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Research On:

Consumer purchase behaviour


towards organic food products in India
Under the Guidance of:Dr.RatnaPaluri

Submitted By
AakashGehlot (19020741066)
AdilHussain (19020741067)
Aishwarya Banerjee (19020741068)
Ayan Bhunia (19020741075)
Glenda Clements (19020741080)
KanikaNema (19020741089)
KartikBhat (19020741091)
RohanGedam (19020741111)
SwapnilSamant (19020741112)
VishwamKabra (190207410128)
1. Introduction

In the last few decades, the way of food consumption in India has undergone a major
transformation with changing food habits, lifestyle, income and many other factors.
Focus has now shifted more towards leading a healthy life. Consumers now are more
vigilant towards the ingredients used and the way food consumer is processed.
Based on this perception shift, even the farmers have evolved in their methods
adopted for producing food. Although there is a gradual growth in the organic food
market in India, the productivity and awareness is not so high and is a reason for
concern.

1.1. Research Gap

The research paper we referred, mentioned factors affecting consumer behaviour of organic
food products, in these papers intensity and gravity of factors related to consumer
behaviour towards organic product is not covered which we research in our paper.

We considered various factors which affect the consumer behaviour towards organic food
market and gathered data related to these factors and formed a linear regression model to
find the most influencing factors.

Indian scenario of consumer behaviour towards organic food products is given emphasis in
our research and the survey is conducted as per the Indian market.

1.2. Objectives of the Study


The specific objectives of our study are

1. To gauge the existing awareness about the organic food products among
Indian consumers
2. Analyzing the factors that drive Indian consumer behaviour and attitude
towards consuming Organic food products

2. Literature Review

2.1 Definitions and Concepts

Organic Food-Organic foods are those that are grown without the use of any artificial
fertilisers and pesticides. It is environmentally friendly and is safe for the ecological system
as it saves water, reduce soil erosion and increase soil fertility.Organic food products may be
certified from USDA (United States Department of Agriculture)

Consumer Behaviour- Consumer behaviour is the study of how individual customers, groups
or organizations select, buy, use, and dispose of ideas, goods, and services to satisfy their
needs and wants. It refers to the actions of the consumers in the marketplace and the
underlying motives for those actions
Attitude - Consumer attitude basically comprises of beliefs towards, feelings towards and
behavioral intentions towards some objects. Belief plays a vital role for consumers because
it can be either positive or negative towards an object.

2.2 Evolution of key concepts

This paper includes and analyzes the propositions of published research papers on consumption of
organic food products. We identify several themes that reflect the different rationales used by
consumers when purchasing organic food products. The literature clearly states that the word
‘‘organic’’ has multiple meanings, that consumers of organic foods are not homogeneous either in
demographics or in beliefs, and that further research could help better describe the various
constituencies that are often lumped together as ‘‘organic food consumers’’. The organic and broader
food industries must better understand the variety of motivations, perceptions, and attitudes
consumers espouse regarding organic food products and their consumption, for their own benefit, as
well as those of other stakeholders of organic food marketing, are to be best served. We conclude
with implications and suggestions for further research.

Indian consumers have grown their interest towards organic products. Evolution of organic product in
people’s thought process is getting enhanced.

The rising popularity of organic foods – a multi-billion dollar global industry with accelerating growth –
raises important questions of interest to governments, growers, distributors, retailers, industry
planners, and marketers. Among those questions are:

1. Who is the organic food consumer?


2. What are the forces and factors driving organic food consumption?
3. What will the organic market look like in the future?
4. What, if any, policies should be implemented to abet this market and consumer welfare?

The ultimate purpose is to get adequate answers for the above questions. Let’s find out the same.

These questions can be answered only by the consumers having recognition of the complexity and
diversity of decision making for organic products. One should understand the actual meaning of
organic agriculture and food industry to initiate learning and moving further organic food.
Consumer’s decision over purchasing organic products are completely subjective and their perception
towards organic products.

The ultimate target here is to achieve sustainability across the entire supply chain network. The
stakeholders at each stage - Organic food cultivators, middle man/ retailers, marketing sectors,
special interest groups, fund investors, end consumer/ customer, are aligned to create transparency
in the flow of information reflecting consumer preferences and sustainable value addition.

