MRP on organic food

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MRP on organic food

  1. 1. 1 A MAJOR RESERCH PROJECT ON ―Consumer Behavior for Buying Organic Products in Indore‖ FOR THE PARTIAL FULFILLMENT OF POST GRADUATE MASTER OF BUSINESS ADMINISTRATION (DAVV, INDORE) SESSION 2011-2013 SUBMITTED TO MEDI-CAPS INSTITUTE OF TECHNOLOGY AND MANAGEMENT GUIDED BY: SUBMITTED BY: Prof. Prashant gupta Arpan soni MBA IV SEMESTER ROLL NO.- 11701717
  2. 2. 2 DECLARATION I hereby declare that the Major Research Project entitled, “CONSUMER BEHAVIOUR FOR BUYING ORGANIC PRODUCTS IN INDORE” submitted by me for the partial fulfillment of MBA to MEDI-CAPS INSTITUTE OF TECHNOLOGY AND MANAGEMENT, is my own original work and has not been submitted earlier to any other Institution for the fulfillment of the requirement for any course of study. I also declare that the work done by me and all the information collected is authentic to the best of my knowledge. ARPAN SONI MBA 4th sem
  3. 3. 3 MEDI-CAPS INSTITUTE OF TECHNOLOGY AND MANAGEMENT A.B.Road, Pigdamber, Rau Indore – 453331 Phone No.: 0731-4259500, 2856294 Fax: 0731-4259501 , E-mail: info@medicaps-institute.ac.in CERTIFICATE This is to certify that the project title “CONSUMER BEHAVIOUR FOR Buying ORGANIC PRODUCTS IN INDORE” is a piece of research work that has been done by ARPAN SONI under my guidance and supervision towards partial fulfillment of Post Graduation in Management. I recommend that the project to be submitted to Medi-Caps Institute of Technology and Management Place: (Signed) Date: Prof.Prashant gupta Designation Countersigned Place: (Signed) Date: Director
  4. 4. 4 ACKNOWLEDGEMENT Today, the day has come when I must express my gratitude towards all those concerned personalities who contributed in the completion of my report. I know, the effort would not have had been possible without their sincere efforts. Just a mere expression in words would not be sufficient, but I think that is the most significant way through which they can get to see an insight of thankful and delighted eyes. I would like to thank Dr. MAYANK SAXENA, Director, MEDI-CAPS INSTITUTE OF TECHNOLOGY AND MANAGEMENT and prof. Prashant gupta for assigning me the topic that is concerned with my long cherished dream and of my choice which made my work more enthusiastic. I am very much thankful to all the respondents and faculty member of MEDI-CAPS INSTITUTE OF TECHNOLOGY AND MANAGEMENT who directly or indirectly helped me a lot in completing the project Last but not the least; I would like to thank all those who have been showing me the correct path in the time of difficulties & confusions. (Arpan soni)
  5. 5. 5 Table of Content 1. Introduction Preliminaries (introduction of concept related to the study) Profile (Company profile and industry profile) Review of Literature Rationale Objectives & Scope 2. Methodology Data Collection Techniques used Population and Sample Sampling Techniques 3. Empirical Analysis Data Analysis Results & Findings Discussion on Findings 4. Recommendations 5. Limitations of the Study 6. Conclusion Appendix 1. Questionnaire 2. SPSS sheets for Data Analysis 3. Data Spread Sheets containing all variables. Bibliography / References (In APA Style)
  6. 6. 6 S.No. Title P.No. 1. INTRODUCTION 8 (b) Review of Literature 14 (c) Rational behind the study 18 2. RESEARCH METHODOLOGY 19 (a) Objective of study 19 (b) The Study 19 (c) The Design 19 (d) The Sample 19 (e) The Tools Used 20 3. EMPERICAL STUDY. 21 (a) Data analysis 22 (b) Results & Findings 22-45 4. IMPLICATIONS OF STUDY 46 (a) Recommendations 46 (b) Limitations of Study 48 5. SUMMARY, CONCLUSION 50 6. APPENDICES 52 Questionnier 53 Reference 56
  7. 7. 7 List of charts s.no. p.no. 1 General Information 22 2 Occupation 23 3 Monthly household income 24 4 about Organic food 25 5 reason 26 6 Time of awareness 27 7 first hear about O.F. 28 8 Interest 29 9 like to know 30 10 Thinking 31 11 Types of food 32 12 Important motivations 33 13 packaging 34 14 Price 35 15 Taste/quality 36 16 concern about health 38 17 high price 39 18 taste is not good 40 19 low availability 41 20 Not purchase low trust 42 21 poor appearance 43 22 overall opinion 44 23 recommend organic foods 45
  8. 8. 8 Chapter-1 INTRODUCTION
  9. 9. 9 INTRODUCTION The global demand for organic food products is growing at a very rapid rate. Ever since the environmentalists raised their concern regarding harmful effect of increasing use of chemicals in farming, the consumers are getting conscious and selective about edible products. This increasing awareness has caused shifts in consumers‘ tastes and preferences which have led to the domestic as well as global rise in demand for organic products. To supplement this demand, farmers have taken to organic farming for getting price premiums which resulted in around 3.5 million hectare land across the globe under organic farming .In India, the farmers have followed the path for organic food production, but the share of India in the world organic market is less than one percent. In order to boost trade in Indian agricultural products and capture significant share in global market, it is an imperative that India focuses on organic products which give it competitive edge in global market, namely organic cotton, spices, essential oils, medicinal and fresh fruits and vegetables. Organic farming in irrigated and intensive farming areas holds another kind of promise, a source of sustainable and value added commercial farming. Organic Products have become very popular in many parts of the world. As the demand for organic food increases so does the production, but currently the demand still exceeds the supply. Organic foods are those that are produced using environmentally sound methods that do not involve modern synthetic inputs such as pesticides and chemical fertilizers, do not contain genetically modified organisms, and are not processed using irradiation, industrial solvents, or chemical additives. Organic food is produced by farmers who focus on using reusable resources and to conserve the soil and water so to ensure environmental quality for future generations. Organic Food is very safe for human body, and contains much more vitamins, calcium, and iron than non-organic one. Moreover, organic food's taste and smell are richer than that one. For these reasons, the popularity of organic food is developing. But when making it, it costs much to protect from harmful insect. Organic products refer to food items that are produced, processed and packaged without using chemicals. Organic is increasingly becoming popular due to its perceived health benefits over conventional food. The industry is growing rapidly since the past five years and has caught the attention of farmers, manufacturers and, above
