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International Journal of Mechanical Engineering and Technology (IJMET)
Volume 8, Issue 12, December 2017, pp. 1030–1041, Article ID: IJMET_08_12_111
Available online at http://www.iaeme.com/IJMET/issues.asp?JType=IJMET&VType=8&IType=12
ISSN Print: 0976-6340 and ISSN Online: 0976-6359
© IAEME Publication Scopus Indexed
ORGANIC FOOD MARKET AND ITS
CONSUMER BUYING BEHAVIOR OF
ECOLOGICALLY SUSTAINABLE GREEN
PRODUCTS
Aparna Goyal
Amity University Noida
Sanjeev Bansal
Amity University Noida
Sanjay Srivastava
Amity University Noida
ABSTRACT
Natural Green items sold are still very costly, on the grounds that the vast
majority of these items imported because of restricted creation in India and request a
muddled procedure when contrasted with the non-natural item. Eco-items take after
regular collecting cycle, which causes moderately low time span of usability. Natural
Vegetables and organic products painstakingly took care of for reaping by the
agriculturists and get-together to authorities for conclusive conveyance to providers
and general stores to the end purchaser (Guritno 2013). Interest for natural items
expanded essentially in the sustenance business in both created and creating nations.
Study centers in expanding vegetable utilization particularly the natural ones in light
of higher quality and developing interest in Delhi-NCR. Group building had been the
green sustenance advertise accomplishes accomplishment with higher nature of
vegetables including the natural ones. In view of the outcomes in conveyance
execution and immaculate request satisfaction characteristics, natural providers have
a high level of the non-natural provider. This is because of the number and sorts of
vegetables requested by the authorities or merchants specifically to the provider more
than non-natural providers are, with the goal that natural providers all the more
effortlessly satisfy the request. The investigation uncovered that natural vegetables'
customers from the two channels, current retailers and group markets are
fundamentally unconcerned in term of their characterized attributes. Purchasers of
natural vegetables overwhelmed by ladies customers (83.3%) and age gathering of
30-40 years (58.6%) with advanced education. They as supposition pioneers have
made mindfulness, verbal exchange and uplifting disposition of natural items for a
more advantageous life.
Aparna Goyal, Sanjeev Bansal and Sanjay Srivastava
http://www.iaeme.com/IJMET/index.asp 1031 [email protected]
Keywords: Ecologically safe, Green Marketing, Consumer Behaviour,
Environmentally sustainable, Healthy Organic Food
Cite this Article: Aparna Goyal, Sanjeev Bansal and Sanjay Srivastava, Organic Food
Market and Its Consumer Buying Behavior of Ecologically Sustainable Green
Products, International Journal of Mechanical Engineering and Technology 8(12),
2017, pp. 1030–1041.
http://www.iaeme.com/IJMET/issues.asp?JType=IJMET&VType=8&IType=12
1. INTRODUCTION
Organic items' are still very costly, in light of the fact that a large portion of these items
imported from abroad. Albeit organic items are still generally costly in light of restricted
generation and confounded process, contrast and the non-organic item. Despite the fact that
have been gathered which causes generally low timeframe of realistic usability. Other than
perishable, vegetables additionally are voluminous (not substantial but rather require space or
space that is sufficiently wide). Subsequently, vegetables require legitimate treatment of
reaping by agriculturists, social affair to gatherers, and conveyance to suppliers and
supermarkets to the customer (Guritno and Harsasi 2013). Be that as it may, interest for
organic items expanded altogether and substantially higher than in the sustenance business
when all is said in done in both created and creating nations. Organic sustenance items
consider 2% of the aggregate offers of all nourishment items all through the world. This is on
the grounds that customer request can be satisfied, while agents from upstream to downstream
get the advantage from the dissemination of these vegetables. Vegetables are farming items
that have the perishable nature (perishable and broken) in light of the fact that they have a
high water substance and continue running their biochemical movement even. National
Capital Region (NCR) speaks to the metropolitan territory of Capital in India (New Delhi). It
incorporates New Delhi and urban zones encompassing it in neighboring conditions of
Haryana, Uttar Pradesh and Rajasthan. The motivation behind this investigation was to decide
the stream of the vegetable production network from agriculturists to Delhi-NCR until
disseminated to buyers through a cutting edge advertise in Delhi-NCR.
