The Role of Retailer Trust and Word of Mouth in Buying Organic Foods in an Emerging Market

ABSTRACT

This study has twin objectives. Firstly, it explores the antecedents of retailer’s trust and its effect on organic food purchase intention. Secondly, it explores the relationship between word of mouth and retailers trust and the effect of word of mouth (WOM) in organic food purchase intention in the context of a developing economy. Cluster sampling method combined with judgement was used for survey in India. 541 usable questionnaires were analyzed. Findings indicated that Trust in retailer develops on the basis of perceived food quality, perceived service quality and perceived fairness in price. Perceived fairness in price is more important for building trust followed by perceived service quality. Both trust and WOM lead to purchase intention of organic foods. Among the two predictors of purchase intention, trust in retailer emerged as a bigger explanatory variable as compared to WOM. The current study adds word of mouth as a significant antecedent in developing purchase intention for organic foods along with the role of retailer trust. Implications for managers and researchers are emphasised.     

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Integrating Multiple Factors Affecting Consumer Behavior Toward Organic Foods: The Role of Healthism,Hedonism, and Trust in Consumer Purchase Intentions of Organic Foods

Consumer awareness about organic foods has been growing. However, this trend is not always translated to consumer organic food purchases. It is argued that when it comes to assessing organics, one should expect consumers to use multiattribute evaluations due to credence attributes and organic standards that organic foods need to adhere to. A thorough review of the existing literature on consumer buying behavior of organic foods identifies healthism, hedonism, and trust among some factors that enhance consumer experiences with organic foods and therefore can affect their purchase intentions. This article is one the few studies that integrated multiple factors in one research framework to empirically evaluate their role in explaining consumer purchase intentions of organic foods. Results from a demographically representative sample completed by an online survey in Australia (N = 1011) provides support for the research hypotheses by revealing positive and statistically significant effects of healthism, hedonism, and trust on consumer purchase intentions. The study concludes with implications and suggestions for future research.