CONSUMER ATTITUDE AND PREFERENCE FOR ORGANIC FOOD PRODUCTS IN COIMBATOE CITY

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1 CONSUMER ATTITUDE AND PREFERENCE FOR ORGANIC FOOD PRODUCTS IN COIMBATOE CITY B.Arunkumar Research Scholar (Full Time), Department of Commerce, Hindusthan Arts and Science College, Coimbatore Dr.D.Elangovan, Assistant Professor. Department of Commerce, Government Arts College, Ariyalur. ABSTRACT The term organic food evolved from the need to differentiate between foods that have used chemical or genetic enhancers in their production and those that have not According to new research report, The Hindu News Paper Indian Organic Food Market Analysis, organic food is invariably catching up pace among the Indian retailers, especially with the niche retailers owing to wide awakening among Indian consumers towards leading a healthy life. "Consumer behavior and purchase intention for organic food", The Indian consumer is becoming more and more conscious about their health; the Indian market in offering increasing potential for health friendly food segments such as that of organic food. Organic food serves as a promising alternative for the population concerned about the consequences of high amounts of chemical infusions in food items both in terms of self - consumption as well as the ill impact on the environment. the study has been conducted only considering the respondents whose attitude is particular in consuming organic food products and their preference towards the same. It becomes pertinent to understand whether proper promotional activities influenced the consumer preference and what type of initiative needed to make the consumers prefer organic products. The objectives are to study the demographic factors of the consumers using organic food products in Coimbatore, to examine the attitude influenced the consumers to prefer organic foods in Coimbatore City and to suggest measures for policy implications. The researcher selected two stores from each zone and collected minimum 25 respondents from one store that concludes the samples (2 x 25 x 4 = 200). The article attempts to examine the consumer attitude and preference for Organic Food Products, which helps to understand the consumers perception towards the organic foods in the Coimbatore City. Organic food revolution and organic promotion thereby helps in protecting the individual health and the environment as well. Key words : Consumer, Attitude, Organic Food, Health, Environment, etc. 233

2 INTRODUCTION The term organic food evolved from the need to differentiate between foods that have used chemical or genetic enhancers in their production and those that have not. There is a prevailing popular notion that inorganic foods, though offering opportunities for higher yields, have a lower nutritional value than organic foods. There is little scientific support for this and more research needs to be undertaken. But generally, inorganic foods are produced in higher quantities per unit of investment than organic foods. GLOBAL ORGANIC MARKET The growth in global organic food and beverages market is driven by increasing awareness about health benefits of organic foods which has led to increased organic farming in the world. The global organic food and beverages market is expected to grow from USD 57.2 billion in 2010 to USD billion in 2015 at an estimated CAGR of 12.8%. In 2010, Europe had the largest share in the global organic food and beverage market with revenue of USD 27.8 billion. INDIAN ORGANIC MARKET It is estimated that 65% of India s cropped area is organic by default, as the small & medium farmers cannot afford the costly chemical inputs. According to ICCOA (International Competence Centre for Organic Agriculture) estimates approx 1.5% of all agricultural acreage in India is expected to be organic certified by 2012 and through its strong organic export programme, India will hold 2.5% of the global market. India has emerged as one of the largest potential markets for organic food consumption globally, owing to the fact that organic foods or products are healthy, contain no chemicals or preservatives, and are completely natural. With growing awareness towards healthy food, surging income levels, and shifts in consumer behavior, the country s nascent organic food market is fast transforming into the world s fastest growing organic food market. According to new research report, The Hindu News Paper Indian Organic Food Market Analysis, organic food is invariably catching up pace among the Indian retailers, especially with the niche retailers owing to wide awakening among Indian consumers towards leading a healthy life. We anticipate that the sector will post significant growth during , invariably growing at a CAGR of 15%. Presently, surmounted growth is being witnessed from new demand pockets, arising from the Tier-I and Tier-II cities, thus, signaling huge acceptance among the masses. "Consumer behavior and purchase intention for organic food", The Indian consumer is becoming more and more conscious about their health; the Indian market in offering increasing potential for health friendly food segments such as that of organic food. Organic food serves as a promising alternative for the population concerned about the consequences of high amounts of chemical infusions in food items both in terms of self - consumption as well as the ill impact on the environment. The affinity of an individual towards consumption of organic food items is highly dependent on the awareness levels, spending capacity and accessibility available to the individual. ORGANIC FOODS FOR HEALTH Report on Organic products perceived by Dr.P.Rathika and Dr.P.Ammani which until now were mainly being exported, are now finding more consumers in the domestic market. Awareness of the nutritional benefit of these products has resulted in more land coming under organic farming. Although health is the key reason for growing demand, other incidental benefits such as better taste and better environment are also driving growth. There is also a growing awareness of the dangers of consumable food grown wih the aid of chemicals. Parichard et al (2012), The adoption of organic production and processing is highly determined by market demand. Therefore, this is reflected in consumers perceptions and attitudes towards organic food products. This research draws on a survey of 390 respondents. Results indicated that the main reasons for purchasing organic food products are an expectation of a healthier and environmentally friendly means of production. Organic buyers tend to be older and higher educated than those who do not buy them. In addition, consumers trust in the authenticity of the goods and price are also issues. However, the main barrier to increase the market share of organic food products is consumer information. Rinal Shah and Preeti Pillai (2012) in their paper Consumer s Environmental Concern and its Influence on their Purchase Intention: SEM Approach tried to assess the purchasing intention of the consumer by highlighting five factor viz., recyclable products, not-used-on animal products, energy conservation, organically grown and ozone-friendly. Based on the factors objectives were framed to analyse the factors responsible in understanding the environmental concern and to measure the purchase intention in relation with environmental concern. The study used structural equation model and found that recycle product had strong impact towards environmental concern and their purchasing intention. The rest four factors have no impact on the objectives. 234

