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Organic food product purchase behaviour: A pilot study for urban consumers
in the South of Italy
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Abstract
   The aim of this paper is to explain factors that influence organic food purchases of urban consumers in the South
of Italy. To achieve this goal, a multivariate limited dependent variable model has been specified to simultaneously
analyse consumers’ organic food purchases, the intention to purchase organic food products and the level of organic
knowledge. This study uses survey data gathered from 200 consumers in Naples in 2003. Results indicate that consumers
who are more willing to buy organic food products are more likely to buy a larger amount of those products. The
intention to purchase depends on attitudes and organic product knowledge. Moreover, consumers’ attitudes towards
health and environmental benefits provided by organic foods are the most important factors explaining, both, the
intention to purchase and the final decision. Finally, income and organic knowledge positively influences the final
decision to buy organic food products.
   Additional key words: attitudes, intention to purchase, organic knowledge, simultaneous equation model.
Resumen
El comportamiento del consumidor en la compra de los alimentos ecológicos: un estudio exploratorio
para los consumidores urbanos del sur de Italia
   El principal objetivo del trabajo es analizar los factores que influyen en la decisión de compra de los alimentos eco-
lógicos. Para ello se plantea un modelo de ecuaciones simultáneas con variables dependientes limitadas para medir el
proceso de compra de alimentos ecológicos, la intención de compra y el conocimiento de los alimentos ecológicos.
Se han utilizado datos procedentes de una encuesta realizada a 200 hogares en la ciudad italiana de Nápoles en 2003.
Los principales resultados indican que los consumidores más dispuestos a comprar alimentos ecológicos son los que
acabarán comprando mayores cantidades de estos productos. Esta intención de compra depende de las actitudes y del
conocimiento de los consumidores. Además, las actitudes de los consumidores hacia los beneficios para la salud y pa-
ra el medio ambiente de los alimentos ecológicos son los principales factores determinantes, tanto de la intención de
compra como del consumo final de estos productos. Finalmente, la renta y el conocimiento ecológico de los consu-
midores influyen positivamente en el consumo final de alimentos ecológicos.
   Palabras clave adicionales: actitudes, conocimiento ecológico, intención de compra, modelo de ecuaciones si-
multáneas.
   In the European Union (EU), organic agricultural                    region (where Naples is located), the Public Adminis-
products and foodstuffs are covered by Council Regu-                   tration rarely supports communication and commercia-
lation EEC 2092/91 (OJ, 1991). This regulation esta-                   lisation campaigns to promote organic food products
blished a specific Community framework for organic                     (Associazione Italiana Agricoltura Biologica, 2006).
farming and def ined requirements for agricultural                     However, organic agriculture can represent an important
products and foodstuffs bearing a reference to the pro-                alternative agricultural production system for rural
duction methods used in organic farming. This regu-                    areas, such as the region of Campania.
lation has been amended on several occasions, in par-                     To achieve this goal, a multivariate limited dependent
ticular in 1999 (Regulation EEC 1804/99; OJ, 1999),                    variable model has been specified to simultaneously
where the Council extended its scope to cover organic                  analyse consumers’ organic food purchases, the intention
livestock production. In December 2002, new initiatives,               to purchase organic food products and the level of orga-
aiming to develop the market for organic foods and                     nic knowledge. This study uses survey data gathered
improve standards by increasing their efficacy, trans-                 from 200 consumers in Naples in 2003.
parency and consumer confidence, were presented in
the Commission’s communication «European Action
Plan for Organic Food and Farming» (EC, 2004). This                    Material and Methods
communication was adopted in June 2004 and it is
focused on providing information to consumers and                      Behavioural model
other actors in the food chain, about the merits of organic
farming, especially its environmental benef its, and                      The study of organic food purchasing behaviour is
increase consumer’s awareness and recognition of                       difficult because organic food products are available
organic products, including the recognition of the EU                  in the market together with conventional ones and the
logo. In particular, the Action Plan promotes information              purchase decision depends on many factors that can
and promotion campaigns to well-def ined types of                      vary sharply across individuals. Organic food products
consumers, such as the occasional ones to increase                     posses some credence characteristics not directly ob-
consumers’ perception that the quality of organic food                 servable by consumers but which play an important
products is higher than in non-organic ones and con-                   role when shopping. Then, whether consumers decide
sumers’ conf idence in the certif ication system that                  to purchase organic foods will depend on many factors,
guarantee the genuine organic produce.                                 including consumers’attitudes toward these unobservable
   In this context, a consumer-oriented analysis of or-                organic foods characteristics (i.e. environmental pro-
ganic foods is of paramount importance to policy makers.               tection, healthiness).
