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Consumer attitude towards organic food in trichy south india
1.
International Journal of
Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 5, Issue 5, September – October (2014), pp. 01-10 © IAEME 1 CONSUMER ATTITUDE TOWARDS ORGANIC FOOD IN TRICHY – SOUTH INDIA Mohamed Bilal Basha Senior Lecturer, Business School, Al Khawarizmi International University College, Abu Dhabi K. Ramesh Assistant Professor, Rajalakshmi College of Education, Chennai, India ABSTRACT The study was based on the data collected from the selected supermarkets which are selling organic food products in Trichy, Tamil Nadu, India. Around 300 consumers participated in the study and a questionnaire was administered with each of them separately. The study examined consumer’s attitude toward purchasing organic food products based on three variables namely health consciousness, environmental factors and safety considerations. A survey questionnaire was developed to collect quantitative data from the consumers of the study. The findings of the study indicate that health concern is the first motivation of organic food consumers chosen for the study. The study also examined the impact of demographic variables on the buying intention of consumers of organic food products. Keywords: Organic Food, Attitude, Motivation, Health, Environment, Safety. 1. INTRODUCTION Organic foods industry is one of the fastest growing sectors of the food industry in the last decade. Organic food includes food products obtained from a farming system which avoids using synthetic fertilizers, pesticides, hormones, genetically modified organisms and INTERNATIONAL JOURNAL OF MARKETING AND HUMAN RESOURCE MANAGEMENT (IJMHRM) ISSN 0976 – 6421 (Print) ISSN 0976 – 643X (Online) Volume 5, Issue 5, September – October (2014), pp. 01-10 © IAEME: http://www.iaeme.com/IJMHRM.asp Journal Impact Factor (2014): 4.7830 (Calculated by GISI) www.jifactor.com IJMHRM © I A E M E
2.
International Journal of
Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 5, Issue 5, September – October (2014), pp. 01-10 © IAEME 2 irradiation. The purpose of organic farming is to enhance the natural biological cycles and to meet minimum animal welfare standards (Lockie et al., 2004). Generally, farming system used for organic food production makes use of the benefits of modern scientific methods and state of the art technologies to offer a more sustainable solution to food production (Institute of Food Science and Technology, 2005).In order to qualify a product into organic food, certain guidelines and restrictions are developed by various private and government organizations from different countries. For example, genetically-modified organisms and antibiotics are strictly prohibited in organic standards for animal husbandry and only 30 additives are permitted in certain conditions (Soil Association, 2000). The intention of consumers to purchase organic foods has been an interesting study area and number of researchers has conducted several studies in understanding what motivates people to purchase organic food products. 2. REVIEW OF LITERATURE This literature review aims to provide a detailed account of literatures on the consumer attitude towards organic food. In general the consumers believe that organic food products are expensive. The survey by MORI(2003) has found that there is a strong opinion among the public that sustainable products like organic food are often perceived as expensive products. A number of demographic variables are believed to influence the purchase decisions of consumers using organic products. A study by Lockieet al. (2002) identified a strong correlation between increasing consumption of organic food and levels of formal education. A number of studies have consistently established the fact that gender has been a significant predictor of the purchase behavior of organic food products. Female consumers are more likely to purchase organic food products OFP compared to males (Groff et al., 1993, Buzby & Skees 1994, Underhill & Figueroa 1996, Govindasamy & Italia 1999, Radman 2005). The income level of the consumers is more likely to affect the purchase decisions of organic food products. Cranfield and Magnusson (2003) noted that consumers with higher income levels are more likely to spend more on organic food products. The reason could be that organic food products are perceived as costlier than conventional products in general. A number of similar studies have shown that regular consumers of organic food product tend to be educated, affluent and of higher social class (Padel& Foster, 2005; Stobelaaret al., 2006). Similarly, studies by McIntosh et al. (1994) and Torjusenet al.