LITERATURE REVIEW
Sulaeman (2007) characterized organic nourishment as "sustenance which originates from
organic cultivating framework that apply pragmatic administration with the expect to protect
environment to accomplish maintainable generation and controlling weed, nuisance and
infection through different routes, for example, reusing the deposits of plants and
domesticated animals, choice and product pivot, administration of water system, development
and planting and in addition the utilization of natural materials". Modern retailers are
important outlets for higher quality of vegetables including the organic ones. Nonetheless, in
this area just like in India in general, traditional market still considered dominant in
supplying people's vegetables consumption. Suharjo (2013) study revealed that there was
barrier to purchasing organic food product included that it was hard to find organic products
in traditional market. To be more specific about organic vegetables, ordinary traditional
market rarely provides organic vegetables, but there emerged a community market for organic
vegetables in Delhi-NCR. The term community market is used because this market related to
specific community, in this case community of organic and healthy products sellers and
buyers.
Organic Food Market and Its Consumer Buying Behavior of Ecologically Sustainable Green Products
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2.1. Rationale behind utilizing 4P's of Marketing
The time-respected promoting principles of who, what, when, and where to showcase any
items still applies to advertising either expectedly or organically developed create. These
principles are regularly alluded to as the 4Ps of showcasing - item, value, place and
advancement.
1. THE PRODUCT: Exactly what are you going to offer? Characterize it as far as what it
improves the situation your client. How can it help your client to accomplish, keep
away from or safeguard something? You should be clear about the advantages it offers
and how the client's life or function will be enhanced on the off chance that he or she
purchases your organic deliver.
2. THE PRICE: Exactly what amount would you say you will charge for your item, and
on what premise? How are you going to value it to offer at retail? How are you going
to value it at discount? How are you going to charge for volume rebates? Is your cost
right, in view of your expenses and the costs of your rivals?
3. THE PLACE: Where are you going to offer this item at this cost? Is it accurate to say
that you will offer specifically from your own particular ranch or through wholesalers?
4. THE PROMOTION: How are you going to advance, publicize and offer this item at
this cost, at this area? What will be the procedure from the principal contact with a
prospect through to the finished deal?
Makers see their items as the last aftereffect of their work. Be that as it may, we are truly
looking for an alternate finished result - a fulfilled client. Expanding your organic deals
potential requires delivering the most astounding quality item. Your business message is that
―produce isn't simply produce‖. Your organic create is ―special‖ as a result of your
generation framework, assortment choice, and ecological stewardship.
3. RESEARCH METHODOLOGY
The question of this investigation upwards of four vegetable production network comprising
of ranchers (suppliers) and gatherers (agent) in Delhi-NCR and Mumbai and dealers and
supermarkets in the region of Delhi-NCR and encompassing zones. Dealer comprises of 4
organizations, they are CV. Organic Merapi (S), CV. Agrosery (S), PT. Indmira (S3) and CV.
Anteronusa (S4). The following stage is to recognize the state of the store network that is
progressing. Vegetable production network execution estimation is acquired by figuring the
execution for each trait got from the writing. Execution measurements is gotten from the book
Supply Chain brilliance: A Handbook for Dramatic Improvement Using the SCOR Model
(Bolstorff and Rosenbaum, 2003). Moreover, the information got amid the execution
estimation is utilized again to ascertain the esteem included at each chain. Esteem added is a
target pointer to survey the accomplishment of a business and show the capacity of the
organization in the formation of significant worth by computing the distinction amongst yield
and info (Guritno and Harsasi, 2013). This research has been done in eight outlets of modern
retailers and three outlets of community markets in Delhi-NCR. The data and information
collected through observation, interviews and survey to 210 respondents in both channels.
Descriptive statistics, correlations and regression done to capture consumer behaviors in this
area.
DATA ANALYSIS
In order to test the validity and reliability of the sample chosen from the population,
Cronbach’s Alpha Test had been applied. The KMO value for the instrument was 0.916,
which is an acceptable good value. The Bartlett’s test of sphericity was used to test the
Aparna Goyal, Sanjeev Bansal and Sanjay Srivastava
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hypotheses and correlation. Significance level chosen was 0.05, at 95% confidence interval. It
also proved the adequacy of sample, as given below:
Table 1 Cronbach Alpha and KMO Test Value
Reliability Statistics
Cronbach’s Alpha No. of Items
0.856 210
Table 2 KMO and Bartlett’s Test
Kaiser-Meyer-Olkin
Measure of 0.901
Sampling Adequacy
Bartlett’s Test of
Sphericity Approx. Chi-Square 53054236
Df 253
Sig. 0
Since the hazard factors were huge in number and between related, factor investigation
done to separate the variables influencing the accomplishment of the undertakings. Primary
Component Analysis was the strategy for extraction. Varimax was the turn technique.
