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ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS COPY RIGHT © 2012 Institute of Interdisciplinary Business Research 98 MAY 2012 VOL 4, NO 1 THE MAIN FACTORS INFLUENCING PURCHASE BEHAVIOUR OF ORGANIC PRODUCTS IN MALAYSIA ZEINAB SEYED SALEKI 1 , SEYEDEH MARYAM SEYEDSALEKI 2 1 MBA student, GBS, Multimedia University of Malaysia 2 Master of Economics, Tehran University of Iran Abstract This paper attempts to highlight the main factors have potential affect purchasing behaviour in term of organic food. For this purpose several articles have been reviewed. Besides, some famous theories such as Theory of Reasoned Action (TRA) (Ajzen&Fishbein, 1980) and the Theory of Planned Behavior (TPB) (Ajzen, 1991) as basic theories are applied to propose a new framework. Keywords: Environmental Concern, Attitude, Organic Knowledge, Green Environment, Subjective Norms, Organic Food, TRA, TPB, Green Purchasing Behavior 1. Introduction The story about the environment is not new, as indeed, destructing the environment has always been a part of human life, which has influenced human life at both individual and community level (Khwaja, 2008). Activities such as production, logistic, sourcing, marketing and branding has shown a huge negative impact on the environment; even to be known as the major source of environmental problems (Eltayeb, et al., 2010). This matter did not only have an effect on consumer health and wellbeing globally, but also on their choices, purchases, perception, and preferences (Sarigoll, 2009). Due to this, environmental issue has been the main focus during the past decades. The issue has been sensed by people all around the world, when it is observed that respondents mostly are concerned or very concerned about these existing problems (Diekmann&Franzen, 1999; Dunlap &Mertig, 1995). According to Schlegelmilch et al. (1996), environmental concerned consumers‟ needs have led companies and businesses to opt for green marketing. Green buying (purchasing) is a significant tool in the change to sustainable green and environmentally friendly consumption and production and can include a broad spectrum of environmental issues consisting of cutting down CO2 emissions. To reach a sustainable future, the world‟s society, public, and private sector are commanded to perform green purchasing (IGPN, 2009). Green buying behavior is known for the consumption of goods and products that are recyclable/reusable, beneficial to the environment, and/or being responsible to the environmental concern(Lee, 2009). The first publication about green consumer behaviour appeared during the 1970s. The interest of researches about environmental issues have been increasing since the early 1970s (Kilbourne, et al., 2002). Usually green products are seen as items which have insignificant influence on the environment throughout their production process. Such items exist in all categories of products, such as food, electronics, clothing, PC, buildings, hotels, and vehicles. Green products are usually indicated by their packaging, which contains wordings such as natural,

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VOL 4, NO 1

THE MAIN FACTORS INFLUENCING PURCHASE BEHAVIOUR OF ORGANIC

PRODUCTS IN MALAYSIA

ZEINAB SEYED SALEKI1, SEYEDEH MARYAM SEYEDSALEKI

2

1MBA student, GBS, Multimedia University of Malaysia

2Master of Economics, Tehran University of Iran

Abstract

This paper attempts to highlight the main factors have potential affect purchasing behaviour

in term of organic food. For this purpose several articles have been reviewed. Besides, some

famous theories such as Theory of Reasoned Action (TRA) (Ajzen&Fishbein, 1980) and the

Theory of Planned Behavior (TPB) (Ajzen, 1991) as basic theories are applied to propose a

new framework.

Keywords: Environmental Concern, Attitude, Organic Knowledge, Green Environment,

Subjective Norms, Organic Food, TRA, TPB, Green Purchasing Behavior

1. Introduction

The story about the environment is not new, as indeed, destructing the environment has

always been a part of human life, which has influenced human life at both individual and

community level (Khwaja, 2008). Activities such as production, logistic, sourcing, marketing

and branding has shown a huge negative impact on the environment; even to be known as the

major source of environmental problems (Eltayeb, et al., 2010). This matter did not only have

an effect on consumer health and wellbeing globally, but also on their choices, purchases,

perception, and preferences (Sarigoll, 2009). Due to this, environmental issue has been the

main focus during the past decades. The issue has been sensed by people all around the

world, when it is observed that respondents mostly are concerned or very concerned about

these existing problems (Diekmann&Franzen, 1999; Dunlap &Mertig, 1995).

