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Does brand credibility matter? The Brand

credibility of
case of organic food products organic food
products
Chandra Sekhar and Swati Krishna
FORE School of Management, New Delhi, India
Ghadeer G. Kayal
Prince Mohammad Bin Fahd University, Al Khobar, Saudi Arabia, and Received 30 March 2021
Nripendra P. Rana Revised 24 June 2021
Accepted 14 July 2021
College of Business and Economics, Qatar University, Doha, Qatar

Abstract
Purpose – This study’s main objective is to investigate the influence of brand credibility on the intention to
purchase organic food. In addition, this research studies the moderating role of customer ethnocentricity as well
as the mediating role of customer value.
Design/methodology/approach – To explore correlations between brand credibility and purchase
intentions, cross-sectional data were collected from 433 Indian consumers. The data were analysed by
structural equation modelling.
Findings – The findings indicate that brand credibility is positively related to purchasing intention. The
association between brand credibility and purchasing intentions is partially mediated by customer value.
Customer ethnocentrism was also shown to have a negative moderation effect. Healthiness, high quality and
sensory properties (i.e. natural taste) were found to be some of the most significant organic food characteristics,
according to Indian consumers.
Research limitations/implications – The research is confined to India’s geographical area, specifically the
National Capital Regions.
Practical implications – To increase the purchase frequency of local or global branded organic food,
businesses can include rational features in their marketing method such as the health benefits compared to the
conventional product, a better emphasis on environmental safety and the social advantages of organic food.
Originality/value – This study develops an integrative model, including brand credibility (PBG & PBL), to
predict organic food purchase intentions. This is an important contribution as, according to the results of the
literature review, no previous studies have analysed these relationships.
Keywords Brand credibility, Brand globalness, Brand localness, Customer ethnocentrism, Customer value,
Organic food, Purchase intentions
Paper type Research paper

1. Introduction
Organic food farming is gaining popularity globally. This form of farming supports low
greenhouse gas emissions (about 22%), natural resource conservation (mostly water) and
curbs’ pollution levels (Asif et al., 2018; UN, 2020). Past studies confirmed that “Global organic
agro-product sales reached $US 165.52 billion in 2018, nearly a 10% increase of sales in 2017”
(Willer and Lernoud, 2019), largely driven by consumer demand (Rana and Paul, 2017).
Scholars have mentions myriad reasons for this growth includes ethical choice consideration
(Tandon et al., 2020), consumer concern about ecological sustainability (Basha and Lal, 2019).
Now, nearly 33% of the world production of organic food comes from the emerging
economies (UN, 2020). It is estimated that the Indian domestic organic food market will be
worth US$1.36bn by 2020, with an annual growth rate of 25–30% [1]. Some Indian states,
such as Sikkim, are actively promoting domestic organic food production [2]. Governments
have imposed a range of policies to support organic food production and purchase; for
British Food Journal
The infrastructural support provided by the FORE School of Management, New Delhi in completing this © Emerald Publishing Limited
0007-070X
paper is gratefully acknowledged. DOI 10.1108/BFJ-03-2021-0326
BFJ example, lower sales taxes on the purchase of organic products. India exported organic food
to developed nations like United States of America, and countries in Europe; however, the
local demand gradually rose, and Indian consumers started showing interest in organic food
as well (Boobalan and Nachimuthu, 2020; Kushwah et al., 2019; Sadiq et al., 2020).
Furthermore, a survey led by the Associated Chamber of Commerce and Industry
(ASSOCHAM) of India reported that the Indian market has begun to show a growing
acceptance of organic food over the last decade (Boobalan and Nachimuthu, 2020; Sadiq et al.,
2020). Kushwah et al. (2019) argued that seeing the proportion of its demand and the market
size, India is still at a nascent stage.
Despite this growth, organic food remains a niche market (Willer and Lernoud, 2019)
attracting consumers with specific profile (Truong et al., 2021). Extant literature outlined
numerous benefits from organic food includes health concerns and food safety (Truong et al.,
2021), environmental concerns and animal welfare (Winterstein and Habisch, 2021), higher
quality and better taste (Ditlevsen et al., 2020), higher level of minerals, antioxidants, vitamins
and reduces the obesity (Akrout and Kaswengi, 2019; Tandon et al., 2020). Customers view the
differences in taste and higher nutrition content as the key driver for purchase intention. Here,
the perceived better taste is a signal of “being organic”, for instance, taste is completely different,
smell is stronger and tastier. While other studies mention “sensory differences” and “higher
nutrition content” as an important motive for organic food purchase intention and consumption
(Liu et al., 2021). From a customer perspective, organic food is preferable in the current climate
due to increasing concerns about health and the environment (Akrout and Kaswengi, 2019;
Tandon et al., 2020; Winterstein and Habisch, 2021). Therefore, it is beneficial from both the
supplier and the customer perspectives, especially considering the environmental benefits,
which are important for heavily polluted countries such as India. If the organic food segment
gains traction, then customers have the option of getting locally produced, chemical-free food
products with a traceable certification trail and assurances from both the government and
suppliers (Arora et al., 2021; Basha and Lal, 2019). Recent Indian government policies calling for
“Aatmanirbhar Bharat” (self-reliant India), along with the increasing popularity of chemical-free
food, has led to producers and consumers emphasising the localness aspect of their brands and
appealing to customers’ ethnocentric tendencies to encourage purchase intentions (Arora et al.,
2021; Boobalan and Nachimuthu, 2020; Kushwah et al., 2019). In its simplest form,
“Aatmanirbhar Bharat” means that India should minimise its reliance on foreign countries.
Brands are an integral part of today’s world, especially regarding communication between
an organisation and its suppliers and consumers. As observed in the American brand’s case,
“Annie’s homegrown” (or simply Annie’s is an American organic food company owned by
General Mills), local and global organic food brands are game-changers as they help suppliers
reduce the supply–demand gap (Akrout and Kaswengi, 2019, p. 2; Winterstein and Habisch,
2021). Rezai et al. (2012) suggests focussed, more extensive and credible labelling is an
important attribute in purchase decision-making to consumers. However, their
understanding of the positive consequences for purchasing specific organic food options
are limited and this could also be provided at the point of purchase through more detailed and
focussed labelling (Ditlevsen et al., 2020). Past research (Erdem et al., 2006; Mandler et al.,
€
2020; Ozsomer, 2012) has emphasised that the development of brand credibility among
customers is based on its ability to deliver on its promises, in addition to the brand’s
trustworthiness and knowhow. However, the ultimate driver of credibility among customers
is consistent, high-quality products and services, which leads to positive testimonials and a
good reputation (Boobalan and Nachimuthu, 2020).
The rapidly changing tastes of customers are putting an increasing amount of pressure on
globally positioned brands (Steenkamp et al., 2003), but locally positioned brands are gaining
popularity as they can target local tastes and adapt to them better (Steenkamp, 2019). As per
signalling theory, brand credibility is influenced by two kinds of perception among customers
regarding brands, i.e. “perceived brand globalness” (PBG) and “perceived brand localness” (PBL). Brand
PBG refers to the “customer perception that a brand is promoted and recognized in multiple credibility of
countries, thus becoming a global brand” (Steenkamp et al., 2003, p. 54). Similarly, PBL refers to
how a company can connect with the consumer’s interests, desires and expectations to create a
organic food
local presence. Consequently, the stronger the brand credibility, the greater the consumer trust products
and the broader the image of the product and service (Mandler et al., 2020).
Brand credibility (PBL & PBG) is not a popular research subject in the context of the
Indian organic food industry. Previous literature on customer ethnocentrism, PBL & PBG
and organic food purchase intentions has concluded that customers are influenced by
ethnocentric factors and the “global” idea of the products they use, but there are very few
studies on PBL & PBG, as well as limited research on customer ethnocentrism in the organic
food industry from an Indian context (Arora et al., 2021; Basha and Lal, 2019; Boobalan and
Nachimuthu, 2020; Rana and Paul, 2017; Tandon et al., 2020). Therefore, it is essential to
understand the extent of the influence of PBL & PBG on attitudes towards organic food, how
customers perceive the organic food industry–especially the organic food PBL & PBG
associated with the same–and ultimately how all these factors affect their organic food
purchase intention behaviour (Kushwah et al., 2019; Secapramana and Ang, 2019; Watanabe
et al., 2021). In addition, it is important to analyse customer ethnocentrism and customer value
variables in the context of organic food purchase intentions. Customer ethnocentrism helps
firms understand how customers feel about the “Indian” portion of Indian organic food
brands and whether that allows better brand associations to be created by customers. In light
of the above, the primary research objectives of this study are:
(1) To establish how PBL & PBG affects people’s intentions to buy organic food.
(2) To ascertain if customer value influence associations between PBL & PBG and the
intention to purchase organic food.
(3) To determine whether PBL & PBG and organic food purchase intention associations
are moderated by customer ethnocentrism.
Data from 433 participants in the Indian National Capital Region (NCR) were collected and
analysed to accomplish these objectives. The paper discusses PBL & PBG’s influence on
consumers’ purchase intentions for organic food, with the mediating effect of customer value
and the moderating role of customer ethnocentrism. This study’s findings will help to increase
the awareness of the benefits of organic food and complement customers’ current perceptions.

