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Determinants of Consumer’s Willingness to Pay towards Organic Products: A Structural Equation Modelling Approach

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Relation http://oar.icrisat.org/11957/
10.17485/IJED/v9.2021.126
 
Title Determinants of Consumer’s
Willingness to Pay towards Organic
Products: A Structural Equation
Modelling Approach
 
Creator Harishankar, K
Ashok, K R
Saravanakumar, V
Shalander, K
Duraisamy, M R
Maragatham, N
 
Subject Food Processing & Technology
Food and Nutrition
 
Description Background: India’s food industries are hotly debated as there are numerous
scandals involved in tainted food products, which deliberately lowers the
public’s confidence. These incidents made the organic food market growth
in developing countries, especially in India. Objective: This study examines
the underlying factors that influence consumer’s willingness to pay for organic
products. Methods: Coimbatore district of Tamil Nadu in India was purposively
selected for the study using a structural equation model (SEM) with 250
respondents. The study was conducted in twelve organic shops distributed
across the district. The model is bifurcated into the willingness to pay construct
and attitude construct, which helps understand the factors influencing the
consumer’s willingness to pay towards organic products. Findings: The results
from the attribute construct showed that health concerns, environmental
concerns and subjective norms were found to positively affect the consumer’s
attitude towards purchasing the organic product. In the case of willingness
to pay construct, the factors like attitude, knowledge, awareness and income
of the consumers positively influence willingness to pay towards the organic
product. In contrast, the factor perceived expensiveness was contrary in
nature. Novelty: This empirical study provides a good understanding of
purchase intention towards organic products, which will aid the producers,
middlemen, and stakeholders develop the product and expand the market.
 
Date 2021-12
 
Type Article
PeerReviewed
 
Format application/pdf
 
Language en
 
Identifier http://oar.icrisat.org/11957/1/IJED-2021-126.pdf
Harishankar, K and Ashok, K R and Saravanakumar, V and Shalander, K and Duraisamy, M R and Maragatham, N (2021) Determinants of Consumer’s Willingness to Pay towards Organic Products: A Structural Equation Modelling Approach. Indian Journal Of Economics And Development. pp. 1-7. ISSN 2320-9836