A Empirical Study on consumer awareness and consumption intention towards organic products.

A EMPIRICAL STUDY ON CONSUMER AWARNESS AND CONSUMPTION

INTENTION TOWARDS ORGANIC PRODUCTS
UMA. K
Assistant Professor & Research Scholar
Pooja Bhagavat Memorial Mahajana Education Centre, Mysuru.
Dr. RECHANNA
Associate professor & Research guide
JSS College for Women, Saraswathipuram , Mysuru.
ABSTRACT:

Through the recent development concern in food security and environmental

protection, the organic food market in India develops fast. Being free of chemical fertilizers,
patricides and preservatives, organic food symbolizes a type of food that can free people from
the threat of food poisoning or any other harmful effects arising from excess or illegal uses of
harmful chemical in food. Consumers are pretty more concerned about the food they
consume. They tend to consume food that is nutritious, healthy, safe and friendly to the
environment and animals. Thus, the green or organic concept is now steadily being spread
among consumers in harmony with the sustainability and conservation of agricultural
development. Green foods refer to foods that are safe for consumption, fine in quality and are
nutritious in meeting the principle of sustainable development. There is an imbalance
between increasing need for organic food and little regulated organic certification system.
This paper focuses on the consumer’s awareness and consumption intention towards organic
foods. Samples of 50 respondents were used in the questionnaire. The results show that there
is a significant difference among the respondents’ awareness towards organic food products
and age, education level, family type and income. The respondents also indicated that green
food is not only about being organic but it also includes the concept of food safety, health
issues, environmental hazard as well as animal welfare. Thus, most of the respondents were
aware of the organic concept which is a strong indicator of consumers’ intention to go green
in organic food consumption.

Key words: Organic consumers, Awareness, Consumption intention, Green food or organic
food, sustainable organic agriculture.

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 A Empirical Study on consumer awareness and consumption intention towards organic products.

INTRODUCTION:
The consumer market for organic food products in India is still at its early stage of
development and there are many barriers to overcome, related to both supply as well as
demand for organic produce, in order to develop domestic organic food market. Thus, a clear
understanding of what factors influence and motivate the consumers to purchase organic
products in these adolescent markets may help both consumers of organic interest and
marketers of organic food. It may also help the government to design strategies for consumer
education on the benefits of going organic. This study aims at investigating consumers’
awareness towards organically produced food products. The study employs the Frequency
and percentage to identify the most likely gender, age, occupation, education, health,
environmental, convenience price, and family type demographic factors affecting consumers’
purchase decisions towards organic products in the food market place.

Definition of organic food products:

Organic is defined as products grown or processed in accordance with the standards
set out by USDA’s National Organic Program (United States Department of Agriculture,
2002). There is no common definition of “organic” due to the fact that different countries
have different standard for products to be certified “organic”. In simplest words, organic
foods are minimally processed to maintain the integrity of the food without artificial
ingredients, preservatives or irradiation. Organic products are obtained by processes friendly
to the environment, by cultivation techniques that consider both the attributes of the final
product and the production methods (Chinnici et al., 2002).
Organic foods are items that are produced, processed and packaged without using
chemicals including items such as Wheat, rice, maize or corn, Finger millet, ragi, Siri Dhanya
like Foxtail (Navane), Barnyard (Oodalu), Araka (Kodo), Little (Samai) and Brown Top.
Whereas Pearl (Sajje), Finger (Ragi), Proso (Baragu), Great Millet (White Jowar) and Corn
classified as neutral grains, having a little lesser fiber and other nutrients. The millet foods are
considered as miracle grains, that’s why we call them “Siri Dhanya”, millets. Vegetables,
fruit, milk, meat and cotton etc. Generally speaking, Organic meat, poultry, eggs, and dairy
products come from animals that are given no antibiotics or growth hormones. Organic food
is produced without using most conventional pesticides; fertilizers made with synthetic
ingredients or sewage sludge; bioengineering; or ionizing radiation (United States
Department of Agriculture National Organic Program, 2000). More than that, "organic" is not

