Green Product & Innovation: Strategy of Store Image
Doni Purnama Alamsyah1 & Andry Trijumasyah2
1,2
AMIK BSI Bandung
Jl. Sekolah Internasional No. 1, Bandung - Indonesia
[email protected]
Abstract- Nowadays, Organic vegetables product has not become the
important attention for customer in West Java, Indonesia. This is
caused by customer perceived risk for product, it still felt by
customer which is the policy of price. This case impacts indirectly on
customer trust. Remember that organic vegetables are dominant in
Supermarket, so it is conducted the review with the focus on
moderating effect of store image in the correlation of perceived
quality and perceived risk for organic product with customer trust.
The study conducted on 361 respondents, which is customer exists in
Supermarket. Data from questionnaire that spreads to retail customer
is processed by Lisrel with using analysis approach of Structure
Equation Model. In testing the study result is conducted research
hypothesis test. The research finding stated that store image can be
mediated the correlation of perceived quality and perceived risk for
organic vegetables product, in order to improve customer trust. The
study result is trully encourage the effort of facing “global warming”
issue, through the review of environmental friendly products.
Keywords: Perceived Quality; Perceived Risk; Customer
Trust; Store Image.
I. INTRODUCTION
The development of customer behavior is getting faster, it
is marked with the faster of creation in form of product and
service offered by company [1]. Those cases impact on the
high of competition between company (Chen, Wang, Huang,
& Shen, 2016), so it strives for company to know detail what
the desire from customer [3]. Customer chooses product and
service offered by company, because the value of product and
service is bigger from sacrifice that will be conducted by
customer [4]. The value of product and service is the absolute
thing needed by its customer [5]. That value as satisfying of
customer’s needs, and in the motivation theory of Maslow is
included on the most basic need which is physiological need,
or the highest need is self-actualization [6]. The higher value
of product and service that assessed by customer, so the lower
sacrifice that will be conducted by customer. Emphasizing of
that explanation, so company is strived indirectly on the
position of increasing the value of product and service offered.
Trust that is embraced by customer is one of customer
behavior [7]. Where this behavior related to customer behavior
on product and service offered by company. When customer
believes in product offered, so it emerges customer’s ineterest
to have those products [8], vice versa. Some previous
researches explain the importance of customer trust for
company development [8]–[11]. This case leaves from the
effect of trust on company performance indirectly [12].
When customer has believed for product and service
offered by company, so it also impacts customer’s interest
indirectly to buy product and service offered by company
finally. Besides that, customer trust is not slowly because
product and service but it is because company make [13].
Reviewing from those researches explain that customer trust
can create a good image for company. Actually, customer trust
today is not measured again for product offered by customer,
but for company and even on online transaction in the selling
process [7]. So, it perceived to be important to increase
customer trust through product, service, transaction process or
company image. In this study, it focuses on the increasing of
customer trust through the existing value on the product.
Where it becomes common, when the value from product
becomes the first mainstay in increasing company [1], [14].
The value of product and service can be created by several
things; one of them is extra features outside from commonly
for product created [2]. In some previous researches, it found
there is addition of product value from the form of product
packaging [15], [16]. There is also adding product value from
superior product content from other products [14]. One of
products that become attention currently is organic vegetables
products, in which it is given additional value is free of
chemicals [17]. So the nutrition exists on that products are stay
wake in making healthy if it is consumed [18]. The increasing
of product value exists on organic vegetables is not a new case
today, it seems to conduct the previous researches which
related to customer purchasing decision, that has done in
Indonesia [17].
Remember of enviromental friendly product has become
attention in the world. It is as impact from global warming
issue, where the more of chemical material that has damaged
earth; it sources both air pollution or waste production of
conventional product [19]. So that, the study relates to
environmental friendly product becomes trend to be done [1].
One of environmental friendly product is organic vegetables in
Indonesia, the condition is not appropriate with the
expectation. For example, in West Java there is still low for
customer’s consumption on organic vegetables products [17].
It is related to the value of environmental friendly product that
does not become the important attention for customer.
