1. Introduction
The increasing awareness of environmental issues and the growing consumer interest in organic food, along with a willigness to invest in organic attributes, have prompted corporations to concentrate on organic marketing, driving significant transformations and advancements (Lavuri, 2022; Parashar et al., 2023). The rise of organic product development is essential to an emerging contemporary marketing paradigm, in which consumers prioritize comprehending the benefits of organic products before making purchasing decisions (Nguyen & Dekhili, 2019; Thøgersen et al., 2016).
Generation Z is the demographic cohort succeeding Millennials and preceding Generation Alpha. Individuals belonging to Generation Z were born in the mid-to-late 1990s to early 2010s, more specifically, from 1997 to 2012. The characteristics associated with this generation shape their product preferences and purchasing behaviors. According to Jílková and Králová (2020), Generation Z allocates a larger share of their spending to non-alcoholic food and beverages compared to Generations X and Y, with these items ranking third among the most frequently purchased products. Moreover, Gen Z individuals who actively engage in eco-friendly practices are more inclined to consume organic food (Lockie et al., 2002). Additionally, Lavuri et al. (2021) argue that factors such as knowledge, environmental consciousness, attitudes, and purchase intentions exert varying degrees of influence on the green buying behavior of Generation Z compared with Generation Y. In Vietnam, the Gen Z population reached around 15 million in 2020, accounting for approximately 19% of the working-age population (Nguyen & Nguyen, 2020), and is projected to approach nearly one-third by 2025 (Nguyen & Vo, 2023). Students represent a distinct subgroup within Generation Z and are characterized by higher levels of education and, consequently, potentially greater knowledge and awareness than other members of their cohort.
Although actual demand remains relatively low, the potential for organic products in Vietnam is increasing. (Hoang et al., 2022; Lavuri, 2022). Previous research has emphasized the importance of comprehending the underlying motivations for purchasing organic products among Vietnamese consumers (Ngan & Khoi, 2022; Nguyen et al., 2019; Nguyen & Vo, 2023). While numerous studies explore factors influencing willingness to pay (WTP) for organic food, including health concerns, knowledge, and environmental concerns, there is a dearth of research focusing on the mediating role of awareness, particularly among Generation Z students in an emerging market context like Vietnam (Firoozzare et al., 2024; Nguyen et al., 2025; Pham et al., 2023). Understanding how initial concerns translate into actual WTP through awareness is essential for bridging the gap between positive attitudes and actual purchase behavior.
Accordingly, the primary objective of this study is to identify the key factors that influence WTP for organic food among Generation Z students in Hanoi, with a specific focus on the mediating role of awareness of organic food. Based on these insights, the study aims to provide recommendations for policymakers and businesses seeking to strengthen organic food consumption strategies.
This research paper is structured as follows: the first section comprises an introduction into the topic of the paper. The second section presents the literature review and hypothesis development. The third section describes the research methodology. The fourth section reports the findings, which is followed by the discussion in the fifth section. The final, sixth section concludes with policy implications.
2. Literature review
This section reviews the existing literature relevant to the study and outlines the theoretical foundations that underpin the research. It synthesizes key concepts and prior findings related to the topic and establishes the framework guiding the analysis in this study.
2.1. Theoretical framework
The Stimulus-Organism-Response (S-O-R) paradigm provides the theoretical foundation for understanding the decision-making process of Generation Z consumers in this study. The S-O-R framework is a core component of the Theory of Consumer Behavior. It proposes that environmental stimuli (S) affect the internal state of the organism (O), which subsequently shapes behavioral responses (R) (Talwar et al., 2021). In the context of this study, health concerns, environmental concerns, and knowledge act as external and internal stimuli (S) that activate consumers’ cognitive processing. Awareness of organic food represents the organism (O) – the internal cognitive evaluation and recognition of value. Finally, WTP represents the behavioral response (R). This theoretical lens provides the necessary justification for the mediating role of awareness: stimuli alone are often insufficient to trigger a purchase decision (WTP) unless they are processed through consumers’ awareness, transforming latent concerns into active purchase motivations.