  10. 10. 10 all, consumers. Organic farming is better for the environment. Organic farming practices reduce pollution (air, water, soil), conserve water, reduce soil erosion, increase soil fertility, and use less energy. It is also better for the people who harvest our food. Organic Foods in the Future Organic foods which guarantee nutritional requirements in a person‘s diet are becoming increasingly popular in many parts of the world. With more and more people being concerned about what they take in to check their health, organic foods have increasingly become the number one option amongst many shoppers. It is now being found in major supermarkets and these trends tell us that this food is here to stay. Many have their doubts about it. However one must realize that when traditional foods are compared to organic foods, the facts favor organic foods more. First of all, organic foods are produced naturally without anything foreign included but traditional foods are constantly sprayed with pesticides, herbicides, hormones and many other chemicals. Imagine eating foodstuffs which have a certain percentage of foreign materials, many of which tend to be dangerously poisonous. Even with that aside, these things can have harmful effects on the environment and the human body as well. With this settled, any individual would clearly go in for organic foods which guarantees nutritional intake and no foreign materials With this agreed on, one may wonder how this will affect the future but it does. A person who takes in organically produced foods and knows of its benefits will feed his/her children on it. If this family grows on organic food, the trend will not stay there but will be transferred from family to family and generation to generation into the future. Long way to showing that organic foods will increasingly become popular in the future. Benefits of Organic Food Organic food is believed to be better than the non organic one since it is believed that the organic food plays a very important role in protecting an individual‘s health. Facts and researches have proved that more that 400 kinds of pesticides are used for the conventional farming. These pesticides which are poisonous and harmful and are mainly meant to kill the living organisms are often present on the food we eat.
  11. 11. 11 An Overview of Current Organic food market in India The organic farming is an old concept in India in terms of the extensive farming carried out in the country. The organic food market is worth USD 129.3 mn and shows huge potential for growth in future. The increasing export market coupled with government‘s support has driven the market. The market overview section compares the global and domestic organic food market. An analysis of the drivers explain the factors for growth of the industry including the huge export market, organized retail enhancing distribution network, government initiatives and increasing health consciousness among consumers. The key challenges identified encompass high prices of organic food, lack of integrated supply chain and difficulties for farmers, certification barriers. The competition section provides an overview of the competitive landscape including brief profiles of key domestic producers and promoters of organic food products. The key developments section provides an insight on sector related developments in last one year. Under current government policy, it takes approximately three years for a farm in conversion to be certified as organic, and costs are hefty for the small farmer. Organic Food Consumption in Indiais on the Rise Some people believe that organic food is only a ―concept‖ popular in the developed countries. They think that when it comes to organic food, India only exports organic food and very little is consumed. However, this is not true. Though 50% of the organic food production in India is targeted towards exports, there are many who look towards organic food for domestic consumption. The increase in organic food consumption in India is evident from the fact that many organic food stores are spurring up in India. Today (2006) every supermarket has an organic food store and every large city in India has numerous organic food stores and restaurants. This is a huge change considering that the first organic food store in Mumbai was started in 1997.However, the Indian organic food consumer needs education. There are many consumers who are unaware of the difference between natural and organic food. Many people purchase products labeled as Natural thinking that they are Organic. Further, consumers are not aware of the certification system. Since certification is not compulsory for domestic retail in India, many fake organic products are available in the market.
  12. 12. 12 Values and behaviour of organic consumers What do organic consumers think, that is, what is in their minds concerning organic products, is a determinant factor of consumer preference for organic food. In spite of taking cognizance, a change in attitude and thinking about organic food is prerequisite, in order to feel confident and positive about this new direction. An organic consumer has more positive beliefs concerning organic products. For example, this product tastes better, is more natural, is healthier-they believe that more than non-organic consumers. They believe that the people who are important to them, people who are close to them, also by organic products- they believe that it is a good thing that they buy organic products. The other aspect of what the organic consumer think, as compared to non-organic consumers, is their moral norms indicate they are doing a very good thing for the environment, the right thing for society. This is something that differences them from non- organic consumers. Non-organic purchases do not associate those beliefs to buy organic products. Consumers‘ values to make a choice for organic food can be seen in two terms-use values, such as utility from taste, health and freshness, i.e., private good attributes which can only be enjoyed by actually consuming the product. The other non-use values are public good values related to improved environment and animal welfare. The majority of all consumers- acknowledges and value organic goods for their non-use values (environmental or animal welfare attributes), as well as for their use values (health, taste or freshness attributes). The group of consumers having use values only is negligible. In the same way that most people agree exercise- is important; they also agree that a sustainable, clean environment is important. We can change non-organic consumers minds to make them believe that organic products are better in different ways-for the taste, health or the environment and demonstrate that people who are important to them, whether it‘s people who are related or not, such as celebrities, if they buy and consume organic product, then we might be able to move these consumers into the organic market.