1.1 The organic food industry in India

According to a joint survey conducted in 2019 by Ernst & Young (E&Y) and the Associated
Chambers of Commerce and Industry of India (ASSOCHAM), “the market size for Indian
organic packaged food is expected to cross ₹ 87.1 crores by 2021 from ₹ 53.3 crores in 2016,
growing at a rate of 17%.” This is due to the increasing awareness among customers, higher
levels of disposable income and supportive government policies for organic food. Within the
Indian health and wellness industry, the naturally healthy foods segment had the highest
retail market value during the time span studied.
In 2018–19, India exported Rs. 5,151 crores organic products, a 49% increase over the
previous year. Therefore, there is strong potential for the Indian organic food industry to
move from a niche market to a commercial one. In India, the National Program for Organic
Production (NPOP) is regulated under the Export Market Development Grants Act 1974. This
provides the certification of organic food (Boobalan and Nachimuthu, 2020). Table 1 displays
an overview of the Indian brand share of organic packaged food from 2014 to 2019. Where 24
Letter Mantra showing continuously increasing brand share percentage with highest Indian
BFJ brand shares (%) of organic packaged foods (global). Table 2 shows the retail market share of
organic food in India from 2014 to 2023. Here, the retail market value is expected grow
approximately double in the year 2023 as compared to the year 2019.

2. Literature review
This section briefs out the relevant literature on PBL & PBG and customer purchase
intentions in developed countries. Further it demonstrates relevant element related to
signalling theory, tri-component model of attitude, cultural ethnocentrism etc. At the end of
the section mentions hypothesis development and theoretical framework.
Preceding research recommends utilisation of different theories in organic food research,
mainly theory of reasoned action (TRA, Birch et al., 2018), theory of planned behaviour (TPB,
Sultan et al., 2020), self-construal theory (Kareklas et al., 2014), social identification and
identity theories and value-attitude system model (Khare and Pandey, 2017), stimulus–
organism–response model (Lee and Yun, 2015). More recently, authors explained factor
including social structure alike socio-demographic status and class influence customer
preference for organic food products (Liu et al., 2021). Empirically, this assumption has been
supported by studies showing that, and being linked with customer values and opinion about
organic food (Sultan and Wong, 2019). Janssen and Hamm (2012) emphasised about
consumers’ confidence in manufacturer and retailers’ social performance which have large
effects on their purchasing behaviour/intention. Further, the role of social norms (Sultan and
Wong, 2019), consciousness (Sultan et al., 2020) and environmental concerns (Sultan and
Wong, 2019) studied as antecedents on purchase intention/behavior of organic food.
The role of PBL & PBG in purchase intention of organic food products has received very
less attention in previous research. However, PBL & PBG serves as a logical reinforcement
for customers when making their purchase decisions of organic food (Erdem and Swait,
2004). Indeed, PBG & PBL could have implications for purchase intentions. Past research
explained that PBL & PBG not only enhances consumers’ purchase intention and attracts
potential customers (Sultan et al., 2020) but it also enhances consumers’ satisfaction,
recognition and loyalty (Bigne-Alca~ niz et al., 2009). Denver and Jensen (2014) point out that
PBL can establish mutual trust between suppliers and buyers and attract customers to

Brand name 2014 2015 2016 2017 2018 2019

24 letter mantra 35.5 35.7 36.6 37.1 37.7 38.4

Organic tattva 23 22.9 23.4 23.6 23.8 24
Table 1.
Indian brand shares Sanjeevani 17.1 17.1 17.7 18 18.3 18.7
(%) of organic Organica 4.5 4.6 4.7 4.7 4.8 4.9
packaged food (global) Others 19.9 19.7 17.7 16.5 15.3 14
from 2014 to 2019 Source(s): Passport Euromonitor (2020)

Year Market value (million U.S. dollars)

2014 32.8
Table 2. 2018 66.2
Retail market value of 2019* 78
organic food in India 2023* 135.6
2014–2023 Source(s): Agriculture and Agri-Food Canada; Euromonitor; Survey period: 2014 and 2018; Region: India
purchase locally produced organic food. Past researches shown that there is some overlap Brand
between the group of consumers who choose locally produced food and the group who prefer credibility of
organically produced food products (Hempel and Hamm, 2016). While other study confirms
that the consumers who prefer locally produced foods do not tend to prefer organic foods
organic food
(Denver and Jensen, 2014; Ditlevsen et al., 2020). These findings advocate that there are at products
least two types of consumers of locally produced food: those who prefer organic food and
those who do not. In contrast, other authors confirm that similar food preferences lead
consumers to purchase organic food and locally produced organic food (Ditlevsen et al., 2020).
Liu et al. (2021) postulates organic food consumers were not indifferent to local production
but they found it is safer and healthier to eat than conventionally produced foods, and
because they take it to be pure, i.e. free from drug residues, pesticides and artificial additives.
Adding to that the locally produced organic food have special flavour originating from
regional area where the food was produced. Further the qualities comprise taste, diversity of
taste and purity, environment-friendly production, personal connection (i.e. specific person
engaged in the production or distribution of the product). To this extent, consumers make
their purchasing decisions by consideration on ’authenticity, material qualities and ethical
acceptability (environment and climate concern). They link local production with
environment-friendly food production (Janssen and Hamm, 2012). This may be explained
by the fact that the organic food consumers tend to emphasise environmental issues because
it signals environmentally friendly food production.
With the deepening of academic research on organic food, PBL & PBG is a significant
signal to aid customer purchase intention; as it encourages customers to trust product related
information for their purchase purpose (Kumar and Polonsky, 2019; Arora et al., 2021).
Further, PBL & PBG found to be noteworthy when marketing goods with social image, such
as organic food (Watanabe et al., 2021). As per the signalling theory (Boulding and Kirmani,
1993), PBL & PBG act as a critical external cue, it guides consumers when evaluating a
product, which in turn can affect purchase intention. Past research elucidated that PBL &
PBG has direct effect on perceived quality than the physical characteristics; which can help
consumers to make choices for the organic food products. Further a customer values plays an
important role in a consumer’s brand choice. Bian and Forsythe (2012) asserts that consumers
tend to favour brand that directly relates to values which are important and have better
credibility.

