The Analysis of Willingness to Accept and Willingness to Pay of Farmers and Consumers on Organic Horticultural Commodities Through Android Application-Based Digital Marketplace

Abstract

Purpose: This study aims to analyze farmers' and consumers' willingness to accept and willingness to pay for organic horticultural commodities through an Android application-based digital marketplace. Theoretical Framework: Parameters in the economic assessment of natural resources and the environment involve how much individuals are willing to pay (WTP) and receive (WTA) Economic valuation methods for natural resources and the environment can be grouped into two types, namely the revealed preference approach and the stated preference approach The implied preference approach includes several techniques, such as the Travel Cost Method, Hedonic Pricing Method, and Averting Cost. On the other hand, the techniques included in the expressed preference approach involve the Contingent Valuation Method (CVM) and Conjoint Analysis. Method: This study was conducted in Semarang and Magelang Regencies, Central Java Province. The number of samples interviewed was 110 respondents spread across the two districts. The number of samples in each district was 55 respondents of producer farmers who are accustomed to growing organic horticulture and at the same time as consumers of organic horticulture. The analysis of users’ WTP and WTA of organic horticulture offered to the respondents. Results: The estimated Result of WTP Parameters of the characteristics of the product offered is one of the factors which can affect consumer willingness to pay (WTP). Consumer backgrounds such as income, number of family members, and education can also affect consumers' WTP of a product. In general, the determining factor for consumers’ WTP to be willing to pay more for organic horticulture through a digital marketplace compared to conventional horticulture is better quality. Conclusions: Consumer preference for organic horticulture is positive because the quality and taste are better than horticulture that has been planted before. Organic horticulture has the opportunity to create a market due to the positive response of producers and consumers as indicated by the WTA and WTP.