  13. 13. 13 All of us are consumers. We consume things of daily use; we also consume and buy these products according to our needs, preferences and buying power. These can be consumable goods, durable goods, specialty goods or, industrial goods. What we buy, how we buy, where and when we buy, in how much quantity we buy depends on our perception, self concept, social and cultural background and our age and family cycle, our attitudes, beliefs values, motivation, personality, social class and many other factors that are both internal and external to us. While buying, we also consider whether to buy or not to buy and, from which source or seller to buy. In some societies there is a lot of affluence and, these societies can afford to buy in greater quantities and at shorter intervals. In poor societies, the consumer can barely meet his barest needs. The marketers therefore try to understand the needs of different consumers and having understood his different behaviors which require an in-depth study of their internal and external environment, they formulate their plans for marketing. HISTORICAL PROSPECTIVE  In 1939, Lord North borne coined the term organic farming in his book Look to the Land (1940), out of his conception of "the farm as organism.  This is different from the scientific use of the term "organic," to refer to a class of molecules that contain carbon, especially those involved in the chemistry of life.  It was with the advent of the ‗green revolution‘ that the natural way of growing crops started becoming unpopular and economically less feasible.  Organic food farming continued in small, mostly family-run, farms or kitchen gardens where people grew food for their own requirements.  The produce was sold in farmer‘s markets. Large scale organic farming was begun by farmers and scientists, as a mark of protest to the agriculture industrialization.  Now, organic food is widely available and has become very popular, with soaring sales.
  14. 14. 14 LITERATURE REVIEW Moneesha PachauriIn her study to develop a framework for the study consumer behaviour says it is helpful to begin by considering the evolution of the field of consumer research and the different paradigms of thought that have influenced the discipline. As described in this article, a set of dimensions can be identified in the literature, which can be used to characterize and differentiate the various perspectives on consumer research. It is argued that consumer behaviour itself emerged as a distinct field of study during the 1960s; and is characterized by two broad paradigms, the positivist and the non-positivist. The positivist paradigm encompasses the economic, behavioral, cognitive, motivational/trait/attitudinal, and situational perspectives; these perspectives are referred to as the traditional perspectives as they pre-date the development of the non-positivist paradigm. The positivist paradigm, which is still the dominant paradigm, emphasizes the supremacy of human reason and that there is a single, objective truth that can be discovered by science. This paradigm regards the world as a rational and ordered place with a clearly defined past, present, and future. The assumption of rationalism is therefore fundamental to the traditional perspective. Richard Shepherd, Maria Magnusson, Per-OlowSjödén in their study have discussed what influences consumers in their decisions to purchase or consume organic foods, mainly concerned with fresh organic foods. These show a discrepancy between attitudes and behavior with people being positive about organic foods but often not purchasing them. This discrepancy seems to be explained by the fact that consumers do not consider ―organically produced‖ to be an important purchase criterion, that organic foods are not perceived to surpass conventional foods regarding taste and shelf life (two qualities rated to be of great importance), and because of the perceived premium prices of organic foods. In two Swedish studies, health benefits were demonstrated to be more strongly related to attitudes and behavior toward organic foods than were perceived environmental benefits. A new European Union (EU) project will investigate the influences on both fresh and processed organic foods and investigate the role of moral, ethical, and affective influences on choice across eight EU countries.
  15. 15. 15 Emmanuel K. Yiridoea, Samuel Bonti-Ankomaha and Ralph C. Martina have analyzed the Growing interest in organic agriculture has prompted numerous studies that compare various aspects of organic and conventionally produced foods. This paper provides a comprehensive evaluation of empirical studies comparing organic products and conventionally grown alternatives. The emphasis is on key organic consumer demand and marketing issues, including: (1) the implications of an economic definition of organically grown food for consumer demand; (2) attributes that shoppers consider most when comparing organic with conventionally grown products; (3) level and characteristics of consumer knowledge and awareness about organic food; (4) assessment methods and characteristics of organic consumer attitudes and preferences; (5) size of price premium and characteristics of consumers‘ willingness-to-pay for organic products; and (6) profile of organic consumers. Overall, although there is some knowledge and awareness about organic products, consumers are not consistent in their interpretation of what is organic. Secondly, while consumers typically understand the broad issues about organic foods, many tend not to understand the complexities and niceties of organic farming practices and organic food quality attributes. Uncertainty regarding the true attributes of organic, and skepticism about organic labels, part of which stems from reported cases of (inadvertent) mislabeling, and product misrepresentation, and partly because of no uniform organic standards and certification procedures may hold some consumers back from purchasing organic. Thirdly, concern for human health and safety, which is a key factor that influences consumer preference for organic food, is consistent with observed deterioration in human health over time and, therefore, motivates consumers to buy organic food as insurance and/or investment in health. Fourthly, the proportion of consumers who are willing to pay a price premium for organic food decreases with premium level. On the other hand, premiums tend to increase with (combinations of) preferred attributes. In addition, demand tends to depend more on the price differential with respect to conventionally grown products, than on actual price. In contrast to sensitivity of demand to changes in price, income elasticity of demand for organic foods is generally small. Finally, it is important for policy analysts and researchers to note that organic fresh fruits and vegetables currently dominate the organic consumer's food basket. Furthermore, it is not clear whether frequent buyers consider particular organic products (e.g., organic meat) as normal goods, or if consumers consider such products as luxury goods.
