Consumer Attitudes and Purchase Intentions in Relation to Organic Foods Essay Example for Free

Consumer Attitudes and Purchase Intentions in Relation to Organic diets EssayAbstract The aim of this weigh is to find out the third (3) solid vari satisfactorys forming the verifying stance towards the get the perfect regimen in Peninsula Malaysia, which lastly transcend to the ultimate intention in buying the completeally-produced viands. The different vari fits atomic number 18 focused on demographic quotationistics on sign of the zodiac income, yield attributes and lastly the comprehend value to the nodes. This theatre shows that the household income is evidently appeared to be an grievous predictor among the targeted segmentation in consuming extreme fertiliser solid victuals. Organic food attributes much(prenominal)(prenominal) as pricing, handiness and purlieually friendliness of such(prenominal) natural food may influence pull inr buying decision. Lastly, the perceive value from the customers towards natural food on its health effects, se nsory bring up, victual-worth and belief of perceive benefits, a great deal play an of the essence(predicate) role in cultivating the intention towards buying natural fertiliser food. Introduction and Background of the contemplate Over the last two decades, on that point has been a remarkable increase in demand for organic-produced food or products.Organic food is often seen and commercialiseed as health-conscious food which contains fewer contaminants, to a greater extent nutrients and nearly signifi butt jointtly having a positive effect on the environment. It is known that close to of these attributes are difficult to quantify, with the contrary that some of exploreer has proved that they may cause such capableness harm during the organic production. The organic market back in 80s, while remaining a niche sector, has heavy(a) to be able to grab a share from the total spending on food in some countries in the recent years.Organic fruit and vegetables are amongst th e products which wealthy person been expanding in the rapid production. The demand for organically-produced meat and dairy products has undergone the same rapid progress, with a corresponding increase in the need for organically bounteous forage and feed crops. This has led to a fast growth in consumer demand whereby the organic food gross sales have managed to gain a significant market share in the ceremonious food industry. The market for organically produced crops and commodities has become much structured, looking at the increased number of countries which have adopted constant standards for organic food production.The standardization has to a fault applied in the organic certification and labelling. While both(prenominal) the production and the marketing of the organic cultivation of temperate crops have actual, there is a trend to be seen whereby the developing countrys farmers are actively involved in the organic farming. Problem narration and Importance of the enqui ry Organic horticulture industry, no doubt, has offers close of the developing countries a wide cuckold of sparing, environment, social and cultural benefits.Certifies organic products have now been growing fast and in the mist of incoming the global market. Malaysia, on the separate hand, is still in the starting spark-point in adapting the organic-food consumption while the developed countries such as North America and Europe have already gained the biggest market share in this newest industry. Due to expanding markets and attractive value premiums, Malaysia should comprise and invest in organically-produced food, taking into consideration of variant significant variables which may form the consumer deportment towards organic food.We would like to postgraduatelight that the ultimate goal of this study is to translate consumers motivations behind organic food products barter fors in order to enable organic producers to develop a more effective strategic marketing plan. The results could be used for the marketing planning of organic food products to enable proper marketing strategies, a proper sales channel and promotion to be targeted to these groups of consumers. Re look to Questions The present study aims to answer the following questions What are demographic characteristics of organic food buyers? How do demographic characteristics impinge on consumer sides towards organic foods? How product attributes effect consumer offices towards organic foods? How consumer perceived values influence consumer attitudes towards organic foods? What is the family relationship between consumers attitudes towards organic foods and their intentions to purchase? How can results of the study be applied by managers and marketers? Research Objectives.Regarding to the moment of the growing market of organic foods in the world, and to the previous studies on consumer attitudes towards organic foods and its effects on purchase intentions in several countries (e. g. Taiwan, Thailand, United Kingdom, United States and Denmark) we intend to engage out such similar studies in Peninsula Malaysia with objectives as the following To report the descriptive analysis on the organic buyers demographic characteristics To identify the effects of demographic characteristics (specifically level of households income) on consumer attitudes towards organic foods. To retrieve effects of product attributes on consumer attitudes towards organic foods To inquire the relation of consumer perceived values to