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Factors Influencing Organic Food Purchase Intention in Developing Countries and The Moderating Role of Knowledge
Factors Influencing Organic Food Purchase Intention in Developing Countries and The Moderating Role of Knowledge
Factors Influencing Organic Food Purchase Intention in Developing Countries and The Moderating Role of Knowledge
To cite this article: Christos Fotopoulos & George Chryssochoidis (2001) Factors Affecting the
Decision to Purchase Organic Food, Journal of Euromarketing, 9:3, 45-66
Article views: 32
INTRODUCTION
During the last two decades, concern about the environment has
become a fundamental economic issue world-wide (Charter, 1992;
Peattie, 1992). Among the areas where this influence is most evident is
consumers’ attitudes towards food. Consumers now realise that many
food products are produced at nature’s expense by destroying soils and
polluting water via the excessive use of fertilisers, insecticides and
weed-killers in farming (Grunert and Kristensen, 1992).
The high concentration of nitrates in irrigation water or pesticide
residues and veterinary drugs in agricultural and processed food prod-
ucts are now considered to be a serious threat to human health (Foto-
poulos, 1996). This has triggered a change in food consumption. Con-
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Objectives
keep consumers away from organic food because they do not feel
informed enough to make a rational choice. Thus:
H7: The higher the consumers’ income; the higher their level of
education; the younger their age; and the lesser the propor-
tion of food expenditure in their total household budget, the
greater their actual purchases of organic food.
Ecological
consciousness
Importance of
organic food
attributes
Manner of
conducting food
purchases
Perceived
self-competence
Proximity to
organic food
outlets
Demographic
characteristics
(age, education,
income)
On a further note, it should be noted that the present model has not
considered important issues such as country of origin, brand and re-
tailers’ influence upon consumer assessment. The reasons relate to the
current state of the development of the organic foods’ market in
Greece. First, the majority of currently available organic food products
are produced locally by small producers. Similarly, most marketing
practices currently employed by Greek organic food producers appear
not to consider brand issues in a serious manner. Many products are
sold in primitive packaging and we witness limited attention on the
part of producers to project through strong brand-building strategy the
differentiation of their products from their conventional food counter-
parts. To make this point clearer, it may be sufficient to mention that
among the main elements that currently seem to distinguish the organ-
ic from the conventional food products in the country is their mere
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METHODOLOGY
Our research focuses on a sample of 205 Greek consumers familiar
with organic food products. It is part of a broader project conducted by
the Athens-based Agricultural Economics and Social Research Insti-
tute on the structure of the Greek agricultural sector. It should be
stressed that this research is only exploratory in nature and the sample
should not be considered as representative. There is not a clear picture
of the total population who buy organic food products since relevant
statistical information is not available. An effort was made, however,
to reach a population familiar with organic foodstuff by collecting data
Christos Fotopoulos and George Chryssochoidis 53
RESULTS
The characteristics of the answers to the dependent variable were
first examined. The mean answer to the two questions tapping the
actual purchase of organic food products was 3,80 in a scale 1 (= ‘‘not
at all’’) to 5 (= ‘‘very much’’) with a standard deviation of 1,09. The
distribution of answers regarding the frequency of actually purchasing
organic food has a mean 85 (times/year), standard deviation 106
(times/year) and is summarised the following way: first quadrant: 24
times/year; second quadrant 52 times/year; third quadrant 96 times/
year; finally, 11% of the respondents answered that they purchase
organic food daily. It should be stressed that these data were collected
in outlets or street markets selling organic food; this is the main reason
for the aforementioned high consumption frequencies of organic food.
The characteristics of the answers to the independent variables were
examined next. Transformations were necessary for five variables
(namely, the variables X2, X4, X9, X15, X16) by using the square root
(X9, X16), the decimal logarithm (X15) or the inverse squared root (X2,
X4). Last, but not least, we examined the presence of outliers in our
data. By using the likelihood criterion p < 0.001 for the value of the
distance Mahalanobis (D 2) and distance Cook a small number of ob-
servations bearing extreme values were disregarded (final sample size,
n = 190).