2.1 Brand credibility (PBG & PBL)

Mandler et al. (2020, p. 3) defined PBL & PBG as “the ability of a brand to keep its promises
and inspire trust and confidence in its customers.” When combined with the Hovland et al.
(1953, p. 21) framework, the customer perception of the brand’s ability and willingness to
deliver on its promises leads to PBL & PBG. Here, Hovland’s framework grounded on source
credibility model. The model is grounded in the idea that two main factors, expertise and
trustworthiness impact source credibility. More recently the model was expanded to include
the concept of attractiveness (Ohanian, 1990; Spry et al., 2011). Attractiveness has been added
to the original two factors due to the importance it plays and widely assumed that being
attractive helps persuasively convey a message (Mandler et al., 2020; Vuong and Khanh Giao,
2020). Both models (source credibility model and source attractiveness model) are rooted in
social psychology research and were originally applied to the study of communication. The
findings of Erdem and Swait (2004) indicate that credibility leads to the belief that the brand is
sincere and trustworthy from a customer’s perspective. Customer trust in a brand’s
effectiveness and expertise, which leads to a positive brand image, has been strongly linked
€
to PBL & PBG (Mandler et al., 2020; Ozsomer, 2012; Vuong and Khanh Giao, 2020). Over the
past decade, globalisation has become a significant game-changer for the market. Previous
BFJ studies on the developed and developing market have highlighted various aspects of how
PBG & PBL affects customers’ purchase intentions (Mandler et al., 2020). The perception
regarding a brand’s globalness and localness aspect is based on its personal experiences and
knowledge. These affect firms’ marketing practices and how customers receive and distribute
their information (Sichtmann et al., 2019; Vuong and Khanh Giao, 2020). PBL & PBG plays a
vital role in directing marketing practices and establishing customer-centric brand equity. It
determines purchase intention and predicts future profits (Mandler et al., 2020; Wang and
Yang, 2010).

2.2 Signalling theory and brand credibility

In this study, signalling theory describes the association between PBG & PBL and brand
€
credibility as per the research conducted by Mandler et al. (2020) and Ozsomer (2012). This
theory describes the behaviour between the individual and the organisation, both of whom
access different information. Essentially, communication is determined by the sender, and the
interpretation of that information is determined by the receiver (Connelly et al., 2011). As per
signalling theory, PBG and PBL are favourable pieces of information or signals that
contribute to better PBL & PBG among customers. Considering the recent rise of
protectionism globally, organisations must decide on a positioning strategy that understands
the PBG and PBL among customers and whether this affects PBL & PBG, ultimately leading
to customers’ willingness to purchase (Bimbo et al., 2021; Sichtmann et al., 2019). Researchers
(Mandler et al., 2020; Wang and Yang, 2010) have found that PBG and PBL are the two
signalling functions sent by firms to customers regarding PBL & PBG. The overall
effectiveness varies in terms of the environment (developed vs developing market) and other
associated conditions, but a clear relationship has been established. This further indicates
customer perception of the global and local aspects of brands, which affects their trust level
towards the brand and the organisation (Sichtmann et al., 2019; Winterstein and
Habisch, 2021).

2.3 Tri-component model of attitude

In this study, the effect of PBL & PBG on organic food purchase intentions was measured
using the tri-component model of attitude. This has three distinct components: cognitive,
affective and conative (Chan and Yam, 1995). The cognitive portion of attitude deals with
knowledge and perceptions, which eventually leads to beliefs that a customer has about a
brand, service or product. The affective part describes the feelings that the customer may
have towards a brand, product or service. These are subjective feelings such as hate, trust or
dislike (Schiffman et al., 2010). This component is responsible for the customer evaluation or
assessment, i.e. whether something is good or bad. The conative portion describes a
customer’s intention to take action (i.e. buying or purchase intention). It represents the
likelihood of a customer buying a particular product or service after evaluating it (Schiffman
et al., 2010). Previous research has suggested that even if consumer cognition is modified, the
€
affective component (i.e. feelings) remain unchanged (Ozsomer, 2012). This implies that
emotional appeal is a successful method to increase purchase intention among customers.
Table 3 shows a summary of the Tri-component model of attitude.

2.4 Cultural ethnocentrism: do origins matter?

Shimp and Sharma (1987, p. 284) defined “customer ethnocentrism as the belief that one’s
group or country is superior to other groups, countries or culture and reject the groups
outside of their circle.” Kumar et al. (2011) studied the pattern of ethnocentrism and stated
that customer ethnocentrism and protectionism tend to be exceptionally high during periods
Attitude
Brand
component Construct Definition Source credibility of
organic food
Cognitive Perceived brand “Consumers’ beliefs that a brand is marketed in Steenkamp et al.
globalness multiple countries and is generally recognised as (2003) products
global in these countries”
Cognitive Perceived brand “Customer’s perceptions that a brand symbolises €
Ozsomer (2012)
localness the values, needs, and aspirations of the members
of the local country”
Cognitive Consumer “The beliefs held by consumers about the Shimp and
ethnocentrism appropriateness, indeed morality, of purchasing Sharma (1987)
foreign-made products”
Cognitive Brand credibility “The believability of the product information Erdem and
contained in a brand” Swait (2004)
Affective Customer value “Value is the consumer’s overall assessment of the Zeithaml (1988)
utility of a product based on perceptions of what is
received and what is given”
Conative Purchase “Desire to buy, which is a step of the process of Wang and Yang Table 3.
intentions moving towards the actions of purchases made by (2010) Tri-component model
a consumer” of attitude

of economic disruptions. Customers’ knowledge and beliefs based on personal experiences

also lead to customer brand perception and thus on to competitive advantage (Steenkamp,
2019). The origin of products influences customer brand perception due to customers’
ethnocentric tendencies. Similarly, Teng (2019) studied the impact of ethnocentrism on
organic food purchases, a necessary factor to analyse as organic food is locally produced.
However, customer ethnocentrism reduced the positive impact of PBG on perceived brand
quality and purchase intention (Vuong and Khanh Giao, 2020). Ethnocentrism in Indian
customers is affected by variables such as education level, income level, cultural openness
and the collectivistic essence of Indian culture (Kumar et al., 2011).

