Effect of utilitarian and hedonic values on consumer willingness to buy and to pay for organic olive oil in Tunisia

Abstract

PurposeThis paper aims to study the influence of organic food perceived values (utilitarian vs hedonic) on consumer willingness to buy and willingness to pay in a developing country.Design/methodology/approachThis paper utilized a survey of 467 Tunisian consumers of organic olive oil. Data were analyzed using structural equation modeling (SEM) to test the reliability and validities of constructs, as wells as model fit and the structural model.FindingsThe findings indicate that both utilitarian and hedonic values have significant influence on consumer willingness to buy and to pay for organic olive oil. The hedonic value has a stronger influence on willingness to buy while the utilitarian value has a stronger influence on willingness to pay.Research limitations/implicationsThis study contributes to knowledge regarding the relationships between organic food perceived value and consumer willingness to buy and to pay. Findings provide clear ways for practitioners to communicate the perceived values of their organic foods in order to increase their consumption.Originality/valueThis paper is one of the rare studies that focuses on willingness to buy and to pay for organic food in a developing country. In addition, it is a first attempt to test the consumer perceived values of organic olive oil in the context of one of the biggest producer countries of this type of food.

What motivates consumers to purchase organic food in an emerging market? An empirical study from Saudi Arabia

“…In terms of organic food, these values can be derived from the greater level of freshness inherent in the product, the better taste and the feelings of consumers that they are doing a good thing both for the environment and their own health (Petljak et al , 2017). Other researchers have confirmed that experience confers a sense among consumers that they are doing the right thing, as well as enjoying products that are fresh and untainted by chemicals (Anastasiou et al , 2017; Ghali, 2020; Lee and Yun, 2015). Ghazali et al (2017) added that the hedonic value of a product is a major factor in driving the purchasing patterns of consumers.…”

“…Consequently, the greater the perception of the value of organic produce, the greater the likelihood of intention or affective behaviour in regard to buying this produce (Chen, 2010; Tsai et al , 2012). Ghali (2020) stated in that organic produce can instigate both hedonic and utilitarian values. These values can therefore to be said to drive consumers' behaviours and can guide their decision whether to buy such goods (Nejati and Moghaddam, 2013).…”

“…These values can therefore to be said to drive consumers' behaviours and can guide their decision whether to buy such goods (Nejati and Moghaddam, 2013). Lee and Yun (2015) and Ryu et al (2010) highlighted the influence the value of organic food; however, little research has empirically investigated the influence of utilitarian and hedonic values on consumer intention and purchasing behaviour in emerging markets (Ghali, 2020).…”

“…Consumers are becoming increasingly concerned about the environment, and their purchasing behaviour often reflects their sensitivity to ecological matters (Koo et al , 2015; Ghali, 2020). The recent desire to purchase and consume organically produced food has altered many people's buying patterns (Scuderi et al , 2019; Mohammed et al , 2020; Watanabe et al , 2020).…”

Consumers preferences on nutritional attributes of dairy‐alternative beverages: hedonic pricing models

“…Hedonic approach has been applied in many research areas to measure consumer's willingness to pay for the products. For example, Ghali (2020) applied structural equation modeling to explore the influence of organic food perceived values (utilitarian vs. hedonic) on consumer willingness to buy and willingness to pay for organic oil in a developing country and found that both utilitarian and hedonic values have significant influence on consumer willingness to buy and to pay for organic olive oil. Nepal, Rai, Khadayat, and Somanathan (2020) used hedonic pricing model to analyze the characteristics that affect consumer purchasing decisions on house units in Nepal based on sub‐sample of nationally representative household survey data from urban areas as well as primary data collected from one of the metropolitan cities.…”