consumer attitudes towards organic foods To determine the relationship between consumers attitudes towards organic foods and their intentions to purchase To shed light on implications for managers and marketers Literature Review demographics Based on findings from previous research, demographic characteristics were evaluated as one of the major predictors in gaining intention to purchase the organic food in Peninsula Malaysia. accord to Robinson R. and Smith C. (2002), the demographic of consumers consist of mixed(a) characteristics namely the gender, age, household income and education level. Each element has been contributed in forming the valued attitudes towards buying the organic products. Hence, the demographic characteristics, especially on household income is have the appearance _or_ semblanceingly significant and being the focus in this research. This im pull up stakes eventually lead to the desired intention in buying such products for daily consumption. Level of Household Income.Whilst referring to the studies through with(p) in the US, it is seemingly apparent that the demographic variables which herby refer as the income dispersion, is significant predictors (Bartels Reinders, 2009). The research on this finical subject has prove that income positively influenced buying behaviour which in turn may cause the perceived buying behaviour towards the organic food. A same result has shown in Germ any(prenomina l) as well (Bartels Reinders, 2009). In Germany, demographic variables such as household income distribution have played an definitive role in developing significant effect on organic buying behaviour.However, the overall inevitability of the demographic characteristics was relatively different, taking into consideration of research carried in various westbound countries. These findings verify the results of earlier studies by Clark goldsmith (2006) and Im et al. (2003) proven that the intellectual practice on using the demographic characteristics such as household income distribution and domain specific innovativeness will be seen as strategic tools for market segmentation.In the Western countries, research has identified that the demand and impulsiveness in expenditure on organic impregnables often affiliated closely with various socioeconomic and demographic variables (Wier et al. , 2008). In addition, Menghi (1997) found that the majority households with middle and hig h income levels showed a greater tilt in purchase and consuming organic foods. However, it is shown that almost all of these studies are establish upon hypothesized future behaviour rather than observed behaviour in both Denmark and UK.Hence, studies have been carried out by researchers to further invent on the influences of demographic characteristics especially in household income in guiding the intention of buying the organic goods. Through the research it is revealed that higher disposable household income (approximated by total food expenditure) will lead to higher positive intention in purchasing the organic food. Consumers with a lower household income on base with lower level of education are found to be least apt(predicate) to have hear of organic agriculture (Roitner-Schobesberger et al. , 2008).On a contrary, those who have a higher income and hold an academic class are more likely to be the target segmentation in purchasing organic products (Roitner-Schobesberger et al. , 2008). It is alike mentioned that the correlation between the household income level is very much linked to the level of education as well. As mentioned by Robinson R. and Smith C. (2002), intended purchases of sustainably produced foods did non differ for demographic characteristics such as household annual income educational attainment.Through the research carried out by Ross NJ.et al. (2000), they have suggested that consumers with a higher earning incomes were more likely to have purchased locally produced food, mainly focus on the organic consumption by various segmentations. Their research and findings were supported earlier by Govindasamy R. and Italia J. (1998) whereby the same results applied. Groups with a higher household income tend to have purchased foods produced with reduced curse wordicides. In UK particularly, social group is employed as an indicator of income brackets (Wier et al. , 2008).Research has revealed that the tendency in purchase the organic good s seem to increase in accordance to the given social status. However, the highest organic cipher shares are observed for middle class households whilst shares in the upper middle class being in fact lower. Quite captivatingly, a similar phenomenon is observed to be happened in Denmark as well. Organic Food Attributes Organic food attributes influence consumer buying decision. Several empirical studies have been performed on customer perceptions of organic food attributes and how they formed the consumer attitudes towards food.In the present research, among different product attributes, we have selected legal injury of organic food, environmentally friendliness of organic food and organic food handiness. Price of Organic Food Organic foods are often of a price premium above conventional products. According to Roitner-Schobesberger et. al (2008) in Thailand the price difference between organic and non-labeled conventional vegetables in Bangkok varied between 50 pct and 170 percen t and in some cases even 400 percent.However, in some countries such as Finland there were not significant premium prices for organic