According to Schlegelmilch et al. (1996), environmental concerned consumers‟ needs have

led companies and businesses to opt for green marketing. Green buying (purchasing) is a

significant tool in the change to sustainable green and environmentally friendly consumption

and production and can include a broad spectrum of environmental issues consisting of

cutting down CO2 emissions. To reach a sustainable future, the world‟s society, public, and

private sector are commanded to perform green purchasing (IGPN, 2009). Green buying

behavior is known for the consumption of goods and products that are recyclable/reusable,

beneficial to the environment, and/or being responsible to the environmental concern(Lee,

2009). The first publication about green consumer behaviour appeared during the 1970s. The

interest of researches about environmental issues have been increasing since the early 1970s

(Kilbourne, et al., 2002).

Usually green products are seen as items which have insignificant influence on the

environment throughout their production process. Such items exist in all categories of

products, such as food, electronics, clothing, PC, buildings, hotels, and vehicles. Green

products are usually indicated by their packaging, which contains wordings such as natural,

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recyclable, organic, environmentally friendly, and biodegradable.One of the basic needs of all

humans all over the world is food. According to Fraser (2001), there are three factors of

concern in choosing food products by consumers: protection of animals and environment, and

food safety.

During the past decades, there were significant changes in Malaysian food industry due to the

changes in economic and demographic structures. Malaysia is a multi-cultural society

consisting of Malays, Chinese, and Indians. A wide range of foods has been produced to

satisfy the wants and needs of the various ethnic groups. Malaysians‟ concerns toward food

consumption and environmental issues are increasing day by day. They are going to change

their consumption pattern in order to choose the food that is eco-friendly and healthy.

Malaysian consumers are becoming more interested in environmentally friendly products,

such as organic food, raising the demand against a limited supply (Ahmad &Juhdi, 2010).

The limited supply may be associated to the lack of clear understanding among Malaysian

marketers on consumer attitudes and behaviors toward this emerging phenomenon. Despite a

large number of empirical literatures explaining the multi - cultural food consumption

behaviors‟ among the different ethnic groups in Malaysia, the uncomfortable reality remains

that knowledge on Malaysian consumers‟ attitudes and behaviors‟ towards eco- friendly

organic food is not well understood.

However, even though a vast sort of studies have been done in this direction, their focus and

attention are more on developed countries‟ consumers such as US or Europe, where there are

very little socio-demographic differences in organic food acceptance and consumption

behavior.

Moreover, most of these researches paid much attention to the demographic characteristics

of organic food purchasers (Hughner, et al., 2007). Therefore, the focus on factors such as

organic knowledge, attitudes, environmental concern, subjective norms, price consciousness,

and familiarity of these consumers in buying organic foods in Asia and Malaysia in particular

has been neglected.

With these in mind, coupled with the argument that the ability to attract a new customer base

requires a true understanding of their needs and wants (Kotler, 2003), This research tries to

identify the main factors influencingorganic food purchasing behavior.

2. Review of literature

2.1 Fundamental Behavior Theories

In order to discover why customers purchase organic food, it is necessary to understand their

purchasing behaviors and trends. In order to comprehend the reasons behind this trend,

theories like the Theory of Reasoned Action (TRA) (Ajzen&Fishbein, 1980) and the Theory

of Planned Behavior (TPB) (Ajzen, 1991) have been utilized by researcher. Many of the

studies had been carried out in different circumstances, for instance the use of cars with low

carbon emission (Lane & Potter, 2007), textile use and disposal (Morgan &Birtwistle, 2009),

and conserving energy (Gupta & Ogden, 2009). Nonetheless, evidence from the past proves

that the Theory of Planned Behavior had also been used in numerous organic studies

(Aertsens, et al., 2009; Arvola, et al., 2008; Tarkiainen&Sundqvist, 2005; VErmeir&Verbeke,

2006). Thus, in line with the previous researches, TPB is used as the theoretical framework in

this study.