2.5 Hypothesis development and theoretical framework

2.5.1 The proposed conceptual model. A conceptual model is suggested based on previous
research and hypothesised relationships. Figure 1 illustrates this model. Figure 1 show that
customer ethnocentrism served as a moderator variable, influencing the relationship between
PBL & PBG and purchase intention. Customer value served as the mediating variable in the
conceptual model. The next section will test the research hypothesis.
2.5.2 Brand credibility and purchase intention. The purchase of organic food depends on
many factors such as health and environment concerns as well as social reasons. Research by

Customer
Perceived brand value
Globalness

Brand
Purchase
Credibility
Intention
Perceived
brand localness
Figure 1.
Customer Theoretical framework
ethnocentrism of the study
BFJ Tandon et al. (2020) has shown that customers prefer organic food for social circumstances
and personal norms. It was also noted that there is a perceived hedonism component
regarding purchasing intention. Despite this, organic food brands mainly use
environmentally-friendly and health-friendly traits as their primary value proposition
(Molinillo et al., 2020; Wang and Yang, 2010).
The functional and psychological benefits associated with PBG have been linked with
favourable brand valuations and customer purchase intention (Asif et al., 2018; Steenkamp
et al., 2003). This is because positive brand evaluations, consideration and choice lead to high
PBL & PBG (Erdem et al., 2006; Erdem and Swait, 2004). Numerous considerations, such as
nutritional advantages, subjective expectations, prestige, perceived efficiency and
environmental issues influence the intention to purchase organic foods (Boobalan and
Nachimuthu, 2020; Rana and Paul, 2017; Secapramana and Ang, 2019). According to Molinillo
et al. (2020), perceived attitude, government support and policy, perceived belief, awareness
and availability lead to positive consumer perception towards organic food. Correspondingly,
in the Indian scenario, authors have empirically found that health and environment concerns,
product quality, supporting local farmers, accessibility and price are strong determinants of
customer purchase intention (Arora et al., 2021; Basha and Lal, 2019). Tandon et al. (2020)
reported that trust is the primary factor holding customers back from purchasing organic
food products. Furthermore, the impact of trustworthiness on organic food purchase
behaviour is correlated with consumer attitude.
H1. PBL & PBG is associated with organic food purchase intention
2.5.3 Mediating effects of customer value. 2.5.3.1 Brand credibility (PBG & PBL) and customer
value. The literature on PBL & PBG suggests that it is influenced by many components, of
which PBL & PBG are analysed in this study. As per signalling theory, PBG and PBL have
been positively linked to PBL & PBG (Mandler et al., 2020). Findings suggest that both have
an essential role to play in developed and developing countries (Erdem et al., 2006; Mandler
et al., 2020). In a globalising market, both PBG & PBL are equally functional, but domestic
brands benefit from the localness perception. Trustworthiness and expertise are the two
components that define PBL & PBG, with the former being more important for customers
than the latter (Erdem and Swait, 2004). When PBL & PBG is involved, customers’ decision-
making is influenced by additional components such as perceived quality and risk
perceptions. This is how customer value is created in a transaction between a supplier and
buyer, representing the perceived quality of products or services (Erdem et al., 2006; Erdem
and Swait, 2004).
Understanding customer value helps to create customer-oriented market strategies that
positively perceive organic food products. Consequently, there is a positive influence on PBL
& PBG, which contributes to increased purchase intention (Liu and Zheng, 2019; Rana and
Paul, 2017). A study by Tandon et al. (2020) found that customer value and attitude
significantly influence the purchase of organic food items. The authors used the behavioural
reasoning theory (BRT) framework to analyse 307 Indian customers, revealing that customer
value and attitude significantly affect the purchase intention towards organic food.
2.5.3.2 Customer value and purchase intention. Wang et al. (2004) stated that the trade-off
between the perceived quality and benefits of the selected product concerning the customer’s
perceived sacrifice in payment represents the customer value. Customers have indicated that
although the price is costly for organic food when compared to alternatives, they are willing
to pay more if the products are available and accessible in local shops near to them (Basha and
Lal, 2019; Bimbo et al., 2021). This shows that firm purchase intention has a directly
proportional relationship with high customer value, which depends on the quality of organic
products and their accessibility. Perceived value for customers has been influenced by many
variables over time, including PBL & PBG. Factors such as PBG affect perceived brand
quality, which strongly influences customers’ purchase intentions (Steenkamp et al., 2003) Brand
and emphasises local/global aspects, reduces risk perceptions, increases quality perceptions credibility of
€
and increases customer value (Bimbo et al., 2021; Ozsomer, 2012).
organic food
H2. Customer value significantly mediates the association between PBL & PBG and products
organic food purchase intention
H2a. PBL & PBG is associated with customer value
H2b. Customer value is linked to purchase intention
2.5.4 Moderating effects of customer ethnocentrism. Past research has argued that customers
prefer to buy locally made products instead of foreign products because this shows patriotism
and promotes the idea that foreign products harm one’s economic activities (Kumar et al., 2011).
Ethnocentrism has led to customers neglecting foreign products’ positive attributes and giving
greater attention to the positive attributes offered by local products, resulting in the belief that
the purchase of foreign products is wrong and not desirable (Vuong and Khanh Giao, 2020).
Customer ethnocentrism moderates the interaction between PBG and perceived brand prestige
and perceived brand quality (Sichtmann et al., 2019). Furthermore, it moderates the effect of PBG
on consumers’ purchase intention. Steenkamp (2019) found that high consumer ethnocentrism
might lead to a disregard for high prices as well as the selection of local brands for the purpose of
showing customers’ support towards their country’s products and culture.
Understanding customer ethnocentric tendencies helps marketers make better decisions.
In the Indian context, there is a strong influence of demographic and socioeconomic factors on
ethnocentric tendencies, which strongly affects purchase intention towards foreign and local
products (Kushwah et al., 2019; Watanabe et al., 2021). As per the Hofstede model, India ranks
as a collectivist country (Birch et al., 2018; Sadiq et al., 2020). Such countries have collectivist
tendencies which lead to high ethnocentrism among consumers. Age and gender do not
substantially impact ethnocentric tendencies, but education and income do (Kumar et al.,
2011). This study stresses how the ethnocentric tendencies of Indian customers affect their
intention to buy organic food products. Furthermore, it aims to understand how this can
affect an organisation’s branding strategy and whether it affects that brand’s credibility.
H3. The association between PBL & PBG and the intention to purchase organic food is
moderated by customer ethnocentricity

