Consumers' Attitude and Intention To Purchase Organic Goods in Cambodia
Consumers' Attitude and Intention To Purchase Organic Goods in Cambodia
Consumers' Attitude and Intention To Purchase Organic Goods in Cambodia
ISSN: 1083-4346
ABSTRACT
This research investigation was conducted in Phnom Penh City which is the capital of
Cambodia to uncover the main aspects influencing the intention to buy organic goods.
This was done through 456 structured questionnaires based on the pioneering integrated
models of empirical work embracing seven major issues: ethical lifestyles, health
consciousness, price perspective, food safety concerns, product attributes, product
availability, and consumers trust through factor analysis and multiple regression
analysis. The results show that health consciousness is the foremost potential theme to
target consumption; product availability and convenience significantly influence
consumption known as the second prime mover. However, ethical lifestyles and food
safety are less likely to provide a correlation between intention to buy and these factors
while price has negatively affected intention. As such, it is clear that consumers believe
organic goods are a premium products aimed exclusively at the wealthy. Thus,
marketers should set up policy concerning health awareness and goods placement to
generate more consumption volumes.
JEL Classifications: M310, Q130
Keywords:
I.
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INTRODUCTION
In todays world there is ever increasing pressure to produce more food to feed the
growing global population. In agriculture there is heavy use of chemicals to produce
more output to fulfill market demand. To some it can seem an inevitable trend.
Cambodia is no different in this aspect and has seen the proliferation of chemical
fertilizers and pesticides in search of greater yields. Typically, around a hundred
chemical pesticides are available on the market and farmers have used more than
3,200,000 liters per year (Cambodia organic agriculture association [COAA], 2009).
However, organically produced food agricultural products grown without the
use of chemicals and where animals are raised in more natural conditions, without
regular use of drugs offer many advantages to both producers and consumers in
regards to healthy lifestyle, social benefits, animal welfare, environmental preservation
and environmental friendliness. Organic vegetables provide numerous vitamins,
minerals and anti-oxidants (Soil Association, 2013). There is global growth and
widening interest in the sector. Even though sales of organic foodstuffs are relatively
low, when compared to conventional products, they have continued to outperform the
non-organic grocery market. Many consumers around the world are willing to
purchase organic food. The UK, Italy, Belgium, Denmark, France and Australia are
mentioned in the following research papers: (Denver and Jensen, 2014; Dinnella et al.,
2014; Fernqvist and Ekelund, 2014; Hoefkens et al., 2010; Janssen and Hamm, 2012;
Kavaliauske and Ubartaite, 2014; Lobo et al., 2013; Michaelidou and Hassan, 2010;
Ozguven, 2012; Pieniak et al., 2010; Schleenbecker and Hamm, 2013; Shafie and
Rennie, 2012; Zanoli and Naspetti, 2002), while in Asia the number of researches on
organic consumer is less, for example Thailand, Taiwan, and Malaysia (Chen, 2007;
Hsu and Chen, 2014; Roitner-Schobesberger et al., 2008; Voon et al., 2011).
Recent research has reported organic food consumption intention among ThaiCambodian cross-border consumers (Pomsanam et al., 2014). However, there is no
research about organic consumers intention to purchase organic goods in the
Cambodian capital, Phnom Penh. The information about organic targets in Cambodia
has been very limited in the scientific world, especially information regarding organic
consumers perceptions, which are still lacking; there is little evidence available since it
is quite different in terms of demographic characteristics, education, standard of living,
concepts, stereotypes and the cultural environment; therefore, further investigations are
necessary.
The aim of this research is to uncover the main impact factors affecting organic
consumers purchasing power in Phnom Penh city based on the pioneering integrated
models of Torjusen et al. (2001), Michaelidou and Hassan (2010), Voon et al. (2011),
Shafie and Rennie (2012), Ozguven (2012), Lobo et al. (2013), Dinnella et al. (2014),
Pomsanam et al. (2014), and Kavaliauske and Ubartaite (2014). The model and theory
examines in depth the major effects of consumers intention to purchase organic goods
as following an ethical lifestyle, health consciousness, price perspective, food safety
concerns, product attributes, product availability, and consumers trust in purchasing
organic goods.
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II.
LITERATURE REVIEW
The theory of planned behavior can explain and predict how behavior is formed. There
are three different processes of behavior, behavior attitude, subjective norms, and
perceived behavior control. The key premise is that if a person first plans to do
something then they are more likely to do it (Ajzen, 1991; Fishbein and Ajzen, 2011).