The market share by volume of organic farming is relatively very small as compare to overall farming
share. The progressiveness is the least in OECD countries even though the organic farming is more
efficient in terms of limited resources. The overall growth is on a rise as United States along with
Scandinavian countries are relatively inclined towards promoting organic farming at larger scale. The
incentives and policy reforms by government bodies across the globe are motivating organic farmers
to expand their horizons with complete awareness. The year on year growing demand of organic food
makes the perception of organic food consumer more significant than ever. The consumer
approaches towards health, hygiene, awareness, sustainability, physical fitness are to be quantified.
The evolution of value based enterprise with the vision of sustainability is future’s demand. The world
today comprises of educated and ethics based ideologies working hard to achieve sustainability and
circular economy with impactful growth. The digitalization and data transparency is enhancing the
voice of customers at individual. The platform of social media has evolved to such an extent that can
create or destroy organization’s values and reputation within a blink of an eye. The customer’s
demand for more attributes in organic food is not a far cited scenario. The future of transparency of
source, resources, value aided justification and compliance proof will drive the demand for organic
food.

The research study was to find factors driving organic food demand, the dynamics of consumer
preference, the evolving market-mix, the new disruptive farming techniques of organic food
cultivation, the sustainability factor, etc are some research pre-thinks. The research is multifold with
wide aspects taken into consideration with implosion towards single entity. i.e., Consumer preference
evolution. The evolution may be the snowball effect of societal perspective or psychological impact of
current state of crisis the world is facing right now. Database used to get citations is MDPI.com. The
citations were related to organic food published in last 5 years. We narrowed our focus to understand
consumer through extensive dynamic survey. The survey was conducted in the region with industries
specifically promoting organic farming techniques. The market demand is to be triggered by creating
awareness and escalating the spending to create sustainable economy of scale.

Antecedents of consumers' citizenship behaviour towards organic foods

Organic food product consumer thinking in the way to protect the environment by using recyclable
products.Untrsutedfood having antibiotics, chemicals and pesticides not only harm an individual
health but also have a huge impact on the environment. This is one of the important factors of our
study. Organic food benefits environment, health and lifestyle of an individual. The environment factor
is the most influencing factor which provoke number of people towards organic product market. Yearly
increase in the market of organic product is self sufficient in confirming the same. Hence, many
consumers believe that they have their responsibility towards their environment. Consumers can also
access the information about the products through QR codes and on the sites of seller and be aware
about the product ingredients and making, it also informed about the afterlife of the product. It helps
seller to get promoted as well and get feedback too.
The study investigates the factors affecting the nature of the consumer related to these additional
features that organic food producer with their products.
This Study actually observe two major questions arose for research. 1st people of country’s behaviour
to explore the antecedents. 2nd is to examine the predecessor of social consumer personal relevance
and venture identify. This operation of making observations is based on reasoning on the point
because it makes into one inside and out-side factors within a single framework. The framework can
then be used to give an account of how consumer social take a chance seeing who a person is and
personal connection are affected.
This is important knowledge because it coming after effects person getting support or goods person
having rights in the nation behavior on grouping networking 1 building lands. The results make ready
managers of necessary part of a system food out-lets with useful knowledge to support the voluntary
2 grouping thing by which something is done behavior of their persons getting support or goods. as an
outcome of that, the purpose of this work space is to better based on reasoning and managerially get
through knowledge of the events before-hand of person getting support or goods nation rights
behavior and the events before-hand of consumer social undertaking seeing who a person is and
personal connection. This is specially in the Context of person getting support or goods nation rights
behavior via grouping networking sites within the Taiwanese necessary part of a system food market.
The relationships was looking at cover argument quality, source Credibility, social comparison, mind
and physical qualities attraction, meeting thing by which something is done Engagement, self-
determination, consumer social undertaking seeing who a person is, and personal connection. This
work space makes three contributions to the operation of making observations about the thing got for
money of necessary part of a system food.
Conceptual Background
This part presents and makes certain, clear the related ideas of a quality common to a group that
power over users' decisions to thing got for money necessary part of a system food. The first of these
having great effect ideas of a quality common to a group, argument quality and starting point
Credibility, are connected because users get support from both when they get to own necessary part
of a system food. Argument quality is formed as "the able to get others to do power of Arguments
fixed in a knowledge-sorting note"

This workspace has had a look for users' power of being conscious of so that managers of necessary
part of a system food out-lets can chief place on the events before-hand of person getting support or
goods nation rights behavior that power over users' personal opinions. getting something for money
behavior becomes steadier once firms make into one these events before-hand in the selling buying
process. based on the qualities of person getting support or goods nation rights behavior (statements
of good words for, take-back, and helping other people getting support or goods), firms should chief
place on users' power of being conscious of and keep in order, under control news given through
grouping thing by which something is done. They should purposely make come into existence a highly
able to have belief in general condition for having the same types.