3. Research methods
3.1 Participants and procedure
For this study, cross-sectional data were obtained from India’s NCR, concentrated on
shopping malls with organic food stores. Across twelve malls, six “exclusive brand outlets”
(EBOs) and nine “multi-brand outlets” (MBOs) were identified. These outlets were
approached for consent, and four EBOs and six MBOs agreed to participate in the study.
Participants were identified among shoppers in the organic food store lanes. They were
appraised regarding the study’s objective. Shoppers were approached during the day
(afternoon and evening) and both during weekdays and on weekends to ensure a good
representative sample of foot traffic. Invitations were sent out to a stratified random sample
of 1,050 shoppers via e-mails. To maximise the response rate, an additional notification was
sent to those shoppers who had not replied to the survey three weeks after the first mail. A
total of 433 people responded to the survey, reflecting a 41.23% response rate for the 1,050
invites sent out. In addition, 83 participants did not meet the survey, and their responses were
excluded from further statistical analyses.
The survey addressed demographic and institutional variables. The demographics items
requesting the participants’ personal information included education, gender, age, number of
BFJ people residing in a household and household income. The research assessed people’s weekly
intake of organic foods (fruits and vegetables) that they had recently purchased to establish
their organic food consumption pattern; rated with a five-point Likert scale: 1 5 “only
conventional”, 2 5 “mainly conventional”, 3 5 “roughly equal share of conventional and
organic fruits and vegetables”, 4 5 “mainly organic”, 5 5 “only organic.” An alternate answer
choice was: “I did not buy any organic food or vegetables recently.”
Regarding their diet, they were questioned over whether they consumed more or less
organic food than they did in the past (five-point Likert scale: 1 5 “less than before”,
2 5 “slightly less than before”, 3 5 “unchanged”, 4 5 “somewhat more than before”,
5 5 “much more than before”).

3.2 Study variables

The items used to test the constructs were based on a five-point Likert scale ranging from
1-“strongly disagree” to 5-“strongly agree” and were adapted from past research. Structural
equation modelling (SEM) was used for data analysis. Analysis of Moment Structures
(AMOS)-22 was used to assess the model in two stages: first, the measurement model’s
reliability and validity, followed by an assessment of the structural model (see, Figure 2).
3.2.1 Perceived brand globalness. A three-item scale developed by Steenkamp et al. (2003)
was used to measure the perceived brand globalness. The sample item includes “To me, this is
a local/global brand.” Cronbach’s α was 0.88 (Steenkamp et al., 2003).
3.2.2 Perceived brand localness. A three-item scale developed by Torelli and Ahluwalia
(2012) was used to measure the perceived brand localness. The sample item includes “This brand
is strongly associated with Indian culture.” Cronbach’s α was 0.79 (Torelli and Ahluwalia, 2012).
3.2.3 Brand credibility. To measure perceived brand localness, a three-item scale
developed by Erdem et al. (2002) was used. The sample item includes “This brand delivers
what it promises.” Cronbach’s α was 0.81 (Erdem et al., 2002).
3.2.4 Consumer ethnocentrism. To test consumer ethnocentrism, a four-item scale
developed by Steenkamp et al. (2003) was used. The sample item includes “Indian should not
buy foreign products because this hurts Indian business and causes unemployment.”
Cronbach’s α was 0.85 (Steenkamp et al., 2003).

e4 e5 e6

CV1 CV2 CV3

0.75 0.82
0.74

CV e12

P11 e7
0.25 0.26
0.79
e3 BC1 0.72 P12 e8
0.76
0.78 0.21 0.76
e2 BC2 BC Pl P13 e9
0.71 0.75

e1 BC3 0.75
P14 e10

Figure 2. P15 e11

Structural model e13
 3.2.5 Purchase intentions. A five-item scale developed by Wang and Yang (2010) was used Brand
to measure purchase intention. The scale depicts customer purchase intention towards credibility of
organic food products. The sample item includes, “The next time I shop for vegetables, I am
very likely to choose organic vegetables.” Cronbach’s α was 0.84 (Wang and Yang, 2010).
organic food
3.2.6 Customer value. The customer value was measured using a three-item scale products
developed by Wang et al. (2004). The scale depicts the customer perception of whether Indian
organic food is value for money and a good option compared to the alternatives. The sample
item includes “Compared with major competitors, the transaction with the provider is a good
choice.” Cronbach’s α was 0.92 (Wang et al., 2004).

3.3 Participant profile

The participants’ demographic profile showed that almost two-thirds of the sample was male
(63.1%), and 53.6% of the participants had already purchased organic food.
Regarding household income, 13.6% of participants reported earning less than Rs. 5 lakh
per year, whereas an average income of Rs. 5 lakh to Rs. 10 lakh was earned by 29.8% of the
population; 43.5% had Rs. 10.1 lakh to Rs. 15 lakh, and only 13.1% had a yearly household
income of more than Rs. 15 lakh.
Concerning education background, most participants (48.2%) held a bachelor’s degree,
31.6% held a master’s degree, 13.3% had completed secondary school (i.e. 12 years of
schooling) and 6.9% had a doctoral degree. According to Kushwah et al. (2019), highly educated
people are incredibly involved in organic food consumption; therefore, a study such as this will
gather more reliable responses and include a thorough overview of this pattern. Regarding
participants’ household size, most (62.6%) had 5 or more people and 37.4% had fewer than
5 members in their family. Nearly half (47.8%) of the participants were employed in the private
sector, 29.4% in the government sector and 22.8% were engaged in other occupations.
3.3.1 Consumption pattern of organic food products. A total of 433 participants replied to
the query regarding the amount of organic food (fruit and vegetables) they had recently
brought. The response distribution indicated that 8.6% of the respondents brought only
conventional food, 24.8% were mainly traditional, 36.7% had brought a roughly similar
quantity of organic and conventional, 23.4% indicated mostly organic and 6.5% brought only
organic. The average score was 2.89 (SD 5 1.02) on a five-point scale, which is fairly similar to
the three-point scale value of “approximately the same amount of organic and conventional”
products. For males (M 5 2.86, SD 5 1.02) and females (M 5 2.91, SD 5 1.01), their tastes for
sustainable food items did not vary greatly (t-test; p 5 0.26).
There was no substantial link between the number of people living at home and the
percentage of organic food eaten (r 5 0.02, p 5 0.79). There was, however, a significant positive
correlation between the participants’ schooling and income levels and the proportion of organic
food products they consumed (for education r 5 0.23, p 5 0.001 and education level
r 5 0.26, p 5 0.001).
Participants were also questioned on whether they ate more or less healthy food at the
time of the study. Just 6.3% of the participants said they consumed less now than before,
whereas 5.6% claimed that they consumed organic food slightly less than before; 39.8% said
that their consumption has remained unchanged, 21.7% reported somewhat eating more than
before, and some (26.6%) consumed much more organically produced foods.

3.4 Data analysis

Statistical software Statistical Package for the Social Sciences - SPSS 22 and AMOS 22 was
used to examine the data. The research aimed to establish whether there was a correlation
between brand credibility (PBL and PBG), customer value and the intention to buy organic
food. The research paradigm was developed with the aid of previous literature, and its
relevance was validated for the present viewpoint using confirmatory factor analysis (CFA).
BFJ The measurement model was used to examine various forms of construct validity and
reliability. SEM was used to determine if there were significant relationships between the
research variables, including the proposed moderating and mediating effects of customer
ethnocentrism and customer value, respectively.
3.4.1 Common method bias. The data were obtained from several outlets to minimise the
probability of common method variances (Podsakoff et al., 2012). To avoid common method
bias (Podsakoff et al., 2003), which would have arisen if the same respondents assessed PBL &
PBG, customer value and organic food purchase intentions, a common latent factor in the
CFA model and Harman’s one-factor test as proposed by Harman were used to examine the
common method bias in this study (Lin and Bhattacherjee, 2008; Podsakoff et al., 2003).
Harman’s single-factor analysis examines whether there is any bias in empirical data
collected using a single instrument (Harman, 1976; Podsakoff et al., 2003; Schwarz et al., 2017).
In contrast, a common latent factor in AMOS’s CFA model captures the common variance
among all observed variables in the model. The variance explained by Harman’s one factor
accounted for 36.87% of the total variance (Babin et al., 2016; Podsakoff et al., 2012). In the
CFA model, a common latent factor explained 0.12 of the variances. These findings reveal no
major issue with common-method variance (Lin and Bhattacherjee, 2008).