  16. 16. 16 Magkos F, Arvaniti F, ZampelasA in their article talk aboutConsumer concern over the quality and safety of conventional food which has intensified in recent years, and primarily drives the increasing demand for organically grown food, which is perceived as healthier and safer. Relevant scientific evidence, however, is scarce, while anecdotal reports abound. Although there is an urgent need for information related to health benefits and/or hazards of food products of both origins, generalized conclusions remain tentative in the absence of adequate comparative data. Organic fruits and vegetables can be expected to contain fewer agrochemical residues than conventionally grown alternatives; yet, the significance of this difference is questionable, inasmuch as actual levels of contamination in both types of food are generally well below acceptable limits. Also, some leafy, root, and tuber organic vegetables appear to have lower nitrate content compared with conventional ones, but whether or not dietary nitrate indeed constitutes a threat to human health is a matter of debate. On the other hand, no differences can be identified for environmental contaminants (e.g. cadmium and other heavy metals), which are likely to be present in food from both origins. With respect to other food hazards, such as endogenous plant toxins, biological pesticides and pathogenic microorganisms, available evidence is extremely limited preventing generalized statements. Also, results for my co toxin contamination in cereal crops are variable and inconclusive; hence, no clear picture emerges. It is difficult, therefore, to weigh the risks, but what should be made clear is that 'organic' does not automatically equal 'safe.' Additional studies in this area of research are warranted. At our present state of knowledge, other factors rather than safety aspects seem to speak in favor of organic food. Arvola A, Vassallo M, Dean M, Lampila P, Saba A, Lähteenmäki L, Shepherd R. In their study have examined the usefulness of integrating measures of affective and moral attitudes into the Theory of Planned Behaviour (TPB)-model in predicting purchase intentions of organic foods. Moral attitude was operationalised as positive self-rewarding feelings of doing the right thing. Questionnaire data were gathered in three countries: Italy (N=202), Finland (N=270) and UK (N=200) in March 2004. Questions focused on intentions to purchase organic apples and organic ready-to-cook pizza instead of their conventional alternatives. Data were analyzed using Structural Equation Modeling by simultaneous multi- group analysis of the three countries.
  17. 17. 17 Along with attitudes, moral attitude and subjective norms explained considerable shares of variances in intentions. The relative influences of these variables varied between the countries, such that in the UK and Italy moral attitude rather than subjective norms had stronger explanatory power. In Finland it was other way around. Inclusion of moral attitude improved the model fit and predictive ability of the model, although only marginally in Finland. Thus the results partially support the usefulness of incorporating moral measures as well as affective items for attitude into the framework of TPB. Renee ShawHugner on her research discuss that Consumers appear willing to pay higher prices for organic foods based on their perceived health and nutrition benefits, and the global organic food market was estimated in 2007 to be worth £29 billion (£2 billion in the UK alone). Some previous reviews have concluded that organically produced food has a superior nutrient composition to conventional food, but there has to-date been no systematic review of the available published literature. Researchers from the London School of Hygiene & Tropical Medicine have now completed the most extensive systematic review of the available published literature on nutrient content of organic food ever conducted. The review focused on nutritional content and did not include a review of the content of contaminants or chemical residues in foods from different agricultural production regiment. David Gutierrez, staff writer atNaturalness says that Organic produce is nutritionally superior to so-called "conventional" produce, according to a comprehensive review conducted by researchers from the University of Aix-Marseille for the French food agency (AFSSA) and published in the journal Agronomy for Sustainable Development. "This critical literature review indicates that organic agriculture, as developed until now, has the potential to produce high-quality products with some relevant improvements in terms of anti-oxidant phyto micro nutrients, nitrate accumulation in vegetables and toxic residue levels," the researchers wrote. To be recognized as "organic," a food product must be produced without the use of genetic modification or chemical fertilizers or pesticides, and must promote sustainable cropping methods. In the United States, organically produced meat and dairy must be raised without the use of synthetic growth hormones or antibiotics. Hormones and antibiotics are banned in animal production across the board in the European Union.
  18. 18. 18 RATIONALE OF STUDY RATIONALE OF STUDY Indian economy is based on agriculture. The agricultural sector of India has occupied almost 43 percent of India's geographical area. Organic farming is one of them, and the trend of buying organic food and products is increasing day by day. In USA organic products is very common but in INDIA it is still in its nascent stage. The underlying principle of this research was to find the consumer behaviour regarding organic products in Indore and suggesting a marketing plan.
