CONSUMER PURCHASE BEHAVIOR TOWARDS ORGANIC POTATO IN VIENTIANE CAPITAL, LAO PDR
Keywords:
consumer purchase behavior, information effect, Lao PDR, organic potato, willingness to pay
Abstract
The paper aims to analyze consumer purchase behavior towards organic potatoes in Vientiane Capital, Laos, by estimating the consumer's valuation of organic potatoes relative to conventional potatoes and determining the information effect on an organic potato. This study used the questionnaire to conduct face-to-face interviews in four organic markets in Vientiane Capital; the questionnaire was distributed to 300 samples. The experiment was divided into three treatments: (1) no information (did not provide any information), (2) positive information (the positive impacts of conducting organic agriculture), and (3) negative information (the negative impacts of not conducting organic agriculture). The study findings indicate that shoppers are interested in purchasing a total average price of a 32 percent premium of potatoes over regular potatoes. The mean willingness to pay for organic potatoes through the information treatments shows that the no information treatment is the highest, followed by positive and negative information with the lowest. Besides, the insignificant effect of positive and negative information on purchasing organic vegetables significantly reduces the willingness to pay. It also shows that age, gender, education, income, and household size insignificantly influence willingness to pay. However, the study found that consumers’ preferences for organic are relative to conventional potatoes, but their preferences did not change their value for organic potatoes, even though they were provided positive information. This study suggests that the Lao government should continue to promote organic products and marketing strategies to the consumers in terms of the policy.
Downloads
Download data is not yet available.
References
[1] Diekmann A, Franzen A. The wealth of nations and
environmental concern. Environment and Behavior.
1999;31: 540–9.
[2] Williams PRD, Hammitt JK. Perceived risks of conventional and organic produce: pesticides, pathogens,
and natural toxins. Risk Anallysis. 2001;21(2): 319–
30. https://doi.org/10.1111/0272-4332.212114.
[3] Ragavan N, Mageh R. A study on consumers’ purchase intentions towards organic products. Indian
Journal of Research. 2013;2: 111–4.
[4] Vagneron I, Kousonsavath C, Xong M. Consumer
perceptions of organic food in the Lao PDR. Project
report. European Union; 2015.
[5] Pamai LK. Strategy for Agricultural Development ¯
2011 to 2020 Sector Framework, Vision and Goals.
Vientiane, Lao PDR: Ministry of Agriculture and
Forestry. 2010:67.
[6] Panyakul V. Lao’s Organic Agriculture: 2012 Update.
Project report. Earth Net Found Green Net, Vientiane;
2012.
[7] Bourn D, Prescott J. A comparison of the nutritional
value, sensory qualities, and food safety of organically
and conventionally produced foods. Critical Reviews
in Food Science and Nutrition. 2002;42(1): 1–34.
https://doi.org/10.1080/10408690290825439.
[8] Crinnion WJ. Organic foods contain higher levels of
certain nutrients, lower levels of pesticides, and may
provide health benefits for the consumer. Alternative
Medicine Review. 2010;15(1): 4.
[9] Thøgersen J, Zhou Y, Huang G. How stable is the
value basis for organic food consumption in China?
Journal of Cleaner Production. 2016;134: 214–24.
https://doi.org/10.1016/j.jclepro.2015.06.036.
[10] Hoyer WD, Chandy R, Dorotic M, Krafft M, Singh
SS. Consumer cocreation in new product development. Journal of Service Research. 2010;13(3): 283–
96. https://doi.org/10.1177/1094670510375604.
[11] Zanoli R, Naspetti S. Consumer motivations in
the purchase of organic food: A means-end approach. British Food Journal. 2001;104(8): 643–653.
https://doi.org/10.1108/00070700210425930.
[12] Squires L, Juric B, Bettina Cornwell T. Level
of market development and intensity of organic
food consumption: cross-cultural study of
Danish and New Zealand consumers. Journal
of Consumer Marketing. 2001;18(5):392–409.
https://doi.org/10.1108/07363760110398754.
[13] Boccaletti S, Nardella M. Consumer willingness
to pay for pesticide-free fresh fruit and vegetables in Italy. The International Food and Agribusiness Management Review. 2000;3(3): 297–310.
https://doi.org/10.1016/S1096-7508(01)00049-0.
