Subjective norms
Hypothesis 1: Influence of organic attitudes on willingness to pay premium price
Dependent variable: Willingness to Pay Premium Price, *p < .05, **p. < .01, ***p < .001, N.S. = not significant
Hypothesis 1: Influence of organic attitudes on willingness to pay premium price.
The hierarchical multiple regression test for H1 examines the influence of attitudes towards organic food on the willingness to pay premium price for it (See table 5). The predictor variable was added to the analysis as the last step of the regression in order to see whether organic attitudes can explain the willingness to pay premium price above and beyond other variables.
Model 5 shows the variable to be statistically significant after all other variables were incorporated into the regression, allowing in this way to control for the effects of any confounding or covariate variables. The regression table shows that organic attitudes are
positively related to willingness to pay (β = .317, p <.001). This proves that consumers with more favorable attitudes towards organic food tend to be more willing to pay premium price for it.
Therefore, we conclude that hypothesis 1 is supported.
5 Gender -.026 N.S.
Age .089 N.S.
Education -.016 N.S.
Income .062 N.S.
Health-consciousness .157 **
Environment-consciousness .061 N.S.
Trend-consciousness -.071 N.S.
Knowledge .120 *
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國立 政 治 大 學
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N a tio na
l C h engchi U ni ve rs it y
Influence of independent variables on attitude towards organic food. This stage of hierarchical multiple regression examines the influence of independent variables on attitudes towards organic food (See table 4). Variables are entered into the regression in 3 steps, taking into account the impact of all the sets of independent variables. Firstly, a set of demographic variables is entered into the regression, allowing us to control for their effects on the dependent variable. Psychological variables (health-, environment- and trend-consciousness) are added next and then thirdly, believes about the product (knowledge and trust in organic food claims) are also incorporated into the analysis.
Hypothesis 2a, 3a and 4a: Influence of health-, environment- and trend-consciousness on attitude towards organic food. The hierarchical multiple regression analysis indicates that H 2a is strongly supported. Model 3 shows that the health-consciousness variable stays highly significant even after all of the other variables are incorporated and taken into account. This proves strong relationship between the health-concerns and organic attitudes. Hence, the more concerned consumers are about their health the more positive attitudes they tend to hold towards organic food (β = .298, p<.001).
Hypotheses 3a & 4a were not supported in any of the models. Thus, neither environment-, nor trend-consciousness has a significant impact on organic food attitudes.
Hypotheses 5a and 6a: Influence of knowledge and trust in organic food claims on attitude towards organic food. Regression examines the influence of believes about the organic food (knowledge and trust in organic food claims) on attitudes consumers hold towards organic food. Hypothesis 5a and hypothesis 6a are both strongly supported. 42 % of the variance in organic attitudes is explained by independent variables. In Model 3 after all variables are
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國立 政 治 大 學
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N a tio na
l C h engchi U ni ve rs it y
incorporated into the regression controlling for ones in the first two blocks, we see that
knowledge is still highly significant at predicting organic attitudes (β = .268, p<.001). Hence, it can be concluded that increased knowledge of organic food indeed results in more favorable attitudes toward organic food.
The same can be said of the trust in organic food claims variable, which has found to be very significant predictor of organic attitudes according to Model 3 (β = .248, p<.001). Having controlled for the demographics and psychological sets of variables, trust in organic food claims still shows high predictive capacity for predicting attitudes towards organic food. Consequently, we can state that the more consumers trust in organic food claims the more positive attitudes they tend to hold towards it.
Influence of independent variables on willingness to pay premium price for organic food. Next stage of the hierarchical multiple regression examines influence of sets of
independent variables on willingness to pay premium price for organic food (See table 5).
Variables are entered into the regression in 5 steps, taking into account the impact of all the sets of independent variables. Following the same pattern as before, when predicting organic attitudes, a set of demographic variables is entered into the regression first, so that we can account for any effects it may have on the dependent variable. Psychological variables (health-, environment- and trend-consciousness) and believes about the product (knowledge, trust in organic food claims and trust in organic labels) are entered within the second and third steps respectfully. Next subjective norms variable is incorporated into the regression to see if it has any significant predictive capacity in predicting the willingness to pay above other variables. Finally, organic attitude variable is added to the analysis to test H1.
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國立 政 治 大 學
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N a tio na
l C h engchi U ni ve rs it y
Hypotheses 2b, 3b and 4b: Influence of health-, environment- and trend-consciousness on willingness to pay premium price for organic food products. Having all of the variables entered to the equation, Model 5 still shows a very significant correlation between health concerns and willingness to pay premium price for organic food. These results suggest that health-consciousness has strong explanatory power over dependent variable, providing support for hypothesis 2b (β = .157, p<.01).
Environment-consciousness is only significant when first added to the regression in model 2 (β = .152, p<.01). However, it quickly becomes insignificant after other variables are entered. Therefore, we fail to reject the null hypothesis and can conclude that environment-consciousness has no significant impact on willingness to pay premium price.
Hypotheses 4b was not supported in any of the models indicating no significant
correlation between the variables. Thus, we can conclude that trend-consciousness do not have any impact on willingness to pay premium price for organic food.
Hypotheses 5b, 6b and 7: Influence of knowledge of organic food, trust in organic food claims and trust in organic labels on willingness to pay premium price for it. Next
regression examines the influence of believes about the organic food (knowledge, trust in organic food claims and organic labels) on willingness to pay premium price for it. Hypothesis 5b and hypothesis 6b are both supported. In Model 5 after all the variables are entered into the regression controlling for their effects on the dependent variable, a significant correlation between the knowledge and willingness to pay still may be observed, providing the support for H5b (β = .120, p<.05). Hence, we can conclude that increased knowledge of organic food and willingness to pay premium price are positively related.
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國立 政 治 大 學
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N a tio na
l C h engchi U ni ve rs it y
According to model 5 trust in organic food claims has proved to be a highly significant predictor of willingness to pay premium price (β = .227, p<.001). The model indicates that trust in organic food claims allow us to predict willingness to pay above and beyond other variables, such as demographics and psychological variables. Thus, the more consumers trust in organic food claims the more positive attitudes they tend to hold towards it.
Additionally, the relationship between trust in organic labels and willingness to pay premium price is highly significant in model 3(β = .137, p<.01) and it stays relatively significant in model 4 (β = .098, p<.05), however, losing its status and becoming insignificant in model 5 after the last variable (organic attitudes) is added to the equation. This indicates complete mediating effect of organic attitudes. Hence, H7 is only partly supported.
Hypothesis 8: Influence of subjective norms on willingness to pay premium price for