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only a set of harmless agricultural production technique, its ultimate meaning behind is to
respect the nature and life, pay attention to the conservation of the ecology to enhance
environmental quality for future generations. The main reasons that prevent consumers from
buying OF are expensiveness, limited availability, and unsatisfactory quality, lack of trust,
and lack of perceived value and misunderstanding of organic food production processes
(Krystallis, 2002).
Green food consumers are now steadily increasing all over world. Green foods refer
to foods that are safe to be consumed, of fine quality, nutritious, concerned with animal
welfare and are healthy, and which are produced under the principle of sustainable
development (Liu, 2003). Green foods consist of two groups. The first group of green foods
allows for the use of a certain limit of chemicals but the second group refers to organic foods.
Therefore, the first group lays a good foundation to develop the second group. Consumers
consume green foods when their needs and wants for quality, availability, convenience,
performance, and affordability are met and when consumers realize that green foods and
products can help to solve environment problems (Ottman, 1992). Consumers who are
concerned about their health and the environment will most likely have a positive attitude
towards green foods.

Organic consumers: Consumers purchase organic products mainly for the following
reasons: organic products are seen as healthier, more nutritious and safer, no chemicals are
used, organic farming is kinder to the environment, and tastes better than conventional
products. Conversely, the main reasons that prevent consumers from buying organic products
are too expensive, limited availability, unsatisfactory quality, satisfaction with current
purchases, lack of trust, limited choice, and lack of perceived value and lack of
misunderstanding of organic ways of production. Overall, the most important reason for
purchasing and consuming organic products appears to be health concerns, whereas research
conducted on consumers’ environmental concerns as a reason for consuming organic
products are mixed.

Consumer awareness: Consumer awareness is the extent to which a brand is recognized by

potential customers, and is correctly associated with a particular product. Brand recall and
consumer recognition are the two components comprising brand awareness. Brand awareness
is an essential part of brand development, helping the brand stands out from competitors,
since brand awareness play a major role in consumer buying decisions, brand awareness
influences company sales and profits.

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Segmentation of organic consumers: Fotopoulos and Krystallis (2002) have segmented

consumers of organic products could be segmented into four groups, according to their
purchasing behavior. They are:
1. Environmental Militants – consumers who associate environmental and ethical values with
organic farming. They are usually middle aged, married with children and deeply concerned
and committed to a greater protection of the environment and a more sustainable usage of
natural resources. They are well informed of the positive environmental impact of organic
agricultural practices. Price and quality are of no importance to them.
2. Traditional- consumers are concerned with flavor and authenticity. They are interested in
products of traditional quality and bear in mind the concept of returning to old farming. Price
is of no importance to them.
3. Dietary – consumers with careful nutritional values. What is of utmost importance to them
is their health. Moreover, they are very influenced by medical research. They search for
therapeutic products with balanced trace elements rather than the true organic ones. Dieters
do not seem to be very well informed.
4. Youthful - these consumers are young, impulsive and interested in their health and physical
condition (fitness). They are modern consumers looking for flavor, quality and pleasure,
concerned with dietary and environmental safety (ecologists).
The other main difficulties faced by the consumers are marketing problems related to
the supply, distribution and promotion of the products that exist. Majority of consumers
consider organic products difficult to find, they cannot easily distinguish these products from
the conventional ones and are not so well informed about the labelling of the product.

Factors Affecting Consumers’ Decision to Purchase Organic Products

Since organic food products are significantly expensive than conventional products,
consumers are willing to pay premium for organically produced foods only when they believe
that organic foods possess preferable values over conventional alternatives. The most
important quality characteristics given attention by consumers are credence values such as
healthiness, environmental friendliness, animal welfare and sensory value (for example taste
and freshness).

Consumer preference for organic food: It depends on their knowledge and perception of
organic aspects associated with health, environment, animal welfare and .Consumer’s trust in
organic certification and label, their experience with organic food and the availability of
organic food are determined by consumer behavior. It is reveled from earlier studies that high

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price, lack of information and availability, confusing label and inconvenience of purchasing
are the main hindrances to organic food purchase. Green marketing is one of the major trends
in modern agribusiness. Besides fulfilling consumers‟ wants, needs and desires, it also
preserves the natural environment and provides benefits to society in a more sustainable way
(Welford, 2000). Although, some companies have already adopted green marketing, they
have encountered a number of challenges which includes the variability of demand,
unfavorable consumer perceptions of green products and high costs invested in developing
green products (Gurau et al., 2005). As a result, it is important for the food industries to
understand consumers‟ behavior, level of awareness, perception and intention towards green
food consumption.