It is assumed, customer does not believe fully in the value
contained on organic vegetables product. The study on the
previous research found that there is correlation from
perceived customer for product value with customer trust [8].
Those perceived emerges in customer’s mind with two
assumptions, which are quality and risk [5]. Indirectly,
customer will assess which one of the highest perceived for
product offered by their company [20]. In the end, company is
strived for giving the higher benefit from risk for product
offered [21].
It has stated that organic vegetables products have benefit
for its product, which is friendly to environment. However, it
is unrealized by customer maximally in West Java, Indonesia
[17]. So it is needed the increasing strategy of product value
that is viewed by customer, which is benefit. If it is
investigated before, it is known that organic vegetables
products still become premium product; it seems
merchantability in Indonesia in certain place, which is
Supermarket [22]. Remember the characteristic of organic
vegetables product which is more clean and tidy, also the more
expensive price from conventional product [23]. Store in case
of Supermarket, it has obviously the value in customer’s point
of view which is the existing of store image. Sometimes, store
image is become one of company marketing strategy in
improving company performance [24]. It is not only happened
on store or Supermarket, but it is happened to company in
common. It seems on customer’s interest in selecting product
and service depends on image from its company [25].
Reviewing from those explanations and it is connected with
organic product, so it can be assumed that store image can
increase company performance [26]. Besides that, store image
has actually also impact to customer behavior when customer
was on Supermarket.
According to the phenomenon, there is impact of store
image on customer behavior such as perceived quality and risk
also customer trust. So the review focuses on supporting store
image in increasing trust through perceived quality and
customer risk for organic vegetables products. This research
sudy is useful in encouraging government to face global
warming issues [27], in increasing the study on environmental
friendly products. Besides that, it aims to improve customer
trust on organic vegetables products, so customer can consider
as the most important from the common product. The effect of
store image mediating on the correlation of perceived
customer for quality and risk of trust, it is attractive to be
investigated. In which the other research is commonly focus
on direct impact of store image on company performance [24],
or on customer trust [28], but it does not investigate from the
side of perceived quality and customer risk. So that the study
of store image mediating on perceived quality and customer
risk, especially for organic products to increase customer trust,
becomes the study position today.
A.
Customer Perceived Quality and Perceived Risk of
Organic Vegetables
Organic product is a product processed without chemical
materials [17]. Those products are healthy to be consumed,
because its nutrition is not less; because chemical materials
and environmental friendly [29]. Organic vegetables are one
of organic products, it means that the product has a more
attribute from common product [30]. With those attributes, it
implies that organic vegetables as product with the additional
value. Additional value of product, it assumed obviously by
customer as one of benefit [29]. In which it is needed sacrifice
from customer when they select organic vegetables, which is
the expensive cost from common vegetables. And also the
effort to get it, because there is not all stores sell organic
vegetables [31]. In Indonesia, organic vegetables only sell in
Supermarket, while customer in Indonesia still dominate in
shopping vegetables in traditional market [17]. Customer
perceived quality and perceived risk of organic vegetables is
created not only because product characteristic, but also the
environment where product is merchantability [7].
Basic of perceived quality and perceived risk from
customer perceived value, where customer perceived value is
the comparison between benefit and risk [32]. Observing from
theory of Beneke, Flynn, Greig, & Mukaiwa (2013), that
customer perceived quality “as the way in which a customer
views a product’s brand equity and overall superiority
compared to the available alternatives”. It means that
perceived quality depends on the study result of one product
customer compared with other products, in this case the value
of organic product is more superior from conventional product
[34]. When a company can create product with the superior
value from another company on its product, so company has
been able indirectly give perceived both its product on their
customer. While customer perceived risk otherwise for
sacrifice conducted by customer for selected product [16].
Customer needs more information from product faced, but
company often as seller is not sensitive [35]. The result, as
well as any values from product created, it is not good to be
accepted by customer. So it is needed introduction in
marketing science for product with substance of its value to
customer [36]. In order to customer perceived quality on its
product becomes better. The impact of customer perceived
quality on its product, actually it influences on customer
perceived negative, or it is called risk [33]. In which perceived
risk will can be pressed if company can increase customer
perceived quality through the value of product quality.
