Consumer behaviour Perspective towards Organic Products

Exploring Consumer Behavior and Marketing Infrastructure for Organic Products

by Rahul Singh*,

- Published in Journal of Advances and Scholarly Researches in Allied Education, E-ISSN: 2230-7540

Volume 19, Issue No. 5, Oct 2022, Pages 283 - 288 (6)

Published by: Ignited Minds Journals


ABSTRACT

Increasing organic formation in the country is dependent on the availability of organic input and output. To improve organic production in India, a more sophisticated marketing infrastructure is urgently required. This paper made a sincere effort to explore how Indian consumers feel about organic products and their marketing. Based on the data, it appears that the majority of consumers, especially those living in cities, have a strong preference for organic food. Demand for organic products is rising, but supply is extremely low because of the area's poor marketing of organic goods. Many factors contribute to this problem, including a dearth of organic farmers, a retail sector with too few outlets, a failure to educate consumers, and so on. If both farmers and the government in India are serious about promoting organic farming, then the country's marketing infrastructure will flourish. Many people's perspectives on products and services have shifted as a result of the COVID-19 epidemic. They are becoming more and more cognizant of the perils of disregarding Earth's needs. There was already a trend toward greater environmental awareness and sustainability before the pandemic, but the spread of COVID-19 has expedited this trend and inspired many more individuals to take action. To that end, the health problem may increase demand for organic foods, which are those that are not genetically modified and are instead grown using sustainable farming practices. Understanding the habits of these organic food purchasers is crucial for stores looking to cater to them.

KEYWORD

Consumer behaviour, Organic products, Marketing infrastructure, Demand, Supply, Organic farming, COVID-19, Environmental awareness, Sustainable farming practices

INTRODUCTION

Recent years have seen a shift in consumer preferences, particularly in the realm of food. This is due to the widespread belief that consuming organically grown foods is better for one's health and the environment. The goal of organic farming is to produce nutritious, high-quality food without the use of any artificial chemical inputs. As a result, organic farming has major positive effects on the economy and social harmony in rural regions, as well as on environmental protection and public health. Concerns about food safety, human health, and the environment have raised the interest of consumers and governmental entities in organically produced foods, particularly in industrialized countries. In spite of consistent expansion over the past decade, organic food accounts for only a very modest portion of the overall food market. Switzerland, Austria, and Denmark, all of which have well-developed organic industries, nonetheless only use organic products for around 5% of their overall food supply [1]. Several earlier research demonstrated that customer beliefs about organic food considerably affect purchase decisions [2]. Promoting organically produced goods requires a well-rounded marketing strategy that can only be developed with an in-depth familiarity with the preferences and habits of today's food buyers. Beyond cleaner production, efforts should also focus on sustainable consumption [3] if sustainable development is to be achieved. In order to be environmentally responsible, consumers must only purchase goods with lower production pollution [4]. In recent years, organic farming and commerce have grown rapidly in India. Similar to other regions of the developing world, this approach is highly valued for its potential to promote long-term growth. Organic farming in India is gaining momentum thanks to support from consumers, manufacturers, wholesalers, exporters, and retailers. In the recent decade, there has been a dramatic rise in the demand for organic goods [5]. By definition, organic products don't contain any synthetic chemicals or fertilizers in their production process. To be certified as organic, a product must have been grown without the use of synthetic fertilizers or pesticides and must have had minimal to no impact on the surrounding ecosystem during its development. Its use safeguards the health of everyone involved in its production, from farmers to factory workers, by reducing their exposure to harmful chemicals. More than that, organic farmers worry about the next generation by focusing on resource conservation. The consumer and the planet both win when organic products are used. The consumer sees benefits in the greater quality of organic products, the absence of potentially in production lessens the impact on wild animal and plant populations. In order to be produced, organic goods demand more labor, which in turn creates more job opportunities. As a result, they are good for the environment and help with ecosystem preservation and sustainable rural growth. Customers' everyday experiences with the phrase "ecological" are giving rise to novel requirements that businesses are scrambling to meet [6]. As a result of growing concerns about the health of the planet and their own bodies, consumers have been actively looking for non-traditional options to replace their traditional product needs in recent years. Many people talk about the fourth industrial revolution, which is spurred on by technology progress. Companies now face a new problem as a result of rising public awareness of environmental issues like overfishing and climate change: encouraging the growth of organic products to meet surging consumer demand. As demand for organic goods grows, retailers are responding by stocking more of them. There has been a rise in the availability of organic foods in recent years, with an uptick in both supermarkets and specialty shops. Figure 1 displays the evolution of organic production (by number of operators, which includes producers and merchants).

