CONSUMERS’ PURCHASE INTENTION AND WILLINGNESS TO PAY A PREMIUM FOR ORGANIC FOODS: APPLICATION OF THE BINARY LOGISTICS MODEL

Abstract

The consumption of organic food has increased dramatically in recent years because consumers have gained concerns about health, well-being and the environment. However, the increase in consumption is still limited compared to the market potential. This study investigates the factors that influence consumers’ purchase intention and willingness to pay a premium for organic foods. With a sample of 267 consumers surveyed directly in households in Ho Chi Minh City, the hypotheses have been tested by using a logistics regression model. The results confirm that family characteristics, attitude, safety perception and risk barrier are the main factors that significantly influence consumers’ purchase intention and willingness to pay a premium for organic foods. The results of this study provide to regulators and marketers with insights of the key variables driving organic food consumption.