The Role of Sustainability in Shaping Customer Perceptions at Farmers’ Markets: A Quantitative Analysis

Purpose—This research paper examines the critical factors in customer satisfaction while purchasing fruits and vegetables at farmers’ markets. Design/methodology/approach—This study was conducted using a prepared questionnaire to collect data on a random sample of 235 customers of farmers’ markets in the state of Maharashtra, India. The research was carried out in the year 2023. Seven hypotheses were tested concerning the relationships between the variables of interest. The variables of convenience, variety, quality, price, health and hygiene, and service conditions were used as independent constructs and were proxied by reflective indicators. Customer satisfaction and customer loyalty were treated as an exogenous variable and an endogenous variable, respectively. Structural equation modeling was used to investigate the model relationships and confirm the theoretical model. Findings—The findings validate all the reflective indicators used in the study. The latent variables of convenience, variety, quality, price, health and hygiene, and service conditions positively and significantly affect customer satisfaction, and customer satisfaction positively and significantly affects customer loyalty toward farmers’ markets. The structural equation explains approximately 55% of the variation in customer satisfaction related to convenience, variety, price, quality, health and hygiene, and service conditions. Significance—The study results provide insights into the factors that influence consumer behavior and attitudes toward farmers’ markets. By identifying these predictors, this study can help farmers’ markets and other stakeholders develop effective marketing strategies to attract and retain customers, ultimately promoting sustainable food production and consumption. Additionally, the results can inform policymakers on how to support and promote farmers’ markets as healthy and sustainable food sources. Practical implication—By implementing the practical suggestions derived from the implications of this research, farmers’ markets can optimize customer satisfaction, boost customer loyalty, and reinforce their position as valuable contributors to local communities’ well-being and sustainability. Originality/value—The acceptance of farmers’ markets in India as an alternative shopping destination for fruits and vegetables is gradually increasing. This exploratory study conducted on farmers’ markets examined several factors, including price, in assessing customer satisfaction and farmers’ markets’ effectiveness at positioning themselves as shopping destinations for consumers in India.