INTERNATIONAL JOURNAL OF MANAGEMENT (IJM)

International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online),
Volume 3, Issue 2, May-August (2012)

ISSN 0976 – 6367(Print)

ISSN 0976 – 6375(Online)
Volume 3, Issue 2, May- August (2012), pp. 401-410
IJM
© IAEME: www.iaeme.com/ijm.html ©IAEME
Journal Impact Factor (2012): 3.5420 (Calculated by GISI)
www.jifactor.com

A STRUCTURAL ANALYSIS OF PURCHASE INTENTION OF

ORGANIC CONSUMERS
SAKTHIRAMA.V, Research Scholar,
Department of Agricultural and Rural Management,
Tamil Nadu Agricultural University, Coimbatore –641 003
E-mail: sakthirama@gmail.com

Dr. R.VENKATRAM, Ph.D.,

Professor and Head,
Department of Agricultural and Rural Management,
Tamil Nadu Agricultural University, Coimbatore – 641 003
E-mail: management@tnau.ac.in
ABSTRACT
The aim of this study is to measure attitude, familiarity and purchase behavior of
consumers towards organic food in an urban city of India. Nowadays the consumer behavior
is changing towards purchase of many environmental friendly and organic products, due to
awareness of environmental degradation and the related issues. In India, emergence of
organic shops was supported the same. However, the studies related to consumer buying
behavior towards organic food were very few. Hence this study was conducted with the
specific objectives of measuring the attitude, knowledge and familiarity and purchase
intention with the structural model. The study was conducted in Coimbatore City. The sample
size consisted of 200 consumers selected randomly. These sample respondents were those
consumers who purchased organic products from the four selected organic stores. These
stores were selected based on sales volume. The findings and their implications discussed in
this study are been subject to empirical testing through analysis of data collected from 60
consumer respondents in three retail outlets located in Coimbatore city in India.
Keywords: organic products, consumer attitude, knowledge and familiarity, purchase
intention.

401
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online),
Volume 3, Issue 2, May-August (2012)

INTRODUCTION
The demand for organically produced food is increasing in many developing countries
(De Haen, 1999). While research on consumer perceptions, beliefs, attitudes and purchasing
practices of organically produced food has been done in many countries (Williams and
Hammitt, 2000; Jolly et al, 1989; Huang, 1996 in USA, Wright, 1997 in U.K, Hack, 1993 in
Netherland, Von Alvensleben, 1998 in Germany and Saunders, 1999 in New Zealand), very
few limited research has been done in India. In order to promote organically produced
products, a cohesive marketing strategy is needed which depends on a better and fuller
understanding of food consumers (Hutchins and Greenhalgh, 1997). In India retail companies
with their outlets are responding to the consumer demand for organically produced food and
most major retail stores carry at least a limited selection of these products.
Such habit preference arouse mainly from the changes in lifestyle of consumers who
perceive some lacunae in the newer methods of food production and their safety for
consumption. Over the last decade, there has been a remarkable increase in demand for
organic-produced food or products. Organic food is often seen and marketed as health-
conscious food, which contains fewer contaminants, more nutrients and most importantly
having a positive effect on the environment.
A C Nielsen’s (Nielsen, 2006) study indicates that Indians are amongst the top 10
global buyers of foods with ‘health supplements’. Also the study indicates Indians are keen to
purchase organic food for their children but it suffers from poor availability and premium
price perception. Due to high logistic cost and low volume operation, organic foods are still
costly (Chakrabarti, 2007). Organic food market in India is still at a nascent stage with
inadequate retail presence and little certified branded produce. But the organic market slowly
emerging and attracting the high end consumers. Only a minimum number of retail chains are
involved in marketing organic food in Indian major cities.
REVIEW OF LITERATURE AND HYPOTHESES
From the related research to consumer attitudes to organic foods indicated that
consumers have only positive attitude as they believed positively about the consumption of
organic foods. Schiffersten and Oude Ophuis (1998) and Von Alvensleben (1998) inferred
from a study that the organic consumers believed organic fruits and vegetables were healthy,
environmentally friendly, and more tasty and nutritious than conventionally grown foods and
have only positive attitude. Meanwhile the organic consumption is related to decreasing

