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Decisional Factors Driving Organic Food Consumption Generation of Consumer Purchase Intentions
Decisional Factors Driving Organic Food Consumption Generation of Consumer Purchase Intentions
Decisional Factors Driving Organic Food Consumption Generation of Consumer Purchase Intentions
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BFJ
117,3
Decisional factors driving
organic food consumption
Generation of consumer purchase intentions
1066 Chih-Ching Teng
Department of Restaurant, Hotel, and Institutional Management,
Received 19 December 2013
Revised 4 May 2014 Fu-Jen Catholic University, New Taipei City, Taiwan, and
Accepted 12 May 2014
Yu-Mei Wang
Department of Business Administration, Asia University, Taichung, Taiwan
Abstract
Downloaded by 80.82.77.83 At 13:18 12 February 2018 (PT)
Purpose – The purpose of this paper is to understand how information revealed on organic food
labels and perceived organic knowledge drive consumer trust and attitudes towards organic foods,
which in turn together with subjective norm eventually influence subsequent purchase intentions.
Design/methodology/approach – The questionnaire surveys were administered to customers at
four urban large-scale supermarkets and three health food stores at three major cities in Taiwan.
In total, 693 valid questionnaires were obtained, yielding a response rate of 81.5 per cent.
Findings – Trust, serving as the antecedent of attitudes, significantly mediates the relationships
between revealing information, perceived knowledge, and organic purchase intentions. Additionally,
both attitudes towards organic foods and subjective norm significantly influence consumer organic
food choices. However, the impact of perceived organic knowledge on consumer attitudes has been
found to be insignificant, indicating that the increase in perceived knowledge cannot create positive
attitudes towards organic foods. Thus, a focus on how to use knowledge to enhance consumer trust in
organic foods is suggested as an effective marketing strategy for the organic food industry.
Research limitations/implications – The research findings support that trust and attitudes play
the mediating roles linking revealed information and perceived knowledge with organic food purchase
intentions. This result is consistent with previous studies, indicating that better organic labeling
information and related knowledge perceived by consumers have critical effects on consumer trust in
organic foods, which in turn will influence their attitudes and intentions to purchase organic foods.
However, this study also found that perceived knowledge can generate positive attitudes only when
trust can be firmly built. This confirms the essential role of trust in the process of consumer organic
buying intentions.
Practical implications – First, providing credible labeling information by displaying how organic
agricultural products are grown, processed, and handled, and the percentage of organic ingredients in
a product is crucial to stimulate consumer trust and positive attitudes. Second, enhancing consumer
trust by providing correct knowledge and credible information through diversified channels (e.g. TV,
newspapers, magazines, web sites) to improve consumer organic knowledge has become the most
important task for the government, organic food sectors, certifiers, and research institutions to develop
positive attitudes towards organic foods. Finally, organic food sectors and marketers could use a
word-of-mouth strategy and focus on promoting the benefits and accessibility of organic foods to the
general public to raise the common acceptance of organic foods.
Social implications – Organic labeling has been considered an effective measure to help consumers
obtain valid and trustworthy information in the organic food market, particularly for those with
limited knowledge. Therefore, the government agencies not only need to take the responsibility to set
regulations for organic food/agricultural products, but also need to set labeling requirements for these
products. Based on these labeling requirements, the organic certifying agents can certify organic food/
British Food Journal
Vol. 117 No. 3, 2015
agricultural products by offering organic labels that contain clear information and represent quality to
pp. 1066-1081 consumers.
© Emerald Group Publishing Limited
0007-070X
Originality/value – This study incorporates critical factors based on related theories, including the
DOI 10.1108/BFJ-12-2013-0361 antecedents and the outcome variables of consumer trust, to develop a more comprehensive model for
better understanding of consumer organic choice behaviour. The research findings have provided Organic food
implications and additional contributions to the existing theories as well as developed effective
strategies for the development of the organic food market. consumption
Keywords Organic foods, Trust, Purchase intentions, Perceived knowledge, Revealed information,
Subjective norm
Paper type Research paper
1067
1. Introduction
Health and environmental effects of pesticides, genetically modified organisms, and
other non-natural substances used to increase agricultural production have stimulated
consumer and marketer interest in organic foods. The organic market has recently
increased considerably, and is widely regarded as one of the biggest growth markets in
the food industry (Hughner et al., 2007). Organic foods are generally perceived as more
nutritious, as well as healthier, safer, and more environmentally friendly. Previous
studies indicated that consumers are more likely to pay a premium for the superior
Downloaded by 80.82.77.83 At 13:18 12 February 2018 (PT)
quality and taste of organic foods, as well as their certified “safeness” (Chen and Lobo,
2012). Given the rapid and accelerating demand for and sales of organic foods,
understanding the critical factors that influence consumer organic food purchasing
behaviour is essential for organic product producers, suppliers, marketing specialists,
policy makers, and green restaurateurs to implement successful marketing strategies.
