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Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions
Organic Food Purchase Intention: Examining the Influence
of Religion on Consumers’ Decisions
Robetmi Jumpakita Pinem
Lecturer, Department of Business Administration, Universitas Diponegoro, Semarang, Central Java, Indonesia
Author’s Email: robetmijumpakita@yahoo.com
This study investigates the role of religion in organic food consumption in Indonesia, the country
with the world’s largest Muslim population. A central benefit of consuming organic food is its
various health benefits produced using green methods. Besides protecting health, organic food
is good for the environment. This study investigates health consciousness, eco-knowledge, eco-
labelling, and price sensitivity as variables that influence attitudes toward organic food and
consumers’ organic food purchase intention. Results are compared between Muslim and non-
Muslim in 526 respondents. The major data analysis performed was structural equation modeling
using linear structural relations (LISREL) software. This study found that health consciousness,
eco-knowledge, eco-labelling, and price sensitivity significantly influence attitudes toward
organic food and purchase intention; however, the results differed based on religion. Muslim
respondents showed greater concern for the environment such as eco knowledge and eco
labelling, while non-Muslims were more concerned with personal issues such as health
consciousness and pricing.
Keywords: purchase intention, religion, health consciousness, eco-knowledge, eco-labels, price sensitivity, attitude,
organic food
INTRODUCTION
In recent years, the importance of environmental
protection and food security incidents around the world
have increased consumers’ health awareness and has
made organic food a focus of public attention (Hsu, Chang,
& Lin, 2016). One of the ways to protect the environment
is to increase the use of environmentally friendly products
that reduce environmental damage. Currently, one of
biggest ways to contribute to this process is to consume
organic food. Globally the organic food market has grown
rapidly due to increased consumer interest in food
consumption, which is an integral part of everyday life
(Cabuk, Tanrikulu, & Gelibolu, 2014).
Recent food supply crises caused by mad cow disease,
melamine-contaminated milk, the Belgian dioxin scandal
and concerns about the use of pesticides in agriculture
have prompted consumers to lose confidence in the quality
of conventional food (Chen, 2009). The Research Institute
of Organic Agriculture and the International Federation of
Organic Agriculture Movements (IFOAM) (2016) estimated
that in 2014, global retail sales of organic food and drink
reached 80 billion US Dollars.
The purpose of organic farming is to produce healthy and
high quality food without using synthetic chemical
fertilizers or pesticides (Voon et al., 2011). Therefore,
organic food not only protects the environment but also
supports consumer health. It further provides significant
benefits to the socio-economic status of rural areas.
Recently, both consumers and public institutions have
demonstrated increased interest in organic foods while
consumers’ concerns about food security, human health,
and the environment have grown (Bezawada & Pauwels,
2013; Gracia & de Magistris, 2007). Organic foods are thus
becoming increasingly popular due to their superior health
benefits compared to non-organic foods. Organic food also
represents an approach to agriculture and is thus
concerned with ecosystem health. Organic farming
measures that protect ecosystems, consumer health, and
the environment include avoiding artificial pesticides and
fertilizers, prioritizing animal welfare, and using only
natural additives in food processing (Kriwy & Mecking,
2012).
Many factors influence a consumer’s decision to purchase
Research Article
Vol. 6(2), pp. 206-214, May, 2019. © www.premierpublishers.org. ISSN: 2167-0470
International Journal of Agricultural Marketing
Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions
Pinem RJ 207
an organic food product, including important purchasing
criteria for target foods such as taste, health, and quality
(Magnusson, Arvola, Koivisto Hursti, Åberg, & Sjödén,
2001). In this study, we focus on health consciousness,
eco-knowledge, eco-labelling, price sensitivity, and
attitudes. Consumers’ health consciousness is an
important factor because organic food is believed to be
healthier than conventional food (Kriwy & Mecking, 2012;
Lockie, Lyons, Lawrence, & Mummery, 2002). In addition,
some scholars have reported that greater awareness of,
and knowledge about organic foods have a positive effect
on consumer attitudes and consumption (Aertsens,
Mondelaers, Verbeke, Buysse, & Van Huylenbroeck,
2011; Wahid, Rahbar, & Shyan, 2011).
By providing information on a product’s environmentally
friendly attributes, eco-labels distinguish organic products
from others and create an advantage for manufacturers
who target consumers who care about the environment
(Brouhle & Khanna, 2012). Despite many studies
indicating strong consumer support for labelling
information, uncertainty remains with respect to how labels
influence consumers and how well consumers understand
product label information (D'Souza, Taghian, & Lamb,
2006).
Previous studies have found that the price of organic food
is higher than that of conventional food. The high cost of
organic food can present a challenge for consumers who
want to buy organic food. Organic consumers cannot
change options as easily as non-organic consumers, as
many stores sell conventional food, but few specialize in
organic products (Kriwy & Mecking, 2012).
According Cabuk et al. (2014) attitudes variable play an
important role in organic food purchasing: they have a
direct impact on purchase intention and an indirect effect
as mediator of how health consciousness influences
purchase intention. Many previous studies have shown
mixed results regarding the factors driving organic food
consumption; more detailed studies are needed in order to
more fully understand how attitudes toward organic food
mediate organic food consumption (Ajzen, 1991; Cabuk et
al., 2014; Cheah & Phau, 2011).
In 2001, the Indonesian government launched the Go
Organic 2010 program with the goal of become one of the
world's leading organic food producers. The program
consists of developing public education about organic
food, human resources, and regulations in addition to
creating technical assistance facilities, certification
facilities, and conducting market promotion (Ditjen BPPHP
Deptan, 2005). According to World Bank (2016), Indonesia
with a population of 261 million, has the fourth largest
population in the world and the world’s largest Muslim
population. This study focuses on the differences Muslim
and non-Muslim respondents in terms of health
consciousness, eco-knowledge, eco-labels, price
sensitivity toward attitudes and toward purchase intention
on organic food.
LITERATURE REVIEW
Health Consciousness
Health consciousness relates to consumers’
understanding of changes in their health status and the
degree of emphasis a healthy lifestyle. Consumers
interviewed in previous studies agree that organic foods
are healthier, have higher levels of vitamins and minerals,
have lower pesticide residues and do more to address
pollution and environmental damage (Gracia & de
Magistris, 2007; Hsu et al., 2016; Padel & Foster, 2005).
The mostly commonly cited reason for choosing organic
foods is health issues (Padel & Foster, 2005; Sirieix,
Kledal, & Sulitang, 2011; Tung, Shih, Wei, & Chen, 2012).
In addition to the results of previous research, we suggest
that highly health conscious individuals will prefer organic
foods over conventional foods that may contain pesticides
or chemical fertilizers. Therefore, we expect that
consumers with high health consciousness will have
positive attitudes towards, and a desire to buy, organic
food. We also expect to find differences in health
consciousness between Muslim and non-Muslim
consumers, Muslim concern more about food because
religion reason. In light of these expectations, we propose
the following hypotheses:
H1a: There will be a significant positive relationship
between health consciousness and attitudes toward
organic food.
H1b: There will be a significant positive relationship
between health consciousness and organic food purchase
intention.
H1c: The strength of the relationship between health
consciousness and attitudes towards organic food will be
different for Muslim and non-Muslim respondents.
H1d: The strength of the relationship between health
consciousness and organic food purchase intention will be
different for Muslim and non-Muslim respondents.
Eco-knowledge
Eco-knowledge refers to an individual’s knowledge of the
effects of a product on the environment, and specifically to
the process of evaluating products’ features and benefits
in an environmental context (Akbar, Hassan, Khurshid,
Niaz, & Rizwan, 2014). People who have greater eco-
knowledge will be more worried about environmental
damage and will be more willing to purchase organic food.
Eco-knowledge is an important factor in understanding
consumers who intend to purchase organic food, as it
represents a situation where consumers consider the
benefits of a purchase for both themselves and the
environment (Saleki, 2012).