For them, to have a clear understanding of consumers’                     In the consumer behaviour literature there are some
organic food purchase decisions and the factors ex-                    models with the common goal to define the main factors
plaining consumers’ decisions to buy organic foods                     explaining consumer behaviour. Von Alvesleben (1997)
would be very relevant in order to help them to define                 proposed a general model on food consumer behaviour
and implement the information and promotion campaign                   which established that the forces driving consumer
proposed by the European Action Plan. Therefore, the                   behaviour are product information, product perception
aim of this paper is to analyse the organic food purchasing            and attitudes. First, consumers’ behaviour is deter-
behaviour of consumers and focus specifically on the                   mined by attitudes. The attitudes towards the product
factors influencing organic food purchases, the intention              are formed not only by nutritional and healthy needs,
to purchase and the level of organic product knowledge.                enjoyment, convenience, safety, transparency, environ-
   The study is focused on Italian urban consumers                     mental motives, etc. but also by the product perception.
within a Southern region of Italy (Campania)1. This region             Finally, the perception of a product is the result of the
has been chosen because recent research has indicated                  product information (i.e. knowledge about the product).
that in the South of Italy and particularly in the Campania            In particular, for organic consumer behaviour, Bigné
1
   In Campania, according to data’s published in 2005 by Elenco Regionale degli Operatori dell’Agricoltura Biologica (Regional
list of organic operators, ERAB), there were 1,184 organic farms and 186 organic processing companies. Only 6% of total organic
farms certify their organic production due to the high costs to obtain organic certification and the problems to get into the distribution
channel. However, the organic sector in Campania has increased their market shares in foreign markets and in the institutional
sector, in particular for the introduction of organic foods in schools.
                                       Organic food product purchase behaviour                                      441
(1997) established a conceptual model where «green»              The variables represented in Fig. 1 with square
behaviour is determined by exogenous variables such           boxes are considered endogenous to the model.
as consumers’ socio-demographic characteristics and           Organic food product purchase behaviour depends on
lifestyles and endogenous characteristics such as the         the intention to purchase that is a precursor of the final
level of knowledge and environmental attitudes. The           organic food purchase level. Intention depends on
relationship between exogenous and endogenous varia-          attitudes and knowledge. Moreover, organic knowledge
bles formed a new variable named «ecological impli-           is endogenously determined. The variables represented
cation» that finally induces organic consumer behaviour.      with an oval are the exogenous variables in the model
   In addition, Ajzen and Fishbein (1980), in their theory    which influences the three endogenous ones. The
of reasoned action, and Ajzen (1991), in the theory of        inclusion of these exogenous variables is justified by
planned behaviour, stated that a person’s behaviour (i.e.     the evidence provided by previous empirical studies
purchase, vote, etc.) is determined by his/her intention      on consumers and organic foods describes in the next
to perform this behaviour. For them, the best predictor       section.
of behaviour is intention. Intention is the cognitive
representation of a person’s readiness to perform a
given behaviour, and it is considered to be the imme-         Previous empirical studies on consumers
diate antecedent of behaviour. This intention is deter-       and organic foods
mined by three factors: i) attitudes (considered as
beliefs that a person accumulates over his lifetime), ii)        There is a large body of literature on consumers and
subjective norms (beliefs about what others will think        organic food products. Because organic food products
about behaviour) and, iii) perceived behavioural control      are, in general, more expensive than conventional ones,
(refers to people’s perceptions of their ability to perform   numerous empirical studies has focused on determining
a given behaviour). As a general rule, the more favou-        the maximum price premium consumers are willing
rable the attitude and the subjective norm, and the           to pay for organic products and the factors explaining
greater the perceived control, the stronger the person’s      this premium (Jolly, 1991; Misra et al., 1991; Ott, 1991;
intention should be to perform the behaviour in question.     Govindasamy and Italia, 1998; Sanchez et al., 1998;
Intention is measured as the probability, rated by the        Boccaletti and Nardella, 2000; Gil et al., 2000;
subject itself, that s/he will perform the behaviour.         Loureiro and Hine, 2002; Millock et al., 2002; Sanjuan
   Taking into account the premises stated by these           et al., 2002; Soler et al., 2002; Corsi and Novelli, 2003;
three models, the model of consumer behaviour (pur-           Brugarolas et al., 2005; Canavari et al., 2005; Batte et
chase) for organic food products shown in Fig. 1 has been     al., 2007). On the other hand, many empirical studies
established.                                                  have examined the factors explaining organic foods
                                                              purchasing behaviour. This section is focused on
                                                              describing main findings from this last group of studies
                                       SOCIO-DEMOGRAPHIC      in order to provide evidence on which factors to include
   LIFESTYLES       INFORMATION
                                        CHARACTERISTICS       in the explanation of the three endogenous variables
                                                              of the model: organic food purchases, intention to pur-
                                                              chase organic food and organic knowledge.