The time constraint didn’t allowed us to extensively reiterate the survey outcomes. The progressive
stage of changing consumer behaviour preceding the awareness of research deliverables was not
captured. The outcome parameters were not used as assumption tool for vertical deployment of
deliverables across larger mass. The dynamics of this disruptive world has led to specialisation of
consumer demand matrix. All predictability tools relying on probabilistic approach are inaccurate with
different environments (situational factors) regarding social, legal, economic, political, and
technological aspects. The uncertainty in this research without validating the time usage and
externalities will be significantly unrealistic. The future research with exploring outliers in terms of
negating the factor from cluster variables final outcome is create more feasible tool and help us build
a more functional and dynamic alternative models.

The research study was to find factors driving organic food demand, the dynamics of consumer
preference, the evolving market-mix, the new disruptive farming techniques of organic food
cultivation, the sustainability factor, etc are some research pre-thinks. The research is multifold with
wide aspects taken into consideration with implosion towards single entity. i.e., Consumer preference
evolution. The evolution may be the snowball effect of societal perspective or psychological impact of
current state of crisis the world is facing right now. Database used to get citations is MDPI.com. The
citations were related to organic food published in last 5 years. We narrowed our focus to understand
consumer through extensive dynamic survey. The survey was conducted in the region with industries
specifically promoting organic farming techniques. The market demand is to be triggered by creating
awareness and escalating the spending to create sustainable economy of scale.
2.3 Hypothesis Development

2.3.1 Hypothesis:
We are considering 6 major factors which will influence consumer behaviour towards purchase of
organic food.
1. Health
2. Accessibility
3. Economic Factors
4. Marketing
5. Consumer Attitude
6. Social Factors

2.3.2 Description of the hypothesis

H1. Health consciousness is one of the major drivers to consume organic food.

1. Health Factors:
Major studies show that health is the primary reason why consumers purchase organic foods. Organic
food being made without using pesticides and chemicals attracts health conscious people towards it.
It is one of the major factors contributing towards purchase of organic food.

H2. Availability of organic food has significant Influence on organic food purchase.

2. Accessibility:
There are more chances of consumers purchasing foods that are readily available and near to them.
Consumers want more convenience and they are more inclined to buy food at nearby stores and
supermarkets. After evolution of E-Commerce more people prefer to buy food from online websites.

H3. Price of the organic product has significant effect on consumer purchase
behaviour

3. Economic Factors:
Price is one of the major factors while buying any products. More people want to buy food which is
cost efficient and economical. Since most organic foods don’t use pesticides and chemicals, they are
expensive in nature. It adversely affects the consumer behaviour.

H4. Marketing of organic products has significant Influence on organic food purchase.

4. Marketing:
Marketing of organic products is needed to increase the awareness about organic food among
consumers. Most consumers don’t know what are organic food brands, ingredients used in them.
Advertising organic food using both traditional and digital marketing mediums are necessary to
increase the awareness.
Several factors under marketing:
· Athlete/Celebrity endorsement
· Packaging
· Brand of organic food
· Information about ingredients mentioned on cover
H5. Attitude of consumer has major role to play in consumer purchase behaviour
towards organic food

5. Attitude:
The consumer attitude towards organic food plays a major role in influencing them towards purchase
of organic food. Attitude can be negative or positive.
Some negative attitudes:
· Organic foods are overrated
· Normal food tastes better than organic food
· Organic food being healthy is a myth
Some positive attitudes
· Organic foods are environment friendly
· Organic food consumption will help local farmers

H6. Social factors have significant Influence on organic food purchase.

6. Social Factors:
Consumers also get influenced to buy organic food by their friends, relatives and family members.
Word of mouth publicity and recommendations by dear ones has huge impact. Suggestion given by
local store owner where the consumer usually buys food products also has good impact.

Model:
3. Methodology

3.1. Population Profile


The survey questions were floated to a population in Nashik and some metro cities outside
Nashik like Kolkata, Mumbai and Chennai. The targeted population had a mix of homemakers,
working professionals and students of a diverse age and income group. The method of floating the
survey form was through personal invitations. This was done to ensure that we could control the
income group and family structure of our targeted population for the survey. Majority of the individuals
in a family structure or even singles beyond a certain age prefer the consumption of organic food to
lead a healthier lifestyle, whereas singles who are relatively younger prefer having junk food and not
much inclined towards organic food.

3.2. SampleProfile
The number of responses we received from the questionnaire sent out for our survey was 83.
Based on the responses we captured, our sample population consists of respondents who are
financially independent and of the age group 20 to 30 years. These are the people who are more
inclined towards healthy options in food. Although some responses were received from respondents
outside this age group, these were not considered in our study as they were significantly few.