3 STATEMENT OF THE PROBLEM Health consciousness plays pivotal role in the attitude and preference of consumers towards organic food products universally. The common knowledge of the illiterate to the professional has become simplified globally, due to revolution of the technology orientation worldwide. Therefore, an ordinary person of the society is now well aware of the health issues arising in the day to day life arising due to the effects of the conventional products i.e. non-natural farming and producing food products using more fertilizers and different chemical additives in the food products used to promote the product identical to the natural products in the market. This is a serious problem understood by all the consumers, however, the transition based on awareness among the consumers is happening on a slow pace. The poverty situation had forced the people of India to select only the available products instead of opting alternative choices. The transition has happened to an extent by few retail outlets exclusively promoting only organic food products, which is good sign of initiative and progress. However, the study has been conducted only considering the respondents whose attitude is particular in consuming organic food products and their preference towards the same. It becomes pertinent to understand whether proper promotional activities influenced the consumer preference and what type of initiative needed to make the consumers prefer organic products. OBJECTIVES OF THE STUDY To study the demographic factors of the consumers using organic food products in Coimbatore To examine the attitude influenced the consumers to prefer organic foods in Coimbatore City. To suggest measures for policy implications. HYPOTHESIS There is no significant relationship between demographic factors of the consumers and their attitude towards Organic Food Products METHODOLOGY The researcher used descriptive type of research. Descriptive research includes surveys and fact finding inquires of different kind. In this study the research is analyzing the consumers awareness and attitude towards organic food products in Coimbatore district. Hence, the descriptive is selected for this study. The organic food stores particularly in and around Coimbatore are taken for the study are the sampling units. A list containing all such sampling units is considered to be the sampling framework. There are about 15 well established and organized food products stores in Coimbatore City limits. Considering the consumers attitude towards organic food products the stores were selected randomly covering all the geographically locations in all directions viz. east, west, north and south. However, for the present study the researcher selected two stores from each zone and collected minimum 25 respondents from one store that concludes the samples (2 x 25 x 4 = 200). The researcher used stratified random sampling method taking only 25% of the consumers from each zone. The researcher used primary and secondary data to collect the details from the respondents. Primary data are collected from 200 sample respondents with the help of well structured questionnaire, which is pre-tested. The primary data are supplemented by spat of secondary sources of data. The secondary sources being the published research and general articles collected from various journals, books and internet etc. For analyzing the data, the researcher transformed the data into Master Table and calculations were done using SPSS-16 and presented the simple arithmetic tools like Percentage Analysis, Garrett Ranking Method and to measure the probability between two variables Chi-Square Test was applied SCOPE OF THE STUDY Organic food products concept is evolving around the world that has come into existence due to the side-affects of the chemical contents. This has significant impact on the health of the people who suffer with ailments that chronically affect their natural system. Hence, the food product consumption which forms the healthy side of life through Organic food products, that replaces the artificial maturing which causes innumerable diseases to the immune system of the children to the grown-up. Organic food revolution and organic promotion thereby helps in protecting the individual health and the environment as well. The present study attempts to examine the consumer attitude and preference for Organic Food Products, which helps to understand the consumer perception towards the organic foods in the Coimbatore City. LIMITATIONS OF THE STUDY The study is confined to Coimbatore City and therefore findings may not be related to other areas. Products considered for the study were only limited to organic food products and hence leads to limitations of the study. 235