In reviewing the literature on organic food consumption, numerous studies have
investigated motivations for buying organic foods (Aertsens et al., 2009; Honkanen
et al., 2006; Lockie et al., 2004; Magnusson et al., 2003; Padel and Foster, 2005). Hughner
et al. (2007) reviewed previous research and concluded that the motives of organic food
consumers include concerns about health, the environment, food safety, and animal
welfare, desires for supporting the local economy and a wholesome lifestyle, nostalgia
for the past, and pursuit of fashion. Aertsens et al. (2009) suggested values as
motivators for organic food consumption, including security, hedonism, stimulation,
universalism, self-direction, benevolence, conformity, and power. However, there has
been insufficient research focusing on factors that can help consumers create trust
and positive attitudes towards organic foods, or exploring how the combination of
these factors can increase organic food consumption. Scholars have argued that trust
is a prerequisite for a successful business because consumers are hesitant to make
purchases unless they trust the seller (Kim et al., 2008). Consumer trust may be even
more important in organic purchase decisions than conventional ones. This is because
the organic market is rather small and undeveloped in Taiwan so that people generally
have limited awareness and knowledge of organic foods. Since trust is essential to
organic purchase behaviour, it is significant to identify the antecedents of consumer
trust in the context of organic food consumption.
In prior research, Von Alvesleben (1997) claimed that information revealed on
organic food labels is critical for consumers to identify quality of organic food products
that can create trust. Hughner et al. (2007) found that the levels of organic knowledge
have a strong influence on trust and organic food buying intentions. Additionally,
attitudes and subjective norms have been identified important to realize how personal
and societal factors influences individual behaviour (Ha, 1998). Put together, it seems
necessary to incorporate the critical factors mentioned above, including the antecedents
and the outcome variables of consumer trust, to develop a more comprehensive model
for better understanding of organic food choice behaviour. Accordingly, the current
study attempted to examine how revealed organic labeling information and perceived
BFJ organic knowledge would influence consumer intentions for buying organic foods through
117,3 several factors such as trust, attitudes, and subjective norm. This study also sought
insights into the key factors and processes that determine consumer organic buying
behaviour to provide implications and additional contributions to the existing theories
and to develop effective strategies for the development of the organic food market.
individual’s behavioural intention. Both the TRA and the TPB identify behavioural
intention as a critical antecedent of actual individual behaviour. The relationship
between behavioural intentions and actual behaviour is based on the assumption that
human beings attempt to make rational decisions based on the information available to
them. Therefore, a person’s behavioural intention to perform (or not to perform) a
behaviour is the immediate determinant of that person’s actual behaviour (Ajzen and
Fishbein, 1980). Still, the TPB has been considered a more comprehensive behaviour
theory compared to the TRA because the TPB incorporates more influential variables
in the model and provides more explanatory power in terms of predicting the adoption
of information technology (Mathieson, 1991).
Despite the two behaviour theories mentioned above, the Consumer Decision Model
(CDM) also has been used to understand the key elements of product choice behaviour,
namely, information sources, brand recognition, confidence, attitude, purchase intention,
and purchase actions (Howard, 1989). The CDM stresses that messages from different
information sources are very important for consumers to recognize a brand which help
consumers ensure quality of a product. When the attitude and confidence are formed, the
consumer’s desire to purchase a product is also increased. When the desire achieves in
certain level, the consumer is more likely to purchase. Studies applied the CDM have
shown that improved product information can enhance consumer recognition and
confidence, which in turn will increase attitudes and purchase intentions (Demeritt, 2002;
Gifford and Bernard, 2006; Pieniak et al., 2010).