Recent literature has shown that there is a positive
relationship between eco-knowledge and green product
Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions
Int. J. Agric. Mark. 208
purchase intention (Akbar et al., 2014; Chan & Lau, 2000;
Gracia & de Magistris, 2007; Noor et al., 2012; Saleki,
2012). Further, consumers with high-level of organic food
knowledge are more willing to purchase organic food
(Gracia & de Magistris, 2007; Wahid et al., 2011). We also
expect to find different results for Muslim and non-Muslim
consumers based on different levels of eco-knowledge
because Muslim care more about food because religion
reason, Muslim cannot eat all food and organic food is one
of option. Therefore, we put forward the following
hypotheses:
H2a: There will be a significant positive relationship
between eco-knowledge and attitudes toward organic
food.
H2b: There will be a significant positive relationship
between eco-knowledge and organic food purchase
intention.
H2c: The strength of the relationship between eco-
knowledge and attitudes toward organic food will be
different for Muslim and non-Muslim respondents.
H2d: The strength of the relationship between eco-
knowledge and organic food purchase intention will be
different for Muslim and non-Muslim respondents.
Ecological labelling
The use of ecological labels (eco-labels) is a good way to
address environmental concerns because they are
produced in an environmentally friendly way (Ben Youssef
& Lahmandi-Ayed, 2008; Bleda & Valente, 2009). Eco-
labeling provides consumers with information—a kind of
expanded product quality and service assessment—by
indicating the product’s environmental attributes (Bratt,
Hallstedt, Robert, Broman, & Oldmark, 2011). Given that a
relatively large number of consumers always read labels
and consider the information provided to be accurate,
D'Souza et al. (2006) argued that eco-labelling is an
important way of communicating products’ environmental
justifications to consumers. Chekima (2015) went further
and strongly suggested that green product manufacturers
immediately place eco-labels on their product packaging.
Eco-labelling has a strong influence on organic product
purchase intention and is a vital marketing tool for helping
consumers identify green product (Chekima, 2015;
D'Souza et al., 2006; Grankvist & Biel, 2001). We also
investigated the differences between Muslim and non-
Muslim consumers. Therefore, we propose the following
hypotheses:
H3a: There will be a significant positive relationship
between eco-labeling and attitudes toward organic food.
H3b: There will be a significant positive relationship
between eco-labelling and organic food purchase
intention.
H3c: The strength of the relationship between eco-
labelling and attitudes toward organic food will be different
for Muslim and Non-Muslim respondents.
H3d: The strength of the relationship between eco-labeling
and organic food purchase intention will be different for
Muslim and Non-Muslim respondents.
Price sensitivity
Price is also an important factor in determining consumer
purchasing behavior (Han, Gupta, & Lehmann, 2001).
Price sensitive customers are advised to read eco-labels,
but their satisfaction with the information provided may be
determined by what they are willing to pay (D'Souza et al.,
2006). Consumers who feel the price of organic food is
justified will have positive attitudes towards, and increased
rates of purchasing it (Saleki, 2012). We will also compare
the price sensitivity of Muslim and non-Muslim consumers
to find which group more price sensitivity as one of key to
decide price of organic food. Therefore, based on previous
research, we hypothesize that:
H4a: There will be a significant positive relationship
between price sensitivity and attitudes toward organic
food.
H4b: There will be a significant positive relationship
between price sensitivity and organic food purchase
intention.
H4c: The strength of the relationship between price
sensitivity and attitudes toward organic food will be
different for Muslim and non-Muslim respondents.
H4d: The strength of the relationship between price
sensitivity and organic food purchase intention will be
different for Muslim and non-Muslim respondents.
Outlook
Outlook refers to an individual’s evaluation of behaviors as
good or bad (Irianto, 2015). In line with the Theory of
Planned Behavior (TPB) assertion that attitude towards a
behavior predicts behavioral intention (Ajzen, 1991).
Several studies have shown that there is a significant
positive relationship between attitudes toward, and desire
to purchase, organic foods (Cabuk et al., 2014; Cheah &
Phau, 2011; Chen, Lobo, & Rajendran, 2014; Irianto,
2015; Magnusson et al., 2001; Tarkiainen & Sundqvist,
2005). Based on the results of previous research, we
expect that Outlook will mediate the relationships that
health consciousness, eco-knowledge, eco-labelling, and
price sensitivity have with organic food purchase intention.
We also expect that Muslim and non-Muslim consumers
will have different attitudes toward organic food. Therefore,
we make the following hypotheses:
Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions
Pinem RJ 209
H5a: There will be a significant relationship between
attitude towards organic food and organic food purchase
intention.
H5b: The strength of the relationship between attitude
towards organic food and organic food purchase intention
will be different for Muslim and non-Muslim respondents.
METHODOLOGY
Sampling
The questionnaire was made in English and translated into
Indonesian. To maintain the accuracy of translation results
and easy to understand then tested a questionnaire to
some respondents, providing feedback and revisions to
maintain the accuracy and make it easy to understand the
questionnaire to be used. The final questionnaire was
distributed online. In total, data was collected from 526
respondents, of which 273 identified as Muslim and 253
identified as non-Muslim, first step we asked their religion
before fill the quesyionnaire. Respondents were of various
genders, ages, religions, income levels, education levels,
and marital status
Instrument
All items were measured using a seven-point Likert scale
(1 = strongly disagree; 7 = strongly agree). Our
questionnaire was adapted from previous papers and
included a total of 33 items. For health consciousness, six
items (α = 0.831) were chosen from Hong (2015) (e.g., “I
avoid foods containing nitrites or preservatives”). For eco-
knowledge, four items (α = 0.788) were chosen from Akbar
et al. (2014) (e.g., “Ecological knowledge has an influence
on green purchasing behavior”). For eco-labelling, we
used six items (α = 0,793). Four were adapted from
Nguyen et al. (2010) and two were adapted from Kong et
al. (2014) (e.g., “I consider what is printed on eco-labels to
be accurate”). For price sensitivity, four items (α = 0.795)
were chosen from Goldsmith et al. (2010) (e.g., “I know
that organic food is likely to be more expensive than
conventional food, but that doesn’t matter to me”). For
attitude toward organic food, seven items (α = 0.823) were
chosen from Khan and Azam (2016) (e.g., “I think that we
all should purchase eco-labelled products”). Finally, for
purchase intention, we used six items (α = 0.875). Four
were adapted from Akbar et al. (2014) and two were taken
from Wee et al. (2014) (e.g., “I intend to buy organic food”).
Convergent Validity
The aim of validity and reliability testing is to determine
whether the chosen indicator variables are significant in
terms of reflecting the construct or latent variables
(convergent validity). We tested convergent validity by
calculating standardized loading factor (SLF), construct
reliability (CR) and average variance extracted (AVE)
values.
Good convergent validity is indicated by high SLF values:
specifically, Hair (2010: 678) suggested a value of SLF ≥
0.5. CR is another determinant indicator that indicates
whether or not there is convergent validity. Hair (2010:
679) proposed that a value of CR ≥ 0.7 indicates good
reliability and that CR values between 0.6 and 0.7 indicate
acceptable reliability. He noted that indicator variables
show good validity. CR is calculated using the following
formula:
𝐶𝑅 =
(∑ 𝑆𝐿𝐹𝑖
𝑛
𝑖=1 )2
(∑ 𝑆𝐿𝐹𝑖
𝑛
𝑖=1 )2 + (∑ 𝑒𝑖
𝑛
𝑖=1 )
.
CR indicates composite reliability, SLF is the standardized
factor loading and ei is the variance due to measurement
error (Hair, 2010: 679).
Hair (2010: 679) states that an AVE value of AVE ≥ 0.5
indicates adequate convergence. The AVE measure is
calculated using the following formula:
𝐴𝑉𝐸 =
∑ 𝑆𝐿𝐹𝑖
2𝑛
𝑖=1
∑ 𝑆𝐿𝐹𝑖
2𝑛
𝑖=1 + ∑ 𝑒𝑖
𝑛
𝑖=1
.
