Factors influencing consumers to purchase organic food products

A case on Gadag City of Karnataka state


Elaboration, 2018
7 Pages, Grade: 1.00

Free online reading

ABSTRACT

The objective of the study was to identify the Factors influencing on consumers to prefer organic food items during their buying decisions. The study was conducted based on two factors which influence the consumer to prefer organic food items over in-organic food items. They are consumer health consciousness factor and easy availability of organic food items in Gadag city of Karnataka state. There are many other factors which will influence the consumer to buy organic food items but in this study above mentioned two factors are given more preference to study their influence in paradigm shift of consumer from inorganic food items to organic food items.

A study was conducted during the month of October 2018 among varied level of consumers in Gadag city of North Karnataka. A pre designated questionnaires was administered during the study with a total sample size of 65. A five level likert scale was used for the responses collected through pre administered questioners. In the questioner eleven different variables which represent the two factors that is’ health consciousness’ and ‘easy availability’ is asked to the respondents. The collected data was analyzed using ms-excel and SPSS tool. With a p value < 0.05 considered significant, a one sample T-test was applied for data analysis with a mean value of 2.5.

After the analysis of data, the findings revealed that there is a significant influence of health consciousness factor and easy availability of organic food items on consumers to prefer the organic food products. Among many factors which influence the consumer to buy organic food products from stores, these two factors also contribute to the greater extent.

Keywords: Organic items , organic food products, factors affecting buying organic product , organic product shopping etc.

INTRODUCTION

In recent days the importance of Organic Products is gaining popularity, many firms are continue to launch various forms of green products and packaging programs through the introduction of new, innovative recyclable and useful products and packages. Organic marketing is a strategic marketing approach for a firm to sustain and grow in dynamic business environment.

Customers are becoming more sensitive in their buying attitudes, preferences and purchase in recent days. The desire of consumers to purchase organic products and services is increasing. Now a day’s firms are faced with a paradigm shift of consumers who are environmentally conscious while making purchases. Generally organic products are sometimes more expensive to purchase than the other products. The consumers have been shown to be willing to pay a higher price for organic products, which will provide huge opportunities to the organic food producing companies as well as government organizations looking to make eco-friendly products and policy changes. A better understanding of buying behavior of consumers will allow the businesses to capture more market-applicable approach to sustain in the highly competitive business environment.

In this regard there are various factors that affect the buying decision process of consumer. Many researchers have identified factors which influence this process including organic knowledge, perceived product quality, price ,company’s environmental reputation & environmental concerns and credibility of environmental advertising.

Now it has become very essential to know the factors that create desire of consumers to purchase an organic product. Hence this study contributes to the field of investigating and exploring the extent of the impact of consumers buying behavior towards organic food products in Gadag city.

OBJECTIVES

This study aims to explore the factors influencing the purchase of organic food products in Gadag city. Therefore, following objective is kept in mind during the study.

1. To study the influence of consumer health consciousness factor on purchase of organic food items.
2. To study the influence of easy availability of organic food items.

HYPOTHESIS OF THE STUDY

H1: Consumer health consciousness factor has no significant influence on purchase of organic food items.
H2: Easy availability of organic food items has no significant influence on buying behavior of consumers.

METHODOLOGY AND DATA COLLECTION

A study was conducted in the month of October 2018. A convenient sampling method was adopted to choose 65 respondents from Gadag city of North Karnataka.

Questionnaire: A questioner consisting of 11 items explaining the ‘consumer health consciousness factor’ and ‘easy availability of organic food items’ was self administered and filled during the interaction with the respondents. The reliability of the data collection instrument was checked using SPSS tool and a cronbach’s alpha value which is above 0.5 was considered as reliable in this study. The relevant cronbach’s alpha for each item of the data collection instrument is given in the following table.

Table 1: Reliability statistics of the data collection items

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Table1: Authors own compilation

Description of the tool:

Part I- Personal details of the respondents.
Part II- Consumer health consciousness factor on buying behavior.
Part III- Easy availability of organic food items on consumer buying behavior.

Statistical Analysis: The data collected from the questionnaire is compiled into tables by using Ms-Excel and SPSS tool. A simple descriptive statistical analysis tools such as percentages, one sample T-test etc has been used in this study.

ANALYSIS OF DATA

H 1 : Consumer health consciousness factor has no significant influence on purchase of organic food items.

Testing of hypothesis is carried out as, If probability value of one sample t-test is less than 5% level of significance then alternate hypothesis will be accepted. If probability value of one sample t-test is more than 5% level of significance than null hypothesis can be accepted, which means the sample mean is equal to population mean. The hypothesis tested in this work using one sample T- test is as follows.

Table 3.1: one sample T-test for Consumer health consciousness factor influence.

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H2: Easy availability of organic food items has no significant influence on buying behavior of consumers.

