Are consumers willing to pay a premium for local Thai distilled spirit?

Abstract

This study examines consumers’ willingness to pay a premium (WTPP) for community-based distilled liquor produced from Lanna rice in Northern Thailand. Drawing on the Theory of Planned Behavior (TPB) and the Stimulus–Organism–Response (SOR) framework as guiding lenses, it analyzes how socioeconomic characteristics, prior experience, perceived product value, and digital engagement relate to premium participation and premium depth. Survey data from 400 respondents (63.25% willing to pay a premium) are analyzed using an ordered probit model with sample selection, jointly modeling the decision to pay a premium and the premium level accepted (5–9%, 10–14%, 15–19%, ≥20%). The results show that education and income increase premium participation, while perceived product value is the main driver of acceptance of higher premium tiers. Generational heterogeneity is evident, with Generation Y displaying a stronger premium orientation and Generation Z showing a lower propensity to accept high premiums. Digital engagement facilitates participation at lower premium levels but constrains acceptance of higher premiums. The findings also highlight a two-stage premium decision process and emphasize the importance of value-based positioning and credibility-focused digital communication in cultural-heritage beverage markets.

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