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Introduction
Globally, the organic food market is experiencing significant growth, driven by increasing consumer concerns about health, environmental sustainability, and food safety. This trend is particularly notable in developed nations with high disposable incomes and strong environmental awareness. However, emerging economies like China present a unique context. China's history of food safety scandals has heightened consumer awareness of food quality and safety, creating a potential market for organic products. Despite this, organic food consumption in China lags behind global averages, suggesting a gap between consumer interest and actual purchasing behavior. This gap is attributed to factors such as information asymmetry, price sensitivity, and a lack of trust in the organic food market. This study addresses this research gap by investigating the factors influencing Chinese consumers' willingness to pay (WTP) premium prices for organic food, focusing on a younger demographic (18-35 years old) to understand their unique motivations and decision-making processes within the context of China's emerging organic food market. Specifically, the research examines how consumers' personal characteristics affect attitudes and intentions toward organic food and how these factors subsequently influence their WTP for premium organic products.
Literature Review
Existing research on organic food consumption behavior is abundant in developed countries like those in Europe and North America, highlighting factors such as health concerns, environmental attributes, WTP, psychological factors, and marketing strategies as key influences. However, studies focusing on emerging economies like China remain scarce. Previous studies have examined various factors influencing consumer behavior towards organic food including self-centered awareness, altruistic motivations, and biosphere concerns. Health factors and environmental attributes are consistently identified as significant motivators. Consumer willingness and ability to pay, along with psychological factors and marketing, also play a role. Positive attitudes towards green products consistently predict consumer behavior. The literature highlights a significant knowledge gap concerning the Chinese consumer market. Early organic agricultural products were primarily focused on export markets, and price premiums were achieved through international trade, leaving domestic consumption relatively underdeveloped. Recent efforts to promote domestic organic food have yet to significantly increase sales, with China's per capita consumption of organic food significantly lower than the global average. This disparity between stated attitudes and actual purchasing behavior, especially concerning the price premium associated with organic products (4-5 times higher than conventional food), makes it crucial to understand the Chinese consumer's perspective on WTP for organic food.
Methodology
This study employed a cross-sectional research design using a convenience sample of 470 young Chinese consumers (18-35 years old). Data were collected via online and offline surveys, utilizing a seven-point Likert scale to measure various constructs. The constructs included environmental concern (EC), environmental values (EV), health consciousness (HC), value perception (VP), price sensitivity (PS), green promotion (GP), green psychological benefits (GPB), attitude toward organic food (AOF), intention to consume organic food (IOF), and willingness to pay premium price for organic food (WPOF). The scales used for each construct were adapted from and validated against previous research. Data analysis involved partial least squares structural equation modeling (PLS-SEM) using SmartPLS version 3.1. The process involved two stages: assessment of the measurement model (reliability and validity) and analysis of the structural model (relationships between constructs). Predictive relevance (R²) and effect size (f²) were used to evaluate the model. Harman's single-factor test was used to assess common method bias, while multivariate normality was assessed using Web Power. Multi-group analysis (MGA) was employed to investigate variations in parameter estimates across different demographic categories (sex, physical fitness, and education).
Key Findings
The study's results indicate that several factors significantly influence attitudes and intentions toward organic food consumption and WTP for premium prices. Environmental concern (EC) positively influenced attitude toward organic food (AOF) (β = 0.081, p = 0.038). Environmental values (EV) (β = 0.146, p = 0.002) and value perception (VP) (β = 0.188, p = 0.000) showed strong positive associations with AOF. Price sensitivity (PS) (β = 0.088, p = 0.040) and green promotion (GP) (β = 0.219, p = 0.000) also positively impacted AOF. However, health consciousness (HC) and green psychological benefits (GPB) did not significantly affect AOF. For IOF, HC (β = 0.134, p = 0.002), VP (β = 0.223, p = 0.000), PS (β = 0.131, p = 0.009), and GP (β = 0.143, p = 0.005) were significant positive predictors. AOF (β = 0.113, p = 0.015) significantly predicted IOF. Regarding WPOF, AOF (β = 0.266, p = 0.000), GPB (β = 0.327, p = 0.000), and IOF (β = 0.309, p = 0.000) were significant predictors. The explained variance for AOF was 35.4%, for IOF 33.7%, and for WPOF 47.4%. Analysis of indirect effects revealed significant mediating roles of AOF and IOF in the relationships between certain factors and WPOF. Multi-group analysis showed no significant differences in WTP across sex or physical fitness groups but revealed a stronger effect of EC on IOF among individuals without a bachelor's degree.
Discussion
The findings highlight the importance of various factors in shaping consumer attitudes, intentions, and WTP for organic food in China. The significant influence of environmental factors (EC and EV) underscores the growing environmental consciousness among young Chinese consumers. Value perception plays a crucial role in justifying the higher price of organic products. The positive effect of green promotion highlights the importance of effective marketing strategies. The mediating roles of AOF and IOF emphasize the importance of consumer attitudes and intentions in the decision-making process. The lack of significant impact of HC on AOF, however, is unexpected and may be related to the overall health of the surveyed demographic. The insignificant role of GPB may be attributed to the private nature of food consumption. The multi-group analysis findings regarding education level suggest the need for tailored communication strategies.
Conclusion
This study contributes to a deeper understanding of organic food consumption in China. It integrates signaling and ABC theories, offering a holistic framework for analyzing WTP for premium organic products. The identification of key factors affecting AOF, IOF, and WPOF provides valuable insights for policymakers and businesses. Future research should adopt longitudinal designs to examine causal relationships and explore additional factors such as socioeconomic status, perceived risks, and pro-environmental behaviors. Further research could also involve qualitative methods to complement the quantitative findings.
Limitations
The cross-sectional nature of the study limits the ability to establish causal relationships. The reliance on self-reported data may introduce bias. The convenience sample may not be fully representative of the entire population of young Chinese consumers. The study focused on a specific age range and geographic location, limiting the generalizability of the findings. Other factors not considered in this study might also influence consumer behavior.
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