A STUDY ON THE CONSUMERS' PERCEPTION TOWARDS ORGANIC FOOD PRODUCTS WITH SPECIAL REFERENCE TO KOLLAM

Research Paper

Commerce

E-ISSN No : 2454-9916 | Volume : 4 | Issue : 5 | May 2018

A STUDY ON THE CONSUMERS' PERCEPTION TOWARDS ORGANIC FOOD PRODUCTS WITH SPECIAL REFERENCE TO KOLLAM CITY Athena Prince Research Scholar, P.G. Department of Commerce and Research Centre, Mahatma Gandhi College, Kesavadasapuram, Thiruvananthapuram, Pin: 695004.

ABSTRACT There has been a growing awareness and preference for organic food products around the globe these days. Today, Organic food products are gaining more acceptance and preference over inorganic food products because of the increasing concerns about health and safety. The present study aims to study the consumer's perception towards the organic food products, the reasons contributing to the purchase of organic food products, problems faced by the consumers of organic food products and their level of satisfaction with the purchase of organic food products. The data was collected from a sample of 31 organic consumers in Kollam City of Kerala with the help of a structured questionnaire. The study found out that the main reason for the purchase of organic food products by the consumers was because they are considered to be safe. High price was the main problem faced by the consumers of organic food products. The study also found out that majority of the consumers are very much satisfied with the purchase of organic food products. The study suggests that proper awareness of the benefits of organic food products must be made to increase the number of organic food products and necessary steps must be taken by the government to increase the production and distribution of organic food products. Certification and labelling of organic food products are also suggested.

KEYWORDS: Organic food products , Certification, Labelling.

INTRODUCTION: We are all leading a hectic life these days. Due to the scarcity of time, changes in the lifestyle, tastes and preferences in dietary habits, there has been an inclination towards conventional food products which are readily available in the supermarkets such as vegetables, fruits, dairy products, meat products and so on. Conventional vegetables and fruits are those which are grown with the application of fertilizers and pesticides and conventional meat products and dairy products are those which are produced from animals which are raised by giving growth hormones and antibiotics. Initially, People were not concerned about the safety and quality of conventional or inorganic food products and the implications these conventional food products will have on their health. With the drastic increase in the growth of lifestyle diseases, like cancer, heart diseases, obesity, people are starting to replace the consumption of conventional food products with the organic food products.

According to the recent “World of Organic Agriculture Report 2018” published in February, India ranks first in having the largest number of organic producers in the world . According to the statistics, there are 835,000 certified organic producers in India , and it accounts to more than 30 per cent of total number of organic producers (2.7 million) in the world¹ . Organic food products are gaining more popularity because they are natural, safe from application of harmful pesticides and fertilizers, good for health, have more nutritional value and are environment friendly. Organic food isn’t a new concept. It is in fact the result of transformed mindset about healthy food habits and can be considered as the return to the traditional food and natural food habits that man have been following since ages.

Before the industrialisation of the agriculture, traditional and natural ways of cultivation were employed. But in order to meet the requirements of the increasing population around the world, the need to control the crops from pests and diseases, man switched his agriculture practices to chemical farming which involved the intensive the use of chemical fertilizers , herbicides, insecticides and pesticides , plant growth regulators and low crop rotation. In the case of animals and poultry, they were raised by giving growth hormones, and antibiotics.

The chemical farming though considered to be good at first began to show its true colours by negatively impacting the environment, ecosystems, bio diversity, soil and water resources and by affecting the health of the people. In the context of this situation, the concept of organic farming started gaining importance.

Organic farming can be considered as a transformation and innovation of the traditional farming methods which are environment friendly. Organic farming encourages those farming methods, techniques and systems which are environment friendly and which maintain the original, natural quality and features of the food products. They include the use of natural and eco friendly methods such as green manure, composing, crop rotation, biological pest control , legumes for nitrogen fixation and so on. In the case of raising livestock and poultry for meat, dairy and eggs they are raised under the natural conditions and feed. A key aspect of the organic farming methods is the strict prohibition of ‘genetically modified’’ plants and animals.

ral and traditional ways which comply with the norms and standards of organic farming. Even though the standards of organic farming vary worldwide, certain general features of promoting the ecological balance , preserving the biodiversity remains the same. In short Organic food produce includes those which are produced without the application of chemical fertilizers, pesticides, ionising radiation and genetically modified organisms (GMO). Organic meat, dairy products and poultry products come from those animals which are raised without giving growth hormones or antibiotics. They are minimally processed without artificially added food preservatives.