402
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online),
Volume 3, Issue 2, May-August (2012)

confidence in the quality of conventional foods and to an increasing concern for health (Von
Alvensleben and Altmann, 1987).
Ajzen (2001) indicated that the more favorable the attitude with respect to a behavior,
the stronger is the individual’s intention to perform the behavior under consideration and
showed that when behaviors pose no serious problems of control, they can be predicted from
intentions with considerable accuracy.
Chen (2007) studied consumer attitudes and purchase intentions in relation to organic
foods in Taiwan and moderating effects of food-related personality traits and proved that
attitude positively affect the purchase intention. Choo et al. (2004) studied purchasing
behavior of new food product among innovator groups in India. They have found that
consumers’ attitudes will positively affect Indian consumers’ intention to buy new processed
foods. Besides, in India the experts also rated the attitude of the consumer is one of the
importances of the factors in the organic consumers’ purchase process Chakrabarti (2010).
Hence the hypothesis is as follows.
H1: Attitude will positively affect consumers’ intention to buy organic food products
Chryssochoidis (2000) indicated that consumers have a lack of knowledge on organic
food and those who do not buy it, will not, unless they are educated about its real benefits.
This highlights the need to understand the conviction of buyers about the utility of organic
food. Hill and Lynchehaun (2002) highlighted that knowledge and education appeared to be
central to the effective marketing of organic milk and argue that only when organic milk is
perceived to be relevant and appealing, the sales began to increase.Saba and Messina (2003)
studied the attitudes towards organic foods and risk/benefit perception associated with
pesticides. The subjects of the sample tended to hold positive attitudes towards eating fruits
and vegetables produced through organic agriculture.
Same way many studies support that information about the merits of particular food
or food production methods may result in the development of positive consumer attitudes and
increase the likelihood of consumers accepting these foods (Berg, 2004; McEachern and
Willock, 2004; Siegrist, 2000; Siegrist, Stampfli, Kastenholz, and Keller, 2008).
Based on the above reviews consumers’ knowledge and familiarity about the organic
food are important aspect to form their attitude. Meanwhile it has to be expected same
positive effect on purchase intention. Hence the hypotheses are as follows.
H2: Knowledge and familiarity about organic food will positively affect consumers’ attitude
to buy organico food products

403
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online),
Volume 3, Issue 2, May-August (2012)

H3: Knowledge and familiarity about organic food will positively affect consumers’ intention
to buy organic food products
Accordingly, a study focusing on purchase intention of organic food buyers in India
may provide insights for the entirely nascent but emerging category and its stakeholders. The
aim of this study is to measure attitude and knowledge and familiarity with purchase
intention. Thus, it is proposed to comprehensively test all the hypotheses and the following
conceptual model is proposed as follows.
Figure 1 Conceptual model

Attitude towards H1
organic foods

Purchase Intention
H3

Knowledge and
Familiarity H2

METHODS AND MEASUREMENTS

To measure the attitudes towards organic foods 13 statements were selected and
shortlisted based on the judge’s opinion. Besides, 6 statements for knowledge and familiarity,
and one statement for purchase intention were used. These constructs were measured with the
five-point Likert’s continuum of ‘Strongly agree’, ‘Agree’, ‘Neutral’ ‘Disagree’ and
‘Strongly disagree’ as response categories and measurement procedures followed for were
also assessed through enquiry (Choo et al., 2004). Before commencement of the actual
survey, the Interview schedule was pre-tested and based on the response; required
modifications were done before the Interview schedule was actually administered to
consumers.
Sampling and data collection

Next to Chennai, Coimbatore city is one of the major cities in Tamil Nadu. Coimbatore is
considered to be a tier II city with diversified cultures, wide socio-economic classes and highly
sophisticated lifestyles. Coimbatore consumers are already aware and interested in organic

404
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online),
Volume 3, Issue 2, May-August (2012)

products as environment friendly product and green product.The supply of organic food is
also steadily increasing (Banumathi, 2011). Besides, during the past two years many new
organic retail shops have been opened in Coimbatore. Out of the eight specialty organic retail
outlets, based on the sale volume, four organic retail outlets were selected for this study.
Consumer survey was conducted in these selected outlets. In each selected store, 50 consumers
were contacted at random and the total sample size was 200.

