Chapter I - Introduction: 1.1 Background of The Study
Chapter I - Introduction: 1.1 Background of The Study
Chapter I - Introduction: 1.1 Background of The Study
Human concern towards environment is increasing and they are becoming more serious on
how to convert it into green environment and tend to seek green products. The demand for
organic food products is dramatically rising as the population becomes more affluent and
more educated about health and wellness issues, leading to greater consciousness in food
choices. Organic food is perceived to have better taste than conventional food and it is also
perceived to be more environmental-friendly. Consumer is taking organic food as a better
lifestyle choice.
Results of studies confirmed that consumers have positive attitudes towards organic
products where one of the most common mentioned reason for purchasing organic
products was it is perceived as healthier than conventional alternatives (Chinnici et al.,
2002; Harper and Makatouni, 2002). Consumer attitudes to organic food have also been
explored in a small number of qualitative studies (Nielsen at al., 1998; Torjusen et al.,
2001). Consumers do not always buy sustainable products as consequences of
environmental concern or to benefit the community or due to personal beliefs but mainly to
give priority to health, to be part of the social group, to distinguish from others and to
accomplish the need to try out new technologies (Vermeir and Verbeke, 2004).
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Many studies indicated that one major factor that considered being the barrier to organic
food consumption is due to its high price and lack of confidence in its status, but there are
some other factors too that might considered as barriers to organic food consumption
among consumer. For instance, knowledge on organic food as well as action taken by the
government either to inform or to create awareness has not reach the satisfactory level in
encouraging sustainable consumption with organic food.
Therefore, knowing how consumer perceived organic food product by understanding the
reasons of buying would probably help the marketers of organic food to establish a proper
communication message. Other factors that affect in consumer buying decision for organic
food are perceived quality, risk, demographic factors like: age, gender, income, education
and purchase intention.
In addition, consumer thought that organic food had to be eaten promptly because it
spoiled faster than conventional food. Limited availability of organic food was also an
important barrier to purchasing organic food. Consumers indicated that even if they wanted
to buy organic food, they could not find it easily.
2
There are several main motives for purchasing organic foods: the expected health and
environmental benefits, the support of local or small farmers, the attraction of fashionable
products, and the search for fresher and tastier products. Health and environmental
benefits have been reported as a main motive for purchasing organic foods by most
studies. Even though organic foods do not completely lack pesticide residue because of
the pollution in the air and environment, they are safer than conventional foods that get
pesticides directly (Dangour et al. 2009).
The second important motive to purchase organic foods is that the consumers were
considering that purchasing organic food products can support local and small farmers.
The third motive to purchase organic food is the consumers’ search for new trends of
healthy food products. The fourth motive is related to organic attributes including fresher
and tastier food (i.e. vegetables).
This study is more focused on the consumers who purchase organic food products. In this
research we try to find out the factors that influence consumer, in making purchase
decision regarding organic food and how they perceive it. Since today’s consumers are
more health conscious, this research helps to provide the basic information regarding how
they make their consumption decision. It also focuses on the attitude of consumer.
Similarly, this research helps to understand the changing trend among consumers
regarding their consumption behavior.
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CHAPTER II- LITERATURE REVIEW
2.1Literature Review
Research related to consumer attitudes and preferences for organic products is very
imperceptible (Chinnici et al.,2002). In earlier research most respondents are described as
white, female, professional and younger (Harris, 2000), however these characteristics
cannot be used across all studies as the responds towards organic food products changes
according to countries background, level of awareness, product availability and attitude
changes.Studies have found that health is strongly connected to the notion of organic food
and that it is the strongest purchasing motive when purchasing organic food. Organic food
is also perceived to have better taste than conventional food and it is also perceived to be
more environmental-friendly (Aertsens et al., 2009). The fact that consumers perceive
organic food as more environmental-friendly can be connected to the value of universalism
and it is said to be the dominant value when consumers purchase organic food (Thøgersen,
2007). According to Aertsens et al. (2009) many studies have identified a clear connection
with the importance consumers attach to the environment and their attitude based on
organic food products.