Since the current study intended to examine how the antecedents of trust influencing
organic purchase intentions, specific determinants based on related theories such as
revealed information, perceived knowledge, trust, attitudes, and organic purchase
intentions then were selected as the main variables in the proposed model. Additionally,
this study mainly focuses on consumer decision processes to buy organic foods so that
some variables, such as perceived behavioural control, are not included in the conceptual
model. The following sections demonstrate the relationships among different variables in
the conceptual model and the hypotheses developed in this study.
in or avoid a behaviour. Ajzen (2002) claimed that subjective norm is determined by the
total set of accessible normative beliefs regarding the expectations of important referents
for the individual concerned (e.g. family, friends, and significant others). As societal
trends have moved towards healthier eating and increased individual responsibility for
personal well-being, these trends have strongly influenced consumer decisions to buy
organic foods (Hill and Lynchehaun, 2002). Indeed, subjective norm has been recognized
as a critical determinant of the impact of social influence on behavioural intentions (Ajzen
and Fishbein, 1980; Ha, 1998). Previous studies also identified a significantly positive
relationship between consumer subjective norms and organic food purchase intentions
(e.g. Chen, 2007; Dean et al., 2008). If consumers believe that those important to them have
positive attitudes and opinions regarding organic foods, they are more likely to have
positive intentions to buy organic foods. This study thus hypothesizes the following:
H2. Subjective norm positively influences organic food purchase intentions.
2.3 Effects of trust on attitudes and purchase intentions
Trust has been viewed as “a state of perceived vulnerability or risk that is derived from
individual uncertainty regarding the motives, intentions, and potential actions of others
on whom they depend” (Kramer, 1999, p. 571). Morgan and Hunt (1994) conceived trust
to exist when one party has confidence in the reliability and integrity of an exchange
partner. In numerous cases, trust is based on previous interactions. Trust has been
considered a common mechanism for reducing perceived transaction risk by increasing
expectations of a positive outcome and perceived certainty regarding the expected
behaviour of the trustee (Gefen, 2004). Although previous behaviour does not guarantee
a supplier will act as expected, customer trust will increase if the supplier previously
behaved as expected (Suh and Han, 2003).
Hart and Saunders (1997) further indicated that trust is one of the most effective
methods of reducing consumer uncertainty. Trust may be even more important for
organic foods than regular foods. This is because cultivation of trust is particularly
important when uncertainty and risk are inherent and warranties are frequently absent
(Crosby et al., 1990). In the organic food market, consumer trust is a delicate issue since
even after consumption consumers cannot verify whether a product is organic ( Janssen
and Hamm, 2012). Because of the importance of trust in organic food consumption,
trust in organic foods, as well as their vendors and certifications is a major influence
on consumer attitudes and subsequent behaviour. Moreover, previous studies have
BFJ confirmed that trust is an important predictor of customer attitudes and future
117,3 behaviour (Garbarino and Johnson, 1999; Gifford and Bernard, 2006). In the
relationship between trust and the TPB, trust has been identified as the antecedent of
attitudes towards purchase behaviour (Wu and Chen, 2005). Angulo et al. (2005) further
demonstrated that consumer confidence in food labels is deemed the most critical
component among the influences on purchase willingness. Accordingly, trust can be
1070 postulated to significantly and positively affect both attitudes and purchase intentions
for organic foods. Therefore, this study hypothesizes the following:
H3. Trust positively influences attitudes towards organic foods.
H4. Trust positively influences organic food purchase intentions.
higher uncertainty regarding organic food choices. Based on the above discussion,
this study hypothesizes the following and ultimately proposes a conceptual model
(see Figure 1):
H7. Perceived knowledge positively influences attitudes towards organic foods.
H8. Perceived knowledge positively influences trust in organic foods.
3. Method
3.1 Data collection
This study conducted questionnaire surveys to collect the research data. Since organic
foods are relatively new products in Taiwan, they are primarily available at large
supermarkets and health food stores in the major metropolitan area, such as Taipei,
Taichung, and Kaohsiung cities (Liu and Lee, 2010). This study thus targeted food
shoppers, customers at the age between 18 and 70, at major supermarkets and health
food stores in the three cities mentioned above as the research sample. The surveys
were administered to customers at four urban large-scale supermarkets and three
health food stores that carried both organic and conventional food products over a one
month period. The research assistants approached every fifth customer at the entrance
of the selected supermarkets and health food stores and asked if they would be
interested in completing a survey, and offered an incentive coupon for compensation.
Additionally, a screening question that asked participants if they had previously heard
of organic foods was asked to ensure participants were qualified to answer the survey
Subjective norm
H2
Revealed H6 H1 Purchase
information Attitudes intentions
H5
H7 H3 Figure 1.
Perceived H4 Proposed conceptual
knowledge
H8 Trust model
BFJ questions. In total, 850 questionnaires were distributed and finally 693 valid
117,3 questionnaires were obtained, yielding a valid response rate of 81.5 per cent.