In the example of consuming organic goods, when a person perceives eating organic
foods to be enjoyable and believes it to be beneficial intermingled with favorable
members of that persons social group who already eat organic goods and have
motivated the person to do likewise. Ultimately, if the person feels that he or she has
the ability to meet the demand, the person will form a strong intention and are more
likely to engage in that behavior.
Consumer behavior is the process of receiving information of goods, the
circumstance to purchase, and deposing of goods or services (Blackwell et al., 2007).
Based on previous research in Malaysia behavior attitudes were mapped out as follows:
health concerns, environmental concerns, confidence in organic food, and quality of
food. These factors were considerably significant on consumers willingness to
purchase. Moreover, most organic consumers declared that they bought the products
with respect for health benefits, food safety, environmental anxiety, food components,
appearance, and sensory attributes (nutritive value, taste, and freshness) (Shafie and
Rennie, 2012). Regarding the scientific breakthrough in Taiwan based on regulatory
focus theory carried out by Hsu and Chen (2014) confirmed that consumers
characteristics played an essential element in consumers purchasing intention.
When considering organic food health becomes the initial image coming to mind
in consumers perception, but they might have different ideas of health regarding their
experiences and level of information (Zanoli and Naspetti, 2002). According to the
scientific work of Lobo et al. (2013) rising incomes, lifestyle, and growth of health
awareness have driven organic demand. In Switzerland respondents reported that
physiological health and consumer confidence were statically significant on willingness
to purchase functional food (considered beneficial to health), especially in the older
consumers (Siegrist et al., 2008); hence, to attract more consumers interest in organic
goods, information related to health and environmental benefits should extended widely
(Kavaliauske and Ubartaite, 2014).
Lobo et al. (2013) reported that almost 50 percent of organic consumers are
motivated by health. Manuela et al. (2013) also verified that health was highly
appreciated by organic consumers besides quality, authenticity, and naturalness in food.
In Italy, organic consumers also confirmed that they definitely appreciated the value of
organic food. The results were very similar to the previous work of Zanoli and Naspetti
(2002). Notwithstanding the health aspect, Michaelidou and Hassan s (2010) research
revealed that health benefit was less valued in raising consumption, but was positively
significant in affecting consumer usage (Kavaliauske and Ubartaite, 2014). Based on
the aforementioned literature discrepancy, this study hypothesized that consumers
worry about their health, which has influenced positively on the intention to purchase
organic goods.
Ethical concern is a basic issue comprising of product safety, health concerns,
product composition, price, and product availability. It becomes the priority reason in
organic food consumption where people consider healthy and environmentally friendly
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food (Kavaliauske and Ubartaite, 2014). About 23 percent of consumers consider that
consumption of organics will enable them to help and protect the environment as well
as encouraging local produce (Lobo et al., 2013). Notably, consumer personality traits
were examined to significantly affect consumers ethical beliefs with regard to 545
Taiwanese consumers (Lu et al., 2015). Referring to an empirical investigation about
consumers attitudes toward organic food in Bangkok defined that environmental
friendliness was the major driver to the purchase of organic food, and became a hot
topic for them (Roitner-Schobesberger et al., 2008). To sum up, favorable factors
toward organic goods are likely to be positive and strengthened with a sympathetic
ethical lifestyle. There is a discrepancy here. It is therefore hypothesized that
consumers ethical issues have a noteworthy impact on the intention to buy organic
goods.
Price is a fundamental matter, it has a higher correlation with consumers
intention to purchase (Ozguven, 2012). Presumably, consumers are willing to pay a
premium price depending on their experience or purchasing frequency (Janssen and
Hamm, 2012). It does not really matter to organic consumers since they consider
organics to be affordable (Kavaliauske and Ubartaite, 2014). In principle, consumers
have high expectations regarding the superiority of organic over non-organic produce,
meaning they do not mind paying a higher price (Denver and Jensen, 2014). Certainly,
pro-organic consumers are willing to pay higher prices due to the perceived health and
nutritional benefits. In contrast disinclined consumers are reluctant to buy organic on
account of the additional price and unclear information about labeling. Organic skeptics
moreover still have doubts about the price (Lobo et al., 2013).
Shafie and Rennie (2012) in their paper concerning consumer perception towards
organic food suggest that price has negatively affected consumption. In spite of the
problematic expense, organic consumers continue to pay premium prices in terms of
perceived organic benefits while non-organic consumers do not because they believed
that buying and eating organic fare does not make any difference (RoitnerSchobesberger et al., 2008). As a result, this research has assumed that price impacts
significantly on the intention to buy organic goods.
