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The Effect of Multidimensional Consumer Perceived Value on Customer Satisfaction and Purchase Intention of Organic Food
Ach Ainur Rohman1, Rosihan Asmara2, Dwi Retno Andriani2*
1Master of Agribusiness Program, Faculty of Agriculture, Universitas Brawijaya, Veteran Road, Malang 65145, Indonesia
2Department of Socio-Economics, Faculty of Agriculture, Universitas Brawijaya, Veteran Road, Malang 65145, Indonesia
Received: 16 February 2023; Revised: 6 March 2023; Accepted: 20 June 2023 ABSTRACT
The rapid and widespread growth of the organic food market is considered to become one of the largest growing markets in the food industry. The main objective of this research is to investigate and evaluate the effect of multidimensional consumer perceived value on customer satisfaction and purchase intention in the context of organic food. The data collection was carried out with 234 Indonesian consumers of organic food. The multidimensional consumer perceived value has been formed by 4 dimensions which include functional value, economic value, emotional value, and social value. consumer perceived value is considered to influence customer satisfaction and purchase intention. structural equation modeling (SEM- AMOS) was used to analyze the relationship between them. The result indicates that the consumer perceived value positively influences customer satisfaction and purchase intention. The consumer perceived value has no strong direct influence on purchase intention. Hence, the involvement of customer satisfaction is able to be a full mediator between the customer perceived value and purchase intention. This research contributes to reflecting consumer preferences of organic food in Indonesia as a developing country which is assessed by consumer perceived value, customer satisfaction, and purchase intention.
Keywords: organic food; customer satisfaction; purchase intention; consumer perceived value How to cite:
Rohman, A. A., Asmara, R., & Andriani, D. R. (2023). The Effect of Multidimensional Consumer Perceived Value on Customer Satisfaction and Purchase Intention of Organic Food. HABITAT, 34(2), 213–224. https://doi.org/10.21776/ub.habitat.2023.034.2.19
1. Introduction
Conventional agricultural production that uses pesticides, genetically modified organisms, and other non-natural substances generate negative impacts on health and the environment.
Presently, humans are facing a global environmental crisis which is the long-term impact of irresponsible production and consumption behavior (Bengtsson et al., 2018).
Unsustainable consumption behavior has stimulated consumer awareness of its negative impact, leading to the formation of a new consumer group called green consumers and different market segment (Peattie, 2010). A new perspective in the form of green consumption patterns has stimulated the process of ecological awareness in a group of people, giving rise to pro- environment movements in several countries in
the world (Bamberg and Moser, 2007). This new perspective aligned with the SDGs (2015) which target 2030 agricultural developments to achieve food security and ecologically sustainable agricultural practices (SDGs point 2 zero hunger).
Increased consumer awareness of health is driven by food safety incidents and the importance of environmental protection, which has led organic food to become the focus of public attention.
Recently, consumers have changed their consumption behavior from conventional food to organic food, one of which was triggered by the COVID19 pandemic. Consumers consider organic food as an alternative to obtain personal health, fitness and nutrition. Willer et al. (2021) estimated that the impact of the coronavirus will accelerate the pace of organic food consumption trends in regional markets, especially in developing countries such as China, India, Brazil, and Indonesia. Consumers consider organic food to be healthier, more nutritious and environmentally oriented. In previous studies, it was explained that
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*Corresponding Author.
E-mail: [email protected]
Available online at HABITAT website: http://www.habitat.ub.ac.id consumers are willing to pay more expensive to
get the quality and taste of organic food under the assurance of organic food safety certification (Chen and Lobo, 2012).
Concerning the consumers, Hsu et al.
(2016) explained that consumer awareness of health and consumer attitudes toward organic food has a significant influence on purchase intention.
