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International Journal of Agricultural Marketing

Vol. 6(2), pp. 206-214, May, 2019. © www.premierpublishers.org. ISSN: 2167-0470

Research Article

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 The purpose of organic farming is to produce healthy and
protection and food security incidents around the world high quality food without using synthetic chemical
have increased consumers’ health awareness and has fertilizers or pesticides (Voon et al., 2011). Therefore,
made organic food a focus of public attention (Hsu, Chang, organic food not only protects the environment but also
& Lin, 2016). One of the ways to protect the environment supports consumer health. It further provides significant
is to increase the use of environmentally friendly products benefits to the socio-economic status of rural areas.
that reduce environmental damage. Currently, one of Recently, both consumers and public institutions have
biggest ways to contribute to this process is to consume demonstrated increased interest in organic foods while
organic food. Globally the organic food market has grown consumers’ concerns about food security, human health,
rapidly due to increased consumer interest in food and the environment have grown (Bezawada & Pauwels,
consumption, which is an integral part of everyday life 2013; Gracia & de Magistris, 2007). Organic foods are thus
(Cabuk, Tanrikulu, & Gelibolu, 2014). becoming increasingly popular due to their superior health
benefits compared to non-organic foods. Organic food also
Recent food supply crises caused by mad cow disease, represents an approach to agriculture and is thus
melamine-contaminated milk, the Belgian dioxin scandal concerned with ecosystem health. Organic farming
and concerns about the use of pesticides in agriculture measures that protect ecosystems, consumer health, and
have prompted consumers to lose confidence in the quality the environment include avoiding artificial pesticides and
of conventional food (Chen, 2009). The Research Institute fertilizers, prioritizing animal welfare, and using only
of Organic Agriculture and the International Federation of natural additives in food processing (Kriwy & Mecking,
Organic Agriculture Movements (IFOAM) (2016) estimated 2012).
that in 2014, global retail sales of organic food and drink
reached 80 billion US Dollars. Many factors influence a consumer’s decision to purchase

Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions
Pinem RJ 207

an organic food product, including important purchasing LITERATURE REVIEW


criteria for target foods such as taste, health, and quality
(Magnusson, Arvola, Koivisto Hursti, Åberg, & Sjödén, Health Consciousness
2001). In this study, we focus on health consciousness,
eco-knowledge, eco-labelling, price sensitivity, and Health consciousness relates to consumers’
attitudes. Consumers’ health consciousness is an understanding of changes in their health status and the
important factor because organic food is believed to be degree of emphasis a healthy lifestyle. Consumers
healthier than conventional food (Kriwy & Mecking, 2012; interviewed in previous studies agree that organic foods
Lockie, Lyons, Lawrence, & Mummery, 2002). In addition, are healthier, have higher levels of vitamins and minerals,
some scholars have reported that greater awareness of, have lower pesticide residues and do more to address
and knowledge about organic foods have a positive effect pollution and environmental damage (Gracia & de
on consumer attitudes and consumption (Aertsens, Magistris, 2007; Hsu et al., 2016; Padel & Foster, 2005).
Mondelaers, Verbeke, Buysse, & Van Huylenbroeck, The mostly commonly cited reason for choosing organic
2011; Wahid, Rahbar, & Shyan, 2011). foods is health issues (Padel & Foster, 2005; Sirieix,
Kledal, & Sulitang, 2011; Tung, Shih, Wei, & Chen, 2012).
By providing information on a product’s environmentally In addition to the results of previous research, we suggest
friendly attributes, eco-labels distinguish organic products that highly health conscious individuals will prefer organic
from others and create an advantage for manufacturers foods over conventional foods that may contain pesticides
who target consumers who care about the environment or chemical fertilizers. Therefore, we expect that
(Brouhle & Khanna, 2012). Despite many studies consumers with high health consciousness will have
indicating strong consumer support for labelling positive attitudes towards, and a desire to buy, organic
information, uncertainty remains with respect to how labels food. We also expect to find differences in health
influence consumers and how well consumers understand consciousness between Muslim and non-Muslim
product label information (D'Souza, Taghian, & Lamb, consumers, Muslim concern more about food because
2006). religion reason. In light of these expectations, we propose
Previous studies have found that the price of organic food the following hypotheses:
is higher than that of conventional food. The high cost of
organic food can present a challenge for consumers who H1a: There will be a significant positive relationship
want to buy organic food. Organic consumers cannot between health consciousness and attitudes toward
change options as easily as non-organic consumers, as organic food.
many stores sell conventional food, but few specialize in H1b: There will be a significant positive relationship
organic products (Kriwy & Mecking, 2012). between health consciousness and organic food purchase
intention.
According Cabuk et al. (2014) attitudes variable play an
important role in organic food purchasing: they have a H1c: The strength of the relationship between health
direct impact on purchase intention and an indirect effect consciousness and attitudes towards organic food will be
as mediator of how health consciousness influences different for Muslim and non-Muslim respondents.
purchase intention. Many previous studies have shown
mixed results regarding the factors driving organic food H1d: The strength of the relationship between health
consumption; more detailed studies are needed in order to consciousness and organic food purchase intention will be
more fully understand how attitudes toward organic food different for Muslim and non-Muslim respondents.
mediate organic food consumption (Ajzen, 1991; Cabuk et
al., 2014; Cheah & Phau, 2011). Eco-knowledge
Eco-knowledge refers to an individual’s knowledge of the
In 2001, the Indonesian government launched the Go
effects of a product on the environment, and specifically to
Organic 2010 program with the goal of become one of the
the process of evaluating products’ features and benefits
world's leading organic food producers. The program
in an environmental context (Akbar, Hassan, Khurshid,
consists of developing public education about organic
Niaz, & Rizwan, 2014). People who have greater eco-
food, human resources, and regulations in addition to
knowledge will be more worried about environmental
creating technical assistance facilities, certification
damage and will be more willing to purchase organic food.
facilities, and conducting market promotion (Ditjen BPPHP
Eco-knowledge is an important factor in understanding
Deptan, 2005). According to World Bank (2016), Indonesia
consumers who intend to purchase organic food, as it
with a population of 261 million, has the fourth largest
represents a situation where consumers consider the
population in the world and the world’s largest Muslim
benefits of a purchase for both themselves and the
population. This study focuses on the differences Muslim
environment (Saleki, 2012).
and non-Muslim respondents in terms of health
consciousness, eco-knowledge, eco-labels, price
Recent literature has shown that there is a positive
sensitivity toward attitudes and toward purchase intention
relationship between eco-knowledge and green product
on organic food.
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; H3c: The strength of the relationship between eco-
Gracia & de Magistris, 2007; Noor et al., 2012; Saleki, labelling and attitudes toward organic food will be different
2012). Further, consumers with high-level of organic food for Muslim and Non-Muslim respondents.
knowledge are more willing to purchase organic food
(Gracia & de Magistris, 2007; Wahid et al., 2011). We also H3d: The strength of the relationship between eco-labeling
expect to find different results for Muslim and non-Muslim and organic food purchase intention will be different for
consumers based on different levels of eco-knowledge Muslim and Non-Muslim respondents.
because Muslim care more about food because religion
reason, Muslim cannot eat all food and organic food is one Price sensitivity
of option. Therefore, we put forward the following
hypotheses: Price is also an important factor in determining consumer
purchasing behavior (Han, Gupta, & Lehmann, 2001).
H2a: There will be a significant positive relationship Price sensitive customers are advised to read eco-labels,
between eco-knowledge and attitudes toward organic but their satisfaction with the information provided may be
food. determined by what they are willing to pay (D'Souza et al.,
2006). Consumers who feel the price of organic food is
H2b: There will be a significant positive relationship justified will have positive attitudes towards, and increased
between eco-knowledge and organic food purchase rates of purchasing it (Saleki, 2012). We will also compare
intention. the price sensitivity of Muslim and non-Muslim consumers
to find which group more price sensitivity as one of key to
H2c: The strength of the relationship between eco- decide price of organic food. Therefore, based on previous
knowledge and attitudes toward organic food will be research, we hypothesize that:
different for Muslim and non-Muslim respondents.
H4a: There will be a significant positive relationship
H2d: The strength of the relationship between eco- between price sensitivity and attitudes toward organic
knowledge and organic food purchase intention will be food.
different for Muslim and non-Muslim respondents.
H4b: There will be a significant positive relationship
Ecological labelling between price sensitivity and organic food purchase
intention.
The use of ecological labels (eco-labels) is a good way to
address environmental concerns because they are H4c: The strength of the relationship between price
produced in an environmentally friendly way (Ben Youssef sensitivity and attitudes toward organic food will be
& Lahmandi-Ayed, 2008; Bleda & Valente, 2009). Eco- different for Muslim and non-Muslim respondents.
labeling provides consumers with information—a kind of
expanded product quality and service assessment—by H4d: The strength of the relationship between price
indicating the product’s environmental attributes (Bratt, sensitivity and organic food purchase intention will be
Hallstedt, Robert, Broman, & Oldmark, 2011). Given that a different for Muslim and non-Muslim respondents.
relatively large number of consumers always read labels
and consider the information provided to be accurate, Outlook
D'Souza et al. (2006) argued that eco-labelling is an
important way of communicating products’ environmental Outlook refers to an individual’s evaluation of behaviors as
justifications to consumers. Chekima (2015) went further good or bad (Irianto, 2015). In line with the Theory of
and strongly suggested that green product manufacturers Planned Behavior (TPB) assertion that attitude towards a
immediately place eco-labels on their product packaging. behavior predicts behavioral intention (Ajzen, 1991).
Eco-labelling has a strong influence on organic product Several studies have shown that there is a significant
purchase intention and is a vital marketing tool for helping positive relationship between attitudes toward, and desire
consumers identify green product (Chekima, 2015; to purchase, organic foods (Cabuk et al., 2014; Cheah &
D'Souza et al., 2006; Grankvist & Biel, 2001). We also Phau, 2011; Chen, Lobo, & Rajendran, 2014; Irianto,
investigated the differences between Muslim and non- 2015; Magnusson et al., 2001; Tarkiainen & Sundqvist,
Muslim consumers. Therefore, we propose the following 2005). Based on the results of previous research, we
hypotheses: expect that Outlook will mediate the relationships that
health consciousness, eco-knowledge, eco-labelling, and
H3a: There will be a significant positive relationship price sensitivity have with organic food purchase intention.
between eco-labeling and attitudes toward organic food. We also expect that Muslim and non-Muslim consumers
will have different attitudes toward organic food. Therefore,
H3b: There will be a significant positive relationship we make the following hypotheses:
between eco-labelling and organic food purchase
intention.
Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions
Pinem RJ 209

