption characteristic impacts on WTP. Results show that on average, consumers were willing to pay 22% more for a medium cup of fair trade coffee compared with traditional coffee. In addition, other variables that indicated a higher WTP included female consumers, consumers who made their own coffee, and consumers who planned to consume more coffee in the following year.

Keywords

Chinafair trade coffeeinterval regressionwillingness to payD12Q13
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 44 , Issue 1 , February 2012 , pp. 21 - 34
Copyright
Copyright © Southern Agricultural Economics Association 2002

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