Customer perceived quality for organic vegetables
products has distinction, in the previous study of Pozo, Saak,
& Hanawa-Peterson (2009) there are being safer, healtier,
tastier,and more environmental friendly, as the dimension
from perceived product quality. The development to measure
environmental friendly product is assessed from guarantee
(origin, brand, label, variety), organoleptic characteristic
(firmness, colour, flavour, aroma) and external factors
(damage, size, price, freshness) [38]. The estuary of customer
perceived quality for organic products is on the increasing
product value, it marks that if product value is reduced so
perceived risk from customer will be increased. Risk that will
be burden by customer is the expensive price and the effort to
get product. Those cases can be measured from financial risk,
performance risk and psichosocial risk [4], [39].
Sometimes, perceived quality from product assessed by
customer; it is become company’s dimension in assessing
product performance [8]. Because the success of marketing
department, one of them from the improvement of good view
from customer for product accepted [40]. Besides that, all of
customers are believed that if they have been sure with benefit
obtained from the highest product from the sacrifice given, so
customer will not be disinclined to select [33]. Organic
vegetables have the value for their customers [17], those value
from quality and risk side that become customer’s
consideration in selecting organic vegetables to be consumed.
Where in principle, those value are a customer trust for certain
condition on organic vegetables product. Some benefits
obtained from organic vegetables product is surely benefit that
is wanted by customer [41].
Customer perceived of product quality is depends on the
more innovative product attribute; one of these products that
concern towards environment [42], according to that case so
customer perceived variable for organic products quality is
appropriate used to evaluate customer’s understanding
towards the advantages of organic products from other
conventional products. It is in line with the theory of
Parasuraman, Zeithaml, & Berry (1985), where perceived
quality is all of evaluation from customer for product assessed
depends on its product attribute. If it is related with organic
products that has characteristic of environmental friendly, so
perceived quality stresses on customer evaluation for product
assessed which is superior from similar products and friendly
to environment. This point of view is depends on the
characteristic and additional value from organic product which
is no hazardous chemicals and its production is friendly to
environmental conservation, and also it makes healthy if it is
consumed in long term by human [42]. Based on phenomenon
on customer perceived quality and risk and it is connected
with the study of organic vegetables products, so it is stated
the first research hypothesis.
Hypothesis 1: Customer perceived quality for product has
negative correlation with customer perceived risk for organic
vegetables products.
B.
Customer Trust on Environmental Friendly Product
In principle, customer trust is related to the value is
embraced by customer for product or service that is assessed
fulfill customer needs [44]. When those necessities are not
fulfilled, so customer trust for product and service are reduced.
The reduce of customer trust impacts on customer’s interest in
selecting product offered by producer [8]. So producer in case
of company is needed to keep and increase customer trust for
product offered. Trust itself can be reviewed from several
sciences, it is not from customer side [45], the distinction is
relies on science and assumption that used by scientists to
research object [46]. However, in this research study focuses
on customer, remember customer trust is very needed by
company, the relationship with company marketing
performance [47]. Besides that, some companies use trust is
not only for performance but also for evaluating company
competitive advantage [48].
Morgan & Hunt (1994) said that “a group of people trust in
a reliable exchange of interitas of partner”. But in deeply for
organic products, customer trust is feeling that arises for
product or service from customer depends on the result of
credibility, benevolence and product ability on environmental
friendly performance [50]. It seems that customer trust as
customer dependence for product assessed, having a good
acceptance [51]. Organic products like organic vegetables, as
stated that has additional value from conventional product.
However, there is any customers who do not believe it, all
depends from performance of marketing manager in
reassuring customer to believe product of his creation. In the
previous study, it is stated that customer trust has levels,
which is on seller level, product and store [47]. But in this
study, it focuses on customer trust for product, which is
organic vegetables. It means that customer evaluated on trust
level of organic vegetables products exist in Supermarket.
Although, all of customer problems and retail is often
unresponsible, this case is a chance for company in giving
commitment to build customer trust for product [52].
