Abstract:
PURPOSE - This study aims to analyze and empirically test the determinants influencing organic product purchasing decisions. This study focuses on consumers in Indonesia's major metropolitan area (JABODETABEK) and specifically examines the influence of Health Awareness, Environmental Concern, Price Perception, Product Availability, and Government Policy.
DESIGN/METHODOLOGY/APPROACH - This study uses a quantitative approach with a structured questionnaire survey. Primary data were collected from a sample of 405 respondents, predominantly female, of productive age (18-50 years), and with a middle income. The primary data analysis technique used was multiple linear regression analysis to test the hypotheses, supported by Cronbach's Alpha reliability testing to ensure instrument consistency.
FINDINGS - The analysis results indicate that the proposed regression model is robust and able to explain 79.4% of the variation in purchasing decisions (Adjusted R Square = 0.794). Partial hypothesis testing (t-test) demonstrated that Health Awareness, Product Availability, and Government Policy had a positive and significant influence on purchasing decisions. Conversely, Environmental Concern and Price Perception factors surprisingly did not show a significant influence. However, this finding is clouded by a crucial methodological issue: the instruments for measuring Environmental Concern (a = 0.479) and Government Policy (a = 0.495) proved unreliable.
ORIGINALITY/VALUE - This study provides empirical clarity regarding the hierarchy of motivating factors for organic product purchases in Indonesia's growing urban market. Its primary originality lies in the finding that personal benefits (health) and practical factors (availability) significantly outweigh altruistic (environmental) and economic (price) considerations for this consumer segment. In addition, this study critically highlights the importance of instrument validity, where unreliable results can lead to biased and potentially erroneous conclusions, providing valuable methodological lessons.