[14] Yue C, Jensen HH, Mueller DS, Nonnecke GR,
Bonnet D, Gleason ML. Estimating consumers’
valuation of organic and cosmetically damaged
apples. HortScience. 2007;42(6): 1366–71.
https://doi.org/10.21273/HORTSCI.42.6.1366.
[15] Rodriguez EM, Lacaze MV, Lupín B. Contingent valuation of consumers’ willingness-topay for organic food in Argentina. In: 12th
Congress of the European Association of Agricultural Economists – EAAE 2008, Ghent, Belgium.
Research in Argicultural and Applied Economics;
2008. http://dx.doi.org/10.22004/ag.econ.43947.
[16] Mergenthaler M, Weinberger K, Qaim M. Consumer
valuation of food quality and food safety attributes
in Vietnam. Applied Economic Perspectives and Policy. 2009;31: 266–83. https://doi.org/10.1111/j.1467-
9353.2009.01437.x.
[17] Paul J, Rana J. Consumer behavior and
purchase intention for organic food. Journal
of Consumer Marketing. 2012;29: 412–22.
https://doi.org/10.1108/07363761211259223.
[18] Hai NM, Moritaka M, Fukuda S. Willingness to
pay for organic vegetables in Vietnam: An empirical
analysis in Hanoi Capital. Journal of the Faculty of
Agriculture, Kyushu University. 2013;58(2): 449–458.
https://doi.org/10.5109/27378.
[19] Owusu V, Owusu Anifori M. Consumer willingness to pay a premium for organic fruit
and vegetable in Ghana. International Food and
Agribusiness Management Review. 2013;16: 67–86.
https://doi.org/10.22004/ag.econ.144649.
[20] Lim WM, Yong JLS, Suryadi K. Consumers’ Perceived Value and Willingness to Purchase Organic
Food. Journal of Global Marketing. 2014;27: 298–
307. https://doi.org/10.1080/08911762.2014.931501.
[21] Narine LK, Ganpat W, Seepersad G. Demand for
organic produce: Trinidadian consumers’ willingness
to pay for organic tomatoes. Journal of Agribusiness
in Developing and Emerging Economies. 2015;5: 76–
91. https://doi.org/10.1108/JADEE-04-2013-0015.
[22] Paul J, Modi A, Patel J. Predicting green
product consumption using theory of planned
behavior and reasoned action. Journal of
Retailing and Consumer Services. 2016;29:123–
34. https://doi.org/10.1016/j.jretconser.2015.11.006.
[23] Vidogbéna F, Adégbidi A, Tossou R, AssogbaKomlan F, Martin T, Ngouajio M, et al.
Consumers’ willingness to pay for cabbage
with minimized pesticide residues in Southern
Benin. Environments. 2015;2: 449–70.
https://doi.org/10.3390/environments2040449.
[24] Khai HV. Assessing consumer preferences
for organic vegetables: A case study in
the Mekong Delta, Vietnam. Information
Management and Business Review. 2015;7: 41–
7. https://doi.org/10.22610/imbr.v7i1.1137.
[25] My NHD, Van Loo EJ, Rutsaert P, Tuan TH, Verbeke
W. Consumer valuation of quality rice attributes in a
developing economy: Evidence from a choice experiment in Vietnam. British Food Journal. 2018;120:
1059–72. https://doi.org/10.1108/BFJ-05-2017-0277.
[26] Pham TH, Nguyen TN, Phan TTH, Nguyen NT.
Evaluating the purchase behavior of organic food by
young consumers in an emerging market economy.
Journal of Strategic Marketing. 2019;27: 540–56.
https://doi.org/10.1080/0965254X.2018.1447984.
[27] Bhattarai K. Consumers’ willingness to pay for organic vegetables: Empirical evidence from Nepal.
Economics and Sociology. 2019;12(3): 132–146.
[28] Ha TM, Shakur S, Do KHP. Rural-urban differences
in willingness to pay for organic vegetables: Evidence from Vietnam. Appetite. 2019;141: 104273.
https://doi.org/10.1016/j.appet.2019.05.004.
[29] Poyearleng C, Kai Z, Shahriar S, Reakine OPS.
Factors influencing consumers’ purchasing behavior
on organic vegetables: a case study in Vientiane, Lao
PDR. Open Journal of Social Sciences. 2019;7: 199.
https://doi.org/10.4236/jss.2019.72017.
