Consumer Behaviour Project Report Group5 SecA

download Consumer Behaviour Project Report Group5 SecA

of 28

Transcript of Consumer Behaviour Project Report Group5 SecA

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    1/28

    Consumer Attitude towards

    Organic Food Products

    Consumer Behaviour

    AbstractOrganic food market is very challenging in Indian food

    market. Indian consumers have raised great interest to

    healthy and quality food with high nutritional value,

    environmental concern and food safety.

    Aanchal Saxena PGP03001

    Ankit Bajaj PGP03011

    Aniruddha Halder PGP03010

    Raj Rishi Purohit PGP03045

    Rajarshi Roy PGP03046

    Tushar Rhode PGP03060

    Group #5

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    2/28

    1 | P a g e

    Consumer Attitude towards Organic Food Products

    Table of Contents1.0 Intoduction .................................................................................................................................. 2

    2.0 Objective of the Study ................................................................................................................ 3

    3.0 Research Methodology ............................................................................................................... 3

    4.0 Research Findings and Analysis .................................................................................................. 4

    5.0 Consumer Implications ............................................................................................................. 20

    6.0 Recommendations .................................................................................................................... 21

    6.1 AdvertisingPromoting Organic Products .......................................................................... 21

    6.2 Packaging and in-store promotion ........................................................................................ 23

    6.3 Placement of Advertisements: .............................................................................................. 23

    6.4 Leveraging government support ........................................................................................... 24

    7.0 Annexure ................................................................................................................................... 25

    8.0 References ................................................................................................................................ 27

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    3/28

    2 | P a g e

    Consumer Attitude towards Organic Food Products

    1.0 INTRODUCTIONThe organic food industry has been growing immensely worldwide in last few years. The

    organic food industry in India has been experiencing an CAGR around 20-22 per cent. There

    are over 15,000 certified organic farms in India and the number is growing at fast pace year

    on year. With the help of companies like ITC etc, there are many small farmers growing

    organic food by using the organic practices .The future of organic products entirely demands

    of consumers. Thus, a consumer-oriented approach is the best way to develop an

    understanding of organic product demand, the consumer perception and attitude towards it

    .This approach will help to develop a clear understanding of the shifting market dynamics.

    From a marketing perspective, it is important to understand the sustainable attitude of

    consumers regarding organic products, and how to promote their usage. Product

    development and marketing strategies are affected by consumer beliefs, attitudes and

    responses. This could vary depending on the region of the world. Thus, a clear

    understanding of consumer attitudes and the motivations underlying actions in responding

    to organically grown products in India is important. Considering all these factors a proper

    set of Questionnaire is designed which is used in conducting survey among the target

    audience i.e. educated youth of around 20-28 yrs.

    Organic food is food produced in a way that complies with organic standards set by national

    governments and international organizations. These foods are produced using methods of

    organic farming i.e. no use of synthetic and chemical products. Organic farming is a form of

    agriculture that relies on techniques such as crop rotation, green manure, compost and

    biological pest control.

    The attitude towards the usage of organic food is increasing among the consumers whichgives a positive vibes for the organic food industry. The future of organic agriculture will, to

    a large extent, also depend on favourable attitude and motivational factors towards organic

    food products.

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    4/28

    3 | P a g e

    Consumer Attitude towards Organic Food Products

    2.0 Objective of the StudyThe purpose of the project is to assess the customer behaviour with regard to organic

    products. The effort was made to capture the factors that influence their purchase decision.

    And finally on interpretation of customers responses, a recommendation to the companys

    who are trying to business in organic products on how to influence customers motives

    towards their products.

    3.0 Research MethodologyAn online questionnaire was designed consisting of 40 questions. The questionnaire was

    split into four broad sections namely:-

    Demographics General Environmental Beliefs Environmental Behavior Marketing and Branding attitude towards Organic Product

    The questionnaire was designed using HEP-NEP i.e Human Exceptionist Paradigm New

    Environmental Paradigm. The possible responses were strongly agree, agree, neutral,

    disagree, and strongly disagree.

    Data were collected by means of questionnaires that were sent through electronic mail.