Sometimes customer is doubt with their trust value of
product faced; it is because trust is invisible [53]. However,
customer trust can be reviewed trully from some cases like
competence, credibility, reliability, integrity, benevolence, and
provinding information [4]. Those evaluations do not focus on
the only product but in general from product side, seller or
store. It is different explained by Chen (2010), that for “green
product” can be assessed from four important cases, such as:
reliable, dependable, trustworthy, and expectations. And the
development in particular of organic vegetables, customer
trust can be added with environment protection and safer [54].
The value of customer trust on environmental friendly
product, finally it gathers on environmental attribute, where
product that produced do not impact negative to environment.
It is assumed to be important because customer trust will
increase when the existing value on organic product can be
trusted [51]. Customer value that has been discussed before, it
relates to perceived quality and risk product. So it seems the
correlation of customer perceived quality and risk product in
creation of customer trust [7], [8]. In the meaning of customer
trust also can be increased its value, where company can
increase customer perceived quality for product and stress
customer perceived risk. Reviewing form phenomenon of
customer behavior on trust and perceived value, so it is stated
the next research hypothesis.
Hypothesis 2: Customer perceived quality for organic
vegetables has positive correlation with customer trust for
product
Hypothesis 3: Customer perceived risk for organic vegetables
has negative correlation with customer trust for product
C.
Mediating of Store Image on Customer Behavior
Retail covers all of activities involved in selling goods or
services directly to the final customer for private use not
business. Retail is business which selling volume, especially it
derived from retail sales [47]. It is stated by Lin & Liao (2012)
“store image is the sum of information and emotional of a
consumer to a store characteristics, and other impression form
long time”.
Any organizations that sell to the final customer, both
producer, distributor or retailer stated do retail business, it is
not problem how goods or services is sold or wherever it is
sold [56]. Product and service offered to the final costumer is
surely has value, where those value are expected by customer
when they visit Supermarket [57]. Type of this Supermarket
currently is various, but for organic vegetables are commonly
on retail with the type of Supermarket. Many suppliers
provide product and service through Supermarket, with the
expectation of store image that is aimed improving the desire
to buy from its customer [58]. Actually, some customers also
often buy product in Supermarket because retail’s condition is
open because its product [47], [59]. It means that condition
from Supermarket influences customer behavior in doing to
select product. So reputation from Supermarket is very needed
to be evaluated by customer [60]. As much as Supermarket
like Supermarket exist in Indonesia, it determines more
increasing economy. So some Supermarkets increase quality
from its retail, both from product variety, price strategy, and
other promotion strategy [31]. In order to value of
Supermarket is more increased, this case is commonly called
with store image. It actually very influences all conditions of
customer purchasing when they are in Supermarket [61].
Organic vegetables are trully more merchantibility in
Supermarket [31], because it has different character with
common vegetables. Price and packaging become one of
important reasons why organic vegetables are on Supermarket.
Store image can be used indirectly to increase selling from
organic vegetables [7]. The value of organic vegetables inside
becomes another supports, that attract customer to do buying
[62]. Besides that, supermarket is assumed to use marketing
strategy through organic product, as one of product innovation
efforts [31]. So it seems in some Supermarkets in Indonesia
becomes organic vegetables as one of product choices.
The type of store image dimensions has been stated at first
by Martineau in 1958 in his research, the intended dimension
such as: layout and architecture, symbols and colors,
advertising and sales personnel. Next, it gets development that
customized with type of retail and research needs. Where in
principle it relates to three major cases, like merchandise, store
atmosphere and promotion [64]–[67]. Store image is one of
company marketing efforts in differentiation competition [68].
Many studies related to store image is connected with
customer behavior, where it has seen that there is correlation
between store image with customer behavior [69]. Perceived
quality and perceived risk are customer behavior that needs to
be faced by company [33]. In which the value is embraced by
customer on benefit and risk for product will change when
customer gets information directly inside of Supermarket [70].
In the previous study, it is explained that store image has good
correlation with customer perceived quality (Chen & Hsieh,
2011), customer perceived risk [72] or even on customer trust
[28]. According to those studies, so it is stated the research
hypothesis as the research in this study.
