Consumer Attitudes and Purchase Intentions in Relation to Organic Foods Essay

Abstract The aim of this study is to find out the three (3) solid variables forming the positive military position towards the purchasing the perfect regimen in Peninsula Malaysia, which eventu solelyy lead to the ultimate heading in buy the total fertiliserally-produced feed. The different variables argon focused on demographic characteristics on home base income, product attributes and lastly the perceived set to the guests. This study shows that the household income is seemingly appe ard to be an important predictor among the targeted partitioning in consuming thoroughgoing solid sustenance. total feed attributes such as pricing, availability and environmentally friendliness of such entire viands may watch discharger buying decision. runly, the perceived assess from the customers towards constitutive(a) food on its health effects, sensational appeal, nutrition-worth and belief of perceived benefits, lots play an important character in cultivating th e intention towards buying essential food. Introduction and Background of the Study Over the last both decades, in that location has been a remarkable increase in demand for thorough-produced food or products.Organic food is often seen and marketed as health-conscious food which contains fewer contaminants, more than than nutrients and well-nigh importantly having a positive effect on the environment. It is known that virtually of these attributes are difficult to quantify, with the contrary that some of investigateer has proved that they may cause such potential harm during the thorough production. The complete market back in 80s, while remaining a niche sector, has grown to be able to grab a share from the essence spending on food in some countries in the recent years.Organic fruit and vegetables are amongst the products which run through been expanding in the rapid production. The demand for entireally-produced sum total and dairy products has undergone the same r apid progress, with a corresponding increase in the need for organically grown forage and feed crops. This has led to a immediate growth in consumer demand whereby the organic food sales have managed to gain a significant market share in the conventional food industry. The market for organically produced crops and commodities has become more structured, looking at the increased number of countries which have adopted uniform standards for organic food production.The standardization has as well applied in the organic certification and labelling. While both the production and the marketing of the organic cultivation of temperate crops have developed, there is a elan to be seen whereby the developing countrys farmers are actively involved in the organic farming. Problem Statement and Importance of the Research Organic gardening industry, no doubt, has offers most of the developing countries a wide range of economic, environment, social and cultural benefits.Certifies organic product s have now been growing fast and in the spread over of entering the global market. Malaysia, on the new(prenominal) hand, is still in the starting spark-point in adapting the organic-food consumption while the developed countries such as North the States and Europe have already gained the biggest market share in this newest industry. Due to expanding markets and attractive charge premiums, Malaysia should invent and invest in organically-produced food, taking into consideration of motley significant variables which may form the consumer behaviour towards organic food.We would resembling to highlight that the ultimate goal of this study is to understand consumers motivations behind organic food products secures in order to enable organic producers to develop a more in force(p) strategic marketing plan. The results could be used for the marketing planning of organic food products to enable proper marketing strategies, a proper sales channel and promotion to be targeted to these companys of consumers. Research Questions The present study aims to answer the undermentioned questions What are demographic characteristics of organic food buyers? How do demographic characteristics affect consumer attitudes towards organic foods? How product attributes effect consumer attitudes towards organic foods? How consumer perceived determine check consumer attitudes towards organic foods? What is the relationship between consumers attitudes towards organic foods and their intentions to leverage? How can results of the study be applied by managers and marketers? Research Objectives.Regarding to the significance of the growing market of organic foods in the world, and to the previous studies on consumer attitudes towards organic foods and its effects on buy intentions in several countries (e. g. Taiwan, Thailand, United Kingdom, United States and Denmark) we intend to carry out such same studies in Peninsula Malaysia with objectives as the following To report th e descriptive analysis on the organic buyers demographic characteristics To diagnose the effects of demographic characteristics (specifically level of households income) on consumer attitudes towards organic foods. To determine effects of product attributes on consumer attitudes towards organic foods To investigate the relation of consumer perceived values to consumer attitudes towards organic foods To determine the relationship between consumers attitudes towards organic foods and their intentions to purchase To clarify implications for managers and marketers Literature Review Demographics petty(a)d on findings from previous research, demographic characteristics were evaluated as one of the major predictors in gaining intention to purchase the organic food in Peninsula Malaysia.According to Robinson R. and Smith C. (2002), the demographic of consumers consist of various characteristics namely the gender, age, household income and direction level. Each element has been contri buted 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 allow for 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 verify the results of earlier studies by Clark & Goldsmith (2006) and Im et al. (2003) proven that the intellectual practice on using the demographic characteristics such as household income distribution and domain specific innovativeness pass on be seen as strategic tools for market segmentation.In the Western countries, research has identified that the demand and