  19. 19. 19 CHAPTER 2 RESEARCH METHODOLOGY
  20. 20. 20 RESEARCH METHODOLOGY 1) OBJECTIVES OF STUDY 1) To know the consumer behaviour for buying organic products in Indore. 2) To find out the awareness level about organic food in Indore market. 3) To identify the future scenario on the basis of collected facts and services provided by the consumers in Indore 4) To gain knowledge about consumer attitude towards organic food product in Indore 2) SAMPLE UNIVERSE Indore (M.P.) 3) SAMPLE SIZE 100 respondents 4) RESEARCH TYPE Descriptive Research 5) SAMPLING TECHNIQUES Simple Random sampling – In random sampling, each item or element of the population has an equal chance of being chosen at each draw. A sample is random if the method for obtaining the sample meets the criterion of randomness (each element having an equal chance at each draw). The actual composition of the sample itself does not determine whether or not it was a random sample
  21. 21. 21 6) METHOD OF DATA COLLECTION Through self designed questionnaire 7) STATISTICAL ANALYSIS The data so collected was analyzed in SPSS software with the help of frequency distribution and bar graph.
  22. 22. 22 CHAPTER -3 Empirical Analysis
  23. 23. 23 FINDING AND ANALYSIS PART A: General Information Gender Frequency Percent Valid Percent Cumulative Percent Valid male 65 65.0 65.0 65.0 female 35 35.0 35.0 100.0 Total 100 100.0 100.0 Interpretation-The respondents for this survey65% people Male and 35 % Females.
  24. 24. 24 Occupation Frequency Percent Valid Percent Cumulative Percent Valid business 39 39.0 39.0 39.0 service 41 41.0 41.0 80.0 household 20 20.0 20.0 100.0 Total 100 100.0 100.0 Interpretation-In this survey majority of people are service class (41%) and 39% are business class people, remaining people are belong to household.
  25. 25. 25 Monthly household income Frequency Percent Valid Percent Cumulative Percent Valid up to rs 20000 38 38.0 38.0 38.0 rs 20001-50000 35 35.0 35.0 73.0 rs 50000 above 27 27.0 27.0 100.0 Total 100 100.0 100.0 Interpretation- 38% people are belonging to lower income group, 35 % belong to middle income and remaining 27% belong to high society.
  26. 26. 26 PART B: Information about Organic food Have you heard about organic food Frequency Percent Valid Percent Cumulative Percent Valid yes 40 40.0 40.0 40.0 no 60 60.0 60.0 100.0 Total 100 100.0 100.0 Interpretation-Majority of people (60 %) in this survey hasn‘t heard about organic food and remaining people (40%) have heard about organic food.
  27. 27. 27 If no, select the appropriate reason below Frequency Percent Valid Percent Cumulative Percent Valid Know about it 40 40.0 40.0 40.0 I never heard about it 33 33.0 33.0 73.0 I know the name but not the details 8 8.0 8.0 81.0 nobody told me 8 8.0 8.0 89.0 no interest in these things 11 11.0 11.0 100.0 Total 100 100.0 100.0 Interpretation- Out of 60% people who have not heard about organic food the reason given says that 33 % people have never heard about organic food, 8 % people know the name but don‘t know any details.11 % don‘t show any interest in these things.
  28. 28. 28 Interpretation-The majority shows that 60 % people are not aware about organic food; some people (19%) know organic food from last 6 months. Very few people (12%) know organic foods from last 1 year.9 % people aware about organic food from last 3 years. How long have you been aware about organic foods Frequency Percent Valid Percent Cumulative Percent Valid 1 to 3 years 9 9.0 9.0 9.0 6 to 12 months 12 12.0 12.0 21.0 0 to 6 months 19 19.0 19.0 40.0 never 60 60.0 60.0 100.0 Total 100 100.0 100.0
  29. 29. 29 How did you first hear about organic food? Frequency Percent Valid Percent Cumulative Percent Valid Magazine 22 22.0 22.0 22.0 Newspaper 8 8.0 8.0 30.0 Internet 4 4.0 4.0 34.0 Friends 4 4.0 4.0 38.0 through this questionnaire 62 62.0 62.0 100.0 Total 100 100.0 100.0 Interpretation- In this question 62 % people mentioned that they have heard about organic food through this questionnaire only, 22 %people know about organic food through
  30. 30. 30 magazines, 8 % people know from newspaper, very less number of people 4% people knows from Internet and friends. If you get a chance to know about organic food, would you be interested in exploring it Frequency Percent Valid Percent Cumulative Percent Valid yes 88 88.0 88.0 88.0 no 12 12.0 12.0 100.0 Total 100 100.0 100.0 Interpretation-Yes 88 % people are keen to know about organic food they show interest in exploring it and 12 % are notshowing any interest.
  31. 31. 31 If yes , how would you like to know about it Frequency Percent Valid Percent Cumulative Percent Valid No answer 8 8.0 8.0 8.0 TV ads 10 10.0 10.0 18.0 radio ads 2 2.0 2.0 20.0 exhibition 54 54.0 54.0 74.0 social networking 25 25.0 25.0 99.0 any other 1 1.0 1.0 100.0 Total 100 100.0 100.0 Interpretation- 54% people feel exhibition can be the best source of knowledge about organic food, 25 % use social networking sites and through this they know about organic food. 10% people show interest in TV ads.