Research on organic food consumption has been carried out massively in several studies and has analyzed consumers' motivation to purchase organic food (Teng and Wang, 2015; Hsu et al, 2016; Hsu et al, 2019; Curvelo et al., 2019; de Morais Watanabe et al., 2020). Referring to Curvelo et al., (2019) purchase intention toward organic food is influenced by emotional values, consumer trust and sensory attractiveness attributes. Moreover, consumer attitudes and subjective norms are positively correlated which significantly affects purchase intention on organic food (Pacho, 2020). In addition, consumer attitudes and subjective norms towards organic food significantly influence consumers in making their choice towards organic food (Teng and Wang, 2015). In contrast to the statement of de Morais Watanabe et al. (2020) explains that functional and emotional values positively affect consumer confidence and but only emotional values motivate purchase intention towards organic food.
Referring to some literature that discusses the motivations of consumer purchase intention towards organic food, consumer perceived value is one of the important aspects in becoming an antecedent variable. Lim et al. (2014) emphasized that understanding the consumer perceived value of organic food is the basis for understanding consumer expectations so that it can help design more appropriate market policies for producers, traders, and consumers. This is important because consumer perceived value is the result of consumer assessment of the trade-off between the effort made and the benefits obtained in purchasing organic food products. consumer perceived value is directly related to customer satisfaction. According to Giese and Cote (2000), customer satisfaction is the satisfaction that is measured through a response (cognitive or affective) related to a particular focus (i.e.
purchasing experience and/or related products) and occurs at a certain time. (i.e. post purchase, post-consumption).
Based on the explanations above, achieve the research objective is important to aggrandize
the understanding of how consumers perceived value of organic food can affect customer satisfaction and purchase intention, as well as the effect of customer satisfaction on purchase intention. Given the fast and increasing demand and sale of organic food, it is necessary to analyze the important factors that influence the buying behavior of organic food by consumers. The parties with an interest in understanding consumer buying behavior on organic food are organic food producers, suppliers, marketing specialists, policymakers, and food restaurant owners to design successful marketing strategies.
2. Theoretical Underpinning
General agreement regarding the definition and characteristics of consumer perceived value has not yet been established, but there have been two approaches to focus on consumer perceived value. The unidimensional becomes the first focus, which is a form of general assessment made by consumers regarding the utility of a particular product or service (Zeithaml, 1988); and the second is a multidimensional focus, which includes consumer evaluations of the notion of price, quality, benefits, sacrifices and motivations that fulfill satisfaction. The construction of consumer behavior towards value through its components is broadly described in the second focus, namely a multidimensional approach that offers a wider analysis complexity. Therefore, there are four dimensions of consumer perceived value that have been developed by Sweeny and Soutar (2001) which include: functional, emotional, economic and social. Furthermore, research has been carried out to analyze the consumer perceived value of frozen food which results in the addition of three items to the instrument so that it supports the original four dimensions that have been built previously (Nguyen et al. 2015). So that an SEM model was compiled with functional values, emotional values, economic values and social values as a multidimensional construct of latent variables of consumer perceived value.
The functional value represents the inherent utility of a product's properties in fulfilling its functional purpose. The functional value of organic food is related to the utility value of organic food products perceived by consumers which is the basis for making choices that provide practical benefits. Functional value includes several factors such as quality, availability,
Available online at HABITAT website: http://www.habitat.ub.ac.id environment and health and safety benefits
(Sweeny and Soutar, 2001).
The emotional value represents the feelings and affectivity felt by consumers when consuming organic food products (Sweeny and Soutar, 2001).
Seegebarth et al. (2016) complete the understanding of emotional value interpreted as an individual's perception of the value of the organic food product. So that consumers' subjective understanding of the concept of organic food is based on the premise that organic food can have a direct effect on consumer welfare, which implies that organic food refers to environmental concerns whose understanding development is in the consumer's environment.
The economic value represents the financial cost-benefit associated to buying and selling products. Related to organic food, regarding its functional value which gives more benefits to health and is environmentally friendly, price is an indicator that can show how quality the product is, which is seen from its attributes (Cicia et al., 2002). The social value represents social benefits related to interrelated relationships regarding social acceptance by consumer groups with certain references as the consequences felt by consumers from the choice of products they consume. This is based on the image that applies in accordance with the norms of one's social circle or the social image that the individual wants to represent to his reference group (Sanchez Fernandez and Iniesta- Bonillo, 2007).