(2001) have analyzed the awareness of consumers about food hazards. The result of the study indicates that female consumers and individuals with more education and income possess better awareness of food hazards and knowledge of food hazards. A large number of studies are available in the literature which identified reasons for purchasing of organic food products. In a study by Chinnici et al. (2002) and Harper and Makatouni (2002) it was found that one of the most important reasons for purchasing organic products has been the perceived health benefits of organic food products when compared to conventional food products. In another study by Cranfield and Magnusson (2003), it was reported that because of health-related reasons, older individuals were willing to deviate and switch to organic food products. Cranfield and Magnusson (2003) observed that those younger consumers are more willing to pay over 6% in their food products to ensure food products are pesticide free. Govindasamy and Italia (1999) have made an interesting observation that older consumers are highly hesitant and are more conservative in trying out
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International Journal of
Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 5, Issue 5, September – October (2014), pp. 01-10 © IAEME 3 new food products when compared with younger people who are open to new products and ideas. A study by Vermeir and Verbeke (2004), have proved that consumers weigh up health benefits of organic food products on a higher scale than its environmental benefits or benefit to the community in their decision to purchase organic food products.According to Grunert and Juhl (1995), if a customer concerns for the environment then he/she knows that the “production, distribution, disposal and use of products result in external costs, and sees such costs negatively and tries to reduce them as much as possible through his/her personal actions”. Werner and Alvensleben (2011) stated that there is a relationship between the quantity of consumers concern for the environment and their motivation to buy products that are organic. Huamg (1996) noted that there is a strong relation between the growth in organic product consumption and the growth in environmental concern in the public. 3. CONCEPTUAL FRAMEWORK OF THE STUDY According to the Theory of reasoned action(Ajzen, 1980), intention is considered as the best predictor of actual behavior because it is the desired behavior of the consumer. In addition, attitude towards behavior is regarded as a solid influence on intention. Attitude contains all of the consumer’s belief about the behavior and the following consequences of the behavior. Attitude determines final decisions in the consumers buying behavior. Hence based on the importance of attitude in consumer buying decisions, a conceptual framework is evolved. The proposed framework believes that the consumer attitude towards purchasing organic food products is strongly influenced by three variables namely Health Consciousness, Environmental Factors and Safety Considerations. The proposed model for purchase intentions of organic food products is shown in Figure 1. 3.1. Health Consciousness A Health consciousness consumer intends to purchase organic food products based on the perceived belief that organic food products have better health benefits. 3.2. Environmental Factors An Environmental factors concerned consumer intends to purchase organic food products based on the perceived belief that organic food products can offer benefits to the environment in many ways. 3.3. Safety Considerations A consumer who considers safety first, intends to purchase organic food products based on the perceived belief that organic food products can improve the safety factors in food consumption.
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International Journal of
Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 5, Issue 5, September – October (2014), pp. 01-10 © IAEME 4 Figure 1: Proposed model for purchase intentions of organic food products 4. METHODOLOGY Organic products are not in widespread consumption in Tamil Nadu, and its market share is mostly limited to urban and semi-urban regions. For the purpose of the study around 300 consumers of organic products from 5 organic outlets were randomly selected from Trichy, Tamil Nadu. Their attitude towards purchasing organic food products based on the three variables namely health consciousness, environmental factors and safety considerations was studied. As a result of extensive review of related literature, a number of items were identified that are believed to affect the consumer’s attitude towards purchasing organic food products. Each variable was measured using five items. A survey questionnaire was developed as a part of the study to collect quantitative data about the consumers purchasing intention based on the variables identified. The proposed questionnaire included three variables to measure the attitude of consumers namely Health Consciousness, Environmental Factors and Safety Considerations. The study used even numbered Liker scale with six options comprised of Strongly Disagree = 1, Disagree = 2, Slightly Disagree = 3, Slightly Agree = 4, Agree = 5, and Strongly Agree = 6. Even- numbered liker scales require the user to indicate at least a slight preference even if they feel more or less neutral about a question. Thus even numbered scale measurably intensifies the respondent's cognitive involvement in the survey and consequently leads to more valid results. 