  32. 32. 32 What do you perceive/think about organic food? Interpretation – This was a multiple tick question and out of the 204 responses received maximum people (78) signify organic food with pesticides /chemical free 55 people find organic food more nutritious than conventional food .apart from benefit of organic food 46 people find it more costly, and 22 people buy organic food because it is adulteration free. 78 22 3 55 46 0 What do you perceive/think about organic food
  33. 33. 33 What type of organic food would you like to purchase Interpretation – This was a multiple tick question and out of the 170 responses received 78 people would like to buyprocessed organic food, we also see from the result of this survey that 77 people preferred to buy vegetables, while only a minimal amount 13 people would like to purchases produced food. We observe from this study that a meager number of 2 persons would want to buy non- veg. organic products. 13 78 2 77 0 produce processed foods meat,eggs vegetables any other what type of organic food would you like to purchase
  34. 34. 34 In your opinion, what are the important motivations that will persuade you to buy organic foods instead of non – organic foods( benefits) Frequency Percent Valid Percent Cumulative Percent Valid most important 87 87.0 87.0 87.0 Important 13 13.0 13.0 100.0 Total 100 100.0 100.0 Interpretation – 87 % say that the benefits of organic food is the most important reason why they would prefer to buy it 13 % people say that benefits of organic food will play an important role in persuading them to buy organic food
  35. 35. 35 In your opinion, what are the important motivations that will persuade you to buy organic foods instead of non – organic foods (packaging) Frequency Percent Valid Percent Cumulative Percent Valid most important 4 4.0 4.0 4.0 important 17 17.0 17.0 21.0 neutral 51 51.0 51.0 72.0 less important 24 24.0 24.0 96.0 least important 4 4.0 4.0 100.0 Total 100 100.0 100.0 Interpretation – 51 %people are not affected by packaging and it doesn‘t play a significant role to persuade them to buy organic food.24 % people give less importance to packaging .only 17 % people give importance to packaging.
  36. 36. 36 In your opinion, what are the important motivations that will persuade you to buy organic foods instead of non – organic foods (price) Frequency Percent Valid Percent Cumulative Percent Valid most important 13 13.0 13.0 13.0 important 26 26.0 26.0 39.0 neutral 17 17.0 17.0 56.0 less important 43 43.0 43.0 99.0 least important 1 1.0 1.0 100.0 Total 100 100.0 100.0 Interpretation – 43% people give less importance to price while choosing organic food, 26% give importance to price.13 % people show price is most important.
  37. 37. 37 In your opinion, what are the important motivations that will persuade you to buy organic foods instead of non – organic foods( taste/quality) Frequency Percent Valid Percent Cumulative Percent Valid most important 88 88.0 88.0 88.0 important 4 4.0 4.0 92.0 neutral 2 2.0 2.0 94.0 less important 5 5.0 5.0 99.0 least important 1 1.0 1.0 100.0 Total 100 100.0 100.0 Interpretation –In this study people find organic food is tasty 88 % people tell it is most important motivation while buy organic food.
  38. 38. 38 In your opinion, what are the important motivations that will persuade you to buy organic foods instead of non – organic foods (friends) Frequency Percent Valid Percent Cumulative Percent Valid important 3 3.0 3.0 3.0 neutral 33 33.0 33.0 36.0 less important 34 34.0 34.0 70.0 least important 30 30.0 30.0 100.0 Total 100 100.0 100.0 Interpretation –Buying organic food is individual decision 34 % people give less important preference ,33 % people are neutral decision ,but 30 %people give less important while buying organic food .
  39. 39. 39 In your opinion, what are the important motivations that will persuade you to buy organic foods instead of non – organic foods (concern about health) Frequency Percent Valid Percent Cumulative Percent Valid most important 95 95.0 95.0 95.0 important 3 3.0 3.0 98.0 neutral 1 1.0 1.0 99.0 less important 1 1.0 1.0 100.0 Total 100 100.0 100.0 Interpretation –Health concern is the most important factor for buying organic food 95 %people tells it is most important motivation.
  40. 40. 40 Primary reasons you do not purchase organic foods(high price) Frequency Percent Valid Percent Cumulative Percent Valid most imp 35 35.0 35.0 35.0 Important 30 30.0 30.0 65.0 Neutral 20 20.0 20.0 85.0 less important 12 12.0 12.0 97.0 least important 3 3.0 3.0 100.0 Total 100 100.0 100.0 Interpretation –Organic food is costly as compared to conventional food and 35 % people tell this as the most important reason, 30 %people also tell yes it is important reason for not purchasing organic food.
  41. 41. 41 Primary reasons you do not purchase organic foods(taste is not good) Frequency Percent Valid Percent Cumulative Percent Valid most imp 5 5.0 5.0 5.0 important 16 16.0 16.0 21.0 neutral 34 34.0 34.0 55.0 less important 38 38.0 38.0 93.0 least important 7 7.0 7.0 100.0 Total 100 100.0 100.0 Interpretation –The taste is not good reason is not affected people while they purchase organic food 38 % people give less important, 34 % people are neutral.
  42. 42. 42 Primary reasons you do not purchase organic foods (low availability) Frequency Percent Valid Percent Cumulative Percent Valid most imp 90 90.0 90.0 90.0 important 5 5.0 5.0 95.0 neutral 5 5.0 5.0 100.0 Total 100 100.0 100.0 Interpretation –People want to buy organic food but low availability affects its decision 90%people tell it is important reason.