4. Results
4.1 Measurement model
A CFA was used to ensure the measurement model’s reliability and validity (Kline, 2015).
The CFA model provided a good model fit (χ 2 5 187.69, χ 2/df 5 1.079, p 5 0.226; “goodness
of fit Index” [GFI] 5 0.95; “adjusted goodness of fit index” [AGFI] 5 0.94, “incremental fit
index” IFI 5 0.99; “comparative fit index” [CFI] 5 0.99; “root-mean-square error of
approximation” [RMSEA] 5 0.014 (Hair et al., 2010). Factor loadings were over 0.70 for the
study items in the survey (see Table 4). All the variables loaded considerably on their
corresponding factors. The GFI, AGFI and CFI values were greater than 0.90, indicating a
good model fit, and the RMSEA values were less than 0.70, also indicating a good model fit
(Kline, 2015). For different study constructs, the average variance extracted (AVE) and
composite reliability (CR) values were higher than 0.50 and 0.70, respectively (see Table 5).
This demonstrates that the constructs under study fulfil the necessary threshold values
and provide sufficient evidence to determine convergent validity. The research variables
have adequate discriminant validity as the correlation between any two pairs of study
constructs is smaller than the AVE’s square root for each of the constructs (Fornell and
Larcker, 1981; see Table 5).

Study
Study measures (References) Measurement items CFA SEM

Brand credibility (BC) BC1 0.71 0.71

BC2 0.78 0.78
BC3 0.70 0.70
Customer value (CV) CV1 0.74 0.74
CV2 0.81 0.81
Table 4. CV3 0.74 0.74
Study measures, Purchase intentions (PIs) PI1 0.78 0.78
measurement items PI2 0.75 0.75
and factor loadings for PI3 0.76 0.76
measurement and PI4 0.74 0.74
structural models PI5 0.74 0.74
4.2 Structural model Brand
The hypotheses were tested using the structural model, which revealed a good model fit credibility of
(χ 2 5 38.014, χ 2/df 5 0.927, p 5 0.604; GFI 5 0.98; AGFI 5 0.97, IFI 5 0.99; and CFI 5 0.99;
RMSEA 5 0.001). PBL & PBG, customer value and organic food purchase intentions are
organic food
correlated in the structural model. The IFI, TLI, CFI and AGFI values were all greater than products
0.95, as proposed by Bagozzi and Yi (1988). The value of RMSEA was lower than the 0.07
suggested by Hair et al. (2010). The results support H1 (β 5 0.22, p < 0.001); that is, PBL &
PBG is associated with organic food purchase intentions. Hypotheses H2 (H2a and H2b)
checked the mediation hypothesis (see Table 6, Figure 2). The results support H2a (β 5 0.24,
p < 0.001); that is, PBL & PBG is associated with customer value, as well as H2b (β 5 0.27,
p < 0.001); that is, customer value is associated with purchase intentions. According to the
findings, customer value partly mediates the association between PBL & PBG and purchase
intentions (see Table 7). This suggests that customer value may exert an influence on organic
food purchase intentions and indicates the intricacy of the inter-relationships between PBL &
PBG and organic food purchase intentions. Figure 2 depicts the structural model; Table 6
illustrates the hypotheses testing results and Table 7 shows the mediation analysis.

4.3 Moderation analysis

Model 1 was used to perform the moderation analysis on the SPSS process macro. The
study investigated the moderating impact of customer ethnocentrism on the link between
PBL & PBG and organic food purchase intentions. As evidenced by Table 8, the relationship
between PBL & PBG and organic food purchasing intentions is negatively moderated by
consumer ethnocentrism (see Table 4, Figure 3). Furthermore, customer ethnocentrism

Variables Mean SD CR AVE MSV ASV BC CV PI

BC 3.87 1.18 0.75 0.52 0.32 0.26 0.71

Table 5.
CV 4.04 1.08 0.79 0.56 0.43 0.21 0.25 0.74 Mean, standard
PI 3.89 1.08 0.85 0.54 0.48 0.30 0.23 0.20 0.79 deviations, validity and
Note(s): SD 5 Standard deviation, AVE 5 Average variance explained, MSV 5 Maximum shared variance, reliability of the study
ASV 5 Average shared variance, BC5 Brand credibility, CV 5 Customer value, PI 5 Purchase intentions variables

Study Supported?
Hypothesis Path β Significance Yes/No

H1 BC → PI 0.29 <0.001 Yes

H2 H2a BC → CV 0.25 <0.001 Yes Table 6.
H2b CV → PI 0.26 <0.001 Yes Hypotheses testing
Note(s): BC 5 Brand credibility, PI 5 Purchase intentions, CV 5 Customer value results

Brand credibility → Customer value → Purchase intentions

β SE T p

BC → CV 0.24 0.060 4.17 0.00 Table 7.

CV → PI 0.27 0.062 4.41 0.00 Mediation analysis
Total effect of BC → PI 0.22 0.062 3.57 0.00 results
BFJ dampens the positive association between PBL & PBG and purchase intentions. In summary,
the result confirms the critical influence that customer ethnocentrism can have in creating
favourable predispositions among customers while purchasing organic food items.

5. Discussion
Organic food products are quickly gaining momentum and this study is one of the first to
examine the role that PBG & PBL plays in influencing purchase intention of organic food.
Referring our first objective: Does PBL & PBG affect people’s intentions to buy organic food?
According to the results obtained in this study, PBL & PBG is positively associated with
intention to purchase organic food (H1: β 5 0.22, p < 0.001), which is consistent with previous
research results (e.g. Bimbo et al., 2021; Liu et al., 2021). This supports the first hypothesis.
Organic food is a credence good, therefore, consumers have to rely on PBL & PBG (PBG &
PBL), credibility of the manufacturer and certification agencies as proxies for their purchase
decision (Sultan and Wong, 2019). The study participants appeared to have strong opinion
about the localness of the food products. They displayed strong opinion and values on
organic food production. This suggests that customer value as the driver of tendency to
purchase organic food. The next set of objectives examined the mediating role of customer
value. The study found that customer value significantly mediates (H2a: β 5 0.24, p < 0.001;
H2b: β 5 0.27, p < 0.001) the effects of PBL & PBG on intention to purchase organic food
which is in line with the results of prior literature (e.g. Hempel and Hamm, 2016). Previous
studies show that customers’ purchase intention is driven by his/her values relating to health,