Hypothesis 4: Customer perceived quality for organic
products has positive correlation with store image
Hypothesis 5: Customer perceived risk for organic products
has negative correlation with store image.
Hypothesis 6: Store image has positive correlation with the
increasing of customer trust for organic products
III. METHOD
Empirical research studies focused on organic vegetables
products, with the study on Supermarket customer in West
Java Province is about 500 respondents randomly. Survey
were conducted by questionnaire in 2016 with using Structure
Equation Model (SEM) approach and Lisrel analysis tools.
Some variables reviewed related to customer perceived
quality, customer perceived risk, customer trust and store
image. Those analysis can be described on the framework
(Picture 1).
-----------------------------------------Insert Figure 1. Here
-----------------------------------------The Measurement of Research Variable
Every research variable was submitted in questionnaire, to
measure those variables used five of Likert Scale, which was
1-5. Where the measurement from “dissagree” until “agree”,
from every indicator that existed in each research indicators.
Customer perceived for organic vegetables product is
customer perceived for organic vegetables product and all of
additional value included friendly to environment, which is
compared with another alternative products [33], [42]. In
investigating customer perceived for organic products used
dimension through guarantee (origin, brand, label, variety),
organoleptic characteristic (firmness, colour, flavour, aroma)
dan external factors (damage, size, price, fressness) [38].
Customer perceived risk for organic vegetables is customer
perceived for sacrifice that is conducted by customer to have
organic product compared with other products [16], [32]. Risk
for organic product that assessed by customer having some
dimensions, such as: financial risk (price, cost, funding),
performance risk (needs, functions, beliefs), and psychosocial
risk (stress, dislike, refuse) [4], [39]. Customer trust is as
feeling that arises for product or service from customer
depends on the result of credibility, benevolence, and product
ability on performance of environmental friendly (Chen,
2010). Dimension used to evaluate customer trust for organic
products is reliable, dependable, trustworthy, expectations,
environment protection and safer [17]. Store image is a set of
information and customer’s emotional for characteristic and
another impression that assessed in long term period [55]. The
value of store image is viewed by customer has some
dimensions, like merchandise (assortment, style, quality),
store atmosphere (clean, display, wide, light, sound effect) and
promotion (advertising, decoration, discount) [64]–[67].
IV. DISCUSSION
Empirical result of the research related to mediating effect
of store image on customer behavior in Supermarket, it is
obtained 361 respondents which is valid for questionnaire.
Data is processed using Structure Equation Model (SEM)
approach, to analyze path analysis from research model. Data
processed from Lisrel, is explained the result of research
model testing related mediating effect of store image (Picture
2)
-----------------------------------------Insert Figure 2. Here
-----------------------------------------Research finding stated that there is model from mediating
effect of store image on customer trust through customer
perceived quality and risk for organic vegetables product.
Correlation value is divided into two parts; the value of blue-
marked indicates positive correlation or in the same direction,
while red-marked indicates negative or inversely.
-----------------------------------------Insert Table 1. Here
-----------------------------------------Before evaluating research model, it is stated analysis
result of research construct from all of research variables.
Measuring research model through validity test and reliability
test of research data [73]. Validity test is conducted by the
measurement of Correlation value on each question with its
variable, with the provision of value is more than 0.3 that is
assumed appropriate. While reliability test uses value rule
from Cronbach’s Alpha, where its value is greater than 0.5 to
be stated fulfilling the requirements. Test result is explained
completely on Table 1.
After doing testing to all research indicators which are
perceived quality, perceived risk, customer trust and store
image, are found conformity. It is assumed from Correlation
value of every indicator and the value of Cronbach’s Alpha is
appropriate with assessment criterion. It seems that research
model can be accepted of the result, where it is described on
Picture 2, that perceived quality and perceived risk have
impact on customer trust, both directly and through store
image.
Before hypothesis testing, it is stated for next the Loading
Factors value of each indicator. In which it can be known that
the dominant dimension information of research variable [73].