    Overall 250 questionnaires were mailed, and 71 usable questionnaires were received. All

    the respondents were educated youth aged between 20-28 yrs. studying in various B-

    schools of India and working in different IT organizations across India. Data collected was

    analyzed using SPSS tool.

    The questions in 2nd

    and 3rd

    sections of questionnaire were considered as independent

    variables and the last section was considered as dependent. Factor analysis was done

    among these independent variables to identify the significant factors. Correlation was

    calculated to find out the relationship (if any) between these factors.

    Regression analysis was done to analyze the influence of marketing and branding attitude

    towards Organic product.

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    5/28

    4 | P a g e

    Consumer Attitude towards Organic Food Products

    4.0 Research Findings and AnalysisFactor Analysis of first set of questions i.e. General Environmental Beliefs:

    KMO and Bartlett's Test

    Kaiser-Meyer-Olkin Measure of Sampling

    Adequacy..645

    Bartlett's Test of

    Sphericity

    Approx. Chi-Square 309.785

    Df 66

    Sig. .000

    Rotated Component Matrixa

    Component

    1 2 3 4

    1. We are approaching

    the limit of the

    number of people theearth can support

    .262 .092 -.002 .789

    2. The balance of

    nature is very delicate

    and easily upset.

    .164 .390 .608 .117

    3. Humans have the

    right to modify the

    natural environment

    to suit their needs.

    .017 .791 .148 -.337

    4. Mankind was

    created to rule over

    the rest of nature.

    .023 .332 -.799 .110

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    6/28

    5 | P a g e

    Consumer Attitude towards Organic Food Products

    5. When humans

    interfere with nature,

    it often has disastrous

    consequences.

    .830 -.172 .013 .194

    6. Plants and animals

    exist primarily to be

    used by humans.

    -.059 .455 -.127 -.689

    7. To maintain a

    healthy economy, we

    will have to control

    industrial growth

    .268 -.451 .090 .176

    8. Humans must live in

    harmony with nature

    in order to survive

    .831 -.102 .237 .120

    9. The earth is like a

    spaceship with only

    limited room and

    resources

    .569 .133 .583 .210

    10. Humans need not

    adapt to the natural

    environment because

    they can remake it to

    suit their own needs

    -.077 .792 -.029 .231

    11. There are limits to

    which our

    industrialised society

    can expand

    .773 -.078 -.079 -.013

    12. Mankind is

    severely abusing the

    environment

    .638 .078 .418 .206

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    7/28

    6 | P a g e

    Consumer Attitude towards Organic Food Products

    Extraction Method: Principal Component Analysis

    Rotation Method: Varimax with Kaiser Normalization

    a. Rotation converged in 8 iterations

    The relevant questions are hence grouped as:

    Group1: Harmony with natureThis refers to how the consumers view the planet and how

    connected they are with preserving nature. This reflects their concern for nature and how

    humans are damaging the environment

    Group1- Harmony with Nature

    5. When humans interfere with nature, it often has disastrous consequences

    8. Humans must live in harmony with nature in order to survive

    9. The earth is like a spaceship with only limited room and resources

    11. There are limits to which our industrialised society can expand

    12. Mankind is severely abusing the environment

    Group2: Natural EnvironmentThis refers to the level of exploitation that people feel is

    enough to suit their needs.

    Group2 Natural Environment

    3. Humans have the right to modify the natural environment to suit their needs

    4. Mankind was created to rule over the rest of nature

    6. Plants and animals exist primarily to be used by humans.

    10. Humans need not adapt to the natural environment because they can remake it

    to suit their own needs

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    8/28

    7 | P a g e

    Consumer Attitude towards Organic Food Products

    Factor analysis of second set of questions i.e. Environmental Behavior:

