An analysis of factors impacting consumer purchase intention on herbal products

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.