Consumers Willingness to Pay and Factors Affecting Organic Vegetable Purchasing Decisions

Along with the development of modern society, it is increasingly aware of a healthy lifestyle. This is indicated by the increasing interest in organic products. The research objective was to determine the characteristics of consumers, the value of willingness to pay and the factors that influence the value of willingness to pay consumers to buy organic vegetables in Malang with the hope of helping CV. Kurnia Kitri Ayu Farm. This study uses nonprobability sampling with accidental sampling method. The data that has been collected is then analyzed quantitatively and qualitatively. Quantitative data were analyzed using the Contingent Valuation Method (CVM) and Factor Test. Qualitative data is presented in graphs and tables. The results showed that the value of willingness to pay (Willingness To Pay) for organic vegetables for kale was IDR 5,870 per 200 grams, for green spinach IDR 5,925 per 200 grams, for caisim commodity IDR 6,000 per 200 grams, while the TWTP value was IDR . 158,500 for kale, Rp. 160,000 for green spinach, and Rp. 162,000 for caisim. The factors that influence willingness to pay are lifestyle factors with an eigenvalue of 3.776, quality factors with an eigenvalue of 2.195, habit factors with an eigenvalue of 1.762, a reference factor with an eigenvalue of 1.184, and comfort and trust factors with an eigenvalue of 1.036.


INTRODUCTION
Indonesia has fertile soils and natural conditions that support abundant biodiversity. The tropical climate with sunshine occurs all year round, allowing farmers to grow crops throughout the year. These natural conditions support the cultivation of organic vegetables. Organic vegetables have more benefits than nonorganic vegetables, such as a sweeter taste, crunchier texture, longer freshness, and not harmful to health because they do not contain chemical residues (Suprihati, et al., 2015).
A healthy lifestyle increases public awareness of the dangers of chemical substances in food products to be consumed. People are increasingly selective in choosing vegetables, this is an opportunity for the organic vegetable market. This fact is confirmed by Rifai et al., (2008), who stated that organic food in the form of vegetables is now starting to interest people in Indonesia. There are many benefits to be obtained from consuming organic vegetables, such as the carrying capacity of the environment and not harmful to the health of consumers (Novandari, 2011).
The public perception of the price of organic vegetables which is more expensive than non-organic vegetables has been the obstacle they have faced so far (Aufanada et al, 2017). Nevertheless, there are many consumers who are aware of and choose healthy and quality products for consumption. The relatively high price is one of the reasons for the uneven distribution of consumption of organic vegetable products. It is important that organic vegetable producers determine the selling price by assessing the willingness of consumers to pay for it. This concept aims to support environmental sustainability, and both parties (producers and consumers) benefit equally. Consumers can get healthy and high-quality products, while the producers get profits.
Increasing public awareness of the need to eat healthy food has led them to be willing to pay high prices for organic vegetables (premium prices). Various previous studies have not examined the amount of WTP and have not found a factor influencing the decision of purchasing organic vegetables in Malang. The novelty of this research lies in the calculation of the WTP of organic vegetables in Malang with the concept of the Contingent Valuation Method, as well as to find the factors that influence the decision to purchase organic vegetables. The relevance of the research is to support an effective pricing strategy that can be applied by organic vegetable businessmen, especially at CV. Kurnia Kitri Ayu Farm. The research aims to determine the WTP of organic vegetables and to identify the factors influencing consumer decisions in purchasing organic vegetables.

METHOD Time and place
This research was conducted at CV. Kurnia Kitri Ayu Farm, which is located at Jalan Rajawali No. 10, Sukun District, Malang City, East Java. This location includes planting activities (part of the entire garden), administration, and a place of sale. Primary data collection was carried out in April-May 2020.

Variable Measurement
A number of variables used and their indicators are presented in Table 1. Organic vegetable indicators in this study were measured by a Likert scale. According to Sugiyono (2016) the Likert scale can be used to measure the product, place, culture, social, and psychology of a person or group of people concerning social phenomena. In this case, the social phenomenon is related to the purchase of organic vegetables. The research tool that uses a Likert scale can be made in the form of a checklist. The measured variable is translated into a variable indicator. The indicator is then used as a starting point for arranging instrument items which can be in the form of statements or questions. Table 2 presents the weighted scores for the Likert Scale.