[30] Suanmali S. Determinants of a customer’s
willingness to pay (wtp) for organic fruits and
vegetables: an empirical study in the bangkok
metropolitan area. International Journal of
Trade, Economics and Finance. 2020;11: 71–6.
https://doi.org/10.18178/ijtef.2020.11.4.669.
[31] Wojciechowska-Solis J, Barska A. Exploring the
preferences of consumers’ organic products in aspects of sustainable consumption: The case of
the polish consumer. Agriculture. 2021;11: 1–17.
https://doi.org/10.3390/agriculture11020138.
[32] IFOAM. Why organic ?
https://www.organicseurope.bio/about-us/whyorganic-is-part-of-the-solution/ [Accessed 10th
October 2023].
[33] De Veaux RD, Velleman PF, Bock DE, Vukov AM,
Wong ACM, Burkett C. Stats: data and models.
Boston: Pearson/Addison Wesley; 2005.
[34] Gujarati DN. Basic Econometrics. Prentice Hall;
2022.
[35] Cam O, Karakaya E. Determination of consumption preferences of organic product and factors affecting consumption preferences of consumers in
Siirt province. Journal of Adnan Menderes University Agricultural Faculty [Adnan Menderes Üniversitesi Ziraat Fakültesi Dergisi] . 2018;15: 33–41.
[36] Hanley N, Barbier EB, Barbier E. Pricing nature:
cost-benefit analysis and environmental policy. Edward Elgar Publishing; 2009.
[37] Maloma I, Sekatane MB. Poverty and employment status as determinants of willingness to pay for the
improvement of environmental quality in low-income
neighbourhood: the case of Bophelong Township
(South Africa). Mediterranean Journal of Social Sciences. 2014;5: 691.
[38] Iqbal M. Consumer behavior of organic food: A
developing country perspective. International Journal
of Marketing and Business Communication. 2015;4:
58–67.
[39] Soler F, Gil JM, Sanchez M. Consumers’
acceptability of organic food in Spain:
results from an experimental auction market.
British Food Journal. 2002;104: 670–87.
https://doi.org/10.1108/00070700210425921.
[40] Jayakumar T, Pasupathi G. A study of analysis of
awareness among consumers towards organic food
products with special reference to tiruchirappalli city.
Journal of Composition Theory. 2019;12: 1321–1328.
[41] Depositario DPT, Nayga Rodolfo M J, Wu X, Laude
TP. Effects of information on consumers’ willingness to pay for golden rice. Asian Economic Journal. 2009;23: 457–76. https://doi.org/10.1111/j.1467-8381.2009.02021.x.
[42] Laurico KR, Lee JY, Lee BH, Kim JH. Consumers’ valuation of local specialty coffee: the
case of Philippines. Journal of the Korean Society of International Agriculture. 2021;33: 338–48.
https://doi.org/10.12719/ksia.2021.33.4.338.
environmental concern. Environment and Behavior.
1999;31: 540–9.
[2] Williams PRD, Hammitt JK. Perceived risks of conventional and organic produce: pesticides, pathogens,
and natural toxins. Risk Anallysis. 2001;21(2): 319–
30. https://doi.org/10.1111/0272-4332.212114.
[3] Ragavan N, Mageh R. A study on consumers’ purchase intentions towards organic products. Indian
Journal of Research. 2013;2: 111–4.
[4] Vagneron I, Kousonsavath C, Xong M. Consumer
perceptions of organic food in the Lao PDR. Project
report. European Union; 2015.
[5] Pamai LK. Strategy for Agricultural Development ¯
2011 to 2020 Sector Framework, Vision and Goals.
Vientiane, Lao PDR: Ministry of Agriculture and
Forestry. 2010:67.
[6] Panyakul V. Lao’s Organic Agriculture: 2012 Update.
Project report. Earth Net Found Green Net, Vientiane;
2012.
[7] Bourn D, Prescott J. A comparison of the nutritional
value, sensory qualities, and food safety of organically
and conventionally produced foods. Critical Reviews
in Food Science and Nutrition. 2002;42(1): 1–34.
https://doi.org/10.1080/10408690290825439.
[8] Crinnion WJ. Organic foods contain higher levels of
certain nutrients, lower levels of pesticides, and may
provide health benefits for the consumer. Alternative
Medicine Review. 2010;15(1): 4.
[9] Thøgersen J, Zhou Y, Huang G. How stable is the
value basis for organic food consumption in China?
Journal of Cleaner Production. 2016;134: 214–24.
https://doi.org/10.1016/j.jclepro.2015.06.036.
