The Determinants of Organic Vegetable Purchasing in Jabodetabek Region, Indonesia

Abstract

Over the last few years, the global market of organic vegetables has grown. This is due to increased consumer concern regarding environmental and health issues, especially for food products. This study aims to examine factors that influence consumer behavior in purchasing organic vegetables. In this study, data were obtained from household surveys conducted in the Jabodetabek region (Greater Jakarta) from February to March 2015. Descriptive analysis, factor analysis, and a binary logit model were used to analyze the data. Subsequently, the results show that consumers with fewer family members and have a higher income, and are price tolerant, are more likely to purchase organic vegetables. Meanwhile, female consumers are less likely to buy organic vegetables. Another important finding is that positive attitude towards organic products, safety and health, environmental concerns, as well as degree of trust in organic attributes, are the determinants of organic vegetable purchasing among consumers. Therefore, based on the study results, the following recommendations are needed for organic vegetable development in Indonesia: (a) implementing an appropriate pricing strategy; (b) encouraging organic labeling and certification for vegetables; and (c) intensively promoting organic food with respect to consumers’ motives and concerns on health, safety, as well as environmental sustainability.

Keywords

• consumers’ purchase behavior
• organic vegetable
• binary logit model
• Indonesia