Abstract
Organic and healthy products are becoming more prevalent in markets worldwide, but limited research investigates how consumers choose among these products. This article considers relationships among price, product quality, assortment, and staff service that might affect consumer product choices, as well as a moderating role of macroeconomic conditions. The most important drivers of a choice of organic over healthy products are assortment and service. This study also reveals a distinction between organic and healthy products resulting from the interaction of marketing variables with macroeconomic contexts, such that crisis periods can prompt the cannibalization of healthy products by organic products.
Appendix
A Reliabilities of model constructs
Marketing elements | Indicator | Indicator loading | Cronbach's alpha | AVE | CR | SC (1) | (2) | (3) | (4) |
---|---|---|---|---|---|---|---|---|---|
Assortment (1) | 0.7320 | 0.478 | 0.73 | 1 | ‒ | ‒ | ‒ | ||
ASSI1 | 0.4470 | ||||||||
ASSI2 | 0.4609 | ||||||||
ASSI2 | 0.3536 | ||||||||
Price (2) | 0.7778 | 0.544 | 0.78 | 0.38 | 1 | ‒ | ‒ | ||
PRI1 | 0.6723 | ||||||||
PRI2 | 0.6577 | ||||||||
PRI3 | 0.5402 | ||||||||
Staff service (3) | 0.7448 | 0.518 | 0.76 | 0.41 | 0.24 | 1 | ‒ | ||
SERVI1 | 0.6618 | ||||||||
SERVI2 | 0.5262 | ||||||||
SERVI3 | 0.6543 | ||||||||
Product quality (4) | 0.8419 | 0.519 | 0.81 | 0.33 | 0.37 | 0.24 | 1 | ||
PRODI1 | 0.5714 | ||||||||
PRODI2 | 0.7008 | ||||||||
PRODI3 | 0.5809 | ||||||||
PRODI4 | 0.7226 | ||||||||
PRODI5 | 0.7393 |
B Correlations of instrument variables and store image
Assortment | Price | Service | Produce | Display | Feature | |
---|---|---|---|---|---|---|
Assortment | 1.0000 | |||||
Price | 0.4351 | 1.0000 | ||||
0.0000 | ||||||
Service | 0.4931 | 0.3680 | 1.0000 | |||
0.0000 | 0.0000 | |||||
Produce | 0.4605 | 0.5448 | 0.3914 | 1.0000 | ||
0.0000 | 0.0000 | 0.0000 | ||||
Display | 0.0078 | 0.0322 | −0.0048 | 0.0199 | 1.0000 | |
0.0113 | 0.0000 | 0.1230 | 0.0000 | |||
Feature | −0.0167 | 0.0112 | −0.0295 | 0.0115 | −0.0405 | 1.0000 |
0.0000 | 0.0004 | 0.0000 | 0.0007 | 0.0000 |
C Probability of choosing products by macroeconomic period
D Products’ resubstitution classification
Products | Distance2 | |||||
---|---|---|---|---|---|---|
Economic period | Organic N (pc.) | Healthy N (pc.) | Total | Organic | Healthy | |
Expansion | Organic | 12,141 (53.06) | 10,740 (46.94) | 22,881 (100.00) | ̶ | 0.039 |
Healthy | 17,145 (45.72) | 20,352 (54.28) | 37,497 (100.00) | 0.040 | ̶ | |
Total | 29,286 (48.50) | 31,092 (51.50) | 60,378 (100.00) | |||
Crisis | Organic | 7,195 (56.37) | 5,570 (43.63) | 12,765 (100.00) | ̶ | 0.048 |
Healthy | 8,699 (46.37) | 10,060 (53.63) | 18,759 (100.00) | 0.044 | ̶ | |
Total | 15,894 (50.42) | 15,630 (49.58) | 31,524 (100.00) | |||
Priors | 0.50 | 0.50 |
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