Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)


Trust Building Factors and Their Impact on Consumers-The Case of Organic Food Market in Thailand

Author(s): Supranee Tangnatthanakrit, Krittinee Nuttavuthisit, Praima Israsena Na Ayudhya

Consumer mistrust of the control and certification systems is common in organic food market. These circumstances happen in many developing countries where regulations remain weak and credibility of national certificate authority is hardly established. The complicated labels issued by diverse certificate authorities confuse consumers and undermine their confidence. In Thailand, other sources – such as farmer credibility, retailer and brand reputation and community – seem to have greater influence in shaping consumer trust in organic foods. However, few studies systematically investigate what and how various factors affect consumer trust. This study aims to examine trust building factors in Thailand organic food market, and quantify their impact on consumers. Our survey of 319 respondents revealed that community and farmer characteristic are essential factors in achieving consumer trust. Communication helps consumers to access characteristic and competence of farmers and other key stakeholders within organic food community. This study contributes to the understanding of trust building when consumers exposed to organic food, and the roles of trust in the business-consumer relationship. Implying directions to enhance consumer trust in organic food market, the findings also facilitate the strategy and policy building to establish sustainable organic food systems and supply chains. The findings may also benefit other markets that share similar credence features as organic food market.

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