FACTORS INFLUENCING PURCHASE INTENTION ON ORGANIC PRODUCTS

PRESENTED TO

THE FACULTY OF THE COLLEGE OF BUSINESS EDUCATION

RAMON MAGSAYSAY MEMORIAL COLLEGES

GENERAL SANTOS CITY

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS IN

BUSINESS MARKETING RESEARCH

(BMR)

BY

DAVID NOEL TIPAWAN

10/17/22
 Chapter I

INTRODUCTION

This chapter discusses the background of the study, rationale of the study,

objectives of the study, scope and delimitations, significance of the study, research of

the study.

Background of the Study

Environmental awareness, rising consumer interest in organic foods and

features, and customer readiness to pay a premium for these factors spur corporate

interest in organic marketing, leading to significant breakthroughs (Peattie and Crane,

2005). The customer is thoughtfully affected by the increased consciousness, and the

market for organic products is growing at a respectable rate as a result (Bhaskaran et

al., 2006). The popularity of organic products is being attributed to new marketing

trends, according to which consumers are increasingly researching products before

making purchases (Thgersen et al., 2016).

There are a ton of consumers from around the world. inquisitive about

environmental issues (Diekmann and Franzen, 1999). environmental concerns can be

addressed by consumers be recognized as sensitive to information pertaining to not just

the environment itself, as well as to goods, manufacturing, and brands that could

influence it (Minton and Rose, 1997). Customers are always more conscious of the

severity of environmental deterioration, resulting in increased consumer interest in and

awareness of environmental issues products and services that are organic, favoring the

companies that observing environmental regulations (Laroche et al., 2001). This is

because the terrible environmental problems we currently face Health and wellbeing of

consumers are more at risk (Ragavan and Mageh, 2013).

Theoretical Framework

The Theory of Reasoned Action (TRA) suggests that a person's behavior is

determined by their intention to perform the behavior and that this intention is, in turn, a

function of their attitude toward the behavior and subjective norms (Fishbein & Ajzen,

1975).

International research's consensus paints a clear image. of the same reasons that

people choose to purchase organic food. Despite the possibility of variations in the

ranking of preferences in the the primary causes in particular cultural and demographic

issues in Health, product quality, and consideration for the environment come in that

sequence. the environment and the state of the environment. These were previously

supported by research from years ago (Tregear et al., 1994), and they have since been

consistently supported by additional research as well (Hughner). et al., 2007).

The availability of organic foods themselves is a deterrent to consumption.

(Makatouni, 2002) One of the primary issues in many emerging nations is Lack of

market access and market knowledge are issues with demand for organic products

(Zundel and Kilcher, 2007). The Limited availability of a study by Young et al. (2010)

Consumer attitudes and buying habits toward organic food goods were negatively

impacted by the product. On the other hand, the availability of a product exhibited a

favorable correlation with consumers' propensity to make green purchases and

behavior.
 Previous research demonstrates that one of the top reasons why customers

should buy organic foods. Liu (2007) discovered that consumers' health had a big

impact. attitudes. According to Salleh et al. (2010), factors affecting health have a a

favorable impact on consumers' perceptions of organic foods in Malaysia. Results from

Michaelidou and Hasan (2008) were comparable. Health factors, according to

Makatouni (2002), are the most important important factors influencing consumers'

propensity to buy natural foods. Additionally, Kim and Chung (2011) noted that health

Being aware is a crucial element in influencing consumers' purchase habits, and it was

made clear that customer purchases Where health-related understanding was low,

intentions were lacking.

The growth of consumer behavior was assisted by Fishbein and Ajzen's Theory of

Reasoned Actions (1975). This theory investigates the role of motivation in shaping

behavior that is under the control of a person acting independently to supply a

consumer behavior framework According to Sheppard et al. (1988), that the TRA offers

a comparatively straightforward foundation for forecasting attitude and behavior

predictions. As stated by Liu (2007), The most effective theory to forecast consumer

behavior is TRA is organic food. Consumers must understand what they purchase to

fulfill their demands and requirements. knowledge of food is an a significant factor that

may have an impact on customer behavior is Understanding is a cognitive process

(Sapp, 1991).