4. RESULT AND DISCUSSION
The strategy used to quantify the execution of vegetable inventory network is Supply Chain
Operations Reference (SCOR), which comprises of three levels of appraisal. Level 1 is the
level related with the kinds of procedures comprising of plan, source, make, convey and
return. In light of the outcomes in conveyance execution and impeccable request satisfaction
traits, organic suppliers have a high level of the non-organic provider. This is because of the
number and sorts of vegetables being requested by the gatherers or brokers straightforwardly
to the provider more than nonorganic suppliers, with the goal that organic suppliers all the
more effectively satisfy the request. The quantity of requests got by organic suppliers' is 20
sorts of organic vegetables, while non-organic suppliers' as much as 30 species with a normal
of 150kgs/day of organic vegetables and 250 kgs/day of non-organic vegetables. For property
arrange satisfaction lead times and store network reaction time, both non-organic and organic
suppliers have a similar esteem, which are individually 1 day. That is on the grounds that
vegetable item is effortlessly broken, so that subsequent to collecting process it should
promptly be sent to the following level to be sent to the supermarket so as to keep the item
new when acquired by buyers. Execution estimation comes about demonstrate the qualities of
conveyance execution on gatherers or facilitate that is 92.23% higher than the 64.39% of non-
organic. At the traits consummate request satisfaction, esteem for organic intermediary
represent 89.64%, which is higher than the level of non-organic agent, is 61.20%. That is on
account of interest for organic vegetables not exactly non-organic vegetables every day by a
normal of 100-150 kgs 200-300 kgs of organic vegetables and non-organic vegetables,
making them simpler to take care of requests organic vegetables. With respect to the trait,
arrange satisfaction lead times and inventory network reaction time of organic and non-
organic items are same
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Table 3 Suppliers of organic and Traditional Food w.r.t. supply chain costs and logistics
Notes: Org veg = Organic Vegetables; Norg veg = Non-organic Vegetables
Table 4 Performance in Poin of Sales (POS)’ Tier
Suppli
ers
Colle
ctors
Supp
liers
Colle
ctors
Delivery Performance
(%)78.63 92.23 41.77 64.39
Perfect Order
Fulfillment (%)73.5 89.64 39.99 61.2
Supply Chain
Responsiveness
Order Fulfillment Lead
Time1 1 1 1
Supply Chain
Flexibility
Supply Chain Response
Time1 1 1 1
Cost of Goods (%) 13.08 64.33 50 79
Total Supply Chain
Management12.11 11.85 2 3
Warranty/ Return
Processing cost2.49 2 2 1.5
Cash –to-Cash Cycle
Time (days)7 14 14 14
Inventory Days of
Supply (days)7 14 14 14
Gross margin (%) 86.92 35.67 50 21
Operating income (%) 75.78 23.82 48 18
Sharehol
der
Supply Chain Asset
Management
Efficiency
Supply Chain Cost
(Rp)
Supply Chain
Delivery Reliability
Internal
Facing
Profitability
Attributes Metrics
Org veg Norg veg
Custome
r Facing
Attributes Metrics Performance
S.1 S.2 S.3 S.4
Delivery performance (%) 65.56 98.26 51 85.04
Perfect Order Fulfillment (%) 65.33 96.26 51 70.94
Supply Chain
Responsiveness
Order Fulfillment Lead Time
(days)1 1 1 1
Supply Chain
Flexibility
Supply chain response time
(days)1 1 1 1
Cost of Goods (%) 92.27 80.39 85.53 79.88
Total Supply Chain
Management Cost (%)2.73 2.73 7.98 13.3
Warranty/ Return Processing 9.28 2 0 8.95
Cash –to-Cash Cycle Time
(days)30 30 30 30
Inventory Days of Supply
(days)30 30 30 30
Gross margin (%) 7.73 19.61 14.47 20.12
Operating income (%) 5 17.24 6.5 6.82
Customer
facing
Supply Chain Cost
(Rp)
Supply Chain
Asset
Management
Efficiency
ProfitabilityShareholder
facing
Internal
facing
Supply Chain
Delivery
reliability
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Table 5 Organically Harvested Vegetables and fruits’ total value
The procedure is modernized as the request got by the representative by means of short
messages benefit (SMS) amid the day and the item should be dispatched at night, with the
