| dc.description.abstract | Willingness to pay (WTP) has been widely used to measure the value of an item, both
private and public goods, also shared resources. More recently, the WTP concept is also applied
to marketing management for product development and pricing strategies. Ketakasi ground
coffee is a premium Robusta coffee product of Jember Regency. The price of Ketakasi ground
coffee per package with a net weight of 160 grams was sold at IDR 15,000, relatively more
expensive compared to the price of branded ground coffee product which were sold at an average
of IDR 12,000 per pack. Perception about the price of Ketakasi ground coffee which was
considered expensive by consumers could make an obstacle for producers to achieve the
expected target customers. This research aimed to determine the value of WTP of Ketakasi
ground coffee; and factors influencing the WTP. A total of 60 respondents were interviewed in
this research. Average value of consumers’ willingness to pay was analyzed by the descriptive
statistics, while the factors influencing the willingness to pay consumers were analyzed by
logistic regressions. Results showed that the value of consumers’ WTP reached IDR 16,000 per
pack. This value was actually higher compared to the current market price, i.e., IDR 15,000, with
consumer surplus of IDR 1,000. The taste of local coffee was identified as the main reason why
consumers willing to pay higher than the current market price. Factors significantly influencing
consumers’ WTP of Ketakasi ground coffee were consumer’s gender, types of jobs, and income. | en_US |
