The Role of Sustainability in Shaping Customer Perceptions at Farmers’ Markets: A Quantitative Analysis

Abstract

Purpose—This research paper examines the critical factors in customer satisfaction while purchasing fruits and vegetables at farmers’ markets. Design/methodology/approach—This study was conducted using a prepared questionnaire to collect data on a random sample of 235 customers of farmers’ markets in the state of Maharashtra, India. The research was carried out in the year 2023. Seven hypotheses were tested concerning the relationships between the variables of interest. The variables of convenience, variety, quality, price, health and hygiene, and service conditions were used as independent constructs and were proxied by reflective indicators. Customer satisfaction and customer loyalty were treated as an exogenous variable and an endogenous variable, respectively. Structural equation modeling was used to investigate the model relationships and confirm the theoretical model. Findings—The findings validate all the reflective indicators used in the study. The latent variables of convenience, variety, quality, price, health and hygiene, and service conditions positively and significantly affect customer satisfaction, and customer satisfaction positively and significantly affects customer loyalty toward farmers’ markets. The structural equation explains approximately 55% of the variation in customer satisfaction related to convenience, variety, price, quality, health and hygiene, and service conditions. Significance—The study results provide insights into the factors that influence consumer behavior and attitudes toward farmers’ markets. By identifying these predictors, this study can help farmers’ markets and other stakeholders develop effective marketing strategies to attract and retain customers, ultimately promoting sustainable food production and consumption. Additionally, the results can inform policymakers on how to support and promote farmers’ markets as healthy and sustainable food sources. Practical implication—By implementing the practical suggestions derived from the implications of this research, farmers’ markets can optimize customer satisfaction, boost customer loyalty, and reinforce their position as valuable contributors to local communities’ well-being and sustainability. Originality/value—The acceptance of farmers’ markets in India as an alternative shopping destination for fruits and vegetables is gradually increasing. This exploratory study conducted on farmers’ markets examined several factors, including price, in assessing customer satisfaction and farmers’ markets’ effectiveness at positioning themselves as shopping destinations for consumers in India.

1. Introduction

As an agricultural economy, India provides thousands of tons of fresh produce to rural and urban consumers. However, produce is wasted during the marketing phase for several reasons, including the lack of minimum support pricing for produce and a lack of storage infrastructure. Small and marginal farmers require adequate marketing facilities to sell their produce in open markets; therefore, they must have an alternative mechanism to reap the benefits of their produce during the growing season. Looking at farmers’ markets through the lens of sustainability means paying attention to cutting down food waste, producing food locally, and encouraging direct sales from farmers to shoppers. By selling their food directly, small and marginal farmers reduce waste and help improve their local businesses and the environment. Making sure food items are fresh and reducing carbon emissions thanks to shortened supply chains encourages sustainable agriculture. Experimentation with weekend farmers’ markets in Maharashtra, India, provided a new direction for the farming community, allowing farmers to sell their fresh produce directly to consumers. Maharashtra, one of India’s most urbanized and agriculturally active states, presents a unique context for exploring farmers’ markets as sustainable food system interventions. With a growing urban middle class and a substantial population of smallholder farmers, the region has actively promoted farmers’ markets through state and municipal initiatives. These markets serve as critical nodes in reducing food miles, supporting local economies, and enhancing consumer access to fresh, seasonal, and locally grown produce. The choice of Maharashtra thus allows for the investigation of consumer satisfaction within an environment where sustainability, food access, and rural empowerment converge in practice

There is significant potential for Indian farmers’ markets to spread from rural to urban populations. By selling directly to consumers, farmers avoid transportation costs and the influence of intermediaries, thereby reducing the cost of their produce, while for consumers, locally grown produce and supporting farmers are the most important reasons for purchasing from farmer-to-consumer direct markets [1]. Consumers view farmers’ markets positively because of the associated health and ethical values [2] and the variety of available fresh produce [3,4]. The transition from a rural to an urban landscape in India offers farmers more options to diversify and market their produce. The rural–urban dynamic is a perfect example of an opportunity for farmers’ markets. There is a need to increase the number of farmers’ markets to create opportunities and continuous revenue streams for local farmers. This development will also help to promote sustainable food production and consumption. Local administration support is essential to expand farmers’ markets to fruits and vegetables, millet, and another seasonal crop produce. To provide seamless access to farmers’ markets, farming communities should collaborate with local administrations to make farmers’ visible and accessible to the public.

