2.3.1. Supply Side: WTP
Certification of ELF in forestry (ELFF) in the international community began in the early 2000s with the expectation of sustainable development of local forestry and income generation of people through niche markets [
9,
27]. Experts believe that forest certification plays a major role in commercializing forest products by enabling producers to produce responsibly and to facilitate market access [
4,
28]. According to Shanley, Pierce, Laird and Robinson [
4], the main goal of the ELFF certification is to produce ELFF that is ecologically sound, create social profits and ensure economic viability. Pierce et al. [
29] have analyzed the effect of market-based certification systems on communities and producers for ELFF produced in mountain villages.
Wilsey and Radachowsky [
12] have analyzed forest areas of the Maya Biosphere Reserve and found that ELFF certification is economically feasible because it provides local forest workers with the commercialization of ELFF products. Schmitt, Pokorny and Ying [
13] have reported that China has technological and financial resources to produce, manage and monitor ELFF products. However, they find that the role of ELFF is minimal. Since it is more attractive to meet certification requirements for crops and cropped ELFFs than ELFFs, the need to certify general ELFFs is minimal. They also stated that without the help of an outside organizations, small-scale poor tenants and peasants would have difficulty getting the real benefits. Without intensive and sustained support for them, China’s efforts on ELFF could even destroy the traditional ELFF market.
Meanwhile, Guedes Pinto, Shanley, Cota Gomes and Robinson [
6] reported that certification of forest management through the Forest Stewardship Council (FSC) began in the 1990s after non-governmental organizations (NGOs), communities, private sector, researchers and governments began to carry out efforts to certify ELFFs. The certification focused only on wood. Brazil played an important leadership role in the process. In their paper, Brazil’s certification cases, public policy and success factors for the ELFF process of the FSC are presented. Similarly, Pierce, Shanley and Laird [
29] have introduced some difficulties and successes that ELFF producers face in obtaining certification based on their eight-year experience with the FSC. Accordingly, ELFF is part of a low-value product family with a low margin that requires a lot of labor input but with a low valued product, resulting in an low level of the economy scale. Thus, it may be difficult for the supply of ELFF to keep up with the market demand. In addition, it threatens the existing market with an oversupply of uncertified, inexpensive products. Thus, this study has the following hypothesis:
Hypothesis H1. While ELF contributes to sustainability, ELF producers hesitate to pay for certification as much as the market expects.
2.3.2. Demand Side: Satisfaction
Suppliers are obliged to pay the certification fee for ELF [
10]. Most costs will be burdensome for small forest product providers [
7]. However, since an ELF can contribute to sustainability, it is worth looking at how certification is delivered to buyers. ELF providers may be reluctant to produce ELFs because of the cost of certification. However, if consumers are fully aware of this and intend to purchase, the marketability will require a long-term investment [
7,
30]. In other words, from a supplier’s perspective, the WTP should come up with some solutions to the uncertainty about certification. Furthermore, efforts have been made in many countries to introduce a forestry product certification system, going beyond the focus of wood certification only since the 2000s [
12,
31]. Positive responses are prevalent. For example, a market tool called a certification system is introduced. It allows non-timber forest products to be managed under more social and environmental responsibility and relieves anxiety about food on the part of consumers. It is becoming a more eco-friendly yet healthy source of so-called sustainable consumption [
32].
Duchelle, Kainer and Wadt [
5] have compared and analyzed environmental and socioeconomic benefits of Brazil’s nut certification to 231 producers of 17 local communities in Bolivia, Brazil, and Peru from 2006 to 2007. Differences in management methods between certified and uncertified producers concerning ELF were compared and analyzed. Socio-economic benefits of certified ELF were then investigated. Finally, producers’ awareness of ELF certification was investigated. Producers earned financial and social profit in the following order: Bolivia, Peru and Brazil. Their study argues that partnerships with co-operatives, donors, governments and non-governmental organizations are essential for preserving ecosystems through certification and maximizing the production goal.
Krishnakumar et al. [
33] have surveyed 101 households in India’s Kadars region to identify the extent of social and economic dependence of ELFs on households in the Karar region and performed a comparative analysis of market values that ELFFs have on the Kadars region as a post-certification reward under current market conditions. Their study performed a scenario analysis after dividing the certification area by 500 ha, 1000 ha and 2500 ha, estimating that the annual profit from the current status is 405.7 dollars. Their study also estimated the annual profit margin that could be obtained after the certification, and found that there was a price premium of 35% or more of the profit.
Yadav and Dugaya [
34] have found that ELFF certification is a marketing tool to appeal to environmentally conscious consumers to sustainably manage healthy forests. It is mainly due to social concerns about the social and environmental significance of forests. ELFFs have played an essential role in social, economic and cultural life for mountain-dwelling residents of countries with tropical rain forests such as India. Certification has covered more than 46,000 different species, with varying local access to these ELFFs, usage methods, commercialization, management practices and policies. In other words, if the consumption of ELFF consistently benefits producers by emphasizing that it is a safe food for consumers and making forests sustainable at the same time, the certification’s contribution to sustainability would be significant.
According to research on the Korean market, which is the subject of the present study, Heo et al. [
35] have concluded that consumers value certified peaches two-thirds more than non-certified peaches. In an analysis of consumers’ willingness to pay for genetically modified agricultural products and general agricultural products that have potential risks to ecosystems and health, Kwon [
36] has found that the intention to pay for general agricultural products is twice as much as that of genetically modified agricultural products. According to Shukri and Awang Noor [
8], although existing studies had shown a growing demand for certified wood products in developing countries, most of the demand for certified products is in North America or in European countries where there is room for environmental and ethical recognition. A study was conducted in Kuala Lumpur on whether consumers in Malaysia, which produces and exports certified wood products, paid a price premium for environmentally certified wooden furniture. That study showed that if the majority of respondents (74%) became aware of certification, they would purchase certified products rather than uncertified products [
8]. The above findings show that consumers with a higher awareness of certification are more willing to purchase certified products.
Meanwhile, Kim, Lee and Sok [
15] have studied housewives and analyzed the status of their use related to certified products and the methods, satisfaction and intent to obtain information on ELFA to suggest the direction for improvement of the ELFA system. They found that the ease and satisfaction of obtaining information on ELFA had a positive effect on purchasing intent. Nam and Noh [
16] have proposed a certification system as a form of response to uncertain product information. The consumption of certified products can increase consumer satisfaction by eliminating the uncertainty. Lee et al. [
37] have analyzed consumers’ status and purchasing patterns using ELFA. They found that consumers’ attitudes, such as awareness of eco-friendly agricultural products and concerns about health enhanced their satisfaction with certified products and affected their purchase of ELFA. Shukri and Awang Noor [
8] also claimed that certified wood products showed a high level of satisfaction with consumers’ use. They reported that consumers were willing to pay about 18% more for certified ELFF than for their competitors not certified for ELFF. The above findings show that consumers who are more satisfied with certification are more likely to purchase certified products. Thus, this study has the following hypothesis:
Hypothesis H2. Consumers with higher awareness of ELFA will be more willing to purchase ELFF.
Hypothesis H3. Consumers with higher satisfaction of ELFA will be more willing to purchase ELFF.