   䊲䊲䊲                      䊲                     䊲              The empirical papers analysing the factors affecting
                                                              consumers’ purchase decision for organic foods found
                                                ORGANIC       that the main reasons why consumers buy organic food
   ORGANIC               INTENTION
                                                  FOOD
                                         䊲
Chryssohoidis and Krystallis, 2005; Durham and                       et al., 2004; and Tsakiridou et al., 2006). Findings from
Andrade, 2005; Padel and Foster, 2005). Moreover,                    the later studies indicate that older, more educated con-
consumers’ environmental attitudes are factors determi-              sumers and those living in larger households are more
ning consumers purchase of organic foods (Schifferstein              likely to buy organic food products.
and Oude Ophuis, 1998; Loureiro et al., 2001; Torjusen                  Only the study by Byrne et al. (1991) for US consu-
et al., 2001; Millock et al., 2004; Chryssohoidis and                mers and that of Fraj and Martinez (2003) for Spanish
Krystallis, 2005; Durham and Andrade, 2005; Kuhar                    analysed the intention to purchase organic food. These
and Juvancic, 2005; Padel and Foster, 2005; Verhoef,                 studies found that some consumers’ sociodemogra-
2005). Those papers conclude that the most important                 phic characteristics and attitudes towards organic
motives to buy organic foods are consumers’ attitudes                food products influence the intention to purchase (see
toward health and environmental issues. In general, it               Fig. 1).
can be said that the more favourable health and envi-                   Organic product knowledge is an important factor
ronmental attitudes consumers have, the more likely                  because it represents the only instrument that consumers
they would buy organic food product and with higher                  have to differentiate the attributes of organic products
intensity. In particular, some of the studies have found             from those of conventional ones, and to form positive
that both attitudes influences organic food purchase                 attitudes and quality perceptions toward these products.
(Millock et al., 2003; Durham and Andrade, 2005;                     According to Bigné (1997), organic knowledge is de-
Padel and Foster, 2005) but the health attitudes are                 termined by socio-demographic variables such as
more influential than the environmental ones in consu-               education level and income and psychographic variables
mers’ purchases of organic foods [except for Durham                  (values and lifestyles). In addition, organic knowledge
and Andrade (2005) who found, for USA consumers,                     is affected by information provided by the public admi-
that environment is more influential than health in con-             nistration, mass media, ecological associations and
sumers’ organic purchase decision]. Moreover, some                   shopping site. Thus, the level of organic product know-
studies have found that whether organic food products                ledge will depend on socio-demographic characteristics,
are locally produced also influences consumers decision              lifestyles and information on organic products available
to purchase organic foods (Torjusen et al., 2001; Padel              on the market (see Fig. 1).
and Foster, 2005; and Onyango et al., 2006).                            Finally, several empirical studies on organic foods
   Income has been found to be a factor in explaining                and consumers have been conducted in Italy2. Some of
organic food purchases in some empirical studies con-                them focused on analysing willingness to pay for
ducted in Europe (Torjusen et al., 2001; Millock et al.,             organic foods (Boccaletti and Nardella, 2000; Corsi
2003; Kuhar and Juvancic, 2005; Tsakiridou et al.,                   and Novelli, 2003; Canavari et al., 2005); customer
2006) while income has not been statistically signi-                 satisfaction with organic foods (Asciuto et al., 2003;
ficant in determining organic food purchases, according              Cembalo et al., 2004); and consumers’ store perception
to studies carried out for USA consumers (Loureiro et                with regard to organic foods (Naspetti and Zanoli, 2004).
al., 2001; Durham and Andrade, 2005; Onyango et al.,                 Although none of the Italian empirical studies speci-
2006; Zepeda and Lin, 2007). Findings from the                       fically analysed factors affecting consumers’ purchases
European studies indicate that income positively in-                 of organic food, some of them have studied preferences
fluences organic food purchases, implying that consu-                regarding organic food attributes (Cicia et al., 2002;
mers with higher income are more likely to buy organic               Scarpa et al., 2002); and consumers’ attitudes towards
food products.                                                       organic foods (Canavari et al., 2002; Chinnici et al.,
   Socio-demographic characteristics were found to be                2002; Zanoli and Naspetti, 2002; Saba and Messina,
significant in explaining the decision to buy organic                2003), which provide some information on underlying
foods mainly in empirical studies conducted in USA                   motivations to buy organic foods by Italian consumers’.
