Examining consumers' willingness to pay premium price for organic food

The study investigates why young Chinese consumers are willing (or not) to pay a premium for organic food amid rising global interest in health, safety, and eco-friendly consumption and persistent information asymmetries in China’s developing organic market. It addresses a pronounced attitude–behavior gap and high organic price premiums as barriers to purchase. The research integrates signaling theory and the attitude–behavior–context (ABC) framework to explain how personal and contextual factors shape attitude toward organic food (AOF), intention to consume organic food (IOF), and willingness to pay a premium for organic food (WPOF). The research questions are: RQ1: How do consumers’ personal characteristics affect AOF and IOF? RQ2: Do AOF influence IOF? RQ3: Do AOF, IOF, and green psychological benefits (GPB) affect WPOF?

The paper grounds its framework in signaling theory, which addresses market information asymmetry by positing that firms’ health and environmental signals help consumers form attitudes and intentions, and the ABC theory, which emphasizes the role of attitudes in driving specific green behaviors. Prior studies document drivers of WTP for organic and eco-labeled foods (health, environmental attributes, subjective norms, income, safety certifications) across contexts (China, Vietnam, Thailand, Indonesia, Bangladesh). Meta- and model-based works highlight health consciousness, environmental awareness, and perceived value as key antecedents of attitudes and intentions. Evidence from China shows early export orientation, growing domestic demand, and persistent price-premium barriers. The review identifies gaps in integrating psychological benefits and examining WTP premiums (not just intentions), particularly in emerging markets like China, motivating the study’s extended model with constructs: environmental concern (EC), environmental values (EV), health consciousness (HC), value perception (VP), price sensitivity (PS), green promotion (GP), GPB, AOF, IOF, and WPOF.

Design: Cross-sectional survey of Chinese consumers aged 18–35. Sampling and data collection: 470 questionnaires administered May–June 2023 via SoJump (online) and face-to-face at Sam’s Club and RT-Mart in Nantong; links and QR codes shared via WeChat/QQ; 451 valid responses after removing 19 invalid straight-liners (valid rate 95.95%). Instrument: Self-administered questionnaire; seven-point Likert scales; items adapted from prior literature for EC, EV, HC, VP, PS, GP, GPB, AOF, IOF, and WPOF; professional translation. Example sources: EC (De Toni et al., Durmaz & Akdoğan), EV (Tan et al., Kiatkawsin & Han), HC (Nagaraj), VP (Mohd Suki et al., Lin & Huang, Seegebarth et al.), PS (Walser-Luchesi & Calmelet, Hsu et al., Ghali-Zinoubi & Toukabri), GP (Ahmed et al., Bailey et al., Pettersson et al.), GPB (Hartmann & Apaolaza-Ibáñez), AOF (Mohd Suki et al.), IOF (Parashar et al.), WPOF (Namkung & Jang). Analysis: PLS-SEM (SmartPLS 3.1). Measurement model assessed via reliability (Cronbach’s alpha and CR >0.70), convergent validity (AVE >0.50), Dijkstra–Henseler’s rho (>0.70), and discriminant validity (Fornell–Larcker criterion and HTMT <0.85). CMB checked via Harman’s single-factor test (single factor 33.96% <50%) and full collinearity VIFs (1.391–2.399). Data non-normality confirmed (multivariate skewness/kurtosis p<0.05). Structural model evaluated with path coefficients, t values, R², and f²; indirect effects tested via bootstrapping. Multi-group analysis: MICOM established measurement invariance across sex, physical fitness, and education (except EC in sex and EV in education), followed by PLS-MGA to test group differences.