The phrase "the" is a general definition of the perceived or subjective norm.

perceived societal pressure to engage in the behavior or not (Ajzen, 1991, p. 188).

Typically, a subjective standard is described as a person's impression or opinion of what

is significant to others, I think that person should (Finlay et al., 1999). Chang (1998)

(1998) explored the causal relationship and further tested the relationship between

subjective norms and attitudes toward behavior. from attitudes to standards. The author

discovered a route away from subjective Significant norms to attitudes regarding

behavior. Sheppard and other Bagozzi et al. (1992), Shimp and Kavas (1984), and

(1988) discovered that consumer purchasing behavior is influenced by the subjective

norm.

The majority of the time, certified organic foods are more expensive. pricier than

similar conventional goods/foods. so, price becomes significant in the marketing of

organic food. As stated by According to Gan et al. (2008), a greater price affects

customers in purchasing habits. Their results are reliable where higher pricing has a

detrimental effect on consumers' propensity to purchase. the purchase of organic food.

According to D'Souza et al. (2006), high Consumers switch to other items as a result of

pricing. Some Consumer groups are more supportive of organic products. individuals

demonstrate a readiness to spend a higher price for food. (2005) Radman

Conceptual Framework

In the conceptual framework, the two variables are presented, the dependent

variable and independent variable. The independent variables show the different factors

that may affect the dependent variable on the purchase intention on organic products.
Perceived Price

Health
Consciousness

Knowledge of
Organic Foods Purchase intention

Subjective Norms

Availability

Figure 1. Conceptual Framework of the Study

Statement of the Problem

This study is focused on how people is affected by different factors that

influences the purchase intention on organic products. The research sought to answer

the following question to obtain all necessary knowledge, data, and information:

1. What are the determinants or factors that influence the purchase intention on organic

products?

2. What is the level of intent to purchase on organic products in terms of:

a. Perceived price

b. Health consciousness

c. Knowledge of Organic Foods

d. Subjective Norms

e. Availability

3. Is there a significant relationship between the determinants and the purchase

intention on organic products?

Hypotheses of the Study

This study will test the following null hypotheses:

Ho1: There is no significant relationship between the determinants and the purchase

intention on organic products.

Significance of the Study

The importance of this study focused on the identification of the

determinants that influence the intention to adopt mobile banking.

In addition, the study is important for the following:

The businesses owning organic products, this study will help them serve

better to their consumers by knowing the factors to their buying intentions.

The customers, this study will help them know what factors affect them in their

intention to purchase organic products.

To the future researchers, the result of the study will give information and

guidance in their own related study.

Scope and Delimitation of the Study

This study will focus in knowing the determinants on how the customers want by

their purchase intentions on organic products among the business owners in General

Santos City.

Definition of Terms

To understand the study, the following terms are conceptually and operationally

defined for better understating of the readers:

Health Consciousness
 Health consciousness is the degree to which individuals care about their health.

The more health-conscious people are, the more likely they are to have healthy habits,

which is the basis for individuals to take health measures.

Perceived Price

Value which customers are willing to pay for a particular product or service based

on their perception about the product. Perceived value pricing is not based on the cost

of the product, but it is the value which the customer thinks that he/she is deriving from

consuming a product or a service.

Organic Products

Organic food is grown without the use of synthetic chemicals, such as human-

made pesticides and fertilizers, and does not contain genetically modified organisms.

Organic foods include fresh produce, meats, and dairy products as well as processed

foods such as crackers, drinks, and frozen meals.

Subjective norms

Defined as a person’s perception that most people who are important to her or

him should or should not perform the behavior in question