Based on the related articles, there are various factors that influence consumer perception
towards organic foods.
Health Consciousness
Health consciousness is defined as an attitude in which people is aware of the
healthiness in their diet and lifestyle (Oxford Dictionaries, 2014). A consumer positive
attitude towards organic food is originated from the belief that organic food is good for
health, thereby they can consume without any fear and suspicion. The more health
conscious consumers, the more positive attitude they have towards organic food.
Consumer Knowledge
Consumer knowledge determines to have a positive influence on their attitude towards
organic food. Knowledge of consumer is categorized as subjective knowledge, objective
knowledge and prior experience (Brucks, 1985). Subjective knowledge refers to what
the consumers perceive that they know. In other words, it is called as self- rated
knowledge. The low level of subjective knowledge results in the lack of confidence
(Chryssochoidis, 2000; Padel and Foster, 2005).
4
Objective knowledge is what the consumers actually know and finally prior experience
is defined as what the consumers have experienced before (Brucks, 1985). In particular,
subjective knowledge is concluded to have more positive influence on consumer attitude
than objective knowledge (Ellen, 1994). In addition, prior experience plays an essential
role to determine consumer attitude since the more experienced consumers have, the
more positive attitude they would have (Sorensen et al., 1996).
Consumer knowledge about organic food could be gained from different sources. The
source may be local governments, social media, social networks, notifications from
ecological organizations and advertisements. Subsequently, prior experience is also
considered as essential factor that influence consumer knowledge towards organic food.
Thus, the more knowledge (subjective knowledge, prior experiences and information)
consumers have the more positive attitude they have towards organic food.
Environmental Concern
Consumers that are more involved in organic and environmental friendly related issues,
such as environmental protection tend to have positive attitude towards organic food and
strong intention to purchase.Many studies have investigated the attitude consumers have
towards organic food and they have found three main factors that is; organic food is
seen as healthier, more environmental-friendly and better tasting than conventional
food.Hence, the more consumers care about environmental friendly issues the more
positive their attitude is towards organic food.
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2.2 Theoretical Framework
Perceived Price
Attitude
Subjective Knowledge
Purchase Intention
Environment Friendly
Taste
Trust
Health Conscious
Personal Norms
Quality
Familiarity
6
2.3 Research Question
1. Is there any relation between purchase intention and health consciousness?
2. Does perceived quality of the product lead to purchase intension of the consumers?
H3: There is significant influence of perceived Price towards purchase intention of organic
food.
H4: There is significant influence of trust towards purchase intention of organic food.
7
H6: There is significant between environmental friendly and purchase intention of organic
food.
H7: There is significant between subjective knowledge and purchase intention of organic
food.
H8: There is significant influence of attitude towards purchase intention of organic food.
H9: There is significant influence of taste towards purchase Intention of organic food.
H10: There is significant influence of personal norm towards purchase intention of organic
food.
After, hypothesis are formulated, collecting the data, analyzing it and getting result became
the next step in research. Hypothesis helps to check whether our research was significant or
not. If there doesn’t exist any relation between dependent and independent variable then
the research is irrelevant and the work needs to be done from the starting. Therefore,
knowing the right dependent and independent variable became the most for us. However,
the conceptual framework that we prepared worked significantly and we were able to get
good result about perception and image Organic food on the eyes of consumer.
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CHAPTER III RESEARCH METHODOLOGY
9
CHAPTER IV DATA ANALYSIS
Table 1: shows that Subjective Knowldege has Cronbach alpha of 0.655, so there is
internal consistency among data. Trust has strong reliability with Cronbach alpha of 0.641.
Familiarity also has reliability with Cronbach alpha of 0.665. Health conscious has no
strong consistency hence the Cronbach alpha is 0.894. Personal norm has stronger
10
reliability with Cronbach alpha of 0.899. Perceived Price has Cronbach alpha of 0.707
which means that there is consistency among the data. Environment Friendly has Cronbach
alpha of 0.845 so, it is also reliable. Quality has a stronger reliability with Cronbach alpha
of 0.931. Taste has Cronbach alpha of 0.655, so there is internal consistency among data.
