2012 Cambridge Business & Economics Conference
ISBN : 9780974211428
The Impact of Environmental Advertisement, Health Consciousness and Personal Norm on Organic Food
Consumption in Shanghai, China
Bing Zhu
Department of Marketing
Assumption University
Thailand
Email: bingzhu.mkt@gmail.com
ABSTRACT
The consumption of organic food has risen due to consumers’ concerns over issues regarding the
environmental problems, food safety and health. This study explores the effects of factors (environmental
advertisements, health consciousness, and personal norms) on organic food consumption in Shanghai. The
data was collected from 400 consumers at 4 Carrefour supermarkets in Shanghai who purchased organic
food. All hypotheses were analyzed by SEM (structural equation model). The research outcomes revealed
that organic food consumption was positively related with environmental advertisement (β=0.56 p<0.001),
health consciousness (β=0.19, p<0.01), and personal norm (β=0.22, p<0.001). The results imply that
environmental advertisement is the chief factor for consumers to purchase organic food, and it is the most
effective tool to reach those consumers who are aware of environmental and health issues.
Keywords- Organic food, Environmental Advertisement, Personal Norm, Health Consciousness
Paper type- Research paper
INTRODUCTION
With the development of technology and the improvement of living standard,, as well as an increase in
environmental problems, Chinese consumers’ concern over food quality and usage of chemical residues has
been accumulated (Sternfeld, 2009). Doubtless, Chinese people recently pay increasingly attention to what
they have eaten every day. However, to a certain extent, the safety of the food products in the market is not
really labeled by manufacturers. It is somewhat difficult for consumers to obtain sufficient knowledge of
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food quality and safety due to asymmetric information on food production methods, processes and even
distribution (Casell & Mojduszka, 1996). Therefore, there is a need to call for participation, support and
cooperation from both the government as well as the general public to build a qualified system to keep eying
food detection and certification, through which the accessibility of food information in terms of quality,
safety and legitimacy will be extended (Choi & Jesen, 1991).
The China Organic Food Certification Center (COFC) was established in 2002, which has supervises
the process of organic farming and production. Organic products are identified as products that do not
contain any conventional pesticides, fertilizers or irradiation throughout the production and process (NOP)
and also through organic farming, biodiversity, biological circulation and ecological harmony are able to be
enhanced and improved(NOP). In China, products that contain more than 95 percent organic ingredients are
labeled as “organic”, and processed food that contain less than 95 percent but more than 75 percent organic
ingredients are labeled as “manufactured with organic ingredients”(Sternfeld, .2009)
Recently Chinese consumers concern more on environmental friendly products. Therefore, China has
shown its significant growth through both production and consumption of organic products (Ip, 2003;
Sanders, 2006; Willer& Yussefi, 2006). Beijing, Shanghai and Guangzhou at present are the major markets
for organic food due to higher living standards, where the supermarkets such as Carrefour and Wal-Mart are
major channels for the sales of organic food (Sternfeld, 2009). As compared to conventional food, organic
food is marketed as high quality and at a premium price. According to Kan (2010), income level is a key
factor that determines the demand for environmental friendly products. Chinese consumers in second-tier
and third-tier cities have less interest in purchasing environmental friendly products than those in wealthier
cities such as Shanghai, Guangzhou, Beijing, etc. In other words, organic food is perceived as a high-priced
specialized food for a niche market in China. It is interesting to note that the sales of organic food have
soared by 50 percent due to the recent food scandals reported by public media (Baer, 2007), which implied
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that with a higher consumer awareness of food safety and environmental issue, there is a big opportunity for
organic food industry to fill the gap through sustainable development.
In this study, mainly the researcher first studies the influence of media effects on consumers’ purchase
of organic food through environmental advertising effects (Environmental Advertisement). The researcher
focuses on traditional mass media such as television, radio and print. Second, as consumers’ awareness of
health has increased, the researcher tends to investigate the impact of health consciousness on consumers’
purchase of organic food (Health Consciousness). Third, the researcher aims to study how personal moral
obligation influence consumers’ purchase of organic food (Personal Norm).
