Topic: Organic Food

GMGT Report
Prof. Mayank Mathur

Arnav Sarin, Mrinanka Sengupta Das, Priyansh Jindal,

Shashaankk Saraf, Sneha Rastogi, Sreenija Chintha
ACKNOWLEDGEMENT
We would like to acknowledge everyone who was involved in the making of this report and
everyone who contributed to its success. Firstly, we would like to thank Flame University and
the management for giving us the opportunity to be a part of this course. We would like to
express our heartfelt gratitude to Professor Mayank Mathur for providing us with the
opportunity to conduct the research. This assignment has provided us with the opportunity for
holistic learning and growth. We would also like to thank our professor for his constant
availability and mentoring that helped us overcome many hurdles and complete our research
successfully. Without him, our team and research would remain incomplete.

We would also like to thank the participants of the survey who took the time out of their
day to answer our survey and provide us with data. Our special thanks to Navya Garg for
providing additional help to the formation of our report. Lastly, we would like to thank each
member of the group for their hard work and cooperation.

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ABSTRACT
The last few years have seen an increase in the popularity of organic food. With consumers
worrying more and more about their health and the environment, many are starting to turn
towards organic food and sustainable farming. The increase in the use of organic food also
comes with the problem of the authenticity of the food. Price plays a significant role as it is
used as the deciding factor on the authenticity of the food. Here, we are targeting towards the
goal of identifying and evaluating numerous variables that play a part in the pricing of these
foods. This report aims to document, our observations and findings. We conducted a survey
and have done a literature review to collect our data, which will be used to prove our
hypothesis.

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TABLE OF CONTENTS:
ACKNOWLEDGEMENT .................................................................................................................... 1
ABSTRACT ........................................................................................................................................... 2
INTRODUCTION................................................................................................................................. 4
LIST OF TABLES ................................................................................................................................ 4
BACKGROUND ................................................................................................................................... 5
Literature Review: ............................................................................................................................ 5
RESEARCH METHODOLOGY ........................................................................................................ 8
Research Objective: .......................................................................................................................... 9
Research Question: ........................................................................................................................... 9
Hypothesis: ........................................................................................................................................ 9
DATA COLLECTION ....................................................................................................................... 12
DATA ANALYSIS: ............................................................................................................................. 16
Correlation Analysis ....................................................................................................................... 16
Chi Square Analysis........................................................................................................................ 17
Regression Analysis: ....................................................................................................................... 19
Defining Variables: ......................................................................................................................... 19
R square Analysis: .......................................................................................................................... 20
Hypothesis Testing:......................................................................................................................... 20
Research Answer: ........................................................................................................................... 24
DISCUSSION ...................................................................................................................................... 25
Limitations ....................................................................................................................................... 25
Future Scope .................................................................................................................................... 25
CONCLUSIONS ................................................................................................................................. 26
APPENDIX .......................................................................................................................................... 27
REFERENCES .................................................................................................................................... 30

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INTRODUCTION
The use of organic foods has become prevalent in recent times. The number of foods
available in the market has also increased, thus providing the consumers with a wider variety
of options. But it is not always that the foods available are 100% authentic and natural. To
counter this problem, the food's price plays a very significant role as it's a common mindset
that expensive foods are more authentic and of better quality. Therefore, the main focus of our
project is on Organic foods and how various variables influence the price of these foods. We
would be identifying and evaluating multiple variables to reach our goal. By taking surveys,
we would gather as much primary data as possible to produce meaningful and relevant analysis.
Using all the concepts learned in the course, we will try to evaluate and conclude what effects
these variables have on the price of organic foods.

LIST OF TABLES

- Table 1.1 Correlation Analysis

- Table 1.2 Regression Analysis
- Table 2.1 Chi Square Analysis
- Table 2.2 Expected Values of Chi Square
- Table 2.3 Computing observed and expected values

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BACKGROUND

Literature Review:

For our report, we were able to find a few research papers related to our topic. These
reports use different methodologies to determine consumers' willingness to pay for and
consume organic food. Nowadays, the amount of pesticides and fertilizers being used to
produce food is increasing. This brings up the issue of food safety and health and makes us
wonder exactly how much of these pesticides we are consuming. Organic food has become
increasingly popular, and organic agriculture is currently being practiced in 160 countries by
1.8 million producers (Nandi, Bokelmann, Gowdru, and Dias, 2016). The growth of the organic
food industry rises from the increase in awareness that consumers seem to be having. With
consumers starting to become more aware of their health, many desire to have a healthier
lifestyle, and this includes consuming foods that are economically grown (Nandi et al. 2016).
The foodion of organic food depends on the demand. Therefore, it is essential to understand
the consumer behavior behind the purchasing of organic food so that more companies and
businesses can start investing in the organic food industry (Eyinade, Mushunje, & Yusuf,
2021).
In order to study the factors that influence consumers to buy organic food, it is
important to understand the current development of organic food in today’s market.
Organic food markets all over the world are developing at different rates; the market in Greece
is still a decade behind the developed markets, and this is the case in Britain and Germany as
well, it seems that the consumer thinking is very similar in these places, so it is crucial to
understand the factors that drive consumers to purchase organic foods so that these markets
can catch up (Chakrabarti, 2010). The American market has grown significantly, with a growth
rate of 9.4% (Nandi et al. 2016). The Indian market has also expanded considerably, with the
income of the “middle-class” consumers increasing, and also with urbanization, many
consumers in India have also gained awareness about organic food(Nandi et al. 2016). India is
one of the leading producers of organic food. It is currently a significant player, especially in
Europe, but despite all of this, the domestic market is still in the early stages of development
(Nandi et al., 2016). In India, each of the 29 states and seven Union territories differs from each
other in terms of soil conditions, climate, land area, culture, living conditions, etc. Right now,
the market is currently concentrated in the big cities, which is why the domestic market in India
still needs to develop (Nandi et al., 2016).

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 There are many non-monetary factors that could convince a person to purchase and
consume organic foods. As mentioned before, the primary reason is that consumers have started
to become more conscious about their health, so they now tend to prefer foods that are grown
naturally without the use of chemicals (Eyinade et al., 2021). But other than this, some other
factors that could convince consumers to switch to buying organic foods are the taste, storage
life, and freshness of the food. In the report written by (Eyinade et al., 2021), it is stated that
some studies observed that consumers did not notice a change of taste between regular foods
and organically grown ones, but other studies showed that consumers did notice a
difference (Eyinade et al., 2021, What non-monetary features are the key to organic
consumers? Para 2.). There are many contradicting reviews and studies regarding the taste of
organic foods, and it cannot be said certainly that the taste of organic foods is different from
non-organic foods. But consumers can still be convinced to purchase it because they think that
it has more minor risk factors when compared to non-organic food (Eyinade et al., 2021).
Organic farming is a more sustainable version of farming and offers economic, cultural, and
environmental benefits, but there is one downside to organic food that could discourage
consumers from purchasing it, and this is the price.
The price of organic food can be quite expensive, so we will need to look at consumers’
willingness to pay or WTP. WTP is the maximum amount of money a consumer is willing to
pay for a food or service. Based on the factors that could encourage consumers to have organic
food we can look at the WTP of consumers towards organic food. A study was done by (Katt
& Meixner, 2020) where they first created a preliminary data set by searching through 20 years
of publications and using key search terms like “green food.” They then cleaned up the data by
removing any duplicates and by checking the relevance; they analyzed this data and structured
their findings into three categories; consumer-related drivers, food-related drivers, and
purchasing venue-related drivers (Katt & Meixner, 2020).
Under Consumer related factors, they found that demographics such as age, gender,
income, and education had a major impact on the WTP, especially in developing countries, and
it was explained that the reason for this could be because the majority of disposable income is
being spent on food in developing areas (Katt & Meixner, 2020). Other factors under this
section were the values and behaviour of the consumer. This section mainly stated that
consumers are starting to worry about the environment and have a lot more ethical concerns,
which contributes to the WTP. The consumer behaviour part said that consumers who once
start buying organic food are likely to continue purchasing organic food, and it also showed

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that consumers who often recycle are also expected to buy organic food (Katt & Meixner,
2020).
Under food-related factors, it was observed that foods grown locally positively affected
the WTP, and consumers perceived organic foods to be of higher quality (Katt & Meixner,
2020). The last section was the Purchasing venue related factors, and here it was seen that the
type of store had a significant effect on WTP, with many studies comparing supermarkets to
farmers’
markets (Katt & Meixner, 2020). According to the (Katt & Meixner, 2020) study, these were
the factors that affected consumers' willingness to pay.
A similar study was done in India by (Chakrabarti, 2010), where expert surveys were
conducted to determine the factors influencing organic food purchase in India. The expert
survey involved 33 experts from the agricultural and food industries. The findings of the study
were that there is a high importance placed on health and the place from where poducts are
being bought. The experts also agreed that more awareness of the market was needed. So these
are the factors that influence consumers into purchasing and consuming organic food.