Purchase intention is consistent; hence, cronbach alpha is 0.806. In addition, the
Cronbach’s Alpha is 0.916, which shows consistency in variable as a whole.
4.1.2 Correlation
A SK F TS HC PN PP EF Q T P
M T
A Pearson 1
Correlati
on
Sig. (2-
tailed)
N 1
1
0
S Pearson . 1
K Correlati 0
on 5
2
Sig. (2- .
tailed) 5
9
1
N 1 11
1 0
0
F Pearson . . 1
M Correlati 1 49
on 2 0**
5
Sig. (2- . .
11
tailed) 1 00
9 0
2
N 1 11 11
1 0 0
0
T Pearson . . . 1
S Correlati 3 22 58
T on 8 8* 3**
3
*
Sig. (2- . . .
tailed) 0 01 00
0 6 0
0
N 1 11 11 11
1 0 0 0
0
H Pearson . . . . 1
C Correlati 6 21 40 68
on 0 9* 5** 1**
2
*
Sig. (2- . . . .
tailed) 0 02 00 00
0 1 0 0
0
N 1 11 11 11 11
1 0 0 0 0
0
P Pearson . . . . . 1
N Correlati 4 15 57 74 79
on 6 8 9** 8** 0**
12
1
*
Sig. (2- . . . . .
tailed) 0 10 00 00 00
0 0 0 0 0
0
N 1 11 11 11 11 11
1 0 0 0 0 0
0
P Pearson . . . . . . 1
P Correlati 4 19 46 67 66 69
on 7 7* 3** 1** 8** 7**
6
*
Sig. (2- . . . . . .
tailed) 0 04 00 00 00 00
0 0 0 0 0 0
0
N 1 11 11 11 11 11 11
1 0 0 0 0 0 0
0
E Pearson . . . . . . . 1
F Correlati 5 08 34 59 76 76 56
on 3 9 4** 7** 2** 3** 9**
8
*
Sig. (2- . . . . . . .
tailed) 0 35 00 00 00 00 00
0 5 0 0 0 0 0
0
N 1 11 11 11 11 11 11 11
1 0 0 0 0 0 0 0
13
0
Q Pearson . . . . . . . . 1
Correlati 4 09 42 67 85 79 58 77
on 9 8 1** 9** 7** 3** 9** 9**
6
*
Sig. (2- . . . . . . . .
tailed) 0 31 00 00 00 00 00 00
0 1 0 0 0 0 0 0
0
N 1 11 11 11 11 11 11 11 11
1 0 0 0 0 0 0 0 0
0
T Pearson . . . . . . . . . 1
Correlati 2 22 37 48 64 55 45 54 66
on 8 9* 7** 0** 5** 5** 9** 6** 4**
4
*
Sig. (2- . . . . . . . . .
tailed) 0 01 00 00 00 00 00 00 00
0 6 0 0 0 0 0 0 0
3
N 1 11 11 11 11 11 11 11 11 11
1 0 0 0 0 0 0 0 0 0
0
P Pearson . . . . . . . . . . 1
Correlati 3 28 55 63 66 74 52 60 67 51
on 4 7** 0** 2** 4** 2** 7** 6** 6** 7**
4
*
Sig. (2- . . . . . . . . . .
tailed) 0 00 00 00 00 00 00 00 00 00
14
0 2 0 0 0 0 0 0 0 0
0
N 1 11 11 11 11 11 11 11 11 11 1
1 0 0 0 0 0 0 0 0 0 1
0 0
Table 4.1.2
Correlation test
The Correlation between Purchase intention and attitude is 0.344 which, with subjective
Knowledge is 0.287, with Familiarity 0.550, with Taste is 0.632, with Health conscious is
0.664, with PN is 0.742, with PP is 0.527, with EF is 0.606, with quality is 0.676 and
Trust is 0.517.
