They make me do it! Social influences on organic buying

Abstract

Due to the growing importance of organic goods, past research has focused on examining the influences of organic buying in general. Scholarship has frequently portrayed consumers as independent decision maker and examined the influence of sociodemographic data as shapers of personal preferences. Yet, extensive evidence in economics, psychology, and sociology shows that people ´s behaviour is often conditioned on the behaviour of others. This paper aims to enhance our understanding of the determinants of organic demand by introducing social influences in the model. Using data from the Nielsen household panel of 2012-2013, we test the influence of the behaviour of those socially proximal to the household in a double hurdle model. We conclude that influences on the decision to try organic and on the quantity of organic bought are distinct. Proximal others influence positively the decision to buy organic. Other sociodemographic factors are other significant influences.

Due to the growing importance of organic goods, past research has focused on examining the influences of organic buying in general. Scholarship has frequently portrayed consumers as independent decision maker and examined the influence of sociodemographic data as shapers of personal preferences. Yet, extensive evidence in economics, psychology, and sociology shows that people ´s behaviour is often conditioned on the behaviour of others. This paper aims to enhance our understanding of the determinants of organic demand by introducing social influences in the model. Using data from the Nielsen household panel of 2012-2013, we test the influence of the behaviour of those socially proximal to the household in a double hurdle model. We conclude that influences on the decision to try organic and on the quantity of organic bought are distinct. Proximal others influence positively the decision to buy organic. Other sociodemographic factors are other significant influences.