    KMO and Bartlett's Test

    Kaiser-Meyer-Olkin Measure of Sampling

    Adequacy..569

    Bartlett's Test of

    Sphericity

    Approx. Chi-Square 192.563

    Df 28

    Sig. .000

    Rotated Component Matrixa

    Component

    1 2 3

    1. Use organic

    products.671 .301 .021

    2. Avoid buying

    inorganic products .690 .268 -.281

    3. Read labels to see if

    contents are

    environmentally safe

    .075 .870 -.081

    4. Buy products made

    organically.845 -.020 .079

    5. Avoid buying

    products from

    companies who are

    not environmentally

    responsible

    .116 .861 .162

    6. Contribute money

    to environmental

    causes

    .597 .334 .526

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    9/28

    8 | P a g e

    Consumer Attitude towards Organic Food Products

    7. Volunteer for an

    environmental group.798 -.066 .075

    8. Write to politicians -.040 .003 .955

    Extraction Method: Principal Component Analysis

    Rotation Method: Varimax with Kaiser Normalization

    a. Rotation converged in 4 iterations

    The groups formed are as follows:

    Group3: Buying Behaviour: This refers to the attitude of consumers towards buying organic

    food and environmental causes

    Group3- Buying Behaviour

    2. Avoid buying inorganic products

    4. Buy products made organically

    6. Contribute money to environmental causes

    7. Volunteer for an environmental group

    Group4: Consumer consciousness: This refers to how conscious the consumer is towards

    being environmentally responsible, and if they take any actions about it

    Group4 - Consumer consciousness

    3. Read labels to see if contents are environmentally safe

    5. Avoid buying products from companies who are not environmentally responsible

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    10/28

    9 | P a g e

    Consumer Attitude towards Organic Food Products

    Factor Analysis of third set of questions i.e. Marketing and Branding attitude towards

    Organic Product

    KMO and Bartlett's Test

    Kaiser-Meyer-Olkin Measure of Sampling

    Adequacy..701

    Bartlett's Test of

    Sphericity

    Approx. Chi-Square 206.391

    Df 36

    Sig. .000

    Rotated Component Matrixa

    Component

    1 2 3

    1. I feel good about

    buying only organic

    food items that are

    less damaging to the

    environment

    .370 .742 .135

    2. It is easy for me to

    identify these products.001 .782 .106

    3. Organic products

    are inferior in

    performance to

    inorganic products: a.

    I have formed this

    opinion because

    people I know and

    trust told me so

    -.018 .058 .820

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    11/28

    10 | P a g e

    Consumer Attitude towards Organic Food Products

    b. I have formed this

    opinion because of my

    own experience of the

    product

    .166 .096 .744

    4. I trust well-known

    brands to make

    products which work

    .725 .088 .261

    5. In the marketing

    communication about

    your product I expect

    to be informed of new

    improved formulas

    and design

    .763 .214 .018

    6. In the marketing

    communication about

    your product I expect

    to be informed of how

    environmentally

    friendly a product is.

    .816 -.061 .046

    7. In the marketing

    communication about

    your product I expect

    to be informed of the

    clear benefits of the

    product to me and my

    family.

    .825 .360 -.051

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    12/28

    11 | P a g e

    Consumer Attitude towards Organic Food Products

    8. Organic products

    are marketed to me in

    a way which I find

    really engaging and

    relevant to my

    lifestyle.

    .130 .864 .001

    Extraction Method: Principal Component Analysis

    Rotation Method: Varimax with Kaiser Normalization

    a. Rotation converged in 5 iterations

    The groups are described as follows:

    Group5:Information about organic products: This refers to how much information

    consumers have or would like to have about organic products

    Group5: Information about organic products

    4. I trust well-known brands to make products which work

    5. In the marketing communication about your product I expect to be informed of new

    improved formulas and design

    6. In the marketing communication about your product I expect to be informed of how

    environmentally friendly a product is

    7. In the marketing communication about your product I expect to be informed of the clear

    benefits of the product to me and my family

    Group 6: Relevance to lifestyle: How important are organic products to lifestyle

    Group 6: Relevance to lifestyle

    1. I feel good about buying only organic food items that are less damaging to the

    environment

    2. It is easy for me to identify these products

    8. Organic products are marketed to me in a way which I find really engaging and relevant to

    my lifestyle.