6. RESULTS AND DISCUSSION The data collected from the consumers of organic food products was analyzed using statistical package software SPSS 21.0. The results are presented here in detail. 6.1. DEMOGRAPHIC DETAILS OF THE CONSUMERS The demographic features of consumers were analyzed and the results are presented in Table-1. The results indicate that about 45 % (N=135) of the consumers are males while Environmental Factors Safety Considerations Health Consciousness Attitude Purchase Intention
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International Journal of
Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 5, Issue 5, September – October (2014), pp. 01-10 © IAEME 5 the rest of 55% (N=156) of the consumers of are females. The results also show that about 57% (N=171) of the consumers are married while 43 % (N=129) of the consumers are unmarried. The analysis of the age of the consumers reveal that predominantly young people prefers to purchase organic food products. Around 40.3% (N=121) of consumers belong to below 25 years of age. Similarly 33 % (N=99) of consumers belong to 25 - 35 years of age. Only 12.7% (N=38) of the consumers are from above 50 years of age group. The educational qualification of the consumers indicate that 62.0% (N=186) of the consumers are graduates while 24.3% (N=73) of the consumers are postgraduate degree holders. Only 13.7% (N=41) of the consumers are undergraduates. The reason for low undergraduates could be that the samples were drawn from urban locality where most of the people are educated. The salary level of the majority of the consumers are in the mid-range between Rs. 20001 – 40000 which constitutes 35.7% (N=107). Table 1: Demographic Characteristics of the consumers Particulars Variable Frequency Percentage Gender Male 135 45.0 Female 165 55.0 Age(Years) Below 25 121 40.3 25-35 99 33.0 35-50 42 14.0 Above 50 38 12.7 Marital Status Married 171 57.0 Unmarried 129 43.0 Educational Qualification Undergraduate 41 13.7 Graduate 186 62.0 Post Graduate 73 24.3 Monthly Income(Rs.) <20000 94 31.3 20001-40000 107 35.7 >400001 99 33.0 6.2. RELIABILITY OF THE INSTRUMENT The reliability of the survey instrument was measured using reliability coefficient Cronbach Alpha. The cronbach alpha values of the proposed scale were found to comfortably well above the prescribed limits of the alpha value of 0.6. The alpha value for the variable
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International Journal of
Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 5, Issue 5, September – October (2014), pp. 01-10 © IAEME 6 health consciousness was 0.791, while the alpha value for the variable environmental factors was 0.823 and safety considerations has the alpha value of 0.733. 6.2.3. Descriptive Statistics The descriptive statistics of the data collected from the consumers is shown in table 3. It is evident results that the consumers perceived health consciousness (M=4.9, SD=0.65) on a higher scale rating when compared to other two variables. The descriptive statistics also reveal that environmental factors were not given significant importance by the consumers of the study in their decisions to purchase organic food products. Table 3: Descriptive Statistics Variable Mean SD Health consciousness 4.9 0.65 Environmental factors 3.7 0.86 Safety considerations 4.2 0.62 6.2.4. CORRELATION The correlation among the variables was measured using Pearson correlation coefficient. The values of the correlation coefficient and the level of significance are shown in table 4. The results shows significant negative correlation (p=0.001) between health consciousness and environmental factors. The possible reason for negative correlation could be that the consumers of the study places more importance on health related reasons to purchase organic foods than environmental related considerations. Positive correlation was reported between health consciousness and safety considerations at 0.01 level. Table 4: Bi-variate correlations among variables Variable Health consciousness Environmental factors Safetyconsiderations Health consciousness 1 -0.236** 0.199** Environmental factors -.236** 1 0.025 Safety considerations 0.199** 0.025 1 * - Significant at 0.05 level, ** - Significant at 0.01 level 6.3. RESULTS OF MEAN COMPARISONS Independent sample t-test was conducted to test the difference in mean rating between male and female consumers in their attitude towards purchasing organic food products. The results from the table show a marginal difference between male and female consumers for the variables Health consciousness and Environmental factors. The t-test results are displayed in table 5.