It also encourages the formation of correlation from each
research variable. In customer perceived quality for product,
all dimensions such as: guarantee, organoleptic characteristic
and external factors can support the formation of perceived
quality. But the most dominant of Loading Fcators value are
on organoloeptic characteristic, where indicator that plays a
role is Firmness, Colour, Flavour, and Aroma. Characteristic
from organic product becomes the important attention to
customer, besides other supporting exist in its environment
[30]. While in perceived risk, that most assumed to be risk to
customer is on financial risk dimension, remember price
becomes the distinction is very contrast [7]. If it is reviewed
from customer trust value, the case that becomes important is
on reliable and trusworthy. Customer will be more trusted for
reliability and ability of organic products [50]. While the
support of store image that has major role is store atmosphere,
besides other dimensions which is choice of merchandise and
retail promotion. Because store atmosphere is most perceived
and it impacts on customer psychology inside of Supermarket
[74].
The Result of Research Hypothesis Test
In the research finding (Picture 2), it is stated that there is
correlation of each research variable. Those research models
also conducted Hypothesis Test, where there are 6 (six) from
assumption on research hypothesis. The result that seems on
Research Hypothesis Test presented detail on Table 2.
-----------------------------------------Insert Table 2. Here
------------------------------------------
It is explained that customer perceived quality for organic
vegetables, test result explained that there is negative
correlation with customer perceived risk. The higher of
customer perceived quality, so its impact will be lower of
perceived risk that will be felt by customer [75], and vice
versa. The same case also happened among negative
correlation between customer perceived risk with customer
trust and the increasing of store image. It appears that risk can
impact on the reduction of customer trust for organic products
[45], and the reduction of store image that is assumed by
customer [28], when customer perceived risk for product
assessed increased. So customer perceived risk is needed to be
stressed. It is different with perceived quality, where positive
correlation with trust and the increasing of store image. It is in
line with the previous research [51], [71], that perceived
quality, trust and store image have correlation.
A.
The Correlation of Perceived Quality and Perceived
Risk for Organic Vegetables
The research finding stated that there is negative
correlation between perceived quality with customer perceived
risk for organic products. Quality of product that explained by
company, in this case is organic vegetables farmers which is
environmental friendly product, it is trully good by customer.
So the result can stress negative perceived from customer for
organic products. A part of this study is in line with previous
study that argued by Beneke et al. (2013), who differentiate is
customer’s point of view on buying interest finally on private
label product. The implied meaning of this study that for
organic products or others, between quality and risk have
connection when it is viewed by customer.
Vegetables farmers, in this case is producer who supplies
organic vegetables to Supermarket. It is considered necessary
to observe quality of its organic product, in order to be able to
compete with conventional product. In which especially in
West Java today, interested-person are still less. It is caused by
customer perceived risk of product still considered quite high.
The main causes is price differentiation, but it can be
controlled when customer’s knowledge of organic products is
increased [17].
B.
The Increasing of Customer Trust for Organic
Vegetables
Customer trust becomes the important thing that is needed
by company [76], so many companies try to increase trust
from customer. It is in line with study currently, where the
major goals of research model proposed is customer trust
increased. The research finding stated that there is positive
correlation from perceived quality on customer trust. Those
result can be interpreted that customer trust will increase when
company can increase product quality, so customer perceived
for product will increase. In line with the opinion of
Chinomona et al. (2013), that there is closed correlation
between customer perceived quality for product with customer
trust. Besides it needs observing another factors like customer
satisfaction, especially for Supermarket [77]. Reviewing of
those studies, it seems that customer trust will increase on
organic veetables products in Supermarket when customer
feels a better product quality.
Customer trust also will be less because there is other
customer behaviors like perceived risk [78]. It appears from
the study result that perceived risk has negative correlation
with customer trust. So the farmer as producer of organic
vegetables and Supermarket as seller, it is considered need to
observe perceived risk that assessed by customer for product
faced. Reviewing of two explanations are customer perceived
quality and risk on trust, it seems in line with previous studies
from [33], and it is only different views for product. Where it
does not focus before on environmental friendly product. So
this finding can complete previous studies, in which customer
trust will increase when company can control customer
behavior which is perceived quality and risk of product,
besides others value that have impact on customer trust. As
example on store image to increase customer trust [28].