In India, the certification mark used for organically farmed food products which are manufactured in India is termed as “India Organic” [2] and it certifies that an organic food product conforms to the National Standards for Organic Products[3] established in 2000. The standards are for ensuring that the food products and materials used are free from chemical fertilizers, pesticides and hormones. The “India Organic” certification is issued by testing centres accredited by the Agricultural and Processed Food Products Export Development Authority (APEDA).[4] under the National Program for Organic Production of the Government of India.[5][6]. Ever since 1990s there is an increasing demand for organic food around the world. In India, organic farming is gaining popularity and is being practiced in the states of Sikkim, Karnataka, Mizoram, Kerala, Andhra Pradesh, Himachal Pradesh, Madhya Pradesh, Tamil Nadu, Maharashtra and Gujarat.

Recently, Kerala has already announced its decision to become 100 per cent organic. There is growing demand for organic food products in Kerala. More and more consumers are starting to replace conventional, inorganic food with organic food owing to the growing awareness d the benefits of organic food.

Hence a study in this context is required to understand the perception of the consumers of organic food products.

OBJECTIVES: Ÿ To study the perception of consumers towards organic food products . Ÿ

To study the reasons contributing to the purchase of organic food products by the consumers.

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To study the problems faced by the consumers of organic food products .

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To study the level of satisfaction of consumers with the purchase and consumption of organic food products among the consumers .

REVIEW OF LITERATURE: Sathyendra Kumar and Dr. Chandrashekar (2015) in their article on “A Study On Consumers Behaviour Towards Organic Food Products In Mysore City” highlight the need for adequate of marketing facility for increasing the demand and creating awareness of organic food products among the consumers. The study found that the main consumers of organic food were from the urban areas.

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Organic food products are those food products which are produced through natuCopyright© 2018, IERJ. This open-access article is published under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License which permits Share (copy and redistribute the material in any medium or format) and Adapt (remix, transform, and build upon the material) under the Attribution-NonCommercial terms.

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Research Paper Ÿ

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E-ISSN No : 2454-9916 | Volume : 4 | Issue : 5 | May 2018

Irianto (2015) in his study “ Consumers’ Attitude and Intention towards Organic Food Purchase: An Extension of Theory of Planned Behaviour in Gender Perspective” studied the variables which influenced the attitude of consumers in Surakarta City, Indonesia to purchase organic food and in turn affected their purchase decision by using the Theory of Planned Behavior (TPB). Of the various variables health consciousness and environmental consciousness were identified as the two main items which influenced the consumer’s attitude to buy organic food.. The study concludes that in the future, the usefulness of organic food for health and environmental maintenance should be made aware by the marketers to motivate the target consumers to buy organic food.

Raghavan and Mageh, (2013) in their article “A study on consumers’ purchase intentions towards organic products” identified a strong relationship between Consumers intention to purchase organic food products and their belief that the consumption of organic food products is helpful for conserving the environment. The study also found that product awareness was another factor behind the consumer’s intention to purchase organic products.

Sangkumchalianga and Huang (2012) in their study “Consumers’ Perceptions and Attitudes of Organic Food Products in Northern Thailand” found that the main reason behind the purchase of organic food by the consumers was because they were produced in a healthier and environmentally friendly way. The main problem faced by the consumers were their trust in the authenticity of the goods and also the high price of the organic food. Majority of the organic food buyers re old ad are well educated as compared to those who do not buy them. The study also found that consumer information is the main barrier associated with the market share for organic food products.

Quah & Tan (2009) conducted a study titled “Consumer Purchase Decisions of Organic Food Products: An Ethnic Analysis” among the consumers in Penang (Malaysia) and found that women , urbanites and people with high income levels were the main consumers of Organic Food Products. The study also pointed out that price and availability were the two main factors which affected the purchase decisions of consumers with respect to Organic Food.

