THE IMPACT OF PREMIUM PRICING ON CONSUMER PURCHASE BHAVIOUR TOWARDS ORGANIC FOOD ITEMS
DOI:
https://doi.org/10.62737/rm2gxw59Keywords:
Organic products, premium pricing, consumer behaviour, perceived value, awareness, gender, income, IndiaAbstract
The growing emphasis on food safety, sustainability, and health has fuelled an emerging global trend towards organic consumption. In India too, the trend is gathering momentum, but premium pricing remains a major obstacle to bulk consumption. The current study explores the influence of consumers' perception of premium pricing on their buying behaviour for organic food in Kerala. Employing a quantitative method, data were collected from 303 respondents through structured questionnaires and analysed using SPSS.
The study investigates whether premium pricing perception relates to buying behaviour and whether the association holds after adjusting for awareness and perceived value. The tools of correlation analysis, partial correlation, t-tests, and ANOVA were employed. The results show a statistical positive correlation between premium pricing perception and buying behaviour, irrespective of awareness and perceived value. Gender did not influence buying behaviour but women perceived premium pricing more favorably compared to men. Income level had a significant influence on awareness and perceived value but not on buying behaviour. The results are useful to policymakers and marketers, emphasizing the need for clear communication of product value, pricing strategy, and education campaigns to stimulate organic consumption in India.
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