AN EMPIRICAL STUDY ON CONSUMER S BELIEF TOWARDS ORGANIC FOOD PRODUCTS WITH REFERENCE TO VELLORE DISTRICT

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1 Man In India, 96 (9) : Serials Publications AN EMPIRICAL STUDY ON CONSUMER S BELIEF TOWARDS ORGANIC FOOD PRODUCTS WITH REFERENCE TO VELLORE DISTRICT Uma. R 1 and V. Selvam 2 India is rapidly emerging as one of the largest growing organic sectors in the world. People are more concerned about food safety, particularly about pesticide contained food products. Organic farming utilises 1.1 million hectares which means that average size of Indian organic farm is 2 hectares. Organic food plays an important role in shifting consumers to more healthy eating habits. A small but growing number of health - conscious consumers are aware of organic food products in the market and willing to pay a premium price for the products, provided that products are readily available in the market with the consistent quality. Consumers belief towards organic food products are increasing due to the change in the income pattern, improvement in the standards of living as well as easy availability of sustainable food products in urban areas, opening up of organic retail stores and, change in the belief system. Hence, people started to give importance to their health and avoid consuming pesticide contained food products. The present paper focuses on cognition in the form of belief affects the buying behaviour of consumers towards organic food products. The findings of the study conclude that income level plays a significant role towards belief in purchasing organic food products. Key words: Organic market, Behaviour, Attitude, Consumer belief, Organic food INTRODUCTION Food consumption patterns are rapidly changing as a result of health and environmental issues. Organic produce and other ingredients are grown without the use of pesticides, synthetic fertilizers, sewage sludge, genetically modified organisms, or ionizing radiation. Consumers interests in organically produced food have been increasing throughout the world. Global demand for organic products remains robust and with the sales rising. Concerns related to the environment are evident in the increasing ecologically conscious marketplace. It has been observed in one of the research studies that female, married and with at least one child are the consumers who are willing to pay more for environmentally friendly products. They place a high importance on security and warm relationships with others, and they often consider ecological issues when making a purchase (Laroche, Bergeron and Barbaro-Forleo, 2001). The green intentions of organic products significantly influence ethnocentrism, environmental concern, involvement and attitudes. However, risk aversion has been found as a major emerging variable while involvement and environmental concern are significant in determining the 1 Research Associate Commerce, SSL, VIT University, Vellore , Tamil Nadu, India, E- mail: umaravi1992@gmail.com 2 Professor, Department of Commerce, SSL, VIT University, Vellore , Tamil Nadu, India, selvam@vit.ac.in

2 3046 MAN IN INDIA consumer behaviour towards organic products (Paladino, 2005). Consumption has often been dichotomized in terms of its functional - hedonic nature and is closely associated with level of satisfaction leading to determine the customer value influence (Wakefield and Inman, 2003). The retail sales performance and the customer value approach are conceptually and methodically analogous. Both concepts calculate the value of a particular decision unit by analytical attributes forecast and the risk - adjusted value parameters (Rajagopal, 2005). The value of a customer may be defined in reference to a firm as the expected performance measures are based on key assumptions concerning retention rate and profit margin and the customer value also tracks market value of these firms over time. The value of all customers is determined by the acquisition rate and cost of acquiring new customers (Gupta, Hanssens, 2004). In a manufacturing and marketing firms, customer behaviour is rather complex, because customers can purchase more than one service and these purchases are often not independent from each other (Donkers et.al, 2003). The following table 1 shows millets production in Tamil Nadu. TABLE 1: MILLET PRODUCTION IN TAMIL NADU Year Area (in lakh ha) Production (lakh tonnes) Yield(kg/ha) Source: Secondary data, The Hindu, 13 th August 2015 The above table reveals that the millet production in TamilNadu has increased substantially from 2011to In , the millet production was 23,238 tonnes and where as in it was tonnes. This shows that production and consumption pattern towards organic food products has a positive increase from 2011 onwards. Since millets are rich in anti-oxidant can substantially reduce the risk of cancer. Many people look down millet eaters but health consciousness brought a change in the attitude of the people. LITERATURE REVIEW The literature review prepared for this study is from consumer view point and it also reflects expert s opinion based on their experience in order to confirm the importance of this study. The Press Trust of India (2015), reported that Sikkim has become India s first fully organic state by implementing organic practices on around 75,000 hectares of agricultural land. Organic farming leads in subsistence of agricultural, biodiversity conservation and environmental protection. (Magnusson and Arvola (2001) revealed that majority of the consumer have positive attitudes toward buying organic food, but low intention to choose them; Small proportion

