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

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