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Factors Affecting Consumer Buying Behavior of Organic Vegetable in Thailand 2012

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Presented at the Regional Symposium on Marketing and Finance of the Organic Supply Chain, 23 ~ 26 September 2012

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Factors Affecting Consumer Buying Behavior of Organic Vegetable in Thailand 2012

  1. 1. FACTORS AFFECTING BUYING BEHAVIOR OF ORGANIC VEGETABLE CONSUMERS IN THAILAND Regional Symposium on Marketing and Finance of the Organic Supply Chain, 23-26 September 2012, NACF Head office, Seoul, Republic of Korea K. Haisoke, A.Noomhorm and A.S. Sangha
  2. 2.  Back ground & Introduction  Literature review  Methodology 2  Result  Recommendations OUTLINE
  3. 3. BACKGROUND  Organic fruit and vegetables are becoming popular among consumers in Thailand. While leading supermarkets are catering to the demand for organic products from health conscious consumers, there are a number of challenges in the supply chain which affect the buying decision of consumer. 3
  4. 4. INTRODUCTION  Thailand has about 13,900 hectare of land under organic cultivation which equals to 0.07% of total agricultural area when compared to Asian average of 0.16% (Willer & Yussefi, 2005).  According to the 9 th Thailand national economic and social development plan the main focus is to enhance the production of organic products under “Thailand Kitchen of the World”.  The main idea behind the plan was to increase export revenue and adoption of strict food safety measures. 4
  5. 5. INTRODUCTION CONT...  Adoption of good agricultural practices to enhance quality standards for safe and healthy delivery of organic products to the local consumer.  Thai Organic Agriculture Certification (Act 2003) aims to develop self reliant integrated farming system for production management rich in diversity of flora, fauna, on farm nutrients and renewable resources in order to maintain ecological sustainability. 4.1
  6. 6. LITERATURE  The organic vegetable retail sector in Thailand is mainly driven by private companies, government sponsored projects and a few farmer associations.  Recently, food quality, consumer health and food safety have become important issues, which has resulted in government taking steps to take care of the environment.  General public awareness is important to make consumers believe in the food safety and certification of a product as organic (Panyakul,2003; Roitner,2006). 5
  7. 7. LITERATURE CONT…  The attractiveness of organic products and the consumers’ willingness to buy depends upon the marketing strategy used by retail outlets and its advertisement.  Highlighting the benefits of healthy organic food, its reasonable pricing and assurances of food quality are important.  It is also essential to distinguish between products grown from sustainable or conventional farming methods available in market in relation to price & safety for a health conscious consumer. 5.1
  8. 8. OBJECTIVE  The specific objective of this research study was to identify factors affecting buying behavior of organic vegetables consumer  Research studies by other authors:  for perishable products; consumers willingness to pay a premium price if the product is of high quality (freshness), safe and readily available Thompson (1998).  older people with high incomes were willing to pay more to purchase ‘safe’ vegetables (Posri et al., 2007).  Lockie et al. (2002), found that males in Bangkok were more likely to consume organic vegetables than females. 6
  9. 9. METHODOLOGY  Primary data collected from questionnaires distributed to customers at Villa Market at Paradise Park and TOPS supermarket.  WMS = 5f1+4f2+3f3+2f4+1f5 (Schiffman et.al., 1994) TRN  f1 = the number of respondents who selected 5 point scale  f2 = the number of respondents who selected 4 point scale  f3= the number of respondents who selected 3 point scale  f4= the number of respondents who selected 2 point scale  f5= the number of respondents who selected 1 point scale TRN = the number of total questionnaire respondents WMS = average weight of the influencing factor of the respondents buying decision 7
  10. 10. QUESTIONNAIRE PARTS Part 1 Profile of respondents Gender, age, career, income, education, status, etc Part 2 Kind of organic vegetable consumer buy Buying location / Selection of sellers Part 3 Influential factors Product, Price, place, culture, psychological, etc Part 4 Identification of problems Unstable price, quality, number of shops, promotion Part 5 Main deterrent factor for consumer who never buy organic / not buy anymore Pricing, quality, safety etc 7.1
  11. 11. RESULTS  Profile of respondents  Most of the respondents were single (72%). 8
  12. 12. RESPONDENTS Valid Response Frequency Percent Valid percent Cumulative Percent yes 54 56.0 56.0 56.0 never 45 30.0 30.0 86.0 buy in the past but now do not buy 21 14.0 14.0 100.0 Total 150 100.0 100.0 9 The results demonstrated that most respondents (56%) had purchased organic vegetables 30 % of respondents never bought organic
  13. 13. SELLERS AND TYPES OF VEGETABLES  Selection of organic vegetables  Selection of organic vegetable sellers 10 Kind of Organic Vegetables Quantity Percentage (%) 1.Organic Lettuce 51 34 2.Organic Cabbage 42 28 3.Organic Morning Glory 24 16 4.Organic Tomato 18 12 5.Organic Potato 15 10
  14. 14. FACTORS AFFECTING CONSUMER BEHAVIOR  Individual factors: The results found that age and income levels had a strong correlationship: organic buyers’ tended to be older than 30-39 years (46%).  Cultural factors: This included cooking and eating food at home, influence of festival seasons and social status 11
  15. 15. FACTORS AFFECTING CONSUMER BEHAVIOR  Social factors: This aspect included the influence of people around the consumer. Suggestions from family, friends and cousins, colleagues and agricultural officers were found to have some influence.  Psychological factors: Safe to consume, social respect, healthy to eat and environmentally friendly were the most influential variables. 12
  16. 16. FACTORS AFFECTING CONSUMER BEHAVIOR 13
  17. 17. CONCLUSION Factors of high influence product factors (3.41), price factors (3.68), distribution factors (3.79), cultural factors (3.42) and psychological factors (3.92) Factors of moderate influence Promotional factors (3.03) and social factors (3.10) Main problems associated with purchase Lack of confidence in quality, high price, unattractive shops and less variety of organic products in stores. Main deterrent factor in case of non-organic buyers Higher pricing followed by lack of promotion 14
  18. 18. RECOMMENDATIONS  The government policies and regulations ensuring safety through certification of organic products in the market will induce confidence among the consumers to buy organic products.  Awareness raising through public campaigns & advertisements can help to increase the knowledge about certification and labeling which will change psychological perception of the general consumer to buy organic products. 15
  19. 19.  The pricing policing should be regulated and monitored by the government agencies to avoid unstable pricing and higher pricing issues.  Variety of organic products in the market can be increased by providing incentives to the farmers to grow different vegetables through government subsidy and schemes to promote organic agriculture  Private sector backed by the government policies on selling organic products can help to open new stores at convenient locations for more consumer accessibility of organic products. 19
  20. 20. THANK YOU CHRIS.KIYADA@GMAIL.COM Feedback and Suggestion 20
  21. 21. AFRIS. AsianFoodRegulationInformationService. We have the largest database of Asian food regulations in the world and it’s FREE to use. We publish a range of communication services, list a very large number of food events and online educational webinars and continue to grow our Digital Library. We look forward to hearing from you soon! www.asianfoodreg.com adrienna@asianfoodreg.com

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