Understanding changing consumer needs and expectations in the food market is challenging. Urban consumers seeking variety and quality in produce may view local farmers’ markets as an alternative method of sourcing this produce. Ref. [5] investigated the determinants of consumer attitudes and behaviors toward farmers’ markets.

The objective of this study was to identify the predictors of consumer behavior and attitudes toward farmers’ markets. One of the predictors that this study explored was customer satisfaction. This study measures customer satisfaction using the reflective indicators of convenience, variety, quality, price, health and hygiene, and service conditions.

This study contributes to the broader sustainability discourse by examining how service quality dimensions in farmers’ markets—a recognized pillar of local, sustainable food systems—affect consumer satisfaction and loyalty. By understanding consumer preferences and satisfaction drivers, this research provides actionable insights for fostering the repeat patronage of environmentally conscious, economically inclusive, and socially embedded food outlets. These findings are especially relevant for sustainable urban food planning and community-supported agriculture initiatives in emerging economies like India

The remainder of this paper is organized as follows. Section 2 provides a definition of a farmers’ market. Section 3 presents customer satisfaction. Section 4 summarizes the literature review. Section 5 and Section 6 explain the underlying conceptual model and research method used in the study. Section 7 presents the analysis and findings obtained. Section 8 presents the conclusions, significance, and limitations of the study.

2. Farmers’ Markets

Direct marketing (i.e., direct selling) can be characterized in several ways. Ref. [6] stated that a “farmers’ market is where farmers sell the food they have grown, and consumers buy it.” Similarly, Ref. [7] noted that “farmers’ markets are market outlets where farmers bring their produce for sale directly to consumers.” Farmers’ markets can range from “small markets held once a week with a few vendors to large weekend events with hundreds of vendors and crowds in the thousands.” Ref. [8] described farmers’ markets as “a location where producers sell their produce directly to consumers.” Direct communication between farmers and consumers fosters a higher awareness of the origins and methods of food production. Furthermore, it enables farmers to gain fair revenue for their goods and allows consumers to buy high-quality fresh produce. Ref. [9] observed that food markets are displaying increasing differentiation based on a variety of socially constructed food quality factors. As a result, new markets for quality food are emerging, in addition to the existing markets for mass-produced food.

3. Customer Satisfaction

Customer satisfaction is considered the fundamental objective and purpose of a business. Marketers place great importance on consumer satisfaction as it is widely perceived as a crucial factor in generating repeat sales, fostering positive word-of-mouth, and cultivating consumer loyalty [10]. The level of satisfaction of customers in farmer-to-consumer direct marketing can be affected by various factors, including but not limited to the ambiance of the store, the quality of customer service provided, and the overall quality and standard of the products offered [11,12,13,14]. These factors significantly influence customer satisfaction in both organic and conventional on-farm stores in Germany [12,15]. Purchase motivation, satisfaction, and loyalty are also associated with direct farmer-to-consumer markets. Ref. [16] investigated the relationship between perceived quality and customer satisfaction and loyalty and found that product, experience, and economic factors influenced purchase motivation, which in turn affects satisfaction and loyalty. Gender also moderates the relationship between purchase motivation, satisfaction, and loyalty, with different factors being important for males and females. Understanding and addressing these factors can help direct sales marketers to develop effective marketing techniques to enhance customer satisfaction and loyalty in farmer-to-consumer direct marketing.

4. Literature Review

Farmers’ markets have become popular venues for direct-to-consumer food sales in recent years. A growing body of literature explores the economic and social benefits of these markets.

The needs and expectations of consumers are changing with lifestyle habits and urban living conditions. Customers looking for a different shopping experience are attracted to farmers’ markets, which offer a unique shopping experience and provide good-quality, locally grown fresh fruits and vegetables. Farmers’ markets offer good-quality produce, variety, and affordability. Various factors influence customer satisfaction with farmers’ markets. Locally grown fruits and vegetables give customers great satisfaction because of their freshness, quality, and variety. Customers also encourage local farm communities to source and produce fruits and vegetables sustainably. Customers’ direct interactions with farmers make them more aware of farming products and cultivation practices.