Table 3.2: one sample T-test for Easy availability of organic food items.

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DUSCUSSION ON FINDINGS

Table 3.1 has consolidated results of hypothesis H1. The table consists of seven variables. “I will prefer to purchase the organic food items due to its taste [V1] has a T-value of 12.356 with a significance level less than five percent. Similarly “I will prefer to purchase the organic food items because of its good quality” [V2] has a T value of 20.609 with a significance level less than five per cent. “I will prefer to purchase the organic food items due to its freshness. [V3]” is having T-value 11.824 with a significance level less than five per cent. Variable seven that is “I prefer to purchase the organic food items due to its health benefits” has a T-value of 21.372 and a significance level less than five per cent. Similarly “I prefer to purchase the organic food items due to its content (like minerals, vitamins, carbohydrates etc) benefit [V8]” has a T value of 18.356 with a significance level less than five per cent. Similarly “I prefer to purchase the organic food items due to its environment friendliness [V9]” has a T value of 16.837 with a significance level less than five per cent. And lastly” I prefer to purchase the organic food items, as it is free from hazardous chemicals, pesticides etc [V10]” has a T value of 11.079 with a significance level less than five per cent. Hence H1 (Consumer health consciousness factor has no significant influence on purchase of organic food items.) will be rejected and alternative hypothesis will be accepted.

Table 3.2 has consolidated results of hypothesis H2. The table consists of four variables. “I will purchase the organic food items because it is easily available in the market. [V4]” has a T-value of -2.429 with a significance level less than five percent. Similarly “I Prefer to purchase the organic food items because the organic items will be available in different variety [V5] “has a T value of 9.169 with a significance level less than five per cent. “I prefer to purchase the organic food items due to its timely delivery at door steps. [V6]” is having T-value -2.998 with a significance level less than five per cent. Variable eleven that is “I will promote and recommend the organic food items to my friends and relatives [V11]” has a T-value of 19.957 and a significance level less than five per cent. All variables significance level of hypotheses H2 is less than five per cent. Hence H2 (Easy availability of organic food items has no significant influence on buying behavior of consumers) will be rejected and alternative hypothesis will be accepted.

FINDINGS

The study was concentrated on Factors influencing on consumers to shop organic food items in Gadag city. During the study two factors are considers which influence the consumer to prefer organic food item over in-organic food items. They are health consciousness factor and easy availability of organic food items in the Gadag city.

1. The findings revealed that there is a significant influence of health consciousness factor on organic food items buyers in Gadag city.
2. On the other hand the easy availability of organic food items in the Gadag city will attract consumers to prefer them over in-organic food items.
3. During the study it was observed from the respondents that convenient and timely delivery and easy return policy of organic food items is not available with full fledge facility. In future if this factor is addressed properly by sellers of organic food items then probably the consumer will purchase organic food items more frequently.

FUTURE SCOPE OF RESEARCH

The study was restricted to two factors they are ‘health consciousness factor’ and ‘easy availability factor’. But there are other factors which also influence the consumer to prefer organic food items, such as convenience, easy return policy, availability of innovative organic products etc. This area can be taken for further study.

CONCLUSION:

The study was restricted to above mentioned two factors only. This study provides empirical evidence that the health consciousness factor is significantly having a positive influence on consumer to buy organic food items in Gadag city. Similarly easy availability of organic food items has a positive influence on consumer buying behavior in the Gadag city. The further study can be conducted with wider organic product category and their impact on consumer buying behavior.

REFERENCES:

1. Bhaskaran, P.M. (2006) Environmentally sustainable food production and marketing. British Food Journal, 108(8): 677-690.
2. Chandrashekar HM. Consumers Perception towards Organic Products - A Study in Mysore City. International Journal of Research in Business Studies and Management 2014; 1(1): 52- 67.
3. Chaudhary, R., Aggarwal, A. and Gopal, R. (2011) ‘Lite marketing: consumer attitude and market
4. Balaji V, Injodey JI. Organic Food Products: A Study on Perceptions of Indian Consumers. Indian Journal of Marketing. 2017, 47(1).
5. C R Kothari., ―Research Methodology”( 2008 ), New Age International Publishers

ANNEXURE -1

Survey instrument used during the study to collect the data from respondents.

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7 of 7 pages

Details

Title
Factors influencing consumers to purchase organic food products
Subtitle
A case on Gadag City of Karnataka state
Course
MBA
Grade
1.00
Authors
Year
2018
Pages
7
Catalog Number
V445993
Language
English
Tags
factors, gadag, city, karnataka
Quote paper
Rangappa Yaraddi (Author)Virupaxayya Kulkarni (Author)Aneesh G. M. (Author), 2018, Factors influencing consumers to purchase organic food products, Munich, GRIN Verlag, https://www.grin.com/document/445993

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