willingness in spending on organic sinceres often affiliated closely with various socioeconomic and demographic variables (Wier et al. , 2008). In addition, Menghi (1997) found that the majority households with middle and higher income levels showed a greater tendency in purchase and consuming organic foods. However, it is shown that almost all of these studies are based upon hypothesized future behaviour rather than observed behaviour in both Denmark and UK.Hence, studie s have been carried out by researchers to further invent on the influences of demographic characteristics especially in household income in guiding the intention of buying the organic goods. Through the research it is revealed that higher disposable household income (approximated by total food expenditure) will lead to higher positive intention in purchasing the organic food. Consumers with a lower household income alongside with lower level of education are found to be least(prenominal) likely to have heard of organic agriculture (Roitner-Schobesberger et al. , 2008).On a contrary, those who have a higher income and hold an academic degree are more likely to be the target segmentation in purchasing organic products (Roitner-Schobesberger et al. , 2008). It is also mentioned that the correlation between the household income level is very much linked to the level of education as well. As mentioned by Robinson R. and Smith C. (2002), intended purchases of sustainably produced foods d id not differ for demographic characteristics such as household annual income educational attainment.Through the research carried out by Ross NJ.et al. (2000), they have suggested that consumers with a higher earning incomes were more likely to have purchased locally produced food, mainly focus on the organic consumption by various segmentations. Their research and findings were supported earlier by Govindasamy R. and Italia J. (1998) whereby the same results applied. Groups with a higher household income tend to have purchased foods produced with reduced pesticides. In UK particularly, social group is employed as an indicator of income brackets (Wier et al. , 2008).Research has revealed that the tendency in purchase the organic goods seem to increase in accordance to the given social status. However, the highest organic budget shares are observed for middle class households whilst shares in the upper middle class being in fact lower. Quite captivatingly, a quasi(prenominal) phenom enon is observed to be happened in Denmark as well. Organic Food Attributes Organic food attributes influence consumer buying decision. Several empirical studies have been performed on customer perceptual experiences of organic food attributes and how they formed the consumer attitudes towards food.In the present research, among different product attributes, we have selected price of organic food, environmentally friendliness of organic food and organic food availability. Price of Organic Food Organic foods are often of a price premium above conventional products. According to Roitner-Schobesberger et. al (2008) in Thailand the price difference between organic and non-labeled conventional vegetables in Bangkok varied between 50 percent and 170 percent and in some cases even 400 percent.However, in some countries such as Finland there were not significant premium prices for organic foods (Tarkiainen and Sundqvist, 2005). As Roitner-Schobesberger et. al (2008) pointed out that disre spect the price difference of organic and non-organic food, nearly 60% of the organic buyers said that the price of organic products was not a problem. In addition, non-organic buyers ranked some other(a) items as a reason of not purchasing organic food rather than higher prices.Chryssohoidis & Krystallis (2005) claimed that while 100 percent of people would prefer organic to conventional products with the assumption of similar price, this percentages dropped by only 20 percent when the same question was posed regardless the higher price of organic food. In other words, higher price is an important obstacle for a limited percentage of consumers. Roitner-Schobesberger et. al (2008) found out that in Bangkok men were more likely to purchase organic foods than women and concluded that it might be due to the reason of men being willing to pay a higher price premium for organic products than women. as well as, a study in Klang Valey, Malaysia showed that women werre more likely than me n to agree that they would purchase more organic foods if they were less expensive (Ahmed, 2010). Additionally, dour users were on average stage whereby they are willing to pay higher price premiums than medium and light users (Wier et. al, 2008). Environmentally friendliness of organic food Consumers are getting more conscious and concerned with the consumption of chemical substance used in farming and preserving environment is becoming a strong attitude among consumers.According to Tarkiainen and Sundqvist (2005), subjective norms effect on attitudes has been mainly found in behaviors, that involved some kind of ethical decision, and also buying organic food can be seen as ethical decision reflecting environmental concern. In addition, perceived quality is associated with environmentally friendly practices (Ness et. al, 2009). The perception of organic food products as environmentally friendly was a common intuition and has been examined in several studies (Ahmed, 2010 Honkanen et. al, 2006).It is believed that when the consumers have more concern about their health and environmental protection, they will be more likely to have a positive attitude to organic foods (Ness et. al, 2010). Honkanen et. al (2006) found that bionomicly oriented consumers were more likely to form intentions to purchase and consume organic food. In other words, the more people are concerned about environment, the more positive attitude they have towards organic food. Organic Food Availability Lack of organic food availability and variety in store is considered as one of the barriers to consumer purchase.Fresh vegetables (which include fresh herbs) were considered the most widely available organic product group rather than other organic foods (Roitner-Schobesberger et. al, 2008). Chryssohoidis & Krystallis (2005) stated that limited availability was the main factor that hinders organic purchasing. Although correspond to Roitner-Schobesberger et. al (2008), in Thailand, majority of organic buyers were satisfied