FINDINGS AND DISCUSSION

The details about general characteristics of sample respondents are shown in Table 1.
It could be seen from the table that majority of the respondents (53.33 per cent) were female
buyers of organic foods. Among the respondents, 69 per cent of customers had graduate level
education and about 35 per cent respondents were had their own business followed by the
private employees (32.4 per cent). About 41.40 per cent of the family households belonged to
Strivers category with yearly family income ranging between ` 5,00,000 and ` 10,00,000,
followed by 36.54 per cent of the families (Seekers) with an earning capacity of ` 2,00,000 to `5,
00,000.
Table 2 Factor loadings of attitude and familiarity
Socio economic characteristics Per cent
Gender Male 46.7
female 53.3
Educational levels Up to Schooling 21.9
Graduate 69.1
Occupational status Government Jobs 23.4
Private 32.4
Business 35.2
Home maker 7.0
Income (annual family) ( `) 90, 000 to 2, 00, 000 1.50
2,00, 001 to 5, 00, 000 36.54
5,00, 001 to 10, 00, 000 41.40
More than 10,00,000 20.56
Consumer Attitude towards organic products

The attitude towards the organic food was measured with 13 items and the knowledge
and familiarity of organic food were measured with 6 items. Factor loading of the used items
were depicted as follows in the Table 2. The reliability of the items checked with Cronbach
alpha value for the attitude scale and familiarity, 0.910 and 0.802 respectively. The values
were higher than the 0.7. So the reliability of the scales was good.

405
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online),
Volume 3, Issue 2, May-August (2012)

Table 2 Factor loadings of attitude and familiarity

Factor Cronbach’s
S.No Statements
loadings alpha
Attitude
1. To eat organic fruits and Vegetables is ….(foolish/wise) 0.913
2. To eat organic fruits and vegetables is….(bad/ good) 0.932
3. By eating organic fruits and vegetables I get a healthy food 0.908
By eating organic fruits and vegetables I get a food that is
4. 0.915
environmental friendly
5. By eating organic fruits and vegetables I get a better taste 0.867
By eating organic fruits and vegetables I get a food that is
6. 0.658
more nutritious
7 To eat organic fruits and vegetables means to pay more 0.904
0.910
To eat organic fruits and vegetables means to have
8 0.933
difficulties in finding them on the market
9 Organically grown foods contain less pesticide residues 0.842
Organically grown foods contain no artificial colourants,
10 0.908
flavourants and preservatives
11 Organically grown foods have more flavour 0.834
12 Organically grown foods must be certified 0.952
Organic certification ensure the trust worthiness of organic
13 0.872
vendors
Knowledge and Familiarity of organic foods
1. I frequently buy organic foods 0.917
2. I like to visit the organic stores to know about the products 0.983
3. I often tell my friends about organic products 0.842
I used possible ways to know about my interested organic 0.802
4. 0.700
product or services
5. I like to know and read about organic production 0.608
6. I like to see the promotions of organic products– ads, vedio 0.983

406
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online),
Volume 3, Issue 2, May-August (2012)

Figure 2 Structural model

Attitude towards 0.871

organic foods

Purchase Intention
0.772

Knowledge and
Familiarity 0.642

Chi square ( χ 2) = 1.80 [1df]

CFI = 0.984
AGFI = 0.937
RMSEA = 0.028

Based on the result of structure equation model (Fig 2), the model was fit with the
Chi-square ( χ 2 ) of the model is 1.80, at significant at one per cent level. The Adjusted
Goodness-of-Fit Index (AGFI), a measure of the relative amount of variance and covariance
of sample and is jointly explained by hypothesized model and the index. The index ranges
from zero to 1.00 and values closer to 1.00 is indicative of good fit (Joreskog and Sorbom,
1993). The Comparative Fit Index (CFI) value ranges from zero to 1.00. The CFI value of
greater than 0.90 considered a well-fitted model . In this study, AGFI (0.937) and CFI (0.984)
indicated that the model fitted the data well in the sense that the hypothesized model
adequately described the sample data.