[10] Hoyer WD, Chandy R, Dorotic M, Krafft M, Singh
SS. Consumer cocreation in new product development. Journal of Service Research. 2010;13(3): 283–
96. https://doi.org/10.1177/1094670510375604.
[11] Zanoli R, Naspetti S. Consumer motivations in
the purchase of organic food: A means-end approach. British Food Journal. 2001;104(8): 643–653.
https://doi.org/10.1108/00070700210425930.
[12] Squires L, Juric B, Bettina Cornwell T. Level
of market development and intensity of organic
food consumption: cross-cultural study of
Danish and New Zealand consumers. Journal
of Consumer Marketing. 2001;18(5):392–409.
https://doi.org/10.1108/07363760110398754.
[13] Boccaletti S, Nardella M. Consumer willingness
to pay for pesticide-free fresh fruit and vegetables in Italy. The International Food and Agribusiness Management Review. 2000;3(3): 297–310.
https://doi.org/10.1016/S1096-7508(01)00049-0.
[14] Yue C, Jensen HH, Mueller DS, Nonnecke GR,
Bonnet D, Gleason ML. Estimating consumers’
valuation of organic and cosmetically damaged
apples. HortScience. 2007;42(6): 1366–71.
https://doi.org/10.21273/HORTSCI.42.6.1366.
[15] Rodriguez EM, Lacaze MV, Lupín B. Contingent valuation of consumers’ willingness-topay for organic food in Argentina. In: 12th
Congress of the European Association of Agricultural Economists – EAAE 2008, Ghent, Belgium.
Research in Argicultural and Applied Economics;
2008. http://dx.doi.org/10.22004/ag.econ.43947.
[16] Mergenthaler M, Weinberger K, Qaim M. Consumer
valuation of food quality and food safety attributes
in Vietnam. Applied Economic Perspectives and Policy. 2009;31: 266–83. https://doi.org/10.1111/j.1467-
9353.2009.01437.x.
[17] Paul J, Rana J. Consumer behavior and
purchase intention for organic food. Journal
of Consumer Marketing. 2012;29: 412–22.
https://doi.org/10.1108/07363761211259223.
[18] Hai NM, Moritaka M, Fukuda S. Willingness to
pay for organic vegetables in Vietnam: An empirical
analysis in Hanoi Capital. Journal of the Faculty of
Agriculture, Kyushu University. 2013;58(2): 449–458.
https://doi.org/10.5109/27378.
[19] Owusu V, Owusu Anifori M. Consumer willingness to pay a premium for organic fruit
and vegetable in Ghana. International Food and
Agribusiness Management Review. 2013;16: 67–86.
https://doi.org/10.22004/ag.econ.144649.
[20] Lim WM, Yong JLS, Suryadi K. Consumers’ Perceived Value and Willingness to Purchase Organic
Food. Journal of Global Marketing. 2014;27: 298–
307. https://doi.org/10.1080/08911762.2014.931501.
[21] Narine LK, Ganpat W, Seepersad G. Demand for
organic produce: Trinidadian consumers’ willingness
to pay for organic tomatoes. Journal of Agribusiness
in Developing and Emerging Economies. 2015;5: 76–
91. https://doi.org/10.1108/JADEE-04-2013-0015.
[22] Paul J, Modi A, Patel J. Predicting green
product consumption using theory of planned
behavior and reasoned action. Journal of
Retailing and Consumer Services. 2016;29:123–
34. https://doi.org/10.1016/j.jretconser.2015.11.006.
[23] Vidogbéna F, Adégbidi A, Tossou R, AssogbaKomlan F, Martin T, Ngouajio M, et al.
Consumers’ willingness to pay for cabbage
with minimized pesticide residues in Southern
Benin. Environments. 2015;2: 449–70.
https://doi.org/10.3390/environments2040449.
[24] Khai HV. Assessing consumer preferences
for organic vegetables: A case study in
the Mekong Delta, Vietnam. Information
Management and Business Review. 2015;7: 41–
7. https://doi.org/10.22610/imbr.v7i1.1137.
[25] My NHD, Van Loo EJ, Rutsaert P, Tuan TH, Verbeke
W. Consumer valuation of quality rice attributes in a
developing economy: Evidence from a choice experiment in Vietnam. British Food Journal. 2018;120:
1059–72. https://doi.org/10.1108/BFJ-05-2017-0277.