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RESEARCH METHODOLOGY

Before carrying out the research, determining the methodology is an important factor.
Having a constructive research methodology, helps in carrying out the research in a systematic
order. It provides a ground for accuracy and certifiability. Other researchers who wish to carry
out a similar research or advance this research can investigate our methodology for reference.
The research methodology also helps in evaluating the research to find where we might have
gone wrong.

There are different types of research methods – qualitative research, quantitative

research, mix of qualitative and quantitative research, exploratory research, surveys, and case
studies. For our research, the focus was on quantitative research and surveys. Qualitative
research involves data which are non-numeric in nature. This methodology helps us collect
data that are tough to express in numbers. Qualitative data is also used in the open-ended
questions. Quantitative research is what we used extensively for our research. This research
involves collecting and analysing numerical data. Quantitative research helps us at finding
trends, averages, test on variables and make a general set of procedures. With the help of
surveys, we were able to collect a large amount data at present time. This method was beneficial
for us as it saves time and cost. Surveys helped us know the present time relation between
organic food and people. The data that we collected is primary in nature as it is the first-hand
data that the team assembled together.

As our research is focused on what consumers think the average price of organic foods
should be, we approached people who are most likely to be consumers of organic foods. Our
sample size for the research was 100. We targeted different age groups but kept priority as
young adults and adults. To collect data, we sent out our questionnaire which required the
participants to fill after they consent to be a part of the research. The questions asked were
based on their age, gender, country, their consumption of organic foods, the price they usually
pay for their organic food, their income, the accessibility of organic food in their area and the
type of organic food they consume. We also require the participants to initially answer the
questions on whether they consume organic food or not so that we could eliminate the data not
required or keep it as our potential buyer.

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 On receiving the responses, we identified our variables- dependent variable and
independent variable. Based on the different variable we have then approached respective
methods to analyse the data to arrive at a concrete conclusion.

Research Objective:

Our research objective is to find the amount of money people are willing to spend on the
consumption of the organic food and to understand which factors influence the price of these
foods, these factors are not only based upon the food but also concerns the specific individual.
We are not only trying to determine the price of the food from the company perspective but we
are seeing the same from Consumer’s perspective as well.

Research Question:

The Main Research question which we will be focusing on is:

What are the most important factors that determine the price of organic food? How do these
factors influence the price and what is the reliability of each factor?
The following are the research questions of the study:

- How important is organic food to customers in the market?

- What is the role gender when it comes to purchasing organic food?
- How important is the authenticity of the organic food to the customer?
- Is organic food easily accessible?
- How do customers procure organic food?
- Are customers aware of the source of the organic foods they purchase?
- What is the frequency of purchase of organic foods by the customer?
- What role does income play in the purchase of organic food?
- Does age play a role in the purchase of organic food?
- Does the taste of the organic food make a difference in it’s purchase by the customer?

Hypothesis:

1. The gender of the person determines the price of the organic food.
• Null Hypothesis: The gender of the person does not determine the price a
customer is willing to pay.
• Alternative Hypothesis: The gender of the person does determine the price a
customer is willing to pay.