3 AN EMPIRICAL STUDY ON CONSUMER S of regular purchasers; Most important food purchase criterion - good taste, least important- organic produced, Most common beliefs about organic - healthier, more expensive; Price is a major obstacle to purchasing organic food. Habits also another explanation of the low purchases. There is no common legal definition of organic food and the term organic is referred to as a process claim, not a product claim. Vindigni, Janssen, and Jager, (2002) claimed that consumers often perceive organic products as representing an environmentally friendly mode of production as well as having certain intrinsic quality and safety characteristics. Tarkianinen and Sundqvist (2005) indicated that there are direct and significant correlation through intention to purchase and subjective norms. They found a significant positive method association for organic food usage through attitudes and subjective norms. Padel and Foster (2005) identified high price premium of organic products as the main purchase barrier in the UK. Furthermore, they identified lack of information, poor presentation, lack of availability and access, mistrust of organic supermarkets, and changed eating habits, as well as lack of cooking skills acts as purchase barriers in the organic food context. Geen and Firth (2006) stated that British consumer preferences are very dynamic, and that especially committed organic consumers as regular buyer s process a greater number of issues and motives; these premiums are a purchase barrier for organic food products, although intensive organic buyers exhibit a higher willingness-to-pay. The findings of the study also found that the organic market can be enlarged by concentrating on this consumer segment and thereby, increasing on their purchases. Thøgersen (2006) expresses cross-cultural research that beliefs about health, taste and environmental consequences apparently have the strongest influence on the attitude towards buying organic whereas beliefs about costs have relatively little influence on the attitude. According to Neena Sondhi and Vina Vani (2007) expresses that that potential of marketing organically grown agricultural produce and products in the domestic market. Rajagopal (2007) stated that strategic product positioning and effective retailing augment the customer perceptions and help building the long-run customer values towards the non-conventional products owning unfamiliar brands. Hughner, Donagh and prothero (2007) expressed that motives for purchasing organic food due to health concern; better taste (perceived higher quality); environmental and animal welfare concern; concern over food safety; Hindrances to purchasing - high prices ; lack of availability; scepticism towards organic food label (distrust); insufficient marketing ; satisfaction with conventional food. Arvola, Vassallo, Dean, et.al, (2008) examined the role of affective and moral attitude as motivators for organic food purchase within the Theory of Planned Behaviour (TPB). They found that consumers are more positive towards organic apples than pizza. Thus, consumers seem to be more positive towards unprocessed organic products that better exemplify the notion of organic food production. Mondelaers (2009) analysed stronger response than desirable traits (nutrition benefits); consumers classify

4 3048 MAN IN INDIA organic products among others quality niche products; Purchase intention is mainly based upon quality traits, not the organic name; Price is the main barrier for users and light users to increase purchase; The organic label is, in general, associated more with health and environmental quality traits. As per Chen (2009) stated that health consciousness is the main determinant on enhancing positive attitude toward organic foods. However, health claims cannot be used in communication strategies for organic food and farming. While environmental benefits of organic farming are not questioned anymore and commonly used in communicating benefits of organic food production there is an ongoing debate on healthiness and Safety of organic food. Justin Paul and Fyoti Rana (2012) indicated that health, availability, education and also demographic factors positively influence the consumer s attitude towards buying organic food. Zeinab Seyed Saleki, Seyedeh Maryam Seyadsaleki et.al, (2012) emphasised the whole impacts are positive and significant except the subjective norms influence on organic buying behaviours. Gottschalk and Leistner (2013), expressed that first criterion which plays a significant role when it comes to buying organic products is the consideration for price. Thus, it is necessary to explore how consumers perceived organic food products and their behavioural intention and actual purchase behaviour towards the product. Biao Xie, Liyuan Wang, Hao Yang, Yanhua Wang and Mingli Zhang, (2015) analysed that the main trigger for purchasing organic food products is that consumers expect them to be healthier and safer. The respondents who have bought organic food products tend to have a higher education level and disposable incomes, be families with children and be older than those who have not bought them. Chih-Ching Teng and Yu-Mei Wang (2015) argued that trust and attitudes play the mediating roles linking revealed information and perceived knowledge with organic food purchase intention. Based on the above literature, the study makes further attempts to identify the problems related to consumer s belief in purchasing organic food products relating to consumers belief in Vellore city, Tamil Nadu. STATEMENT OF PROBLEM After reviewing the various literature collected from previous studies, the researcher wants to identify the problems for the study regarding consumers belief in purchasing organic food products. Pesticides contained food products causes various diseases such as: cancer, reproductive dysfunction, diabetes, autism, asthma, birth defects, Parkinson s and Alzheimer s diseases and more. Though organic food production is rapidly increasing there is a huge demand in the market but still individuals belief towards preferring traditional organic products plays a vital role due to various reasons such as: lack of chemical content, free from health hazards, safety, quality, trustworthy, taste and, ethically produced in Vellore city. Based on the above problems so far only a less attempt has been made on consumers belief towards organic food products in Vellore city, Tamil Nadu. The present research study will fill the research gap to certain extent.