  43. 43. 43 Primary reasons you do not purchase organic foods(low trust) Frequency Percent Valid Percent Cumulative Percent Valid most imp 27 27.0 27.0 27.0 important 22 22.0 22.0 49.0 neutral 26 26.0 26.0 75.0 less important 22 22.0 22.0 97.0 least important 3 3.0 3.0 100.0 Total 100 100.0 100.0 Interpretation –People want to buy certified organic food that‘s why it is most important reason about low trust of people (27%) for organic food, 26% people are neutral while they don‘t purchase organic food.
  44. 44. 44 Primary reasons you do not purchase organic foods(poor appearance) Frequency Percent Valid Percent Cumulative Percent Valid most imp 15 15.0 15.0 15.0 important 29 29.0 29.0 44.0 neutral 36 36.0 36.0 80.0 less important 18 18.0 18.0 98.0 least important 2 2.0 2.0 100.0 Total 100 100.0 100.0 Interpretation – The reason behind them they don‘t purchase organic food due to poor appearance 36% people give neutral and 29 % people it is important factor.
  45. 45. 45 How would you describe your overall opinion of organic food brands Frequency Percent Valid Percent Cumulative Percent Valid very favorable 30 30.0 30.0 30.0 somewhat favorable 53 53.0 53.0 83.0 neutral 11 11.0 11.0 94.0 somewhat unfavorable 4 4.0 4.0 98.0 very unfavorable 2 2.0 2.0 100.0 Total 100 100.0 100.0 Interpretation -53 %people preferred branded organic food it is somewhat favorable, 30 %people give very favorable opinion.
  46. 46. 46 Would you recommend organic foods to a friend or associate Frequency Percent Valid Percent Cumulative Percent Valid definitely 29 29.0 29.0 29.0 probably 60 60.0 60.0 89.0 not sure 6 6.0 6.0 95.0 probably not 5 5.0 5.0 100.0 Total 100 100.0 100.0 Interpretation –60%people are ready to recommend organic food to friends or associate due to its health benefit.29 % people definitely recommend organic food.
  47. 47. 47 Chapter-4 RECOMMENDATION
  48. 48. 48 RECOMMENDATION In the city of Indore there is low awareness among people but they are keen to know about organic food. We can create awareness among people through exhibitions and promotions of organic products. Organic food is creating brand loyalty among their customers if the companies will provide the products in somewhat same price range of inorganic products for customer benefit. The products are certified with USDA (United States Department of Agriculture) as it bonds a trust of product with consumers so it is necessary to highlight this feature. Company should introduce number of stores to provide facility to customer; and provide services like home delivery for the convenience for customers. A quality guarantee of organic food products directly influences consumption intensity, absorption power of the market, packaging material design, advertising messages, choice of the distribution channel, and distinguishing organic from conventional products according to their market characteristics makes the fundamental factor of the product differentiation and diversification with the aim of producing such organic food that would certainly find its way to the consumer.
  49. 49. 49 Chapter-5 LIMITATIONS OF STUDY
  50. 50. 50 LIMITATION OF STUDY Indore city has an approx population of 20-25 lakhs. Due to constraints of time a small sample size of 100 respondents has been taken to make it representative of the entire population. Though care has been taken in selecting the right sample size Time was a major constraint in this study.
  51. 51. 51 Chapter-5 CONCLUSION
  52. 52. 52 CONCLUSION 1) Most of the people are not aware about organic food in Indore (City) which was my research area. Maximum number (62%) people have first heard about organic food through this questionnaire. 2) This study suggests that major part of the sample size (88%) taken is interested in exploring the phenomenon i.e. organic food. 3) The method of making organic food popular according to this survey is through exhibitions. 4) The main characteristic of organic food is that it is pesticides/chemical free and it is the main attraction which draws attention of people towards it. Although it is costly then inorganic product but then too due to health concern people are interested in consuming organic products. 5) Among the wide range of products most of the people preferred to buy daily need items such as processed food (cereal) and vegetables as they think they are more nutritious and a part of daily routine diet. 6) When the motivational reasons for persuading people to buy organic food was surveyed the results received in favour of organic food are : (a) It is beneficial. (b)It has better taste and quality. (c) The most important reason is health consciousness.
  53. 53. 53 7) The primary reason why the sale of organic food is less because of low availability and low trust. Low trust as an option has been mentioned here because very few companies in organized retail sector are in organic food till date so people have low interest in new companies which are concern with organic products. 8) The final conclusion drawn from the research is it is somewhat favorable among consumer of Indore and they probably associate with organic food and would like to recommend it to their friends and relatives too.