Sampling technique
As a sampling technique, accidental sampling was used, which is a technique of determining the sample by chance. Consumers who had a chance to meet with researchers and made at least 2 purchases can be used as samples (Sugiyono, 2016). The population in this study were consumers of organic vegetables at CV. Kurnia Kitri Ayu Farm whose numbers were not yet known. Therefore, the formula used by Aufanada et al., (2017). The number of samples was determined as the number of indicators multiplied by 5 to 10. The study used 16 indicators so that the representative sample in this study was 16 x 5 = 80 respondents.
Referring to the theoretical and calculation formulas, the number of samples in this study was 80 respondents. A total of 80 respondents divided organic vegetables into three types, with 27 respondents for each type of vegetables.

Data collection technique
The following data collection methods are used: 1. Direct observations made by researchers at CV. Kurnia Kitri Ayu Farm 2. Interviews were conducted for direct communication with consumers of organic vegetables, especially regarding the value of willingness to pay and factors influencing the decision to buy organic vegetables. 3. Documentation, namely taking pictures of research objects, specifically CV. Kurnia Kitri Ayu Farm as supporting research information. The data and information obtained were analyzed quantitatively and qualitatively. Quantitative data is processed first using Microsoft Excel tools and Statistical Product and Service Solution (SPSS). The results are displayed in the form of tables, graphs, and SPSS output which are then descriptively analyzed and interpreted to discuss the results. The qualitative data obtained is presented in descriptive form using charts and tables.

Data analysis Quantitative Analysis
Quantitative analysis is used to determine the value of the Willingness To Pay (WTP) given by consumers to get organic vegetables. The calculation is carried out to determine the maximum price that consumers are willing to pay for organic vegetables. The calculation of quantitative analysis involves the value provided by consumers and the maximum average value is calculated using the Contingent Valuation Method (CVM).

Contingent Valuation Method (CVM) Analysis
According to Fauzi, (2010), the CVM analysis procedure in this study is as follows: a. Create a hypothetical market.
A hypothetical market illustrates an illustration of an event in the event of a future price change. This research illustrates the importance of consuming organic vegetables because people are health conscious. The shift from consuming non-organic vegetables to organic vegetables, concern with body health, lifestyle, and knowledge of organic vegetables has made consumers buy organic vegetables without considering the quoted price. b. Get auction value The auction value is carried out by the survey stage, either through direct surveys, telephone interviews, or by mail. These three methods using direct surveys will provide better results. This study aimed to obtain the maximum value of the respondents' Willingness to Pay for organic vegetables by using an Open-Ended Question method. Respondents are given the option to indicate the monetary value (IDR) for purchasing organic vegetables. c. Calculate the average WTP The average value of WTP is calculated using the following equation: = Relative frequency of the WTP-i class N = Number of WTP classes I = Respondent I who is willing to pay for organic vegetables.

Factor Analysis
Factor analysis is a multivariate statistical method attempting to explain the relationship between a set of variables that are independent of one another so that one or more sets of variables that are less than the initial variable can be made.
The statistics related to factor analysis are: a. Kaiser-Meyer-Olkin (KMO) Measure Of Sampling Adequacy (MSA), is an index used to examine the accuracy of factor analysis. A high value between 0.5 -1.0 signifies the factor analysis is correct, if less than 0.5, the factor analysis is said to be incorrect. The KMO test aims to determine whether all the collected data is sufficient to factor. The hypothesis of KMO is as follows: Hypothesis: H0: The amount of data is sufficient to factor H1: The amount of data is not enough to factor Test statistics: i = 1, 2, 3, ..., p dan j = 1, 2, ..., p rij = Correlation coefficient between variables i and j aij = Coefficient of partial correlation between variables i and j If the KMO value is greater than 0.5, then H0 is accepted, which means that the amount of data has been sufficiently factored. b. Bartlett's of sphericity is a statistical test used to test the hypothesis that variables are uncorrelated in the population. In other words, the population correlation matrix is an identity matrix, where each variable is perfectly correlated with itself with (r = 1) but completely uncorrelated with the others (r = 0).
The Bartlett test aims to determine whether there is a relationship between variables in a multivariate case. If the variables X1, X2, ..., Xp are interdependent, then the correlation matrix between variables is the same as the identity matrix. c. Communality is the number of variants contributed by a variable with all other variables in the analysis.
The variable is considered capable of explaining the factor if the Extraction value is> 0.50. It can also be called the proportion or part of the variant described by the common factor or the size of the factor's contribution to the variance of all variables. The Scree Plot is a plot of the eigenvalues as a vertical axis and the number of factors as a flat axis, to determine the number of factors that can be drawn (factor extraction).