H5a: There will be a significant relationship between Good convergent validity is indicated by high SLF values:
attitude towards organic food and organic food purchase specifically, Hair (2010: 678) suggested a value of SLF ≥
intention. 0.5. CR is another determinant indicator that indicates
whether or not there is convergent validity. Hair (2010:
H5b: The strength of the relationship between attitude 679) proposed that a value of CR ≥ 0.7 indicates good
towards organic food and organic food purchase intention reliability and that CR values between 0.6 and 0.7 indicate
will be different for Muslim and non-Muslim respondents. acceptable reliability. He noted that indicator variables
show good validity. CR is calculated using the following
formula:
METHODOLOGY
(∑𝑛𝑖=1 𝑆𝐿𝐹𝑖 )2
𝐶𝑅 = 𝑛 .
Sampling (∑𝑖=1 𝑆𝐿𝐹𝑖 )2 + (∑𝑛𝑖=1 𝑒𝑖 )

The questionnaire was made in English and translated into CR indicates composite reliability, SLF is the standardized
Indonesian. To maintain the accuracy of translation results factor loading and ei is the variance due to measurement
and easy to understand then tested a questionnaire to error (Hair, 2010: 679).
some respondents, providing feedback and revisions to
maintain the accuracy and make it easy to understand the Hair (2010: 679) states that an AVE value of AVE ≥ 0.5
questionnaire to be used. The final questionnaire was indicates adequate convergence. The AVE measure is
distributed online. In total, data was collected from 526 calculated using the following formula:
respondents, of which 273 identified as Muslim and 253 ∑𝑛𝑖=1 𝑆𝐿𝐹𝑖2
𝐴𝑉𝐸 = 𝑛 .
identified as non-Muslim, first step we asked their religion ∑𝑖=1 𝑆𝐿𝐹𝑖2 + ∑𝑛𝑖=1 𝑒𝑖
before fill the quesyionnaire. Respondents were of various
genders, ages, religions, income levels, education levels, SLF is the standardized factor loading and n is the number
and marital status of items.