foods (Tarkiainen and Sundqvist, 2005). As Roitner-Schobesberger et. al (2008) pointed out that despite the price difference of organic and non-organic food, nearly 60% of the organic buyers said that the price of organic products was not a problem. In addition, non-organic buyers ranked some other items as a reason of not purchasing organic food rather than higher prices.Chryssohoidis Krystallis (2005) declareed that while 100 percent of people would prefer organic to conventional products with the assumption of similar price, this percentages dropped by only 20 percent when the same question was posed careless(predicate) the higher price of organic food. In other words, higher price is an important obstacle for a limited percentage of consumers. Roitner-Schobesberger et. al (2008) found out that in Bangkok men were more likely to purchase organic foods than women and concluded that it might be due to the reason of men being willing to pay a higher price premium for organic products than women.Similarly, a study in Klang Valey, Malaysia showed that women werre more likely than men to agree that they would purchase more organic foods if they were less expensive (Ahmed, 2010). Additionally, heavy users were on average stage whereby they are willing to pay higher price premiums than medium and light users (Wier et. al, 2008). environmentally friendliness of organic food Consumers are getting more conscious and concerned with the consumption of chemic substance used in farming and preserving environment is becoming a strong attitude among consumers.According to Tarkiainen and Sundqvist (2005), subjective norms effect on attitudes has been mainly found in behaviors, that involved some kind of estimable decision, and similarly buying organic food can be seen as ethical decision reflecting environmental concern. In addition, per ceived quality is associated with environmentally friendly practices (Ness et. al, 2009). The perception of organic food products as environmentally friendly was a common intuition and has been examined in several studies (Ahmed, 2010 Honkanen et. al, 2006).It is believed that when the consumers have more concern intimately their health and environmental protection, they will be more likely to have a positive attitude to organic foods (Ness et. al, 2010). Honkanen et. al (2006) found that ecologically oriented consumers were more likely to form intentions to purchase and consume organic food. In other words, the more people are concerned about environment, the more positive attitude they have towards organic food. Organic Food Availability Lack of organic food availability and variety in store is considered as one of the barriers to consumer purchase.Fresh vegetables (which include fresh herbs) were considered the most widely available organic product group rather than other organ ic foods (Roitner-Schobesberger et. al, 2008). Chryssohoidis Krystallis (2005) stated that limited availability was the main factor that hinders organic purchasing. Although according to Roitner-Schobesberger et. al (2008), in Thailand, majority of organic buyers were satisfied with availability of organic products. Most of them reported that they would like to buy more organic products, especially a wider reach of vegetables. Value to the Customer.In every product that consumer purchased and used, they in turn are expecting value from it. Value can be defined as a benefit that consumer is receiving by using a product. Benefits here implicate sensory appeal of the product, taste, fun, freshness, quality and healthiness of the products. These are some main reasons that abetd consumer to purchase the organic food. The value may vary from one consumer to another however there will definitely be one value that effect the buying attitude which motivate the buying intention of consume rs. Health personnel of Organic FoodSeveral perceptions contributed to health attribute include the reason of being good for health, good for children, not containing pesticides, high in fiber, natural and nutritious and safer to eat (Roitner-Schobesberger, et. al, 2008 Saher et. al 2006 Lockie et. al, 2002 Ness et. al, 2009). The perceived potential hazards of modern agricultural practices such as the use of pesticides and their residues in food were perceived to be associated with foresightful term and unknown effects on health (Miles and Frewer, 2001Wilkins Hillers, 1994 Williams Hammit, 2001).Saher et. al (2006) revealed that there is very little scientific support for the common beliefs that organic food would be more healthy or nutritious than stock foods, but the belief that they have these properties remains sooner strong in consumers mindset. The claim is baffling whether marketers can use the health claim for marketing purposes because most of the research concluded t hat there was no evidence that organic food was healthier or more nutritious than conventional food (Honkanen et. al, 2006).However, most studies in this area suggested that consumers perception of organic food as a healthy nutrition is one the most significant motivations for buyers. Lockie et al. (2002) pointed out that health was the one aspect consumers are least willing to compromise. Roitner-Schobesberger et. al (2008) in Bangkok, Thailand, examined the motives behind organic food purchase and pointed out that the most important motive was the expect positive health effects. Similarly in Malaysia, organic buyers believed that organic food was healthier compared to conventional grown food (Ahmed, 2010).In Thailand, the health aspect was closely associated with the residues from synthetic chemicals used in agriculture (Roitner-Schobesberger et. al, 2008). In fact, organic products often have a lower level of pesticide residues (Baker et al. , 2002). Lockie et. al (2002) reveale d that although price was an important factor, organic consumers consider health has appeared as a more significant factor for purchasing organic food in Australia. These organic food consumers also believed that industrial methods of food processing constitute a threat to customers health.Another research by Schifferstein Oude Ophuis (1997) illustrated that well-being was rated among all other motives by organic food buyers. On the other hand, Tarkiainen and Sundqvist (2005) by examining specific organic products (bread and flour) claimed that health consciousness did not explained the general attitudes towards organic food, although they believed this results might be different by examining different organic products. centripetal Appeals Sensory appeals of organic food are part of the factors that provides value to customer.Sensory appeals include the taste, odor and also the grain of the organic product (Prescott et. al, 2002). Sometimes sensory appeals of the organic food need to be combined with the non-sensory factors such as organic food related expectations to create a value to customer which will affect their attitude towards buying organic food (Prescott et. al, 2002). Sensory factors are also influenced by cultures and background of consumers. For example, consumers from Western countries eat less spicy food compared to those from Asia.Spicy organic food might produce high value to consumers in Asian countries compared to Western. Intrinsic cues or sensory appeal that are associated with physical characteristics of the product such as taste, size, color, appearance, smell, feel and flavor were commonly used as indicators of quality on the organic food (Schifferstein et. al,1997). Quality is also value that consumers experiencing by consuming an organic food. Better sensory appeal of organic food will portray a better quality which will influence the attitude of purchasing an organic food and later increase the intention of buying the organic food. unmatched of the most prominent sensory appeals that yield more value to consumer is taste. According to Roitner-Schobesbergeris et. al (2008), taste was the third important motives that consumers purchase organic food (Roitner-Schobesbergeris et. al, 2008). Others studies also emphasized that many organic food buyers believed that organic food products taste better than conventional food even if sensory evaluations have yielded in tenacious results (Fillion and Arazi,2002 McEachern and McClean,2002 Zhao et al. ,2007). sensed Value.One of the studies conducted in eight countries concluded that individual attitudes towards buying organic food are primarily based on the belief about the benefits (Thogersen, 2000). Benefits or value to consumers such as healthy, taste better and environment friendly supersede all the other factors such as belief about the cost. The same proven in one of the study conducted in Klang vale. Most of the respondents reported that they choose to buy organi c food products because they perceived organic food as very healthy, fresher and natural (Bayaah Ahmad et.all, 2010).As such, value of organic food towards customers effect their attitudes towards buying which will motivates their intention of purchasing the organic product. Consumers also value organic food as nutritional food since it is produced using traditional method whereby the original nutrition from the food is preserved. Nutrition belief was one of the reasons that made people appeared to have different food styles and often pull out themselves as having food adventurousness or pickiness (Chen, 2007).Organic food adds value to consumers who has such belief and it will influence their intention of consuming it by affecting the buying behavior. Besides, Chen (2007) points out that an individuals personal interests or traits act a part in establishing personal food choice criteria through the values held by the individual. These values comprise nutrition beliefs, weight cont rol concerns, and so on. For instance, people seem to have different food-styles and often express themselves as having food adventurousness or pickiness.Another important motive to purchase organic food as reported by Roitner-Schobesbergeris et. al (2008) is the consumers search for new, trendy and attractive food products. Attitudes towards Organic food and Intention to purchase Basically, consumer attitudes are found to be the most important predictor of intention to buy (Honkanen et. al, 2006). Several studies have found that higher perceived product quality leads to more positive re-purchase intentions (Bou-Llusar et. al, 2001 Hult, Kandemir 2004 Tarkiainen Sundqvist, 2005).Chen (7007) highlighted that if the consumers attitude towards organic foods is positive, the consumers attitude to purchase organic food will be more likely to be positive. This is also consistent with another study performed by Honkanen et. al (2006) indicating that relation between attitude and intentio n is positive and quite strong, indicating that consumers with positive attitudes towards consumption of organic food are more likely to form intentions to consume such food, therefore converting positive attitudes to intentions. Methodology Theoretical Research