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Examining consumers’ willingness to pay premium price for organic food

Author

Listed:
  • Tong Hu

    (Nantong Institute of Technology)

  • Abdullah Al Mamun

    (Universiti Kebangsaan Malaysia)

  • Mohammad Nurul Hassan Reza

    (UCSI University)

  • Mengling Wu

    (Universiti Kebangsaan Malaysia)

  • Qing Yang

    (Universiti Kebangsaan Malaysia)

Abstract

This study examines the factors influencing organic food consumption and willingness to pay premium prices in the context of an emerging economy. The extended attitudinal behavior-scenario model, rooted in Signaling theory, served as the foundation for the proposed model. A convenience sample of 470 young Chinese consumers was collected through online and offline surveys. Partial least squares structural equation modeling was used to test the hypothesized relationships. The results reveal that consumers’ environmental concern, environmental values, value perception, price sensitivity, and green promotion significantly affect their attitudes toward organic food. In addition, consumers’ health consciousness, value perception, price sensitivity, and green promotion demonstrate significant positive effects on their intention to consume organic food. Moreover, consumer attitude toward organic food substantially influences their intention to consume it. Similarly, consumer attitude, intention, and green psychological benefits significantly affect their willingness to pay premium prices for organic food. In addition, the indirect effects of consumer attitude toward organic food and intention to consume in the relationship between the factors and willingness to pay premium prices provide interesting findings. This study offers valuable guidance for policymakers in developing appropriate strategies to expand the organic food market and provides a solid foundation for future research on organic food consumption. This study suggests that policymakers should concentrate on enhancing awareness and knowledge of organic food, promoting organic food production, and prioritizing campaigns that emphasize the exceptional health advantages of organic food to encourage greater consumption.

Suggested Citation

  • Tong Hu & Abdullah Al Mamun & Mohammad Nurul Hassan Reza & Mengling Wu & Qing Yang, 2024. "Examining consumers’ willingness to pay premium price for organic food," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    • Handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-03789-6
    DOI: 10.1057/s41599-024-03789-6
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