The environments in which farmers’ markets operate provide customers with a great sense of community belonging, a spacious setup, parking facilities, and the opportunity to taste food samples. The joy of the shopping experience and the fun of exploring various products make farmers’ markets unique places to visit. Farmers’ markets have the potential to provide delightful shopping experiences for consumers through the combination of high-quality products, a community atmosphere, and a commitment to local and sustainable sourcing. By focusing on these aspects and addressing any issues or concerns, farmers’ markets can ensure greater consumer satisfaction and loyalty.

4.1. Consumer Preferences for Farmers’ Markets

Several studies have explored the key factors that influence consumers’ preferences when purchasing fresh fruits and vegetables from farmers’ markets. These factors include quality, quantity, freshness, taste, and health benefits. The freshness and health benefits of food are widely recognized as among the most important factors in food purchases [3]. Additionally, food freshness [17], taste [18], domestically sourced foods [19], and food quality [8] are significant motivators for shopping at local farmers’ markets. Seasonal availability, unique produce, quality, freshness, and perceived health benefits are important determinants of the decision to purchase from farmers’ markets [20]. Consumers expect high-quality, fresh, healthy, and domestically sourced produce grown using responsible ecological food and agriculture practices [21]. Ref. [22] found that higher-level motivations, such as environmental consciousness and ethical identity, can influence consumer behavior toward short food supply chains (SFSCs), while product quality is a key factor influencing consumers to buy directly from producers [23]. Ref. [24] found that Spanish consumers consider price, geographical origin, the protected designation of origin label, and olive variety as the most important attributes when choosing olive oil.

Ref. [25] found that consumers primarily visit farmers’ markets to purchase fruits and vegetables and have social contact. Consumers who purchase from public markets prioritize freshness, quality, and affordability [26]. Similarly, Ref. [4] found that price and quality were the two most significant factors driving purchase decisions. Consumers perceive farmers’ harvests as clean, fresh, healthy, delicious, a valuable commodity, reasonably priced, having produce likely to be cultivated domestically, and environmentally friendly. Compared with supermarket produce, farmers’ market goods are likely to be more visible to the processor and producer. Ref. [27] reported several key marketing strategies which would foster the greater patronage of farmers’ markets and purchases of locally grown food. Ref. [28] found that consumers seek better food products at farmers’ markets. Ref. [29] identified “clean,” “vicinity,” “variation,” and “affordable” as attributes that help consumers achieve self-directed personal goals. Ref. [30] suggested that quality and price are the primary considerations consumers account for when purchasing food, while [31] found that freshness and flavor were the most common motivations for shopping at farmers’ markets. Ref. [32] reported that most consumers return to farmers’ markets because of the fresh, unique, and local food. Ref. [33] confirmed that intending to buy more fruits and vegetables at farmers’ markets is the primary determinant of purchase decisions. While prospective consumers do not expect lower prices, they do expect and value fresh, high-quality, locally grown food that is nutritious and seasonal. Ref. [34] found that produce quality, product presentation, social interactions, and attractions were important to shoppers. Ref. [35] discovered that the descriptor “local” had a significantly greater impact on apple choice compared with the descriptor “organic.” In a review, Ref. [7] noted that consumers consider freshness, attractiveness, diversity, product selection, the accessibility of locally produced goods, pricing, and shop environment when purchasing fruits and vegetables. Similarly, Ref. [36] found consumers exhibited more positive attitudes toward fresh, locally produced goods.

4.2. Price to Pay

According to [28], consumers prioritize high-quality food items even if they are more expensive. Similarly, Ref. [20] emphasized that product quality is a crucial motivator, while price does not pose a significant obstacle to purchasing or supporting farmers’ markets. In contrast, Ref. [37] noted that affordable prices and the potential for profit were the primary motivators for some consumers. However, these consumers also valued flavor, freshness, health, sustainability, and community. Some studies have shown that consumers may be unwilling to pay higher prices for produce. Ref. [38] reported that some consumers exhibited a semantic preference for locally sourced products and were hesitant to buy non-local goods at any price. Ref. [39] stated that consumers preferred locally grown potatoes and were willing to pay more for them. Similar findings were also observed by [40], along with the fact that consumers are willing to pay a premium for locally produced and organic walnuts. Ref. [41] observed that consumers were willing to pay more for organic honey than for local honey.