Purchase intention is a condition where customers have the probability to buy something by choosing a certain brand in a type of product (Crosno et al., 2009). Purchase intention refers to the study of consumer behavior and intentions, so this framework has a significant influence on consumer research (Ghalandari and Norouzi, 2012).
Several studies discuss the relationship between consumer perceived value and purchase intention, one of which was conducted by de Morais Watanabe (2020) and Curvelo (2019) which revealed that perceived emotional value had a significant influence on the purchase intention of organic food. Zhao et al. (2018) make it clear that the most important thing of the consumer's perceived value of a product is environmentally friendly products so that they are able to stimulate consumer purchase intentions. Moreover, the purchase intention is more shown by consumers when consumers know about the benefits of the product (Loebnitz and Grunert. 2016). Therefore,
a reasonable hypothesis has been made as follows (H1) the consumer perceived value positively affects the purchase intention of consumers toward organic food.
One of the basic forms of the marketing construct is customer satisfaction, by meeting needs and satisfying customers as a concept.
(Spreng, MacKenzie, and Olshavsky, 1996).
Customer satisfaction is an evaluation and comparison of expectations before making a purchase of a product/service with the post- purchase experience felt by customers of the same product/service (Lemon et al., 2002). Regarding the effect of consumer perceived value on customer satisfaction, Research conducted by Namin (2017) reveals that there is a positive influence of perceived value on customer satisfaction in the context of a restaurant. other related things, namely price attributes, and reasonable prices in setting food prices in restaurants are things that affect customer satisfaction (Ramanathan et al., 2016). More specifically, Lu and Chi (2018) stated that there was a positive influence of consumer perceived value on customer satisfaction related to organic menus. Thus, the second hypothesis refer to (H2) the consumer perceived value would impact customer satisfaction.
According to Oliver (1997), customer satisfaction is an assessment of the service or product received or consumed based on the experience and evaluation of consumers on their interaction with the service or product. Thus, Gopalakishna and Mummalaneni (1993) argue that customer satisfaction is not the ultimate goal of product marketing, moreover it becomes an intermediary to fulfill the ultimate marketing goal which includes purchase intention and customer loyalty. In a study conducted by Espejel et al.
(2008). revealed that customer satisfaction has a significant effect on Purchase Intention.
Regarding organic food, customer satisfaction is one of the variables that can be considered as an antecedent to Purchase Intention to organic food (Konuk. 2018). Hence, third hypothesis is (H3) the customer satisfaction impact positively to purchase intention.
3. Research Method
The selection of this research location was based on the average expenditure per capita/month of food and non-food in urban and rural areas by district/city in East Java province in 2019 and 2020. It has selected 3 cities/districts with the
Available online at HABITAT website: http://www.habitat.ub.ac.id largest per capita expenditure in East Java in 2019
and 2020, namely the City of Surabaya, Malang City, and Sidoarjo Regency (East Java Province in Figures. 2021). This refers to the premise for premium prices, namely that there are groups of consumers who are willing and able to pay higher prices (Schifferstein and Oude Ophuis. 1998) because organic food is more expensive than conventional food.
Respondents in this study amounted to 287.
The data processing process experienced problems with data not being distributed normally.
Mahalanobis distance is applied to separate and eliminate data that are far from the center of the data distribution so that the total number of data is 234 respondents. The questionnaire instrument was compiled based on 3 parts which included questions about socio-demographics, individual buying behavior, and questions covering variables (dimensions of consumer perceived value, purchase intention, and customer satisfaction).
Data collection was conducted by using online and conventional questionnaires. Google forms are arranged according to the characteristics of the questionnaire instrument. Convenience sampling was applied to recruit respondents for this study because of its easy characteristics. There is no evidence that the application of convenience sampling can threaten internal data validity (Sedgwick, 2013), so this sampling method is feasible to use in this study.