2.2. Willingness to pay for organic food
WTP is defined as the maximum price a consumer is prepared to pay for a given quantity of goods or services (Katt & Meixner, 2020). Unlike conventional products, organic food often carries a price premium due to its specific production standards. However, WTP is not uniform; it varies significantly depending on the country, product category, and supply chain characteristics. In developed markets, WTP is often driven by established lifestyle preferences and strong consumer trust in certification labels (Gundala & Singh, 2021). Conversely, in emerging markets such as Vietnam, consumers are highly price-sensitive, and their WTP is often constrained by skepticism regarding the authenticity of organic claims (Nguyen & Dekhili, 2019). In addition, WTP differs depending on product category: consumers are generally willing to pay more for organic fresh produce (vegetables, milk) due to direct health implications compared to processed dry goods. Therefore, understanding WTP in the Vietnamese context requires examining localized drivers, including specific health concerns and the level of product awareness among young consumers (Minh Ngo et al., 2013).
2.3. Factors influencing willingness to pay for organic food
This section discusses the key factors that influence consumers’ willingness to pay for organic food. It focuses on individual-level determinants identified in prior studies, with particular attention to their roles in shaping purchasing decisions in the context of organic food consumption.
2.3.1. Awareness of organic food
Awareness of organic food refers to consumers’ recognition and understanding of the distinct attributes (e.g. safety, nutritional value, labels) that differentiate organic products from conventional ones (Yang et al., 2014). Within the S-O-R framework, awareness acts as a cognitive filter. Previous studies in emerging markets such as Pakistan and Turkey have demonstrated a positive correlation between consumer perception/awareness and their WTP (Asif et al., 2018). When consumers possess a high level of awareness, they perceive the value of the product to outweigh the cost, thereby increasing their WTP. Based on this theoretical reasoning, the following hypothesis is developed:
H1: Awareness of organic food positively influences willingness to pay for organic food among Generation Z students in Hanoi.
2.3.2. Environmental concerns
Environmental concern reflects consumers’ awareness of and emotional detachment from environmental degradation, food safety, and sustainable consumption (Ghvanidze et al., 2017; Stern, 2002). Consumers with higher levels of environmental concern are more likely to seek information about organic food, understand its benefits, and recognize its role in promoting health and environmental sustainability, thereby enhancing their overall awareness of organic food products (Barrera-Verdugo & Durán-Sandoval, 2024). While some studies report a direct link between environmental concern and WTP (Bhattarai, 2019; Liang et al., 2024), others indicate that this relationship is complex. Consumers may care about the environment, but may not be willing to pay a premium unless they explicitly understand how a specific product contributes to sustainability (Ramalingam & Anuradha, 2021; Nguyen et al., 2025). Based on this reasoning, the following hypotheses are developed:
H2: Environmental concern positively influences awareness of organic food among Generation Z students in Hanoi.
H3: Environmental concern positively influences willingness to pay for organic food among Generation Z students in Hanoi.
2.3.3. Health consciousness
Health consciousness is widely regarded as one of the primary drivers of organic food consumption (Parashar et al., 2023). Consumers with higher levels of health consciousness tend to pay closer attention to food quality, nutritional value, and potential health risks associated with conventional food products (Parashar et al., 2023). As a result, they are more motivated to seek information about organic food, understand its health-related benefits, and distinguish it from non-organic alternatives, thereby increasing their overall awareness of organic food products. Moreover, consumers often view organic food as an investment in personal well-being (Ramalingam & Anuradha, 2021). According to the Theory of Consumer Behavior, individuals seek to maximize utility; thus, those with higher levels of health consciousness perceive greater utility in organic food, which justifies paying a higher price (Effendi et al., 2015; Jahangir et al., 2009). Based on these insights, the following hypotheses are proposed:
H4: Health consciousness positively influences awareness of organic food among Generation Z students in Hanoi.
H5: Health consciousness positively influences willingness to pay for organic food among Generation Z students in Hanoi.