Thus, there is low level of correlation among purchase intension with attitude and
Subjective Knowledge whereas there is positive correlation and high level of correlation
with familarity, taste, Health conscious, personal norms and perceived price , environment
friendly, quality and Trust.
Hence the P-value is .00 which is less than significant level (0.05), the regression line is
significant as a whole i.e. model is fit. Therefore it ensures that regression analysis can be
run.
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Multiple Regression Analysis
The dependent variable is “Purchase intension” and the independent variables are Attitude,
Subjective knowledge, Familiarity, Taste, Health conscious, Personal Norm, Perceived
price, Environmental Friendly, Quality, Trust. Thus we are trying to predict the effect of
Attitude, Subjective knowledge, Familiarity, Taste, Health conscious, Personal Norm,
Perceived price, Environmental Friendly, Quality, Trust on Organic food . Also it is the
case of multiple regression analysis.
Where,
A= attitude
SK=Subjective Knowlegde
FM= Familiarity
TST= Taste
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PN=Personal Norms
Q= Quality
T=Trust
Hence P-value i.e. (0.770) is greater than 0.05 significant level, hence the attitude doesn’t
influence the purchase intention of Organic food among consumers.
Hence P-value i.e. (0.124) is greater than 0.05 significant level, hence the Subjective
Knowledge doesn’t influence the purchase intention of Organic food among consumers.
Hence P-value i.e. (0.255) is greater than 0.05 significant level, hence the Familiarity
doesn’t influence the purchase intention of Organic food among consumers.
Hence P-value i.e. (0.474) is greater than 0.05 significant level, hence the Familiarity
doesn’t influence the purchase intention of Organic food among consumers.
Hence P-value i.e. (0.648) is greater than 0.05 significant level, hence the health conscious
doesn’t influence the purchase intention of Organic food among consumers.
Hence P-value i.e. (0.03) is less than 0.05 significant level, hence the Personal norm
influence the purchase intention of Organic food among consumers.
Hence P-value i.e. (0.779) is greater than 0.05 significant level, hence the Environment
Friendly doesn’t influence the purchase intention of Organic food among consumers.
Hence P-value i.e. (0.241) is greater than 0.05 significant level, hence the quality doesn’t
influence the purchase intention of Organic food among consumers.
Hence P-value i.e. (0.674) is greater than 0.05 significant level, hence the Trust doesn’t
influence the purchase intention of Organic food among consumers.
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4.2 Descriptive Statistics
4.2.1 Gender
Frequency Percent Valid Cumulative
Percent Percent
Valid male 58 52.7 52.7 52.7
figure 4.2.1
Out of 110 respondents, 58 respondents are male and 52 respondents are female.
Education level
Frequency Percent Valid Percent Cumulative
Percent
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Valid primary level 1 .9 .9 .9
secondary level 20 18.2 18.2 19.1
under graduate 45 40.9 40.9 60.0
Post graduate 44 40.0 40.0 100.0
Total 110 100.0 100.0
Table 4.2.2
figure 4.2.2
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4.2.4 Descriptive frequency for Purchase intention
Statistics
P1 P2 P3
N Valid 110 110 110
Missing 0 0 0
Mean 3.05 2.97 2.62
Median 3.00 3.00 2.00
Mode 3 2 2
Table 4.2.4
Table shows that most priority question with highest mean of 3.05 is “how often do you
purchase organic foods.” It means people often purchase organic food. Similarly the least
priority question with mean 2.62 is “I have intention to purchase the organic food if price
21
decrease: which means that people often hesitate to purchase organic food even if the price
decreases.
figure 4.2.4 p1
figure 4.2.4 p2
22
figure 4.2.4 p3
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CHAPTER V SUMMARY AND FINDINGS
5.1 Findings
Following are the findings from above analysis:
1. The data taken for analysis is found to be reliable as per the reliability testing i.e.
Cranach alpha.
2. There is positive correlation between purchase intention and attitude, subjective
knowledge, trust, taste, health consciousness, etc.