4.3. Commitment to Promoting Regional Farming and Foods

Another motivator for shopping at farmers’ markets is supporting small growers [27,31,32], the local community [20], farming [42], and local farmers and the local farm economy [17]. Ref. [36] observed that consumers’ tendencies to support small farmers are significantly linked to their frequency of purchasing from farmers’ markets. Ref. [43] confirmed through a multivariate analysis that a commitment to embracing seasonal produce motivates consumers to purchase produce at farmers’ markets. Ref. [44] discovered that consumer views regarding immediate communication with farmers, contribution to farmers’ incomes, and removing contaminants are closely connected with the unique product offerings at farmers’ markets. Farmers’ markets have significant benefits in building direct ties with growers and establishing community relations [21]. According to [45], the ethical sustainability dimension of local food shopping does not positively affect consumer buying in this market. Ref. [46] found that consumers’ willingness to support local production was independent from the values associated with product freshness and farm size.

4.4. Social Interaction, Gratification, and Erudition

Ref. [25] found that the primary motivators for farmers’ market attendance among consumers are being able to purchase food (78%), interact with others (14%), buy ready-to-eat foods (5%), and purchase food products, arts, and handicrafts (3%). Elements of social embedding (social contact, vendor expertise, etc.) and spatial embedding (food quality, regional assistance, etc.) have been demonstrated to be the most significant consumer motivators in farmers’ markets [17]. Ref. [47] observed that most consumers reported positive changes in physical movement and food patterns after visiting farmers’ markets.

4.5. Farmers’ Market Purchase Obstacles

Research has identified several obstacles to purchasing produce at local farmers’ markets or bases, including higher prices and less convenient opening hours [3]. Ref. [48] observed that consumers are more inclined to participate in weekend markets with more convenient opening hours and greater food choices. Ref. [49] demonstrated that time, inconvenience, and price are reasons consumers choose not to shop directly from farmers’ markets. According to [50], each extra farmers’ market within a 5 km radius of a home raises the chance of consumer involvement by 3.67%; however, this effect differed between agricultural and non-agricultural locations. Ref. [51] demonstrated a considerable reduction in the likelihood of purchasing from a local farmers’ market if consumers perceive the produce to be more expensive.

4.6. Demographic Profiles

Ref. [52] reported that economic worth, affluence, and educational level influence consumer decisions when selecting sustainable goods. In their study, Ref. [53] observed that most participants (76%) were females and non-Hispanic whites (53.7%). Almost half (45%) had never experienced fresh fruits and vegetables before, and 41.7% did not consume them as recommended. Ref. [51] demonstrated that gaining pleasure from frequent food preparation, being female, and the presence of other adults in a family enhance the likelihood of consumers purchasing at farmers’ markets.

Conversely, if consumers believe that price is an essential feature of food, their likelihood of purchasing at farmers’ markets decreases dramatically. Ref. [54] discovered that, even in communities where white non-Hispanics are in the majority, the local farm consumer is more likely to be a white non-Hispanic female who is more affluent and knowledgeable than the average citizen. Distance, the number of adults in the home, marketplace-promoting qualities such as entertainment and activities, agricultural background, education, and age are all predictors of the number of visits an individual makes to a farmers’ market [55].

Ref. [56] stated that an organic consumer is typically highly educated, has a high income, is worried about environmental and health issues, and has a smaller-than-average family. Furthermore, males who reside in suburban homes are more engaged in the consumption of organic food than those living in urban centers. Ref. [30] found that consumers who purchased goods were more likely to be females, engaged, and have completed postgraduate education. Producers and non-purchasers had similar age ranges, incomes, and job statuses.

Ref. [26] identified several characteristics that appear to be highly linked to consumer purchasing behaviors and attitudes regarding shopping at a public market in Jefferson County, Alabama. These included income, schooling, age of head of household, household size, and produce price and quality. Ref. [57] observed that higher average home values, greater population density, younger generations, a significantly greater number of product distribution farms, greater vegetable and fruit output diversification, and closer proximity enhanced direct market sales.

