Consumer Preference and Willingness to Pay for Local Specialty Coffee in the University of the Philippines Los Baños, 2023

Date

1-2024

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Christian Paul L. Fang

Committee Member

Julieta A. Delos Reyes, Ma. Angeles O. Catelo

Abstract

The study was conducted to analyze the consumer preference and willingness to pay for local specialty coffee in the University of the Philippines Los Baños. Specifically, the study aimed to: (1) describe the socio-economic characteristics of coffee drinkers in UPLB; (2) determine the level of knowledge and awareness of coffee drinkers in UPLB toward specialty coffee; (3) compare the preference and willingness to pay for specialty coffee of students and working individuals in UPLB; (4) identify the factors associated with the willingness to pay for specialty coffee; and (5) recommend marketing strategies for specialty coffee based on the results.

Primary data were obtained from 100 respondents who are undergraduate students, faculty, staff, and research representative coffee drinkers in UPLB by providing a questionnaire and conducting a product test. The analytical tools used were descriptive analysis, 5-point Likert scale importance ranking, 9-point hedonic scale, contingent valuation, chi-square test of independence, and Cramer’s V.

Most respondents consumed two 250 mL cups of coffee per day and their usual places of consumption are their homes/apartments/dorm, office/workplace, and coffee shops. Student-respondents have higher budget allocated for coffee compared to the working individuals. Most of the respondents consume coffee for the caffeine or for the purpose to stay awake. Half of the respondents have a moderate knowledge level about specialty coffee. The top three most important attributes that the respondents are looking for in their coffee are as follows in order: flavor, aroma, and price. The important attributes that are associated with the knowledge level of the respondents towards specialty coffee are flavor, fragrance, aroma, and sustainability.

The product test compared three coffee samples: low quality commercial coffee, high quality commercial coffee, and specialty coffee. Using the 9-point hedonic scale, the respondents rated the three samples according to their preference. The test results show that specialty coffee was the least liked out of the three samples. The rating that the specialty got is “neither like nor dislike” which shows a neutral preference towards specialty coffee.

The contingent valuation showed that the majority of respondents are willing to pay for specialty coffee despite the neutral response from the product test. Students have higher willingness to pay compared to working individuals. The chi-squared test of independence showed that the variables that are associated with the respondent’s willingness to pay are purchasing level and place of consumption.

It is recommended to market and increase the coffee consumer’s awareness to coffee to increase their appreciation of specialty coffee. It is important to consider the budget of the consumers in marketing specialty coffee. The best place to consider in marketing specialty coffee is coffee shop. Conducting further studies about specialty coffee is suggested to further improve and highlight the attributes of specialty coffee that the respondents would prefer and can even invite new coffee drinkers.

Language

English

LC Subject

Selling--Coffee, Consumers--Attitudes, Willingness to pay

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2024 A14 P38

Document Type

Thesis

This document is currently not available here.

Share

COinS