Regarding the sample demographics, females comprised 58.15 per cent and males
41.85 per cent. Approximately 62.2 per cent of respondents had college or university
degrees, while 37.8 per cent had senior or junior high school degrees. Over 48.3 per cent
of the respondents were aged 21-30 years old, and the next largest age categories
1072 were 31-40 years old (28.4 per cent), 41-50 years old (8.5 per cent), over 51 years old (8.5
per cent), and below 21 years old (6.3 per cent). In terms of religions, the majority (59.1
per cent) of respondents identified as non-religious, followed by Buddhism (21.2 per
cent), Taoism (13.2 per cent), Christianity (4.6 per cent), and Catholicism (1.7 per cent).
3.2 Measures
This study used multi-item scales adopted from previously validated scales as the
survey instrument. Two faculty members and two existing organic food consumers
were invited to review the scale structure and contents for validity. Some wordings were
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relationships among the latent constructs (structural model). The path analysis also
identified the indices that could determine whether the model provides acceptable fit
to the data.
4. Results
4.1 Measurement model
The overall quality of the measurement model was assessed using CFA to validate the
six model constructs. The measurement model was estimated using the maximum
likelihood method and the model fit was tested using several fit indices. The χ2 value
for the model was statistically significant χ2/df ¼ 3.817; a root mean of squared error of
approximation (RMSEA) ¼ 0.063; goodness-of-fit (GFI) ¼ 0.904; comparative fit index
(CFI) ¼ 0.926; and adjusted goodness-of-fit (AGFI) ¼ 0.876. The fit indices indicate good
model fit (Hu and Bentler, 1999). The CFA results listed in Table I show that the
t-values (from 12.04 to 26.76) for factor loadings are all statistically significant
(p o 0.001), revealing that the indicators effectively reflect each underlying construct
(Anderson and Gerbing, 1988).
Regarding internal reliability, the Cronbach’s α of each item exceeds 0.70 except the
items V8, V17, V19, and V20. After deleting these items with insignificant reliability,
the composite reliabilities of all constructs are calculated to assess construct internal
consistency (see Table I). The results show that all six constructs exhibit good internal
reliability, with composite reliabilities ranging from 0.77 to 0.87, higher than the
threshold value 0.60 (Fornell and Larcker, 1981). Furthermore, the average variance
extracted (AVE) for each construct shown in Table I is higher than the suggested value
0.50 (Fornell and Larcker, 1981), except the construct “perceived knowledge” (0.472).
This indicates that the overall measurement model still has good convergent validity.
Together with good composite reliabilities, the findings support the reliability and
validity of the constructs and their underlying indicators. In terms of discriminant
validity, the AVE of each construct is higher than the squared correlations among the
constructs (see Table II), indicating that each construct has good discriminant validity
(Fornell and Larcker, 1981).
Construct Mean SD 1 2 3 4 5 6
1. Revealed information 3.54 0.723 0.790***
2. Perceived knowledge 2.95 0.693 0.422*** 0.678***
3. Subjective norm 3.30 0.694 0.315*** 0.314*** 0.691***
4. Attitudes 3.74 0.734 0.422*** 0.273*** 0.494*** 0.796*** Table II.
5. Trust 3.44 0.716 0.479*** 0.386*** 0.389*** 0.494*** 0.756*** Means, standard
6. Purchase intentions 3.18 0.779 0.287*** 0.225*** 0.519*** 0.426*** 0.507*** 0.801*** deviations, and
Notes: The square roots of AVE for discriminant validity are italicised along the diagonal; all correlations of the
correlations are significant at ***p o0.001 constructs
The path analysis demonstrates that revealed organic labeling information significantly
enhances consumer trust (γ ¼ 0.439, po0.001) and attitudes towards organic foods
(γ ¼ 0.207, po0.001), thus supporting H5 and H6. Next, perceived organic knowledge
significantly affects trust (γ ¼ 0.254, po0.001), but not attitudes (γ ¼ 0.033, ns).
BFJ
Subjective norm
117,3 0.34***
Thus, H8 is supported but H7 is not. Additionally, the results show that trust
significantly increases consumer attitudes (γ ¼ 0.428, po0.001) and organic food
purchase intentions (γ ¼ 0.426, po0.001), indicating H3 and H4 are also supported.
Finally, both subjective norm ( γ ¼ 0.337, po0.001) and attitudes (γ ¼ 0.093, po0.01)
positively affect organic food purchase intentions. These results support H1 and H2,
respectively.