SLF is the standardized factor loading and n is the number
of items.
Data Analysis
For this study, data analysis was carried out in three steps
using SPSS 21 and LISREL software. First, SPSS 21 was
used to describe the distribution of respondents based on
demographic characteristics such as gender, age, religion,
income, education level and marital status (see Table 1).
Second, we carried out structural equation modeling
(SEM) using LISREL software. The scope of our
measurement model included validity and reliability tests.
For the structural model we tested the significance of the
influence of independent variables on dependent variables
across all data. Third, the data was divided into two
groups: Muslim and non-Muslim respondents. We
analyzed each group and compared the results. Based on
the results of all combined data, health consciousness,
eco-knowledge, eco-labelling and price sensitivity all have
a significant positive relationship with attitudes toward
organic food and organic food purchase intention. We
divided into Muslim and non-Muslim groups, analyzed
each, and compared the results for each variable
RESULTS
Demography
Female respondents were 270 respondents (51.3%) and
not significantly different male respondents 256 (48.7%).
Age of respondents dominant 21-30 years old i.e. 435
respondents (82.7%). Educational respondents dominant
master degree i.e. 235 respondents (44.7) and bachelor
degree 226 (43%). Revenue of dominant respondents
Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions
Int. J. Agric. Mark. 210
below Rp. 4,000,000 i.e., 346 respondents (65.8%).
Muslim respondents were 273 respondents (51.9%) and
the rest of non-Muslims were 253 respondents (48.1%).
Marital status of respondent’s dominant single 448
respondents (85.2%).
Factor Loading and Convergent Validity
The results of factor loading and convergent validity tests
are shown in Table 2. The SLF value of each indicator was
greater than 0.5, which means that all indicators had a
sufficient and strong ability to explain the latent constructs
(Hair et al, 2010) and that, good convergent validity was
achieved. For AVE, we found the following values: health
consciousness (HC) = 0.8765, eco-knowledge (EK) =
0.8568, eco-labelling (EL) = 0.8361, price sensitivity (PS)
= 0.8299, attitude (ATT) = 0.796 and purchase intention
(PI) = 0.869. As all values were greater than 0.5, the data
also have good convergent validity based on AVE values.
The CR values were as follows: HC = 0.9771, EK = 0.9599,
EL = 0.9684, PS = 0.9512, ATT = 0.9647, and PI = 0.9755.
All values were greater than 0.7, which means the data
satisfied the requirements for good convergent validity
based on CR size.
Structural model assessment of fit
First, SEM was used to test the suitability of our model and
then regression coefficients were calculated to measure
the impact of variables. We evaluated the suitability of the
model by comparing the values of various fit indices. As
shown in Table 3, overall the SEM model has a good fit
with the sample data. We therefore continued to the next
step of testing.
Path Analysis
After testing the suitability of the model, we tested our
hypotheses using the structural model. Table 4 shows the
results of coefficient and t-tests, which estimate the
significance of the relationships between latent variables.
These results can be summarized as follows:
The path coefficient value of HC to ATT is 0.2734. This
shows that HC has a positive effect on ATT. Given that the
t value 5.6472 > t table 1.96, HC also has a significant
effect on ATT. The path coefficient value of EK to ATT is
0.1454, and thus EK has a positive effect on ATT. The t
value of 3.1076 (> t table 1.96) means that the effect of EK
on ATT is also significant. The path coefficient value of EL
to ATT is 0.1997, and thus EL has a positive effect on ATT.
The t value of 4.3548 (> t table 1.96) means that the effect
of EL on ATT is also significant. The path coefficient value
of PS to ATT is 0.3116, and thus PS has a positive effect
on ATT. The t value of 6.7878 (> t table 1.96) means than
the effect of PS on ATT is also significant. The R-squared
value showed that health consciousness, eco-knowledge,
eco-labelling, and price sensitivity accounted for 68.7% of
the variation in attitudes toward organic food.
The value of the path coefficient from HC to PI is 0.2262,
which shows that HC has a positive effect on PI. The t
value of 5.5461 (> t table 1.96) shows that the effect of HC
on PI is also significant. The path coefficient value from EK
to PI is 0.2185, which shows that EK has a positive effect
on PI. The t value of 3.6560 (> t table 1.96) shows that the
effect of EK on PI is also significant. The path coefficient
value from EL to PI is 0.1387, which shows that EL has a
positive effect on PI. The t value of 3.6456 (> t table 1.96)
shows that the effect of EL on PI is also significant. The
path coefficient value of PS to PI is 0.2327, meaning that
that PS has a positive effect on PI. The t value of 5.8808
(> t table 1.96) means that the effect of PS on PI is also
significant. The path coefficient value of ATT to PI is
0.2675, meaning that ATT has positive effect on PI. The t
value of 6.4847 (> t table 1.96) means that the effect of
ATT of PI is also significant. The R-squared value showed
that health consciousness, eco-knowledge, eco-labelling,
and price sensitivity accounted for 79.59% of the variation
in purchase intention.
Comparison of Muslim and non-Muslim groups
Factor Loading and Convergent Validity
The results of factor loading and convergent validity tests
for the data from Muslim and non-Muslim respondents are
shown in Tables 5 and 8. The data for both Muslim and
non-Muslim groups had good convergent validity as
measured by SLF, AVE and CR values. The SLF values
of each indicator were greater than 0.5, meaning that the
indicators had sufficient validity to explain the latent
constructs. For AVE, both groups’ data also had values
greater than 0.5, which means the data had good
convergent validity. Finally, the CR values for both Muslim
and non-Muslim groups were greater than 0.7, meaning
that the data had good convergent validity.
Structural model assessment of fit
We tested the full SEM to examine its suitability and used
regression coefficients to assess the significance of
causality between variables. We evaluated the suitability
of the model by comparing the values of different
goodness of fit indices. Based on Tables 6 and 9, we can
see that the overall SEM has a good fit with both the
Muslim and non-Muslim groups’ data. Therefore, we
continued to examine the impacts of exogenous variables
on endogenous variables.
Path Analysis
We compared the path coefficients and significance tests
between Muslim and non-Muslim groups (see Tables 7
and 10). These results can be summarized as follows:
The path coefficient of HC to ATT was positive for both
Muslim and non-Muslim groups. We interpreted this to
mean that in both Muslim and non-Muslim groups, HC has
Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions
Pinem RJ 211
a positive effect on ATT. The t-value for the Muslim group
was less than the t-table value of 1.96, and so HC has an
insignificant effect on ATT. However, for the non-Muslim
group the t-value was greater than the t-table value of 1.96,
and so for this group HC has a significant effect on ATT.
The path coefficient value of EK to ATT was positive for
both Muslim and non-Muslim groups. Thus, for both
Muslim and non-Muslim groups EK has a positive effect on
ATT. For the Muslim group the t-value was greater than
1.96, so EK has a significant effect on ATT. For the non-
Muslim group however, the t-value was less than 1.96.
Thus, EK of the non-Muslim group does not have a
significant effect on ATT. The path coefficient value of EL
to ATT is positive for both Muslim and non-Muslim groups.
Thus, for both Muslim and non-Muslim groups, EL has a
positive effect on ATT.
The effect of EL on ATT was significant for the Muslim
group but was not significant for the non-Muslim group.
The path coefficient value of PS to ATT was positive for
both Muslim and non-Muslim groups, and therefore PS
has a positive effect on ATT for both groups. In this case,
the t-value for the Muslim group data was less than 1.96,
while it was greater than 1.94 for the non-Muslim group.
Thus, PS of Muslim respondents does not have a
significant effect on ATT, whereas PS of non-Muslim
respondents does have a significant effect on ATT. R-
squared values showed that health consciousness, eco-
knowledge, eco-labelling, and price sensitivity accounted
for 69.87% of the variations in attitudes toward organic
food for Muslim respondents and about 73.45% of
variation for non-Muslim respondents.