Table 2 shows the correlation coefficients (Product moment correla-
tion coefficients) among the variables examined. The values of these
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56
56
57
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58
58
X1
X2 --
X3 0.19** --
X4 -- -- --
X5 -- -- 0.69*** --
X6 -- -- 0.57*** -- 0.80***
X7 -- -- 0.57*** -- 0.80*** 0.98***
X8 -- −0.25*** -- -- -- -- --
X9 -- -- -- -- -- -- -- --
X10 -- -- -- -- -- -- -- -- 0.22**
X11 -- -- -- -- -- -- -- -- -- 0.97**
X12 0.14* -- -- -- -- 0.18* -- -- -- 0.96*** 0.98***
X13 -- -- -- -- -- -- -- -- -- -- -- --
JOURNAL OF EUROMARKETING
coefficients range between +/− 0.14 and 0.98; for example, a correla-
tion of 0.70 between two variables implies that one unit change in one
of the two variables will bring a 0.70 change upon the other (possible
values are in the interval −1 to +1). There is a general trend of lack of
statistical significance in the correlation among the variables ex-
amined; this lack however is not of major importance at present. This
is because our objective is to clarify whether a range of specific
psychological and socio economic factors positively affect consumer
organic food purchases, not the inter relationships among these fac-
tors. On the one hand, the preceding trend of lack of statistical signifi-
cance in the correlation among the variables examined hints a possibly
interesting issue for further analysis. More exactly, this issue is the
significant dispersion of respondents regarding their responses to
questions (e.g., there is no clear trend of correlation between ecologi-
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cal consciousness (X1) and age (X14) in the organic food consumers,
interviewed). On the other hand, the existence of certain high values
indicates possible serious inter dependency of some factors. For exam-
ple, product appearance (X5) is highly correlated (0.69) with the exis-
tence of an organic certification label (X3).
Table 3 presents the parameter estimates of the independent vari-
ables in the regression equation above and the corresponding t-statis-
tics. The statistical results are fairly satisfactory. The determination
coefficient R2 is 0.38. Five variables appear to be statistically signifi-
cant in explaining the actual consumption of organic food, in the
present sample. The variables X12 (familiarity with organic food; t-
statistic = 4.782, p < 0.001) and X9 (conception of differences existing
between organic and conventional food; t-statistic = 3.901, p < 0.001)
are significant at less than 0.1 percent level. The variables ‘‘label of
organic certification’’ X3 (t-statistic = 2.982, p < 0.01) and ‘‘the thought-
ful manner of conducting food purchase’’ X8 (t-statistic = 2.793, p <
0.01) are statistically significant at the 1 percent level. Finally the
variable ‘‘available variety of products’’ X7 (t-statistic = 2.543, p <
0.05) is statistically significant at the 5 percent level. The rest of the
independent variables do not seem to play a significant role in the final
actual purchase of organic food, with respect to our present sample.
No multicollinearity problems or other violations of the statistical
process were identified (Hair et al., 1995)--the values of VIF range
from 1.0 to 1.4. Table 4 shows how the results compare with the initial
model hypotheses.
60 JOURNAL OF EUROMARKETING
Statistical
Coefficient significance
Variables estimates t statistic p<
Constant 0.082 --
X1: Ecological consciousness −0.095 −1.335 --
X2: Nutritional content 0.031 0.468 --
X3: Organic certification label 0.195 2.982 0.01
X4: Absence of pesticides/insecticides −0.036 −0.560 --
X5: Product appearance −0.026 −0.372 --
X6: Product flavor 0.097 1.455 --
X7: Available product variety 0.170 2.543 0.05
X8: Thoughtful manner of conducting purchase 0.201 2.793 0.01
X9: Perceived differences 0.261 3.901 0.001
X10: Familiarity with differences existing between
org. and conv. food 0.022 −0.329 --
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Sign of initial
Hypothesis hypothesis Result
At the same time, it may be seen that other important factors do not
play the expected role. Thus, income or the high proportion of food
expenditure in the monthly household budget, or the proximity of
‘‘organic’’ outlets to home are not essential factors in the purchase of
organic food. The same holds for other factors such as the physical
taste or the products’ appearance. However, one may note their high
correlation coefficients to the label of organic certification (0.57-0.69,
p < 0.001); this implies that the consumer considers them as given
when the product is certified. In contrast, the lack of correlation be-
tween the nutritional content or the lack of pesticides/insecticides to
the actual purchase is a point that merits further examination. At the
same time, there is a series of other elements that the present study
brings to the surface, the indications of which appear in Table 2 (cor-
relation coefficients). One example is the low (although statistically
significant) positive correlation between income and education (0.14,
p < 0.05) for the sample analysed. The same holds for the relationship
between age and the portion of food expenditure in the monthly bud-
get (0.23, p < 0.001). This indicates that older individuals spend more
Christos Fotopoulos and George Chryssochoidis 63
AUTHOR NOTES
Christos Fotopoulos has published over 60 academic and conference papers and
participated in 15 international and European Union research programs, in 5 of which
he acted as scientific coordinator. He serves on the editorial board of academic
journals including the international Supply Chain Management and the national
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Agriculture Research.
George Chryssochoidis’ work has focused on commercialisation of innovations
and food marketing. He has published in the Journal of Global Marketing, the
International Journal of Technology Management, the European Journal of Innova-
tion Management, the Journal of Product Innovation Management, the European
Journal of Marketing, and the Journal of International Food and Agribusiness Mar-
keting among others.
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