2.3.4. Knowledge of organic food
Knowledge refers to the information consumers possess regarding organic farming processes and standards. Consumers who possess greater knowledge about organic food are more capable of evaluating its quality, safety, and environmental advantages (Nautiyal & Lal, 2025). This understanding reduces uncertainty and perceived risk related to higher prices. As a result, informed consumers are more likely to appreciate the added value of organic food and demonstrate a stronger willingness to pay a price premium compared to those with limited knowledge. (Mahmud, 2024; Singh & Verma, 2017). Aryal et al. (2009) argue that informed consumers are more likely to appreciate the complexity of organic farming, making them more accepting of higher prices. In the context of Generation Z students, who have access to higher education, this knowledge acts as a critical stimulus that shapes purchasing behavior (Gundala & Singh, 2021). This disparity in knowledge and consumption patterns underscores the need for targeted educational and marketing strategies to promote organic food in regions with lower levels of consumer awareness. Based on this reasoning, the following hypotheses are developed:
H6: Knowledge of organic food positively influences awareness of organic food among Generation Z students in Hanoi.
H7: Knowledge of organic food positively influences willingness to pay for organic food among Generation Z students in Hanoi.
2.4. Mediating role of awareness
A critical gap in the existing literature concerns the explanation of how consumer concerns translate into action. Using the S-O-R model, we argue that awareness plays a mediating role.
Firstly, health consciousness (S) motivates consumers to seek information, thereby increasing their awareness (O). This heightened awareness enables them to verify whether a product meets their health expectations, ultimately increasing their WTP (R) (Talwar et al., 2021; Rana & Paul, 2017).
Secondly, product knowledge and awareness of their benefits play a role in determining consumers’ WTP for these products (Mahmud, 2024; Singh & Verma, 2017). Knowledge serves as a foundation, but awareness is the active application of that knowledge in a specific purchasing context. Knowledgeable consumers are more likely to be aware of specific product attributes, which justifies paying a premium (Effendi et al., 2015; Mahmud, 2024; Singh & Verma, 2017).
Thirdly, environmental concern is often abstract. For this concern to influence WTP, it must be translated into concrete understanding through awareness. Consumers must first be aware that organic farming is eco-friendly before their environmental values can shape their WTP (Sesini et al., 2023; Newton et al., 2015; Ramalingam & Anuradha, 2021). Without awareness, environmental concern remains a latent attitude without behavioral consequences (Sesini et al., 2023). Based on this reasoning, the following hypotheses are proposed:
H8: Awareness of organic food positively mediates the relationship between health concerns and willingness to pay.
H9: Awareness of organic food positively mediates the relationship between knowledge and willingness to pay.
H10: Awareness of organic food positively mediates the relationship between environmental concerns and willingness to pay.
Finally, the research model is proposed as follows.
Figure 1: The proposed conceptual model
Source: Authors’ illustration
3. Methodology
This section presents the methodology adopted in this study. It describes the research design and the procedures used to collect and analyze data, with a particular focus on the measurement instruments employed to ensure the reliability and validity of the research findings.
3.1. Measurement instrument
To ensure content validity of the research instrument, all measurement items for the constructs were adapted from established scales in previous studies and subsequently modified to fit the context of organic food consumption in Vietnam. Each item was assessed using a 5-point Likert scale ranging from 1 (strongly disagree) to 5 (strongly agree). Before administering the official survey, a rigorous translation and validation procedure was implemented. The original English items were translated into Vietnamese and reviewed by a panel of six lecturers from the Vietnam National University to ensure terminological accuracy and cultural appropriateness. A pre-test with five students was then conducted to verify the clarity, readability and overall comprehensibility of the questionnaire. The final measurement scales and their corresponding sources are presented in detail in Table 1.
Table 1: Variables, items, and explanations used in the PLS-SEM
Source: Authors’ constructions
3.2. Sampling design and data collection
To ensure sample representativeness while maintaining logistical feasibility, this study employed a multi-stage random sampling technique rather than simple random sampling.
