Organic Economic Market: Determinents of Consumer Behaviour towards Organic Products using Structured Equation Modelling Approach

Abstract

Background: Over time, there has been a notable rise in consumer interest in organic food, leading to a generally favourable outlook on organic food products. This trend is largely fuelled by the widespread belief among consumers that organic foods offer greater nutritional value and are healthier than their non-organic counterparts. The Indian organic food market is still nascent but is undergoing rapid expansion. Therefore, this paper aims to explore and analyse the factors motivating consumer behavior toward the purchase of organic products among urban consumers in Himachal Pradesh, recognizing the significance of this emerging market segment. Statistical Approach: Structured Equation Modelling SEM technique was used to find the factors which could explain the preference among consumers to buy the organic products. Findings: This study reveals that consumers show a preference for purchasing organic products, influenced by various factors such as health consciousness, environmental concerns, subjective norms, price concerns, personal norms, lifestyle updation, impact of Covid 19 pandemic, as well as availability and accessibility. Study Implications: This study uncovers the factors that shape consumer preferences for organic food, providing marketers with valuable insights to craft a targeted marketing mix. The insights gleaned from this research can be incorporated into diverse marketing strategies, allowing marketers to effectively address the varied factors influencing consumer preferences across different segments of Indian society.