Analysis of consumers' Willingness To Pay for Organic Vegetables
The initial stage carried out is searching for respondent information through a questionnaire to support the concept of WTP in CV. Kurnia Kitri Ayu Farm, Malang. If the respondent meets the criteria, it simplifies the analysis of the WTP. Table 3 presents Willingness to Pay and Unwilling to Pay organic vegetables in CV. Kurnia Kitri Ayu Farm, Malang.  Table 3 shows that 68 people (83.9%) of respondents are willing to pay, this is a very large amount compared to those who are not willing to pay. Respondents are willing to pay more because they are concerned with health benefits. This finding is consistent with data from Rofiatin & Bariska, (2018), who stated the desire for a good impact on organic vegetables for health, disease treatment, and better quality than nonorganic vegetables. Respondents who are not willing to pay because they believe that higher prices will affect the purchasing power of consumers, therefore, switch to the consumption of non-organic vegetables. These results also confirm that the price of organic vegetables is higher than non-organic ones, Yunus et al., (2019) and Fajriya, (2020). Aufanada et al., (2017) also stated that the main reason respondents are not willing to pay is the lifestyle of consumers that combines the consumption of organic and non -organic vegetables. Consumers are still considering the price, if the price of organic vegetables is too high and purchasing power is not affordable, then consumers decide to consume non-organic vegetables.
The following is the procedure for determining the Willingness to Pay value: 1. Build a hypothetical market The respondents were provided with information on organic vegetable products that generated increased community interest due to their awareness of healthy, safe, and nutritious lifestyles. Therefore, the respondent gets an overview of the situation in question. This is done so that respondents can determine the amount of money they are willing to pay.

Obtain auction value
The value of WTP (Willingness To Pay) was obtained from respondents using the Open-Ended Question method regarding the maximum WTP that consumers are willing to pay. It is noted that no proposal value is indicated, therefore the respondent has the freedom to provide the value to be paid.

The average value of WTP
After completing the survey, the next step is to calculate the average WTP for each person. This value is calculated based on the auction value obtained at the stage of determining the amount of the WTP value. This calculation is usually based on the mean and medium values. The estimated average value of the respondent's WTP is calculated based on the value of the WTP distribution given by the respondent who is willing to pay a certain price. Table 4 shows the average value of willingness to pay. Based on Table 4, organic vegetables obtained the WTP value per 200 grams respectively for kale, green spinach, and mustard of IDR 5,870, IDR 5,925, and IDR 6,000. This cost is higher than the sale price offered for all types of vegetables, which is IDR 5,000 per 200 grams. The average value indicates that there is a consumer surplus because the WTP value desired by the respondent is higher than the WTP range value, namely IDR 5,870-IDR 6,000. Although the price is given by CV. Kurnia Kitri Ayu Farm is already high, 67 respondents are still willing to pay more for organic vegetables. This shows that respondents in charge of organic vegetables are consumers who are more concerned about the quality and benefits of organic vegetables.
The results of this study are consistent with data from Yunus et al., (2019), who stated that the initial broccoli price of IDR 6,000 per 200 grams resulted in a higher WTP value of IDR 8,300 per 200 grams. Also for other vegetables, namely kale, with an initial price of IDR 5,500 per 200 grams, obtaining a WTP value of IDR 5,700 per 200 grams, carrots at an initial price of IDR 9,300 per 500 grams, obtaining a WTP value of IDR 11,125, pakcoy, the initial price of IDR 5,968, mustard, the initial price of IDR 5,500 per 200 grams, gets a WTP value of Rp. 5,687 and spinach, the initial price of IDR 5,500 per 200 grams, gets a WTP value of IDR 5,750.
This result is also confirmed by Priambodo & Najib, (2016)  The respondent's WTP curve was formed using the cumulative frequency of the number of respondents who chose the WTP value. This curve relationship illustrates the value of WTP who are willing to be paid by the number of respondents who are willing to pay at a certain WTP value. It is assumed that respondents who are willing to pay a high price are definitely willing to pay a lower price than that indicated.