Stage 1 (Cluster Selection): From a list of 21 major universities in Hanoi, five universities were randomly selected to serve as primary sampling units (clusters) using the randomization tool on random.org. These selected universities were: Vietnam National University of Agriculture, Banking Academy, Posts and Telecommunications Institute of Technology, Electric Power University, and National Economics University.
Stage 2 (Participant Selection): Within each selected university, the research team collaborated with administrative offices to access student lists. Based on these lists, classes and individual students were randomly selected. Data were then collected through direct, face-to-face distribution of structured questionnaires to students, where the research team met participants in person and administered the survey.
Data collection was conducted from December 2023 to March 2024 via a face-to-face questionnaire approach. This direct interaction ensured a high response rate and data quality. Ultimately, a total of 534 valid questionnaires were collected and used for the final analysis.
3.3. Data analysis method
The collected data were first processed using Microsoft Excel 2013 and subsequently analyzed using SmartPLS 3.5 software. The study employed Partial Least Squares Structural Equation Modeling (PLS-SEM), a method suitable for exploratory research and complex models with non-normal data distributions. Following the two-step procedure recommended by Hair et al. (2019), the analysis proceeded as follows. Firstly, the measurement model was assessed. The reliability and validity of the constructs were examined using outer loadings, Cronbach’s alpha, Composite Reliability (CR), and Average Variance Extracted (AVE). Discriminant validity was assessed using the Fornell-Larcker criterion. Secondly, the structural model was assessed. The hypothesized relationships and the mediating role of awareness were tested using the bootstrapping method with 5000 subsamples to determine the significance of the path coefficients.
Data collection took place from December 2023 to March 2024 through a structured questionnaire. A total of 534 valid responses were obtained and included in the final analysis. The sample size is described in Table 2.
Table 2: Sample collected in different universities
Source: Authors’ calculations
4. Results
This section presents the empirical findings of the study. It begins with a description of the respondents’ demographic and general profiles, followed by the key results derived from the data analysis.
4.1. Profiles of the respondents
The demographic profiles of the 534 respondents indicate a balanced distribution across gender, income levels, and fields of study, as presented in Table 3.
Table 3: The demographic profiles of the respondents
Note: 1 USD = 24,470 VND according to Vietcombank on 8th March 2024.
Source: Authors’ calculations
Regarding the descriptive statistics of the measurement items, Table 4 shows that the mean values range from 3.225 to 4.395, with standard deviations between 0.702 and 0.959, reflecting consistent responses. Importantly, the skewness and kurtosis values fall within the recommended range of -2 to +2, confirming that the data distribution is sufficiently normal for PLS-SEM analysis without significant outliers.
Table 4: Descriptive statistics for variables
Source: Authors’ calculations
4.2. Assessment of the measurement model
The measurement model was evaluated based on internal consistency reliability, convergent validity, and discriminant validity (Hair et al., 2019). First, indicator reliability was assessed using outer loadings. As shown in Table 5, items AWE3 and HEC1 were removed because their outer loadings fell below the recommended threshold of 0.70. All remaining items demonstrated loadings above 0.708. Second, internal consistency reliability was confirmed as all Cronbach’s alpha and Composite Reliability (CR) values exceeded the 0.70 threshold. Third, convergent validity was established, with Average Variance Extracted (AVE) values surpassing 0.50 for all constructs, ranging from 0.625 to 0.784, which can be seen in Table 5.
Table 5: Assessment of the measurement model
Source: Authors’ calculations
Discriminant validity was assessed using the Fornell-Larcker criterion, as can be seen in Table 6. The results show that the square root of the AVE for each construct (diagonal values) exceeds its highest correlation with any other construct in the model. This confirms that the constructs are empirically distinct (Hair et al., 2019).