5. Discussion
This study proposes and examines a conceptual model to understand how revealed
organic labeling information and perceived organic knowledge, together with subjective
norm, influence consumer intentions to purchase organic foods through consumer
trust and attitudes. The findings of this study support that trust and attitudes play
the mediating roles linking revealed information and perceived knowledge with organic
food purchase intentions. More specifically, trust, serving as the antecedent of attitudes,
significantly mediates the relationships between revealed information, perceived
knowledge, and organic food purchase intentions. This result is consistent with
previous studies, indicating that better organic labeling information and related knowledge
perceived by consumers have critical effects on consumer trust in organic foods, which in
turn will influence their attitudes and intentions to purchase organic foods (e.g. Janssen and
Hamm, 2012; Vermeir and Verbeke, 2006; Von Alvesleben, 1997; Zakowska-Biemans,
2011). Additionally, the current study confirms that subjective norm has a significant
impact on organic food purchase intentions, reinforcing the influence of social norms and
supporting the application of the TPB (e.g. Dean et al., 2008; Ha, 1998; Howard et al., 1988;
Saba and Messina, 2003). However, perceived knowledge does not directly influence
consumer attitudes towards organic foods, but through the mediator of trust, to affect
organic buying decisions. This reflects that higher levels of knowledge regarding organic
foods cannot directly lead to more positive attitudes. Instead, the increase of organic
knowledge can effectively reduce consumer uncertainty and create trust in
organic foods, and then ultimately increases consumer attitudes and intentions
of buying organic foods. This finding may be explained by those of previous studies
(e.g. Chen, 2008; Hughner et al., 2007; O’Fallon et al., 2007; Pieniak et al., 2010), showing
that knowledge can generate positive attitudes towards organic foods only when trust Organic food
can be firmly built. Thus, this result confirms the essential role of trust in the process consumption
of consumer organic buying intentions. If consumers perceive their knowledge levels
cannot help them increase understanding and trust in organic foods, they are not
likely to transform their attitudes into positive ones that can further influence organic
food buying decisions.
This study provides several implications for the development of effective strategies 1077
to the organic food market. First of all, sufficient and reliable labeling information is
significant to the creation of consumer trust and positive attitudes towards organic
foods. Given that organic foods are a relatively new concept compared to conventional
foods, providing credible labeling information by displaying how organic agricultural
products are grown, processed, and handled, and the percentage of organic ingredients
in a product is crucial to stimulate consumer trust and positive attitudes to make
informed buying decisions. Additionally, organic labeling has been considered an
effective measure to help consumers obtain valid and trustworthy information in
Downloaded by 80.82.77.83 At 13:18 12 February 2018 (PT)
the organic food market, particularly for those with limited knowledge. Therefore,
the government agencies not only need to take the responsibility to set regulations for
organic food/agricultural products, but also need to set labeling requirements for these
products. Based on these labeling requirements, the organic certifying agents can
certify organic food/agricultural products by offering organic labels that contain clear
information and represent quality to consumers.
Second, the organic knowledge of consumers is mainly determined by the level
of understanding of science and technology and the sources of the information by the
public. If consumers perceive themselves having good understanding of organic
agriculture and organic food production processes, they are more likely to generate
confidence in identifying organic foods, which in turn positively influences their
attitudes towards organic foods. Consequently, enhancing consumer trust by providing
correct knowledge and credible information through diversified channels (e.g. TV,
newspapers, magazines, web sites, published/research reports, and seminars and
workshops) to improve consumer organic knowledge has become the most important
task for the government, organic food sectors, certifiers, and research institutions
to develop positive attitudes towards organic foods. Since there is no direct effect of
perceived knowledge on positive attitudes, a focus on how to use knowledge to enhance
consumer trust in organic foods is suggested as an effective marketing strategy for the
organic food industry.
Finally, consumers’ organic purchase intentions are influenced by people who are
important to their life. If consumers believe that those people important to them
consider organic foods are good/bad, they will then have higher/lower intentions to
purchase organic foods. Therefore, organic food sectors and marketers could focus on
promoting the benefits and accessibility of organic foods to the general public (e.g. safe,
healthy, environmentally friendly, and accessible) to raise consumer recognition
and the common acceptance of organic foods. Given the strong effect of subjective
norm, a word-of-mouth strategy is also recommended as a useful marketing strategy to
increase consumer purchase intentions of organic foods.
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