CONSUMER PERCEPTION TOWARDS ORGANIC FOOD

A Project Work Proposal

By

Name: Laxmi Bohara

Kailali Multiple Campus, Dhangadhi Kailali
T.U. Regd.no: 7-2-327-0758-2016
Examination Roll No.: 703270471
Program / Year: BBS 4th Year
Group: Marketing

Submitted to:
Faculty of management
Tribhuvan University

Kathmandu

In partial fulfillment of the requirement for the Degree of Bachelor of Business Studies (BBS)

Dhangadhi,Kailali
Dec, 2020
Table OF Contents
1. Background of the study

2. Statement of the problem

3. Objectives of the study

4. Significance of the study

5. Review Of Literature

6. Research Methodology

7. Limitation of the problem

 1. Background of the study
Organic food, also called green food refers to foods that are safe to be consumed, are of
fine quality, concerned with humane animal treatment, nutritious foods and are produced under
the principles of sustainable development (Liu, 2003).

Human concern towards environment is increasing and they are becoming more serious on how
to convert it into green environment and tend to seek green products. The demand for organic
food products is dramatically rising as the population becomes more affluent and more educated
about health and wellness issues, leading to greater consciousness in food choices. Organic food
is perceived to have better taste than conventional food and it is also perceived to be more
environmental-friendly. Consumers is taking organic food as a better lifestyle choice.

Results of studies confirmed that consumers have positive attitudes towards organic products
where one of the most common mentioned reason for purchasing organic products was it is
perceived as healthier than conventional alternatives (Chinnici et al., 2002; Harper and
Makatouni, 2002). Consumer attitudes to organic food have also been explored in a small
number of qualitative studies (Nielsen at al., 1998; Torjusen et al., 2001). Consumers do not
always buy sustainable products as consequences of environmental concern or to benefit the
community or due to personal beliefs but mainly to give priority to health, to be part of the social
group, to distinguish from others and to accomplish the need to try out new technologies
(Vermeir and Verbeke, 2004).

2. Statement of the problem

Organic food has entered the global markets and rapidly gainedmarket share. Generally, in
purchasing organic product consumer passes through five steps: Need recognition, Information
search, evaluation of alternatives, purchase decision and Post purchase behavior. The consumer
may reflect satisfaction or either dissatisfaction from the use of a product.

Many studies indicated that one major factor that considered being the barrier to organic food
consumption is due to its high price and lack of confidence in its status, but there are some other
factors too that might considered as barriers to organic food consumption among consumer. For
instance, knowledge on organic food as well as action taken by the government either to inform
or to create awareness has not reach the satisfactory level in encouraging sustainable
consumption with organic food.

Therefore, knowing how consumer perceived organic food product by understanding the reasons
of buying would probably help the marketers of organic food to establish a proper
communication message. Other factors that affect in consumer buying decision for organic food
are perceived quality, risk, demographic factors like: age, gender, income, education and
purchase intention.

In addition, consumer thought that organic food had to be eaten promptly because it spoiled
faster than conventional food. Limited availability of organic food was also an important barrier
to purchasing organic food. Consumers indicated that even if they wanted to buy organic food,
they could not find it easily.

3. Objectives of the study

The main objective of the study is to understand attitude of consumer on their perception towards
buying organic food products. The other aim of this study is:
 To analyze consumer propensity towards a healthy lifestyle.
 To explore the core motivation values that underlie consumers purchasing decision of
organic food.
 To identify factors that might influence purchase intention of organic food among
consumers.

4. significance of the study

Food consumption patterns are changing as a result of health and environmental issues. Interest
in organically produced food is increasing throughout the world. We have gone through various
studies and find out that organic agriculture is one of the sustainable agriculture approaches that
are being promoted and practiced extensively in the field.

There are several main motives for purchasing organic foods: the expected health and
environmental benefits, the support of local or small farmers, the attraction of fashionable
products, and the search for fresher and tastier products. Health and environmental benefits have
been reported as a main motive for purchasing organic foods by most studies. Even though
organic foods do not completely lack pesticide residue because of the pollution in the air and
environment, they are safer than conventional foods that get pesticides directly (Dangour et al.
2009).

The second important motive to purchase organic foods is that the consumers were considering
that purchasing organic food products can support local and small farmers. The third motive to
purchase organic food is the consumers’ search for new trends of healthy food products. The
fourth motive is related to organic attributes including fresher and tastier food (i.e. vegetables).

This study is more focused on the consumers who purchase organic food products. In this
research we try to find out the factors that influence consumer, in making purchase decision
regarding organic food and how they perceive it. Since today’s consumers are more health
conscious, this research helps to provide the basic information regarding how they make their
consumption decision. It also focuses on the attitude of consumer. Similarly, this research helps
to understand the changing trend among consumers regarding their consumption behavior.

5. Review Of Literature
Research related to consumer attitudes and preferences for organic products is very
imperceptible (Chinnici et al.,2002). In earlier research most respondents are described as white,
female, professional and younger (Harris, 2000), however these characteristics cannot be used
across all studies as the responds towards organic food products changes according to countries
background, level of awareness, product availability and attitude changes.Studies have found that
health is strongly connected to the notion of organic food and that it is the strongest purchasing
motive when purchasing organic food. Organic food is also perceived to have better taste than
conventional food and it is also perceived to be more environmental-friendly (Aertsens et al.,
2009). The fact that consumers perceive organic food as more environmental-friendly can be
connected to the value of universalism and it is said to be the dominant value when consumers
purchase organic food (Thøgersen, 2007). According to Aertsens et al. (2009) many studies have
identified a clear connection with the importance consumers attach to the environment and their
attitude based on organic food products.

.
6. Research Methodology
 Research Design
Both primary and secondary data has been chosen for the study. For secondary data collection;
books, articles and literature reviews, have been relied upon. The primary data is collected
through self administered questionnaires which were distributed to 110 respondents. Simple
random sampling technique is followed when choosing the respondents.
  Research Instrument
The instrument used in this research for collecting primary data is questionnaire. There were
simple and understandable questions asked; and that were directly linked to the objectives of this
research. Total 30 questions were included in the questionnaire. Likert scale is used to measure
independent variables. Respondents were allowed to select only one answer for each question in
the questionnaire.

7. Limitation of the study

The major limitations of the study have been listed below:
 Research will be based on primary data to be collected through the questionnaire and in
this method the respondents might be hesitant to give authentic and needed information
as much as they are expected to.
 The non-participant observation method especially by analyzing qualitative information
from journals, books, magazines etc. will be used for secondary data collection which
will slightly reduce the objectivity and the accuracy of the information.
 There are time and resource constraints, as the study has to be completed within limited
timeframe.