with availability of organic products. Most of them reported that they would like to buy more organic products, especially a wider range of vegetables. Value to the Customer.In every product that consumer purchased and used, they in turn are expecting value from it. Value can be defined as a benefit that consumer is receiving by using a product. Benefits here mean sensory appeal of the product, taste, fun, freshness, quality and healthiness of the products. These are some main reasons that encouraged consumer to purchase the organic food. The value may vary from one consumer to another however there will definitely be one value that effect the buying attitude which motivate the buying intention of consumers. Health Effect of Organic FoodSeveral perceptions contributed to health attribute include the reason of being good for health, good for children, not containing pesticides, high in fiber, natural and nutritious and safer to eat (Roitner-Schobesberger , et. al, 2008 Saher et. al 2006 Lockie et. al, 2002 Ness et. al, 2009). The perceived potential hazards of modern agricultural practices such as the use of pesticides and their residues in food were perceived to be associated with long term and unknown effects on health (Miles and Frewer, 2001Wilkins & Hillers, 1994 Williams & Hammit, 2001).Saher et. al (2006) revealed that there is very slim scientific support for the common beliefs that organic food would be more healthy or nutritious than regular foods, but the belief that they have these properties be quite strong in consumers mindset. The claim is debatable whether marketers can use the health claim for marketing purposes because most of the research concluded that there was no evidence that organic food was healthier or more nutritious than conventional food (Honkanen et. al, 2006).However, most studies in this area suggested that consumers perception of organic food as a healthy nutrition is one the most significant motive s for buyers. Lockie et al. (2002) pointed out that health was the one aspect consumers are least willing to compromise. Roitner-Schobesberger et. al (2008) in Bangkok, Thailand, examined the motives behind organic food purchase and pointed out that the most important motive was the expected positive health effects. Similarly in Malaysia, organic buyers believed that organic food was healthier compared to conventional grown food (Ahmed, 2010).In Thailand, the health aspect was closely associated with the residues from synthetic chemicals used in agriculture (Roitner-Schobesberger et. al, 2008). In fact, organic products often have a lower level of pesticide residues (Baker et al. , 2002). Lockie et. al (2002) revealed that although price was an important factor, organic consumers consider health has appeared as a more significant factor for purchasing organic food in Australia. These organic food consumers also believed that industrial methods of food touch act a threat to custome rs health.Another research by Schifferstein & Oude Ophuis (1997) illustrated that well-being was rated among all other motives by organic food buyers. On the other hand, Tarkiainen and Sundqvist (2005) by examining specific organic products (bread and flour) claimed that health consciousness did not explained the general attitudes towards organic food, although they believed this results might be different by examining different organic products. sensory Appeals Sensory appeals of organic food are part of the factors that provides value to customer.Sensory appeals include the taste, odor and also the texture of the organic product (Prescott et. al, 2002). Sometimes sensory appeals of the organic food need to be combined with the non-sensory factors such as organic food related expectations to create a value to customer which will affect their attitude towards buying organic food (Prescott et. al, 2002). Sensory factors are also influenced by cultures and background of consumers. Fo r example, consumers from Western countries eat less spicy food compared to those from Asia.Spicy organic food might produce high value to consumers in Asian countries compared to Western. Intrinsic cues or sensory appeal that are associated with physiologic characteristics of the product such as taste, size, color, appearance, smell, feel and flavor were commonly used as indicators of quality on the organic food (Schifferstein et. al,1997). gauge is also value that consumers experiencing by consuming an organic food. Better sensory appeal of organic food will portray a disclose quality which will influence the attitude of purchasing an organic food and later increase the intention of buying the organic food.One of the most prominent sensory appeals that yield more value to consumer is taste. According to Roitner-Schobesbergeris et. al (2008), taste was the third important motives that consumers purchase organic food (Roitner-Schobesbergeris et. al, 2008). Others studies also emp hasized that many organic food buyers believed that organic food products taste better than conventional food even if sensory evaluations have yielded inconsistent results (Fillion and Arazi,2002 McEachern and McClean,2002 Zhao et al. ,2007). Perceived Value.One of the studies conducted in eight-spot countries concluded that man-to-man attitudes towards buying organic food are primarily based on the belief about the benefits (Thogersen, 2000). Benefits or value to consumers such as healthy, taste better and environment friendly supersede all the other factors such as belief about the cost. The same proven in one of the study conducted in Klang Valley. Most of the respondents reported that they choose to buy organic food products because they perceived organic food as very healthy, fresher and natural (Bayaah Ahmad et.all, 2010).As such, value of organic food towards customers effect their attitudes towards buying which will motivates their intention of purchasing the organic produ ct. Consumers also value organic food as nutritional food since it is produced using traditional method whereby the original nutrition from the food is preserved. pabulum belief was one of the reasons that made people appeared to have different food styles and often communicate themselves as having food adventurousness or pickiness (Chen, 2007).Organic food adds value to consumers who has such belief and it will influence their intention of consuming it by affecting the buying behavior. Besides, Chen (2007) points out that an