  54. 54. 54 CHAPTER-6 APPENDIX
  55. 55. 55 APPENDIX QUESTIONNAIRE (I am Management student of MEDI-CAPS INSTITUTE OF TECHNOLOGY AND MANAGEMENT. As part of course I am undertaking this project study, I would request you to kindly answer a few question. This questionnaire gives you to find out the consumer behavior of buying organic food in INDORE. Organic foods are those foods that are grown, processed and packaged without using chemicals. Organic cultivation uses organic seeds, organic fertilizers, compost, organic root stimulator, and organic pest control methods.) Monthly Household Income: Up to Rs.20,000 Rs.20,001-Rs.50,000 Rs.50,000 above 1. Have you heard about organic food? (1) Yes (2) No 2. If no, select the appropriate reason below? (1) I never heard about it (2) I know the name but not the details (3) Nobody told me (4) No interest in these things 3. How long have you been aware about organic foods? (1)More than 3 years (2) 1 to 3 years (3) 6 to 12 Months (4) 0 to 6 Months (5) Never Name: Age: Gender: Occupation: (1) Business (2) Service (3) Household
  56. 56. 56 4. How did you first hear about organic foods? (1) Advertisement (2) Magazine (3) Newspaper (4) Internet (5) Friends (6) Through this Questionnaire 5. If you get a chance to know about organic food, would you be interested in exploring it? (1) Yes (2) No 6. If yes, how would you like to know about it? (1) TV Ads (2) Radio ads (3) Exhibition (4) Social networking sites (5) Any other please specify 7. What do you perceive/think about organic food? (You can tick more than one) (1)Pesticides/ chemical free (2) No Adulteration (3) Eco-friendly (4)More nutritious (5) Costly (6) Any other please specify 8. What types of organic food would you like to purchase? (You can tick more than one) (1)Produce (2) Processed foods (cereal, etc) (3)Meat, eggs, poultry, seafood (4) Vegetables (5) Any other please specify
  57. 57. 57 9. In your opinion, what are the most important motivations that will persuade you to buy organic foods instead of non-organic foods? Most Imp Imp Neutral Less Imp Least Imp Benefits Packaging Price Taste/quality Friends Concern about health 10. Primary reasons you do not purchase organic foods Most Imp Imp Neutral Less Imp Least Imp High price Taste is not good Low availability Low trust Poor appearance 11. How would you describe your overall opinion of organic food brands? (1) Very Favorable (2) Somewhat Favorable (3) Neutral (4) Somewhat Unfavorable (5) Very Unfavorable 12. Would you recommend organic foods to a friend or associate? (1) Definitely (2) Probably (3) Not sure (4) Probably not (5) Definitely not
  58. 58. 58 REFERENCES 1) By PachauriMoneeshaon his reviewhttp://www.ingentaconnect.com/content/westburn/tmr/2001/00000002/000000 03/art00006 2) By; Magkos F, Arvaniti F, Zampelas A Crit Rev Food SciNutr. 2006; 46(1):23-56. http://spot.colorado.edu/~carpenh/Magkos.pdf 3) By; Hugner Renee Shaw on her research science daily July 30 2009 http://www.sciencedaily.com/releases/2009/07/090729103728.htm 4) By: Gutierrez David, staff Saturday jan2,2010http://www.naturalnews.com/027854_organic_food_nutrition.html 5) http://www.organicfqhresearch.org/news/pdf/2-fqh-foodsbetter-amp.pdf 6) http://www.ccs.dcu.ie/consumingidentity/publications/documents/Hughner%20et%20 al%202007.pdf 7) http://resources.metapress.com/pdf- preview.axd?code=rh6370g636405vq5&size=largest 8) http://www.jstor.org/pss/3150229 9) http://www.emeraldinsight.com/journals.htm?articleid=870027&show=abstractd 10) www.organicsansar.com 11) Article on http://nutrihealth.in/food/organic-food-%E2%80%93is-good-does-good- and-tastes-good/ by KatariaAshish on 5 feb,2010 12) By ShepherdRichard, Maria Magnusson, Per-OlowSjödén AMBIO: A Journal of the Human Environment 34(4):352-359. 2005 http://www.bioone.org/doi/abs/10.1579/0044-7447-34.4.352 13) Ekelund, L. 1989.Vegetable consumption and consumer attitudes towards organically grown vegetables—the case of Sweden. ActaHortic 259:163–172.
  59. 59. 59 14) http://www.mayoclinic.com/health/organic-food/NU00255 15) Roddy, G., C. A. Cowan, and G. Hutchinson. 1996. Consumer attitudes and behaviour to organic foods in Ireland. J. Int. Consumer Market 9:41–63. 16) By CourtiolMark http://www.natural-health-journals.com/887/are-organic-foods- more-nutritious 17) By Emmanuel K. Yiridoea1 c1, Samuel Bonti-Ankomaha2 and Ralph C. Martina3 http://journals.cambridge.org/action/displayAbstract;jsessionid=00C645421CCB38A DA2C553786AC8B151.tomcat1?fromPage=online&aid=692716 18) Arvola A, Vassallo M, Dean M, Lampila P, Saba A, Lähteenmäki L, Shepherd R.http://www.ncbi.nlm.nih.gov/pubmed/18036702 19) Kotler Philip marketing management 13th edition ― analyzing consumer behaviour market ― 20) OlesenKortbech- (2002) on her article http://sampleresearchproposals.blogspot.com/2010/01/consumer-behavior-and- demand-of-organic.html 21) http://www.springerlink.com/content/rh6370g636405vq5/ 22) http://www.articlesbase.com/nutrition-articles/consumer-behavior-for-organic-food- 487184.html 23) By Kage Ben http://www.naturalnews.com/020786_organic_foods_chemical_additives.html 24) http://www.emeraldinsight.com/journals.htm?articleid=870027&show=abstract 25) FAIDON MAGKOS, FOTINI ARVANITI, and ANTONIS ZAMPELAS http://spot.colorado.edu/~carpenh/Magkos.pdf

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