The path coefficient value of HC to PI was positive for both
Muslim and non-Muslim groups, and thus HC of both
Muslim and non-Muslim groups has a positive effect on PI.
The t-value of HC for both the Muslim and non-Muslim
groups was greater than 1.96. Therefore, HC has a
significant effect on the PI of both groups. The path
coefficient value of EK to PI was also positive for both
Muslim and non-Muslim groups, and thus EK has positive
effect on PI for both groups. The EK t-value for both
Muslim and non-Muslim groups was greater than 1.96, and
so the effect of EK on PI is significant for both groups.
The path coefficient value of EL to PI was also positive for
Muslim and non-Muslim groups. Therefore, EL has a
positive effect on PI for both Muslim and non-Muslim
groups. For the Muslim group, the t-value showed that EL
has significant effect on PI, but for the non-Muslim group
the impact of EL on PI was not significant. The path
coefficient value of PS to PI was positive for both groups,
and PS therefore has a positive effect on PI for Muslim and
non-Muslim respondents. The PS t-values showed that it
has a significant effect on PI for both Muslim and non-
Muslim groups. Finally, the path coefficient value of AT to
PI positive for both Muslim and non-Muslim groups,
meaning that that ATT of Muslim and non-Muslim groups
have positive effects on PI. The t-values showed a
significant effect of ATT on PI for both group. R-squared
values showed that health consciousness, eco-
knowledge, eco-labelling, price sensitivity, and attitudes
toward organic food accounted for 81.3% of the variation
in organic food purchase intention for Muslim respondents
and 78.63% of the variation for non-Muslim respondents.
Hypothesis Testing
Hypothesis Predicted effect Confirmed
(Yes/No)
H1a There is a significant relationship between health consciousness and attitudes toward organic
food.
Yes
H1b There is a significant relationship between health consciousness and organic food purchase
intention.
Yes
H1c The relationship between health consciousness and attitudes toward organic food is different
for Muslim and non-Muslim respondents.
Yes
H1d The relationship between health consciousness and organic food purchase intention is different
for Muslim and non-Muslim respondents.
No
H2a There is a significant relationship between eco-knowledge and attitudes toward organic food. Yes
H2b There is a significant relationship between eco-knowledge and organic food purchase intention. Yes
H2c The relationship between eco-knowledge and attitudes toward organic food is different for
Muslim and non-Muslim respondents.
Yes
H2d The relationship between eco-knowledge and organic food purchase intention is different for
Muslim and non-Muslim respondents.
No
H3a There is a significant relationship between eco-labelling and attitudes toward organic food. Yes
H3b There is a significant relationship between eco-labelling and organic food purchase intention. Yes
H3c The relationship between eco-labelling and attitudes toward organic food is different for Muslim
and non-Muslim respondents.
Yes
H3d The relationship between eco-labelling and purchase intention is different for Muslim and non-
Muslim respondents.
Yes
H4a There is a significant relationship between price sensitivity and attitudes toward organic food. Yes
H4b There is a significant relationship between price sensitivity and organic food purchase intention. Yes
Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions
Int. J. Agric. Mark. 212
Hypothesis Testing (continue)
H4c The relationship between price sensitivity and attitudes toward organic food is different for Muslim
and non-Muslim respondents.
Yes
H4d The relationship between price sensitivity and organic food purchase intention is different for
Muslim and non-Muslim respondents.
No
H5a There is a significant relationship between attitudes toward organic food and organic food
purchase intention.
Yes
H5b The relationship between attitudes toward organic food and organic food purchase intention is
different for Muslim and non-Muslim respondents.
No
DISCUSSION
The aim of this study was to analyze the relationships of
Indonesian consumers with organic food. As Indonesia
has the world’s largest Muslim population, we aimed to
understand any specificities of organic food purchase
intention for Muslim consumers. Interestingly, we found
that religion has an effect: the results of the two groups
differed in terms of influence of health consciousness, eco-
knowledge, eco-labelling and price sensitivity on attitudes
toward organic food and organic food purchase intention.
Respondents who are highly health conscious were more
likely to have positive mindset toward organic food and
intentions to purchase organic food. As demonstrated by a
recent finding that health is the main reason for choosing
organic products (Sirieix et al., 2011), consumers are
aware that health is very important and pay attention to the
food they consume. Voon et al. (2011) also noted that
health concerns reflect the growing affluence of Malaysian
consumers. Our findings nmore positive attitudes toward
organic food and greater organic food purchase intention.
The relationship between health consciousness and
attitudes toward organic food was not significant for
Muslim respondents, but it was significant for non-Muslim
respondents. This suggests that an increase in health
consciousness will lead to more positive attitudes toward
organic food. Both groups had significant results in terms
of purchase intention insofar as higher health
consciousness was associated with greater organic food
purchase intention.
Consumers’ knowledge of the benefits of organic food has
significant effects on their intention to purchase it;
consumers who have knowledge about organic food tend
to choose organic rather than conventional food (Voon et
al., 2011). This is in line with our finding that increased
consumer eco-knowledge leads to more positive attitudes
toward organic food and augmented organic food
purchase intention. For Muslim respondents, they have
eco-knowledge and had a significant effect on attitudes
toward organic food, whereas for non-Muslim respondents
the relationship was not significant. Eco-knowledge had a
positive impact on purchase intention for both the Muslim
and non-Muslim groups. Which mean when consumer
have knowledge of organic food will increase their interest
in buying it.
Eco-labelling had a significant influence on both attitudes
toward organic food and organic food purchase intention.
This suggests that consumers see the labels of organic
food as an important differentiator from conventional food.
Eco-labels on organic food are a sign of healthy food. As
Chekima et al. (2015) point out, the most important
implication of this fact for industries selling green products
is that eco-labels can serve as an essential marketing tool
in promoting green consumption among consumers.
Among Muslim respondents, eco-labelling had a
significant impact on attitudes toward organic food and
organic food purchase intention. This means that eco-
labelling can help create positive attitudes toward organic
food and increase intentions to purchase organic food. On
the other hand, among non-Muslim respondents, the
relationship between eco-labelling and a) attitudes toward
organic food, and b) organic food purchase intention, were
not significant. Both groups showed different results and it
is important to promote eco-labelling so that consumers
become familiar with eco-labels as a guarantee that a
product has been produced organically (J. Chen et al.,
2014).
Price sensitivity had a significant influence on attitudes
toward organic food and purchase intention; consumers
know that organic food is more expensive than
conventional food (D'Souza et al., 2006). The Food and
Agriculture Organization (FAO) (2016) explains that
reason that organic food is more expensive than
conventional food is that supply is lower than demand.
Further, post-harvest handling of relatively small quantities
of organic foods results in higher costs due to the
mandatory segregation of organic and conventional
produce during processing and transportation. For the
Muslim group, the relationship between PS and attitudes
toward organic food was not significant, however for the
non-Muslim group this relationship was significant. Non-
Muslim respondents show more understand the price of
organic food is higher than the conventional food and
Muslim respondents otherwise. Although Muslim
respondents showed significant results, the relationship
between price sensitivity and purchase intention was
significant because the continuation of the influence of
attitudes of non-Muslim respondents had a direct influence
on organic food purchase intention.
Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions
Pinem RJ 213
Implications
For companies
Companies should work to educate consumers about the
health and environmental benefits organic food.
Consumers with greater health consciousness, greater
knowledge of organic food and eco-labels. Who
understand the justification for higher organic food price
are more likely to purchase organic food. Companies
should also promote eco-labelling on their products to
enhance consumers’ consideration of purchasing organic
food. In addition, companies should be more aware of
consumers’ feelings that the eco-label is an accurate and
assured sign that increases their consumer desire to
purchase organic food.