β T p LLCI ULCI Moderation

B → PI 0.153 3.201 0.001 0.059 0.246 Yes

Table 8. CE → PI 0.200 4.236 0.000 0.107 0.292 Yes
Moderation results for Interaction (BC*CE) 0.081 2.114 0.035 0.156 0.006 Yes
customer Note(s): BC 5 Brand credibility, PI 5 Purchase intentions, Interaction 5 BC*CE, LLCI 5 Lower limit of
ethnocentrism confidence interval, ULCI5Upper limit of confidence interval, β 5 standardised regression weight, t 5 t value

4.5

4 Moderator
Purchase Intentions

3.5 y = 0.108x + 3.038 Low Customer

Ethnocentrism
3 High Customer
Ethnocentrism
2.5
Figure 3. y = 0.504x + 2.044
The moderating
2
influence of customer
ethnocentrism on the
association between 1.5
brand credibility and
organic food purchase 1
intentions
Low Brand Credibility High Brand Credibility
animal welfare and environmental protection (Arora et al., 2021; Sultan et al., 2020). Given that Brand
these consumers deep rooted values will influence customers intention to purchase organic credibility of
food. Therefore, Consumers with high food safety concerns are more likely to purchase
organic food. Thus, our findings are in agreement with previous studies in the Indian context
organic food
(Basha and Lal, 2019; Tandon et al., 2020). However, customer ethnocentrism was also shown products
to have a negative moderation effect. This could be because customer ethnocentrism
significantly (p < 0.001) affects purchase intention towards foreign and local products (Bimbo
et al., 2021; Steenkamp et al., 2003; Vuong and Khanh Giao, 2020). The results of the study
supported all the proposed hypotheses, i.e. H1, H2 (H2a and H2b) and H3.
This empirical study investigates the influence of PBL & PBG on the intention to purchase
organic food by incorporating both the tri-component model of attitude and signalling theory.
In addition, this research studies the moderating role of customer ethnocentricity as well as
the mediating role of customer value. This framework has previously received little
consideration in academic studies. Concerning the tri-component model of attitude, this study
identifies and analyses the effects of PBL & PBG and associated variables under three
components: affect, cognition and conation (Chan and Yam, 1995). The model helps to
understand how PBL & PBG shapes consumers’ attitude towards organic food and its
purchase in India’s diverse, developing market.
Participants’ sentiments towards organic food compared to conventional food indicate
that organic food is perceived as healthier, more environmentally friendly, of better
nutritional quality, pesticide-free, and possessing sensory properties, i.e. a natural taste.
Furthermore, motivation for the higher purchase intentions of organic food includes
supporting the local economy (assisting local farmers and ensuring that money stays in the
community), social causes (the preservation of local culture and history; awareness of the
origins of the food), ethical stance, trust propensity and curiosity (Arora et al., 2021; Bimbo
et al., 2021; Bryła, 2016; Connelly et al., 2011). The findings suggest that demographic
characteristics also matter, such as education (e.g. knowledge of organic food levels).
The current research adds to the existing literature on organic food purchasing intentions
by exploring the PBL & PBG and customer value of the organic food consumption
community. The findings on the effect of PBL & PBG on purchase intent (H1) are consistent
with previous studies (Bimbo et al., 2021; Kushwah et al., 2019; Sichtmann et al., 2019). By
exploring the mediating effect of customer value on organic food purchasing intentions (H2:
H2a and H2b), this research further contributes to the current literature. According to the
findings, customer value partially mediates the relationship between PBL & PBG and organic
food buying intentions, consistent with previous studies’ findings on the mediating effect of
€
customer value (Ozsomer, 2012). Furthermore, it lends support to the prior findings of
signalling theory and the tri-component model of attitude.
Another interesting finding relates to the impact of customer ethnocentrism, which aligns
with previous research (Kumar et al., 2011; Vuong and Khanh Giao, 2020) and highlights the
contextual impact of this variable on Indian consumers“ purchasing intentions. The findings
indicate that customer ethnocentrism negatively moderates the hypothesised relationships (H3).
Thus, it can be argued that customer ethnocentrism significantly affects purchase intention
towards foreign and local products (Bimbo et al., 2021; Teng, 2019; Winterstein and Habisch,
2021). In addition to the strong association between customer value and customer ethnocentrism,
these findings also reveal Indian consumers’ scepticism regarding PBL & PBG, authenticity and
the certification of organic food items available in the market (Basha and Lal, 2019).