The Root Mean Square Error of Approximation (RMSEA) was first proposed by
Steiger and Lind in 1980, was only recently been recognized as one of the most informative
criteria in covariance structure modeling. RMSEA value less than 0.05 indicated a good fit
and values as high as 0.08 represented reasonable errors of approximation in the population
(Browne & Cudeck, 1993). In this study the RMSEA value for the model was 0.028 and it
was indicative of good fit between the hypothesized model and the observed data. Attitude
towards organic food affect the purchase with the path coefficient of 0.871 and knowledge
and familiarity affect the purchase with the path coefficient of 0.642. Besides, knowledge and

407
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online),
Volume 3, Issue 2, May-August (2012)

familiarity affect the attitude with the path coefficient of 0.772. Hence the conceptual model
and hypotheses were proved.

Table 3 Summary of Hypothesis and Results of Testing

Hypothesis
Hypothesis Supported
Number

Attitude will positively affect consumers’ intention to buy

H1 Yes
organic food products
Knowledge and familiarity about organic food will positively
H2 Yes
affect consumers’ attitude to buy organico food products

Knowledge and familiarity about organic food will positively

H3 Yes
affect consumers’ intention to buy organic food products

CONCLUSION
From the foregoing discussion the attitude and purchase intention of consumers
towards organic food in an urban city of India. The purchase intention was influenced by
attitude and knowledge and familiarity of consumers. Meanwhile knowledge and familiarity
of consumers affect the attitude of the consumer. Besides, the findings of the study indicate
that knowledge and familiarity should be considered by organic food producers and
marketers as a key factor influencing organic food consumption. Information and promotion
campaigns could focus on promoting organic foods, so the consumers are provided with
elements and experiences that stimulate their knowledge and familiarity. Same way the
retailers of organic products often invest a relatively high share in communication related to
organic food products. Such communication efforts can be effective for conveying factual
information to build knowledge among consumers. Furthermore the retailers could providing
a visible place to organic products in shop may increase consumers’ familiarity. Additionally
the organic food producers as well as retailers are recommended to inform people about the
beneficial aspects of organic foods in addition with organic farming practices. Such
emotional appeal like enjoyment and pleasure could reinforce positive attitudes towards
organic foods. Hence improving the knowledge of consumer with positive consideration will
lead to create positive attitude. This will lead to positive purchase intention.

408
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online),
Volume 3, Issue 2, May-August (2012)