Lea and Worsley (2005) in their study “Australians’ organic food beliefs, demographics and values” found that organic food were considered to be healthier, tastier and better for the environment than conventional food by the respondents. The study also found that High expense and lack of availability were the main barriers faced while purchasing of organic foods. The study also found a more positive attitude about organic food among women than men.

MATERIALS AND METHODS: The present study is a descriptive study. The study was focussed on the organic food consumers in Kollam City of Kerala. Both Primary data and Secondary data have been used for the study. The primary data was collected from 31 organic food consumers in Kollam City. The samples were selected using Judgement Sampling Method. Secondary data was collected from various books, articles and websites. The data was analysed with the help of Percentage Analysis, Garrett Ranking Method and Five Point Rating scale.

Table 3. Occupation –wise classification Age

Number

Percentage

Self Employed

3

10

Government Employee

13

42

Private Employee

4

13

Professional

4

13

Others

7

22

Total

31

100

Source : Primary Data Out of the 31 respondents, 42 per cent are Government employees, 22 per cent are employed in other occupation, 13 per cent are Private Employees, 13 per cent are Professionals and 10 per cent are self employed. Majority of the respondents (42 per cent ) are Government employees.

Table 4. Education –wise classification

Out of the 31 respondents, 39 per cent belong to the category Post- graduate, 26 per cent belong to the category Graduate, 23 per cent belong to the category Plus two and 12 per cent belong to the category others. Majority of the respondents (39 per cent ) are Post- Grduates.

Table 5. Monthly income –wise classification Monthly Income

Number

Percentage

Upto Rs. 20,000

8

26

Rs.20,000 - Rs.40,000

6

19

Rs.40,001 - Rs.60,000

6

19

Above Rs. 60,000

11

36

Total

31

100

Source : Primary Data Out of the 31 respondents, 36 per cent have monthly income Above Rs. 60,000.

26 per cent have monthly income Upto Rs. 20,000. 19 per cent have monthly income between Rs. 20,000 - Rs. 40,000, 19 per cent have monthly income between Rs. 40,001 - Rs. 60,000. Majority of the respondents (36 per cent) have monthly income Above Rs. 60,000.

Table 6. Frequency of purchase

Table 1. Age–wise classification Number 6 7 13 5 31

Percentage 19 23 42 16 100

Source : Primary Data The table shows that 42 per cent of the respondents belong to the age group of 4160. 23 per cent of the respondents belong to the age group of 21 – 40. 19 per cent of the respondents belong to the age group below 20. 16 per cent of the respondents belong to the age group above 60. Majority of the respondents (42 per cent ) belongs to the age group 41 – 60.

Frequency

Number

Percentage

Regularly

9

29

Most Often

6

19

Occasionally

12

39

Rarely

4

13

Total

31

100

Source : Primary Data The above table shows the Source of Purchase of Organic Food Products by the respondents. The table shows that out of the 31 respondents, 39 per cent purchase organic food products Occasionally, 29 per cent purchase organic food products Regularly, 19 per cent purchase organic food products Most often and 13 per cent purchase organic food products Rarely. Majority of the respondents (39 per cent) purchase organic food products occasionally.

Table 7. Source of Information about Organic Food Products

Table 2. Gender –wise classification Gender

Number

Percentage

Source

Number

Percentage

Male Female Total

13 18 31

42 58 100

Friends and Relatives

10

33

Advertisements

6

19

Word of Mouth

15

48

Total

31

100

Source : Primary Data Out of the 31 respondents, 58 per cent are females and 42 per cent are males.

50

Percentage 23 26 39 12 100

Source : Primary Data

RESULTS AND DISCUSSIONS:

Age Below 20 21-40 41-60 Above 60 Total

Number 7 8 12 4 31

Education Plus two Graduate Post – Graduate Others Total

Source : Primary Data

International Education & Research Journal [IERJ]

Research Paper

E-ISSN No : 2454-9916 | Volume : 4 | Issue : 5 | May 2018

The above table shows the Source of Information about Organic Food Products for the respondents. The table shows that ,Word of Mouth is the source of information about Organic Food Products for 48 per cent of the respondents, Friends and Relatives are the source of information about Organic Food Products for 33 per cent of the respondents and Advertisements are the source of information about Organic Food Products for 19 per cent of the respondents. Thus, Word of Mouth is the source of information about Organic Food Products for majority of the respondents (48 per cent).