(Thompson, 1998; Thompson and Kidwell, 1998; Blend                   Results from the later studies indicate that main factors
and Ravenswaay, 1999; Wessells et al., 1999; Loureiro                underlying consumers’ purchases of organic foods pro-
et al., 2001; Onyango et al., 2006; Zepeda and Lin,                  ducts are: health, environment, and organic food products
2007), while in Europe only age, education and house-                characteristics (nutritional content, taste, appearance
hold size were significant (Millock et al., 2003; Lockie             and locally produce).
2
    We have only included those empirical papers available in English, although there are some studies also in Italian.
                                                                                 Organic food product purchase behaviour                                   443
  OCi = J if µj-1 ≤ OCi*                                                                              teristics are very close to the economic indicators for
                                                                                                      southern Italy (Regione Campania, 2003; ISTAT, 2006).
where µi are the unknown threshold parameters to be
                                                                                                      The sample included 200 consumers, with a confidence
estimated with λ and β. The first threshold parameter
                                                                                                      level of 95.5% (k = 2), and assuming (p = 0.5) the error
is typically normalized to zero (µ1 = 0) in order to esti-
                                                                                                      is 7%. The sample was selected using a stratified random
mate one less parameter.
                                                                                                      sample of consumers by quotas on the basis of age and
    The intention to purchase equation is def ined as
                                                                                                      town districts. The questionnaire was administrated
follows:
                                                                                                      face to face and respondents were the primary food
                                        IP*i = δK*i + αZi + ei                                 [3]    buyers in the household. Interviewers approached the
                 *
where Ki is the consumers’ organic product knowledge                                                  randomly selected individuals asking them a screening
defined below; Zi contains all exogenous variables and                                                question related to whether they were the main household
ei is the error term normally distributed N(0,σ2e ). IPi*                                             food shopper. The questionnaire was designed to
is unobserved. The part observed by the researcher is                                                 analyse consumers’ organic food knowledge, attitudes
whether the individual reports that it is likely to very                                              and purchase behaviour. Then, respondents received
likely that s/he purchases organic food products (inten-                                              questions on three different topics. The first question
tion to purchase), where IPi = 1 means that consumer                                                  was related to their knowledge on organic food products.
reports that it is likely to very likely that s/he purchases                                          The second set of questions was related to organic food
organic food and IPi = 0 otherwise. Observed and latent                                               consumption (consumption level, intention to purchase,
variables are related as follows:                                                                     frequency of purchase, perceived quality, place of pur-
                                            IPi = 1 if IPi* > 0                                       chase, etc.). Finally, several questions on consumers’
                                                                                               [4]
                                                                                                      attitudes towards organic food products and environ-
                                            IPi = 0 if IPi* ≤ 0
                                                                                                      mental aspects were included. The questionnaire also
   Finally, the level of knowledge about organic food                                                 contained questions on socio-demographic characteristics
is defined as:                                                                                        (i.e. sex, family size and composition, age, education
                                                 K*i = Yi + i                                [5]    level, income) and lifestyles. The questionnaire format
where Yi represents the exogenous variables and ξi is                                                 was validated using a pilot survey. Most respondents
the error term normally distributed N(0,σ 2ζ ). K i* is                                               were female (65%) and 15% of respondents were
unobserved, what is observed is the ranking of know-                                                  housewives. The average household size was 2.7 and
ledge given by the individual in the survey:                                                          approximately 46% of the participants had completed
                                                                                                      higher education. Twenty nine percent of respondents
  Ki = 1                  if K*i ≤ µ1 (=0)
                                                                                                      received a monthly income below 600 € and 11%
  Ki = 2                  if µ1 < Ki* ≤ µ2                                                     [6]
                                                                                                      above 2,301 €.