Food safety encompasses consumers concerns over healthiness, natural farming
methods, clean and chemical free food. Ethically produced food raises consumers
awareness and perception of purchasing organic produce (Lobo et al., 2013). Indeed,
more than 50 percent of consumers worry about pesticide residue on the food they
purchase while 10 percent are extremely concerned about genetically modified
organisms (GMOs). The majority consumers of organic food are concerned about
freshness and taste (Roitner-Schobesberger et al., 2008). Kavaliauske and Ubartaite
(2014) have observed that consumers pay attention to product composition. Some
consumers of organic food worry, not only about this issue, but also production
methods, labeling, and insufficient information which can force them to avoid organic
produce (Roitner-Schobesberger et al., 2008).
According to the previous work in Izmir realized that organic consumers seemed
not fully trust organic benefits such reducing stress and weight even they had consumed
organic produce. Further results minimized the view that consumers purchased it in
accordance with low chemical residue, high quality and food safety. Among these
factors, quality was the highest correlation (Ozguven, 2012). In line with this, food
handling practices and food safety public concerns, recommended that food safety
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Conceptual Framework
The purpose of this work is to examine the motives that define the intention to purchase
organic goods in Phnom Penh, Cambodia. The aforementioned extensive scientific
work has identified several factors leading to the purchase of organic goods namely
health consciousness, ethical lifestyle, product attributes, product availability, price
perception, food safety concerns, and consumers trust as shown in Figure 1 below.
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Figure 1
Conceptual framework
B.
Research Hypotheses
H1: Consumers health concerns influence the intention to purchase organic goods.
H2: Consumers ethical issues have a positive significant impact on the intention to buy
organic goods.
H3: Price has impacted significantly on the intention to buy organic goods.
H4: Consumers worries about food safety have positively influenced the intention to
buy organic goods.
H5: Product attributes have impacted significantly on the intention to buy organic
goods.
H6: Product availability has influenced significantly consumers intention to purchase.
H7: Trust has impacted positively on consumers intention to purchase organic goods.
III.
METHODOLOGY
A quantitative survey associated with convenient sampling was done between June
2015 and July 2015 in Phnom Penh metropolis. Before obtaining data, an English
version of the questionnaire was revised and translated to Khmer and vice versa, and
the surveyors were trained to administer questionnaires beforehand. Four hundred and
fifty-six Khmer revised questionnaires were distributed to respondents randomly
outside a supermarket purposive sampling in accordance with an unknown population
(Ary et al., 2006; Cochran, 1963).
The target respondents of this study were the consumers who had previously
bought or heard about organic goods and were willing to help based on their interest
and availability. Consumers who had never heard of organic goods were excluded. In
return for completing the survey, data providers received a bar of soap as a thank you.
The questionnaires consisted of thirty questions measured in a 5 point Likert
scale as 1 = strongly disagree to 5 = strongly agree. A modified statement version was
developed through comprehensive literature searched from Torjusen et al. (2001),
Michaelidou and Hassan (2010), Voon et al. (2011), Shafie and Rennie (2012), and
Dinnella et al. (2014). The model specification comprised mainly of one endogenous-
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(intention to purchase (IT), 5 statements were measured) and seven exogenous variables
(consumers ethical lifestyle (EL), 4 statements were measured, health consciousness
(HC), 3 statements were measured, price perspective (PP), 3 statements were measured,
food safety concerns (FS), 4 statements were measured, product attribute (PA), 4
statements were measured, product availability and convenience (AC), 3 statements
were measured, and consumers trust (CT), 4 statements were measured).
Pertaining to pilot questionnaires, 30 items were developed based on 89 online
respondents. Cronbachs Alpha showed that all the items were highly reliable, so the
final questionnaire retained all 30 items. Finally, the data collected in structured
questionnaires were preceded with exploratory factors analysis, reliability analysis,
bivariate analysis, and multiple regression analysis using Statistical Package for Social
Sciences (SPSS) version 22.
IV.
Preliminary analysis and research instruments were scanned for completeness and
abnormal pattern of respondents. Then raw data were carefully converted into a
database. Afterward, univariate descriptive statistics were screened data. In addition, all
statements were valued by a 5 point Likert-scale. If the mean value of expression was
more than 3, it represented that respondents agreed with that statement. Among 30
statements, the mean of those ranged from 3.03 to 4.27 above midpoint, it can be
implied that the respondents totally agree with all statements. Additionally, the standard
deviations ranged 0.859 to 1.095 demonstrating that respondents views match each
other. They have similar views on these ideas and their values of choice are consistent.