4 DATA ANALYSIS AND RESULTS DEMOGRAPHIC FACTORS The demographic factors of the consumers are classified based on their Gender, Age, Educational Qualification, Occupation and Monthly Income is presented here under. Sl. No. 1. Age 2. Gender Table 1 : Demographic Factor of the Respondents Respondents Demographic Factors (200 Nos.) Percentage (100%) 20 to 30 years to 40 years to 50 years Above 60 years Male Female Educational Qualification Sl. No. UG PG Professional Others (High School, Higher Secondary, ITI, Diploma, etc.) 4. Occupation Demographic Factors Respondents (200 Nos.) Percentage (100%) Government Employee Private Employee Business Others (Home Maker, Student, etc.) Monthly Family Income Less than Rs Rs to Rs to More than Rs Source: Computed from Primary Data It is understood from the table that the consumers who are visiting organic food stores revealed, most (58%) of them are male consumers and 42% of them are female consumers. It is evident that maximum (31%) of the consumers belong to the age between 30 and 40 years frequenting organic stores for purchase of organic food products, followed by the consumers in the age between 20 and 30 years, 23% of the consumers belong to the age between 40 and 50 years and the remaining 19% of the consumers belong to the age above 60 years. Maximum (42.5%) of the consumers fall in the other educational categories (i.e. High School, Higher Secondary, ITI, Diploma, etc.) visiting the organic stores for purchase of organic food products, while 28% of the respondents are professionally qualified, 20% are post graduates and the remaining 9.5% of the consumers are under graduates. It is evident that maximum (40.5%) of the respondents are working in government sector visit the organic stores for purchase of organic food products, while 29% of the respondents are working in private sector, 22% of them are self-employed and having their own business and the remaining 8.5% of the respondents fall in other categories who are home makers, unemployed, students, etc. With respect to the monthly family income it is clear that maximum (37%) of the consumers stated between Rs and 30000, 27.5% of the consumers opined having income above Rs.40000, 21% of the consumers indicated between Rs and Rs and the remaining 14.5% of the consumers expressed less than Rs