Table 8. Source of Purchase Source Super market Local Store Organic Shop Farmer's Market Total

Number 10 12 4 5 31

Percentage 33 39 12 16 100

Table 11. Problems faced while purchasing Organic Food Products Weightage →

5

4

3

2

1

1

2

3

4

5

High Price

100

12

9

4

3

128

1

Less availability

20

48

24

12

1

105

2

Less variety as compared to 5 conventional food products

28

24

22

4

83

3

Varying Quality

5

20

24

24

5

78

4

Limited information about purchase sources

5

12

15

6

19

57

5

Rank → Problems ↓

Weightage Rank Total

Source : Primary Data

Source : Primary Data The table shows that, 39 per cent of the respondents purchase Organic Food Products from Local Stores, 33 per cent of the respondents purchase Organic Food Products from Super market, 16 per cent of the respondents purchase Organic Food Products from Farmer's market and 12 per cent of the respondents purchase Organic Food Products from organic shops. Thus, Majority of the respondents (39 per cent) purchase organic food products from local stores.

The above table shows the ranking of the problems faced while purchasing Organic Food Products by the respondents. The highest weight is for High Price (128) followed by Less availability (105), Less variety as compared to conventional food products (83), Varying Quality (78) and Limited information about purchase sources (57). Thus among the various, the problems faced while purchasing Organic Food Products by the respondents High Price got the first rank , Less availability got the second rank and Less variety as compared to conventional food products got the third rank.

Table 9. Reasons for purchasing Organic Food Products

Table 12. Satisfaction level of respondents

Weightage → Rank →

6 1

5 2

4 3

3 4

2 5

1 6

Reasons ↓

Weightage Total

Rank

Natural and Fresh

60

15 44 15

2

1

137

2

Safe

54

65 20 12

-

-

151

1

More nutritional value

30

50 36 18

-

1

135

3

Tastier

48

20 20 39

2

0

129

4

Environment Friendly

-

-

-

-

56

3

59

5

Others

-

-

-

9

4

26

39

6

Source: Primary Data The above table shows the ranking of the various reasons for purchasing Organic Food Products by the respondents. The highest weight is for the reason that organic food products are safe (151) followed by the reasons that they are natural and fresh (137), Have more nutritional value (135), are tastier (129) , are environment friendly (59) and lastly due to other reasons (39). Thus among the various reasons for purchasing the Organic Food Products by the respondents, Safe got the first rank, Natural and Fresh got the second rank and more nutritional value got the third rank.

Table 10. Type of Organic Food Products purchased by respondents Weightage → Rank →

5

4

3

2

1

1

2

3

4

5

Type ↓

Weightage Total

Rank

Fruits and Vegetables

125 20

3

-

-

148

1

Dairy Products

10

9

12

1

92

2

Meat

15

-

-

-

-

15

5

Cereals and Pulses

5

12

27

16

-

60

3

Others

-

-

3

6

16

25

4

60

International Education & Research Journal [IERJ]

Number

Very satisfied

18

Percentage 58

Satisfied

9

29

Neither satisfied nor dissatisfied

4

13

Dissatisfied Very dissatisfied

-

-

Total

31

100

Source: Primary Data The above table shows the satisfaction level of respondents with the purchase of Organic Food Product . The table shows that out of the 31 respondents, 58 per cent of the respondents are very satisfied with the purchase of organic food products, 29 per cent of the respondents are satisfied with the purchase of organic food products and 13 per cent of the respondents are neither satisfied nor dissatisfied with the purchase of organic food products. Thus majority of the respondents are very satisfied with the purchase of Organic Food Product.

MAJOR FINDINGS: Ÿ Majority of the respondents (42 per cent) belongs to the age group 41 – 60. Ÿ

Out of the 31 respondents, 58 per cent are females and 42 per cent are males.

Ÿ

Majority of the respondents (42 per cent) are Government employees.

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Majority of the respondents (39 per cent) are Post- Graduates.

Ÿ

Majority of the respondents (36 per cent) have monthly income Above Rs. 60,000.

Ÿ

Majority of the respondents (39 per cent) purchase organic food products occasionally.

Ÿ

Word of Mouth is the source of information about Organic Food Products for majority of the respondents (48 per cent).

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Majority of the respondents (39 per cent) purchase organic food products from local stores.