3.3. Questionnaire development


Various research papers have proposed that consumer behavior is impacted by various
factors such as accessibility, attitude, economic, health, marketing and social factors. The
questionnaire used to capture data uses variables related to the identified factors. Some of the
variables used to measure consumer perception are attraction towards organic food, mode of
purchasing, price worthiness, health benefits, marketing of organic food, availability in the market,
palatability, food safety, and frequency of purchasing, willingness to switch to organic alternatives.
The given variables are identified based on the ones advocated by Chiu et al. (2018), Oroian et al.
(2017) and Hughner et al. (2007). Past research has shown that demographic factors like age, gender
and profession play an important role in determining the behavior of consumers towards organic food
alternatives and as such related questions have also been included in the questionnaire.

3.4. Construct Description


The questionnaire consisted of 20 questions out of which first three are unnumbered and
collects information regarding the age, gender and occupation of the respondent. This is followed by
seventeen numbered questions in the following structure -
For questions numbered 1-6, 8, ,13(d), 14,15 and 16 , a five-point Likert like scale was used
for measuring the consumers willingness towards purchasing organic food products. Response
options ranged from Strongly agree (5) to Strongly disagree (1) . For Question 7 and 13(a,b,c,e) The
response options ranged from Strongly agree (1) to Strongly disagree (5) .
FACTORS QUESTIONS SIGNIFICANT/ NON SIGNIFICANT
RELATIONSHIP

Accessibility 01 Non Significant

Attitude 06 Significant

Economic 02 Insignificant

Health 03 Significant

Marketing 06 Non Significant

Social 03 Significant

4. Data Analysis
5. Findings of the Study

5.1 Hypothesis Testing

H1. Health consciousness is one of the major drivers to consume organic food.
After results of regression analysis, Health has R square value of 0.173, significance F 0.000088 and
p-value 0.0136 which is significant i.e it has some impact on consumer behaviour.

H2. Availability of organic food does not have significant Influence on organic food purchase.
Accessibility has R square value of 0.0100, significance F 0.36 and p-value 2.38E-23 which is very
insignificant i.e it has no impact on consumer behaviour.

H3. Price of the organic product does not have significant effect on consumer purchase
behaviour
Economic factors of customers have R square value of 0.0140, significance F 0.285 and p-value
7.789E-25. Since our significance F is greater than 0.05, it has no impact on consumer behaviour.

H4. Marketing of organic products does not have significant Influence on organic food
purchase.
Marketing has R square value of 0.0303, significance F 0.1150 and p-value 7.659E-21 which is very
insignificant i.e it has no impact on consumer behaviour.

H5. Attitude of consumer has major role to play in consumer purchase behaviour towards
organic food
Attitude of customer has R square value of 0.295, significance F 1.083E-07 and p-value 0.000427
which is significant i.e it has some impact on consumer behaviour.

H6. Social factors have significant Influence on organic food purchase.


Social factors have R square value of 0.322, significance F 2.165E-08 and p-value 8.885E-06 which
is significant i.e it has some impact on consumer behaviour.
6. Conclusion
Our research which was mainly restricted to a younger age group of people under 30 years of age
further reaffirmed that although there is an awareness among the Indian consumers, the consumption
rate is not high. This is because of a lower awareness among consumers in early 20’s who perceive
Organic food as an overrated variant of their normal consumption items. Also, even though those in
late 20’s are more health-oriented, they have a trust issue. As gathered from our data, we have seen
an unusual trend wherein more pricing led to less consumption. This can mean that the consumers
are perceiving organic food offered at low prices as inferior in terms of quality and benefits.
Alternatively, we can say that Organic Food products, by default, is considered to be a high priced
item.
Another observation made was in terms of marketing. We found that consumption trend is indifferent
to concerns related to collective marketing factors like packaging, advertisements, celebrity
endorsements etc.

6.1. Limitations of the Study


We had a limited sample size with a lower diversity in terms of age, income group and especially
regions. The survey questions had to be limited keeping in mind the reach of it. As a result, some
factors like attitude, economy, social and awareness were under-explored.

6.2. Scope for Further Research


With a larger sample size and more question, a better profiling of the respondents can be done. Also,
based on sample profile multiple sets of survey questions targeting the same factors and relevant to
the profile.

