Professional Documents
Culture Documents
Research Article
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
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.
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
Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions
Pinem RJ 213
Consumers in the South of Italy", Spanish Journal of Saleki, Zeinab Seyed, Seyedsaleki Seyedeh Maryam,
Agricultural Research 5(4): 439-451. Rahimi, Mohammad Reza (2012). "Organic Food
Grankvist, Gunne, Anders Biel (2001) "The Importance of Purchasing Behaviour in Iran", International Journal of
Beliefs and Purchase Criteria in the Choice of Eco- Business and Social Science 3(13): 278-285.
Labeled Food Products", Journal of Environmental Sirieix, Lucie, Paul R. Kledal, Tursinbek Sulitang (2011)
Psychology 21(4): 405-410. "Organic Food Consumers' Trade-Offs Between Local
doi:10.1006/jevp.2001.0234 or Imported, Conventional or Organic Products: A
Han, Sangman, Sunil Gupta, Donald R. Lehmann (2001) Qualitative Study in Shanghai", International Journal of
"Consumer Price Sensitivity and Price Thresholds", Consumer Studies 35(6): 670-678. doi:10.1111/j.1470-
Journal of Retailing, 77(4): 435-456. 6431.2010.00960.x
doi:10.1016/S0022-4359(01)00057-4 Tarkiainen, Anssi, Sanna Sundqvist (2005) "Subjective
Hsu, Shu-Yen, Chiao-Chen Chang, Tyrone T. Lin (2016) Norms, Attitudes and Intentions of Finnish Consumers
"An Analysis of Purchase Intentions Toward Organic in Buying Organic Food", British Food Journal 107(10-
Food on Health Consciousness and Food Safety 11): 808-822. doi:10.1108/00070700510629760
With/Under Structural Equation Modeling", British Food Teng, Chih-Ching, Yu-Mei Wang (2015) "Decisional
Journal 118(1): 200-216. doi:10.1108/Bfj-11-2014- Factors Driving Organic Food Consumption", British
0376 Food Journal 117(3): 1066-1081. doi:10.1108/bfj-12-
Irianto, Heru (2015) "Consumers’ Attitude and Intention 2013-0361
towards Organic Food Purchase: An Extension of Tung, Shih-Jui, Ching-Chun Shih, Sherrie Wei, Yu-Hua
Theory of Planned Behavior in Gender Perspective", Chen (2012) "Attitudinal Inconsistency Toward Organic
International Journal of Management, Economics and Food in Relation to Purchasing Intention and Behavior:
Social Sciences 4(1): 17-31. An Illustration of Taiwan Consumers", British Food
Krauss, S. E., Hamzah, A. H., Juhari, R., & Hamid, J. A. Journal 114(6-7): 997-1015.
(2005). The Muslim Religiosity-Personality Inventory doi:10.1108/00070701211241581
(MRPI): Towards Understanding Differences in the Voon, Jan P., Kwang Sing Ngui, Anand Agrawal (2011)
Islamic Religiosity among the Malaysian Youth. "Determinants of Willingness to Purchase Organic
Pertanika J.Soc.Sci. & Hum 13 (2), 173-186. Food: An Exploratory Study Using Structural Equation
Kriwy, Peter, Rebecca-Ariane Mecking (2012) "Health and Modeling", International Food and Agribusiness
environmental consciousness, costs of behaviour and Management Review 14(2): 103-120.
the purchase of organic food", International Journal of Wahid, Nabsiah A., Elham Rahbar, Tan Shwu Shyan
Consumer Studies 36(1): 30-37. doi:10.1111/j.1470- (2011) "Factors Influencing the Green Purchase
6431.2011.01004.x Behavior of Penang Environmental Volunteers",
Lockie, Stewart, Lyons, Kristen, Lawrence, Geoffrey, Kerry International Business Management 5(1): 38-49.
Mummery (2002) "Eating 'Green': Motivations Behind www.indonesiaorganic.com. August 15th 2017. 20:16
Organic Food Consumption in Australia", Sociologia Taiwan Time
Ruralis 42(1): 23-40. doi:10.1111/1467-9523.00200 www.worldbank.org. August 16th 2017. 20:30 Taiwan
Magnusson, Maria K., Anne Arvola, Ulla-Kaisa K. Hursti, Time
Lars Åberg, Per-Olo Sjödén (2001). "Attitudes Towards
Organic Foods Among Swedish Consumers", British
Food Journal 103(3): 209-227.
doi:10.1108/00070700110386755
Michaelidou, Nina, Louise M. Hassan (2008) "The Role of
Health Consciousness, Food Safety Concern and
Ethical Identity on Attitudes and Intentions Towards
Organic Food", International Journal of Consumer Accepted 21 April 2019
Studies 32(2): 163-170. doi:10.1111/j.1470-
6431.2007.00619.x Citation: Pinem RJ (2019). Organic Food Purchase
Noor, Nor Azila Mohd, Azli Muhammad, Azilah Kassim, Intention: Examining the Influence of Religion on
Cik Zuriana Muhammad Jamil, Norsiah Mat, Norazwa Consumers’ Decisions. International Journal of
Mat, Hayatul Safrah Salleh (2012) "Creating Green Agricultural Marketing 6(2): 206-214.
Consumers: How Environmental Knowledge and
Environmental Attitude Lead to Green Purchase
Behaviour?", International Journal of Arts & Sciences
5(1): 55-71.
Padel, Susanne, Carolyn Foster (2005) "Exploring the Gap Copyright: © 2019: Pinem RJ. This is an open-access
article distributed under the terms of the Creative
Between Attitudes and Behaviour - Understanding Why
Commons Attribution License, which permits unrestricted
Consumers Buy or Do Not Buy Organic Food", British
use, distribution, and reproduction in any medium,
Food Journal 107(8): 606-625.
provided the original author and source are cited.
doi:10.1108/00070700510611002
Organic Food Purchase Intention: Examining the Influence of Religion on Consumers’ Decisions