LITERATURE REVIEW:
Krystallis, (2002): Food consumption patterns are rapidly changing nowadays as a result of
environmental issues, concern about the nutritional value of food and health issues. Issues
such as quality and safety in food attract consumer interest in organic food that is free from
pesticides and chemical residues.
Von Alvensleben, R. (1998): the concept of "organic food" seems to be well known to many
consumers. To better protect consumers from harmful and fake organic food, knowing the
factors affecting consumers’ consumption of organic products is therefore important.
Through investigation, the profile of buyers and non-buyers of organic products can be
figured out. This can be very critical for designing organic food labeling certification,
improving public health and enhancing the profitability of the food industry.
Hartman, (2002): Hartman initially focused on identifying consumer rationale for buying
organic products. According to Hartman and others in the industry, including the natural
foods retailer Whole Foods Market, consumers state they buy organic foods because of their
superior taste, environmental benefits of organic production systems, and nutrition and health
concerns.
Govindasamy & Italia, 1990: found that consumers purchase organic food products for food
safety reasons and interest in trying new products
Hughner, McDonagh, Prothero, Shultz, & Stanton, 2007: While consumers can test
sensory value of organic produces through looking and tasting, it is impossible for them to
check the credence qualities. Health related values are primitive consumer’s motives to
purchase organic food

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Sangkumchaliang & Huang, (2012): Consumer prefers to buy organic food when they
perceive that organic food is free from chemical, artificial fertilizer and addictive.

NEED OF THE STUDY

Some of the Studies have shown that dietary intakes of pesticides can cause symptoms of
headaches, tremor, low energy, anxiety, poor memory, depression, convulsions, dermatitis,
nausea, indigestion and diarrhea. Those women with breast cancer test six to nine times more
likely to have a pesticide called hexachlorobenzene or DDT in their bloodstreams compared
to women who did not have breast cancer. Research shows that eating the “cheap”
conventional foods is contributing to these high numbers of obesity. It is only going to get
higher with the convenience and affordability of fast food and highly processed foods.so, the
aim of the study is to gain awareness about Indian consumers' demographic characteristics,
attitudes, health consciousness, and environmental concerns. It will give organic food
marketers a direction to improve the marketing strategies of their products. If organic food is
consumed by more consumers, society can greatly benefit from a public and global health
perspective. This results in a favorable situation benefiting the consumers, manufacturers as
well as the whole society.

OBJECTIVES OF THE STUDY:

1. To study the consumers awareness towards organic products.
2. To analyze the consumer perception and consumption intention towards organic products.

METHODOLOGY OF THE STUDY:

Research Design: Descriptive method is used for the purpose of conducting research. Data
is gathered from organic products consumers on the basis of convenience sampling method
for the purpose of the study. The proposed research requires both primary and secondary
data. The primary data is collected through the structured questionnaire. The secondary data
is collected from different published sources such as magazines, research articles, books and
selected websites.

Sampling Design: In the present study, convenience sampling method has been used. The
questionnaire has been administered on 50 respondents. They are professionals, students,
government employees, private employee, self-employed/entrepreneur, not-employed,
housewives, businessmen and illiterates of Mysuru city. For analysis of data frequency table
and percentage method have been used with the help of Microsoft Excel.

1. Demographic profile of the respondents (n = 50)

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Particular Sub-Category Frequency %