Ref. [58] demonstrated a negative but not causative relationship between being married and engaging in farmer-to-consumer sales. Males were approximately 1.8 times more likely to engage in farmer-to-consumer sales than females. Regarding geography, individuals who reside in cities are less likely to engage in farmer-to-consumer sales. Education has been shown to be the most critical factor in determining the likelihood of purchasing at farmers’ markets. Furthermore, despite price not being a strong determinant, consumers with young children have been shown to be substantially more likely to shop at farmers’ markets than those without children. Ref. [59] examined the important benefits from small and marginal farmers, especially for consumers who are women, mobile vendors, and low-income consumers by increasing their options for selling and buying fresh produce.

5. Conceptual Model

In this study, consumer perception of service quality was found to be a critical factor in how consumers feel about the service they receive and become loyal to a brand. Consumers rate their benefits in terms of service quality parameters such as how convenient it is to reach the market and the quality, price, and variety of fruits and vegetables available. In addition, service conditions such as parking facilities and health and hygiene conditions also influence consumer satisfaction and repurchase decisions.

Several relationships assumed (Figure 1) in this study to exist between latent constructs are expressed by the following hypotheses:

Hypothesis 1 (H1).

The quality of convenience-related services significantly and positively influences customer satisfaction in the context of fruit and vegetable purchasing.

Hypothesis 2 (H2).

The quality of variety-related services significantly and positively influences customer satisfaction in the context of fruit and vegetable purchasing.

Hypothesis 3 (H3).

The quality of agricultural produce significantly and positively influences customer satisfaction in the context of fruit and vegetable purchasing.

Hypothesis 4 (H4).

The pricing of agricultural produce significantly and positively influences customer satisfaction in the context of fruit and vegetable purchasing.

Hypothesis 5 (H5).

Health and hygiene-related service conditions significantly and positively influence customer satisfaction in the context of fruit and vegetable purchasing.

Hypothesis 6 (H6).

The quality-of-service conditions significantly and positively influence customer satisfaction in the context of fruit and vegetable purchasing.

Hypothesis 7 (H7).

Customer satisfaction has a significant and positive influence on customer loyalty in the context of fruit and vegetable purchasing.

6. Data and Methodology

Primary data were collected by interacting with consumers at farmers’ markets. Prior to conducting the large-scale survey, a pilot survey was used to test the quality of the survey instruments, which were adapted from extensive literature reviews of similar studies in several developed countries. Using a random sampling method, 260 consumers at farmers’ markets in the Maharashtra state of India were surveyed. The questionnaire addressed service quality, customer satisfaction, and loyalty instruments. A five-point Likert scale measured the responses, with one indicating “strongly disagree,” and five indicating “strongly agree.” Following the removal of sampling errors and non-responses, 235 consumers’ responses were included in the analysis.

The latent variables of convenience, variety, quality, price, health and hygiene, and service conditions were used as independent constructs and are well proxied by the reflective indicators. Customer satisfaction was used as an exogenous variable, and customer loyalty was used as an endogenous variable. Three reflective indicators well represented each latent construct.

The reflective indicators used in the measurement model were tested for accuracy and viability by confirming convergent validity, internal consistency, reliability, and discriminant validity. Structural equation models estimating the impact of service quality on customer satisfaction and, therefore, the role of customer loyalty at farmers’ markets in India were studied to confirm the relationships between the latent variables. The partial least square (PLS) software SmartPLS 3 was used for this purpose.

To test and confirm the measurement model’s validity and reliability in Partial Least Squares Structural Equation Modeling (PLS-SEM), the constructs were tested for convergent validity, internal consistency reliability, and discriminant validity. The primary indicators and their specifications are as follows:

• Average Variance Extracted (AVE):

Convergent validity is examined through AVE while measuring the amount of variance that a latent construct captures from its indicators versus that due to measurement error. For an AVE value of 0.50 or above, the construct is said to explain more than half of the variance of its indicators, which is considered acceptable

• Composite Reliability (CR):

Composite reliability essentially tests the internal consistency of the construct indicators just like Cronbach’s alpha, but it considers the actual indicator loadings instead of assuming equal weights. A value of CR above 0.70 is an indication of satisfaction with the construct reliability.

• Fornell and Larcker Criterion:

To establish discriminant validity and ensure that each construct is distinct from the others in the model, the Fornell–Larcker criterion must be used. The square root of the AVE for each construct should be higher than its highest correlation to any other construct; thus, a construct shares more variance with its indicators than with other constructs.

