Differentiated coffees and their potential markets in Puerto Rico: An economic valuation approach

Héctor Tavárez, Carmen Álamo, Mildred Cortés

Abstract

We used Likert-scale questions and the choice experiment method to evaluate the general perception of consumers regarding differentiated products and to estimate their willingness to pay for characteristics of a differentiated coffee, respectively (N=172). The three characteristics perceived as most important are that the product does not use child labor, that more detailed product information is provided in the packaging and that it is produced locally. In addition, we found that consumers are willing to pay between $1,37 and $4,38, in addition to the current price, for an 8-ounce package of coffee with different production characteristics.

Keywords

Coffee; willingness to pay; choice experiments; differentiated products

Subject classification

Q10; Q51

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References

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