Data on the characteristics of respondents showed 52.1% aged 41-60 years and 47.9% aged
16-40 years. Women were the most respondents in this study with a total of 62.4% with men as the remaining 37.6%. The frequency of buying organic food respondents is 26% once a month, 17.7% every day, 16% twice a week, 11.3% 2 times a month, 9.5 percent once a week, and 19.5% rarely buy. Several respondents have an undergraduate education level of 50.4% and a high school equivalent of 33.3%. Most of the respondents' purchases of organic food were made at modern retail, amounting to 71%.
The research flow and variables that have been adapted to the needs of data analysis are the basis for this research approach. SEM is the model chosen as a hypothesis testing instrument which acts as a causality model in the analysis process.
The researcher adopted SPSS-AMOS 23 as a data analysis instrument in this SEM method.
The multidimensional approach refers to the development carried out by Sweeny and Soutar (2001) which builds a scale to manifest consumer perceived value, through four value dimensions which include functional aspects, emotional aspects, economic aspects and social aspects.
Following up on the fruit of the previous manifestation, Nguyen et al. (2015) analyzed consumer perceived value while still adapting the scale built by Sweeny and Soutar (2001) along with the addition of three items into the instrument to support the original four dimensions. Nguyen et al. (2015) carried out measurements covering multidimensional values in food products.
Figure 1. Research model demonstrating consumer perceived value construct affect on customer satisfaction and purchase intention
Available online at HABITAT website: http://www.habitat.ub.ac.id Some of the manifest variables totalled 18
items which were crystallized in detail into four dimensions: emotional value tied to feelings or affective states produced by a product (consisting of four items); social values related to self-concept in social life obtained from product capabilities (consisting of three items); the associated economic value obtained from the product due to perceived short-term and long-term cost efficiency (consisting of four items); and functional value related to the perceived quality and expected performance of the product (consisting of seven items). Construct variables which include functional value, economic value, emotional value, and social value are measured in the model using a first order confirmatory. then the four variables become sub-construct dimensions of the consumer perceived value multidimensional construct. as a multidimensional construct, the consumer perceived value is tested in stages using a second order confirmatory along with appropriate and accountable rules.
Purchase intention measurement using 3- items measurement scale that has been adapted to the context of organic food and adopted from (Teng and Wang. 2015). The 3-items were
developed by Teng and Wang (2015) referring to the research conducted by (Schifferstein and Oude Ophuis. 1998) and (Bredahl. 2001). To measure consumer satisfaction, a three-item measurement scale was used that was adapted to the context of organic food and was adopted (Kim, Kim, and Lee. 2015). The 3 items were developed by Kim, Kim, and Lee (2016) referring to the research conducted by (Lee, Lee, and Yoo, 2000).
4. Result and Discussion
4.1. Evaluation of Measurement Models Result
Confirmatory Factor Analysis was applied in this study in order to obtain statistical results for each construct in the measurement model.
Maximum likelihood is the estimation method used to fulfill the CFA statistical test of the multidimensional construct of consumer perceived value, unidimensional customer satisfaction and purchase intention to obtain stable and accurate results. Table 1 presents the results of the measurement model analysis which explains that the 24 manifest variables spread across 6 dimensions meet the significance level (p <0.01).
