Consumer Willingness To Pay high price for consumption of Organic Food Products: A study of Indian consumer

Purpose: Organic food is a sustainable, healthier alternative to normal food items. A positive inclination of consumers is observed around the globe towards these products, owing to the benefits it provides not only to human health but also to the environment. The present study is based on the extended version of Theory of Planned Behaviour. The study aims at measuring the mediating effect of Willingness To Pay a Premium on the relationship of Attitude, Subjective Norms, Perceived Behavioral Control and Environmental Concern with consumers' organic food Purchase Intention. Methodology: The study was conducted using a structured questionnaire framed on 5- point Likert Scale, ranging from Strongly Disagree to Strongly Agree. The respondents were asked to rate the items of the constructs adapted from the extant literature and provide their respective demographic information (age, gender, education, occupation and income category). The sample size of the study was calculated on the basis of formula proposed by Cochran (1963). The questionnaire was distributed physically and through google forms to more than 500 respondents. For the final analysis, data collected from 425 respondents of Uttarakhand was considered which was analysed using Structural Equation Modelling (SEM) with the help of Smart PLS 4 software. Findings: The findings revealed that consumers showed a positive intent toward organic food purchase. Purchase Intention was observed to be significantly influenced by Environmental Concern, Attitude and Willingness To Pay a premium. Further, Consumers' Willingness To Pay a premium significantly mediated the relationship of Perceived Behavioural Control and Subjective Norms with Purchase Intention that was insignificant when observed directly. Practical Implications: The study on the grounds of the findings, encourages consumers to increase the intake of organic food in their daily diet and also provides valuable suggestions to the policymakers and marketers of such products. Marketers and policymakers should work towards converting consumers' positive intent towards organic food into actual demand. This would help them to have an extensive understanding of consumer behaviour towards the subject focusing on increasing the production and promotion of such goods. Originality: The study is a genuine piece of research and will help to create awareness among consumers regarding the benefits of organic food products.