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    13/28

    12 | P a g e

    Consumer Attitude towards Organic Food Products

    Group7: Experience with organic productsThe customer experience with organic products

    Group7: Experience with organic products

    3. Organic products are inferior in performance to inorganic products: a. I have formed this

    opinion because people I know and trust told me so

    b. I have formed this opinion because of my own experience of the product

    The variables are:

    Name of Variable Type of VariableHarmony with nature Independent

    Natural Environment Independent

    Buying Behaviour Dependant

    Consumer consciousness about organic

    products Independent

    Information about organic products Dependant

    Relevance to lifestyle Independent

    Experience with organic products Independent

    We calculate correlations of the dependent variables with the independent variables and

    the results are tabulated as follows:

    Correlations

    Harm

    ony

    with

    natur

    e

    Natural

    Environ

    ment

    Buying

    behavi

    our

    Informa

    tion

    about

    organic

    product

    s

    Releva

    nce to

    lifestyl

    e

    Experie

    nce

    with

    organic

    produc

    ts

    Consume

    r

    conscious

    ness

    Spearm

    an's rho

    Harmony

    with

    nature

    Correla

    tion

    Coeffici

    ent

    1.000 -.183 .561**

    .316**

    .217 .001 -.257*

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    14/28

    13 | P a g e

    Consumer Attitude towards Organic Food Products

    Sig. (2-

    tailed). .126 .000 .007 .070 .992 .030

    N 71 71 71 71 71 71 71

    Natural

    Environm

    ent

    Correla

    tion

    Coeffici

    ent

    -.183 1.000 -.266* .055 .242

    * .193 .264

    *

    Sig. (2-

    tailed).126 . .025 .646 .042 .106 .026

    N 71 71 71 71 71 71 71

    Buying

    behaviour

    Correla

    tion

    Coeffici

    ent

    .561*

    *

    -.266* 1.000 .185 .188 -.070 -.118

    Sig. (2-

    tailed).000 .025 . .122 .117 .560 .326

    N 71 71 71 71 71 71 71

    Informati

    on about

    organic

    products

    Correla

    tion

    Coeffici

    ent

    .316*

    *

    .055 .185 1.000 -.283* -.134 .076

    Sig. (2-

    tailed)

    .007 .646 .122 . .017 .266 .528

    N 71 71 71 71 71 71 71

    Relevanc

    e to

    lifestyle

    Correla

    tion

    Coeffici

    ent

    .217 .242* .188 -.283

    * 1.000 -.146 .100

    Sig. (2-

    tailed) .070 .042 .117 .017 . .226 .406

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    15/28

    14 | P a g e

    Consumer Attitude towards Organic Food Products

    N 71 71 71 71 71 71 71

    Experienc

    e with

    organic

    products

    Correla

    tion

    Coeffici

    ent

    .001 .193 -.070 -.134 -.146 1.000 -.078

    Sig. (2-

    tailed).992 .106 .560 .266 .226 . .519

    N 71 71 71 71 71 71 71

    Consume

    r

    conscious

    ness

    Correla

    tion

    Coeffici

    ent

    -.257* .264

    * -.118 .076 .100 -.078 1.000

    Sig. (2-

    tailed).030 .026 .326 .528 .406 .519 .

    N 71 71 71 71 71 71 71

    **. Correlation is significant at the 0.01 level (2-tailed).

    *. Correlation is significant at the 0.05 level (2-tailed).

    From this table we can see that there are significant correlations between

    1. Harmony with nature and buying behaviour2. Harmony with nature and Information about organic products3. Harmony with nature and Consumer consciousness4. Natural Environment with Buying behaviour5. Natural Environment with Relevance to lifestyle6. Natural Environment with Consumer consciousness7. Information about organic products with Relevance to lifestyle

    From this analysis we can see that buying behaviour towards organic products is directly

    linked to the concern for natural environment. This implies that those consumers who are

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    16/28

    15 | P a g e

    Consumer Attitude towards Organic Food Products

    concerned about the environment and the damage caused to it by using chemicals prefer

    using organic products and buy the organic variant as much as possible. It can also be seen

    that those consumers who are conscious about the damage to the environment take steps

    to maintain a balance with nature. Those who think that organic products are important for

    them to maintain a certain lifestyle, take necessary steps to find out about the different

    organic products available in the market and if there are new varieties in the market.