For the government
The government should set up a strict regulation on eco-
labeling. The provision of friendly-environmental products
since people believe that the label issued by the
government. Considered as a sign of organic food that
has become one of the consumers’ considerations to
purchase organic food, educate and promoting the eco-
label. The government needs strict regulation about the
accuracy of the eco-label, so it will increase trust among
customers. Price is one of the main determinants of
consumers buying a product; the price of organic food is
more expensive than conventional food. It is necessary for
the company or business to educate the customer. The
price of organic food is more expensive because the cost
of maintenance requires greater cost and effort than
conventional food, but the benefits of organic food are also
greater than conventional food.
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Accepted 21 April 2019
Citation: Pinem RJ (2019). Organic Food Purchase
Intention: Examining the Influence of Religion on
Consumers’ Decisions. International Journal of
Agricultural Marketing 6(2): 206-214.
Copyright: © 2019: Pinem RJ. This is an open-access
article distributed under the terms of the Creative
Commons Attribution License, which permits unrestricted
use, distribution, and reproduction in any medium,
provided the original author and source are cited.

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Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions

  • 1. Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions Robetmi Jumpakita Pinem Lecturer, Department of Business Administration, Universitas Diponegoro, Semarang, Central Java, Indonesia Author’s Email: robetmijumpakita@yahoo.com This study investigates the role of religion in organic food consumption in Indonesia, the country with the world’s largest Muslim population. A central benefit of consuming organic food is its various health benefits produced using green methods. Besides protecting health, organic food is good for the environment. This study investigates health consciousness, eco-knowledge, eco- labelling, and price sensitivity as variables that influence attitudes toward organic food and consumers’ organic food purchase intention. Results are compared between Muslim and non- Muslim in 526 respondents. The major data analysis performed was structural equation modeling using linear structural relations (LISREL) software. This study found that health consciousness, eco-knowledge, eco-labelling, and price sensitivity significantly influence attitudes toward organic food and purchase intention; however, the results differed based on religion. Muslim respondents showed greater concern for the environment such as eco knowledge and eco labelling, while non-Muslims were more concerned with personal issues such as health consciousness and pricing. Keywords: purchase intention, religion, health consciousness, eco-knowledge, eco-labels, price sensitivity, attitude, organic food INTRODUCTION In recent years, the importance of environmental protection and food security incidents around the world have increased consumers’ health awareness and has made organic food a focus of public attention (Hsu, Chang, & Lin, 2016). One of the ways to protect the environment is to increase the use of environmentally friendly products that reduce environmental damage. Currently, one of biggest ways to contribute to this process is to consume organic food. Globally the organic food market has grown rapidly due to increased consumer interest in food consumption, which is an integral part of everyday life (Cabuk, Tanrikulu, & Gelibolu, 2014). Recent food supply crises caused by mad cow disease, melamine-contaminated milk, the Belgian dioxin scandal and concerns about the use of pesticides in agriculture have prompted consumers to lose confidence in the quality of conventional food (Chen, 2009). The Research Institute of Organic Agriculture and the International Federation of Organic Agriculture Movements (IFOAM) (2016) estimated that in 2014, global retail sales of organic food and drink reached 80 billion US Dollars. The purpose of organic farming is to produce healthy and high quality food without using synthetic chemical fertilizers or pesticides (Voon et al., 2011). Therefore, organic food not only protects the environment but also supports consumer health. It further provides significant benefits to the socio-economic status of rural areas. Recently, both consumers and public institutions have demonstrated increased interest in organic foods while consumers’ concerns about food security, human health, and the environment have grown (Bezawada & Pauwels, 2013; Gracia & de Magistris, 2007). Organic foods are thus becoming increasingly popular due to their superior health benefits compared to non-organic foods. Organic food also represents an approach to agriculture and is thus concerned with ecosystem health. Organic farming measures that protect ecosystems, consumer health, and the environment include avoiding artificial pesticides and fertilizers, prioritizing animal welfare, and using only natural additives in food processing (Kriwy & Mecking, 2012). Many factors influence a consumer’s decision to purchase Research Article Vol. 6(2), pp. 206-214, May, 2019. © www.premierpublishers.org. ISSN: 2167-0470 International Journal of Agricultural Marketing
  • 2. Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions Pinem RJ 207 an organic food product, including important purchasing criteria for target foods such as taste, health, and quality (Magnusson, Arvola, Koivisto Hursti, Åberg, & Sjödén, 2001). In this study, we focus on health consciousness, eco-knowledge, eco-labelling, price sensitivity, and attitudes. Consumers’ health consciousness is an important factor because organic food is believed to be healthier than conventional food (Kriwy & Mecking, 2012; Lockie, Lyons, Lawrence, & Mummery, 2002). In addition, some scholars have reported that greater awareness of, and knowledge about organic foods have a positive effect on consumer attitudes and consumption (Aertsens, Mondelaers, Verbeke, Buysse, & Van Huylenbroeck, 2011; Wahid, Rahbar, & Shyan, 2011). By providing information on a product’s environmentally friendly attributes, eco-labels distinguish organic products from others and create an advantage for manufacturers who target consumers who care about the environment (Brouhle & Khanna, 2012). Despite many studies indicating strong consumer support for labelling information, uncertainty remains with respect to how labels influence consumers and how well consumers understand product label information (D'Souza, Taghian, & Lamb, 2006). Previous studies have found that the price of organic food is higher than that of conventional food. The high cost of organic food can present a challenge for consumers who want to buy organic food. Organic consumers cannot change options as easily as non-organic consumers, as many stores sell conventional food, but few specialize in organic products (Kriwy & Mecking, 2012). According Cabuk et al. (2014) attitudes variable play an important role in organic food purchasing: they have a direct impact on purchase intention and an indirect effect as mediator of how health consciousness influences purchase intention. Many previous studies have shown mixed results regarding the factors driving organic food consumption; more detailed studies are needed in order to more fully understand how attitudes toward organic food mediate organic food consumption (Ajzen, 1991; Cabuk et al., 2014; Cheah & Phau, 2011). In 2001, the Indonesian government launched the Go Organic 2010 program with the goal of become one of the world's leading organic food producers. The program consists of developing public education about organic food, human resources, and regulations in addition to creating technical assistance facilities, certification facilities, and conducting market promotion (Ditjen BPPHP Deptan, 2005). According to World Bank (2016), Indonesia with a population of 261 million, has the fourth largest population in the world and the world’s largest Muslim population. This study focuses on the differences Muslim and non-Muslim respondents in terms of health consciousness, eco-knowledge, eco-labels, price sensitivity toward attitudes and toward purchase intention on organic food. LITERATURE REVIEW Health Consciousness Health consciousness relates to consumers’ understanding of changes in their health status and the degree of emphasis a healthy lifestyle. Consumers interviewed in previous studies agree that organic foods are healthier, have higher levels of vitamins and minerals, have lower pesticide residues and do more to address pollution and environmental damage (Gracia & de Magistris, 2007; Hsu et al., 2016; Padel & Foster, 2005). The mostly commonly cited reason for choosing organic foods is health issues (Padel & Foster, 2005; Sirieix, Kledal, & Sulitang, 2011; Tung, Shih, Wei, & Chen, 2012). In addition to the results of previous research, we suggest that highly health conscious individuals will prefer organic foods over conventional foods that may contain pesticides or chemical fertilizers. Therefore, we expect that consumers with high health consciousness will have positive attitudes towards, and a desire to buy, organic food. We also expect to find differences in health consciousness between Muslim and non-Muslim consumers, Muslim concern more about food because religion reason. In light of these expectations, we propose the following hypotheses: H1a: There will be a significant positive relationship between health consciousness and attitudes toward organic food. H1b: There will be a significant positive relationship between health consciousness and organic food purchase intention. H1c: The strength of the relationship between health consciousness and attitudes towards organic food will be different for Muslim and non-Muslim respondents. H1d: The strength of the relationship between health consciousness and organic food purchase intention will be different for Muslim and non-Muslim respondents. Eco-knowledge Eco-knowledge refers to an individual’s knowledge of the effects of a product on the environment, and specifically to the process of evaluating products’ features and benefits in an environmental context (Akbar, Hassan, Khurshid, Niaz, & Rizwan, 2014). People who have greater eco- knowledge will be more worried about environmental damage and will be more willing to purchase organic food. Eco-knowledge is an important factor in understanding consumers who intend to purchase organic food, as it represents a situation where consumers consider the benefits of a purchase for both themselves and the environment (Saleki, 2012). Recent literature has shown that there is a positive relationship between eco-knowledge and green product