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2. The accessibility of an organic food determines the average price of the food.
• Null Hypothesis: The accessibility of an organic food does not determine the
price of the organic food.
• Alternative Hypothesis: The accessibility of an organic food determines the
price of the organic food.
3. The type of organic food determines the average price of the food.
• Null Hypothesis: The type of organic food does not determine it’s average price
• Alternative Hypothesis: The type of organic food determines it’s average price
4. The source of procurement of the organic food by the customer determines the average
price of the organic food.
• Null Hypothesis: The source of procurement of the organic food does not
determine the average price of the organic food.
• Alternative Hypothesis: The source of procurement of the organic food
determines the average price of the organic food.
5. The source of the organic food determines it’s average price.
• Null Hypothesis: The source of the organic food does not determine it’s average
price.
• Alternative Hypothesis: The source of the organic food determines it’s average
price.
6. The frequency of the purchase of organic foods by customers determine the average
price of the food.
• Null Hypothesis: The frequency of the purchase of organic food does not
determine the average price of the food.
• Alternative Hypothesis: The frequency of the purchase of organic food
determines the average price of the food.
7. The income of the consumer determines the price of the organic food.
• Null Hypothesis: The income of the consumer does not determine the price of
the organic food.
• Alternative Hypothesis: The income of the consumer determines the price of the
organic food.
8. The age of the consumer determines the average price of the organic food.
• Null Hypothesis: The age of the consumer does not determine the price of the
organic food.

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 • Alternative Hypothesis: The age of the consumer determines the price of the
organic food.
9. The taste of the organic food determines the average price of the food.
• Null Hypothesis: The taste of the organic food does not determine the average
price of the food.
• Alternative Hypothesis: The taste of the organic food determines the average
price of the food.

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DATA COLLECTION

The data collection which we did was focus oriented on people who consume organic food.

We were able to collect more then 130 responses but after cleansing the data, we were left

with 100 responses.

The following is the is the data we got using the data collection:

1. Age: *

2. Gender: *

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3. Do you believe that the authenticity of food is more important than its
price? *

4. How easily accessible is organic food in your area? *

5. What type of Organic food do you consume? *

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6. Where do you buy organic foods from? *

7. While buying organic foods, do you check the source of the food? *

8. How often do you buy organic foods? *

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9. What is your family income? (in ₹) *

10. What is your monthly budget for organic food? *

11. If the taste of the organic food is different from usual, will you purchase
it? *

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DATA ANALYSIS:

The data was collected through a survey, via a google form. The following is the analysis of
the research conducted:

Correlation Analysis

Table 1.1 Correlation Analysis

The above seen table is the Correlation analysis of the 9 independent variables which
we have taken to answer the research question and to determine the value of the dependent
variable. There is no significant/ high correlation between any of the independent variables
which means that a change in one variable won’t have any effect on another variable by a huge
margin. If the 2 variables are correlated, be it negative or positive, they are supposed to be
eliminated as they affect the dependent variable in a similar way and taking into account both
the variables would be just repetition of the data. A positive correlation—when the correlation
coefficient is greater than 0—signifies that both variables move in the same direction. When ρ
is +1, it signifies that the two variables being compared have a perfect positive relationship;
when one variable moves higher or lower, the other variable moves in the same direction with
the same magnitude. A negative (inverse) correlation occurs when the correlation coefficient
is less than 0. This is an indication that both variables move in the opposite direction. In short,
any reading between 0 and -1 means that the two securities move in opposite directions. This
concludes that there is no correlation between any of them and there is no need to eliminate
any variable in this stage.

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Chi Square Analysis

Taking the two variables of Price and the type of organic food consumed, we created our chi-
square analysis table. After quantifying our data from our survey and placing them into the
table, we ran the chi square analysis to conclude the following:

The table above are our observed valued form our primary data collected via our survey.

Hypothesis: The proportion of budget price of all the types of organic foods are not
proportionate.

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 - Null Hypothesis: The proportion of budget price of all the types of organic foods are
proportionate
- Alternative hypothesis: The proportion of budget price of all the types of organic foods
are not proportionate.

The degrees of freedom were 20: (6-1)*(5-1)

Using the chi-square table, for 20 degrees of freedom and with a 95% confidence level, our
critical value was determined to be 31.41.

Conclusion of the Chi-square test:

The critical value was greater than our chi-square statistic.

X^2 = 31.41 > 11.29

Since the critical value is greater than the test statistic, we accept the null hypothesis. Therefore,
there is no relation between our dependent variable and the type of food they consume; thus
the dependent variable and the types of organic food are non-proportional.

