Research Proposal
Consumer Attitudes and Purchase Intentions in Relation to Organic Foods in Peninsula Malaysia
Abstract
The aim of this study is to find out the three (3) significant variables forming the positive attitude towards the buying the organic food in Peninsula Malaysia, which eventually lead to the ultimate intention in buying the organically-produced food. The different variables are focused on demographic characteristics on household income, product attributes and lastly the perceived value to the customers. This study shows that the household income is seemingly appeared to be an important predictor among the targeted segmentation in consuming organic food. Organic food attributes such as pricing, availability and
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According to Robinson R. and Smith C. (2002), the demographic of consumers consist of various 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 seemingly significant and being the focus in this research. This will eventually lead to the desired intention in buying such products for daily consumption.
Level of Household Income
Whilst referring to the studies done in the US, it is seemingly apparent that the demographic variables which herby refer as the income distribution, is significant predictors (Bartels & Reinders, 2009). The research on this particular subject has proven 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 Germany as well (Bartels & Reinders, 2009). In Germany, demographic variables such as household income distribution have played an important 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 Western countries. These findings
The demographic, economic and the socio-cultural segments would be the most relevant segments to Whole Foods Market. These segments have a direct impact on the profitability, sustainability and survivability of Whole Foods Market, and the organic food industry. The relevance of the demographic segment stems from the fact that the age structure, income distribution and population size are important factors which will influence the demand for organic products. The economic segment is relevant, as an affluent population will continue to drive and sustain demand for organic products. The socio-cultural segment is another relevant segment, where attitudes about quality of life,
Over the last few years, awareness of organic food has risen. Due to this, the demand for organic food is a factor which is influencing the farmers to switch to use this technique, and it is being sold in specialty stores and conventional supermarkets. Organic products contain numerous marketing claims that it is healthier, it offers more value, and the farming is more environmentally friendly than traditional foods, so, how does one determine if organic is the way to go? Some argue that there is evidence that supports and demonstrates why organic foods and farming are better overall, while others insist that conventional foods and agriculture can offer the same benefits as going organic. There is no right or wrong answer. Within this
Sales of organic food have risen steadily over the past couple of years, reaching nearly $30 billion in 2011, or 4.2% of all U.S. food and beverage sales, (Adams). Many people believe that organic foods are ultimately the better choice when it comes to health due to the absence of pesticides and hormones. But other people—especially those whose food budgets may be more defined—wonder if organic food is really worth the inflated price tag. Despite the price, Organic foods are worth producing and consuming rather than conventional foods due to the immense benefits they provide.
But as consumers are only willing to pay the extra money for organic food mainly for any health benefits they associate with organic foods, such health benefits should be significant enough to warrant this inflated price. Studies demonstrate that the advantages of organic food are relatively small and even some disadvantages were found. Although correlations were found between a few health benefits and eating organically (reduced risk of non-Hodgkin lymphoma in subjects who eat organic foods more and mitigation of allergic dermatitis from consuming organic dairy products), these correlations were the only ones found amongst hundreds
In regards to income, more specifically, 35% of people considered as organic consumers earn more than $50,000 as opposed to the non-organic consumer which comprises a total of 30%. Finally, taking into account the geographic location of the common organic consumer, the majority of them are concentrated in the Western and Midwestern regions of the United States (“Marketing”, 2011). I think you will find that all of these elements combined will be of great help in targeting our potential market for organic products.
Furthermore, Shapin was informative, argumentative, and logical throughout his essay. In “What Are You Buying When You Buy Organic Foods”, by Steven Shapin, his main goal in the essay proves targeting both organic and non-organic consumers to understand the controversy of buying organic products. His points comes across clear and allows the readers to follow along without confusion. Shapin’s points in targeting bigger organizations in regards to the industry, health, and the virtue proves his point that buying organic food proves not always having the best
Organic farming began just as the effects of the Great Depression waned in the United States, and has seen a dramatic increase in popularity most recently (AG). The sales of organic food increased by about twenty percent a year throughout the nineteen nineties (Marcus). That is over ten times the rate of increase that conventional food experienced during the same period of time (Harris). As recently as twenty eleven, about seventy-eight percent of American families admitted to routinely purchasing organic food (Organic). Organic food sales jumped from three point five million in nineteen ninety-seven, to thirty-one million in twenty eleven (Organic). However, while organic food may seem better than conventional food, numerous studies have shown that it is not distinguishably more healthful, nutritious, palatable, or safe.
The cost, productivity, time, skill, and spoilage of the food play a major part on the decision of buying organic foods. The biggest disadvantage to organic food is that it’s so expensive. “Anything that makes fruits and vegetables more expensive may increase cancer.”(blogactive 1) The USDA organic certification and labeling have very strict rules therefore it makes growing organic crops harder. The USDA method is very different than conventional industry farming methods. The increase in popularity in organic foods makes bigger farms and we will use a lot more fossil fuels and other resources. Another reason some families don't want organic food besides the fact it’s expensive, is it spoils faster. In the USDA no preservatives are a requirement therefore organic food spoils faster. This can cause a problem for consumers and in stores because the food is usually transported a significant distance. If the cost of organic products became less expensive people would realize organic is better. Therefore the popularity will grow and there will be a higher demand. The price will lower making organic food affordable and the productivity will
Thesis: Choosing to purchase and consume organic food is a smart and healthy choice for you and your family.
These factors represent the culture of the society in which the organization operates with in. Change in social values towards healthy livings has adjusted purchasing behaviour and now people are more focusing towards organic produce. For this reason organic domestic retail sales have increased by more than 50% in the last two years from 623 million to 947 million (Keith, 2012). Availability and distribution of this healthy food have increase rapidly. Woolworths, Coles and Aldi all over Australia stock a range of private label goods.
Barlow, B., Hemminger, L., and Schlegel, B. (2006). Is Organic Food Worth the Extra Cost? Retrieved from Environmental Health Perspectives website: http://www.ehponline.org/docs/2006/114-2/ss.html
The third study also indicates the existence of possible external variables given the location in which it was conducted. According to the text, “the researchers stood outside a small organic specialty shop and interviewed 100 customers as they exited the shop” (pg. 63). Based on the choice of location, it can be argued that the results of this study mainly coincide with the preferences of consumers with a high interest in organic products.
Although organic foods are found in nearly every grocery store, the average person is unable to differentiate between organic and non-organic food products. Many consumers purchase organic products in the hopes of gaining positive health benefits. (Chhabra, Kolli, et al “Organically Grown Food Provides”) “The current demand for organic foods outstrips the domestic supply, causing retailers in the United States to import $2 billion worth of organic foods annually.” (Crandall, Seideman, et al. ”Organic poultry: Consumer perceptions”) In this paper, I want to define what it means for food to be organically produced, while also exploring the requirements necessary to deem a product ‘Organic”.
This academic study considers different factors that can influence the quality of organic food, such as soil quality, weather condition and length of time. Walter Crinnion also concludes from his analysis of previous studies and his own that organic food does provide greater levels of vitamin, minerals and antioxidant phytochemicals. This study will be helpful to my research since I want to include different factors affecting the nutritional value of organic food, so that I can stress the importance for restauranteur to recognize these factors before deciding to buy organic