5 OBJECTIVES OF THE STUDY AN EMPIRICAL STUDY ON CONSUMER S Based on the literature review and research gaps identified, the major objectives of the present study are as follows. 1. To study the demographic profile of the respondents. 2. To identify the reasons for consumer s belief in purchasing organic food products Hypothesis Ho 1. There is no significant association between respondents income and free from health hazards in purchasing organic food products. Ho 2. There is no significant association between respondents income and safety in purchasing organic food products. Ho 3. There is no significant association between respondents income and lack of chemical content in purchasing organic food products. Ho 4. There is no significant association between respondents income and quality aspect in purchasing organic food products. Ho5. There is no significant association between respondents income and trustworthy in purchasing organic food products. Ho6. There is no significant association between respondents income and taste in purchasing organic food products. Ho7. There is no significant association between respondents income and ethically produced towards purchasing organic food products. METHODOLOGY OF THE STUDY This study is descriptive in nature. Both primary and secondary data were collected for the study. Stratified random sampling technique was used for the collection of data in Vellore city, Tamil Nadu, India. A total of 100 samples were collected from users of organic food products in Vellore city. Out of 100, only 92 samples were taken for analysis and remaining 8 samples were not considered for analysis due to incompleteness of data. A structured questionnaire was framed and data were collected through direct survey method. Total population in Vellore city, who consumes organic products, is 34,567 approximately. The sample unit of the study was women who purchase only organic food products. The questionnaire contains two sections. First section deals with personal details and the second section deals with the various parameters relating to consumer s belief on organic food products in Vellore city by using Liker s scale from 5 agree to 1 strongly disagree. SPSS version 21 software was used to analyse the data and statistical tools like frequency distribution, percentage analysis, one way anova were used to inference the data.

6 3050 MAN IN INDIA TEST OF RELIABILITY In order to know the internal consistency among variables, Cronbach s alpha value for computed reliability is measured. The variables values are 0.871, which is considered as reliable. The Values of Cronbach s alpha and variables selected for the study are given in table 2. Measurement items Free from health hazards Safety Lack of chemical content Quality Trustworthy Taste Ethically Produced Source: Author s Own TABLE 2: DESCRIPTION OF VARIABLES AND RELIABILITY TEST (CRONBACH S ALPHA) LIMITATIONS OF THE STUDY Cronbach s alpha value is This research study was conducted only in Vellore city of Tamil Nadu and the sample size was restricted to 92 from women respondents. The opinion given by the respondents for the study may not reveal the same if it is conducted in some other cities of India. The primary data was collected from journals, magazines and newspapers only. The study period is restricted to seven months i.e., from November 2015 to May RESEARCH MODEL The figure 1 depicts the research model on consumers belief in purchasing organic food products Figure 1: Research Model Source: Author s own