  • 3. Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions Int. J. Agric. Mark. 208 purchase intention (Akbar et al., 2014; Chan & Lau, 2000; Gracia & de Magistris, 2007; Noor et al., 2012; Saleki, 2012). Further, consumers with high-level of organic food knowledge are more willing to purchase organic food (Gracia & de Magistris, 2007; Wahid et al., 2011). We also expect to find different results for Muslim and non-Muslim consumers based on different levels of eco-knowledge because Muslim care more about food because religion reason, Muslim cannot eat all food and organic food is one of option. Therefore, we put forward the following hypotheses: H2a: There will be a significant positive relationship between eco-knowledge and attitudes toward organic food. H2b: There will be a significant positive relationship between eco-knowledge and organic food purchase intention. H2c: The strength of the relationship between eco- knowledge and attitudes toward organic food will be different for Muslim and non-Muslim respondents. H2d: The strength of the relationship between eco- knowledge and organic food purchase intention will be different for Muslim and non-Muslim respondents. Ecological labelling The use of ecological labels (eco-labels) is a good way to address environmental concerns because they are produced in an environmentally friendly way (Ben Youssef & Lahmandi-Ayed, 2008; Bleda & Valente, 2009). Eco- labeling provides consumers with information—a kind of expanded product quality and service assessment—by indicating the product’s environmental attributes (Bratt, Hallstedt, Robert, Broman, & Oldmark, 2011). Given that a relatively large number of consumers always read labels and consider the information provided to be accurate, D'Souza et al. (2006) argued that eco-labelling is an important way of communicating products’ environmental justifications to consumers. Chekima (2015) went further and strongly suggested that green product manufacturers immediately place eco-labels on their product packaging. Eco-labelling has a strong influence on organic product purchase intention and is a vital marketing tool for helping consumers identify green product (Chekima, 2015; D'Souza et al., 2006; Grankvist & Biel, 2001). We also investigated the differences between Muslim and non- Muslim consumers. Therefore, we propose the following hypotheses: H3a: There will be a significant positive relationship between eco-labeling and attitudes toward organic food. H3b: There will be a significant positive relationship between eco-labelling and organic food purchase intention. H3c: The strength of the relationship between eco- labelling and attitudes toward organic food will be different for Muslim and Non-Muslim respondents. H3d: The strength of the relationship between eco-labeling and organic food purchase intention will be different for Muslim and Non-Muslim respondents. Price sensitivity Price is also an important factor in determining consumer purchasing behavior (Han, Gupta, & Lehmann, 2001). Price sensitive customers are advised to read eco-labels, but their satisfaction with the information provided may be determined by what they are willing to pay (D'Souza et al., 2006). Consumers who feel the price of organic food is justified will have positive attitudes towards, and increased rates of purchasing it (Saleki, 2012). We will also compare the price sensitivity of Muslim and non-Muslim consumers to find which group more price sensitivity as one of key to decide price of organic food. Therefore, based on previous research, we hypothesize that: H4a: There will be a significant positive relationship between price sensitivity and attitudes toward organic food. H4b: There will be a significant positive relationship between price sensitivity and organic food purchase intention. H4c: The strength of the relationship between price sensitivity and attitudes toward organic food will be different for Muslim and non-Muslim respondents. H4d: The strength of the relationship between price sensitivity and organic food purchase intention will be different for Muslim and non-Muslim respondents. Outlook Outlook refers to an individual’s evaluation of behaviors as good or bad (Irianto, 2015). In line with the Theory of Planned Behavior (TPB) assertion that attitude towards a behavior predicts behavioral intention (Ajzen, 1991). Several studies have shown that there is a significant positive relationship between attitudes toward, and desire to purchase, organic foods (Cabuk et al., 2014; Cheah & Phau, 2011; Chen, Lobo, & Rajendran, 2014; Irianto, 2015; Magnusson et al., 2001; Tarkiainen & Sundqvist, 2005). Based on the results of previous research, we expect that Outlook will mediate the relationships that health consciousness, eco-knowledge, eco-labelling, and price sensitivity have with organic food purchase intention. We also expect that Muslim and non-Muslim consumers will have different attitudes toward organic food. Therefore, we make the following hypotheses:
  • 4. Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions Pinem RJ 209 H5a: There will be a significant relationship between attitude towards organic food and organic food purchase intention. H5b: The strength of the relationship between attitude towards organic food and organic food purchase intention will be different for Muslim and non-Muslim respondents. METHODOLOGY Sampling The questionnaire was made in English and translated into Indonesian. To maintain the accuracy of translation results and easy to understand then tested a questionnaire to some respondents, providing feedback and revisions to maintain the accuracy and make it easy to understand the questionnaire to be used. The final questionnaire was distributed online. In total, data was collected from 526 respondents, of which 273 identified as Muslim and 253 identified as non-Muslim, first step we asked their religion before fill the quesyionnaire. Respondents were of various genders, ages, religions, income levels, education levels, and marital status Instrument All items were measured using a seven-point Likert scale (1 = strongly disagree; 7 = strongly agree). Our questionnaire was adapted from previous papers and included a total of 33 items. For health consciousness, six items (α = 0.831) were chosen from Hong (2015) (e.g., “I avoid foods containing nitrites or preservatives”). For eco- knowledge, four items (α = 0.788) were chosen from Akbar et al. (2014) (e.g., “Ecological knowledge has an influence on green purchasing behavior”). For eco-labelling, we used six items (α = 0,793). Four were adapted from Nguyen et al. (2010) and two were adapted from Kong et al. (2014) (e.g., “I consider what is printed on eco-labels to be accurate”). For price sensitivity, four items (α = 0.795) were chosen from Goldsmith et al. (2010) (e.g., “I know that organic food is likely to be more expensive than conventional food, but that doesn’t matter to me”). For attitude toward organic food, seven items (α = 0.823) were chosen from Khan and Azam (2016) (e.g., “I think that we all should purchase eco-labelled products”). Finally, for purchase intention, we used six items (α = 0.875). Four were adapted from Akbar et al. (2014) and two were taken from Wee et al. (2014) (e.g., “I intend to buy organic food”). Convergent Validity The aim of validity and reliability testing is to determine whether the chosen indicator variables are significant in terms of reflecting the construct or latent variables (convergent validity). We tested convergent validity by calculating standardized loading factor (SLF), construct reliability (CR) and average variance extracted (AVE) values. Good convergent validity is indicated by high SLF values: specifically, Hair (2010: 678) suggested a value of SLF ≥ 0.5. CR is another determinant indicator that indicates whether or not there is convergent validity. Hair (2010: 679) proposed that a value of CR ≥ 0.7 indicates good reliability and that CR values between 0.6 and 0.7 indicate acceptable reliability. He noted that indicator variables show good validity. CR is calculated using the following formula: 𝐶𝑅 = (∑ 𝑆𝐿𝐹𝑖 𝑛 𝑖=1 )2 (∑ 𝑆𝐿𝐹𝑖 𝑛 𝑖=1 )2 + (∑ 𝑒𝑖 𝑛 𝑖=1 ) . CR indicates composite reliability, SLF is the standardized factor loading and ei is the variance due to measurement error (Hair, 2010: 679). Hair (2010: 679) states that an AVE value of AVE ≥ 0.5 