Figure 1: The development of organic production (1991–2019)

The key role organic agriculture plays in achieving the Sustainable Development Goals (SDGs) of the 2030 Agenda for Sustainable Development further emphasizes the relevance of organic farming. Organic farming aids in the achievement of eight of the thirteen targets. It is anticipated that the implementation of these goals will hasten organic output in the years to come. Adopting industrial ecology, which centers around shifting production practices toward those that cause less pollution, will be important to the effort to find long-term solutions. in the direction of the emerging "science of sustainability," to put it briefly.

ORGANIC FARMING IN INDIA

Over the past few decades, there has been a profound shift in how agriculture and the marketing of food are viewed and practiced around the world. Now it's the "market" that decides what crops farmers should plant and when they should plant them [7], when in the past this decision was made based on the seasons and flavor. Many diseases, including cancers of many types and weakened immune systems, have increased in prevalence as a direct result of pesticide and other chemical residues in food and a general decline in food quality. The environmental impact of agriculture's widespread commercialization has been substantial. The widespread application of pesticides has resulted in a catastrophic accumulation of toxic chemicals in our ecosystem, including in the ground, water, air, wildlife, and human bodies. Fertilizers boost production in the short term, but they have a long-term negative impact on the ecosystem by polluting ground water and water bodies after leaching and running off [8]. Germplasm of local and indigenous types is in danger of being lost forever due to the popularity of hybrid seeds and the rise of monoculture. The goal is increased "productivity." We have made a serious misstep toward unsustainable growth in our quest to increase global food production. There are already visible results, such as an increasing suicide rate among farmers, the horrific aftermath of pesticide spraying at a government-owned plantation in Kerala a few years ago, and the contamination of bottled water and carbonated drinks with pesticides. The wider picture, which is rarely reported on, is that millions of people still go hungry, and even in places where they have enough to eat, it could be fatal. Yet, governments and corporations involved in agriculture (such as seed and pesticide manufacturers) offer an optimistic vision of the future. Another way in which this tendency has hurt the world's farmers is by decreasing their economic prospects. To solve this problem, we turn to organic farming. All of these issues can be solved by switching to organic farming. Not only does organic or natural farming have far-reaching, long-term benefits for the environment and food quality, but it also considerably aids a farmer in becoming self-sufficient in his requirements for agro-inputs and lowering his costs. There is a mutually beneficial interaction between chemical farming and the agricultural and food distribution networks [9]. India has a long history of using organic farming methods. Before the British took over, India's magnificent civilization flourished on the back of organic farming and was one of the world's wealthiest nations. Everything grown in traditional Indian farms was grown using organic methods; all of the fertilizers, insecticides, and other agricultural inputs were made from plant and animal materials. India's economy relied heavily on organic farming, and the cow was and still worshiped as a deity. In addition to milk, bullocks, and manure used as fertilizer, the cow was an indispensable resource [10].

ADVANTAGES OF ORGANIC FARMING FOR SMALL FARMERS

1. High premium: The average markup for organic produce and groceries is about 30% over its non-

2. Low investment: Capital expenditures are often lower in organic farming than in chemical farming. In addition, the yearly costs incurred by the farmer are low because organic fertilizers and insecticides can be manufactured locally. Climate, pests, and diseases are all examples of external elements that have a significant impact on agriculture. Moreover, the vast majority of small farms rely solely on rainwater. Therefore, small farmers that practice organic farming are less likely to go bankrupt in the event of a crop loss due to natural disasters, pest or disease attacks, or erratic rainfall [11, 12]. (It's important to remember that going from chemical farming to organic farming could be expensive.) 3. Less dependence on money lenders: Since organic farming does not necessitate the use of chemical inputs—which can be rather pricey—many small farmers in the world are able to avoid having to borrow money from financial institutions. Therefore, a crop failure does not put an organic farmer in a precarious financial position or require him to take drastic action. 4. Synergy with life forms:In order to achieve success, organic farmers must work in harmony with the many species present in their fields. This synergy is simple to grasp, and so straightforward to apply, for small farms. 5. Traditional knowledge: Local communities of small farmers often have a wealth of ancient wisdom. Most of this conventional wisdom is useless when employing chemical agricultural methods. But when it comes to organic farming, farmers can make use of that old wisdom. And in organic farming, small farmers don't have to rely on the chemical industry experts.

Table 1: Top Indian Organic Farming Produce

OBJECTIVES OF STUDY

This research aimed to learn about how people in the study area feel about buying organic food, how much of it they consume, and what kind of market potential organic food items had.