Male 24 48
Gender Female 26 52
Total 100 100
20-24 20 40
Age 25-29 7 14
30-34 6 12
35 and above 17 34
Total 50 100
Matriculation 15 30.0
pre-university 5 10.0
Qualification graduate 15 30.0
post graduate & above 13 26.0
illiterate 2 4.0
Total 50 100.0
students 14 28.0
Occupation Government Employee 3 6.0
Private Employee 18 36.0
Self 7 14.0
Employed/Entrepreneur
Not Employed 1 2.0
Housewife 7 14.0
Total 50 100
below 50000 29 58.0
Income 50000-150000 10 20.0
150001-250000 2 4.0
250001-350000 5 10.0
above 350000 4 8.0
Total 50 100
Married 31 62.0
Marital status Unmarried 19 38.0
Total 50 100
Joint Family 11 22.0
Family type Nuclear Family 39 78.0
Total 50 100
No dependents 14 28.0
No of dependents one 6 12.0
Two 15 30.0
Three 8 16.0
More than 3 7 14.0
Total 50 100
Source: Field Survey
Demographic information A descriptive analysis is use to describe the population and the
results of the socio-demographic profile of the respondents of this study. The data values
such as the demographic profiles include gender, age, education qualification, occupation,
income, marital status, family type, & no of dependents all of which are analyzed using a
descriptive analysis. 1) In this study the total sample taken is 50, in that most of the
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respondents are females 26 (52%) as compared to male 24 (48%). 2) The largest numbers of
respondents from 50 consumers the age of 20-24, were 20 (40%), 35 and above were 17
(34%), 25-29 were (14%), and 30-34 were 6(12%). 3) The qualification of respondents
among 50 consumers, 15 (30%) were matriculation and Graduate completed consumer, 15
(30%), post graduate is 13(26%) & above consumers, were pre-university consumer were 5
(10%) and Illiterate were 2(4%). 4) The occupation of respondents among 50 consumers,
private employees were 18 (36%), students were 14 (28%), self-employed /entrepreneur &
Housewife’s were, 7 (14%), government employee were 3 (6%) and not employed were 1
(2%). 5) The income of respondents among 50 consumers, below 50,000 incomes were 29
(58%), 50000-150000 income were 10 (20%), 250001-350000 income were 5 (10%), above
350000 income were 4 (8%), and 150001-250000 income were 2 (4%). 6) The marital status
of respondents among 50 consumers, 31 (62%) were married consumer and 19 (38%) were
unmarried consumers. 7) The family type of respondents among 50 consumers, 39 (78%)
were from nuclear family and 11 (22%) were joint family consumers. 8) The number of
dependents of respondents among 50 consumers -15 (30%) number of dependents is two, No
dependents were 14 (28%), number of dependents is three were 8 (16%), more than 3 were
7(14%).

2. Consumers Awareness, Perception and Consumption Intention towards Organic

Products

Particular Sub-Category Frequency %

1. Are you aware of the Yes 40 80.0
term organic products? No 10 20.0
Total 50 100
2. You prefer organic or Organic products 27 54.0
non –organic products? Non organic products 23 46.0
Total 50 100
Produce 2 4.0
3. What type of organic processed foods 7 14.0
food do you purchase? fruits 17 34.0
meats, eggs, poultry, seafood 10 20.0
vegetables 14 28.0
Total 50 100
4. How did you first hear Advertisement 12 24.0
about organic products? Magazine 6 12.0
newspaper 8 16.0
Internet 7 14.0
Friends 17 34.0
Total 50 100
generic supermarket/ retailer 19 38.0
5. Where do you usually organic/ health store 14 28.0

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buy organic products? online 2 4.0

producer/farmers 9 18.0
others 6 12.0
Total 50 100
more than 3 years 18 36.0
6. How long have you 1- 3 years 13 26.0
been interested in organic 6-12 months 7 14.0
products? 0-6 months 9 18.0
Non users 3 6.0
Total 50 100
Enhance a quality of life 26 52.0
7. What is main reason environmental protection & 9 18.0
that makes you willing to responsibility
pay for organic products? potential increase of product value 5 10.0
getting high level satisfaction 10 20.0
Total 50 100
health purpose 41 82.0
8. What is primary better taste 5 10.0
consumption purpose of trail purpose 4 8.0
organic products? Total 50 100
Limited availability 19 38.0
9. What prevent unsatisfied quality 1 2.0
consumers to buy organic lack of trust 4 8.0
products? limited choice 7 14.0
high price 13 26.0
Lack of misunderstanding of way of 2 4.0
production
lack of information about 4 8.0
certification and assurance
Total 50 100
health conciseness 24 48
10. What makes you taste 4 8.0
satisfied for using organic hygienic 8 16.0
products? peace of mind 5 10.0
no side effects 7 14.0
quality 2 4.0
Total 50 100
(Source: Field Survey)
The awareness of the term “Organic product” of respondents among 50 consumers, 40 (80%)
were aware of the term “Organic product” and 10 (20%) were not aware of the term “Organic
product”. 2) Among them 27(54%) were prefer to buy organic products, and the remaining
23(46 %) were prefer to buy Non organic products. 3) From the organic products the
consumer prefer to buy more Fruits 17 (34%), vegetables 14 (28%), meats, eggs, poultry and
seafood were 10 (20%), Processed foods were 7 (14%) and other produce 2(4%). 4) They
hear about organic food products first from friends 17(34%), from Advertisements 12 (24 %),