Ajzen (1991) stated that in TRA, the behavior of the customers is studied by assessing their

intention behavior, whereby the intentions are categorized as the amount of willpower a

person puts into doing something, and which consists of motivations (as cited in Smith

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&Paladino, 2010). Here, the precursor of behavior is intention; therefore, it can be used to

predict the behavior. The TPB model is further altered by adding “perceived behavioral

control” to the TRA Model in order to handle circumstances in which consumers are

restricted from buying due to limited availability of the product. In such cases, perceived

behavioral control is the customer‟s personal view of his or her capability to carry out a

certain behavior (Ajzen, 2002). Regarding organic products, one of the elements of perceived

behavioral control is price, because it has the ability to limit the purchases of the consumer,

therefore backing up the use of this model in this research.

2.2 Theory of Planned behavior

Throughout the years there have been different suggested theories explaining consumer

behaviors. Some originate from social sciences: Psychology, economics, and sociology.

Others focus on the influences of variables in marketing, and emphasize the influences of

external elements, like advertisement, physical product differentiation, promotion, packaging,

and retail, availability, direct selling, point of sale display, etc. (Ehrenberg &Goodhart, 1979).

The significances are greatly extensive, and consider personal as well as environmental

variables (e.g. Nicosia, 1966; Howard &Sheth, 1969; Engel, et al., 1995).

Even though these theories compare and give a perception of alternative brands and products,

they fail to clarify how these comparisons are converted into decisions to purchase. To

explain this process and to gain an inclusive theory of consumer behavior, numerous

researchers sought out researches in the field of social psychology focusing on attitude

formation (Ajzen&Fishbein, 1980). A group of theories commonly known as expectancy-

value models (e.g. Rosenberg, 1956; Fishbein, 1963) seemed to be of greatly relevance as

they gave a theoretical connection between factors of evaluation and the concept of attitude.

Furthermore, these models developed the popular perception, in which the satisfaction from a

product which a customer expects (and therefore the buying of that product) is based on their

beliefs that the product is capable of fulfilling particular functions and that it meets their

needs. Within the previous four decades, expectancy-value model has grown from the initial

Fashion‟s (1963) consumer expectancy-value behavior model to the theory known as the

theory of reasoned action (TRA) (Ajzen, 1985; 1991).

In Figure 2, the TPB model is displayed in a symbolic way, in which it shows that every

element that influences intention, such as attitude to behavior (AB), subjective norm (SN)

and perceived control (PBC) are each in their own way, affected by fundamental belief

structures. These are known as outcome beliefs, normative beliefs, and control beliefs that are

respectively associated to AB, SN, and PBC.

Figure 2: Theory of planned behavior

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2.3 Green Buying and Environmental Quality in Malaysia

Green buying (purchasing) is a significant tool in the change to sustainable green and

environmentally friendly consumption and production and can include a broad spectrum of

environmental issues consisting of cutting down CO2 emissions. To reach a sustainable

future, the world‟s society, public, and private sector are commanded to perform green

purchasing (IGPN, 2009). In Malaysia the quality of river and marine waters are within

normal levels. From the 146 river basins that have been observed, 7 rivers (4.8%) had been

identified as polluted. This figure was an improvement compared to the 15 polluted rivers

(10.3%) observed in 2005. However, because of the haze episodes that occurred from July

until October in 2006, the air quality dropped marginally compared to the year before

(Department of Environment, 2006). Three sources, which contribute to the pollution of the

air, originate from industries (including power stations), vehicles, and irresponsible acts of

open burning within the country (Department of Environment, 2006). The quantity of waste

had increased with a total of 1,103,457.06 metric tons created in 2006, compared to 2005‟s

548,916.11 metric tons. Gypsum, oil and hydrocarbon, dross, mineral sludge, heavy metal

sludge, and e-waste are the main types of waste generated in Malaysia. The quantity of

scheduled waste produced in industries was ranked as follows: chemical industry (42.7%),

electronic industry (21.6%), automotive industry/workshops (17.2%), metal industries

(7.1%), pharmaceutical industries (2.9%), and other industries (Department of Environment,

2006). The degradation of the environment in Malaysia is expected to worsen if the current

trend of economic growth and negligent consumption pattern does not stop. Green buying is

still a new idea in Malaysia (MGPN, 2003). Till now, texts about the promotion of green

purchasing to individual Malaysian customers are scarce. Yet, it is noticeable that large

companies, which have their main offices in the US, UK, and other parts of Europe, are

promoting the go-green campaign. On the other hand, local industries are still reluctant and

have the “wait and see” attitude (MGPN, 2003). In his speech in the First International

Conference on Green Purchasing, the President of Green Purchasing Network Malaysia

(MGPN) advised that the government must be able to persuade large companies to take an

initiative in carrying out green buying. Put another way, purchasing „green‟, and leading by

example can speed up the promotion of green purchasing.

