Abstract

Organic foods fall into the category of credence goods because an array of attributes makes it difficult for consumers to evaluate the quality of organic foods. By focusing on two credence attributes of organic foods (food safety and eco-friendliness), the current study investigates how these attributes influence consumers’ perceptions of quality and value, which in turn increase purchase intentions. The study further examines whether the proposed relationships differ by expenditure share of organic foods. We used a two-step approach of Structural Equation Modeling (SEM) to analyze data obtained from 725 consumer panel members who were primary grocery shoppers and had purchased organic foods. The results give insights on the role of two credence attributes in developing quality and value perceptions of organic foods.We also find dynamics underlying the role of the credence attributes depending on consumers’ expenditure share of organic foods. The findings of this study not only contribute to the organic food literature but also help industry, government, and consumer associations to fully understand consumer perceptions of credence attributes of organic foods and thus to enhance consumers’ responses to organic foods.

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