    Regression analysiswas done with buying behaviour as dependent variable and the others

    as independent variable and the results are:

    Model Summaryb

    Mode

    l

    R R Square Adjusted R

    Square

    Std. Error of

    the Estimate

    1 .570a .325 .262 .85901259

    a. Predictors: (Constant), Information about organic

    products, Experience with organic products, Relevance to

    lifestyle, Consumer consciousness, Natural Environment,

    Harmony with nature

    b. Dependent Variable: Buying behaviour

    ANOVAa

    Model Sum of

    Squares

    df Mean

    Square

    F Sig.

    1

    Regression 22.774 6 3.796 5.144 .000b

    Residual 47.226 64 .738

    Total 70.000 70

    a. Dependent Variable: Buying behaviour

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    17/28

    16 | P a g e

    Consumer Attitude towards Organic Food Products

    b. Predictors: (Constant), Information about organic products, Experience with

    organic products, Relevance to lifestyle, Consumer consciousness, Natural

    Environment, Harmony with nature

    Coefficientsa

    Model Unstandardized

    Coefficients

    Standardized

    Coefficients

    t Sig.

    B Std. Error Beta

    1

    (Constant) 1.046E-016 .102 .000 1.000

    Harmony with nature .181 .185 .181 .979 .331

    Natural Environment -.440 .128 -.440 -3.450 .001

    Relevance to lifestyle .328 .138 .328 2.379 .020

    Experience with

    organic products.098 .114 .098 .862 .392

    Consumer

    consciousness .023 .109 .023 .214 .831

    Information about

    organic products.167 .170 .167 .985 .328

    a. Dependent Variable: Buying behaviour

    The null hypothesis is that buying behaviour cannot be predicted by the other six variables.

    R square value is .325which indicates that our model reasonably fits the data. From the

    significance values we can see that the hypothesis is rejected for Natural Environment and

    Relevance to lifestyle. Thus we can say that buying behaviour can be predicted by these two

    variables.

    Regression analysiswas also done with information about organic products as dependent

    variable:

    Model Summaryb

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    18/28

    17 | P a g e

    Consumer Attitude towards Organic Food Products

    Mode

    l

    R R Square Adjusted R

    Square

    Std. Error of

    the Estimate

    1 .796a .633 .605 .62853477

    a. Predictors: (Constant), Consumer consciousness,

    Experience with organic products, Relevance to lifestyle,

    Harmony with nature, Natural Environment

    b. Dependent Variable: Information about organic

    products

    ANOVAa

    Model Sum of

    Squares

    df Mean

    Square

    F Sig.

    1

    Regression 44.321 5 8.864 22.438 .000b

    Residual 25.679 65 .395

    Total 70.000 70

    a. Dependent Variable: Information about organic products

    b. Predictors: (Constant), Consumer consciousness, Experience with organic

    products, Relevance to lifestyle, Harmony with nature, Natural Environment

    Coefficientsa

    Model Unstandardized

    Coefficients

    Standardized

    Coefficients

    t Sig.

    B Std. Error Beta

    1

    (Constant) 1.598E-016 .075 .000 1.000

    Harmony with nature .855 .084 .855 10.217 .000

    Natural Environment .286 .086 .286 3.315 .001

    Relevance to lifestyle -.408 .087 -.408 -4.672 .000

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    19/28

    18 | P a g e

    Consumer Attitude towards Organic Food Products

    Experience with

    organic products-.191 .080 -.191 -2.392 .020

    Consumer

    consciousness .059 .079 .059 .739 .463

    a. Dependent Variable: Information about organic products

    The R squaredvalue is .633i.e. the goodness of fit of this model is good with confidence of

    63.3%.

    The null hypothesis is rejected for all variables except consumer consciousness. This means

    that information about organic products can be predicted by Harmony with nature, natural

    environment, relevance to lifestyle and experience with organic products. In terms of

    consumer behaviour, those consumers who are concerned about the damage to the

    environment generally take steps to find out about the organic products that are available

    in the market. Thus, the level of information that consumers have about organic products

    can be predicted if their concern for the environment is known.