Measurement quality: All constructs exhibited strong reliability (alphas 0.870–0.923; CR 0.905–0.942) and convergent validity (AVE 0.656–0.764). Structural results (n=451): • Determinants of AOF: Significant positive effects from EC (β=0.081, p=0.038), EV (β=0.146, p=0.002), VP (β=0.188, p=0.000), PS (β=0.088, p=0.040), and GP (β=0.219, p=0.000). Non-significant: HC (β=0.063, p=0.093), GPB (β=0.051, p=0.158). R²(AOF)=0.354. • Determinants of IOF: Significant positive effects from HC (β=0.134, p=0.002), VP (β=0.223, p=0.000), PS (β=0.131, p=0.009), GP (β=0.143, p=0.005), and AOF→IOF (β=0.113, p=0.015). Non-significant: EC (β=0.038, p=0.206), EV (β=−0.013, p=0.395), GPB (β=0.044, p=0.200). R²(IOF)=0.337. • Determinants of WPOF: Significant positive effects from GPB (β=0.327, p=0.000), AOF (β=0.266, p=0.000), and IOF (β=0.309, p=0.000). R²(WPOF)=0.474. Indirect effects (selected): • Via AOF to IOF: VP→AOF→IOF (β=0.021, p=0.030); GP→AOF→IOF (β=0.025, p=0.024). • Via AOF to WPOF: EV (β=0.039, p=0.004), VP (β=0.050, p=0.001), PS (β=0.024, p=0.043), GP (β=0.058, p=0.002). • Via IOF to WPOF: HC (β=0.041, p=0.004), VP (β=0.069, p=0.000), PS (β=0.041, p=0.011), GP (β=0.044, p=0.013), AOF (β=0.035, p=0.016). Multi-group analysis: No significant differences by sex or perceived physical fitness. By education, EC→IOF was stronger among respondents without a bachelor’s degree (difference β=0.274, p=0.007); no other significant group differences.

Findings address the research questions by showing that personal characteristics and marketing signals shape attitudes and intentions, which in turn drive willingness to pay a premium. EC and EV strengthen AOF but do not directly translate into IOF, highlighting that environmental motivations alone may be insufficient to form consumption intentions without value and promotional cues. HC directly elevates IOF (but not AOF) among young, generally healthy consumers, suggesting health motivations operate more behaviorally than attitudinally in this cohort. VP and GP consistently bolster both AOF and IOF, confirming that perceived functional, emotional, and ecological value—communicated effectively via green promotion—are central levers. PS shows positive associations with AOF and IOF, indicating that even price-aware consumers recognize the relative value of organic food. GPB, while not shaping AOF or IOF, exerts a strong direct effect on WPOF, implying that self-expressive and psychological benefits mainly manifest at the premium payment decision stage, potentially because organic food is often privately consumed, limiting the role of status signaling in attitude and intention formation. Mediation analyses reveal that AOF and IOF transmit the effects of VP, PS, and GP to WPOF, underscoring the attitudinal–behavioral pathway. The educational difference (stronger EC→IOF among less educated respondents) suggests environmental messaging may resonate more with this group. Overall, combining signaling and ABC theories clarifies how cues and contexts coalesce to influence premium payment propensity in an emerging market.

The study integrates signaling theory and the ABC framework to explain young Chinese consumers’ willingness to pay a premium for organic food. It demonstrates that EC, EV, VP, PS, and GP shape AOF; HC, VP, PS, GP, and AOF shape IOF; and AOF, IOF, and GPB directly increase WPOF. Indirect effects via AOF and IOF illuminate the mechanisms linking value perceptions and promotional cues to premium payment. Contributions include: a focus on WTP premiums rather than only intentions, empirical integration of psychological benefits, and evidence from an emerging-market youth cohort. Practical implications advise policymakers to raise awareness, strengthen regulations and trust, and use subsidies; and advise firms to enhance perceived value, product quality, and green promotion while innovating in communication and channels. Future research should adopt longitudinal and mixed-method designs; examine additional drivers (e.g., socioeconomic status, perceived risk, pro-environmental behavior), moderators (e.g., green labeling, trust, knowledge), and specific organic categories; include broader age cohorts; and perform cross-country comparisons.

Key limitations include the cross-sectional design limiting causal inference; reliance on self-reported survey data; focus on a single country (China) and age cohort (18–35), which may constrain generalizability; omission of potentially relevant factors such as socioeconomic variables, perceived danger/risk, and broader pro-environmental behaviors; and not distinguishing among organic product categories. Future studies should use longitudinal and mixed-method approaches, test additional antecedents and moderators (e.g., labeling, trust, knowledge), consider product-specific analyses, include more diverse age groups, and conduct cross-national comparisons.