2.4.Green and Organic Food

Food which are safe to use, have fine quality, are nutritious, have concerns for the welfare of

animals and are grown and produced in line with the principles of sustainable development,

are known as green food (Liu, 2003). Green foods include two categories; the first category

allows us to utilize a specific amount of chemicals, however the second category consists of

organic food. „Organic‟ means products in which their production did not utilize pesticides or

fertilizers (Hutchins &Greenhalgh, 1997). No worldwide definition for organic exists since

various countries have different standards for certifying foods as being „organic‟ (Baltas,

2001). Organic food was described by Burch (2001) as “food guaranteed to have been

produced, stored, and processed without adding synthetic fertilizers and chemicals” (as cited

in Lockie, et al., 2002). Products which are listed as organic are produced in line with

standard rights in all areas of production and are awarded a certificate by an industrial body

(Lyons, et al., 2001). Chinnici, D‟Amico, and Pecorino (2002) defined organic products as

food which is cultivated via a process that is environmentally friendly.

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The term “organic” indicates the method by which agricultural products are grown and

processed (USDA, 2008). Certain specific requirements need to be followed and kept in order

for the products to be certified as being “organic”. Products which are labeled as organic are

products, which are grown and processed and are in all areas of production in line with the

standards right, and are awarded a certificate by a body of the industry (Lyons, et al., 2001).

The United States Department of Agriculture (USDA) has created an organic certification

program which obliges all organic food to abide to the strict standards set by the government,

which regulate the way that they are grown, processed, and handled (Staff, 2011). The

Organic Foods Production Act (OFPA) and the National Organic Program (NOP) ensure

customers that the organic agricultural products bought by them are produced, processed, and

certified to be in line with the national organic standards (USDA, 2008).

As Yi (2009) claimed, organic food is basically developed to keep the integrity of the food,

excluding artificial ingredients, preservatives, or irradiation. There has been noticeable

growth in the organic industry within the previous few years and the average yearly increase

in the sales of organic food is anticipated to go up by 20 to 24% in the next ten years

(Dimitri& Richman, 2000).

Organic is an upcoming era in many studies (Shinnici et al., 2002; Davies, Titterington&

Cochrane, 1995; Grunert&Juhl, 1995; Hill &Lynchehaun, 2002; Padel& Foster, 2005).

However, there have been only a few studies carried out in the Malaysian market (Ahmad

&Juhdi, 2010a; Ahmad &Juhdi, 2010b; Salleh, et al., 2010).

The trends of consuming food have changed in Malaysia as a result of the economy‟s

extreme growth over the past 20 years; an annual 6% growth in the economy since the year

2000 has caused the agriculture food industry to rapidly expand as the demand for such

products increased. The extreme growth of Malaysian individual‟s income and fairly high

increase in the population altered the customers preferred food choice to healthier and more

nutritious food. Thus, people ask for a healthier, safer, environmentally friendly, hygienic,

and high quality food (Abdul Rahim, 2009). Customers in Malaysia have little attention to the

safety of the food; but they pay more attention to the healthiness of the food (Shaharudin, et

al., 2010). Abdul Rahim (2009) discovered that in Malaysia, customers that pay attention to

the healthiness of their food and its effect on the environment bear more positive attitudes

towards food that is green. Malaysia has some green stores that promote green food and green

technology, products that are environmentally friendly and green services. These stores also

give customers awareness regarding the green concept. For instance, the Justlife Group Sdn.