[26] Pham TH, Nguyen TN, Phan TTH, Nguyen NT.
Evaluating the purchase behavior of organic food by
young consumers in an emerging market economy.
Journal of Strategic Marketing. 2019;27: 540–56.
https://doi.org/10.1080/0965254X.2018.1447984.
[27] Bhattarai K. Consumers’ willingness to pay for organic vegetables: Empirical evidence from Nepal.
Economics and Sociology. 2019;12(3): 132–146.
[28] Ha TM, Shakur S, Do KHP. Rural-urban differences
in willingness to pay for organic vegetables: Evidence from Vietnam. Appetite. 2019;141: 104273.
https://doi.org/10.1016/j.appet.2019.05.004.
[29] Poyearleng C, Kai Z, Shahriar S, Reakine OPS.
Factors influencing consumers’ purchasing behavior
on organic vegetables: a case study in Vientiane, Lao
PDR. Open Journal of Social Sciences. 2019;7: 199.
https://doi.org/10.4236/jss.2019.72017.
[30] Suanmali S. Determinants of a customer’s
willingness to pay (wtp) for organic fruits and
vegetables: an empirical study in the bangkok
metropolitan area. International Journal of
Trade, Economics and Finance. 2020;11: 71–6.
https://doi.org/10.18178/ijtef.2020.11.4.669.
[31] Wojciechowska-Solis J, Barska A. Exploring the
preferences of consumers’ organic products in aspects of sustainable consumption: The case of
the polish consumer. Agriculture. 2021;11: 1–17.
https://doi.org/10.3390/agriculture11020138.
[32] IFOAM. Why organic ?
https://www.organicseurope.bio/about-us/whyorganic-is-part-of-the-solution/ [Accessed 10th
October 2023].
[33] De Veaux RD, Velleman PF, Bock DE, Vukov AM,
Wong ACM, Burkett C. Stats: data and models.
Boston: Pearson/Addison Wesley; 2005.
[34] Gujarati DN. Basic Econometrics. Prentice Hall;
2022.
[35] Cam O, Karakaya E. Determination of consumption preferences of organic product and factors affecting consumption preferences of consumers in
Siirt province. Journal of Adnan Menderes University Agricultural Faculty [Adnan Menderes Üniversitesi Ziraat Fakültesi Dergisi] . 2018;15: 33–41.
[36] Hanley N, Barbier EB, Barbier E. Pricing nature:
cost-benefit analysis and environmental policy. Edward Elgar Publishing; 2009.
[37] Maloma I, Sekatane MB. Poverty and employment status as determinants of willingness to pay for the
improvement of environmental quality in low-income
neighbourhood: the case of Bophelong Township
(South Africa). Mediterranean Journal of Social Sciences. 2014;5: 691.
[38] Iqbal M. Consumer behavior of organic food: A
developing country perspective. International Journal
of Marketing and Business Communication. 2015;4:
58–67.
[39] Soler F, Gil JM, Sanchez M. Consumers’
acceptability of organic food in Spain:
results from an experimental auction market.
British Food Journal. 2002;104: 670–87.
https://doi.org/10.1108/00070700210425921.
[40] Jayakumar T, Pasupathi G. A study of analysis of
awareness among consumers towards organic food
products with special reference to tiruchirappalli city.
Journal of Composition Theory. 2019;12: 1321–1328.
[41] Depositario DPT, Nayga Rodolfo M J, Wu X, Laude
TP. Effects of information on consumers’ willingness to pay for golden rice. Asian Economic Journal. 2009;23: 457–76. https://doi.org/10.1111/j.1467-8381.2009.02021.x.
[42] Laurico KR, Lee JY, Lee BH, Kim JH. Consumers’ valuation of local specialty coffee: the
case of Philippines. Journal of the Korean Society of International Agriculture. 2021;33: 338–48.
https://doi.org/10.12719/ksia.2021.33.4.338.
Published
31-December-2023
How to Cite
1.
Inthavixay C, Sengsouriya P, Sibounavong P. CONSUMER PURCHASE BEHAVIOR TOWARDS ORGANIC POTATO IN VIENTIANE CAPITAL, LAO PDR. journal [Internet]. 31Dec.2023 [cited 22Dec.2024];13(4). Available from: https://journal.tvu.edu.vn/tvujs_old/index.php/journal/article/view/2842
Section
Articles