Mediating Effect of Store Image on Customer Trust
It has been discussed before that there is good correlation
from customer perceived quality and risk [71], or with
customer trust [28]. However a depth study of this research is
effect from store image mediating, for customer behavior. If it
reviews from study result, it seems correlation value of
perceived quality on customer trust directly, it is smaller
compared with correlation through mediating of store image
(Picture 2). The study result appears store image can be
mediating between customer perceived quality for organic
products with customer trust. In which correlation value is
smaller directly from correlation value indirectly. As well as
the finding from mediating of store image for correlation of
perceived risk with customer trust, where correlation value is
smaller directly. So this full mediating model is become the
main finding of the research. With the assumption that store
image can trully become mediating between customer
perceived quality and risk with customer trust on organic
vegetables products.
Reviewing the research finding (Picture 2), can be
interpreted that to increase customer trust for organic
vegetables products is by controlling customer perceived
quality and risk of product through mediating from increasing
of store image. Actually, store image can be controlled
directly by perceived quality [71] and perceived risk [72]. And
even the fact store image impacts directly on the increasing of
customer trust quality [28]. So it is right when store image is
become as mediating effect of customer behavior, in order to
increase customer trust.
has been higher from perceived risk, actually it has not been
able to increase customer trust on organic products.
However, the research finding can answer those problems
which is the effort to increase customer trsut can be conducted
by store image mediating. Where the fact of store image can
be formed by customer perceived quality and risk for product
[55], and also it can influence customer trust [47]. The
implication of this study can be input on the next research that
store image can be mediating empirically. Especially the
relation with customer commitment [79] or the effort to
increase private label product [80]. In which the two cases are
not interpreted in this study. Besides that, this study result is
very useful, in order to increase customer’s desire in
consumpting organic products an innovative products, and
also encourage government efforts in facing “global warming”
issues. Absolutely, through focus review for environmental
friendly product.
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Picture 1. Research Framework
Picture 2. Model of Research Result
Table 1. Test Result of Research Variables
Variable
Sub Variable
Guarantee
Perceived
Quality
Organoleptic
Characteristic
External Factors
Financial Risk
Perceived
Risk
Performance Risk
Psychosocial Risk
Customer
Trust
Store Image
Reliable
Dependable
Trustworthy
Expectations
Envi. Protection
Safer
Merchandise
Item
Corr.
Origin
Brand
Label
Variety
Firmness
Colour
Flavour
Aroma
Damage
Size
Price
Freshness
Price
Cost
Funding
Needs
Fungtions
Beliefs
Stress
Dislike
Refuse
Reliable
Dependable
Trustworthy
Expectations
Envi. Protection
Safer
Assortment
0.629
0.598
0.619
0.579
0.566
0.633
0.651
0.610
0.529
0.589
0.511
0.443
0.666
0.735
0.710
0.702
0.672
0.679
0.602
0.528
0.524
0.610
0.531
0.567
0.550
0.587
0.518
0.654
Cron. A
0.745
0.824
0.551
0.853
Load.
Factors
0.58
0.54
0.57
0.54
0.52
0.60
0.64
0.56
0.49
0.61
0.46
0.37
0.64
0.77
0.72
0.70
0.66
0.67
0.48
0.40
0.35
0.53
0.50
0.52
0.33
0.40
0.45
0.60
Store Atmosphere
Promotion
Style
Quality
Clean
Display
Wide
Light
Sound Effect
Advertising
Decoration
Discount
0.637
0.635
0.659
0.779
0.680
0.581
0.581
0.597
0.595
0.598
Table 2. Value of Path Coefficients
Hypotheses
Path
t-value
Coefficients
Perceived Quality → Perceived Risk
-0.33
-4.21
Perceived Quality → Trust
0.45
5.06
Perceived Risk → Trust
-0.20
-3.41
Perceived Quality → Store Image
0.61
8.45
Perceived Risk → Store Image
-0.15
-2.71
Store Image → Trust
0.48
4.98
0.57
0.64
0.62
0.74
0.60
0.52
0.46
0.48
0.51
0.46
Result
Support
Support
Support
Support
Support
Support