goal that the following day purchasers can get new vegetables at the supermarket. The way
toward gathering until the point that conveyance of vegetables to the supermarket is short in
light of the fact that the vegetable is effectively harmed. Extra requests can be met by an
intermediary if the request through the message got toward the evening. Subsequent to
acquiring the request, at that point the agent sends SMS to arrange vegetables on request of
Vegetables Org veg Norg veg
Bayam Hijau (Amaranthus sp) 8,667 9,088
Bayam Merah (Celosia argentea) 15,333 11,755
Caisim (Brassica juncea L) 8,667 11,069
Caisim Baby 3,450 5,014
Kalian (Brassica oleracea) 14,667 9,069
Kangkung (Ipomoea aquatica) 4,333 10,569
Kangkung Baby ( Ipomoea reptana) 7,000 7,069
Kemangi (Ocimum basilicum) 5,167 7,610
Kenikir (Cosmos caudatus) 4,167 5,069
Loncang (Allium schoenoprasum) 5,500 10,555
Pakchoy (Brassica rapa) 8,667 7,069
Pakchoy baby 15,333 8,069
Pakis (Diplazium esculentum) 2,667 5,069
Parsley (Petroselinum sativum) 8,667 12,610
Selada Hijau (Lactuca sativa) 13,333 9,769
Selada Merah 16,333 14,055
Seledri (Apium graviolens) 12,000 10,569
Daun Gingseng (Nothopanax scutellarium) 4,333 11,555
Siomak 12,667 11,055
Cabai Rawit (Capsicum frutescens L,) 5,600 13,555
Terong Lalapan 2,967 6,569
Terong Ungu (Solanum melongena) 7,967 11,652
Timun Acar (Cucumis sativus) 7,950 11,014
Tomat (Solanum Iycopersicum) 5,890 9,527
Tomat Cherry (Lycopersicon lycopersicum) 39,250 12,055
Oyong ( Luffa acutangula) 4,000 9,514
Labu (Sechium edule) 11,450 8,527
Okra (Abelmoschus esculenthus) 11,600 11,082
Pare Hijau (Momordica charantia) 3,950 7,514
Buncis (Phaseolus vulgaris) 7,450 11,388
Buncis Baby 15,260 16,201
Kecipir(Psophocarpus tetragonolobus) 10,950 7,055
Kacang Panjang (Vigna sinensis) 6,250 17,555
Brokoli (Brassica oleracea) 9,500 18,984
Wortel (Daucus carota) 9,000 11,027
Bit (Beta vulgaris) 8,333 8,255
Total Value Added (Rs)
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merchants to ranchers who are their accomplices or regulars. In the framework conveyance
and impeccable request satisfaction execution, the execution of S.1, S.3 and S.4 are still not as
much as the set targets while S.2 has hit the objective. This is on the grounds that the requests
got by S.2 is not as much as the others, so it is anything but difficult to satisfy the request.
With respect to the metric request satisfaction lead time and production network reaction time
got by the genuine esteem is equivalent to the objective of 1 day. This is on account of items,
for example, vegetables which is effectively broken with the goal that the way toward reaping
until the point that conveyed to supermarkets ought to be in brisk time. Also, after the
vegetables being gathered, it must be bundled and conveyed keeping in mind the end goal to
remain crisp when purchasers get it (Yandra et al., 2007). At the cost quality, the estimation
of the hole got from the diminishment in the estimation of the objective with the genuine
expenses caused to do business ought to be negligible (Guritno and Harsasi, 2013). At the end
of the day, the expenses acquired by the merchant ought to be not exactly or equivalent to the
objective. Negative estimations of the outcomes got demonstrated the expenses acquired by
the dealer more than the set targets (Lambert and Cooper, 2000; Yandra et al., 2007). For
metric cost of products, just S.4 that can accomplish the objective while the aggregate
inventory network administration measurements of cost, there are 2 brokers accomplish of S.1
and S.2. In the metric money to money process duration and stock days of supply, four
brokers can achieve the objective of 30 days as it identifies with the agreement with the
supermarket as far as installment conveyed items to the merchant. The installments are then
used to maintain the business back.
5. EXAMINATION AND INTERPRETATION
The study revealed that organic vegetables consumers from both channels, modern retailers
and community markets are significantly indifference in term of their characteristics.