Priority, principal component analysis was undertaken with 30 variables to
lessen the dimensionality of a large number of variables to fewer numbers of latent
variables, and varimax rotation was executed. According to a rule of thumb, about
456 samples provide good reliable factors. The scree plot also demonstrated the eight
dominant factor solutions necessary to explain each scale, which were labeled as
follows: (1) intention to purchase (IT), (2) health consciousness (HC), (3) consumers
ethical lifestyle (EL), (4) price perspective (PP), (5) food safety concerns (FS), (6)
product attributes (PA), (7) product availability and convenience factor (AC), and (8)
consumers trust (CT). With respect to Bartlett Test of Sphericity was significant (2
(435) = 4505.406, p<0.0001), which indicated the strength of the relationship among
latent variables simultaneously while Kaiser-Meyer-Olkin (KMO) measure of sampling
adequacy valued of 0.8 as meritorious was greater than 0.6, which exceeded the
recommended threshold value for a satisfactory and acceptable factor analysis to
proceed (Tabachnick and Fidell, 2001). All communalities extraction scores were
loaded from 0.4 to 0.7 considered to be loading on factor and mostly were more than
0.5 was desirable. These factor solutions with eigenvalues greater than one which
exceeded the acceptance criteria were explained by eight factor solutions was 62
percent of total variance which was loaded exceed the 50 percent minimum threshold
and was satisfactory in social science work (Hair et al., 2006).
Reliability analysis was carried out with all variables both independent and
dependent variables running independently with respect to factor solutions. The
statistical reliability of the scales were undertaken entirely on the items by indicator of
Cronbachs alpha coefficient () and Cronbachs alpha if item deleted. According to
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item analysis results, all eight dimensions Cronbachs alpha coefficient ranged from 0.6
to 0.8 which was reliably loaded more than the threshold of 0.5, it was concluded all
Cronbachs alpha coefficient () and Cronbachs alpha if item deleted score indicated
the variable scales were acceptably reliable and valid for further inferential analysis.
According to Pearson product-moment correlation coefficient between
consumers intention (IT) and its drivers were HC, EL, PP, FS, PA, AC and CT,
respectively measuring the closeness of the relationship between variables, as shown in
Table 1. Shortly after calculating the correlation of the scale dimension, correlation
matrix showed that the IT dimension was statically significant correlated between HC,
EL, PP, FS, PA, AC, and CT dimension at 0.01 level. HC had the greatest correlation
on intention to purchase (r= 0.479) than other dimensions while the second ordered
Pearson correlation was FS (r=0.465). The other component, 0.438 Pearson correlated
between IT and EL, 0.169 Pearson correlated between IT and PP, 0.329 Pearson
correlated between IT and PA while AC and CT were 0.452 and 0.430, accordingly.
Further results show that all correlation dimensions were more than 0.3, which was a
positively moderated correlation between independent and dependent variables. Based
on the correlation matrix, there was no problematic multicollinearity since all
independent variable correlations were not loaded more than the criteria point of 0.9
where extremely high correlation between independent variables were seen.
Table 1
Descriptive statistics and bivariate Pearson correlation coefficient matrix
N0. Drivers Mean SD
1
2
3
4
1
IT
3.738 0.643 2
HC
3.929 0.698 0.479** 3
EL
3.491 0.666 0.438** 0.400** 4
PP
3.258 0.795 0.169** 0.103*
0.188** 5
FS
4.135 0.699 0.465** 0.452** 0.381** 0.279**
6
PA
3.373 0.761 0.329** 0.259** 0.356** 0.304**
7
AC
3.751 0.795 0.452** 0.270** 0.305** 0.358**
8
CT
3.493 0.713 0.430** 0.308** 0.373** 0.173**
Note: **indicates that correlation is significant at the 0.01 level (2-tailed)
*
indicates that correlation is significant at the 0.05 level (2-tailed)
0.315**
0.461**
0.290**
0.340**
0.406**
0.331**
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Table 2
Coefficients on factors that affect consumers intention and collinearity statistics
Unstandardized
Standardized
Collinearity
Coefficients
Coefficients
Statistics
B
Std. Error
Beta
t
Sig.
