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

Lucia Rotaris () and Romeo Danielis ()

Journal of Agricultural & Food Industrial Organization, 2011, vol. 9, issue 1, 22

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.

Keywords: coffee; fair trade; discrete choice models; conjoint analysis; experimental design (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (21)

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DOI: 10.2202/1542-0485.1305

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