The Factors Influencing Purchase and Willingness to Pay for Organic Vegetables

Abstract

Organic vegetables are cultivated without chemical inputs to make them environmentally friendly, increasing the selling price. This study aims to analyze the influence of product attributes, psychography, and demography on the purchase of organic vegetables, product attributes, demography, and purchase to the will-ingness to pay (WTP) for organic vegetables. The research was conducted in East Java, Indonesia, in May 2021, based on an online survey through social media. Questionnaires were filled by 95 respondents who met the requirements. Data were analyzed using the partial least square–structural equation modeling (PLS-SEM) model. The results revealed that product, psychography, and demography influence the purchase of organic vegetables. Furthermore, product and demography also influence the WTP of organic vegetables. All product attributes positively correlate with product variables, except the label. About psychography, consumers’ concern regarding the environment is more critical than health motivation, primarily in influencing the purchase of organic vegetables. The essential indicators of demography are education and income. Meanwhile, the purchase does not affect the WTP. This research contributes to marketing theory in determining the price of organic products. The practical contribution of strengthening the quality attributes of organic vegetable products by improving the packaging of organic vegetables with informative labels to increase consumer trust in organic vegetables.