Bhd.; which is an organic retail franchise that promotes green products, recycling activities,

and endeavors to work with nature in sustainable growth. In addition, the Eco Green Organic

Shop that began its activities in the year 1997 operates an organic shop, organic café, and

organic restaurants. They promote organic food, which is good for our health and long lasting

sustainability. Another example of agro-based retailers is The Body Shop, which produces

and sells products that are not tested on animals. They are against the testing of products on

animals in the cosmetic industry and promote natural materials. The Body Shop aims to

reduce the environmental impact by using plastic bottles made completely out of recycled

materials, replacing all of their carrier bags with completely organically grown cotton, and

increased the recycled materials in their gift packs (Teng, et al., 2011).

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2.5.Organic Food’ Customers

Based on Allen and Kovach (2000), the production of organic food is part of the “green

consumerism” movement, which kicked off in the 1980s. Organizations and customers that

promote green consumerism wish to use the impact of the market to cut down the damages to

the environment caused by the increasing rate of consumption worldwide.

Customers of organic food can be classified into: a) Greens, these people hold interest in

protecting the natural environment and ecosystem; b) Food Phobic, these people are

concerned about using pesticides, additives, and chemicals in their food; c) Humanists, these

people are against the agricultural systems and processes of factories; and d) Hedonists, these

people take pleasure in eating good food, and look for improved taste and quality in their

food (Davies, et al., 1995).

The customers of organic food products seem to vary as their motives include both

socioeconomics and psychographic sides (Bellows, et al., 2008; Cicia, et al., 2009). A

number of researches have studied socioeconomic factors such as: sex, the size of the family,

marital status, income, and the level of education. Customers who frequently purchase

organic food products generally seem to be women (Davies, et al., 1995; O‟Donovan

&McCharthy, 2002) and, middle-aged women to be exact (Aguirre, 2007), however men

would pay more than women for these products (Uren~a, et al., 2008). Furthermore, the

younger generation have a positive view towards food that is organic (Magnuss, et al., 2001;

Stobbelaar, et al., 2007), but as their income is limited, they are restricted from purchasing

these products on a regular basis. Some researchers have shown that organic food users

usually live in their family home (Aguirre, 2007). Even with inconsistent results, it is

indicated that buyers who regularly purchase these products have upper –middle income and

education (Aguirre, 2007). Nevertheless, it was uncovered by a survey on the British

customers that most of the customers of organic food (93%) are driven by “health reasons” or

as a result of the fact that the food is “better for the children” (Hutchins &Greenhalgh, 1997).

A smaller 30% stated their concern for the environment as their motive for buying organic

food. The USDA describe organic food as “food that is produced by farmers who focus on

renewable resources and protecting soil and water to improve the quality of life for

generations to come” (Unites States Department of Agriculture, 2002). Hearne and Volcan

(2006) discovered that 84% of customers in Costa Rica, who participated in their survey,

would pay a higher price to help in protecting the environment.

2.6.Green Marketing

The concept of society and marketing can be tracked back in texts written in the 70s and the

80s (Peattie& Crane, 2005), but the idea of social marketing was presented by Kotler and

Zaltman in 1971 (Crane & Desmond, 2001). Kotler et al. (2006) have described marketing as

(a social process in which people or groups of people gain their needs and desires via

creating, offering, and freely exchanging valued products and services with one another”.

Sustainability and green marketing turned into popular terms as the attention on the

environment grew. It was stated by Grant, J. (2007, p.43) that sustainability acts as “the

bridge between business and green” and it is in fact an internal improvement in the

organization. The aim of green marketing is to reduce as much as it can the damages to the

environment, as well as generating economic benefits. Peattie defined green marketing as

“the holistic management process that is accountable for identifying, expecting, and pleasing

the needs of the consumers and the society, in a way that is both profitable and sustainable. In

every company‟s corporate strategies, green marketing can be found with the other traditional

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marketing methods (People, Price, Product, Promotion and Place), which need thorough

market analysis. Green marketing unites industrial ecology and environmental conservation

with business strategy, public policies, and the business strategy of the company. A business

can be titled green from 3 aspects; firm level, by giving value adding processes, going green

at the level of management, and at production level by offering green products (wiser, 1998).

Green marketing was described by Ottman (2006) as the mixture of environmental

conservation and friendliness, with consumer satisfaction. Green marketing is the intention of

the consumers to buy and at times pay a higher price for conserving the environment and

saving the generations to come.

