Indonesian consumers^ willingness to pay for organic coffee
M Khaliqi1*, Ayu Anisa Amir2, T C Pane1, R R Novanda3, H E Wibowo3, F H Sinaga4, D Darmansyah5, I R M Sari6

1Agribusiness Department, Faculty of Agriculture, Universitas Sumatera Utara, Indonesia
2Department of Agricultural Socioeconomics, Faculty of Agriculture, Universitas Hasanuddin, Makassar 90245, South Sulawesi, Indonesia
3Socio-Economic Agriculture Department, Faculty of Agriculture, Universitas Bengkulu, Indonesia
4Direktorat Pengolahan dan Pemasaran Hasil Tanaman Pangan, Direktorat Jenderal Tanaman Pangan, Kementerian Pertanian, Indonesia
5Agribusiness Department, Faculty of Agriculture, Universitas Teuku Umar, Indonesia
6Agribusiness Department, Faculty of Agriculture, Universitas Lampung, Indonesia

Abstract

The use of organic certification benefits farmers as well as the environment. Organic coffee farmers, on the other hand, face the challenge of determining how much consumers are willing to pay for the organic coffee they produce. The purpose of this study was to investigate the factors that influence Indonesian consumers^ willingness to pay for organic coffee, as one of the indicators that influence consumer purchasing decision behavior. A structural equation model analysis was used to collect data by distributing questionnaires to a total of 766 respondents. The model was created by combining variables from the Theory of Planned Behavior and consumer awareness. This study was successful in demonstrating the direct impact of attitude, subjective norms, PBC, and consumer awareness on consumers^ willingness to pay for Indonesian organic coffee. On the other hand, health and environmental sustainability factors had an indirect influence on consumers^ willingness to pay for organic coffee. Meanwhile, regional development factors had no effect on consumers^ willingness to pay, either directly or indirectly.

Keywords: Willingness to Pay, Organic Coffee, Structural Equation Model

Topic: Food agribusiness and rural development