    Regression Analysiswas also done with Relevance to lifestyleas a dependent variable, to

    check if the importance of organic products in consumers lives can be predicted by their

    concern for the environment. The results are:

    Model Summary

    Mode

    l

    R R Square Adjusted R

    Square

    Std. Error of

    the Estimate

    1 .668a .446 .403 .77258255

    a. Predictors: (Constant), Consumer consciousness,

    Experience with organic products, Information about

    organic products, Natural Environment, Harmony with

    nature

    Coefficients

    a

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    20/28

    19 | P a g e

    Consumer Attitude towards Organic Food Products

    Model Unstandardized

    Coefficients

    Standardized

    Coefficients

    t Sig.

    B Std. Error Beta

    1

    (Constant) 1.109E-016 .092 .000 1.000

    Harmony with nature .807 .132 .807 6.092 .000

    Natural Environment .455 .100 .455 4.559 .000

    Experience with

    organic products-.217 .099 -.217 -2.203 .031

    Information about

    organic products

    -.616 .132 -.616 -4.672 .000

    Consumer

    consciousness.033 .098 .033 .332 .741

    a.Dependent Variable: Relevance to lifestyle

    The R squared valueis 44.6 per cent, which indicates an appropriate fit of this model. It can

    be seen that the null hypothesis is rejected for all variables except consumer consciousness.

    This implies that concern for the environment does impact consumers lifestyle and it varies

    as their experience with organic products changes.

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    21/28

    20 | P a g e

    Consumer Attitude towards Organic Food Products

    5.0 Consumer ImplicationsThe concerns of the consumer regarding environment has been increasing in the past one

    decade due to sustainable campaigns by governments, NGO, Media and so on about being

    environmentally conscious. Also the side effects of the more pesticides in food items in India

    and the lax regulations in checking whether the crop produced is in accordance to the

    guidelines on fertilizer and pesticide use, has made the consumers od today more aware.

    Also there has been an increase in health consciousness among the middle and upper class

    Indians which have led to increase in awareness and subsequent adoption of organically

    produced food. This sector has is still in nascent stage in India and the opportunities of

    growth are immense.

    As per our finding we see that consumers are aware of the importance of leading an

    environmentally sustainable lifestyle and their attitude towards organic food is positive.

    The task of the marketer lies in converting this positive attitude into actual sales of organic

    food products. The brand communication should evolve around this positive attitude and

    the care for environmentally sustainability.

    The demand for organic food is fairly high in developed countries and the people there are

    willing to pay premium over the normally cultivated crops.

    On the supply side, India has huge potential to increase its organic farming food output. The

    Government of India has implemented the National Programme for Organic Production

    (NPOP), a accreditation body that certifies whether crops are produced organically.

    Companies should display such logos in their packaging to win the consumer trusts.

    At present most of the organically grown products in India are for export markets .However

    with increase consumer awareness about this brand. The survey results revealed that only

    58.8% of total respondents were aware of organic food in which only 12.8 percent

    irregularly/regularly consumed organic food. It indicates that for majority of the even aware

    people organic food is still away from their food basket. Further, inresponse to willingness

    to pay for organic food, a majority (60.6%) of people were willing to pay premium prices to

    purchase organic food and 35.2 percent reported as cant say. It clearly indicates that

    there is great market potential for organic food in the country. The factor analysis has

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    22/28

    21 | P a g e

    Consumer Attitude towards Organic Food Products

    extracted five important factors indicating five groups of new generation potential organic

    consumers: Humanists, Food Phobics, Healthy Eaters, Environmentalists and Hedonists. This

    indicate that consumers interest in organic food is influenced by their belief that

    organically produced food is safe and better for health, environment and welfare of farmers

    and poor. The results of logistics analysis indicate that potential Indian consumers'

    awareness of organic food is strongly and significantly affected by factors such as education,

    stream of education and use of ICTs. The awareness is only slightly affected by factors such

    as gender and income level. Males who belong to higher income groups of more than Rs.5

    lakhs are more likely to be aware as compare to counterpart. Results of the study have great

    implication to understand the consumers awareness and knowledge on organic food. To

    tap the market potential in organic food, the organic industry needs to educate consumers.