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The main reason for purchasing the Organic Food Products by the respondents is that they consider the Organic Food Products to be safe.

Ÿ

Fruits and Vegetables are the main Organic Food Products purchased by the respondents.

Ÿ

High Price is the main problem faced while purchasing Organic Food Products by the respondents.

Ÿ

Majority of the respondents are very satisfied with the purchase of Organic Food Product.

Source : Primary Data The above table shows the ranking of the various types of Oranic Food Products purchased by the respondents. The highest weight is for Fruits and Vegetables (148) followed by the Dairy Products (92), Cereals and Pulses (60), others (25) and Meat (15). Thus among the various types of Food Products purchased by the respondents, Fruits and Vegetables got the first rank , Dairy Products got the second rank and Cereals and Pulses got the third rank.

Satisfaction Level

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Research Paper

E-ISSN No : 2454-9916 | Volume : 4 | Issue : 5 | May 2018

CONCLUSION AND SUGGESTIONS: The consumption of Organic food products should become a habit of life among the people. Even though a growth is visible in the number of organic food consumers, the strength is still not up to the mark. There should be regular demand and consumption of organic food among the consumers. For this, proper awareness about the health benefits of the organic food products and the harmful consequences of consuming inorganic food products must be made popular among the people. High Price and Less availability are the main problems faced by the consumers. One of the main reasons for the high price is limited supply in relation to the demand for the organic food. The government must take necessary steps to promote and increase the production of organic food products. For this, subsidies and loans must be given for the production of organic food products.

There should be more number of organic food shops to increase the availability of organic food products. In addition to this, certification and labelling of organic food products must be made mandatory in order to ensure the quality and safety and authenticity of organic food products. Certification of organic food products also helps to generate more confidence and trust in organic food products.

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Jitendra (2018) : More than 30 per cent of world’s organic producers are in India, available at http://www.downtoearth.org.in/news/30-per-cent-of-world-s-organicproducers-are-in-india-59748

2.

Spices Board of India. 'Organic certification mark'. Archived August 2, 2012, at the Wayback Machine.

3.

APEDA. 'National Standards for Organic Products.'

4.

Agricultural and Processed Food Products Export Development Authority. 'Organic products'.

5.

Ecoworld. Organic Farming in India.

6.

Nabard. Paper on organic farming.

7.

Ravi, J.M (2017) : Making organic farming fashionable - these entrepreneurs are showing the way, available at https://yourstory.com/2017/12/organic-farminggrowth/,24.Mt 2018

8.

Sathyendra Kumar.A.D, Dr. Chandrashekar H. M. (2015). A Study On Consumers Behaviour Towards Organic Food Products In Mysore City. International Journal of Management Research & Review,Vol.5, pp.1082- 1091

9.

Irianto, Heru . (2015). Consumers’ Attitude and Intention towards Organic Food Purchase: An Extension of Theory of Planned Behaviour in Gender Perspective. International Journal of Management, Economics and Social Sciences, Vol.4, pp.17 – 31.

10. Raghavan, N. and Mageh, R. (2013). A study on consumers’ purchase intentions towards organic products. Indian Journal of Research, Vol.2(1), pp.111-114.

11. Sangkumchalianga, Parichard. and Huang, Wen-Chi. (2012). Consumers’ Perceptions and Attitudes of Organic Food Products in Northern Thailand. International Food and Agribusiness Management Review, Vol.15, pp.87 – 102.

12. Quah, S.H. And Tan, A. K. G. (2009). Consumer Purchase Decisions of Organic Food Products: An Ethnic Analysis. Journal of International Consumer Marketing ,Vol.22, pp.47- 58 13. Francis, C. A (2009), Organic Farming: The Ecological System, ASA-CSSA-SSSA, United States America 14. Lea, E. and Worsley, T. (2005). Australians’ organic food beliefs, demographics and values. British Food Journal, Vol.11, pp. 855869.

15. Padel, S. and Foster, c. (2005). Exploring the gap between attitude and behaviour: Understanding why consumers buy or do not buy organic food. British Food Journal, Vol.107(8), pp.606-626.

16. OECD (2003), Organic Agriculture Sustainability, Markets and Policies: Sustainability, First edition, CABI Publishing , UK

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