Table 6: Discriminant validity test results
Source: Authors’ calculations
The results of the hypothesis testing are presented in Table 7, and the corresponding path diagram illustrating both direct and indirect effects among the constructs is presented in Figure 2. The findings highlight the significant mediating role of awareness of organic food in shaping consumers’ WTP. Although the direct effect of environmental concerns on WTP is not significant (β = 0.023, p = 0.650), its indirect effect through awareness is significant (β = 0.075, p < 0.001), indicating that heightened awareness can effectively translate environmental concerns into a stronger willingness to pay. Similarly, health consciousness and knowledge of organic food exert both direct and indirect effects on WTP. The significant indirect effects through awareness (β = 0.098, p < 0.001 and β = 0.061, p = 0.005, respectively) further emphasize the importance of consumer awareness as a bridge between these factors and payment behavior. These results suggest that awareness serves as a key mechanism that amplifies the impact of consumers’ environmental and health motivations, as well as their knowledge, on their willingness to pay for organic products.
Table 7: Path coefficient and total indirect effect of the structural model
Source: Authors’ calculations
4.3. Assessment of the structural model
The structural model was assessed to test the hypothesized relationships. The model’s explanatory power is reflected in the R2 values (Figure 2): it accounts for 34.4% of the variance in awareness of organic food (R2 =0.344) and 40.1% of the variance in WTP (R2=0.401), indicating moderate predictive accuracy.
Hypothesis testing (direct effects): The bootstrapping results (5000 subsamples) presented in Table 7 indicate that awareness (β=0.319, p<0.001), knowledge (β=0.310, p<0.001), and health consciousness (β=0.139, p=0.006) exert significant positive direct effects on WTP. Thus, hypotheses H1, H2, and H3 are supported. In contrast, environmental concerns do not have a significant direct impact on WTP (β=0.023, p=0.650), leading to the rejection of the hypothesis H4.
Figure 2: Structural model
Source: Authors’ illustration
Mediation analysis (indirect effects): The study specifically examines the mediating role of awareness. The results confirm significant indirect effects:
• Health consciousness → Awareness → WTP (β=0.098, p<0.001).
• Knowledge → Awareness → WTP (β=0.061, p=0.005).
• Environmental concerns → Awareness → WTP (β=0.075, p<0.001).
These findings support hypotheses H5, H6, and H7. Notably, although environmental concerns have no direct effect on WTP, it exerts a significant positive indirect effect through awareness, highlighting a full mediating role of awareness in this specific relationship.
5. Discussion
The primary objective of this study was to decode the mechanism driving the WTP for organic food among Generation Z students in Hanoi. Interpreted through the lens of the S-O-R framework, the findings confirm that awareness of organic food functions as the critical Organism that processes external Stimuli (health, knowledge, environmental concerns) to generate the behavioral Response (WTP).
The empirical results identify awareness of organic food as the most influential determinant of WTP. This aligns with the findings of Yang et al. (2014) and Asif et al. (2018), who argue that in emerging markets, consumer confidence depends heavily on their ability to recognize and comprehend product attributes. For Generation Z, an information-rich cohort, mere exposure to organic products is insufficient. They require a deeper, internalized awareness of certification standards, labeling cues, and specific benefits to justify the price premium. This supports the hypothesis H1 and reinforces the S-O-R premise: without the cognitive processing represented by the Organism (awareness), the purchase response is unlikely to occur.
One of the most intriguing findings of this study is the insignificance of the direct relationship between environmental concerns and WTP (H4 not supported), contrasted with a significant indirect effect through awareness (H7 supported). This pattern reflects a common gap in green consumerism in developing nations: students may possess high environmental concerns (as shown in the high descriptive mean), but this abstract concern does not automatically translate into financial commitment. This contradicts simpler models described by Bhattarai (2019), but resonates with the complex decision-making processes explained by Ramalingam and Anuradha (2021). The results suggest that environmental concerns influence WTP only when activated through specific product awareness. In other words, Gen Z consumers need to be aware of how a particular organic product benefits the environment before they are willing to pay for it. Awareness thus acts as a bridge that converts abstract environmental values into concrete purchasing actions.
