Thesis (BS Agribusiness Economics) University of the Philippines Mindanao, 2024

Coffee has evolved from being a traditional beverage into distinct cultures that consumers can participate in, classified as the coffee wave movements. The third coffee movement emphasizes more sustainable consumption, yet little is known about the sustainability-related attributes preferred among coffee consumers. This study investigated consumer preference for third wave coffee attributes, focusing on fair trade certifications, traceability information, and origin labels. A survey conducted in Davao City yielded 263 valid responses. Conjoint analysis revealed that consumers place the highest importance on traceability information (49.805%), followed by fair trade certifications (25.374%) and origin labels (24.821%). Utility estimates indicated that coffee consumers in Davao City experience the highest positive utility when there is full traceability information, followed by partial traceability, the presence of fair trade certifications, and the presence of origin labels. The probability of participating in the third wave coffee movement is 0.380. Consumers with higher years of formal education, larger incomes, higher knowledge of origin labels, and those influenced by social factors were more likely to prefer third wave coffee attributes, while an increase in years of coffee drinking experience decreased consumer participation in the third wave movement. These findings offer valuable insights for stakeholders in the coffee industry. Producers can explore catering to consumer demands by offering ethically sourced and sustainability produced coffee products with traceability information. Investments in traceability systems, promotion of fair trade certifications, and strengthening of certifying organizations may improve consumer awareness of these third wave attributes. Furthermore, consumer education initiatives that promote ethical and sustainable attributes are also necessary to foster market growth. Further research exploring other factors can be utilized by coffee business to refine their marketing strategies and ensure long-term success in the evolving coffee market.