Instrument Data Analysis


All items were measured using a seven-point Likert scale For this study, data analysis was carried out in three steps
(1 = strongly disagree; 7 = strongly agree). Our using SPSS 21 and LISREL software. First, SPSS 21 was
questionnaire was adapted from previous papers and used to describe the distribution of respondents based on
included a total of 33 items. For health consciousness, six demographic characteristics such as gender, age, religion,
items (α = 0.831) were chosen from Hong (2015) (e.g., “I income, education level and marital status (see Table 1).
avoid foods containing nitrites or preservatives”). For eco- Second, we carried out structural equation modeling
knowledge, four items (α = 0.788) were chosen from Akbar (SEM) using LISREL software. The scope of our
et al. (2014) (e.g., “Ecological knowledge has an influence measurement model included validity and reliability tests.
on green purchasing behavior”). For eco-labelling, we For the structural model we tested the significance of the
used six items (α = 0,793). Four were adapted from influence of independent variables on dependent variables
Nguyen et al. (2010) and two were adapted from Kong et across all data. Third, the data was divided into two
al. (2014) (e.g., “I consider what is printed on eco-labels to groups: Muslim and non-Muslim respondents. We
be accurate”). For price sensitivity, four items (α = 0.795) analyzed each group and compared the results. Based on
were chosen from Goldsmith et al. (2010) (e.g., “I know the results of all combined data, health consciousness,
that organic food is likely to be more expensive than eco-knowledge, eco-labelling and price sensitivity all have
conventional food, but that doesn’t matter to me”). For a significant positive relationship with attitudes toward
attitude toward organic food, seven items (α = 0.823) were organic food and organic food purchase intention. We
chosen from Khan and Azam (2016) (e.g., “I think that we divided into Muslim and non-Muslim groups, analyzed
all should purchase eco-labelled products”). Finally, for each, and compared the results for each variable
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”). RESULTS
Convergent Validity Demography
The aim of validity and reliability testing is to determine Female respondents were 270 respondents (51.3%) and
whether the chosen indicator variables are significant in not significantly different male respondents 256 (48.7%).
terms of reflecting the construct or latent variables Age of respondents dominant 21-30 years old i.e. 435
(convergent validity). We tested convergent validity by respondents (82.7%). Educational respondents dominant
calculating standardized loading factor (SLF), construct master degree i.e. 235 respondents (44.7) and bachelor
reliability (CR) and average variance extracted (AVE) degree 226 (43%). Revenue of dominant respondents
values.
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%). The value of the path coefficient from HC to PI is 0.2262,
Muslim respondents were 273 respondents (51.9%) and which shows that HC has a positive effect on PI. The t
the rest of non-Muslims were 253 respondents (48.1%). value of 5.5461 (> t table 1.96) shows that the effect of HC
Marital status of respondent’s dominant single 448 on PI is also significant. The path coefficient value from EK
respondents (85.2%). 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
Factor Loading and Convergent Validity 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
The results of factor loading and convergent validity tests positive effect on PI. The t value of 3.6456 (> t table 1.96)
are shown in Table 2. The SLF value of each indicator was shows that the effect of EL on PI is also significant. The
greater than 0.5, which means that all indicators had a path coefficient value of PS to PI is 0.2327, meaning that
sufficient and strong ability to explain the latent constructs that PS has a positive effect on PI. The t value of 5.8808
(Hair et al, 2010) and that, good convergent validity was (> t table 1.96) means that the effect of PS on PI is also
achieved. For AVE, we found the following values: health significant. The path coefficient value of ATT to PI is
consciousness (HC) = 0.8765, eco-knowledge (EK) = 0.2675, meaning that ATT has positive effect on PI. The t
0.8568, eco-labelling (EL) = 0.8361, price sensitivity (PS) value of 6.4847 (> t table 1.96) means that the effect of
= 0.8299, attitude (ATT) = 0.796 and purchase intention ATT of PI is also significant. The R-squared value showed
(PI) = 0.869. As all values were greater than 0.5, the data that health consciousness, eco-knowledge, eco-labelling,
also have good convergent validity based on AVE values. and price sensitivity accounted for 79.59% of the variation
The CR values were as follows: HC = 0.9771, EK = 0.9599, in purchase intention.
EL = 0.9684, PS = 0.9512, ATT = 0.9647, and PI = 0.9755.
All values were greater than 0.7, which means the data Comparison of Muslim and non-Muslim groups
satisfied the requirements for good convergent validity
based on CR size. Factor Loading and Convergent Validity