7. Analysis and Findings

7.1. Respondent Profiles

Most respondents (

Table 1. Respondent profiles.

Variable	Category	Count	Percentage (%)
Sex	Male	155	66.0
	Female	80	34.0
Age Group	15–25	68	28.9
	26–35	105	44.7
	36–45	37	15.7
	46–60	16	6.8
	60+	9	3.8
Marital Status	Married	129	54.9
	Single	104	44.3
	Widowed	2	0.9
Occupation	Private Sector	141	60.0
	Public Sector	17	7.2
	Self-Employed	33	14.0
	Homemaker	28	11.9
	Other	16	6.8
Monthly Household Income	INR 10,000–20,000	28	11.9
	INR 21,000–30,000	46	19.6
	INR 31,000–40,000	47	20.0
	INR 40,000+	114	48.5

) were males aged 26–35 with a monthly household income of more than INR 40,000. The sample size suggested that most of the consumers at the farmers’ markets were married and worked in the private sector. However, homemakers were also represented in the sample. Based on the age range and occupations of the respondents, college students and working professionals seem to prefer to shop at farmers’ markets.

Based on the literature review, 24 indicators were selected to represent service quality, customer satisfaction, and loyalty. These indicators were categorized into eight overarching constructs, with each construct having three indicators.

Table 2. Reflective indicators.

Latent Variable Indicators	Code	Mean	SD
Convenience The farmers’ markets are at convenient locations. There is adequate parking space available. The operating times of farmers’ markets are convenient.	CON1 CON2 CON3	3.86 3.83 3.73	1.00 1.07 1.05
Variety I can choose a variety of fruits and vegetables. It is one of the best markets to buy everything in one place. Many stalls and crafts are present at the farmers’ market.	VA1 VA2 VA3	2.51 3.01 2.70	0.90 1.03 1.01
Quality The products available at the farmers’ market are fresh. The fruit and vegetables are of good quality. Customers are willing to buy more because of the quality.	QUA1 QUA2 QUA3	3.75 3.70 3.66	0.98 0.97 1.03
Price The prices of fruit and vegetables are very reasonable. The produce value is accurately reflected in the price. Cross-exchange of products is allowed with price modification.	PR1 PR2 PR3	3.90 3.80 3.21	0.79 0.75 0.90
Health and Hygiene At farmers’ markets, I get pesticide-free fruit and vegetables, There is little likelihood of foodborne disease because the stalls are well maintained. The market is clean and hygienic.	HH1 HH2 HH3	3.28 2.62 2.73	0.95 1.03 1.01
Service Conditions The farmers’ markets have adequate parking facilities. The farmers are user-friendly and provide good service. The locations of farmers’ markets are secure and in good condition.	SC1 SC2 SC3	3.51 3.52 3.63	1.05 1.10 1.06
Customer Satisfaction I am satisfied with the quality of products available at farmers’ markets. Farmers’ markets provide overall purchase satisfaction. Purchasing at farmers’ markets offers excellent value for the products consumed.	SAT1 SAT2 SAT3	3.84 3.68 3.48	1.03 0.94 0.98
Customer Loyalty I want to visit more frequently when time permits. I recommend that others shop at farmers’ markets. Farmers’ markets offer price discounts for seasonal products.	CUSL1 CUSL2 CUSL3	3.81 3.66 3.52	1.05 0.98 1.08

details how respondents rated their perceptions of service quality parameters, satisfaction with, and loyalty to the farmers’ markets in India.

On average, respondents (Table 2) rated convenience, price, satisfaction, and loyalty highly; however, there were high variations in the responses. Respondents rated price the highest, followed by convenience. The responses for service conditions had higher variations than those for other factors. Variety received the lowest ratings, and health and hygiene also received low ratings.

7.2. Validity of Measurements and the Structural Model

All outer loadings of the reflective constructs (

Table 3. Validity of latent constructs.

