Perceived Risk Reduction Strategies for Organic Food Customers. Issue 5 (12th June 2020)

• Record Type: Journal Article
• Authors: Pandey, Shivendra Kumar; Gupta, Ashish Kumar; Sharma, Dheeraj P.
• Is Part Of: Journal of food products marketing. Volume 26:Issue 5(2020)
• Page Start: 344
• Page End: 357
• Publication Date: 2020-06-12
• Subjects: Income -- trust -- perceived risk -- organic foods -- price -- fairness -- quality; Food -- Marketing -- Periodicals; Food industry and trade -- United States -- Periodicals; 381.45664097305
• DOI: 10.1080/10454446.2020.1774953
• Languages: English
• ISSNs: 1045-4446

Abstract

ABSTRACT: The present study attempts to compare and contrast the organic food choice-making process among high and low-income customers based on food quality, service quality and price fairness. Data were collected through structured questionnaires and analyzed using structural equation modeling. The results indicate apparent differences in decision-making strategies of high and low-income customers. Price fairness played an essential role in reducing risk and enhancing trust among low-income customers. Therefore, perceived risk reduction strategies are more suited for low-income consumers. For high-income consumers, trust was crucial. Also, product and service quality was equally vital for both segments. Managers selling organic food to high-income customers should focus on the retailing mix elements to build trust in the retailer. However, for low-income customers, managers should justify the price premium as fair. Also, managers may try to reduce financial risk by mechanisms such as money-back guarantees or liberal return policies for low-income customers.