individuals personal interests or traits act a part in establishing personal food election criteria through the values held by the individual. These values comprise nutrition beliefs, weight control concerns, and so on. For instance, people seem to have different food-styles and often express themselves as having food adventurousness or pickiness.Another important motive to purchase organic food as reported by Roitner-Schobesbergeris et. al (2008) is the con sumers search for new, trendy and attractive food products. Attitudes towards Organic food and Intention to purchase Basically, consumer attitudes are found to be the most important predictor of intention to buy (Honkanen et. al, 2006). Several studies have found that higher perceived product quality leads to more positive re-purchase intentions (Bou-Llusar et. al, 2001 Hult, & Kandemir 2004 Tarkiainen & Sundqvist, 2005).Chen (7007) highlighted that if the consumers attitude towards organic foods is positive, the consumers attitude to purchase organic food will be more likely to be positive. This is also consistent with another study performed by Honkanen et. al (2006) indicating that relation between attitude and intention is positive and quite strong, indicating that consumers with positive attitudes towards consumption of organic food are more likely to form intentions to consume such food, therefore converting positive attitudes to intentions. Methodology Theoretical Research Fr amework pic Figure1.Theoretical Research Framework Hypothesis Development Hypothesis 1 there is a relationship between demographic characteristics of consumers and their attitudes towards organic foods. Hypothesis 2 There is a relationship between organic food attributes and consumers attitudes towards the organic food. Hypothesis 3 There is a positive relationship between values of organic food to customer with attitudes towards buying organic foods. Hypothesis 4 When the consumers attitude towards organic foods is positive, the consumers intentions to purchase organic foods will be more likely to be positive. Research Design.The questionnaires are only intentional in English since the respondents are assumed to be relatively high educated they will be able to answer the questions without any difficulties. Furthermore it will help to keep the original meaning and understanding that respondents perceived to have towards the questions. Types of questions in questionnaires are mostl y closed ended question and only two open ended question. This will only consume little time for the respondent to complete the questionnaire which will encourage them to participate in this study. There are three main categories in the prepared questionnaires.The questions in the first category are more towards understanding demographic details of the respondent such as on the age, income level, ethnicity, religion and educational level. This is useful to confirm the background of the organic food consumers. There are also questions on the product attributes which the respondents are asked to identify what are the main attributes that attract the purchase and also to determine whether this factor have a positive effect towards consumer attitude on organic food. Last part in the questionnaires is designed to understand the value of organic food to customers.All these questions are to demonstrate four hypotheses of this study. Data Collection The target commonwealth consists of org anic food buyers in Peninsula Malaysia. In order to carry out the sampling Peninsula Malaysia is divided in to 3 major regions namely Northern, Central and Confederate region. Northern region will be represented by Penang, Central region will be Klang Valley and Southern region of Peninsula Malaysia is represented by Johor Bahru. These three areas are chosen based on the economic development and availability of the organic products.From each region shopping complexes and supermarkets that provide organic products are identified. By using random sampling, three shopping complexes and supermarkets in urban areas are selected. Since target respondent with higher educational level and purchasing forefinger are scattered around these urban areas, these will be perfect places to conduct this research. Those three supermarkets and shopping complexes are ensured to be far from each other so that the salt away samples will be more accurate in representing the population in each region.Tot al sample size comprises of 540 individual respondents is collected using convenience sampling and respondents will be approached randomly. Since this study is conducted in large scale, convenient sampling will be more cost effective compared to other types of sampling. Furthermore conducting other types of sampling will be time consuming and the accuracy of the collected samples to represent the actual population will be questionable. In order to collect the info, 60 self-administered consumer questionnaire surveys are distributed in each shopping complexes which will result in 180 questionnaires from each region.Considering the validity of the data, we are expecting a total of about 500 questionnaires to be usable in the later part of data analysis. Although there is no way of knowing if those include are representative of the overall population, the survey is still expected to give a first overview of relevant issues and to allow to derive insights into the perception of organic food buyers in Peninsula Malaysia. Data Analysis After data is collected, data will be edited and coded. Editing data is very essential part of data analysis especially when researches involve open ended questions.Editing is done immediately after data is collected so that the respondent can be contacted if any clarification needed. The edited data are identified through usage of different fond and colors. Coding is done before data processing is conducted. Since most of the data collected involve ordinal scale, coding becomes prudent. By doing this data accurately keyed in and avoid wrong interpretation of data. Base on the three sections in the questionnaire, data is also coded in three main groups. Data processing is done using a software programme called SPSS version 17.First of all the edited and coded data is checked and scanned through. Wrongly entered and coded data will be identified using the software through methods like identification of the maximum value. 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