Table 1. Confirmatory factor analysis
Constructs Standardized
Factor Loading
S.E C.R. P Functional Value (C.R. = .95)
Organic food is good for health 0.792 ** ** **
Organic food well made 0.834 0.051 19.716 ***
Reliable organic food 0.868 0.080 15.540 ***
Organic food has acceptable safety standards 0.874 0.067 15.676 ***
Organic food is of consistent quality 0.899 0.070 16.299 ***
Organic food tastes great 0.806 0.073 14.011 ***
Organic food has acceptable quality standards 0.916 0.066 16.772 ***
Economic value (C.R. = .82)
Organic food is reasonably priced 0.749 ** ** **
Organic food offers value for money 0.823 0.093 12.782 ***
Organic food is a great product for the price 0.802 0.073 12.532 ***
Organic food is more economical than other products 0.568 0.131 8.594 ***
Emotional value (C.R. = .81)
Organic food makes me feel good 0.755 ** ** **
Organic food makes me want to use more 0.554 0.143 6.627 ***
Organic food is one that I enjoy 0.803 0.106 9.530 ***
Organic food is one that I feel relaxed about using 0.755 0.093 11.696 ***
Social values (C.R. = .76)
Organic food helps me feel welcome 0.732 ** ** **
Organic food made a good impression on my family members
0.774
0.103 10.312 ***
Organic food matches culture and food traditions 0.646 0.103 8.672 ***
Available online at HABITAT website: http://www.habitat.ub.ac.id
Constructs Standardized
Factor Loading
S.E C.R. P Purchase Intention (C.R. = .84)
If organic food is available in stores, I will buy it 0.905 ** ** **
I am willing to buy organic food even if there is a higher price
0.790
0.068 16.256 ***
The probability that I will buy organic food is very high 0.955 0.043 25.165 ***
Customer Satisfaction (C.R. = .94)
Overall, I am satisfied eating organic food 0.960 ** ** **
I am satisfied consuming organic food, because organic food meets my expectations
0.955
0.028 34.308 ***
I am satisfied eating organic food considering the time and effort I invest
0.871
0.042 23.040 ***
Multidimensional Consumer Perceived Value
Functional Value 0.883 0.099 8.850 ***
Economic Value 0.997 0.113 8.925 ***
Emotional Value 0.811 0.111 7.840 ***
Social Value 0.811 ** ** **
Model Fit Statistics (X2 = 582.50, df = 238; CFI = 0.93, TLI = 0.92, IFI = 0.93 RMSEA = 0.079)
** = Items constrained for identification purposes.
C.R. = Composite Reliability
Index modification (MI) was carried out in this analysis because the RMSEA (root mean square error of approximation) prerequisites had not been met. So that the MI process is carried out with complete accuracy and justification that can be accounted for. Referring to the results of the MI analysis output, additional correlations were obtained for the errors (unique variables) e1-e2, e2-e5, e3-e4, e12-e14, e12-e15, e13-e14, e13-e15.
The results of MI's work show that the RMSEA value meets the requirements. The fit model is sufficient if the RMSEA value is <0.08 according to (Collier. 2020) and after MI analysis the RMSEA value is obtained = 0.079.
The results of the analysis show that the chi- square obtains results that meet the requirements.
Kline (2011) states that a chi-square value of less than 3 is considered a fit model. In the Comparative Fit Index (CFI), Incremental Fit Index (IFI), and the Tucker Lewis Index (TLI) values vary from 0 to 1, and values > 0.90 are declared as acceptable matches (Collier, 2020).
Values above 0.90 on IFI and CFI were obtained before and after the Modification Indices operation, but TLI values above 0.90 were only obtained after the operation. Model Fit Statistics (X2 = 582.50, df = 238; CFI = 0.93, TLI = 0.92, IFI = 0.93 RMSEA = 0.079)
In SEM in particular, Composite Reliability is a testing method that is offered as a better alternative instead of Cronbach's alpha (Hair et al.
2019). Composite Reliability testing has been carried out, which is calculated based on the factor loadings of the indicators by each construct. The criteria set as the acceptable level for reliability are the same as Cronbach's alpha, namely >.70. Each construct met these criteria by obtaining scores for Functional Value (C.R. = 0.95), Economic Value (C.R. = 0.82), Emotional Value (C.R. = 0.81), Social Value (C.R. =0.76), Purchase Intention (C.R. = 0.84), Customer Satisfaction (C.R. = 0.94).
Then how about the direct effect of the manifest variable (indicator) on the unobservable construct we can see from the standardized factor loading? The results of the analysis show that the indicator has a loading factor value contained in the SEM-AMOS (Standardized Regression Weights) output. If the loading factor has a value greater than (.702=.50), it is stated that the indicator can provide a value that explains the unobserved variable (Collier, 2020). It can be seen in the table 1 all manifest variables in each construct in this study have a loading factor value greater than (.702 = .50) so it is considered appropriate and reliable.