5 IMPACT OF CONVENTIONAL PRODUCTS Garrett ranking of the consumers showing the impact of conventional products which have different effects in the health factors such as Worst affects children and aged, Genetically Modified, Unsafe Products, More Side affect, Immunity Deficiency and finally, Environmental impact Table-2 : Rating of the consumers based on the impact of conventional products Attributes R-1 R-2 R-3 R-4 R-5 R-6 Worst affects children and aged Genetically Modified Unsafe Products More Side affect Immunity Deficiency Environmental impact Table-2 : Ranking of the consumers based on the impact of conventional products Attributes Garrett Score Garrett Mean Garrett Rank Worst affects children and aged Genetically Modified Unsafe Products More Side affect Immunity Deficiency Environmental impact Source: Computed from Primary Data The above table shows that the respondents ranking towards the attributes that reveals the impact of the conventional products for which the consumers rated highly (M=75.01) for more side affect, second rank was towards (M=55.25) unsafe products, third rank (M=48.52) towards worst affects children and aged people, fourth rank (M=42.76) was based on Environmental impact, fifth rank (M=40.75) for the genetic modification made in conventional products and finally, the least ranking (M=37.91) was towards Immunity deficiency rated by the consumers towards using conventional products. Attitude of the consumers towards organic food products Attitude Strongly agree Agree Neutral Disagree Organic food have high nutritional value Organic food is good value for money Organic food is good for myself and my family s health Organic foods are environmental friendly Consuming organic food tastes better than conventional products Source : Computed from Primary Data % % % % % % % % % % 1.5% 2 1.0% % 6 3.0% 9 4.5% % % % % % Strongly Disagree % % % % % It is understood that the majority (38.5%+33%) of the consumers agree and strongly agree towards organic food have high nutritional value, whereas 28% of the respondents disagree and strongly disagree to the same and the least 5% of the consumer had neutral opinion. Most (44%+26%) of the respondents agree and strongly agree about the organic food have good value for their money, while 29% of the consumers disagree and strongly disagree and the remaining 1% of the consumer had neutral opinion. Maximum ( ,5) of the consumers agree and strongly agree that the organic food are good for themselves and their family s health, whereas 23.5% of the respondents disagree and strongly disagree and the remaining 5.5% of the consumers do not have any opinion. Majority (38.5%+38%) of the consumers strongly agree and agree that the organic foods are environmental friendly, while 20.5% of the consumers disagree and strongly disagree and the remaining 3% of the consumers had neutral opinion. It is evident that majority (46%+27.5%) of the respondents agree and strongly agree with respect to consuming organic food tastes better than conventional products, while 22% of the consumers disagree and strongly disagree to the same and the remaining 4.5% of the consumers had neutral opinion. 237

6 DEMOGRAPHICS AND INFLUENCE It is observed that the relationship between demographics of the consumers such as Age, Gender, Educational Qualification, Occupation and their Monthly income has been measured to find the relationship with their attitude towards organic food products such as Organic food have high nutritional value, Organic food is good value for money, Organic food is good for myself and my family s health, Organic foods are environmental friendly and Consuming organic food is tastes better than conventional products are considered analysis. Relationship between demographic Factors and Attitude of the consumers towards organic food products Opinion Organic food have high nutritional value Organic food is good value for money Organic food is good for myself and my family s health Organic foods are environmental friendly Consuming organic food is tastes better than conventional products Source : Computed from Primary Data Age (df=12, TV=21.026) 2 =25.804* Sig = Sig =22.990* Sig = Sig = Sig Gender (df=4, TV=9.488) 2 =13.987* Sig =19.249* Sig =38.623* Sig =27.809* Sig =7.160 Sig Education (df=12, TV=21.026) 2 = Sig = Sig =24.210* Sig =25.452* Sig =8.364 Sig Occupation (df=12, TV=21.026) 2 =8.914 Sig =6.290 Sig = Sig = Sig =6.948 Sig * Significant at 5% level Monthly Income (df=12, TV=21.026) 2 =24.931* Sig =23.811* Sig = Sig =9.104 Sig = Sig HYPOTHESIS H 0 : There is no significant relationship between demographics of the consumers and their attitude towards Organic Food Products H 1 : There is significant relationship between demographics of the consumers and their attitude towards Organic Food Products It is found that the chi-square value is more than the table value at 5% level of significance, measuring the relationship between age of the respondents and their attitude towards organic food products with regard to organic food have high nutritional value and organic food is good for myself and my family s health were found to be significantly associated and the null hypothesis is rejected. With respect to the gender it is clear that the chi-square value is more than the table value at 5% level of significance, measuring the relationship between gender of the respondents and their attitude towards organic food products with regard to organic food have high nutritional value, organic food is good for myself and my family s health, Organic food is good for myself and my family s health and finally, Organic foods are environmental friendly were found to be significantly associated and the null hypothesis is rejected. When considering the educational qualification it is clear that the chi-square value is more than the table value at 5% level of significance, measuring the relationship between educational qualification of the respondents and their attitude towards organic food products with regard to Organic food is good for myself and my family s and Organic foods are environmental friendly were found to be significantly associated and the null hypothesis is rejected. Based on the occupational status it is clear that the chi-square value for all the values measuring the attitude of the consumers towards organic food products is less than the table value at 5% level, therefore, there is no significant relationship between occupational status of the respondents and the attitude of the consumers towards organic food products and the null hypothesis is accepted. As far as monthly family income of the consumers are concerned, it is clear that chi-square value is more than the table value at 5% level of significance, measuring the relationship between monthly family income of the respondents and their attitude towards organic food products with regard to Organic food is good value for money and Organic food have high nutritional value were found to be significantly associated and the null hypothesis is rejected. 238