LITERATURE REVIEW
Organic Food Consumption (OC): The term “Organic” refers to the products that do not contain any
fertilizer pesticide or other chemicals throughout the farming, production and process (Hutchins &
Greenhalgh, 1997). From foreign perspective, consumers have generated understanding and knowledge of
“organic” which has boosted the consumption in foreign countries (Hutchins & Greenhalgh, 1997).
According to Manget, et al. (2009), organic foods were ranked 20 out of 108 product categories, and
consumers believed that organic foods represent superior quality as compared to conventional foods. Rahbar
&Wahid (2011) conducted a research in Malaysia to study the impact of publicity on consumers’ perception
and awareness of green products. As for Chinese market, organic food has been more available in the market
than before. The government has strived to popularize environmental protection knowledge among Chinese
people and raise their consciousnesses about environmental preservation and health issues in order to
cultivate fine environmental ethics and codes of conduct. Affluent Chinese people are willing to pay
premium price for the foods that contain natural ingredients, and they prefer purchasing organic foods at
supermarkets. However, there is no specific empirical research about consumers’ purchase of organic food
in China.
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Environmental Advertisement (Eads): As the general public is now more aware of environmental issues
than before, environmental advertisements are chosen by organizations that have a concern for the green
movement as an effective means to promote environmental-friendly products in the market. The purpose of
launching an environmental advertisement campaign is to encourage consumers to purchase products that
are environmentally-friendly, and to make the consumers be aware of the outcomes from their consumption
habits (Rahbar &Wahid, 2011). Baldwin (1993) found that environmental advertisement is an effective tool
for consumers to convert their values and beliefs into actual purchase of green products. More importantly,
environmental advertising is able to strike a chord with audiences and customers who may be able to build
up a firm sense of duty towards environment (Ong et al., 2007). The manufacturers and retailer will also
foster a positive corporate image.
Health Consciousness (HC): At this moment, health has become a hot issue as Chinese people are aware
of the negative impact of environment degradation. At the same time, Chinese people also realize that the
biggest threat to their health is unhealthy lifestyle, and maintaining a healthy diet is fast gaining support
among young people. Eating organic food and green food stand for a healthy diet. Health concern more
likely becomes a powerful motive for consumers to buy organic food (Davies et al., 1995; Tregear et al.,
1994; Wander & Bugge, 1997; Magnusson et al., 2003). Health, to a great extent, is perceived as a chief
factor for the acquisition of organic food (Lockie et al., 2002; Grankvist & Biel, 2001).
Personal Norm (PN): A personal norm reflects people’s moral obligation which is a very influential
factor for environmental buying behavior (Hopper & Nielson, 1991; Stern & Dietz, 1994; Stern, Dietz &
Black, 1986; Vining & Ebreo, 1992). Based on the study of recycling consumerism (Ebreo et al., 1999),
consumers have generated a sense of obligation to recycle, which is associated with product attributes that
are designed for environmental preservation. In other words, moral demand can be perceived as a motive for
consumers’ buying behavior towards environmental-friendly products.
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CONCEPTUAL FRAMEWORK
The modified research conceptual framework (Figure 1) was developed based on the previous studies of
Rahbar& Wahi (2011), Tanner & Kast (2003), Pieniak et al., (2008), and Ahmad et al (2010). The research
aims to identify how environmental advertisement, health consciousness and personal norm affect
consumers’ consumption of organic food in Shanghai. In addition, the research intends to investigate the
interrelationship among environmental advertisement, health consciousness, and personal norm.
Hence, based on the conceptual framework and the objectives of this research, the researcher has
developed a set of seven hypotheses to support this research.
H1o: There is no relationship between environmental advertisement and consumers’ organic
consumption
H2o: There is no relationship between health consciousness and organic consumption
H3o: There is no relationship between personal norm and organic consumption
H4o: There is no relationship between environmental advertisement and personal norm
H5o: There is no relationship between environmental advertisement and health consciousness
RESEARCH METHODOLOGY
400 respondents who have bought organic food from 4 branches of Carrefour supermarkets in Shanghai
participated in this research. The researcher sequentially went through three processes to obtain the data,
which are simple random sampling, quota sampling, and convenience sampling. Simple random sampling
was applied by the researcher, through which the researcher used drawing technique in order to give every
member of the population an equal chance to be selected in the sample (Zikmund, 2003). 4 branches out of a
total of 19 Carrefour branches in Shanghai city were chosen, which approximately accounts for 21 percent
of the total number of branches. Quota sampling was used to determine the number of respondents assigned
to each Carrefour branch selected since the data was collected from 400 respondents in 4 branches. 100
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respondents were assigned to each branch. Convenience sampling was used for distributing questionnaires to
the respondents who were available during opening hours in 4 Carrefour branches.
The Five-point Likert scale was also applied in a four-part questionnaire ranging from strongly disagree
(1) to strongly agree (5) was applied. In addition, a structural equation model was employed, and overall fit
of the model was indicated by Chi-square (x2), Goodness-of-fit index (GFI), Root mean square error of
approximation (RMSEA), Adjusted goodness-of-fit index (AGFI), TUCKER-Lewis index (TLI), Normed fit
index (NFI), and Comparative fit index (CFI).
RESEARCH FINDING
The majority of respondents were males that account for 54.7 percent. Most of the respondents (49
percent) are in the age group of 31 to 35 years old. In terms of educational level, the highest percentage was
bachelor’s degree with 47.9 percent. In addition, 42.2 percent of the respondents have their monthly income
between 3,001 RenMinBi and 4,000 RenMinBi. Moreover, 40.9 percent of the respondents are employed in
private sector.
In addition, as the research applied SEM (Structural Equation Model) to test the hypotheses, the results
of overall fit statistics for seven factors and path analysis is shown on Table 1 and Table 2. Overall fit
statistics for seven factors indicated the model in this study provided an adequate fit to the data (p<0.01).
The hypotheses testing results shown in Table 2 support that all hypotheses are found at significant levels, in
which hypotheses 1, 3,4,5 are statistically significant at .001 level (p<.001), and hypothesis 2 is statistically
significant at.01 level (p<.01). Therefore, all the null hypotheses are rejected, which indicates that there are
significant relationships between variables (Figure 1).
CONCLUSION AND DISCUSSIONS
As the issues of suitability and food safety have exploded into popular media in China in recent years,
the main objective of the study was to explore the impact of environmental advertisements, health
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consciousness and personal norms on organic food consumption in Shanghai, China.
For the consumers in Shanghai, environmental advertisement is the chief factor to buy organic food
products. Environmental advertisement positively influences consumers’ organic consumption as
environmental advertisement is an effective tool that can arouse general public’s awareness of
environmental problems. This finding corresponds with Baldwin (1993), Chase & Smith (1992). Also,
environmental advertisement can help consumers to form value and convert it into their purchase behavior
by stressing powerful benefits of consuming environmental friendly products. Based on the message that
environmental advertisement sends to the general public, consumers’ buying decisions have been influenced.
Personal norm has a significant impact on consumers’ consumption of organic food in Shanghai, which
reflects that moral thinking is involved in consumers’ purchase decisions in Shanghai. This finding is in line
with Hopper and Nielson (1991), Stern et al. (1986), Stern and Dietz (1994), Vining and Ebreo (1992),
Ebreo (1999) and Tanner and Kast (2003). The statement of “everybody has a responsibility to contribute to
environmental preservation by buying food products that do not contain any conventional pesticides,
fertilize and chemical residues” gained a mean score of 4.01 out of 5, which can be interpreted that
consumers in Shanghai contribute their efforts to environmental improvement and preservation by
consuming more organic foods products. Health consciousness also positively influences consumers’
purchase of organic food. This finding is in line with Davies et al. (1995), Tregear et al. (1994), Wandel and
Bugge (1997) and Magnisson et al. (2003). It can be interpreted that even though people pay attention to
health more than before, the importance of health consciousness as a motive of organic food consumption in
Shanghai is less than other factors that are environmental advertisement and personal norm. When people
make a buying decision regarding organic food, mostly they are influenced by the information exposed to
the environmental advertisement rather than health consciousness.
In addition, environmental advertisement has significant impact on personal norm and health
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consciousness, which means that environmental advertisements have instilled an awareness of environment
preservation and health lifestyle to consumers’ daily lives. Consumers have gradually converted their
concerns over environment and health issues to the environmental buying actions. They have perceived
buying environmental friendly products as an environmental responsible manner.
IMPLICATIONS AND RECOMMENDATIONS
Hypothesis 1, Hypothesis 4, and Hypothesis 5: The products should be advertised with specific, detailed
and transparent information. For example, how many percent of emissions will be reduced by consuming
environmental-friendly products as compared to conventional products? What particular or real benefits will
consumers get from consuming environmental-friendly products? Once consumers have a clear
understanding about the impact of their consumption, consuming environmental-friendly products such as
organic food will be perceived as a merit to the environmental improvement. Moreover, the manufacturers,
advertisers, marketers should stress products attributes which are “better for health” so that consumers can
see benefits from consuming organic food products.
Hypothesis 2: Chinese consumers keep eyes on food production due to the food scandals in recent years, so
the most important thing for them before making buying decision is to check ingredients and production
methods. Many consumers try to purchase the products that are antibiotic-free, hormone-free and gluten-free.
In addition, safety of food storage and delivery are other issues that the consumers pay an ever-increasing
attention to. The marketers and advertisers should truthfully give accurate information regarding to the
production methods, ingredients, product storage and delivery to eliminate consumers’ worries over the
potentiality that the products may be polluted. In addition, the nutrition level and insightful
recommendations regarding to healthy lifestyle should be stressed in order to improve consumers’
knowledge and understanding of organic food consumption.
Hypothesis 3: Moral consideration is a driving factor for Chinese consumers to buy organic food. The
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marketers and advertisers should highlight the significant impact of environmental buying behavior on the
environmental improvement as exhaustive as possible to activate consumers’ moral obligation. For example,
the consumption of organic food should be perceived as a contribution from the consumers, and the impact
of purchasing recycle, energy efficient product or hazard-free products on development of low-carbon
society and green environment should be emphasized.
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Table 1: Fit indices
Fit Indices
X2/df
RMSEA
GFI
AGFI
NFI
TLI
CFL
Recommended Value
≤5.00 (Hair et al., 1998)
≤0.08 (Hair et al., 1998)
≥0.90 (Hu and Bentler, 1999)
≥0.80 (Segars and Grover, 1993)
≥0.90(Hair et al., 1998)
≥0.90(Hair et al., 1998)
≥0.90(Gefen et al., 2000)
Structural Model
2.237
0.056
0.930
0.908
0.932
0.954
0.961
Measurement Model
1.345
0.029
0.954
0.940
0.959
0.987
0.989
Table 2: Path analysis by Structural Equation Modeling
β
0.56
0.19
0.22
0.44
0.40
Hypothesis
H1: EA  OC
H2:HC  OC
H3:PN  OC
H4: EA  PN
H5:EA  HC
Notes: *** p < 0.001; ** P<0.01
t-value
8.101
3.241
3.361
7.568
6.747
p-value
***
.001**
***
***
***
supported
Yes (P<.001)
Yes (P<.01)
Yes (P<.001)
Yes (P<.001)
Yes (P<.001)
Figure 1: Modified conceptual framework
OC
H1
H3
H4
PN
Eads
H2
H5
HC
Hypothesis
Results
H1o: There is no relationship between environmental advertisement and
organic consumption
H2o: There is no relationship between health consciousness and
concern and organic consumption
H3o: There is no relationship between personal norm concern and
consumers’ organic consumption
H4o: There is no relationship between environmental advertisement and
personal norm
H5o: There is no relationship between environmental advertisement and
health consciousness
Reject
(P<.001)
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Reject
(P<.01)
Reject
(P<.001)
Reject
(P<.001)
Reject
(P<.001)
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