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Regression Analysis:

Table 1.2 Regression Analysis

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.5147
R Square 0.2650
Adjusted R Square 0.1915
Standard Error 1.3846
Observations 100

ANOVA
df SS MS F Significance F
Regression 9 62.19932533 6.911036 3.604699 0.000715714
Residual 90 172.5506747 1.91723
Total 99 234.75

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 0.3597 0.8551 0.4206 0.6750 -1.3392 2.0586 -1.3392 2.0586
x1 -0.0048 0.2907 -0.0167 0.9867 -0.5824 0.5727 -0.5824 0.5727
x2 0.0123 0.4736 0.0259 0.9794 -0.9286 0.9531 -0.9286 0.9531
x3 0.1028 0.1230 0.8363 0.4052 -0.1415 0.3472 -0.1415 0.3472
x4 0.0898 0.1832 0.4904 0.6250 -0.2741 0.4537 -0.2741 0.4537
x5 -0.4513 0.2892 -1.5602 0.1222 -1.0259 0.1233 -1.0259 0.1233
x6 0.1917 0.1470 1.3047 0.1953 -0.1002 0.4837 -0.1002 0.4837
x7 0.1271 0.3454 0.3679 0.7138 -0.5591 0.8133 -0.5591 0.8133
x8 0.0259 0.0140 1.8473 0.0680 -0.0020 0.0538 -0.0020 0.0538
X9 0.3957 0.0858 4.6090 0.0000 0.2251 0.5662 0.2251 0.5662

Defining Variables:

Dependent Variable:

- Y Variable: What is the average price one should pay for organic foods?

Independent Variable:

- X1: Gender_ Assumption: Females are willing to pay more price for organic
food foods.
- X2: Authenticity_ Assumption: The more authentic the food is, the higher it
will be priced.
- X3: Accessibility_ Assumption: The more accessible the food is the lower it
will be priced.
- X4: Source of procurement_ Assumption: Buying organic foods offline will
be cheaper than buying it online.

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 - X5: Source_ Assumption: The more credible the source of the organic food is
the higher will be it’s price.
- X6: Frequency_ Assumption: The higher the frequency of purchase of the
organic food, the lower the preferred price of purchase.
- X7: Income_ Assumption: The higher the income of a person, the more the
person is likely to pay for the organic food.
- X8: Age_ Assumption: Young people are more health conscious; thus, they are
likely to pay higher for organic foods.
- X9: Taste_ Assumption: The better the taste of the organic food, the more the
will be its price.

R square Analysis:

None of us are experts in R square or social sciences but through enough research we were able
to come to a conclusion that the topic which we are working on concerns the market behaviour
towards a certain food criterion and because the market is really unstable and versatile. We
went through many combinations of variables and many methods to analyse the same, even
though through some changes we were able to reach a significantly higher R square value but
it was deemed inconsiderate due to the fact that the data was not being analysed properly and
some of the data variables were Misinterpreted. We think that in this setting 26% is a good
variance and can be used to determine the price bracket of organic food.

Hypothesis Testing:

The sample which we have taken into consideration is 100, so our degree of freedom would
be 99(100-1) and the level of confidence which we have taken into consideration is 95%. The
critical value of our analysis at 99 degree of freedom and 0.05 level of significance is 1.984.

1. X1: The gender of the person determines the price of the organic food.
• Null Hypothesis: The gender of the person does not determine the price a
customer is willing to pay.
• Alternative Hypothesis: The gender of the person does determine the price a
customer is willing to pay.
The t-stat of variable is -0.01667. Since the critical value is greater than the t value, we
will accept the X1 variable; i.e. The gender of the person does determine the price a
customer is willing to pay.

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2. X2: The accessibility of an organic food determines the average price of the food.
• Null Hypothesis: The accessibility of an organic food does not determine the
price of the organic food.
• Alternative Hypothesis: The accessibility of an organic food determines the
price of the organic food.
The t-stat of variable is 0.025919. Since the critical value is greater than the t value, we
will accept the X2 variable; i.e. The accessibility of an organic food determines the
price of the organic food.
3. X3: The type of organic food determines the average price of the food.
• Null Hypothesis: The type of organic food does not determine it’s average price
• Alternative Hypothesis: The type of organic food determines it’s average price
The t-stat of variable is 0.836266. Since the critical value is greater than the t value,
we will accept the X3 variable; i.e. The type of organic food determines it’s average
price
4. X4: The source of procurement of the organic food by the customer determines the
average price of the organic food.
• Null Hypothesis: The source of procurement of the organic food does not
determine the average price of the organic food.
• Alternative Hypothesis: The source of procurement of the organic food
determines the average price of the organic food.
the t-stat of variable is 0.490416. Since the critical value is greater than the t value, we
will accept the X4 variable; i.e. The source of procurement of the organic food
determines the average price of the organic food.
5. X5: The source of the organic food determines it’s average price.
• Null Hypothesis: The source of the organic food does not determine it’s average
price.
• Alternative Hypothesis: The source of the organic food determines it’s average
price.
The t-stat of variable is -1.56024. Since the critical value is greater than the t value, we
will accept the X5 variable; i.e. The source of the organic food determines it’s average
price.
6. X6: The frequency of the purchase of organic foods by customers determine the average
price of the food.