7 AN EMPIRICAL STUDY ON CONSUMER S DATA ANALYSIS AND INTERPRETATION The data pertaining to demographic profile of the respondents were presented in Table 3 TABLE 3: SHOWS THE DEMOGRAPHIC PROFILE OF THE RESPONDENTS. Parameters Category Frequency Percentage Age Above Total Education Up to 10 th std Degree Post graduate Total Income Below Rs Rs Rs Rs Rs Rs Above Rs Total Occupation Housewife Private Employee Government Employee Business Professional Total Marital Status Married Unmarried Total Source: Author s Own From the table, it is inferred that the majority of the respondents 28.33% were above the age group of and with regard to education 57.6% of the respondents were degree holders. Regarding income, 52.2% of the respondents belongs to income group between Rs to 40000, with respect to occupation 57.6% of the respondents were private employees and 77% of the respondents marital status indicates that they were married and it seems that majority of the married women prefer organic food products ONE-WAY ANOVA In addition to the above, demographic profile it also addresses the second objective of this study the researchers applied one way anova in order to identify the significant relationship between income (independent variable) with seven parameters

8 3052 MAN IN INDIA (dependent variables) like: lack of chemical content, free from health hazards, safety, quality, trust worthy, taste and, ethically produced related to customers belief towards organic food products and the same was presented in table 5. TABLE 5: ONE WAY ANOVA Sum of Mean F Sig. Squares df Square Free from health hazards Between Groups Within Groups Total Safety Between Groups Within Groups Total Lack of chemical content Between Groups Within Groups Total Trustworthy Between Groups Within Groups Total Quality Between Groups Within Groups Total Taste Between Groups Within Groups Total Ethically Produced Between Groups Within Groups Total Source: Primary Data,*significant at 0.05 level The results of one way anova reveals that the calculated value is less than the hypothetical value i.e at 5% level of significance except one variable that is ethically produced organic food which is more than the hypothetical value. Hence, there is statistical significant relationship between income and six variables related to six variables related to consumers belief on organic food products. FINDINGS OF THE STUDY 1. The first and foremost important findings of the study is that majority of the married women prefer in buying organic food products from local retail shops because they believe that, organic foods help them in consuming chemical contained foods. 2. Majority of the respondents (57.6%) were degree holders and they highly give priority for heath and these respondents consume organic food products because of lack of chemical content, free from health hazards, safety, quality, taste and, trust worthy.

9 AN EMPIRICAL STUDY ON CONSUMER S Women consumers whose income ranges between Rs.30,000 to Rs.40,000 per month prefer and believe that organic products are lack of chemical content, free from health hazards, safety, quality, taste and, trust worthy. 4. The respondents who fall under the category of self- employed trust more on organic based food products. 5. With regard to belief on organic food products, consumers income and seven variables like: lack of chemical content, free from health hazards, safety, quality, and trust worthy have positive statistical significant association. Thus, respondent s income plays an important role in believing organic food products for consumption and also considered to be less harmful as compared to conventional food products. In the present days, consumers give more importance to healthy food products. 6. Positive belief on organic food products will certainly promotes food security and it also helps farmers to earn a sustainable livelihood from farming practices. Consumer s belief on organic product will determine the purchasing attitude of organic food products CONCLUSION This study explains the consumer s belief on organic food products and will support the growth of demand for organic products in the country which might benefit only large-scale, corporate business and to serve society as a whole. The increased demand and also premium price for organic food products have attracted several fraudulence manufacturers who mislabel the food products and sell it as organic based food. This present study concludes that, the actions and policies can be framed by the government so that it creates confidence among them to prefer purchasing organic food products in the market. To conclude, organic food is the only one aspect of holistic approach to healthy and sustainable food lifestyles. References Larchoe, M., Bergeron, J., and Barbaro - Forleo, G., (2001). Targeting consumers who are willing to pay for environmentally friendly products, Journal of Consumer Marketing, 18(6), pp Paladino, A., (2005). Understanding the Green consumer: an Empirical Analysis, Journal of Customer Behaviour, 4, pp Wakefield., Kirk, L., Inman, J., Jeffrey., (2003). Situational price sensitivity: The role of consumption occasion, social context and income, Journal of Retailing, 79(4), pp Rajagopal, (2005). Buying decision towards organic products: Analysis of customer value and brand drivers, International journal of emerging Markets, 2(3), pp Gupta, S., Lehmann, D.R. and Stuart, J.A., (2004). Valuing Customers, Journal of Marketing Research, 41, pp

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