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from newspapers 8(16%), From Internet 7(14%), and Magazines 6 (12%). 5) They prefer to
buy organic products from Generic/super markets and retailers 19 (38%), from organic and
health store centers 14(28%), from producers and farmers 9(18%), from others 6(12%), and
from online 2(4%). 6) They are interested in buying organic products since more than 3 years
were 18(36%), from 1-3 years were 13 (26%), and from 0-6 months were 9 (18%), from 6-
12 months were 7 (14%), from 0-6 months were 9 (18%), and consumers never interested in
buying organic are 3 (6%). 7) The main reason to that makes consumers willing to pay more
for organic products because, it enhances a quality of life 26 (52%), some of them says
getting high level satisfaction 10 (20%), 9 (18%) were says it is about environmental
protection and responsibility, 5(10%) of them were says it increases the potential of products
value. 8) The study highlights the main purpose of buying organic products, around 41(82 %)
were says because of health purpose, 5 (10%) of them says for better taste, and 4 (8%) of
them says for trail purpose. 9) The study found the reasons that consumer prevent to buy
organic products were around 19 (38%) were feels there is limited availability of organic
products, 13(26%) were feels that the cost is high, and 7(14%) were says there is limited
choice in organic products, 4 (8%) of them feels that they won’t trust organic, 1 (2%) of them
were says they were unsatisfied with the quality of organic products. 10) The study finds
consumers are highly satisfied by using organic products because it is health consciousness
says 24 (48 %), it is hygienic says 8 (16%) , it has no side effects says 7 (14%), it is taste
says 4 (8%), it gives peace of mind says 5 (10%), and 2 (4%) says it has quality.

Findings: From 50 consumers 80% aware of organic products, from that 54% prefer to buy
organic products and a greater number of consumers 34% like to buy fruits and vegetables.
More number of consumers hears about organic from friends. And most of them prefer to buy
organic food from supermarket and retail shops. Most of them are interested buy organic
foods from 3 years. Study says it enhance the quality of life of the consumers. The main
purpose of consumption of organic is health. Most of the consumers prevent to buy organic
because of irregular availability of products. The customers satisfied with organic products
because it is health consciousness. The findings also indicate that the majority of the
consumers had the intention to purchase organic foods in the near future. Demographic
variables such as education level, income and family type have a strong relationship with the
consumers‟ intention to purchase green foods. Consumers who have higher education levels
are more intent on purchasing green foods. This is due to the fact that they are more aware of
the advantages of consuming green foods such as the health and nutrition aspects as well as

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the fact that there is little or no use of chemicals, they are safer, environmentally friendly and
are concerned about animal welfare issues. Higher income consumers‟ also have a higher
intention to purchase green foods in the near future because the price of green foods is 10 to
50% higher than the conventional foods. Thus, organic food producers should develop their
marketing strategies to target middle- and high-income consumers who can afford to
purchase organic foods at the agreed prices.

Recommendations:

1. In the city of Mysuru there is low awareness among people but they are keen to know
about organic food. We can create awareness among people through exhibitions, fairs and
promotions of organic products.
2. To overcome the difficulty of unavailability and high cost of organic inputs, it can be
distributed at subsidized rates through agriculture department.
3. Organic food is creating brand loyalty among their customers if the companies will provide
the products in somewhat same price range of inorganic products for customer benefit.
4. The products are certified with USDA (United States Department of Agriculture) as it
bonds a trust of product with consumers so it is necessary to highlight this feature.
5. Company should introduce number of stores to provide facility to customer and provide
services like home delivery for the convenience for customers.
6. The Indian organic food consumer, producers and retailers needs education. Many
consumers are unaware of the difference between natural and organic food. Many people
purchase products labeled as Natural thinking that they are organic.

CONCLUSION: Thus, understanding consumer’s awareness and intention towards organic

food consumption is very important organic food industry or food marketer, especially as the
food they produce is critical for food safety, environmental products and healthy products.
The key marketer action points for creating affective commitment among regular buyers
include better price competitiveness with conventional food through negotiation with
farmers, personalized attention, regular availability, organic choices in more food categories,
keeping an exclusive section with prime display in diversified food supermarkets and service
reliability primarily through trained and knowledgeable sales people. Experts think high price
and limited availability are primarily responsible in limiting more usage of organic food by
regular buyers.

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