Nonetheless, all green products are not actually successful in the market. The majority of

customer surveys and studies overemphasize the demand of green products than it actually is.

By giving consumers information about environmental conservation and filling the gap

between the actual demand of green products and consumer behaviors, Green products need

to overcome the barriers of traditional marketing to raise the demand for green products

(Wiser, 1998). Davis (1993) claims that green marketers can create and create a

communication message that target the environmental issues by introducing driving and

relevant attitudes‟ methods in advertising, for instance, by stating “you are contributing to the

improvement of the society as a whole”. It was advised by Grant, j. (2007, p.32) that green

marketing‟s responsibility is to teach people and convince them to go green, as it affects and

alters people‟s behaviors and lifestyles. Simula et al. (2009) claimed that today, the term

“green” is broadly used for the latest environmentally friendly and sustainable technologies

and products. The terms that are generally utilized to define business‟ process and products,

which use a lower amount of energy, are recyclable, reduce the waste and pollution, and

maintain natural resources, are: “Green”, “pro-environment”, “sustainability”,

“environmentally friendly”, and “Ecology”.

2.7. Green Consumer Behavior

Antonies&Raaii (1998, p.177) described the behavior of consumers as “Studies related to

attitudes, intentions and decision making processes, aimed to clarify and foresee such

behaviors”. Ottman (1993, p.27) described green consumer as “people who search for and

support products that fulfill their requirements, and that have less influence on the

environment”. As stated by Ottman (1993, P.3), Judy Mey believes that “Habits are decided

in early life”, children will make more desirable choices if they are educated at an early age.

Consumers become more doubtful about organizations that emphasize on environmental

theme in their messages. Therefore, an organization should create a long term strategy with

care (Darling, et al., 2009). As stated by Kreidler, N. B., & Joseph. M., S. (2009), Anderson

& Cunningham claim that their studies showed that income and education have a positive

relation and a direct influence on behaviors that are considered green. Lassaye (2001)

indicated that the demand in niche markets for green products and foods packed with

recyclable material has been developed due to the customers who are environmentally aware.

A consumer who is aware about the environment is likely to make a green buy (Peattie,

2001). It was indicated in surveys that European customers desire green products and would

pay for their green characteristics. Due to their green concerns, 92% of European

multinational companies have incorporated environmentally sustainable programs (Peattie&

Crane, 2005). Ottman (1993, p.27) agrees that green customers can be driven by giving an

additional cost effectiveness or a green benefit in the product. Peattie (2001) claims that the

behavior of consumers can be generated by emphasizing on the benefits of green products

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compared to their conventional competitors that contribute towards environmental issues. As

indicated in the research of Gupta, S. & Ogden, T. D., (2009), Mintel (2006) stated the

willingness of the consumer to pay higher for a product that is green, and the concern of the

customer regarding pollution and recycling, is to make up his attitude and create the

consumers “Green buying behaviors”. Attitude was described by Antonies, G &Raaij, V. F.

W. (1998, p.197) as a person‟s particular characteristic to act and view the world based on his

own default desired and un-desired way. Kardash‟s 1976, p.159, also cited in Macdonald, S

& Oates C. J., (2006), “all customers are potential green customers”. When a customer is

allowed to choose from two products that are the same, the customer will desire the one that

is environmentally friendly. As stated in Kreidler, N. B., & Joseph. M., S. (2009), Arbuthnot

1977 presented the fact that in the behavior of customers; no noticeable relationship exists

between the sex of the consumer and their green behaviors. Antonides, G., & Van Raaij, W.

F. (1998) also claims that the customer‟s behaviors can be altered if the company conveys in

its advertisements the wanted benefits and characteristics of the product or service that are

contingent with the beliefs of their customers. Peattie believes that companies must pay more

attention on rewarding methods in the early levels of customer‟s “habit formation” (Peattie,

2001). Gupta & Ogden (2009) describe reference groups as “groups that has the ability of

effecting the decisions of other people or groups”, they play a key role in dissipating

information regarding the product and influencing people‟s behaviors. In groups, people

make collective decisions rather than individual decisions. It is stated in Gupta & Ogden

(2009) that Kramer and Goldman, 1995 claimed that in groups, consumers enjoy telling

others the positive and negative characteristics of new products (Antonides& Van Raaij,

1998).