In the second-order CFA section, the value of multidimensional consumer perceived value is reflected and measured by 4 dimensions which include functional value, economic value, emotional value, and social value. Each of these dimensions provides a measurement value for
Available online at HABITAT website: http://www.habitat.ub.ac.id forming a multidimensional construct of
consumer perceived value in the results of the path analysis test or the full structure model. In the second order, there is no validity test at the first order level so it can only be tested in the whole structure model where there is a relationship between the constructs being tested (Collier, 2020).
Convergent Validity was obtained by calculate the Average Variance Extracted (AVE).
in order to meet the requirements of the level of acceptance of convergent validity, an AVE >.50 result is needed for each construct. The requirements have been fulfilled with the AVE results in each construct, i.e. Functional Value (AVE= .734), Economic value (AVE = .550), Emotional value (AVE = .522), Social values
(AVE = .517), Purchase Intention (AVE = .785), Customer Satisfaction (AVE = .864).
Discriminant Validity was carried out using a two-tailed Pearson correlation test. Basically, the Discriminant Validity test aims to see whether constructs differ from one another or have no relationship. The results obtained from the correlation test are then squared, then the results will be compared with the AVE value. So that the squared correlation value is obtained, which is lower than the AVE value of each construct, except for the correlation of Economic Value - Functional Value whose squared correlation results are higher than the Economic Value of AVE and the Correlation of Purchase Intention - Social Value, where the result of the squared correlation is higher than the Social Value AVE.
Table 2. Convergent and Discriminant Validity functional
value
economic value
emotional value
social value
customer satisfaction
purchase intention AVE=
0.734
AVE = 0,550
AVE = 0.522
AVE = 0.517
AVE = 0.785
AVE = 0.864 Functional
value AVE=
0.734
1 (Correlation value)2
N 234
economic value AVE = 0,550
.753** 1
(Correlation value)2 .567
N 234 234
emotional value AVE = 0.522
.631** .632** 1
(Correlation
value)2 .398 .399
N 234 234 234
social value AVE = 0.517
.560** .620** .537** 1
(Correlation
value)2 .313 .384 .288
N 234 234 234 234
customer satisfaction AVE = 0.785
.569** .622** .598** .707** 1
(Correlation
value)2 .323 .386 .357 .499
N 234 234 234 234 234
purchase intention AVE = 0.864
.549** .646** .558** .742** .868** 1
(Correlation
value)2 .301 .417 .311 .550 .753
N 234 234 234 234 234 234
**. Correlation is significant at the 0.01 level (2-tailed).
*Red: >AVE
*Green: <AVE
Available online at HABITAT website: http://www.habitat.ub.ac.id 4.2. Evaluation of Structural Models Result
CFA has been completed along with the requirements that must be met. Furthermore, path analysis is carried out to see the relationship between dimensions. In this study, path analysis was conducted to see how exogenous latent variables influence endogenous latent. Or specifically, analyze the influence exerted by Consumer Perceived Value on Purchase intention and Customer Satisfaction. Moreover, how does one of the endogenous latent variables affect other endogenous latent such as the effect of Customer Satisfaction on Purchase Intention.
H1 predicts that consumer perceived value has a direct influence on purchase intention. And H2 estimates that consumer perceived value has a
direct influence on customer satisfaction where customer satisfaction acts as a mediating/intervening variable between consumer perceived value and purchase intention. So H3 also estimates how customer satisfaction will affect purchase intention.
Based on the results of path analysis, it is found that consumer perceived value is estimated to have a direct influence on purchase intention (γ=0.129) and customer satisfaction (γ=0.737).
So, it can be said that H1 can be accepted but not completely because of the small effect value and H2 is fully acceptable. Furthermore, customer satisfaction is estimated to have a direct effect on purchase intention of (γ=0.817) and H3 can be fully confirmed as accepted.