  Ki = 3                  if µ2 < Ki* ≤ µ3
  ..........................................................................                             The organic food product purchases variable (OC)
  Ki = J                  if µj-1 ≤ Ki*                                                               was measured using consumers’ reported level of organic
444                     A. Gracia and T. de Magistris / Span J Agric Res (2007) 5(4), 439-451
purchases on a scale from 1 to 3, where 1 means non-           first variable represents the importance that consumers
purchase or very low, 2 is medium and 3 is a high level        attach to the current pollution situation (POLLUTION);
of purchases. Intention to purchase (IP) was measured          the second variable represents the importance that
by a dummy variable where 1 means that the consumer            consumers attach to the environmental damage problem
reports that it is likely to very likely that s/he purchase    (DAMAGE); and the last variable represents consu-
organic food and 0 otherwise. Finally, organic product         mers’ environmental involvement on a scale from 1 to
knowledge (K) was measured by the consumers’                   5 focusing on whether they dispose of the garbage in
reported level of knowledge from 1 to 3, where 3 indicate      different containers (RECYCLING). The local origin
the highest level of knowledge.                                of the product was indirectly measured by the impor-
   The attitudes towards organic food products were            tance that consumers attach to the local origin of the
measured by two variables. The first variable measures         product when shopping on a 1 to 5 scale, where 5 means
the importance that consumers attach to the health             the greatest importance (ORIGIN). Finally, information
benefit provided by organic food products when pur-            available in the market for organic food products was
chased on a scale of 1 to 5, where 5 means the greatest        measured, indirectly, by asking individuals if they had
importance (HEALTH). The second variable measures              seen organic food products at their shopping site (INFO).
to what extent consumers believe that organic food pro-           Economic and socio-demographic consumers’
ducts have, in general, higher quality than conventional       characteristics included in the analysis were gender,
ones (QUALITY). Attitudes towards environmental                income, occupation, age and education and, except for
aspects were measured by three different variables. The        age, they are dummy variables as defined in Table 1.
                      Factors
                                                                              Variable definition
 Socio-demographic and economic characteristics
Lifestyles were measured by two variables related to             and McFadden, 1998). Therefore, the estimation is
specific dietary patterns. The first variable indicates          done using the Monte Carlo integration following the
the extent consumers are in agreement or disagreement            Hajivassiliou and McFadden’s procedure. The estimation
with following a vegetarian diet. The second variable            was performed using the Proc QLIM in the SAS 9.1
represents the importance that consumers attach to               computer program.
avoid eating food products with additives. Both life-
styles are measured on a scale from 1 to 5, where 5
means strongly agree with following the specific diet            Results
(VEGETARIAN or ADDITIVE FREE).
                                                                    Table 2 presents the parameter estimates, their stan-
                                                                 dard errors and t-values of the multivariate limited
Model estimation                                                 dependent variable model. Correlations between the
                                                                 error terms of Eqs. [1] and [3], [1] and [5], and [3] and
   The model def ined by Eqs. [1], [3], and [5] was              [5] were statistically significant at the 5% level. This
simultaneously estimated instead of independently                means that the simultaneous estimation of the three
because some endogenous variables are also exogenous             equations is justified.
in other equations. Then, the three equations form a                The estimated coefficients, which were statistically
multivariate limited dependent variable model where              significant at the 5% level in the equation «organic
the three error terms (ui, ei and ζi) follow a multivariate      food purchase», are intention to purchase, as the theory
normal distribution with mean zero and variance and              of planned behaviour states, together with income
covariance matrix Ω. The classical estimation of limited         (LOWINCOME), attitudes towards organic food pro-
dependent variable (LDV) models with correlated error            ducts (HEALTH and QUALITY) and environmental
terms is computationally demanding due to the need for           issues (RECYCLING) and the local origin of the
high dimensional numerical integration (Hajivassiliou            product (ORIGIN). Moreover, the threshold parameter
* Respondents who stated that they did not have any knowledge on organic food were dropped in the estimation.
446                     A. Gracia and T. de Magistris / Span J Agric Res (2007) 5(4), 439-451
is positive and significant at the 5% level, which means        organic foods. However, none of the socio-demographic
that the variable indeed follows an ordered sequence.           variables have been statistically significant explaining
Moreover, none of the socio-demographic variables               the intention to purchase.
explain organic food product purchases. As expected,               The positive and statistically significant estimate
the estimated coefficient for the variable LOWINCOME            coefficient for the HEALTH variable indicates that the
is negative and statistically significant, meaning that con-    more consumers believe that organic foods are healthier
sumers with lower income are less likely to buy higher          than conventional foods, the more likely they are to
levels of organic food products. These results also indicate,   buy organic food products. In the same way, consumers’
according to previous studies, that socio-demographic           attitudes towards pollution (POLLUTION) and envi-
characteristics have limited influence on organic food          ronmental damage (DAMAGE) have been positive and
choice. Thus, consumers’ income is still a factor limi-         statistically significant. It means that the more concerned
ting the growth of organic food purchases in urban              consumers are on pollution and environmental damage,
southern Italy and therefore, the expansion of the              the more likely they will be willing to purchase organic
organic food market.                                            food products.