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 • Null Hypothesis: The frequency of the purchase of organic food does not
determine the average price of the food.
• Alternative Hypothesis: The frequency of the purchase of organic food
determines the average price of the food.
The t-stat of variable is 1.304681. Since the critical value is greater than the t value, we
will accept the X6 variable; i.e. The frequency of the purchase of organic food
determines the average price of the food.
7. X7: The income of the consumer determines the price of the organic food.
• Null Hypothesis: The income of the consumer does not determine the price of
the organic food.
• Alternative Hypothesis: The income of the consumer determines the price of the
organic food.
The t-stat of variable is 0.367919. Since the critical value is greater than the t value, we
will accept the X7 variable; i.e. The income of the consumer determines the price of the
organic food.
8. X8: The age of the consumer determines the average price of the organic food.
• Null Hypothesis: The age of the consumer does not determine the price of the
organic food.
• Alternative Hypothesis: The age of the consumer determines the price of the
organic food.
The t-stat of variable is 1.847306. Since the critical value is greater than the t value, we
will accept the X8 variable; i.e. The age of the consumer determines the price of the
organic food.
9. X9: The taste of the organic food determines the average price of the food.
• Null Hypothesis: The taste of the organic food does not determine the average
price of the food.
• Alternative Hypothesis: The taste of the organic food determines the average
price of the food.
The t-stat of variable is 4.609934. Since the critical value is less than the t value, we
will reject the X9 variable; i.e. The taste of the organic food determines the average
price of the food.

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Regression equation:

Y’=0.359- 0.004(x1)+0.012(x2)+0.102(x3)+0.089(x4)-
0.451(x5)+0.191(x6)+0.127(x7)+0.025(x8)

The regression coefficient x1= -0.004 is the average change in the price bracket of the organic
food associated with the gender of the consumer. In this case the number of female respondents
for female are more than male which means with decrease in price of the food, the number of
female consumers will increase more if the other factors are kept constant.

The regression coefficient x2= 0.012 is the average change in the price bracket of the organic
food associated with the authenticity of the food. If the authenticity of the food increases by 1
point then the then the price of the organic food will change by 0.012 as wel if the other factors
are kept constant.

The regression coefficient x3= 0.102 is the average change in the price bracket of the organic
food associated with the accessibility of the food. Price and accessibility of food is positively
proportional to each other, which means an additional point in the accessibility will lead to
change in the price by 0.102 as people are getting the food more easily, if the other factors are
kept constant.

The regression coefficient x4= 0.089 is the average change in the price bracket of the organic
food associated with the source of procurement of the food. As the world is moving towards
digitization, more and more things are getting available online with more convenience and
discounts, so with people shifting towards online purchasing where they want the goods at their
convenience, the price of the organic food will increase if the other factors are kept constant.

The regression coefficient x5= -0.451 is the average change in the price bracket of the organic
food associated with the source of the food if the information about the source of the food is
decreased by 1 point, as less information means less trust on the brand and the food.
Considering other factors are kept constant.

The regression coefficient x6= 0.191 is the average change in the price bracket of the organic
food if the frequency of procurement of the same increases by 1, if the frequency of the
procurement is more, which means the demand of the food is increasing and increase of demand
leads to increase in price as well. Considering all the other factors are taken as constant.

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The regression coefficient x7= 0.127 is the average change in the price bracket of organic food
if the Income of the Consumers increases by 1, Increase in income will lead to increase in the
price of the food as people’s disposable income is increasing, keeping other factors as constant.

The regression coefficient x8= 0.025 is the average change in the price bracket of the organic
food if the age of the consumer increases by 1. An elder person will be willing to spend more
on organic food than a younger person, so the price if the target market is older audience should
be more.