5.1 Study implications

In the field of organic food, consumers purchase intention has received considerable attention
in marketing practices and research. But when PBL & PBG is the subject of research,
BFJ previous studies rarely explore customer value and customer ethnocentrism as the mediating
and moderating variable, respectively. The results of this research offer numerous theoretical
and practical implications.
5.1.1 Theoretical implications. From theoretical point of view, current study provides
empirical evidence on Indian customers’ preference of global and local organic food produce,
indicating a relationship between PBL & PBG and purchasing intentions. In addition, this
study advances the growing body of knowledge concerning customer attitude, PBL & PBG
and purchasing intentions.
First, it endorses the central role of PBL & PBG in consumer behaviour as a crucial
precursor of organic food purchase intentions. It answers the call of recent studies that have
suggested scholars’ need to focus on PBL & PBG and purchase intention of organic food
(Mandler et al., 2020; Secapramana and Ang, 2019; Sichtmann et al., 2019). PBL & PBG seems
to trigger positive emotions, which makes customers less price-sensitive and rational in their
purchase decisions. Mandler et al. (2020) and Vuong and Khanh Giao (2020) add to the
literature by presenting previously unexplored links, particularly among Indian consumers.
Consumers will pay more attention to locally produced organic food products (Basha and Lal,
2019), further confirms that consumer will prefer producers/enterprise that fit with organic
attributes (Akrout and Kaswengi, 2019).
Second, a mediation analysis was performed to increase the understanding of the model’s
associations, which indicated that customer value mediates the relationship between PBL &
PBG (partial mediation) and organic food purchase intentions, which extends the tri-
component model of attitude. Here, cognitive portion of attitude specifically deals with
customer perception and belief that a customer has about a brand, service or product. For
example, “organic India” actively demonstrate the ecology of their own organic farms. This
will help the firm to develop deeper connections and relationships between businesses and
customers (Chuang, 2020). This is a significant contribution as, based on the literature review,
no previous research has investigated these associations. Our study provides a unique
research perspective for organic food and introduced the significance of customer value into
the consequent variable of organic food purchase intention. The results emphasise the
importance of PBL & PBG (both global and local) in predicting organic food purchase
intentions. The study found that customer value can affect the organic food purchase
intention. Organic food PBL & PBG as stimulus will inspire customer value which in turn
inspire customer purchase intention (responses). The current study made contribution to the
Tri-component model of attitude research by addressing some gaps in the literature
regarding the role of customer value in the relationship between PBL & PBG and purchase
intention.
Third, a significant contribution is the finding that customer ethnocentrism affects the
purchase intention of foreign and local products. These results may be due to consumers
having proximity to several local organic products monitored under stringent health
controls. However, the influence of customer ethnocentrism negatively moderates the PBL &
PBG and purchase intention relationship, which indicate that customers have critical
influence and can create favourable predispositions among customers while purchasing
organic food items. In addition, India is one of the world’s largest organic foods producers,
with the retail market for organic food forecast to expand to $135.6 m by 2023 (Source:
Agriculture and Agri-Food Canada; Euromonitor; Survey period: 2014 and 2018; Region:
India). Therefore, our findings provide new insights for understanding the relationship
between PBL & PBG and organic food purchase intention with customer ethnocentrism as
the moderating variable. It expands the research of customer purchasing behavior in the field
of organic food and introduces the customer ethnocentrism to enrich the antecedent variable
of PBL & PBG. These findings are consistent with those observed by Kushwah et al. (2019),
Tandon et al. (2020) and Watanabe et al. (2021).
 5.1.2 Managerial implications. Several management implications are suggested by this Brand
study. First, to heighten the purchase incidence of local or global branded organic food, credibility of
businesses can integrate characteristics into their marketing campaign such as the health
benefits compared to the conventional product, better emphasis on environmental safety and
organic food
the social advantages of organic food. For instance, providing information on the health (e.g. products
food quality, nutrition, natural content), socioeconomic and environmental impacts of buying
organic food would be appreciated by the target audience. Consumers also value these
products’ ethical and social value (Molinillo et al., 2020). Furthermore, the information given
on the packaging or other forms of correspondence should be objective and helpful to
customers. As there is an element of hedonistic appeal, brands can also incorporate better
social standing by acquiring organic products.
Second, customer value has a noteworthy link with PBL & PBG and organic food purchase
intentions. This is a significant result for public officials and advertisers working to promote
ethical products (for instance, organic food) under the label of sustainable, organic or green
products. In addition, policymakers should focus on sustainable initiatives which could
advance consumer awareness concerning the organic food product’s value. Marketers should
promote better quality, ethically sourced and healthy products as a necessity rather than a
luxury. Ethical consumption can also include increasing customer awareness regarding
environment welfare and farmer welfare. Thus, brand managers should focus on strengthening
customer values associated with organic food purchase intention. This can be done using social
marketing campaigns that strengthen the association between organic food products and
relevant customer values (i.e. belief in nature, respect for other creatures, care for future
generations) when developing the product and brand appeals (Onel, 2017; Sadiq et al., 2020).
Third, ASSOCHAM survey confirmed that Indian consumers has begun to accept the
organic food. Authors believe that current research motivate producers and marketer to
educate the consumers or prospects about the positive effects of organic food consumption
and positive societal outcomes of its adoption through informative labelling (branding: global
or local), certification approval, use of social tags and influencer marketing among others as
the part of their promotion/communication strategies. These measures may serve positively
in influencing the mind-set of the consumers and could build trust in consumers’ minds about
the authenticity of organic labels. Here, communication through hybrid channel is
recommended. For instance, Wingreens Farms in India came up with organic dips and
sauces, they experimented with creative trials in the aisles of hypermarkets with deep
discounts for retailers to create supply side demand.

6. Limitations and future scope

This research has several limitations that should be considered in a subsequent study. First,
the study is limited to the NCR of India. Future research may include other regions beyond the
NCR to gain an all-inclusive understanding of PBL & PBG, customer value and organic food
purchase intentions. Correspondingly, similar research in other countries with geographical
and cultural similarities (for example, Nepal, Bhutan, Bangladesh and Pakistan) could permit
researchers to cultivate an in-depth profile of organic consumers in various regions. This
could extend the existing theoretical scope of knowledge.
Second, the study employed a cross-sectional research design; future scholars may favour
a time-lagged or longitudinal research design. Longitudinal research will determine if the
consumers’ value and organic food purchase intentions evolve with education and age or
remain constant over time. In addition, customer value was used as a mediating variable;
future research may instead use “trust”, which has a significant influence on organic food
purchase. This is due to consumers’ high trust in labels which indicate sustainability (Bryła,
2016; Tandon et al., 2020).
BFJ 7. Conclusion
This study developed an integrative model, including PBL & PBG, to predict organic food
purchase intentions. Based on the study theoretical framework, this study proposes six
variables (i.e. two aspects of PBL & PBG: PBG & PBL, customer value, customer
ethnocentrism and purchase intention) and explores the relationship between them. The
presented theoretical structure was evaluated from the viewpoint of 433 Indian customers.
The relationships between the constructs were examined using customer ethnocentrism as a
moderator. In addition, the role of the mediating variable of customer value was examined.
The results show that customer value partially mediates the relationship between PBL &
PBG and organic food buying intentions. This is a significant contribution as, based on the
literature review, no previous research has investigated these associations. The results
emphasise the importance of PBL & PBG (both global and local) in predicting organic food
purchase intentions. The findings indicate that consumers consider organic food’s essential
characteristics to be healthiness, high quality and sensory properties (i.e. natural taste).
Further, consumers with 50 and above years old are more likely to select organic food options,
and the likelihood to choose local foods increases in consumers interested in nutritional food
content, as they regularly use food nutritional label to purchase organic food products (Arora
et al., 2021). The present study helps identify the optimal marketing strategy/campaign that a
brand should adopt, which applies to local and global brands. This could motivate consumers
through the perceived gain of positive social sanction and PBL & PBG among social/peer
groups, thereby affecting purchase intention/behavior. Considering the current scenario in
which local brands are increasingly being encouraged, even global brands should consider
emphasising their local aspects.

Notes
1. https://economictimes.indiatimes.com/industry/consproducts/food/organic-food-market-growing-
at-25–30-awareness-still- low-government/articleshow/49379802.cms (accessed on June 12, 2021).
2. https://indiatoday.intoday.in/story/sikkim-becomes-the-first-fully-organicstate-of-india/1/573654.
html (accessed on June 12, 2021).

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Appendix
Study constructs with measurement items

Items
Variable code Items

Brand credibility BC BC1. This brand delivers what it promises

BC2. This brand’s product claims are believable
BC3. This brand has a name you can trust
Perceived brand PBG PBG1. To me, this is a local/global brand
globalness PBG2. I do not/do think consumers overseas buy this brand
PBG3. Products of this brand are available all over the world
Perceived brand PBL PBL1. This brand is strongly associated with Indian culture
localness PBL2. This brand is an icon of Indian culture
PBL3. This brand embodies Indian values
Customer value CV CV1. Overall, the chosen offerings are value for money
CV2. The chosen offerings are worth what is given up such as time,
energy and effort
CV3. Comparing with major competitors, the transaction with the
provider is a good choice
Purchase intention PI PI1. The next time I shop for vegetables, I am very likely to choose
organic vegetables
PI2. The next time I shop for rice, I am very likely to choose organic rice
PI3. The next time I shop for fruit, I am very likely to choose organic fruit
PI4. The next time I shop for meat, I am very likely to choose organic
meat
PI5. The next time I shop for processed food, I am very likely to choose
organic processed food
Consumer CE CE1. Indian should not buy foreign products, because this hurts Indian
ethnocentrism business and causes unemployment
CE2. A real Indian should always buy India-made products
CE3. It is not right to purchase foreign products
CE4. We should purchase products manufactured in India, instead of
letting other countries get rich off us

Corresponding author
Chandra Sekhar can be contacted at: chandrasekhar0021@gmail.com

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