Graph 3. Estimation WTP curve of Mustard
Graph 3 shows that the higher the value obtained, the fewer respondents are willing to pay for organic vegetables. This shows that the consumer's capacity to buy is less if the quoted price is higher. Increasing the price of organic vegetables too high will lead to a decrease in the number of consumers. For Kale, 6 respondents gave a WTP value of IDR 5,000 and 2 respondents gave a WTP value of IDR 8,000, with this the WTP value for kale was IDR 5,870. The difference in the quoted price is IDR 5,000 and getting a WTP value of IDR 5,870, followed by a surplus of IDR 870. 5 respondents estimated the WTP value of the green spinach of IDR 5,000 and 2 respondents gave a WTP value of IDR 7,500, while the WTP value of kale is IDR 5,925. The difference in the quoted price is IDR 5,000 and when the WTP value of IDR 5,925 is obtained, the surplus is IDR 925. Whereas for the mustard, 6 respondents gave a WTP value of IDR 5,000 and 1 respondent gave a WTP value of IDR 7,500, hereby the WTP value in mustard was IDR 6,000. The quoted price is IDR 5,000 and the WTP value is IDR 6,000, followed by a surplus of IDR 1,000.

Aggregate data and total WTP value
The final stage of the CVM method is to aggregate the average auctions obtained in the third stage. This process involves converting the sample mean data to the average of the entire population. The total value of WTP calculated using the number of respondents who are willing to pay, the TWTP (Total Willingness to Pay) value is IDR 158,500 for kale commodity, IDR 160,000 for green spinach commodity, and IDR 162,000 for mustard commodity.

Analysis of Factors Affecting the Organic Vegetable Purchase Decision
Factor analysis is used to find factors that can explain the relationship between the investigated independent variables. The data used in this analysis is the result of a questionnaire completed by respondents at CV. Kurnia Kitri Ayu Farm. The variables used in this analysis were the color of organic vegetables (X1), freshness of organic vegetables (X2), packaging of organic vegetables (X3), cleanliness of organic vegetables (X4), ease of access (X5), consumption habits (X6), group reference (X7), family (X8), recognition of social status (X9), lifestyle (X10), self-esteem (X11), perception (X12), learning (X13), motivation (X14), consumer trust (X15), provide recommendations (X16).
Factor analysis using the KMO table and Bartlett's Test is beneficial for determining the feasibility of a variable by looking at the KMO MSA (Kaiser-Mayer-Oikin Measure of Sampling Adequacy) value. If the KMO value is greater than 0.05, the factor analysis technique can be continued.  be said that the factor analysis can be continued because all variables influence the willingness to pay for organic vegetables. The next step is the analysis used to determine which variables should be excluded. Variables that MSA value is below 0.5 of the 16 variables should be excluded. In the Anti Image Matrice attachment, in the Anti Image Correlation, the variable value is the number marked with a (diagonal direction from top left to bottom right). In the output results, all of the variables were found to have MSA values above 0.5, so there were no variables to exclude. The next step in factor analysis is factoring or extracting all existing variables so that fewer factors are generated than all variables. This study uses a method in the extraction process, namely principal component analysis (PCA), which in this process produces the value of commonalities, the value of the generated extraction shows the percentage of variance of a variable that can be explained based on the formed factors and shows how much influence the variable has on the willingness to pay for organic vegetables at CV. Kurnia Kitri Ayu Farm. Table 7 shows the commonalities of the 16 variables, each greater than 0.5. Overall, this means that all the variables used are closely related to the generated factors. The variable with the highest value in this study is the cleanliness variable of organic vegetables, which is equal to 0.799. This means that 79.9 percent of the results of consumer interviews are interested in the cleanliness of organic vegetables in terms of the physical appearance of the vegetables sold before determining which vegetables to buy. Output Total Variance Explained, five factors are formed based on the eigenvalue value greater than one. The first factor has an eigenvalue of 3,776, the second factor has an eigenvalue of 2,195, the third factor has an eigenvalue of 1,762, the fourth factor has an eigenvalue of 1,184, and the fifth factor has an eigenvalue of 1,036. All the factors formed have a total percentage of the variance of 62,207, which means that 62 percent of the 16 variables can be explained by the 5 formed factors.