METHODOLOGY

who had been selected based on Simple Random Sampling methodologies and Organic product retail outlets and Organic product marketing agencies.

Sample Design

The following sample size will be used to gather primary data about the demand factors in organic products and the consumer's perception of organic products in Mysore city. The Mysore customer response to an organic food product will be analyzed using a hybrid of parental analysis and SPSS.

RESULTS AND DISCUSSION

Table2: Gender-Based Respondent Categorization

Table 1 shows that males accounted for 46% of responses, while females made up 54%. Consequently, most men who responded bought organic foods.

Table 3: The Age Distribution of Respondents Figure 1: Age of respondents

In table 2, we see that of the 50 respondents, 6% are between the ages of 15 and 25, 22% are between the ages of 25 and 35, 28% are between the ages of 35 and 45, 20% are between the ages of 45 and 55, and the remaining 24% are above the age of 55. Those in the age range 35–45 have a high level of

Table 4: Respondents' occupational categorization Figure 2: Occupation of the Respondents

Table 3 reveals that, out of the 50 respondents, 20% are self-employed, 24% are housewives, 48% are professionals, and 8% are students. This suggests that, in the study area, professionals are more likely to purchase organic food.

Table 5: Motivations for Buying Organic Food Products Figure 3: Motivations for Buying Organic Food Products

Table 6 reveals that out of 50 people surveyed, 60% prefer organic food because it's better for their health, 20% like it because of its quality, 4% like it because of the low price, and the remaining 16% like it because the organic shop has good service.

Table 6: How Long Have You Been Considering Changing to Organic Diet? Figure 4: Consumption of organic Product

Table 5 shows that 24% of respondents have used organic food products for less than a year, 12% have used them for two years, 20% have used them for three years, and the remaining 44% have used them for more than three years.

Table 7: Buying a Variety of Organic Food Items Figure 5: Buying a Variety of Organic Food Items

Because fruits and vegetables spoil quickly, the majority of respondents (38%) buy them frequently. Meanwhile, 36% of consumers rely solely on organic options, 14% of shoppers stock up on cereals and pulses, and only 12% drink milk.

Table 8: Providers of organic goods and services information to the respondent Figure 6: Providers of organic goods and services information to the respondent

recommendations from friends and family, followed by direct mailers (22%) and reference websites (8%), newspaper ads (6%), and television commercials (2%). As a result, word about local organic markets will spread more quickly through personal networks like friends and family than it will through mass media.

Table 9: Consumers' priorities in selecting high-quality organic goods Figure 7: Consumers' priorities in selecting high-quality organic goods

Table 8 demonstrates that while 62% of respondents value standard grade organic items, 30% value the most recent/advanced organic products, and the remaining 8% value those sold by intermediaries.

CONCLUSION

The market for organic food items is highly influenced by consumer preferences. To keep up with the evolving shopping habits of urbanites, the organic food industry must be agile and creative in its marketing strategies. For a long time, people downplayed the significance of organic foods. As a result of concerns for the health of the environment, more and more people are opting for organic foods over those produced using traditional farming methods. People were cognizant of organic food product representations and availability, but were not necessarily committed to them. The respondent's interest in organic foods is undeniable. To be effective in selling organic food items, marketers need to devise campaigns that are both practical and moral. A huge breakthrough in organic farming is waiting to happen in India, and its potential is enormous. In order to expedite the growth of organic farming, the government must make efforts to streamline regulatory systems for improving organic output, and local consumers must become more aware of the benefits of buying organic food. Everybody pitches in to help the farmer raise the organic food. When it comes to the purchase of organic products or any product, for that matter, consumer behavior is the deciding factor. in order to meet rising demand. This would benefit farmers, the environment, and the economy as a whole. There has been a huge uptick in organic product vendors. If they want to keep up with the shifting shopping habits of city dwellers, organic food marketers will need to get creative and flexible. Products grown organically are in high demand but supply is low. The price premium of 5–50% that consumers are ready to pay for organic products can be understood as an investment in people's well-being. Acquiring more information on organic products is important since it can shape consumers' opinions and preferences, which in turn can affect their purchasing decisions. At the moment, vegetables, fruits, and beans are the commodities in most demand and highest price, with the price of vegetables, especially leafy vegetables, being significantly higher than that of regular vegetables. However, health and nutritional value, flavor, and freshness and general appearance are the most essential quality qualities that influence consumers' choices for organic products. Consumers are less likely to make a purchase when there is a little and inconsistent supply, a high price tag, and few opportunities to learn about and try the product.

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Corresponding Author Rahul Singh*

Qualified NET in Commerce in Dec 2018