   The positive estimate coeff icient of the variable              As expected, signif icant variables in the organic
«intention to purchase» in the organic food purchase            product knowledge equation are consumers’ socio-
equation indicates that, as Ajzen (1991) states, intention      demographic characteristics, lifestyles and informa-
to purchase is a precursor of purchase behaviour. Then,         tion available in the market on organic food products
intention to purchase organic food products is a pre-           (HIGHEDUC, VEGETARIAN, ADDITIVES FREE
requisite in order to get higher levels of organic food         and INFO). All of these variables have a positive effect
purchases. In addition, attitudes towards organic food          on organic product knowledge. In addition, the threshold
products have a positive and statistically significant          parameter is positive and significant at the 5% level
effect on organic food purchases because the estimate           indicating that the organic product knowledge variable
coefficients for the variables HEALTH and QUALITY               indeed follows an ordered sequence.
are both positive. This means that the more consumers              The positive coeff icient associated with the
believe that organic food products are healthier and            HIGHEDUC variable indicates that highly educated
have better quality than conventional ones, the more            consumers are more likely to report higher organic pro-
likely they are to buy higher levels of organic food pro-       duct knowledge. Both lifestyle variables, VEGETARIAN
ducts. Attitudes towards the environment have also              and ADDITIVE FREE, have a positive and significant
been statistically significant through the consumers’           impact on organic product knowledge, indicating that
attitudes towards their own recycling activities. In            the more importance consumers attach to a vegetarian
other words, the parameter estimate for the variable            diet and/or to avoid eating food products with additives,
RECYCLING has been positive and statistically signi-            the higher the level of organic product knowledge that
ficant. Therefore, consumers who dispose garbage in             they reported. These results indicate that consumers
selective containers are more likely to buy higher levels       who try to practise healthier diets believe to a greater
of organic food products. Finally, the local origin va-         extent that they have greater organic product know-
riable (ORIGIN) has been positive and statistically             ledge. Finally, a positive effect of information provided
significant indicating the consumers which give more            by shopping site (INFO) has been found, meaning that
importance to the local origin of the food product when         consumers who have seen organic food products in
shopping are more likely to present higher levels of            their shopping site report greater organic knowledge.
organic food purchases.                                         It is assumed that they indirectly gather information
   Regarding the intention to purchase equation, as             on organic food product characteristics, and this higher
stated by the theory of planned behaviour, it depends           information, induces higher consumers’ organic product
on attitudes and knowledge. In the case of organic food         knowledge.
products, intention to purchase is determined by atti-             In order to directly assess the effects of the inde-
tudes towards health and attitudes towards the environ-         pendent variables on KNOWLEDGE and INTENTION
ment. The positive parameter estimate for the organic           TO PURCHASE variables (ordinal variables) the mar-
product knowledge variable indicates that consumers             ginal effects are calculated. The marginal effects on
with higher organic product knowledge are more likely           event probability can be calculated, providing a clearer
to report that they have a higher probability of buying         interpretation of the results. In this specific case, and
                                      Organic food product purchase behaviour                                         447
Table 3. Marginal effects of organic food product purchase ordered probit equation
for the continuous exogenous variables, effects are              different containers) and attached more importance to
calculated by means of the partial derivatives of the            the local origin of the food product when shopping have
probabilities with respect to a given exogenous va-              a higher probability of buying higher levels of organic
riable.                                                          foods.
   In the case of dummy variables, the marginal effects             With respect to organic product knowledge, re-
are calculated by taking the difference between the              sults indicate that consumers with higher education
predicted probabilities in the respective variables of           (HIGHEDUC) have a higher probability of reporting
interest changing from 0 to 1, holding the rest constant.        higher levels of knowledge on organic foods. The mar-
The change in predicted probabilities gives a more               ginal effects of healthy lifestyles on the probabilities
accurate description of the marginal effect of a dummy           are as expected. Those consumers who strongly agree with
variable on event probability, than predicting the               following a vegetarian diet (VEGETARIAN) and avoid
probability at the mean level of the dummy varia-                eating food products with additives (ADDITIVE FREE)
ble. The marginal effects for the continuous varia-              are more likely to state a higher level of knowledge on
bles (VEGETARIAN, ADDITIVE FREE, HEALTH,                         organic food products. Finally, the marginal effect of
QUALITY, RECYCLING and ORIGIN) and for the                       the variable INFO indicates that consumers who have
dummy variables are shown in Tables 3 and 4.                     seen organic food products in their shopping place are
   Results indicate that the consumer’s predisposition           more likely to report higher levels of organic knowledge.