Formed Factors Influencing Organic Vegetable Purchase Decisions
The rotated component matrix table (appendix) shows the distribution of the 16 variables. These variables have been divided into the factors that are formed based on the value of the loading factor after which the rotation process is carried out. The loading value shows the magnitude of the correlation between th e original variable and the formed factors. his study led to the identification of five main factors that influence the decision to purchase organic vegetables at CV. Kurnia Kitri Ayu Farm. The next step is to set the factors that are formed in the factor analysis based on the variables that make up these variables.  (2020) 1. Lifestyle factors The first factor, called the lifestyle factor, has four variables, namely: family, lifestyle, appreciation, and learning. The variable with the highest loading factor is the family variable with a value of 0.793. According to Apriyani & Saty, (2013), lifestyle is a way of life, which means activities, interests, and opinions of a person. Individual lifestyles such as healthy lifestyles greatly influence consumer decisions in buying organic vegetables. According to Devi & Hartono, (2016), if the intensity is related to families is high, the decision to buy organic vegetables also increases, on the other hand, if the intensity is low, the decision to buy organic vegetables will decrease. This is consistent with Susanti et al., (2018), that family members are the primary reference group that has the greatest influence on purchasing as they are closest to the individual. Lifestyle is influential in determining the purchase of organic vegetables because consumers have a healthy life expectancy by consuming organic vegetables. This agrees with Suryoko, (2016) that the lifestyle of consumers affects purchasing decisions.
The lifestyle factor with the least loading value is in the learning variable with a value of 0.551. According to Kotler & Armstrong (2008), learning occurs through the interaction of encouragement, stimulation, signs, responses, and reinforcement. This shows that there are still many consumers who unaware of organic vegetables, but the owner provides education (stimulation) to consumers about organic vegetables which encourages consumers to give a positive response in the form of consuming organic vegetables.

Quality Factors
The second factor is called the quality factor, where it has four variables, namely the cleanliness of organic vegetables, the freshness of organic vegetables, packaging of organic vegetables, and color of organic vegetables. The variable with the highest loading is the organic vegetable cleanliness variable with a value of 0.877. This shows that consumers pay attention to the cleanliness of the organic vegetables they buy. According to Astuti et al., (2019), organic vegetables with a good appearance will make consumers loyal to the organic vegetables that will be purchased because consumers do not see the price, but the quality and benefits they receive. According to Anom Yuarini et al., (2015), the variable hygiene is one of the factors that influence respondents in making purchases. For the level of cleanliness at CV. Kurnia Kitri Ayu Farm, vegetables after harvesting is washed, afterward sorted, and packaged to preserve the quality of the vegetables. According to Hasan et al., (2019), stated that consumers prefer to buy organic vegetables that have a good appearance, such as leaves without holes.
The quality factor with the least loading value is found in the organic vegetable color variable with a value of 0.540. According to Anggiasari et al., (2016), if the harvest exceeds the harvest limit, the leaves will turn yellowish and not fresh, even though consumers expect the color of organic vegetables to be of good quality. This does not happen at CV. Kurnia Kitri Ayu Farm because harvesting is carried out on time so the quality of the organic vegetables obtained is maintained, and consumers continue to believe in the quality of the vegetables sold.

