Determinants of Actual Purchase Behavior in Farmers’ Markets

Abstract

Farmers’ markets in Taiwan advocate for the sustainable consumption of locally produced food to support sustainability and social justice goals. Institutional trust and interpersonal trust are critical determinative factors in sustaining farmers’ farm-to-consumer venues for the long-run. The purpose of this research was to investigate determinants of customers’ actual purchase behaviors, and the relationships between trust, purchase intention, and actual purchase behavior in the context of farmers’ markets. A questionnaire approach with closed-ended survey questions was conducted with customers in farmers’ markets in different parts of Taiwan. The results revealed that both institutional and interpersonal trust could serve as driving forces influencing a consumer’s purchase intentions, which in turn reinforces their actual purchase behavior. Specifically, the interpersonal trust between consumers and producers includes positive interactions and sufficient communication, enabling producers to share the value and concepts underlying their production processes with the consumers, enhancing customers’ purchase intentions and intensity. Institutional trust generated from a producer’s endeavor to improve the quality of their own products by meeting market standards would impress consumers and build loyalty. It is recommended that farmers’ market farmers or managers continually examine both the institutional and interpersonal needs of customers (e.g., food safety, face-to-face interactions between farmers and consumers) to earn customers’ trust, and to accommodate their expectations by providing sufficient products and services.