to buy organic food products (intention to purchase)
increases the probability of buying higher levels of
organic food products (Table 3). The marginal effect             Discussion
of the variable LOWINCOME indicates that having
lower income decreases the probability of buying higher             The aim of this paper is to explain organic food
levels of organic food products. All the effects of the          product purchase behaviour for urban consumers in
attitudes variables (HEALTH, QUALITY, RECYCLING                  southern Italy. In particular, it was assumed that pur-
and ORIGIN) on the probabilities are as expected be-             chase behaviour for organic foods follows Ajzen’s (1991)
cause they increase the probability to purchase higher           theory of planned behaviour and Bigné model. Then,
levels of organic food products, meaning that consumers          we assumed that organic food product purchase beha-
who believe organic food products are healthier and              viour depends on the intention to purchase and is a
have better quality than conventional ones, show a higher        precursor of the final purchase behaviour. The intention
probability to buy a higher level of organic foods. More-        to purchase depends on attitudes and organic product
over, consumers who recycle (dispose of garbage in               knowledge.
Theory of planned behaviour: organic food                      chases, so, consumers with higher income have higher
purchases                                                      probabilities of buying higher levels of organic food
                                                               products.
   The intention to purchase organic food products                Following previous empirical studies, attitudes
positively influences the final purchase behaviour. This       towards health and environmental benefits provided
means that consumers who report that it is likely to           by organic food products have been included to explain
very likely that they will buy organic food products           organic food purchases. Results indicate that consumers
have a higher probability to purchase higher levels of         who believe that, to a greater extent, organic food pro-
organic food products. In other words, those consumers         ducts are healthier and have higher quality than con-
who are more willing to buy organic food products are          ventional ones are more likely to buy higher levels of
more likely to buy larger amounts of those products.           organic food products. Moreover, consumers recycling
Then, final organic food product purchases are closely         activities positively influence organic food product
related to consumers’ predisposition to buy organic food       purchases. In other words, consumers who state that,
products. Moreover, intention to purchase depends on           to a greater extent, they dispose of garbage in different
attitudes and organic product knowledge. In the case           containers are more likely to buy higher levels of organic
of organic food products, purchases depend on attitudes        food products.
towards health and environmental benefits provided                Finally, as Bigné (1997) pointed out, organic product
by organic food products, together with organic product        knowledge depends on consumers’ socio-demographic
knowledge. In particular, consumers who believe that,          characteristics, lifestyles and information available on
to a greater extent, organic food products are healthier       the organic food market. The only socio-demographic
and are more concerned about pollution and environ-            characteristic influencing organic knowledge is education
mental damage, are more likely to be willing to buy            because higher educated consumers report having higher
organic food products. On the other hand, consumers            organic product knowledge. In this case, the lifestyles
who report higher levels of organic product knowledge          considered are those related to some specific food diets
are more willing to buy organic food products.                 (vegetarian and without additives) which positively
                                                               influence knowledge. Finally, information available in
                                                               the market on organic food products determine con-
Other factors influencing organic food                         sumers’ organic product knowledge. In particular, if
product purchases                                              consumers have seen organic food products in their
                                                               shopping place, this positively influences organic product
   In addition to testing whether organic food products        knowledge.