7. References
• Camelia F. Oroian, Calin O. Safirescu, RezhenHarun, Gabriela O. Chiciudean, Felix H. Arion,
Iulia C. Muresan and Bianca M. Bordeanu, (6 September 2017). ‘Consumers’ Attitudes
towards Organic Products and Sustainable Development: A Case Study of Romania’
• Chih-ChingTeng andYu-Mei Wang (2 March 2015). ‘Decisional factors driving organic food
consumption: Generation of consumer purchase intentions’.
• Gil, J.M.; Gracia, A.; Sanchez, M (2000). ‘Market segmentation and willingness to pay for
organic products in Spain. Int’. page 207–226
• P.A. Ratna and SaloniMehra, (2015). ‘Exploring the acceptance of e-learning using
technology acceptance model among university student of India’, Vol. 5, No. 2.
• Rene ́e Shaw Hughner, Pierre McDonagh, Andrea Prothero, Clifford J. Shultz II and Julie
Stanton, (2007). ‘Who are organic food consumers? A compilation and review of why people
purchase organic food’.
• Safdar Muhammad,EihabFathelrahman and Rafi UllahTasbihUllah, (23 August 2016). ‘The
*

Significance of Consumer’s Awareness about Organic Food Products in the United Arab
Emirates.’
• Saloni Mehra and P.A. Ratna, (2014). ‘Attitude and behaviour of consumers towards organic
food: an exploratory study in India’ Vol. 7, No. 6.
• Tao‐Sheng Chiu, Jaime Ortiz, Wen‐HaiChih, Li‐Chin Pang and Jiun‐Jen Huang (23 May
2019) ‘Antecedents of consumers' citizenship behaviour towards organic foods’.
• Jasmina Mangafić, Amila Pilav-Velić, Danijela Martinović, Merima Činjarević. "Consumer
Innovativeness and Organic Food Purchase Intentions" , Emerald, 2017
• Geraldene Fynn-Green, Roger B Mason, Andrea Giampiccoli. "Factors That Influence
Perceptions and Purchasing of Organic Produce by South African Consumers" , International
Journal of Customer Relationship Marketing and Management, 2019
Annexure

Age *
_____________
Gender *
• Male
• Female
What do you do? *
• Student
• Professional
• Homemaker
• Retired
• Other

Q.1 How likely are you to suggest a friend to consume Organic food product? *
1 2 3 4 5
Least Likely Most Likely
Q.2 On a scale of 1-5 , to what degree are you attracted in consuming Organic Food
Products? *
1 2 3 4 5
Least Likely Most Likely
Q.3 On a scale of 1-5, would you prefer purchasing Organic Food Products Online *
1 2 3 4 5
Least Likely Most Likely

Q.4 On a scale of 1-5, would you prefer purchasing Organic Food Products at Retail Outlets *
1 2 3 4 5
Least Likely Most Likely
Q. 5 Based on word -of-mouth publicity, on a scale of 1-5, how likely are you to be
influenced in purchasing organic food products. *
1 2 3 4 5
Least Likely Most Likely
Q.6 On a scale of 1-5, would you prefer organic food products over normal food products
produced using fertilizers & pesticides? *
1 2 3 4 5
Least Likely Most Likely
Q.7 On a scale of 1-5, does price bother you while buying any organic food? *
1 2 3 4 5
Least Likely Most Likely
Q.8 On a scale of 1-5, do you think organic foods are healthier compared to inorganic foods?
*
1 2 3 4 5
Least Likely Most Likely
Q.9 Do you think organic food products are tastier compared to inorganic food products *
• Yes
• No
• Don't Know
Q.10 Do you think organic foods are costlier compared to inorganic foods? *
• Cheap
• Costly
• Don't Know
Q.11 Do you think organic foods should be marketed more? *
• Yes
• No
• Don't Know
Q.12 Select availability of organic foods.*
• Readily Available
• Waiting Time is More
• Not available
Q.13 What concerns you most when purchasing organic food products? (1 - Least Likely,
5 - Most Likely) *
1 2 3 4 5

Distrust about certifications

Insufficient Information

Packaging

Athlete endorsements encourage my purchasing decisions

Brand is an important factor in my purchase decision making


Q.14 On a scale of 1-5, according to you how safe are organic food products for
consumption? *
1 2 3 4 5
Least Healthy Most Healthy
Q.15 How frequently have you purchased organic food products in last one year? *
• Never
• Rarely (less than 5 times)
• Sometimes (6- 10 times)
• Significant times (11-20)
• Very Frequently (More than 20)
Q.16 "Organic food products are overrated”. What is your opinion?
• Strongly Agree
• Agree
• Neutral
• Disagree
• Strongly Disagree
Q.17 How likely are you to buy the organic alternative of your regular food product if
offered at same price?
• Least Likely
• Less Likely
• Likely
• Definitely