3. Personal norms influences the most, when deciding upon the purchase and other
variables are insignificant.
4. There exists no multicollinearity i.e. the correlation of two independent variable are
not greater than correlation between dependent and independent variable.
5.2 Conclusion
Food safety, human health and environmental concern along with sensory attributes such
as nutritive value, taste, freshness and appearance influence organic food consumer
preferences. Consumers also associate organic food with natural process, care for the
environment and animal welfare and the non-use of pesticides and fertilizers. Premium
price continues to suppress organic food consumption. (Shafiea,F; Rennieb,D
(2012),).Concern for human health and safety, which is a key factor that influences
consumer preference for organic food, is consistent with observed deterioration in human
health over time and, therefore, motivates consumers to buy organic food as insurance
and/or investment in health( Bonti-Ankomah,S. (2006), Organic and Conventional Food: A
Literature Review of the Economics of Consumer Perceptions and Preferences).
In the present context, where people are becoming more conscious, awareness regarding
organic food product is increasing. However, what are the intentions of people when they
choose to buy organic food products over the inorganic ones; is a matter of question. Thus,
we have tried to explain variables affecting the buying behavior of people when they
choose to buy organic food. In the study, we have taken many variables like perceived
price of the product, attitude of people, trust in organic food, taste preferences, health
consciousness, environmental friendliness, personal norms, etc. among which, we found
personal norm to be the most influential to people when they choose to buy. However, this
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is applicable only to Nepalese context and further detailed studies regarding other factors,
apart from the ones calculated above, is to be done.
5.3 Recommendations
When researcher deeply analyzed the view of the consumer towards the organic
food the researcher also depicted some recommendations for the buyer of the organic food
as well as the producer of the organic foods. Following mention are some of them:
Organic foods are very much healthier for the consumer in comparison to the non-
organic food.
The farmers must have to ethical while producing and farming the products in order
to consider the health concern of the people.
Government must have to make some scheme in order to promote the farmer to
produce the organic products.
Different types of awareness program must be conducted by the concern authority
in order to increase the use of organic foods and products.
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Bibliography
Bonti.S. (2006). Organic Conventional Food: A Literature Review Of Theeconomics Of
Perception And Preferences.
Annunziata Azzurra, Pascale Paola, Consumers' Behaviours And Attitudes Toward Healthy
Food Products:The Case Of Organic And Functional Foods
Siti Nor Bayaah Ahmad And Nurita Juhdi, consumer’s perception and purchase intentions
towards organic food products: exploring the attitude among malaysian consumers.
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Appendix
Questionnaire
Name: ………………………………………
Adress: …………………………………….
Gender
Male ˜ □ Female □
Education Level
Not at all □
Income
Rating scale:
1-Strongly agree 5- Disagree
2-Agree 6 Strongly disagree
3-Slightly agree
4-Slightly disagree
27
My knowledge about organic food is sufficient
Familiarity
I am familiar with organic food, so I prefer to buy those.
Taste
Organic foods are tastier
I don’t want to give up the food that I like even though it is not
organic.
Organic food has more freshness.
Health conscious
Organic food is safer to eat as conventional ones
Organic food contains more nutrients and vitamins
Organic food helps me to stay healthy
Organic foods are chemical free
Personal norm
I feel I should choose organic food instead of conventional food.
I believe that choosing organic food is a good decision.
I get a good conscience about myself when I choose organic food.
Perceived price
Organic foods are expensive as compared to conventional ones
I am willing to pay extra to buy organic food
Environmental friendly
Organic farming is friendly to environment
Organic farming prevents contamination of air, water, soil and
food.
Quality
Organic foods have superior quality
Organic foods have more nutrients than conventional food
Organic food are better quality and less associated with health
risk
Trust
I trust the market agent that sells organic food
I have trust on organic foods
I trust on doctors and nutrients about their saying of organic foods
Purchase intention
How often do you purchase organic food?
I am more likely to buy organic food for the next time I go for
shopping
I have intention to purchase the organic food if price decrease
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