Determinants of Willingness to Purchase Organic Food: An Exploratory Study Using Structural Equation Modeling

International Food and Agribusiness Management Review, Vol. 14, No. 2, pp. 103-120, 2011

18 Pages Posted: 2 Jul 2011 Last revised: 20 Sep 2013

See all articles by Jan P. Voon

Jan P. Voon

Lingnan University

Kwang Sing Ngui

Swinburne University of Technology

Anand Agrawal

Asian Institute of Management, Manila, Philippines; Institute of Management Technology (IMT), Dubai; American University in the Emirates (AUE); Institute of Chartered Financial Analysts of India (ICFAI) - IBS - Hyderabad; Swinburne University of Technology, Sarawak

Date Written: January 30, 2011

Abstract

The global organic food market has grown tremendously over the past decade. The present study investigated the determinants of willingness to purchase organic food among consumers in a Malaysian city, using a questionnaire survey. The Theory of Planned Behavior informed the research framework and hypotheses. Using structural equation modeling, attitude, subjective norms and affordability (behavioral control) were modeled to impact intention or willingness to pay (WTP) for organic food. WTP in turn predicted actual purchase. Attitude and subjective norms exerted significant positive effects on WTP while the effect of affordability was not significant. Attitude further impacted subjective norms and affordability, thus indicating that efforts to promote consumption growth should focus on influencing consumer attitudes.

Keywords: organic food, management, SEM

Suggested Citation

Voon, Jan P. and Ngui, Kwang Sing and Agrawal, Anand, Determinants of Willingness to Purchase Organic Food: An Exploratory Study Using Structural Equation Modeling (January 30, 2011). International Food and Agribusiness Management Review, Vol. 14, No. 2, pp. 103-120, 2011. Available at SSRN: https://ssrn.com/abstract=1875186

Jan P. Voon (Contact Author)

Lingnan University ( email )

Department of Economics
Tuen Mun, NT
Hong Kong

Kwang Sing Ngui

Swinburne University of Technology ( email )

Cnr Wakefield and William Streets, Hawthorn Victor
3122 Victoria, Victoria 3122
Australia

Anand Agrawal

Asian Institute of Management, Manila, Philippines ( email )

123 Paseo de Roxas
Makati City, Metro Manila
Philippines

HOME PAGE: http://www.aim.edu

Institute of Management Technology (IMT), Dubai ( email )

DIAC
Dubai, 345006
United Arab Emirates

American University in the Emirates (AUE) ( email )

Dubai International Academic City
Dubai, UT
United Arab Emirates

Institute of Chartered Financial Analysts of India (ICFAI) - IBS - Hyderabad ( email )

Hyderabad, TX AP
India

Swinburne University of Technology, Sarawak ( email )

Sarawak
Malaysia

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