Green customers take up and support products that not only meet their requirements, but that

have the least impact on the environment. Each person‟s behavior is created when young, as

“Habits are decided in childhood” (Ottman, et al., 2006). Past studies indicate a direct and

positive effect of a product‟s green label and the behavior of the customer if they have a

reasonable level of education and financial status (Joseph &Kredler, 2009).

Green buying behaviors differ in various countries. Even though green products are present in

Malaysia, the idea of green is still new to the residents of Malaysia. The market for

environmentally friendly products in Malaysia is just starting to develop. As Malaysia is a

multiethnic cultural society, it is logical that green producers must first fully grasp the

behaviors of their customer (Teng, et al., 2011).

2.8. Environmental concern

Grunert and Juhl (1995) describe a customer who is environmentally concerned as a customer

“who knows that the production, distribution, disposal and use of products result in external

costs, and sees such costs negatively and tries to reduce them as much as possible through

his/her personal actions”. Products that are environmentally friendly have been developed

using methods that do not harm the environment; this is on its own the most influential factor

that affects customers who are aware about the environment and its issues.

Based on the studies by Werner and Alvensleben (2011), there is a relationship between the

amount of customers‟ concern for the environment and their motivation to buy products that

are organic. Huamg (1996) pointed that the growth in organic product consumption is due to

a growth in environmental concern in the public. As explained by Staff (2011), a number of

people purchase organic food for environmental reasons, because organic farming procedures

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are developed to help the environment and reduce pollution, and protect the quality of the

water and earth.

2.9. Organic knowledge

Knowledge has a key part in the process of making the decision to buy (Laroche,et al., 2001).

Hill and Lynchehaun (2002) agree with this fact due to their discovery that knowledge is a

major element in affecting the decision to buy products that are organic. Lyons et al. (2001)

indicated that customers explain organic products as natural, unrefined, and unprocessed

compared to other normal products. A study carried out by Hill and Lynchehaun (2002)

portrayed that even though customers know the main factors of organic products, they do not

have enough knowledge about the agricultural processes that are involved in organic

production (Padel& Foster, 2005). Based on the studies by Werner and Alvensleben (2011),

knowledge creates a positive influence on a person‟s viewing habits of buying and using

food. As stated by Pearson, Henryks and Jones (2011), related to organic food, there is a

difference between how customers view its great health factors and the evidence that

scientists have reached. The authors explained further that fresh fruits and vegetables are

significantly important to the organic sector because they are the point where numerous

customers enter the organic buying, and make up 33% of organic sales (Pearson, et al., 2011).

2.10. Price Consciousness

Consumers see organic foods as costly compared to normal foods (Radman, 2005; Lea

&Worsley, 2005). Numerous consumers view price to be a major factor in their buy. They

explain further that organic food products must not be more expensive than the normal

alternatives (Magnusson, et al., 2001). This shows that customers need more value for the

money they are paying to justify the high prices (Padel& Foster, 2005). Studies have pointed

out that most of the customers would buy more organic food if they were cheaper in price

(Radman, 2005; Lea &Worsley, 2005). Fotopoulos and Krystalis (2003) pointed out that the

positive attitudes regarding products that are organic boost the willingness to pay.

Specifically, organic product customers agree to pay more, and this indicates that they are

attracted by the organic qualities of the food, despite their higher prices.Put alternatively, the

concern a customer has for the environment may drive them to purchase the product,

however the high prices will restrict their capability to buy. It has been shown in other

researches that people are confronted with a trade-off between purchasing organic food and

saving their money or spending it on buying luxury goods (Tarkiainen&Sundqvist, 2005).