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International Journal of
Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 5, Issue 5, September – October (2014), pp. 01-10 © IAEME 7 Table 5: t-test with gender as independent variable Variable Gender t – value P Male (n=145) Female (n=165) M SD M SD Health consciousness 4.7 0.63 4.9 0.70 2.4* 0.01 Environmental factors 3.9 0.79 3.6 0.91 3.1** 0.00 Safety considerations 4.2 0.57 4.3 0.66 0.7 0.47 * - Significant at 0.05 level, ** - Significant at 0.01 level Independent sample t-test was conducted to test the difference in mean rating between married and unmarried consumers in their attitude towards purchasing organic food products. The results from the table shows a non-significant difference in the mean rating between married and unmarried consumers and the t-test results are displayed in table 6. Table 6: t-test with gender as independent variable Variable Marital Status t – value P Married (n=171) Unmarried (n=129) M SD M SD Health consciousness 4.9 0.67 5.0 0.63 1.52 0.13 Environmental factors 3.8 0.85 3.7 0.88 0.47 0.64 Safety considerations 4.2 0.59 4.3 0.66 1.56 0.12 One-way ANOVA was used to test the difference in mean rating between consumers from different age group in their attitude towards purchasing organic food products. The results from the table 7 showthat the difference in rating between consumers of various age group are non-significant for all the variables.
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International Journal of
Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 5, Issue 5, September – October (2014), pp. 01-10 © IAEME 8 Table 7: ANOVA results of the scale with Age Group as Independent Variable Variable Age Group N Mean SD F Sig. Health consciousness <25 121 4.9 0.69 0.65 0.5925-35 99 4.9 0.71 35-45 42 5.1 0.48 >45 38 4.9 0.52 Environmental factors <25 121 3.7 0.95 0.32 0.8125-35 99 3.8 0.81 35-45 42 3.6 0.86 >45 38 3.7 0.70 Safety considerations <25 121 4.2 0.64 2.28 0.08 25-35 99 4.2 0.60 35-45 42 4.4 0.60 >45 38 4.4 0.63 One-way ANOVA was used to test the difference in mean rating between consumers from different income level in their attitude towards purchasing organic food products. The results from the table 8 shows that a significant difference in rating of consumers for health consciousness factor (p=0.01 level) while other groups reported no significant differences in mean rating in the attitude towards organic food products. Table 8 ANOVA results of the scale with Income as Independent Variable Variable Income (Rs) N Mean SD F Sig. Health consciousness <20000 94 3.75 0.81 14.84** 0.0020001-40000 107 3.72 0.90 >400001 99 3.75 0.87 Environmental factors <20000 94 4.23 0.59 0.05 0.9520001-40000 107 4.18 0.61 >400001 99 4.37 0.66 Safety considerations <20000 94 4.23 0.59 2.60 0.0820001-40000 107 4.18 0.61 >400001 99 4.63 0.72
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International Journal of
Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 5, Issue 5, September – October (2014), pp. 01-10 © IAEME 9 7. CONCLUSIONS The awareness about organic food products is increasing among the people and their intention to buy organic food is shaped by various beliefs. Their actual buying behavior is direct result of strong intention and attitudinal values towards the benefits of the organic products. An attempt has been made in this study to analyze what motivates consumers to purchase organic food products. The scope of the study was delimited to understand the impact of only three variables namely health consciousness, environmental factors and safety considerations in the purchasing decisions of consumers buying organic food products. The results of the study show that the sample of the study was more concerned with health and safety factors in their decision to consume organic food products. However care should be taken in drawing generalizations of the results of the study as the study was undertaken with limited sample of consumers in a selected city. The study can be extended further by considering more number of variables and larger sample sizes. 