Latent Variable	Indicators	Convergent Validity			Internal Consistency Reliability		Discriminant Validity
		Loadings	Reliability	AVE	Composite Reliability	Alpha	HTMT Confidence Interval Does not Include 1
Convenience	CON1	0.838	0.702	0.765	0.897	0.846	Yes
	CON2	0.898	0.806
	CON3	0.887	0.787
Variety	VA1	0.710	0.504	0.676	0.861	0.778	Yes
	VA2	0.918	0.843
	VA3	0.855	0.731
Quality	QUA1	0.863	0.745	0.804	0.890	0.900
	QUA2	0.851	0.724
	QUA3	0.971	0.943
Price	PR1	0.750	0.563	0.621	0.830	0.706	Yes
	PR2	0.869	0.755
	PR3	0.738	0.545
Health and Hygiene	HH1	0.828	0.686	0.675	0.862	0.759	Yes
	HH2	0.860	0.740
	HH3	0.774	0.599
Service Conditions	SC1	0.896	0.803	0.811	0.828	0.884	Yes
	SC2	0.934	0.872
	SC3	0.870	0.757
Customer Satisfaction	SAT1	0.914	0.835	0.851	0.845	0.892	Yes
	SAT2	0.930	0.865
	SAT3	0.923	0.852
Customer Loyalty	CUSL1	0.946	0.895	0.837	0.839	0.890	Yes
	CUSL2	0.920	0.846
	CUSL3	0.878	0.771

) were well above the threshold value of 0.70. The highest loadings were for the quality factor QUA3 (0.971) and the customer loyalty factor CUSL1 (0.946). All reliability values were well above 0.70, indicating that the indicators used were reliable for use in the study. The composite reliability and Cronbach’s alpha values were also above 0.70, establishing the reflective indicators’ internal consistency and reliability. Convergent validity was also demonstrated, as the average extracted variance (AVE) values were well above the threshold of 0.50.

A reflective construct’s outer loading should be higher than its cross loadings with other constructs. Furthermore, the square root of the AVE of any construct should be higher than its highest correlation with any other construct [60], which is confirmed (

Table 4. Fornell-Larcker criterion.

	Convenience	Customer Loyalty	Customer Satisfaction	Health & Hygiene	Price	Quality	Service Conditions	Variety
Convenience	0.875
Customer Loyalty	0.559	0.915
Customer Satisfaction	0.695	0.525	0.922
Health and Hygiene	−0.134	−0.05	−0.149	0.822
Price	0.081	0.091	0.138	0.197	0.788
Quality	0.106	0.011	0.104	−0.031	−0.085	0.897
Service Conditions	0.348	0.293	0.383	−0.018	−0.027	0.702	0.900
Variety	0.485	0.275	0.424	−0.055	−0.026	0.119	0.183	0.822

) using the Fornell–Larcker criterion test. The heterotrait–monotrait ratio (HTMT), also known as the bias-corrected confidence interval, did not include 1 for any constructs, indicating discriminant validity.

7.3. Structural Equation Model Assessment

The convenience factor had a positive and significant effect (

Table 5. Path coefficient and T-statistics.

Hypothesized Path	Standardized Beta	T-Statistic	p-Value
Convenience → Customer Satisfaction	0.524	9.819	0.000
Customer Satisfaction → Customer Loyalty	0.525	8.769	0.000
Health and Hygiene → Customer Satisfaction	0.100	1.948	0.052
Price → Customer Satisfaction	0.111	2.029	0.043
Quality → Customer Satisfaction	0.168	2.343	0.019
Service Conditions → Customer Satisfaction	0.296	3.749	0.000
Variety → Customer Satisfaction	0.134	2.696	0.007

) on customer satisfaction: respondents were satisfied with the location, timing, and parking facilities of the farmers’ markets. Therefore, hypothesis H1 was proven. The variety factor positively and significantly affected customer satisfaction: respondents were satisfied with the various types of stalls and variety of vegetables and fruits and considered farmers’ markets to be the best place for all-in-one purchases. Therefore, hypothesis H2 was proven.

Price has a significant effect on customer satisfaction: respondents were satisfied with the price of the items, exchange prices, and the value for money. Therefore, hypothesis H3 was proven. The quality factor had a positive and significant effect on customer satisfaction: respondents were satisfied with the quality of the fruits and vegetables available at farmers’ markets. The health and hygiene and service conditions factors had positive and significant effects on customer satisfaction. Therefore, hypotheses H4, H5, and H6 were proven.