    6.0 Recommendations

    6.1 AdvertisingPromoting Organic Products

    It is essential to know the customer preference and the attitude of the customer towards

    the product. The parameters that came out of our study and those which can be utilised in

    promoting the organic food brands are:

    Economic

    Random, i.e. advertising

    Psychological & sociological, i.e. their wish to belong to a specific social group, or to

    demonstrate an attitude concerning their nutrition

    Demographical, i.e. the interest of the consumer is influenced by an increase in the

    members of the family (birth of children)

    Reasons that the consumers think are important for moving to organic food:

    The recent controversy over BT brinjals or genetically modified brinjals that theconsumers have given a negative criticism.

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    23/28

    22 | P a g e

    Consumer Attitude towards Organic Food Products

    Media stories about colours being used to make fruits and vegetables look morefresher

    Excess fertilizers and steroids being applied to crops to make the harvest muchbigger in size than traditional ones

    The consumers effort to have access to safe foodstuffs, such as organic products The consumers wish to avoid foodstuffs that contain Genetically Modified

    Organisms

    The consumers wish to support organic farmers, taking into account the positiveeffects of organic farming on the environment

    The expansion and increase of the variety of organic products.Apart from consumers the following are the reasons which makes the producers more

    aggressive about the growth in this sector:

    The awareness and improvement of the information flow about organic products inconsumers.

    The distribution channels reaching out to open bazaars as well as modern retailstores.

    The expected reduction of the prices, due to the better production methods,economies of scale and better trading methods.

    Government support for increase in cultivation of organic food.As per the survey results on attitudes and analysis of the above mind-set of consumers,

    marketers can use the following themes for advertising and sales promotion to lure the

    buyers towards organic food:

    Changing the consumer attitude of Organic food as a luxury item to be usedoccasionally to a necessity to be bought daily for consumption.

    Encourage the customer towards a healthier alternative lifestyle. Using the placebo effect effectively to upsell the organic products to the customer Use a combination of cognitive (taste, freshness) and affective models in

    advertisement

    Bringing the non-users to the user category by converting the latent demand presentin the market.

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    24/28

    23 | P a g e

    Consumer Attitude towards Organic Food Products

    Use localisation and safe origin with support to local farming communities asmarketing slogans

    Use contests and give consumers a chance to visit in organic farms to increaseengagement and information awareness.

    6.2 Packaging and in-store promotion

    The packaging should use environmentally friendly/bio-degradable materials orrecycled materials to allow the consumer to notice the difference between normal

    and organic food and make the consumer buying experience more engaging and

    environmentally acceptable. The label should be a guarantee for the consumer

    about its organic character and should being directly recognised.

    Special emphasis is given to in store personnel sales, which are considered to be aneffective way to transfer specialised knowledge. This kind of sale is indispensable

    especially for the organic products stores, as the consumer usually expects that the

    salesmen in such stores have the respective specialised knowledge.

    Educating the consumers about the inspection systems and their logos andcertifications on organic food package.

    Through creation of separate counters for organic food in modern retail storescreate the j.n.d between the normal crops and organic crops in the mind of the

    consumers.

    6.3 Placement of Advertisements:

    For high involvement customers:

    Books about nutrition Specialised magazines

    For Low involvement customers:

    Informational leaflets informational campaigns in the mass media (television, radio, newspapers) Social networks

    Below the Line Advertisement promotions:

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    25/28

    24 | P a g e

    Consumer Attitude towards Organic Food Products

    Through the School (special modules on nutrition, environment etc.) By the Consumers Associations and Unions (seminars, lectures etc.)

    6.4 Leveraging government support

    As this is a new industry with potential for high growth and environmentally sustainable the

    marketers should lobby with the government and involving them to make their campaigns

    more effective. Some steps that can be taken up:

    Organic foods may be offered at cheaper price (i.e.) Organic foods may bedistributed through fair price shops.