indicates adequate convergence. The AVE measure is calculated using the following formula: 𝐴𝑉𝐸 = ∑ 𝑆𝐿𝐹𝑖 2𝑛 𝑖=1 ∑ 𝑆𝐿𝐹𝑖 2𝑛 𝑖=1 + ∑ 𝑒𝑖 𝑛 𝑖=1 . SLF is the standardized factor loading and n is the number of items. Data Analysis For this study, data analysis was carried out in three steps using SPSS 21 and LISREL software. First, SPSS 21 was used to describe the distribution of respondents based on demographic characteristics such as gender, age, religion, income, education level and marital status (see Table 1). Second, we carried out structural equation modeling (SEM) using LISREL software. The scope of our measurement model included validity and reliability tests. For the structural model we tested the significance of the influence of independent variables on dependent variables across all data. Third, the data was divided into two groups: Muslim and non-Muslim respondents. We analyzed each group and compared the results. Based on the results of all combined data, health consciousness, eco-knowledge, eco-labelling and price sensitivity all have a significant positive relationship with attitudes toward organic food and organic food purchase intention. We divided into Muslim and non-Muslim groups, analyzed each, and compared the results for each variable RESULTS Demography Female respondents were 270 respondents (51.3%) and not significantly different male respondents 256 (48.7%). Age of respondents dominant 21-30 years old i.e. 435 respondents (82.7%). Educational respondents dominant master degree i.e. 235 respondents (44.7) and bachelor degree 226 (43%). Revenue of dominant respondents
  • 5. Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions Int. J. Agric. Mark. 210 below Rp. 4,000,000 i.e., 346 respondents (65.8%). Muslim respondents were 273 respondents (51.9%) and the rest of non-Muslims were 253 respondents (48.1%). Marital status of respondent’s dominant single 448 respondents (85.2%). Factor Loading and Convergent Validity The results of factor loading and convergent validity tests are shown in Table 2. The SLF value of each indicator was greater than 0.5, which means that all indicators had a sufficient and strong ability to explain the latent constructs (Hair et al, 2010) and that, good convergent validity was achieved. For AVE, we found the following values: health consciousness (HC) = 0.8765, eco-knowledge (EK) = 0.8568, eco-labelling (EL) = 0.8361, price sensitivity (PS) = 0.8299, attitude (ATT) = 0.796 and purchase intention (PI) = 0.869. As all values were greater than 0.5, the data also have good convergent validity based on AVE values. The CR values were as follows: HC = 0.9771, EK = 0.9599, EL = 0.9684, PS = 0.9512, ATT = 0.9647, and PI = 0.9755. All values were greater than 0.7, which means the data satisfied the requirements for good convergent validity based on CR size. Structural model assessment of fit First, SEM was used to test the suitability of our model and then regression coefficients were calculated to measure the impact of variables. We evaluated the suitability of the model by comparing the values of various fit indices. As shown in Table 3, overall the SEM model has a good fit with the sample data. We therefore continued to the next step of testing. Path Analysis After testing the suitability of the model, we tested our hypotheses using the structural model. Table 4 shows the results of coefficient and t-tests, which estimate the significance of the relationships between latent variables. These results can be summarized as follows: The path coefficient value of HC to ATT is 0.2734. This shows that HC has a positive effect on ATT. Given that the t value 5.6472 > t table 1.96, HC also has a significant effect on ATT. The path coefficient value of EK to ATT is 0.1454, and thus EK has a positive effect on ATT. The t value of 3.1076 (> t table 1.96) means that the effect of EK on ATT is also significant. The path coefficient value of EL to ATT is 0.1997, and thus EL has a positive effect on ATT. The t value of 4.3548 (> t table 1.96) means that the effect of EL on ATT is also significant. The path coefficient value of PS to ATT is 0.3116, and thus PS has a positive effect on ATT. The t value of 6.7878 (> t table 1.96) means than the effect of PS on ATT is also significant. The R-squared value showed that health consciousness, eco-knowledge, eco-labelling, and price sensitivity accounted for 68.7% of the variation in attitudes toward organic food. The value of the path coefficient from HC to PI is 0.2262, which shows that HC has a positive effect on PI. The t value of 5.5461 (> t table 1.96) shows that the effect of HC on PI is also significant. The path coefficient value from EK to PI is 0.2185, which shows that EK has a positive effect on PI. The t value of 3.6560 (> t table 1.96) shows that the effect of EK on PI is also significant. The path coefficient value from EL to PI is 0.1387, which shows that EL has a positive effect on PI. The t value of 3.6456 (> t table 1.96) shows that the effect of EL on PI is also significant. The path coefficient value of PS to PI is 0.2327, meaning that that PS has a positive effect on PI. The t value of 5.8808 (> t table 1.96) means that the effect of PS on PI is also significant. The path coefficient value of ATT to PI is 0.2675, meaning that ATT has positive effect on PI. The t value of 6.4847 (> t table 1.96) means that the effect of ATT of PI is also significant. The R-squared value showed that health consciousness, eco-knowledge, eco-labelling, and price sensitivity accounted for 79.59% of the variation in purchase intention. Comparison of Muslim and non-Muslim groups Factor Loading and Convergent Validity The results of factor loading and convergent validity tests for the data from Muslim and non-Muslim respondents are shown in Tables 5 and 8. The data for both Muslim and non-Muslim groups had good convergent validity as measured by SLF, AVE and CR values. The SLF values of each indicator were greater than 0.5, meaning that the indicators had sufficient validity to explain the latent constructs. For AVE, both groups’ data also had values greater than 0.5, which means the data had good convergent validity. Finally, the CR values for both Muslim and non-Muslim groups were greater than 0.7, meaning that the data had good convergent validity. Structural model assessment of fit We tested the full SEM to examine its suitability and used regression coefficients to assess the significance of causality between variables. We evaluated the suitability of the model by comparing the values of different goodness of fit indices. Based on Tables 6 and 9, we can see that the overall SEM has a good fit with both the Muslim and non-Muslim groups’ data. Therefore, we continued to examine the impacts of exogenous variables on endogenous variables. Path Analysis We compared the path coefficients and significance tests between Muslim and non-Muslim groups (see Tables 7 and 10). These results can be summarized as follows: The path coefficient of HC to ATT was positive for both Muslim and non-Muslim groups. We interpreted this to mean that in both Muslim and non-Muslim groups, HC has
  • 6. Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions Pinem RJ 211 a positive effect on ATT. The t-value for the Muslim group was less than the t-table value of 1.96, and so HC has an insignificant effect on ATT. However, for the non-Muslim group the t-value was greater than the t-table value of 1.96, and so for this group HC has a significant effect on ATT. The path coefficient value of EK to ATT was positive for both Muslim and non-Muslim groups. Thus, for both Muslim and non-Muslim groups EK has a positive effect on ATT. For the Muslim group the t-value was greater than 1.96, so EK has a significant effect on ATT. For the non- Muslim group however, the t-value was less than 1.96. Thus, EK of the non-Muslim group does not have a significant effect on ATT. The path coefficient value of EL to ATT is positive for both Muslim and non-Muslim groups. Thus, for both Muslim and non-Muslim groups, EL has a positive effect on ATT. The effect of EL on ATT was significant for the Muslim group but was not significant for the non-Muslim group. The path coefficient value of PS to ATT was positive for both Muslim and non-Muslim groups, and therefore PS has a positive effect on ATT for both groups. In this case, the t-value for the Muslim group data was less than 1.96, while it was greater than 1.94 for the non-Muslim group. Thus, PS of Muslim respondents does not have a significant effect on ATT, whereas PS of non-Muslim respondents does have a significant effect on ATT. R- squared values showed that health consciousness, eco- knowledge, eco-labelling, and price sensitivity accounted for 69.87% of the variations in attitudes toward organic food for Muslim respondents and about 73.45% of variation for non-Muslim respondents. The path coefficient value of HC to PI was positive for both Muslim and non-Muslim groups, and thus HC of both Muslim and non-Muslim groups has a positive effect on PI. The t-value of HC for both the Muslim and non-Muslim groups was greater than 1.96. Therefore, HC has a significant effect on the PI of both groups. The path coefficient value of EK to PI was also positive for both Muslim and non-Muslim groups, and thus EK has positive effect on PI for both groups. The EK t-value for both Muslim and non-Muslim groups was greater than 1.96, and so the effect of EK on PI is significant for both groups. The path coefficient value of EL to PI was also positive for Muslim and non-Muslim groups. Therefore, EL has a positive effect on PI for both Muslim and