Research Answer:

The 8 factors which affects the average price of the organic food are: Age, Accessibility,
Information about the Source, Gender, Authenticity, Source of Procurement, Frequency and
Income. They affect the Dependent variable through the Regression Equation- Y’ = 0.359-
0.004(x1)+0.012(x2)+0.102(x3)+0.089(x4)- 0.451(x5)+0.191(x6)+0.127(x7)+0.025(x8)

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DISCUSSION

Limitations

• The data collected was not face-to-face but through online forms which was
anonymous hence we do not know the authenticity.

• The sample size for our research is small considering the market size.

• There is a lack of knowledge about organic foods in the market.

Future Scope

• Conducting in-person interviews, expert interviews, and focus group discussions to

get further in-depth data.

• Have a larger sample size to get varying views and opinions.

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CONCLUSIONS
After conducting the regression analysis, we conclude that there are eight main important
factors that affect the price of organic food. While we had eight factors that were directly
affecting the price, we had to eliminate two factors that did not play any role in the creation of
the complex structure of the regression equation. As mentioned earlier we had a small sample
size in comparison to the market size, hence, on taking a bigger market size and taking variables
under different environmental conditions, we discussed that these variables that were
eliminated could have been an important factor in that scenario. This research project gave us
an experience of how the world outside operates, we not only had to theoretical knowledge but
also practical knowledge had to be applied in order to collect and analyze the data.

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APPENDIX

Questionnaire:

The following is the questionnaire used for the data collection:

1. Age: *

Your answer______________________

2. Gender: *

A. Other

B. Female

C. Male

3. Country: *

Your answer______________________

4. Do you buy/consume organic foods? *

A. Yes

B. No

5. Do you believe that the authenticity of food is more important than its
price? *

A. Yes

B. No

6. What will you purchase? *

A. Food A: 100% organic but high priced.

B. Food B: 50% organic but low priced.

7. How easily accessible is organic food in your area? *

A. Very Low

B. Low

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C. Medium

D. High

E. Very High

8. What type of Organic food do you consume? *

A. Vegetables

B. Dairy

C. Fruits

D. Poultry

E. Grain

9. Where do you buy organic foods from? *

A. Offline

B. Online

C. Offline and Online

10. If offline/online where do you buy it from? *

A. Supermarkets

B. Street Vendors

C. Online Grocery Stores

D. Farms

11. While buying organic foods, do you check the source of the food? *

A. Yes

B. No

12. How often do you buy organic foods? *

A. Daily

B. Weekly

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C. Monthly

D. Rarely

13. What is your family income? (in ₹) *

A. 0 - 1 lakh

B. 1 - 8 lakh

C. 8 - 20 lakh

D. 20 - 40 lakh

E. 40 - 60 lakh

F. 60 - 80 lakh

G. 80 lakh - 1 crore

H. 1 crore +

14. What is your monthly budget for organic food? *

A. 0 - 500 ₹

B. 500 - 1000 ₹

C. 1000 - 1500 ₹

D. 1500 - 2000 ₹

E. 2000 - 2500 ₹

F. 2500 ₹ +

15. If the taste of the organic food is different from usual, will you purchase
it? *

A. Yes

B. No

29
REFERENCES

Chakrabarti, S. (2010). Factors influencing organic food purchase in India – expert survey
insights. British Food Journal, 112(8), 902–
915.https://doi.org/10.1108/00070701011067497

Eyinade, G. A., Mushunje, A., & Yusuf, S. F. (2021). The willingness to consume organic
food: A Review. Food and Agricultural Immunology, 32(1), 78–104.
https://doi.org/10.1080/09540105.2021.1874885

Katt, F., & Meixner, O. (2020). A systematic review of drivers influencing consumer
willingness to pay for organic food. Trends in Food Science & Technology, 100, 374–
388. https://doi.org/10.1016/j.tifs.2020.04.029

Nandi, R., Bokelmann, W., Gowdru, N. V., & Dias, G. (2016). Factors influencing
consumers’ willingness to pay for organic fruits and vegetables: Empirical evidence
from a consumer survey in India. Journal of Food Foods Marketing, 23(4), 430–451.
https://doi.org/10.1080/10454446.2015.1048018

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