Indonesian consumers’ willingness to pay for organic coffee

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.