2.11.Quality

The cosmetic qualities of products that are organic are defined as the appearance of the

product. This can consist of insect damage or not having the same size (Thompson &

Kidwell, 1998). As studies have stated that customers do not like the visual appearance of

organic products (Radman, 2005), most people view these effects to be minimal in the choice

for food (Thompson & Kidwell, 1998). Not all products that are organic have a poor

appearance. This shows that a significant factor for marketers to take into account is the

customer‟s views about appearance. It was discovered by Thompson and Kidwell (1998) that

the more visual defects the organic products have, the less probable it was for customers to

purchase them. This brings forth the issue of customer awareness, because it can be hard to

view specific types of damage. For instance, it is usually difficult to see insect damage

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(Thompson & Kidwell, 1998). Another factor determining the quality is taste. Research has

indicated that the customers view food that is organic to taste better and have more flavors

compared to its normal alternatives (Lyons, et al., 2001). McEachern and McClean (2002)

also specifically studied organic dairy products. In their research, the strongest motivating

factor for buying was the improved taste. Lockie et al. . (2002) recommended that the natural

ingredients are usually the main reason behind purchasing organic food. The term natural

content or natural ingredients is related to food which are unprocessed, contain no additives

or artificial ingredients, and are chemical free (Lockie, et al., 2002).

2.12. Subjective Norms

Subjective norms are the viewed social pressure which influences a person to behave in a

certain manner (Ajzen, 1991). Oliver and Bearden (1985) explain that these norms are based

on the reference of the person making the decision, and also their personal desire to act

according to these preferences. Subjective norms have been proved to influence the buying

behavior of people (Ajzen, 1991). Tarkiainen and Sundqvist (2005) claim that attitudes are

communicated between people and thus, people with positive attitudes regarding a product

will affect the attitudes of their surrounding people. As a result of this cross over effect,

subjective norms will be seen as a precursor of attitudes in this study. Among the small

number of studies that studied the subjective norms related to the purchase of organic food, it

was discovered that there is an important relationship between subjective norms and attitudes

(Tarkiainen&Sundqvist, 2005).

2.13.Familiarity

This factor is described as “the number of experiences related to the product the customer has

had before” (Alba & Hutchinson, 1987). Familiarity is especially significant relating to

organic food, because of it is a new term the customers previous experience with these

products are low. Low familiarity can be a determining factor for organic purchases.

Magnusson et al. (2001) discovered that familiarity gave a partial explanation regarding why

small numbers of customers purchased organic goods, despite the fact that they had positive

attitudes regarding organic products. Various other researchers agree with this finding, and

show that customers do not buy products that are organic because they are not familiar with

them (Mathisson&Scholin, 1994).

2.14.Attitudes

As stated by Ajzen (1991), attitudes are the desirable or undesirable evaluations that people

make of particular behaviors. Because attitudes affect intentions, the more desirable the

attitude is, the greater the will and intention to carry out a particular behavior will be

(Tarkiainen&Sundqvist, 2005).

Attitudes are significant because consumers need to understand their attitudes, to be able to

conquer the restrictions they seem to face when buying (Hill &Lynchehaun, 2002). Alwitt

and Pitts (1996) carried out a study which indicated that environmental attitudes do not

influence the organic buying intentions of consumers. Squires et al. (2001) also discovered

that consumers who have a positive attitude regarding the environment are more likely to

make more buys of organic products compared to those who yield negative views. The

socio-demographic profile seems to influence the attitudes of customers and their behaviors

in purchasing and drive them towards food that is organic (Yi, 2009). Tarkiainen and

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Sundqvist (2009) identified the reason as to why customers do not purchase organic food

often, even though they have positive attitudes, is the fact that these ideological attitudes do

not exist as habits.

After reviewing the literature, it seems that this framework in an appropriate framework in

line the objectives of this study. It is important to know any linkage in this framework is

supported by previous studies by famous scholars.

3. Proposed framework

After reviewing the literature, it seems that this framework in an appropriate framework in

line the objectives of this study. It is important to know any linkage in this framework is

supported by previous studies by famous scholars.

4. Conclusion

Regarding current people life style, organic foods is paid much attention because of many

problems such as diseases and green environment. In this regard, Organic Culture,

Environmental Concern, Price, Subjective Norms, Quality, and Familiarity identified affect

Attitudes and thereby purchasing organic food. Besides there are different research by

famous scholars that supports these six mentioned factors have potential influence purchasing

behavior. In another word, it can be concluded Attitude has mediating role in relationship

between these factors and organic food purchasing behavior.

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