Consistent with the Theory of Consumer Behavior, both knowledge of organic food and health consciousness exert strong positive effects on WTP, directly and indirectly. The substantial impact of knowledge corroborates the findings of Singh and Verma (2017), suggesting that as students gain more factual information about organic farming processes, their skepticism decreases, and their valuation of the product increases. Similarly, the results reaffirm that egoistic motives (personal health) often outweigh altruistic motives (environment) in driving WTP. As noted by Parashar et al. (2023), health is perceived as a direct personal investment. However, this study adds an important nuance: even health-conscious students rely on awareness to verify that an organic product genuinely delivers the promised health benefits, which supports the hypothesis H5.
In summary, the findings provide empirical evidence that for Vietnamese Gen Z, awareness is the gatekeeper. Knowledge and concerns provide the fuel, but awareness is the engine that drives the WTP.
6. Conclusions, implications, and research limitations
This section summarizes the main findings of the study and presents the conclusions drawn from the analysis. It also discusses the theoretical and practical implications of the results, as well as the limitations of the research and suggestions for future studies.
6.1. Conclusion
This study set out to examine the factors influencing the WTP for organic food among Generation Z students in Hanoi through the S-O-R framework. Analysis of data from 534 students using PLS-SEM yields two central conclusions. First, awareness of organic food emerges as the most powerful determinant of WTP, exerting the strongest impact both directly and as a mediator. This underscores that for young consumers in an emerging market, the cognitive process of understanding product attributes is a prerequisite for monetary commitment. Second, the study reveals a critical nuance in green consumerism: environmental concerns alone are insufficient to drive WTP. While environmental concerns do not directly trigger WTP, they significantly drive WTP when mediated through awareness. This indicates that Generation Z’s broad concern for environmental issues only translates into purchasing behavior when they are specifically aware of how organic products contribute to environmental sustainability. By validating the full mediating role of awareness, this research fills a significant gap in the literature regarding consumer behavior in transition economies like Vietnam.
6.2. Practical implications
Drawing from the research findings, several practical implications are proposed, emphasizing the pivotal role of awareness in shaping consumer behavior towards organic food.
The first implication is for policymakers, given that health consciousness and knowledge are strong predictors of WTP. Public health initiatives should therefore extend beyond general encouragement and instead incorporate educational programs in universities that explicitly connect organic food consumption to long-term health benefits and (national) food safety standards. Policymakers should also consider establishing a transparent and easily accessible national database of certified organic producers to enhance the knowledge aspect and reduce skepticism among young consumers.
The second implication concerns business managers and marketers. The finding that environmental concerns have no direct impact on WTP serves as a wake-up call for marketing strategies. Simply labeling a product as eco-friendly is ineffective for this demographic. Instead, businesses and marketing strategies should focus on tangible awareness. Marketing messages should bridge the gap between abstract environmental concerns and concrete product benefits. Rather than relying on vague slogans, brands should use storytelling or QR codes to demonstrate exactly how their organic farming practices protect the soil or reduce emissions. This builds the awareness necessary to trigger the indirect path to WTP. Since awareness is the strongest driver of WTP, businesses must also justify the price premium by highlighting certification labels and nutritional facts on packaging. This approach aligns with Gen Z’s high information-seeking tendencies and helps transform them from passive observers into active buyers.
6.3. Research limitations and future directions
While this study offers valuable insights, several limitations exist. The first limitation concerns the sample, which was restricted to university students in Hanoi. While students represent an important segment of Generation Z, their purchasing power differs from that of working young adults. Future research should therefore broaden the demographic scope to include older Gen Z individuals with independent incomes and extend data collection to other major cities, such as Ho Chi Minh City, or rural areas to enhance the generalizability of the findings. The seecond limitation refers to the model specification. The current model focused exclusively on psychometric constructs (health, environment, knowledge). It did not incorporate moderating demographic variables such as gender, monthly income, or academic background. Future studies should integrate these moderators to investigate whether the mediating role of awareness varies across different income groups, gender categories, or educational levels, providing a more nuanced and granular understanding of organic consumption behavior.
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Čimbenici koji utječu na spremnost na plaćanje organske hrane među studentima generacije Z u Hanoiju, Vijetnamu: Medijacijska uloga osviještenosti
, Ly Thu Cuc