Consumer s Perception and Purchase decision Towards Organic Banana

Transcription

1 INSTITUTE OF FRUIT TREE RESEARCH OF GUANGDONG ACADEMY OF AGRICURTURAL SCIENCES Consumer s Perception and Purchase decision Towards Organic Banana Empirical analysis based on Multiple-group analysis of structural equation in China Chen Xinjian, Dong Tao,Yi Ganjun Institute of Fruit Tree Research of GDAAS Guangzhou,China Lamb1088@163.com

2 Presentation Context 一 Background 二 Hypothesis and Methods 三 Data Collection 四 SEM Model and Result 五 Conclusion

3 Background Various scandals that have happened in the food industry, consumers pay more attention on organic response to food safety and environment. The market of organic food continues to increase throughout the world. Fig.1 The global market for organic food and drink: Market growth Source: IFOAM 2012

4 Background China is one of the biggest organic food producing countries in the world,but the organic food industry is export oriented, the domestic market is just in large cities. Certificated 9900 kinds of products 1.5 million hectares organic sales of 15 billion RMB Fruit have become urban residents daily necessities of life, organic fruits have a large market potential. In recent years, organic bananas have been appeared in the market.

5 How many bananas will buy in a month 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 43.90% 39.70% 9.30% 2.80% 1-2KG 3-5KG 5-8KG Above 8KG Source:1017 consumers investigation in Beijing,Shanghai,Guangzhou and Shenzhen

6 Compared with conventional banana

7 Research questions Most studies shows that consumer s purchase motives are attributed to environmental and health consciousness Along with the organic banana access to the market, how consumers attitudes toward organic banana? what is the consumers' decision-making process when intend to buy organic banana? What factors will influence consumers' purchase?

8 Data and Variable The data of this study is from a survey from March to June in the year of 2011 in the four big cities of Beijing, Shanghai, Guangzhou, Shenzhen of China. The questionnaires were sent by to the city's consumers through random sampling. A total of 6000 questionnaires had been sent 1017 valid questionnaires were collected 306 samples in Beijing, 305 samples in Shanghai,303 samples in Guangzhou, and 103 samples in Shenzhen. We designed the questions which can basically reflect the consumers' attitudes to organic banana.except the respondents demographic variables, the observed variables involved in the questionnaire using 5-point Likert scale.

9 Investigated Consumer s demographic profile Variable Definition Percent Variable Definition Percent Gender Age Children under age of 14 Male Female <35 >=35 No Yes 49.4% 50.6% 66.9% 33.1% 46.8% 53.2% Education Family Income Basic to high school 32.5% University and above 67.5% <80000 RMB >=80000 RMB 44.3% 55.7%

10 Observed variables and codes of Consumers' perception for organic bananas Observed variable Mean SD Y1 I would buy organic banana Y2 I have bought organic banana X1 Consumers self-report organic knowledge X2 Organic banana produced with strict water, soil, air and other environment request X3 Organic banana produced without the use of conventional pesticides, artificial fertilizers, transgenic technology X4 Nutrients of organic banana are more better X5 Taste of organic banana are more better X6 organic banana are more healthy and high quality X7 Organic banana can guarantee food safety X8 Consuming organic banana means protecting environment X9 Consuming organic banana can support agricultural sustainable development X10 Exist suitable places for supply organic banana X11 Easy access to information for organic banana X12 There are lots of types and quantity of organic banana in the market X13 Certification standard of organic bananas is strict X14 I trust about methods of producing organic banana

11 Factor Analysis Variable Factor loadings T-Value Factor (Latent Variable) X Organic X knowledge X X Attitudes X towards the X quality and X externalities X of organic X banana X Attitudes X towards X organic X banana X supply Cumulative contributio n CR AVE 12.84% % %

12 Structural model H1a Attitudes towards 品质与 quality and 外部性认知 externalities H2 Organic knowledge 概念认知 H1 Intention to purchase OB 购买意愿 H3a H3 Attitudes 供给认知 towards supply Fig. SEM model and hypothesis

13 Testing the measurement model Table Overall model fit, Reliability and Validity Fit indices Acceptable Index value χ CMIN/DF 1~ RMSEA < RMR < GFI > AGFI > NFI > CFI > IFI > AIC the smaller the better CAIC the smaller the better PNFI 0~ PGFI 0~

14 Results of hypothesis tests Organic banana purchase behavior Tab. 3 Results of structure model hypothesis test Prediction Parameters (Standardized value) T-Value Outcome H1:Organic knowledge Intention to purchase OB H1a:Organic knowledge Attitudes towards quality and externalities H2:Attitudes towards quality and externalities Intention to purchase OB H3:Attitudes towards supply Intention to purchase OB H3a:Attitudes towards supply Organic knowledge Supported Supported Supported Supported Supported

15 Results of SEM Model X4 X5 X6 X7 X8 X 品质与 quality and 外部性认知 Attitudes towards externalities X1 0.8 X X Organic knowledge 概念认知 Intention to purchase OB 购买意愿 Y1 Y Attitudes 供给认知 towards supply X10 X11 X12 X13 X14 Fig. SEM model chart of consumer organic food cognitive and purchase intention

16 Multiple-group analysis based on Consumer s demographic Tab. Results of Multiple-group analysis Gender Age Education Hypothesis Male Female <35 >=35 Low University H ** 0.13 * ** 0.16 * 0.41 ** H1a 0.14 * 0.42 * 0.34 * 0.48 ** ** H * 0.47 * * * H H3a Hypothesis Family income Children under age of 14 Low High No YES H * 0.48 ** ** H1a * 0.25 * 0.49 ** H * ** H H3a * **

17 Conclusion and limitations This study analyzed consumers organic banana decision-making process for a group of Chinese city consumers. Results provide evidence on factors that determine the intention to purchase organic bananas. Main results show that consumers attitudes towards organic banana, in particular towards the quality and externalities are the most important factors that explain consumers decision-making. Moreover, consumer s organic knowledge and attitude towards organic banana supply have a great influence on the intention to purchase organic banana.

18 Conclusion and limitations The Multiple-group analysis shows that consumer s gender, age, education, income and whether have kid have different influence on the intention to purchase organic banana. Consumers with high income and have child below age of 14 will be more willing to buy organic banana. The man have more knowledge about organic and more likely intention to purchase organic banana. Consumer with high education will have higher knowledge on organic,and present more positive attitudes towards the organic banana because they believe that organic banana are healthier, and is friendly to the environment.

19 Conclusion and limitations Consumer who have high income and have more positive attitudes towards organic banana and more likely intention to purchase organic banana. This study ignored the healthy diet and balance life of consumer, ignored more environmental attitudes, future studies should seek more important factors.

20 Group Members Group Leader Dr. Cunyu Li Dr. Yuerong Wei Dr. TaoDong Dr. Chunhua Hu Banana disease Breeding Organic banana Transgenic study Dr. Ganjun Yi Dr. Qiaosong Yang Dr. Ou Sheng Dr. Ruibin Kuang Mr. Xinjian Chen Molecular biology Breeding Banana disease Economics

21 Supported by The Common Fund for Commodities project Promoting Production and Marketing of Organic Bananas in Asia

22 Thanks for your attention!