Table 3. Structural Model Test Result
Hypothesized Relationships Standardized Estimates
t-values Hypothesis Supported H1: Consumer Perceived Value ➔ Purchase
Intention
.129 2.275 Supported
H2: Consumer Perceived Value ➔Customer Satisfaction
.737 8.986 Supported
H3: Customer Satisfaction ➔Purchase Intention .817 13.450 Supported Squared Multiple Correlation (R2):
Customer Satisfaction .543
Purchase Intention .840
Model Fit Statistics:
X2 = 582.50, df = 238; CFI = 0.93, TLI = 0.92, IFI = 0.93 RMSEA = 0.079
Table 4. Test for Mediation Using a Bootstrap Analysis With a 95% Confidence Interval Relationship Direct
Effect
Indirect Effect
Confidence Interval P-value Conclusion
Low High
Consumer Perceived Value ➔
Customer Satisfaction➔
Purchase intention
0.17 (2.26)
0.80 0.554 1.142 p < .001 Full-Mediation
Note: Unstandardized coefficients reported. Values in parentheses are t-values. Bootstrap sample = 5,000 with replacement.
The full structural model can be seen that the coefficient of determination (R2) on the endogenous variable (EV) purchase intention (0.840) and customer satisfaction (0.543). The value of R2 on purchase intention explains that 84 percent of purchase intentions is explained/represented jointly by consumer perceived value (γ=0.129) and customer satisfaction (γ=0.817). As well as customer satisfaction of 54.3 percent explained/represented by consumer perceived value (γ=0.737).
Obtaining the results of the subsequent analysis, a mediation test analysis was carried out to measure how much influence the consumer perceived value indirectly has on purchase intention. On the other hand, customer satisfaction is a mediating variable, among others. Consumer perceived value indirectly influences purchase intention by (0.80) with a significance level (p
<.001). this, when compared with the very small direct effect, certainly gives the conclusion that customer satisfaction is a full mediator.
Available online at HABITAT website: http://www.habitat.ub.ac.id 4.3. Discussion
The SEM analysis in this study obtained results which explained that consumer perceived value (CPV) and its dimensions influence purchase intention. Multidimensional consumer perceived value is proven to have been formed by 4 dimensions which include functional value, economic value, emotional value, and social value by this analysis. The results of research conducted by Watanabe (2020) stated that subjective emotional value in terms of pleasure and well- being is an aspect of consumer purchasing considerations for organic food. emotional value is significantly able to measure the CPV multidimensional latent variable so that in its effect on purchase intention, emotional value succeeds in being a reflective variable of CPV. So what about the other 3 dimensions of consumer perceived value, functional value provides choices for consumers to improve food safety individually which is contained in nutrition, quality and safety standards. Nguyen et al. (2015) stated that the quality and reliability of organic food are important to improve, manufacturers must communicate their products on packaging and product displays which include ingredients, nutrients contained, quality standards and quality qualifications.
In other regards, economic value is a determinant of transactional rationality between what consumers pay and what they get. With various aspects of comparison between organic and conventional food, organic food is considered economical when organic food products have qualities that are useful for consumers in addition to price adjustments provided by producers or retailers. So the price of organic food is acceptable and reasonable for consumers. It is important to consider consumer income, product quality, and competitors' prices in setting and managing organic food prices to reflect the product value (Nguyen et al. 2015). Regarding how consumers want to have a projected image of themselves referring to environmental norms or other consumers around them is one of the social value references (Sanchez, Fernandez and Iniesta- Bonillo, 2007). In this case, the image is an aspect that determines the impression of how a person can be accepted in his social environment.
According to Hsu, Chang, and Lin (2019), perceived value significantly has a positive influence on purchase intention. The intention to buy organic food is shown by the people of Surabaya, Indonesia when their perceptions are
met, which influences a positive attitude towards purchases (Limantara, 2017). The awareness of the Indonesian people about health and knowledge about organic food is an attitude that has a positive influence on the purchase intention of organic food (Saberina and Aprianti 2022). However, the results of this study explain that the consumer perceived value has a weak influence on purchase intention with only a path coefficient (γ=0.129).