7 IMPORTANCE FOR PREFERRING ORGANIC FOOD PRODUCTS Garrett ranking of the consumers showing the importance perceived towards organic food products which have good positive effect on the health system that are Fruits and vegetables, Dairy products, Cereals and pulses, Pickles and jams, Masala products and finally, Candies and snacks Table 4 : Preference of organic food products opted by the consumers rated based on their importance Attributes R-1 R-2 R-3 R-4 R-5 R-6 Fruits and vegetables Dairy products Cereals and pulses Pickles and jams Masala products Candies and snacks

8 Table 5 : Preference of organic food products opted by the consumers ranked based on their importance z Garrett Score Garrett Mean Fruits and vegetables Dairy products Cereals and pulses Pickles and jams Masala products Candies and snacks Source : Computed from Primary Data Garrett Rank The above table shows that the respondents ranking towards the attributes that reveals the impact of organic food products preferred based on its importance in which the highest preference was towards (M=70.50) Cereals and Pulses, second rank was towards (M=61.17) Fruits and Vegetables, third rank (M=53.25) towards Dairy Products, fourth rank (M=44.32) for Pickles and Jams, fifth rank (M=39.85) for the Candies and Snacks and finally, the least ranking (M=30.91) for Masala products which have significant positive impact on the health system was ranked by the consumers. Reasons and Level of preference of organic food products Necessity Preference of Family Members Quality, Authenticity and Harmless nature Health Consciousness Availability and Choice of products Source : Computed from Primary Data Highly Preferred % % % % % Most Preferred % % % % % Moderately Preferred % % % % % Rarely Preferred % % % % % Least Preferred % % % % % It is understood that the majority (42%+24.5%) of the consumers Highly Preferred and Most Preferred the organic food products for necessity, while 19% had neutral opinion and the remaining 14.5% of the respondents rarely and least preferred respectively. It is inferred that the majority (35.5%+30.5%) of the consumers Highly Preferred and Most Preferred the organic food products due to influence of their family members, while 20% had neutral opinion and the remaining 14% of the respondents rarely and least preferred respectively. It is clear that the most (36%+24%) of the consumers Highly Preferred and Most Preferred the organic food products due to quality, authencity and harmless nature of the food products, while 26% had neutral opinion and the remaining 14% of the respondents rarely and least preferred respectively. It is evident that the maximum (20.5%+22%) of the consumers Highly Preferred and Most Preferred the organic food products due to health consciousness, while 30% had neutral opinion and the remaining 28% of the respondents rarely and least preferred respectively. It is observed that the nearly half (20.5%+28%) of the consumers Highly Preferred and Most Preferred the organic food products based on its availability and choice of products, while 32.5% had neutral opinion and the remaining 19% of the respondents rarely and least preferred respectively. SUMMARY OF RESULTS It is clear that most of the consumers visiting organic stores for purchase of organic food products are male, fall under the age between 30 and 40 years, who are having other educational qualification such as High School, Higher Secondary, ITI, Diploma, etc. while, it is understood that maximum of the consumers are working in government sector and having monthly family income between Rs and per month 240