    Subsidies and incentives may be offered by the Government to the farmerswho cultivate organic foods. Organic fertilizers may be distributed through Co-

    operative societies at the affordable rate to the farmer community.

    Agriculture universities should offer necessary training programme for farmers ininculcating the method of preparing Organic pesticides

    Awareness programmes about the benefits of using Organic goods are to beorganized by the Government in association with Social Clubs like Rotary, Lions etc.,

    in the midst of general public

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    26/28

    25 | P a g e

    Consumer Attitude towards Organic Food Products

    7.0 Annexure

    Questionnaire

    Please assist me in filling this questionnaire. The information you provide will be used for

    research purpose and is confidential.

    1.Age (Years): 18-24 25-30 3140 41- 50 Above 502.No. of Family Members:3.Highest Education Completed: 10th 12th Graduation Post Graduation

    Others (Pl. Specify):_______________

    4.Approx. Annual Family Income (Rs.):Below 2 Lakhs 2 to 6 Lakhs 6 to 10 Lakhs 1015 Lakhs

    Above 15 Lakhs

    Listed below are a number of statements. Please indicate the extent to which you agree with

    each of the given statements by marking a ( ) in the box alongside, using the scale 1=

    Strongly Disagree, 2= Disagree, 3= Neither Agree nor Disagree, 4= Agree, 5= Strongly Agree.

    Strongly

    Disagree

    Disagree

    Neither

    Agreenor

    Disagree

    A

    gree

    Strongly

    A

    gree

    1 2 3 4 5

    1.We are approaching the limit of the number of people the

    earth can support

    2. The balance of nature is very delicate and easily upset

    3.Humans have the right to modify the natural environment to

    suit their needs

    4. Mankind was created to rule over the rest of nature

    5.

    When humans interfere with nature, it often has disastrous

    consequences

    6. Plants and animals exist primarily to be used by humans

    7.To maintain a healthy economy, we will have to control

    industrial growth

    8. Humans must live in harmony with nature in order to survive

    9.The earth is like a spaceship with only limited room and

    resources

    10Humans need not adapt to the natural environment because

    they can remake it to suit their own needs

    11 There are limits to which our industrialised society can expand

    12 Mankind is severely abusing the environment

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    27/28

    26 | P a g e

    Consumer Attitude towards Organic Food Products

    13 Do you Use organic products

    14 Do you avoid buying inorganic products

    15 Do you read labels to see if contents are environmentally safe

    16 Do you buy products made organically

    17 Do you avoid buying products from companies who are notenvironmentally responsible

    18 Do you contribute money to environmental causes

    19 Do you volunteer for an environmental group

    20 Do you write to politicians

    21 Do you Use organic products

    22 Do you avoid buying inorganic products

    23 Do you read labels to see if contents are environmentally safe

    24 Do you buy products made organically

    25Do you avoid buying products from companies who are not

    environmentally responsible26 Do you contribute money to environmental causes

    27I feel good about buying only organic food items that are less

    damaging to the environment

    28 It is easy for me to identify these products

    29Organic products are inferior in performance to inorganic

    products

    30I have formed this opinion because people I know and trust

    told me so

    31I have formed this opinion because of my own experience of

    the product32 I trust well-known brands to make products which work

    33In the marketing communication about your product I expect

    to be informed of new improved formulas and design

    34In the marketing communication about your product I expect

    to be informed of how environmentally friendly a product is.

    35

    In the marketing communication about your product I expect

    to be informed of the clear benefits of the product to me and

    my family.

    36Organic products are marketed to me in a way which I find

    really engaging and relevant to my lifestyle.

  • 8/13/2019 Consumer Behaviour Project Report Group5 SecA

    28/28

    Consumer Attitude towards Organic Food Products

    8.0 References1. http://www.discovery.org.in

    2. http://en.wikipedia.org

    http://www.discovery.org.in/http://www.discovery.org.in/http://en.wikipedia.org/http://en.wikipedia.org/http://en.wikipedia.org/http://www.discovery.org.in/