REFERENCE
1. ACNielsen, (2006, February 20). “Indians Amongst the Top 10 Buyers of Foods with
‘Health Supplements’ Globally but Lack Access to Organic Food Products”.
Retrieved from http://www.acnielsen.co.in/news/20060220.shtml
2. Ajzen, I. (2001). “Nature and operation of attitudes”, Annual Review of Psychology, Vol.
52, pp. 27–58.
3. Banumathi, M. (2011). “A study on the environmental awareness and the changing
attitude of the students and public in Coimbatore towards green products”. Research
Journal of Social Science and Management, Vol. 7, No.1, pp.75-84. Retrieved from
www.theinternationaljournal.org
4. Berg, L. (2004). “Trust in food in the age of mad cow disease: A comparative study of
consumers’ evaluation of food safety in Belgium, Britain and Norway”. Appetite,
Vol.42, No.1, pp. 21–32.
5. Browne, M. W., & Cudeck, R. (1993). “Alternative ways of assessing model fit.”
In K. A. Bollen & J. S. Long (Eds.), Testing structural equation models
(136–162). Newbury Park, CA, Sage.
6. Chakrabarti, S. (2010). “Factors influencing organic food purchase in India – expert
survey insights”. British Food Journal, Vol.112, No.8, pp. 902–915.
7. Chakrabarti, S., & Baisya, R. K. (2007). “Purchase Motivations and Attitudes of
Organic Food Buyers”. Decision, Vol.34, No.1, pp.1-22.
8. Chen, M.F. (2007). “Consumer attitudes and purchase intentions in relation to organic
foods in Taiwan: Moderating effects of food-related personality traits”. Food Quality and
Preference, Vol. 18, pp.1008–1021.
9. Choo, H. J., Chung, J. E., & Psysarchik, D. T. (2004). “Antecedents to new food
product purchasing behavior among innovator groups in India”. European Journal of
Marketing, Vol.38. No.5, Issue.6, pp. 608-625.
10. Chryssochoidis, G. (2000). “Repercussions of consumer confusion for late introduced
differentiated products”. European Journal of Marketing,Vol. 34. No.5, Issue.6, pp.
705-722.
11. De haen, H. 1999. “Producing and marketing quality organic products: opportunities
and challenges”. 6th IFOAM Trade Conference. http://www.fao.org/organcag/
doc/IFOAM-.htm (Accessed 5 February 2001).
12. Hack, Md. 1993. “Organically grown products: perception, preference and motives of
Dutch consumers”. Acta Horticultuae, Vol. 340, pp247-253.
13. Hill, H., & Lynchehaun, F. (2002). “Organic milk: attitudes and consumption
patterns”. British Food Journal, Vol.104, No.7, pp. 526-542.
14. Huang, CL .1996. “Consumer preferences and attitudes towards organically grown
produce”. European Review of Agricultural Economics, Vol. 23, No.3 pp.331-342.
15. Hutchins, RK & Greenhalgh, LA. 1997. “Organic confusion: sustaining competitive
advantage”. British Food Journal Vol. 99, No.9, pp.:336-338
16. Jolly, Da, Schutz, Hgk, Diaz-Knauf, V & Johal, J. 1989. “Organic foods: consumer
attitudes and use”. Food Technology, Vol. 43, No110, pp.60-66.
17. Joreskog, K. G., & Sorbom, D. (1993). “Lisrel: analysis of linear structural
relationships by the method of maximum likelihood, instrumental variables and least
squares methods”. Version VI. Moorseville, IN, Scientific Software.
18. McEachern, M. G., & Willock, J. (2004). “Producers and consumers of organic meat:
A focus on attitudes and motivations”. British Food Journal, Vol. 106, No.2. The
sociology of food : eating, diet and culture. London: Sage Publications Ltd, 152

409
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online),
Volume 3, Issue 2, May-August (2012)

19. Saba, A., & Messina, F. (2003). “Attitudes towards organic foods and risk / benefit
perception associated with pesticides”. Food Quality and Preference, No.14, pp.637-
645.
20. Saunders, C. 1999. “The potential for expansion of the organic industry in New
Zealand: A contingent valuation of consumers WTP for organic produce”. Discussion
paper no. 77. Commerce Division, Lincoln University, Canterbury.
21. Schifferstein, H.N.J., and Oude Ophuis, P.A.M. (1998). “Health-related determinants
of organic foods consumption in The Netherlands”. Food Quality and Preference, Vol.
9, No. 3, pp. 119-33.
22. Siegrist, M. (2000). “The influence of trust and perceptions of risks and benefits on
the acceptance of gene technology”. Risk Analysis, Vol.20, No.2, pp.195–204.
23. Siegrist, M., Stampfli, N., Kastenholz, H., & Keller, C. (2008). “Perceived risks and
perceived benefits of different nanotechnology foods and nanotechnology food
packaging”. Appetite, Vol.51, No.2, pp. 283–290.
24. Von Alvensleben, R. 1998. “Ecological aspects of food demand: The case of organic
food in Germany”. AIR-CAT 4th Plenary Meeting. Health, Ecological and Safety
Aspects in Food Choice, Vol. 4, No1, pp.68-79.
25. Von Alvensleben, R., & Altmann, M. (1987). “Determinants of the demand for
organic foods in Germany”. Acta Horticulturae,Vol. 20, No.3, pp. 235–242.
26. Williams, PR & Hammitt, JK. 2000. “A comparison of organic and conventional fresh
produce buyers in the Boston area”. Risk Analysis, vol.20, No.5, pp.735–746.
27. Wright, S. 1997. “Exciting times for organic food”. http://www.organic-
consultancy.com/articlesifi.shtml (Accessed 30 January 2001).

410