Impact of Perception on the Purchase Decisions of Organic Food

Abstract

The research paper discusses how the perception of organic food is impacting the purchase decisions of organic food by collecting evidence from Dhaka, Bangladesh. Applying convenience sampling and online survey techniques on a sample size of 100 (n=100), this paper has formulated a model for purchase decision has been formulated with variables namely environmental benefits, food and safety benefits, health concern, trust, education, age, gender and perception of organic food. Availability, Marketing Strategy and Perceived Price worked as moderating variables in the relationship between perception of organic food and perceived price. The research results suggest that the environmental benefits, food safety and benefits, marketing activities, and demographic factors do not have any significant relationship on that of people’s perception of organic food. On the other hand, health concerns and trust are factors that seem to have a significant relationship with perception of organic food. Most consumers who look for and purchase organic food are concerned with wellbeing. Additionally, there are people who believe they are receiving value for their money when they purchase organic food. This suggests that their perception of the value of organic foods is increased by its value for health considerations. Since the paper has established a significant correlation between the perception and purchasing behavior towards organic food, the perception variable can be used to account for purchase intentions. Therefore, improving the public standpoint about organic food will influence consumers' intentions to buy it. The supply chain has a significant impact on the dynamics of consumer perception and purchasing decisions regarding organic food. Along the supply chain, variables such as availability, marketing strategy, and perceived price have a significant impact on consumers' perceptions of organic food. Effective administration of these factors, in conjunction with the consumer perception framework, has the potential to influence purchase intentions and behaviour. It indicates supply chain as a potential area for improvement. Practitioners of supply chain management can strategically position organic products by employing well-crafted marketing strategies and establishing competitive prices. This may effectively enhance consumers' favourable opinions and encourage them to favour organic alternatives.