Consumers of organic vegetables dominated by women shoppers (83.3%) in its younger age
of 30-40 years old (58.6%) who had their high education (Bachelor and more). In India,
generally about 50% of people's income goes to food (BPS, 2014). In this finding, among the
respondent consumers, 10% of its spending goes to organic vegetables. The frequency of
organic vegetables buying was 4-6 times per month for 43.3% of the consumers, 39% of them
have their buying more than 6 times and only 17.7% less than 4 times a month. This is
considerably rational since vegetables should be consumed within days to have its freshness
intact. People shifted to organic vegetables consumption mostly because they want to have a
healthy life (81.4%). In consuming organic vegetables, the consumers (93.3%) mostly
shopped in modern retailers, but it was interesting to know that from the same consumer
respondents, some of them also went to community market (42.4%). They chose modern
retailers because they were interested in the quality of the products (44.4%), location (26.0%),
and the products fits their needs (17.3%); while consumers that chose the community market
mainly because they were interested in doing direct buying from the local farmers (39.3%),
influenced by friends and family (21.3%), and the products suit their needs (16.9%). Both
consumers of modern outlets (84.2%) as well as community market (66.3%) got their
information about organic vegetables mainly from friends and families in their decision
making to buy organic vegetables; but it was also noted that the online social media only
affected consumers of community market (25.8%). This means that producers of community
market relatively succeeded had done community building that.
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Figure 1 Normality test showing normal distribution and assumption
Residual normality test used Kolmogorov-Smirnov turned out that the normal assumption
had been also met (0.286 > 0.05). Autocorrelation test was done with a run test and resulted
that the significance value was greater than 0.05 (0.679 > 0.05) indicating that the data
used were not auto correlated. Based on the result of the following scatter-plot, it was no
heteroscedasticity. The test also done using Park test method, which resul ted in the
s ignif icance value, generated from variables of product, price, place and promotion that
had a value greater than 0.05, meaning that in the data used there was no heteroscedasticity.
Based on the results of the independent variables had Tolerance value >0.1 and VIF<10
indicating that in the independent variables there were no multicollinearity. Other than that,
the independent variables had linearity value less than 0.05 (0.000 <0.05), so this value
indicated that all independent variables met the assumption of linearity. The significant value
of F test was smaller than 0.05 significance level, so the linear regression model which was
estimated, all the independent variables i.e. product, price, place, and promotion were
simultaneously explaining the dependent variable of buyer's purchase decision. Result of t test
of the independent variables exhibited that there were two significant variables of marketing
mix in the model i.e. product and price. But, the marketing mix variables of place and
promotion, were not significant at the confidence level of 95%. Figure 2: Scatter-plot showing
regression coefficient dependent on consumer purchase of organic vegetables
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Table 6 Coefficients of Regression for 4P’s in organic vegetables
Model Unstandardized
Coefficients
ᵦ Std. Error
(Constant)
Product
Price Place
Promotion
-0.6 1.014
0.282 0.05
0.304 0.114
0.042 0.112
0.096 0.093
Model Standardized Coefficients
ᵦ t Sig.
(Constant)
Product
Price Place
Promotion
-0.591 0.555
0.434 5.633 0
0.187 2.674 0.008
0.027 0.371 0.711
0.063 1.037 0.301
6. CONCLUSION AND RECOMENDATION
Regarding the decision to buy that affected by marketing mix, the regression result shows that
organic vegetables consumers in Delhi-NCR only significantly affected by product and price
matters. This brought about the modern outlets having its advantage in its products, but the
community market having its advantage in term of prices. The community market system has
its strength in pricing because it allows farmers to get higher prices compare to prices they get
when supplying modern retailers; but at the same time consumers can benefit lower prices
compare to modern outlets can offer. The consumers agreed that their consumption of organic
vegetables based on the product quality, function, better taste, free of unhealthy chemical
matter, organic certified, and overall satisfying. Aside from product mix, they also agreed that
the prices of organic vegetables were worth the product qualities. Regarding the decision to
buy that affected by marketing mix, the regression result shows that organic vegetables
consumers in Delhi-NCR only significantly affected by product and price matters. This
brought about the modern outlets having its advantage in its products, but the community
market having its advantage in term of prices. The community market system has its strength
in pricing because it allows farmers to get higher prices compare to prices they get when
supplying modern retailers; but at the same time consumers can benefit lower prices compare
to modern outlets can offer. The consumers agreed that their consumption of organic
vegetables based on the product quality, function, better taste, free of unhealthy chemical
matter, organic certified, and overall satisfying. Aside from product mix, they also agreed that
the prices of organic vegetables were worth the product qualities.
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Table 7 Characteristics of the Respondents
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