Abstract:
Consumer Purchase Intension (CPI) on the herbal product need to be investigated
as it is one of the growing businesses against increasing competition. In this
research, internal and external factors influencing the purchasing intention of
consumers for herbal products were investigated. A self-administrated structured
questionnaire was provided to 330 customers visited 50 prominent herbal stores
in Sri Lanka using a convenient sampling technique. The collected data were
subjected to test the construct validity and reliability of the data. Subsequently,
the correlation and multiple regression analysis were carried out to find the
association factors between CPI and other internal and external factors related to
the customers of herbal products and their impacts. The results have shown that
the data set was valid and reliable for ensuring analysis results. The positive strong
significant (p<0.05) relationship was observed between CPI and perceived
quality, value, price, and advertisement whereas significantly (p<0.05) negative
relationship was shown by perceived risk. Further, the study found that perceived
quality, risk, price, and trust were the significant influential factor in purchasing
herbal products intensively. Therefore, herbal production firms can do all of their
activities to improve the perceived quality of customers and reduce the perceived
risk. Companies can produce products and develop new or existing herbal
products through their Research and Development (R&D) department to diversify
their products from their potential competitors. Besides, perceived risk can be
minimized by distributing free samples to new consumers. Companies can use
new pricing techniques as psychological pricing. And by using brand endorsers to
advertise the product, the organization will raise trust in the product.