Of all the independent constructs, convenience (beta value = 0.524) and service conditions (beta value = 0.296) most strongly affected customer satisfaction. The proving of hypothesis H7 indicates that customer satisfaction positively and significantly affects customer loyalty toward farmers’ markets. Satisfied customers demonstrated repurchase intentions and recommended that others shop at the farmers’ markets.

The structural equation model (Figure 2) explains approximately 55% of the variation in customer satisfaction due to the factors of convenience, variety, price, quality, health and hygiene, and service conditions [61,62]. These factors contributed moderately to the study. However, as per [63], the model contributes substantially. Approximately 28% of the variation in customer loyalty was explained by customer satisfaction. Considering the R-squared value, the model has the scope to include more factors.

7.4. Model Fit

The structural model was assessed by model fit measures (

Table 6. Model fit summary.

Estimated Model
SRMR	0.071
d_ULS	1.246
d_ULS_1	0.824
d_ULS_2	1.917
d_G	0.819
d_G_1	0.715
d_G_2	1.127

), such as the standardized root mean square residual (SRMR), the value of which was under the threshold of 0.08 [64] and the squared Euclidean distance (d_ULS) and geodesic distance (d_G) values, the values of which were both within the limits specified by [64]. For all values, the confidence level was set to 95%.

8. Conclusions

In India, the novel concept of weekend farmers’ markets is growing in popularity, particularly in metropolitan and urban areas. This study confirms that customer satisfaction in farmers’ markets is driven significantly by the factors of convenience, service conditions, price, and product quality. Importantly, such findings convey implications not just for customers’ retention but also for the promotion of a sustainable food system in an emerging economy, such as India. Farmers’ markets ensure sustainability by lessening food miles (thus minimizing emissions), directly reaching the farmer (ensuring a fair price), and providing fresh, locally grown seasonal produce.

The reported significant influence of convenience and service infrastructure further articulates a need for sufficient urban planning and infrastructure to support sustainable consumption patterns. In creating starting points toward more sustainable food choices by engendering repeat patronage and consumer loyalty to farmers’ markets, this research foregrounds one behavioral road worth traveling. Policymakers as well as market organizers should conceive customer satisfaction not only as an economic variable but also as an instrument toward attaining farmers’ markets’ environmental, economic, and social sustainability goals. When sustainability concepts enter design and marketing arenas, farmers’ markets are enhanced as strategic interventions for regional-level food security, climate resilience, and rural livelihoods. It is also stated in the studies that strong marketing, effective communication, and managing how products are perceived support higher satisfaction and encourage sustainable living. All things considered, this research reveals that there is significant promise in local and sustainable food markets. However, achieving this promise involves making plans to remove barriers and fit with customer values and expectations.

8.1. Significance of the Study

This study provides insights into the factors that influence consumer behavior and attitudes toward farmers’ markets. By identifying these factors and quantifying their influence, the results of this study can help farmers’ markets and other stakeholders develop effective marketing strategies to attract and retain customers. Additionally, the study results can inform policymakers about how to support and promote farmers’ markets as healthy and sustainable food sources.

8.2. Managerial Implications

The findings of this study have managerial implications in that they provide valuable insights about how farmers’ markets can enhance customer satisfaction and loyalty. By prioritizing convenience, variety, quality, price, health, and hygiene, market managers can shape their offerings to satisfy customer preferences effectively. By focusing on excellent customer service, participating in local events, and optimizing the layout and design of their markets, farmers can create positive and welcoming shopping environments. Collaborative marketing efforts and farm-to-table experiences can further enhance the appeal and visibility of farmers’ markets. Implementing these findings can lead to greater market success, customer satisfaction, and loyalty and help to ensure the sustainability of farmers’ markets as valuable community resources. Ultimately, this research offers a roadmap for the success and longevity of farmers’ markets that will benefit consumers and producers alike.

8.3. Limitations

One limitation of this research is the small sample size. A larger sample size would have provided more accurate and reliable results. Additionally, the findings might have been affected by sample bias. The reason for this is that this study only included participants from specific regions and with certain demographic characteristics, which might not have been representative of the broader population. This research also might not account for the cultural or socioeconomic factors that could impact consumer behavior and attitudes toward farmers’ markets. Finally, this research might not have considered the influence of external factors, such as the availability and pricing of alternative food sources and the level of competition from other markets. These factors could significantly impact consumer behavior and attitudes toward farmers’ markets.