8. REFERENCES 1. Chinnici, G., D’Amico, M. and Pecorino, B. (2002), “A multivariate statistical analysis on the consumers of organic products”, British Food Journal, Vol. 104 Nos 3/5, pp. 187-99. 2. Cranfield, J. A., and E. Magnusson (2003). Canadian consumers’ willingness-to-pay for pesticide free food products: An ordered probit analysis. International Food and Agribusiness Management Review 6 (4): 14–30. 3. Govindasamy, R., and J. Italia (1999). Predicting willingness-to-pay a premium for organically grown fresh produce. Journal of Food Distribution Research 30 (2): 44–53. 4. Groff, A. J., C. R. Kreider, and U. C. Toensmeyer. (1993). Analysis of the Delaware market for organically grown produce. Journal of Food Distribution Research 24 (2): 118–125. 5. Grunert, S., &Juhl, H. (1995).Values, environmental attitudes and buying of organic foods.Journal of Economic Psychology, 16, 39–62. 6. Harper, G. C., &Makatouni, A. (2002). Consumer perception of organic food production and farm animal welfare. British Food Journal, 104(3/4/5), 287-299. 7. Institute of Food Science and Technology (IFST) (2005) Organic food, IFST, London. 8. Lockie, S., Lyons, K., Lawrence, G. and Mummery, K. (2002) Eating Green: Motivations behind organic food consumption in Australia, SociologiaRuralis, 42: 1: pp 23-40. 9. Market & Opinion Research International Limited (MORI) (2003) 'Green Choice' Is Still A Middle Class Affair, MORI, London. 10. McIntosh, W. A., Acuff, G. R., Christensen, L.R. and Hale, D. (1994) Public perceptions of food safety, The Social Science Journal, 31, 3: pp 285-292. 11. Padel, S. and Foster, C. (2005) Exploring the gap between attitudes and behavior: Understanding why consumers buy or do not buy organic food, British Food Journal, 107, 8: pp 606-625. 12. Quah, S. H., & Tan, A. K. (2009). Consumer purchase decisions of organic food products: An ethnic analysis. Journal of International Consumer Marketing, 22(1), 47-58.
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International Journal of
Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 5, Issue 5, September – October (2014), pp. 01-10 © IAEME 10 13. Soil Association. (2000) Organic farming, food quality and human health: A review of the evidence, Soil Association, Bristol. 14. Stobelaar, D. J., Casimir, G., Borghuis, J., Marks, I., Meijer, L. and Zebeda, S. (2006) Adolescents’ attitudes towards organic food: a survey of 15 to 16-year old school children, International Journal of Consumer Studies, 31, 4: pp 349-356. 15. Torjusen, H., Lieblein, G. Wandel, M. and Francis, C.A. (2001) Food system orientation and quality perception among consumers and producers of organic food in Hedmark Country, Norway, Food Quality and Preference, 12: pp: 207-216. 16. Vermeir, I., &Verbeke, W. (2004). Sustainable food consumption: Exploring the consumer attitude-behaviour gap. Ghent University, WP, 4, 268. 17. Werner, J., & Alvensleben, R.V. (2011).Consumer Attitudes towards Organic Food in Germany (F.R.). Symposium on Horticultural Economics, VIII(155). 18. Dr. N. Mahesh and Dr. R. Ganapathi, “A Study on Determinants of Consumers’ Purchase Behaviour Towards Green Products”, International Journal of Management (IJM), Volume 3, Issue 3, 2012, pp. 32 - 41, ISSN Print: 0976-6502, ISSN Online: 0976-6510. 19. Sakthirama.V and Dr. R.Venkatram, “A Structural Analysis of Purchase Intention of Organic Consumers”, International Journal of Management (IJM), Volume 3, Issue 2, 2012, pp. 401 - 410, ISSN Print: 0976-6502, ISSN Online: 0976-6510.
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