Structural model assessment of fit The results of factor loading and convergent validity tests
for the data from Muslim and non-Muslim respondents are
First, SEM was used to test the suitability of our model and shown in Tables 5 and 8. The data for both Muslim and
then regression coefficients were calculated to measure non-Muslim groups had good convergent validity as
the impact of variables. We evaluated the suitability of the measured by SLF, AVE and CR values. The SLF values
model by comparing the values of various fit indices. As of each indicator were greater than 0.5, meaning that the
shown in Table 3, overall the SEM model has a good fit indicators had sufficient validity to explain the latent
with the sample data. We therefore continued to the next constructs. For AVE, both groups’ data also had values
step of testing. greater than 0.5, which means the data had good
convergent validity. Finally, the CR values for both Muslim
Path Analysis and non-Muslim groups were greater than 0.7, meaning
that the data had good convergent validity.
After testing the suitability of the model, we tested our
hypotheses using the structural model. Table 4 shows the Structural model assessment of fit
results of coefficient and t-tests, which estimate the
significance of the relationships between latent variables. We tested the full SEM to examine its suitability and used
These results can be summarized as follows: regression coefficients to assess the significance of
causality between variables. We evaluated the suitability
The path coefficient value of HC to ATT is 0.2734. This of the model by comparing the values of different
shows that HC has a positive effect on ATT. Given that the goodness of fit indices. Based on Tables 6 and 9, we can
t value 5.6472 > t table 1.96, HC also has a significant see that the overall SEM has a good fit with both the
effect on ATT. The path coefficient value of EK to ATT is Muslim and non-Muslim groups’ data. Therefore, we
0.1454, and thus EK has a positive effect on ATT. The t continued to examine the impacts of exogenous variables
value of 3.1076 (> t table 1.96) means that the effect of EK on endogenous variables.
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. Path Analysis
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 We compared the path coefficients and significance tests
of PS to ATT is 0.3116, and thus PS has a positive effect between Muslim and non-Muslim groups (see Tables 7
on ATT. The t value of 6.7878 (> t table 1.96) means than and 10). These results can be summarized as follows:
the effect of PS on ATT is also significant. The R-squared
value showed that health consciousness, eco-knowledge, The path coefficient of HC to ATT was positive for both
eco-labelling, and price sensitivity accounted for 68.7% of Muslim and non-Muslim groups. We interpreted this to
the variation in attitudes toward organic food. 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 The path coefficient value of HC to PI was positive for both
was less than the t-table value of 1.96, and so HC has an Muslim and non-Muslim groups, and thus HC of both
insignificant effect on ATT. However, for the non-Muslim Muslim and non-Muslim groups has a positive effect on PI.
group the t-value was greater than the t-table value of 1.96, The t-value of HC for both the Muslim and non-Muslim
and so for this group HC has a significant effect on ATT. groups was greater than 1.96. Therefore, HC has a
The path coefficient value of EK to ATT was positive for significant effect on the PI of both groups. The path
both Muslim and non-Muslim groups. Thus, for both coefficient value of EK to PI was also positive for both
Muslim and non-Muslim groups EK has a positive effect on Muslim and non-Muslim groups, and thus EK has positive
ATT. For the Muslim group the t-value was greater than effect on PI for both groups. The EK t-value for both
1.96, so EK has a significant effect on ATT. For the non- Muslim and non-Muslim groups was greater than 1.96, and
Muslim group however, the t-value was less than 1.96. so the effect of EK on PI is significant for both groups.
Thus, EK of the non-Muslim group does not have a
significant effect on ATT. The path coefficient value of EL The path coefficient value of EL to PI was also positive for
to ATT is positive for both Muslim and non-Muslim groups. Muslim and non-Muslim groups. Therefore, EL has a
Thus, for both Muslim and non-Muslim groups, EL has a positive effect on PI for both Muslim and non-Muslim
positive effect on ATT. groups. For the Muslim group, the t-value showed that EL
has significant effect on PI, but for the non-Muslim group
The effect of EL on ATT was significant for the Muslim the impact of EL on PI was not significant. The path
group but was not significant for the non-Muslim group. coefficient value of PS to PI was positive for both groups,
The path coefficient value of PS to ATT was positive for and PS therefore has a positive effect on PI for Muslim and
both Muslim and non-Muslim groups, and therefore PS non-Muslim respondents. The PS t-values showed that it
has a positive effect on ATT for both groups. In this case, has a significant effect on PI for both Muslim and non-
the t-value for the Muslim group data was less than 1.96, Muslim groups. Finally, the path coefficient value of AT to
while it was greater than 1.94 for the non-Muslim group. PI positive for both Muslim and non-Muslim groups,
Thus, PS of Muslim respondents does not have a meaning that that ATT of Muslim and non-Muslim groups
significant effect on ATT, whereas PS of non-Muslim have positive effects on PI. The t-values showed a
respondents does have a significant effect on ATT. R- significant effect of ATT on PI for both group. R-squared
squared values showed that health consciousness, eco- values showed that health consciousness, eco-
knowledge, eco-labelling, and price sensitivity accounted knowledge, eco-labelling, price sensitivity, and attitudes
for 69.87% of the variations in attitudes toward organic toward organic food accounted for 81.3% of the variation
food for Muslim respondents and about 73.45% of in organic food purchase intention for Muslim respondents
variation for non-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 Yes
food.
H1b There is a significant relationship between health consciousness and organic food purchase Yes
intention.
H1c The relationship between health consciousness and attitudes toward organic food is different Yes
for Muslim and non-Muslim respondents.
H1d The relationship between health consciousness and organic food purchase intention is different No
for Muslim and non-Muslim respondents.
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 Yes
Muslim and non-Muslim respondents.
H2d The relationship between eco-knowledge and organic food purchase intention is different for No
Muslim and non-Muslim respondents.
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 Yes
and non-Muslim respondents.
H3d The relationship between eco-labelling and purchase intention is different for Muslim and non- Yes
Muslim respondents.
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 Yes
and non-Muslim respondents.
H4d The relationship between price sensitivity and organic food purchase intention is different for No
Muslim and non-Muslim respondents.
H5a There is a significant relationship between attitudes toward organic food and organic food Yes
purchase intention.
H5b The relationship between attitudes toward organic food and organic food purchase intention is No
different for Muslim and non-Muslim respondents.