9 It is clear that majority of the consumers rated the impact of taking conventional food products have significant effect in the health system based on the more side affect and the unsafe consumption of the conventional products and the least rating was towards immunity deficiency. To sum-up, it is understood that the majority (71.5%) of the consumers agree and strongly agree that organic food have high nutritional value. Most (70%) of the consumers agree and strongly agree that the organic food have good value for their money. Maximum (71%) of the consumers agree and strongly agree that the organic food are good for themselves and their family s health. Majority (76.5%) of the consumers strongly agree and agree that the organic foods are environmental friendly and finally, it is evident that majority (73.5%) of the respondents agree and strongly agree with respect to consuming organic food tastes better than conventional products It is clear that majority of the consumers preferred organic food products highly with respect to the cereals and pulses and fruits and vegetables that have significant positive effect in the health conditions when compared to that of the conventional food products and the least preference was towards Masala Products, Candies and Snacks.. It is understood that the majority (66.5%) of the consumers Highly Preferred and Most Preferred the organic food products for necessity, while most (66%) of the consumers Highly Preferred and Most Preferred the organic food products due to influence of their family members, most (60%) of the consumers Highly Preferred and Most Preferred the organic food products due to quality, authenticity and harmless nature of the organic food products, maximum (42.5%) of the consumers Highly Preferred and Most Preferred the organic food products due to health consciousness, and finally it is observed that nearly half (48.5%) of the consumers Highly Preferred and Most Preferred the organic food products based on its availability and choice of products. SUGGESTIONS Age, Gender, Education and Family Income has significant influence on the attitude and preference based on considering the nutritional value, product value for their money, health of the self and environment were considered highly. Government shall take necessary steps to promote the product through creating awareness among consumers to purchase and farmers to cultivate that will mutually help in improving the business and the health situation of the people in the country. The consumers most preferred organic food products by any categories for its high nutritional values and health conscious for their self and their family that needs to be considered by the policy makers to promote the product and make it available in all the retail outlets for easy purchase of the consumers. Majority of the consumers highly interested in organic food products because it is necessary for their day to day healthy living, also the quality and authenticity it repose for its preference, positive impact on health that are highly contributing factors in preference of the products. It is suggested that by encouraging the farmers to produce and supply organic food products and also making it mandatory to the consumers to purchase only organic food products by making the organic food products available in all places with more choice for the consumers for their organic food products. CONCLUSION To accomplish the objective of the study, the researcher has to depend on both primary and secondary data. The demographic factors of the consumers are analyzed considering the attitude which is an important measure that will help to understand the level of preference for the products is portrayed in the study. The attitude and preference to purchase organic food products was found to be satisfactory, however, based on the interference of the policy makers and initiative by the government will help to achieve good health situation by the consumers and also prospering business by the producers and retailers promoting organic food products. REFERENCES S.V. Ramesh and M. Divya, A study on consumers awareness attitude and satisfaction towards select organic foodproducts with reference to Coimbatore International Journal of Interdisciplinary and Multidisciplinary Studies (IJIMS), 2015, Vol 2, No.4, The Hindu News Paper Source (2014) Research report among Indian Organic Food Market Analysis on page No 4Ph:216 at the source of journal review Justin Paul, Jyoti Rana, (2012) "Consumer behavior and purchase intention for organic food", Journal of Consumer Marketing, Vol. 29 Iss: 6, pp

10 Dr.P.Rathika and Dr.P.Ammani, Eating healthy consumer perception towards of organic foods, International Journal of Marketing, Financial Services and Management Research, Vol.1 No2, 2012, ISSN : Parichard Sangkumchalianga and Wen-Chi Huang (2012). International Food and Agribusiness Management Review,Volume 15, Issue 1, Rinal Shah and Preeti Pillai, (2012), Consumer s Environmental Concern and its Influence on their Purchase Intention: SEM Approach. Opinion, 2(1),

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