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The Mediating Role of Risk Perception and Price Consciousness on the Trust and Purchase Intention of Organic Food

Author

Listed:
  • Udgam Mishra

    (Faculty of Management, Tribhuvan University)

  • Rimple Manchanda

    (Sharda School of Business Studies, Sharda University)

Abstract

Organic food is a healthier, more environment-friendly option that aligns with sustainable and ethical consumption. The research paper aims to study the relationship between trust and purchase intention of organic food. It also examines the mediating role of risk perception and price consciousness between trust and purchase intention. The current study explores how trust influences the purchase intention of organic food. It also investigates the mediating role of risk perception and price consciousness between trust and purchase intention. The study employed a quantitative research design. The data from 386 individuals residing in Biratnagar were collected and analysed using structural equation modelling with AMOS 26. The findings reveal that trust positively and significantly impacts the purchase intention for organic food. Price consciousness emerged as a strong mediator, and risk perception had a marginal mediating effect. Considering the significance of trust in organic product purchase intention, price sensitivity persists as an important consideration by people, and perceived risk can also constrain buying intention. Marketers must focus on strategies that reduce price sensitivity and address risk perception concerns to increase the demand for organic food. Policymakers must also leverage trust to promote responsible consumption while focusing on price consciousness and risk perception. Findings are limited to similar socio-economic settings, and they relied on cross-sectional data, not reflecting the change occurring over time. The study contributes to the body of knowledge by focusing on the effect of trust, risk perception, and price sensitivity on consumer purchase intention for organic foods in Nepal.

Suggested Citation

  • Udgam Mishra & Rimple Manchanda, 2025. "The Mediating Role of Risk Perception and Price Consciousness on the Trust and Purchase Intention of Organic Food," Ekonomski pregled, Hrvatsko društvo ekonomista (Croatian Society of Economists), vol. 76(4), pages 271-287.
  • Handle: RePEc:hde:epregl:v:76:y:2025:i:4:p:271-287
    DOI: 10.32910/ep.76.4.2
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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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