Tolerance
VIF
(Constant)
0.609
0.195
3.120
0.002
HC
0.213
0.041
0.231
5.129
0.000***
0.716
1.396
EL
0.145
0.044
0.150
3.315
0.000***
0.712
1.404
ns
PP
-0.036
0.034
-0.045
-1.062
0.289
0.820
1.219
FS
0.140
0.044
0.152
3.186
0.002**
0.636
1.572
PA
0.029
0.038
0.034
0.765
0.445ns
0.723
1.383
AC
0.176
0.037
0.218
4.723
0.000***
0.684
1.461
CT
0.163
0.040
0.181
4.072
0.000***
0.738
1.356
R=0.653, R Square = 0.427, Durbin-Watson = 1.725, F (7, 394) = 41.941, p<0.0001
***
indicates significant at the 0.001 level; ** indicates significant at the 0.01 level; * indicates significant at the
0.05 level; ns Non significant
Items
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Table 3
Finalized coefficients on factors that affect consumers intention
Item
(Constant)
HC
EL
FS
AC
CT
Unstandardized
Coefficients
Beta
Std. Error
0.575
0.188
0.217
0.041
0.147
0.043
0.137
0.043
0.170
0.036
0.169
0.039
Beta
0.236
0.153
0.149
0.211
0.188
Standardized
Coefficients
t
3.057
5.251
3.429
3.146
4.747
4.380
Sig.
0.002
0.000***
0.000***
0.002**
0.000***
0.000***
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typically, are very busy, so they may think about the economic standpoint (ecoconscious) where they can spend less time and travelling costs to get the high-end
goods they want. Consequently, the closer the shop, the more purchasing frequency
occurs. This fundamental finding corresponds with Shafie and Rennie (2012) and
Blackwell et al. (2007).
Consumers trust (CT) weighed 0.169 unit (t=4.380, p=0.0001) was positively
significant at 1 percent. The result suggests that trust worthiness plays an important role
in enhancing consumption. Thus, it can be concluded that Hypothesis 7 is accepted; as
the vast majority of academic research worldwide has recently found. A previous study
of Janssen and Hamm (2012) reported that consumers were more likely to pick organic
food with certified labels rather than unmarked. This result is similar to the finding of
Roitner-Schobesberger et al. (2008) who announced that the presence of a third party
certified label together with organic goods would raise consumers confidence and
subsequent consumption.
Consequently, each addition of HC leads to an increase of the IT by 0.217 unit
holding other variables constant. If EL increases one unit, IT increases by 0.147 units
holding other variables constant. For each 1 unit increase in FS, consumers were
expected to increase their purchasing intention of 0.137 units. For each unit increase in
AC, consumers intention is expected to increase 0.170 units. Consumers intention will
increase on average by 0.169 unit each 1 unit increases in CT, net of the effect of
change due to HC, EL, FS, and PA. For this, if all variables are zero, then intention to
purchase is 0.575 units, which does not make any sense; this model is not applicable for
all variables at zero. Regression analysis indicates that HC has the utmost impact on
organic purchasing intention (t=5.251, p<0.01, = 0.236). AC is the second mandate of
vital selected factor on intention (t=4.747, p<0.01, =0.211). The third impact factor is
CT (t=4.380, p<0.01, =0.188) while EL and FS has a lower impact followed by
(t=3.429, p<0.01, =0.153) and (t=3.146, p<0.01, =0.137), respectively.
During data collection, respondents were asked five statements about what
influenced them to purchase organic goods. Based on respondents age, three
generations was defined: (1) generation Y aged 18 years to 35 years, (2) generation X
aged 36 years to 50 years and (3) baby boomers aged 51 years to 64 years. The majority
of respondents were generation Y (90%), generation X (7%) and baby boomers (3%),
respectively. Pertaining to the five statements, about 92 percent of generation Y
consumed organics for the purpose of healthiness. They thought that consuming organic
products could offer better health benefits than non-organic products. The second
reason behind consumers thinking concerned pesticide usage. Presumably, consumers
believed that most agricultural products used chemicals to preserve the food or generate
more output; however, they had a positive attitude to organic goods in that there was no
pesticide used in the production process. While other reasons such as flavor, freshness,
and eco-conscious (distance from shop to house) were subsequently rated. It can be
implied that the main reason behind why consumers are now considering organic goods
in Cambodia are health issues and the food being free of pesticides.
V.
CONCLUSION
This research found that health consciousness is the most important issue in consumers
intention to purchase organic goods. The majority of Cambodian citizens are staying on
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