Willingness-to-pay for Organic Food in Pakistan: The Effect of Motivational Factors and Mediated Role of Attitude

Abstract

The consumers are becoming more conscious about the increasingly harmful effects of chemicals in food. The trend towards buying organic food is increasing worldwide including Pakistani consumers. It is a dire need of time to understand what factors persuade consumers to turn towards organic food. This empirical study is aimed at explaining the factors that influence willingness to pay (WTP) for organic food of urban consumers in Pakistan. This study used survey data collected from 600 consumers in the Central Punjab Pakistan during September to November 2017. Structured questionnaires were randomly distributed among the academic staffs, students of different universities and customers in different fruit and vegetable markets. Structural equation modeling was used to evaluate the data. Results indicate that consumers who were interested in buying the organic food products were likely to buy a more significant quantity of those products. The willingness to buy (WTB) organic food depends upon the attitudes, subjective norms, organic food knowledge, availability and labeling & certification. However, the health concern is ranked 1 st among all these. Moreover, perceived expensiveness, culture, and environmental concerns have less effect or negative impact on WTP. A contribution of this paper lies in providing marketing strategies for organic food vendors to cut down the barriers which consumers face while purchasing organic food in the country. Further research may explore the role of more motivating factors to have a better understanding about consumer's more WTP for safe food.

The Defining Role of Environmental Self-Identity among Consumption Values and Behavioral Intention to Consume Organic Food

“…Numerous studies have been conducted on the consumer’s pro-environmental behavior in Western countries [29,30,31]. However, fewer studies have obliged research on environmental aspects in Asian counterparts, including Pakistan [32,33]. Similarly, Biswas and Roy [34] call for additional research exertions to examine the progress of consumer’s attitude, intention, and behavior towards sustainable consumption in developing countries.…”

“…Food policymakers are also taking the necessary steps to encourage organic farming in Pakistan. The National Institute of Organic Agriculture (NIOA) supports the installation of organic herbicide, organic fertilizer, and organic pesticide manufacturing units which is considered to be a key milestone in organic farming [33]. Pakistan’s organic agricultural landshare also increased from 34,209 to 45,299 hectares in 2016 [38].…”

“…It is estimated that 33% of the farmers are producing organic food in Pakistan, and the ratio is expected to double in the next few years as consumer’s demand for organic food is increased. Moreover, the annual organic product exports of Pakistan are worth about $100 million [33].…”

Factors affecting repurchase intention of organic food among generation Z (Evidence from developing economy)

“…In Pakistan, organic food has been discussed from other aspects like [17] explaining the influence of different factors on the purchase intention of organic food. On the other hand [22], about the willingness to pay for organic food in Pakistan. Moreover [23], discussed applying the theory of planned behaviour topurchasing organic food.…”

Market prospects and willingness to pay for indigenous products: The case of Morama (Tylosema esculentum)

“…The major environmental factors are the location and the seasonality of the indigenous products (Dkhar and Rao, 2019). Socially, subjective norms tend to have an influence on the use of the indigenous products (Sana et al, 2018). Economically, the indigenous products are valued for the food security relief they bring to impoverished communities and developments around areas where it is found (Mbhenyane, 2017).…”