Habitual Factors
The third factor is called the habitual factor by having three variables consisting of consumption habits, perceptions, and motivation. The variable that has the greatest loading value is the habit of consuming a variable with a value of 0.741. According to Devi & Hartono, (2016), consumption and buying habits at the selected location, as well as health maintenance, are among the factors that encourage consumers to decide to buy organic vegetables. This shows that consumers of CV. Kurnia Kitri Ayu Farm have the habit of consuming organic vegetables to maintain health. The habit factor with the least loading value is the Motivation variable with a loading value of 0.545. According to Pardian et al., (2017), the motivation of consuming organic vegetables is because they are healthier and of higher quality. Many consumers have started to have high perceptions and interests in organic vegetables. According to Vista et al., (2020), the higher the motivation of consumers, the higher the decision to buy organic vegetables compared to the decision not to buy.

Reference Factors
The fourth factor, called the reference factor, has three variables, consisting of a reference group providing advice and recognition of social status. The variable that has the highest loading is the reference group variable with a value of 0.769. According to Dasipah et al., (2010), the reference group is one of the factors that influence consumers as it can provide direct information about the benefits, prices, and advantages of organic vegetable products. Many consumers of CV. Kurnia Kitri Ayu Farm receive recommendations on prices, benefits, and places of sale from the environment and the community they follow. This makes consumers buy organic vegetables at CV. Kurnia Kitri Ayu Farm without hesitation. These results are supported by Chrysanthini et al., (2018), that the most influential sources of information in choosing organic vegetables are friends, shared information, and the internet. The reference factor with the least loading value is the social status recognition variable with a value of 0.512. The results in the field show that not all consumers buy organic vegetables at CV. Kurnia Kitri Ayu Farm to gain social status recognition because they buy for the benefits of organic vegetables and are in an accessible location.

Trust and Convenience Factor
The fifth factor is called the trust and convenience factor. It has two variables, namely consumer trust, and ease of access. The variable with the highest loading is the consumer trust variable with a value of 0.722. According to Rifai et al., (2008), consumer confidence in buying organic vegetables is based on their health benefits, so that if the quoted price rises, consumers will continue to buy. Many consumers of CV. Kurnia Kitri Ayu Farm still buy vegetables even though the quoted price increased, although some consumers are reluctant to buy if the price rises because organic vegetables are not the main priority for consuming vegetables.
The trust and convenience factor which have the least loading is the ease of access variable with a value of 0.664. According to Ratnawati et al., (2017) and Novanda, (2020,), ease of access is a consideration in purchasing organic vegetables because it makes it easier for consumers to get the point of sale. Many consumers of CV. Kurnia Kitri Ayu Farm come from the neighborhood where they are sold, consequently, many consumers are reluctant to move elsewhere, even though the price of vegetables is rising.

CONCLUSION
1. The majority of the CV. Kurnia Kitri Ayu Farm consumers are females between the age of 37 -46. On average, one family can consist of 4 people. The latest education of the c onsumers are high school and the income is Rp. 3.000.000 to Rp. 5.000.000 on average. 2. As many as 68 consumers are willing to pay more for organic vegetables. The maximum value of Willingness To Pay for organic vegetables such as kale is IDR 5,870 per 200 grams, green spinach IDR 5,929 per 200 grams, and mustard IDR 6,000 per 200 grams. 3. Five factors influencing the decision to purchase organic vegetables, namely lifestyle factors with an eigenvalue of 3.776, quality factors with an eigenvalue of 2.195, habit factors with an eigenvalue of 1.762, a reference factor with an eigenvalue of 1.184 and convenience, and trust factors with an eigenvalue of 1.036.
The suggested advice is that CV. Kurnia Kitri Ayu Farm can increase the selling price of organic kale vegetables up to IDR 5,870 per 200 grams, green spinach up to IDR 5,929 per 200 grams, and mustard up to IDR 6,000 per 200 grams.