non-Muslim groups. For the Muslim group, the t-value showed that EL has significant effect on PI, but for the non-Muslim group the impact of EL on PI was not significant. The path coefficient value of PS to PI was positive for both groups, and PS therefore has a positive effect on PI for Muslim and non-Muslim respondents. The PS t-values showed that it has a significant effect on PI for both Muslim and non- Muslim groups. Finally, the path coefficient value of AT to PI positive for both Muslim and non-Muslim groups, meaning that that ATT of Muslim and non-Muslim groups have positive effects on PI. The t-values showed a significant effect of ATT on PI for both group. R-squared values showed that health consciousness, eco- knowledge, eco-labelling, price sensitivity, and attitudes toward organic food accounted for 81.3% of the variation in organic food purchase intention for Muslim respondents and 78.63% of the variation for non-Muslim respondents. Hypothesis Testing Hypothesis Predicted effect Confirmed (Yes/No) H1a There is a significant relationship between health consciousness and attitudes toward organic food. Yes H1b There is a significant relationship between health consciousness and organic food purchase intention. Yes H1c The relationship between health consciousness and attitudes toward organic food is different for Muslim and non-Muslim respondents. Yes H1d The relationship between health consciousness and organic food purchase intention is different for Muslim and non-Muslim respondents. No H2a There is a significant relationship between eco-knowledge and attitudes toward organic food. Yes H2b There is a significant relationship between eco-knowledge and organic food purchase intention. Yes H2c The relationship between eco-knowledge and attitudes toward organic food is different for Muslim and non-Muslim respondents. Yes H2d The relationship between eco-knowledge and organic food purchase intention is different for Muslim and non-Muslim respondents. No H3a There is a significant relationship between eco-labelling and attitudes toward organic food. Yes H3b There is a significant relationship between eco-labelling and organic food purchase intention. Yes H3c The relationship between eco-labelling and attitudes toward organic food is different for Muslim and non-Muslim respondents. Yes H3d The relationship between eco-labelling and purchase intention is different for Muslim and non- Muslim respondents. Yes H4a There is a significant relationship between price sensitivity and attitudes toward organic food. Yes H4b There is a significant relationship between price sensitivity and organic food purchase intention. Yes
  • 7. Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions Int. J. Agric. Mark. 212 Hypothesis Testing (continue) H4c The relationship between price sensitivity and attitudes toward organic food is different for Muslim and non-Muslim respondents. Yes H4d The relationship between price sensitivity and organic food purchase intention is different for Muslim and non-Muslim respondents. No H5a There is a significant relationship between attitudes toward organic food and organic food purchase intention. Yes H5b The relationship between attitudes toward organic food and organic food purchase intention is different for Muslim and non-Muslim respondents. No DISCUSSION The aim of this study was to analyze the relationships of Indonesian consumers with organic food. As Indonesia has the world’s largest Muslim population, we aimed to understand any specificities of organic food purchase intention for Muslim consumers. Interestingly, we found that religion has an effect: the results of the two groups differed in terms of influence of health consciousness, eco- knowledge, eco-labelling and price sensitivity on attitudes toward organic food and organic food purchase intention. Respondents who are highly health conscious were more likely to have positive mindset toward organic food and intentions to purchase organic food. As demonstrated by a recent finding that health is the main reason for choosing organic products (Sirieix et al., 2011), consumers are aware that health is very important and pay attention to the food they consume. Voon et al. (2011) also noted that health concerns reflect the growing affluence of Malaysian consumers. Our findings nmore positive attitudes toward organic food and greater organic food purchase intention. The relationship between health consciousness and attitudes toward organic food was not significant for Muslim respondents, but it was significant for non-Muslim respondents. This suggests that an increase in health consciousness will lead to more positive attitudes toward organic food. Both groups had significant results in terms of purchase intention insofar as higher health consciousness was associated with greater organic food purchase intention. Consumers’ knowledge of the benefits of organic food has significant effects on their intention to purchase it; consumers who have knowledge about organic food tend to choose organic rather than conventional food (Voon et al., 2011). This is in line with our finding that increased consumer eco-knowledge leads to more positive attitudes toward organic food and augmented organic food purchase intention. For Muslim respondents, they have eco-knowledge and had a significant effect on attitudes toward organic food, whereas for non-Muslim respondents the relationship was not significant. Eco-knowledge had a positive impact on purchase intention for both the Muslim and non-Muslim groups. Which mean when consumer have knowledge of organic food will increase their interest in buying it. Eco-labelling had a significant influence on both attitudes toward organic food and organic food purchase intention. This suggests that consumers see the labels of organic food as an important differentiator from conventional food. Eco-labels on organic food are a sign of healthy food. As Chekima et al. (2015) point out, the most important implication of this fact for industries selling green products is that eco-labels can serve as an essential marketing tool in promoting green consumption among consumers. Among Muslim respondents, eco-labelling had a significant impact on attitudes toward organic food and organic food purchase intention. This means that eco- labelling can help create positive attitudes toward organic food and increase intentions to purchase organic food. On the other hand, among non-Muslim respondents, the relationship between eco-labelling and a) attitudes toward organic food, and b) organic food purchase intention, were not significant. Both groups showed different results and it is important to promote eco-labelling so that consumers become familiar with eco-labels as a guarantee that a product has been produced organically (J. Chen et al., 2014). Price sensitivity had a significant influence on attitudes toward organic food and purchase intention; consumers know that organic food is more expensive than conventional food (D'Souza et al., 2006). The Food and Agriculture Organization (FAO) (2016) explains that reason that organic food is more expensive than conventional food is that supply is lower than demand. Further, post-harvest handling of relatively small quantities of organic foods results in higher costs due to the mandatory segregation of organic and conventional produce during processing and transportation. For the Muslim group, the relationship between PS and attitudes toward organic food was not significant, however for the non-Muslim group this relationship was significant. Non- Muslim respondents show more understand the price of organic food is higher than the conventional food and Muslim respondents otherwise. Although Muslim respondents showed significant results, the relationship between price sensitivity and purchase intention was significant because the continuation of the influence of attitudes of non-Muslim respondents had a direct influence on organic food purchase intention.
  • 8. Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions Pinem RJ 213 Implications For companies Companies should work to educate consumers about the health and environmental benefits organic food. Consumers with greater health consciousness, greater knowledge of organic food and eco-labels. Who understand the justification for higher organic food price are more likely to purchase organic food. Companies should also promote eco-labelling on their products to enhance consumers’ consideration of purchasing organic food. In addition, companies should be more aware of consumers’ feelings that the eco-label is an accurate and assured sign that increases their consumer desire to purchase organic food. For the government The government should set up a strict regulation on eco- labeling. The provision of friendly-environmental products since people believe that the label issued by the government. Considered as a sign of organic food that has become one of the consumers’ considerations to purchase organic food, educate and promoting the eco- label. The government needs strict regulation about the accuracy of the eco-label, so it will increase trust among customers. Price is one of the main determinants of consumers buying a product; the price of organic food is more expensive than conventional food. It is necessary for the company or business to educate the customer. The price of organic food is more expensive because the cost of maintenance requires greater cost and effort than conventional food, but the benefits of organic food are also greater than conventional food. 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