CHAPTER 3 RESEARCH METHODOLOGY. This research was adapted from a research done in Greek by Efthimia Tsakiridou,

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1 CHAPTER 3 RESEARCH METHODOLOGY This research was adapted from a research done in Greek by Efthimia Tsakiridou, Christina Boutsuki, Yorgos Zotos, and Konstatinos Mattas from Department from Agricultural Economics of University of Thessaloniki. Some modification of research methodology was performed to adapt with the situation in South Jakarta. 3.1 Research Objective The research s objective is to gain knowledge regarding consumer s perception, attitudes and behavior towards organic foods in South Jakarta, Indonesia. The purpose of this study is also to adapt a research conducted in Greece discussing about Greek consumer s perception towards organic food. 3.2 Research Questions Research questions were used in order to be the essential discussion of the thesis. There are three sections of research questions: RQ1: Are there any possible demographic differences in organics attitudes? RQ2: Are there any possible demographic differences in organics consumption/behavior? RQ3 Are attitudes related to behavior? 28

2 Scope of Research This research was conducted in South Jakarta as the capital of Indonesia that in fact the largest city among others. The questionnaires were distributed in three selected specialty grocery stores. Some of the grocery stores also have branches in several areas of South Jakarta. The selection of the three grocery stores was based on a preliminary research to find out where shoppers in South Jakarta purchased organic food. The total preliminary research s respondents were 10% of the total questionnaire which was 30. Preliminary Research: Store Choices 3% 0% 13% 3% 0% 38% Store Ranch Market Kemchick Sogo Foodhall 20% Healthy Choice Hero Carrefour 23% Others Figure Preliminary research result Therefore the highest three were: 38% respondents chose Ranch Market (distributed in the Pondok Indah branch, Oakwood, Mega Kuningan branch, and Dharmawangsa Square branch). 23% respondents chose Kemchiks (distributed only at Pacific Place since the main location in Kemang was still renovated).

3 30 20% respondents chose the Foodhall SOGO (distributed in Senayan City branch, Plaza Indonesia branch, and Pondok Indah Mall branch). The target respondent was grocery shoppers in the three stores. 3.4 Research Design This research is a descriptive research based on a research by Efthimia Tsakiridou, Christina Boutsuki, Yorgos Zotos, and Konstatinos Mattas; focusing about factors that affect consumer s purchasing decision in Greece. The same research design will be applied as the original journal with some addition and modification of questions since Indonesia and Greek have different cultures, thus some modification is needed in order to be compatible with the original purpose. The questionnaire consists of: 1. Demography (gender, age, education background, area of residence, occupation, income/per month, expense per month, household s size, children within households, children age). 2. Behavior/Consumption (condition of respondents being organic regular buyer or not, duration of organic consumption, reason of buying organic, frequency of buying organic food, products being purchased, and purchasing places). 3. Attitudes (statements of organic food discussing about the perceptions, availability, promotion, etc)

4 31 The modification of questionnaire is shown on table below. Table Modification of Questionnaires and Decision Base (Demography) 1. Demography Table (Original) 1. Demography Table (Modification) Q1 Gender Q1 Gender Q2 Age Q2 Age Q3 Education Q3 Education Q4 Profession Q4 Area of residence Q5 Net income/month Q5 Profession/occupation Profession/occupation Q6 Household size Q6 Net income/month Net income/month Q7 Expense/moth Q8 Household size Q9 Children within household Q10 Age of child Q11 Regular buyer or not Q12 How long have been consuming organic Q13 Why buy organic food? Q14 How often shopping organic Q15 What organic food category? Q16 Where buys organic food? Household Size from USDA Website from U.S. Organic Industry

5 32 Table Modification of Questionnaires and Decision Base (Attitudes) 2. Attitude (Original) 2. Attitude (Modification) Q1 Require detailed info on organics production Q1 Require detailed info on organics production Q2 Despite being more expensive I would rather buy organics Q2 Despite being more expensive I would rather buy organics Q3 Not interested in organics Q3 Not interested in organics Q4 Not many organic products in the market Q4 Not many organic products in the market Q5 Better understanding of their production would increase their consumption Q5 Better understanding of their production would increase their consumption Q6 I trust organic producer Q6 I trust organic producer Q7 Organics consumption does not help protect the environment Q7 Organics consumption does not help protect the environment Q8 I do not buy if they have spots/marks Q8 I do not buy if they have spots/marks Q9 I do not buy organics if they do not have nice shape Q9 I do not buy organics if they do not have nice shape Q10 Worried about food safety Q10 Worried about food safety Q11 Prefer buying organics Q11 Prefer buying organics Q12 Not a lot of selling locations Q12 Not a lot of selling locations Q13 Organic products have better quality Q13 Organic products have better quality Q14 Organic products are healthier Q14 Organic products are healthier Q15 Organic products taste better Q15 Organic products taste better Q16 Organic products are very expensive Q16 Organic products are very expensive Q17 Organic consumption doesn t help protect the environment Q17 Organic consumption doesn t help protect the environment Q18 Small variety of organics Q18 Small variety of organics Q19 Im not adequately informed to form an option Q19 Im not adequately informed to form an option

6 Data Collection Method The questionnaires were distributed through store intercept to grocery shoppers in the selected location mentioned earlier. Total sample was 300 respondents. Before the questionnaire got distributed, there were pre-survey test including Pre-test questionnaires was distributed for 10% of the total respondent which was 30. This test was a measurement whether questionnaire was understood or not. After, questionnaires were distributed to grocery shoppers with the convenience sampling method, so generally random shoppers within the three stores were capable to answer the questionnaires. 3.6 Data Analysis Method The author used data processing software SPSS 12.0 to analyze the data collected from the respondents Reliability Test Using Cronbach s Alpha Garson (2009) stated that researchers must show that the instruments was reliable since without reliability, research results using the instrument were not replicable, and reliability was fundamental to the scientific method. Cronbach's alpha is the most common form of internal consistency reliability coefficient. Alpha equals zero when the true score is not measured at all and there is only an error component. Alpha equals 1.0 when all items measure only the true score and there is no error component (Garson, 2009).

7 Frequency Analysis Frequency analysis is mathematical distribution whose objective is to obtain a count of the number of responses associated with different values of one variable and to express these counts in percentage terms (Malhotra, 2006, p. 444) Cross-tabulation and Chi-Square Cross tabulation is statistical technique that describes two or more variables simultaneously and results in tables that reflect the joint distribution of two or more variables that have a limited number of categories or distinct values (Malhotra, 2006, p. 454). The Chi-Square statistic is used to test the statistical significance of the observed association in a cross-tabulation. It assists us in determining whether a systematic association exists between two variables (Malhotra, 2006, p. 460) Mean Value Analysis (with Non Parametric Test; Mann-Whitney and Kruskal-Whallis) Parametric test is the hypothesis testing procedures that assume the variables of interest are measured on at least an interval scale. Non parametric tests are often used in place of

8 35 their parametric counterparts when certain assumptions about the underlying population are questionable. The significance value of each statement from mean value analysis is measured with non parametric tests: Mann-Whitney U test is a statistical test for a variable measured on an ordinal scale, comparing the differences in the location of two populations based on observations from two independent samples (Malhotra, 2006, p. 472). Kruskal-Wallis is a nonmetric one-way analysis of variance (ANOVA) test that uses the rank value of each case, not merely its location relative to the median (Malhotra, 2006, p. 509).