Framework pic Figure1.Theoretical Research Framework meditation Development supposal 1 There is a relationship between demographic characteristics of consumers and their attitudes towards organic foods. speculation 2 There is a relationship between organic food attributes and consumers attitudes towards the organic food. Hypothesis 3 There is a positive relationship between values of organic food to customer with attitudes towards buying organic foods. Hypothesis 4 When the consumers attitude towards organic foods is positive, the consumers intentions to purchase organic foods will be more likely to be positive. Research Design.The questionnaires are only designed in English since the respondents are assumed to be relativ ely high educated they will be able to answer the questions without any difficulties. Furthermore it will help to keep the original meaning and understanding that respondents perceived to have towards the questions. Types of questions in questionnaires are mostly closed ended question and only two surface ended question. This will only consume little time for the respondent to complete the questionnaire which will encourage them to participate in this study. There are three main categories in the prepared questionnaires.The questions in the beginning(a) category are more towards understanding demographic details of the respondent such as on the age, income level, ethnicity, religion and educational level. This is useful to confirm the background of the organic food consumers. There are also questions on the product attributes which the respondents are asked to identify what are the main attributes that attract the purchase and also to determine whether this factor have a positive effect towards consumer attitude on organic food. Last part in the questionnaires is designed to understand the value of organic food to customers.All these questions are to test 4 hypotheses of this study. Data Collection The target population consists of organic food buyers in Peninsula Malaysia. In order to carry out the sampling Peninsula Malaysia is divided in to 3 major regions namely northern, Central and Southern region. Northern region will be embodyed by Penang, Central region will be Klang Valley and Southern region of Peninsula Malaysia is represented by Johor Bahru. These three areas are chosen based on the economic development and availability of the organic products.From each region shopping complexes and supermarkets that provide organic products are identified. By using random sampling, three shopping complexes and supermarkets in urban areas are selected. Since target respondent with higher educational level and purchasing power are scattered around these urban areas, these will be perfect places to conduct this research. Those three supermarkets and shopping complexes are ensured to be far from each other so that the collected samples will be more accurate in representing the population in each region. meat sample size comprises of 540 individual respondents is collected using convenience sampling and respondents will be approached randomly. Since this study is conducted in large scale, convenient sampling will be more cost effective compared to other types of sampling. Furthermore conducting other types of sampling will be time consuming and the accuracy of the collected samples to represent the actual population will be questionable. In order to collect the entropy, 60 self-administered consumer questionnaire surveys are distributed in each shopping complexes which will result in 180 questionnaires from each region.Considering the validity of the data, we are expecting a total of about 500 questionnaires to be usable in the later part of data analysis. Although there is no way of knowing if those included are representative of the overall population, the survey is still expected to give a first overview of relevant issues and to allow to derive insights into the perception of organic food buyers in Peninsula Malaysia. Data Analysis After data is collected, data will be edited and coded. alter data is very essential part of data analysis especially when researches involve open ended questions.Editing is through with(p) immediately after data is collected so that the respondent can be contacted if any clarification needed. The edited data are identified through usage of different fond and colors. cryptanalysis is done before data processing is conducted. Since most of the data collected involve ordinal scale, cryptanalysis becomes prudent. By doing this data accurately keyed in and avoid wrong interpretation of data. Base on the three sections in the questionnaire, data is also coded in three main groups. Data processing is done using a software program called SPSS version 17.First of all the edited and coded data is check and scanned through. Wrongly entered and coded data will be identified using the software through methods like appellation of the maximum value. Values like variance, standard deviation, mean and range are used to understand the speciality of the questions asked in the questionnaire and how respondents reacted to the questions. The reliability and validity test is done to check the credibility of the data. The reliability test also conducted to test the relationship of the variables through the reliability coefficient.Validity test is done to assess all three factorial validity, convergent validity and also discriminant validity. References Ahmed, S. N. 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