purchase behaviour of urban consumers in the southern
Italy could be explained by the factors stated in the theory
of planned behaviour, the paper has also attempted to          Research implications
study whether other factors, already mentioned in
previous empirical studies on organic food product                Results from this paper are of great importance be-
purchases, determine Italian consumers’ purchase               cause they provide valuable information on consumers
behaviour for organic food.                                    purchase behaviour of organic food products to help
   Consumers socio-demographic characteristics have            policy makers at European, National and Regional
been included both in intention to purchase and final          levels. Results from this study on a group of European
purchase behaviour for organic food products. Findings         consumers (those living in an urban area in southern
indicate that, as in other empirical studies (Loureiro         Itlay), add to the findings from other European studies
et al., 2001; Durham and Andrade, 2005; Kuhart and             on organic food purchase decision by extending the
Juvancic, 2005; Onyango et al., 2006), few socio-de-           knowledge on factors affecting European consumers’
mographic characteristics explain organic food products        organic food products. Then, policy makers at European
behaviour. This study concluded that for urban consumers       level will be in a better position to design the most
in southern Italy, only income influences final purchase       effective multiannual EU information and promotion
behaviour for organic foods but none of the socio-             campaign proposed in the «European Action Plan for
demographic characteristics affects intention to purchase.     Organic Food and Farming». This information would
Income influences positively final organic food pur-           also be very useful for policy makers when designing
                                         Organic food product purchase behaviour                                       449
their respective organic farming policies for Italy or           titutions should also work to identify and interpret the
for the Campania region.                                         organic demand. In this direction, public support should
    First, it is important to recognize that consumers’          be applied not only through financial facilities and
socio-demographic characteristics have limited influence         subsidies but also it should implement information
on organic food purchases, concerning both the intention         campaigns, promotion actions and enforce control
to purchase or the final decision. Only income positively        systems. In fact, results from this research have de-
influences the final decision to purchase organic food           monstrated that communication campaigns focusing
products. Thus, income is still a factor limiting organic        on the organic products benefits for the environment
food product consumption in southern Italy.                      and for the consumers’ health could stimulate organic
    The most important factors explaining organic food           product consumption and therefore, the market for
product purchases are consumers’ attitudes towards               organic produce. In addition, a control system would
health and environmental benefits provided by organic            reduce the uncertainty and the possible confusion and
foods. Both attitudes positively influence the intention         would create a favourable institutional context where
to purchase and the final decision. Then, the most appro-        different stakeholders can operate. Thus, this policy
priate strategy to enhance organic food consumption              support would reduce the transaction costs originated
in southern Italy is to design communication campaigns           by asymmetric information between supply and demand,
highlighting the benefits of organic food products for           expanding the organic demand.
the whole society, through environmental protection                 These considerations are in agreement with the organic
and health benefits. These informational campaigns               Italian policy, which is based on the «National Action
might make consumers more aware of the environmental             Plan for Organic Food and Farming» enacted in No-
and health benefits provided by organic food products.           vember 2004 by the Italian government. This document
    Finally, organic product knowledge is also an impor-         proposes several objectives and, in particular, some of
tant factor determining organic food purchases, although         them focus on increasing the domestic demand, which
it influences the level of organic food purchase indirectly      include: i) the improvement of knowledge and recognition
through intention to purchase. Consumers who report              of organic food products creating a national logo and
having higher levels of organic product knowledge will           promoting consumers education; ii) the expansion of
be more willing to buy organic food products. Then,              organic products by public purchases made by school
this greater predisposition will result in higher levels         and hospitals; and iii) the establishment of a f iscal
of organic food purchases. Organic knowledge is achieved         policy to slow the rise on prices. Findings from this re-
through consumer’s education, lifestyles related to healthy      search proves that the improvement of knowledge and
food habits (vegetarian and/or additive free diets) and infor-   recognition of organic food products is very important
mation provided in the market on organic food products.          because it has been found that the higher knowledge
                                                                 on organic products reported by consumers, the higher
                                                                 consumers’ willingness to buy organic food products.
Policy implications                                                 Since the «National Action Plan» has been enacted,
                                                                 the Italian organic food sector has started again to grow
   The promotion of organic agriculture constitutes an           and, in particular, the number of the operators in Cam-
important option for the society and for the more fertile        pania has also increased. In this Region, the public
and marginal agricultural areas. This is because it pro-         intervention has been activated by the F Measurement
vides consumers some products with higher nutritional            action 2 of Plans of Rural Development (PSR). The
value that are free of chemical agents, while allowing           aim of this plan is to support the diffusion of production
gradually restoring the natural equilibrium between              methods that reduces environmental impact and to
the different elements of the agricultural system, that          guide consumers’health. Findings from this paper suggest
have been broken by chemical uses producing a relevant           that this Plan should also support communication cam-
negative impacts on the environment.                             paigns on the benefits of the organic products for the
   Moreover, organic agriculture can represent an                environment and the consumers’ health and it should
important alternative agricultural production system             encourage more information on organic foods in order
for rural areas, such as in southern Italy. Thus, the inter-     to enhance organic product knowledge and therefore
vention of public institutions has been oriented to promote      the amount of organic food purchases by urban consumers
organic agriculture in rural areas. However, public ins-         in southern Italy.
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