Hedonic Pricing of Chocolate Characteristics: Does Fairtrade Certification Have Any Effect?

B.Sc. Romoke Mariam Lawal, BSc

Diplomová práce

Abstract:

Due to the increase in awareness of ethical consumption in the Czech Republic, the consumption of Fairtrade products, especially Fairtrade cocoa, has also increased. There is, however, little research about the contribution and impact of Fairtrade certification on the price consumers pay for Fairtrade-certified products. The main objective of this study was to determine the effect of Fairtrade certification and other characteristics on the market price of chocolate. 272 chocolate data were collected from hypermarkets and supermarkets in Prague between August and September 2022 using a convenience sampling technique. Descriptive statistics were used to review the chocolate brands available in the market. The hedonic model was used to determine the estimates and influence of each of the characteristics. The study results showed that Fairtrade certification is not statistically significant and does not affect the price. This finding is valuable to consumers as it will increase their willingness to pay for Fairtrade chocolate. Consumers can buy Fairtrade chocolates without premium price while fulfilling their ethical obligations in improving the lives of producers in developing countries. However, other factors such as brand, cocoa percentage, chocolate type, and Rainforest Alliance certification positively affect the price. This study will assist manufacturers and retailers in optimising their product offerings and pricing strategies.

Keywords

Cocoa, Sustainable Production, Ethical Consumption, Consumer Behaviour, Willingness to pay

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 24. 4. 2023

Obhajoba závěrečné práce

• Obhajoba proběhla 29. 5. 2023
• Vedoucí: Ing. Jiří Hejkrlík, Ph.D.
• Oponent: Jiří Remr, externi

Česká zemědělská univerzita v Praze

Fakulta tropického zemědělství

Magisterský studijní program:
International Development and Agricultural Economics