This shows that consumer perceived value is not the main determinant in explaining purchase intention and cannot directly determine it. In this case, a mediation variable may be the right link to explain the indirect effect of consumer perceived value on purchase intention.
The consumer perceived value significantly affects customer satisfaction. Overall, the dimensions that make up the CPV can be a factor that influences customer satisfaction. The fairness of the price and quality of organic food received by consumers is the main determinant of customer satisfaction (Konuk. 2019) (Ramanathan and Ramanathan. 2016). The utility that consumers get from the quality they feel when consuming organic food and the price paid is commensurate with the long-term benefits so that it becomes a functional value and economic value that supports the realization of consumer satisfaction. There is an encouragement of joy when consuming organic food as well as social attention received by consumers, which influences customer satisfaction (Lu and Chi. 2018). Feelings or affective states received by consumers caused by consuming organic food and able to increase self- concept in the social environment into emotional values and social values which become a strong influence on customer satisfaction.
Customer satisfaction contributes to purchase intention in the context of organic food (Konuk. 2018). The meeting between expectations and experiences that are felt directly when consumers consume organic food becomes a stimulant of consumer behavior and attitudes to make repurchases thereby increasing purchase intention. customer satisfaction is an antecedent variable to Purchase Intention for organic food (Konuk. 2018). In this study, customer satisfaction has predominantly succeeded in becoming a full mediator between consumer perceived value and purchase intention. In line with Gopalakishna and Mummalaneni (1993) who states that the ultimate goal of marketing is not customer satisfaction but the customer satisfaction is a link to fulfill the
Available online at HABITAT website: http://www.habitat.ub.ac.id ultimate goal of marketing, namely, Purchase
Intention.
5. Conclusion
Investigating and evaluating the effect of multidimensional consumer perceived value on customer satisfaction and purchase intention in the context of organic food is the main objective of this research. The unidimensional construct which includes functional value, economic value, emotional value and social value is proven to be able to explain and represent the consumer perceived value of organic food as a multidimensional construct. Regarding the influence of consumer perceived value on purchase intention, the direct effect is very weak but related to the indirect effect, it is very strong.
The involvement of customer satisfaction can be an intermediary between the customer's perceived value and purchase intention which is a full mediator. This proves that customer satisfaction is not the ultimate goal of marketing but a variable that is suitable and successful as an antecedent of purchase intention.
This research contributes theoretically, which is proven in presenting the validity of the results of the analysis applied to consumer perceived value, customer satisfaction, and purchase intention for organic food in Indonesia.
Related further and in-depth studies, of course, it is necessary in Indonesia, considering that this country is a developing market for organic commodities. so that this study and subsequent studies can become a basis for comparison in other countries with similar studies. However, it is important to expand the sample with more heterogeneous and sufficient criteria to obtain integrative results.
Research on organic food in Indonesia is still not massive so with great caution the application of the methodology in this study was adopted reflectively. However, there are some accompanying limitations, such as a sample that is less general because it uses a convenience sampling technique and the location for data collection is only based on the per capita expenditure index. So it is hoped that further research will become more specific and representative in obtaining data so that general and valid results emerge.
In order to obtain more detailed results, further studies are needed to analyze which unidimensional variables have the most influence on customer satisfaction and purchase intentions.
So that the use of unidimensional latent variables is preferred for further research to find the strongest influence between functional values, economic values, emotional values, and social values. This becomes important in terms of identifying what strengths must be highlighted to the organic food market.
The limited findings regarding purchasing preferences for organic food in Indonesia make this research important. This research contributes to reflecting consumer preferences of organic food in Indonesia as a developing country as assessed by consumer perceived value, customer satisfaction, and purchase intention. So that the findings in this study can broaden a deeper understanding in terms of consumer preferences for organic food. Interested parties to understand consumer purchasing preferences for organic food are organic food product manufacturers, suppliers, marketing specialists, policy makers, and food restaurant owners to design successful marketing strategies.
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