Willingness to pay of coffee shops for fresh milk in selected municipalities in Laguna, 2011-2012

Date

4-2012

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Prudenciano U. Gordoncillo

Committee Member

Julieta A. Delos Reyes, Danilo L. Evangelista

Abstract

The study aimed to determine the willingness to pay of coffee shops for fresh milk in Calamba City, Los Baños and San Pablo City, Laguna. The specific objectives of the study were to: 1) describe the socio-economic profile of the coffee shop owners; 2) determine the characteristics of coffee shops; 3) describe the perception of coffee shop owners for fresh milk; 4) determine the awareness of coffee shop owners regarding fresh milk and UHT milk; 5) determine the level of knowledge of coffee shop owners regarding fresh milk, UHT milk and the difference between the two; 6) identify the factors that affect the usage and preference value for fresh milk and 7) draw policy implications from the findings of the study. To achieve these objectives, descriptive analysis, logistic regression analysis and multiple linear regression analysis were employed using primary data gathered from the coffee shop owners interviewed and secondary data from different government agencies. The coffee shop owners in the study area had positive and high willingness to pay response for fresh milk. This was attributed to their respective perception that fresh milk adds taste and flavor, gives more froth and more nutrition to the coffee and specialty coffee beverages they sell. However, despite the good perception and high level of awareness and knowledge about fresh milk, the misleading packaging of UHT milk deceived coffee shop owners. Because of the big font of the word “fresh” on the packaging of UHT processed milk, coffee shop owners’ thought of UHT milk as fresh milk. Therefore, these coffee shop owners believe they were using fresh milk but it was actually UHT milk. The study also reveals that level of knowledge, number of customers and years in operation were the significant factors that affect usage and preference value for fresh milk. Moreover, the level of knowledge showed consistency in its level of significance both in logistic and multiple regression analyses. Because knowledge is an important factor that affects both usage for fresh milk and preference value of fresh milk, it is important that the government and the Philippine dairy industry create advertising campaigns about fresh milk so that coffee shop owners will choose to use fresh milk. Also, the misleading packaging of UHT milk should be corrected. The government should create a policy that will ensure that UHT companies’ will increase the size of UHT label so that the coffee shops will not be mislead.

Language

English

Call Number

Thesis

Document Type

Thesis

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