DISCUSSION Eco-labelling had a significant influence on both attitudes


toward organic food and organic food purchase intention.
The aim of this study was to analyze the relationships of This suggests that consumers see the labels of organic
Indonesian consumers with organic food. As Indonesia food as an important differentiator from conventional food.
has the world’s largest Muslim population, we aimed to Eco-labels on organic food are a sign of healthy food. As
understand any specificities of organic food purchase Chekima et al. (2015) point out, the most important
intention for Muslim consumers. Interestingly, we found implication of this fact for industries selling green products
that religion has an effect: the results of the two groups is that eco-labels can serve as an essential marketing tool
differed in terms of influence of health consciousness, eco- in promoting green consumption among consumers.
knowledge, eco-labelling and price sensitivity on attitudes
toward organic food and organic food purchase intention. Among Muslim respondents, eco-labelling had a
Respondents who are highly health conscious were more significant impact on attitudes toward organic food and
likely to have positive mindset toward organic food and organic food purchase intention. This means that eco-
intentions to purchase organic food. As demonstrated by a labelling can help create positive attitudes toward organic
recent finding that health is the main reason for choosing food and increase intentions to purchase organic food. On
organic products (Sirieix et al., 2011), consumers are the other hand, among non-Muslim respondents, the
aware that health is very important and pay attention to the relationship between eco-labelling and a) attitudes toward
food they consume. Voon et al. (2011) also noted that organic food, and b) organic food purchase intention, were
health concerns reflect the growing affluence of Malaysian not significant. Both groups showed different results and it
consumers. Our findings nmore positive attitudes toward is important to promote eco-labelling so that consumers
organic food and greater organic food purchase intention. become familiar with eco-labels as a guarantee that a
The relationship between health consciousness and product has been produced organically (J. Chen et al.,
attitudes toward organic food was not significant for 2014).
Muslim respondents, but it was significant for non-Muslim
respondents. This suggests that an increase in health Price sensitivity had a significant influence on attitudes
consciousness will lead to more positive attitudes toward toward organic food and purchase intention; consumers
organic food. Both groups had significant results in terms know that organic food is more expensive than
of purchase intention insofar as higher health conventional food (D'Souza et al., 2006). The Food and
consciousness was associated with greater organic food Agriculture Organization (FAO) (2016) explains that
purchase intention. reason that organic food is more expensive than
conventional food is that supply is lower than demand.
Consumers’ knowledge of the benefits of organic food has Further, post-harvest handling of relatively small quantities
significant effects on their intention to purchase it; of organic foods results in higher costs due to the
consumers who have knowledge about organic food tend mandatory segregation of organic and conventional
to choose organic rather than conventional food (Voon et produce during processing and transportation. For the
al., 2011). This is in line with our finding that increased Muslim group, the relationship between PS and attitudes
consumer eco-knowledge leads to more positive attitudes toward organic food was not significant, however for the
toward organic food and augmented organic food non-Muslim group this relationship was significant. Non-
purchase intention. For Muslim respondents, they have Muslim respondents show more understand the price of
eco-knowledge and had a significant effect on attitudes organic food is higher than the conventional food and
toward organic food, whereas for non-Muslim respondents Muslim respondents otherwise. Although Muslim
the relationship was not significant. Eco-knowledge had a respondents showed significant results, the relationship
positive impact on purchase intention for both the Muslim between price sensitivity and purchase intention was
and non-Muslim groups. Which mean when consumer significant because the continuation of the influence of
have knowledge of organic food will increase their interest attitudes of non-Muslim respondents had a direct influence
in buying it. on organic food purchase intention.

Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions
Pinem RJ 213

Implications Ben Youssef, Adel, Rim Lahmandi-Ayed (2008) "Eco-


labelling, Competition and Environment:
For companies Endogenization of Labelling Criteria", Environmental &
Resource Economics 41(2): 133-154.
Companies should work to educate consumers about the Bezawada, Ram, Koen Pauwels (2013) "What Is Special
health and environmental benefits organic food. About Marketing Organic Products? How Organic
Consumers with greater health consciousness, greater Assortment, Price, and Promotions Drive Retailer
knowledge of organic food and eco-labels. Who Performance", Journal of Marketing 77(1): 31-51.
understand the justification for higher organic food price doi:10.1509/jm.10.0229
are more likely to purchase organic food. Companies Bleda, Mercedes, Marco Valente (2009) "Graded eco-
should also promote eco-labelling on their products to labels: A demand-oriented approach to reduce
enhance consumers’ consideration of purchasing organic pollution", Technological Forecasting and Social
food. In addition, companies should be more aware of Change 76(4): 512-524.
consumers’ feelings that the eco-label is an accurate and Bratt, C., S. Hallstedt, K. H. Robert, G. Broman, J. Oldmark
assured sign that increases their consumer desire to (2011) "Assessment of eco-labelling criteria
purchase organic food. development from a strategic sustainability
perspective", Journal of Cleaner Production 19(14):
For the government 1631-1638.
Brouhle, Keith, Madhu Khanna (2012) "Determinants of
The government should set up a strict regulation on eco- Participation Versus Consumption in the Nordic Swan
labeling. The provision of friendly-environmental products Eco-Labeled Market", Ecological Economics 73(Jan):
since people believe that the label issued by the 142-151.
government. Considered as a sign of organic food that Cabuk, Serap, Ceyda Tanrikulu, Levent Gelibolu (2014)
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accuracy of the eco-label, so it will increase trust among Chan, Ricky Y. K., & Lorrett B. Y. Lau (2000) "Antecedents
customers. Price is one of the main determinants of of Green Purchases: A Survey in China", Journal of
consumers buying a product; the price of organic food is Consumer Marketing 17(4): 338-357.
more expensive than conventional food. It is necessary for doi:10.1108/07363760010335358
the company or business to educate the customer. The Cheah, Isaac, Ian Phau (2011) "Attitudes towards
price of organic food is more expensive because the cost environmentally friendly products", Marketing
of maintenance requires greater cost and effort than Intelligence & Planning 29(5): 452-472.
conventional food, but the benefits of organic food are also doi:10.1108/02634501111153674
greater than conventional food. Chekima, Brahim, Syed Azizi Wafa Syed Khalid Wafa,
Oswald Aisat Igau, Sohaib Chekima (2015)
"Determinant Factors of Consumers’ Green Purchase
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Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions