Analysis of Dimensions of Perceived Risk towards the Risk Taking Attitude of Organic Food Product in Virudhunagar District with the Help of Structural Equation Modeling
Keywords:
Perceived risk, Organic Food product, AdoptionAbstract
Organic food product, somewhat considered as a new product in Indian market has gain attention among the Indian people to shift their purchasing from GMO product to organic food product. The people who have awareness purchase the organic food product for consumption. It’s mainly adopted in the metropolitan areas whereas the organic food product has considered as a new product in the rural and urban areas. For every product in the market, there will be a certain risk involved in the adoption. The success of the new product mainly depends upon the positive perception among the consumers. If the perception towards the new product seems to be negative, the product will quit from the market or else the product may sustain in the market. That negative perception towards the product is known as perceived risk. So, the consumer’s perceived risk is considered as an important factor that affects the adoption of new product in the market. In this research, the perceived risk has been assessed with the help of five dimensions of psychological risk, social risk, functional risk, physical risk and financial risk. By applying qualitative and quantitative methods in terms of assessing cronbach alpha, EFA, CFA and SEM, the author has found the fitness of the model in order to find the relationship between the perceived risk with the risk taking attitude of the consumers by finding the values of CMIN/DF, GFI, AGFI and RMSEA. The researcher also found that among the five dimensions of perceived risk, social risk and psychological risk have the greatest influence on the risk taking attitude among the people in the market for adopting the organic food product.
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