Does the cooperative label make a difference? determinants of consumer willingness to pay for packaged milk

Abstract This study investigates the potential market presence of packaged milk sold under a cooperative brand name in Şanlıurfa, Türkiye, and consumers' willingness to pay (WTP) for such products. Utilizing a contingent valuation method with a double-bounded dichotomous choice format, data was collected from 396 participants in Şanlıurfa. The findings indicate that the mean WTP for cooperative-branded packaged milk is TRY 30.26 ($0.88 as of December 2024, when the survey was conducted) per liter. Socio-demographic factors such as gender, income, education, and household with children significantly influence WTP. Specifically, men are less likely to pay, while higher income, university education, and presence of children in the household increase WTP. Perceived brand parity negatively impacts WTP, and price sensitivity significantly reduces WTP. The study concludes that cooperative-branded milk has a favorable market potential, especially with a price-oriented strategy. It emphasizes the importance of integrating cooperatives' ethical values, social benefits, and local production advantages with effective marketing to build strong brand value. This initiative not only benefits milk farmers economically but also provides consumers with trusted local products, fosters economies of scale, and supports rural development and food security.