Consumer Behaviour in Organic Food

Consumer Behaviour in entire FoodA RESEARCH STUDY OF CONSUMER BEHAVIOUR WITH REGARD TO ORGANIC FOOD IN THE UNITED KINGDOM AND INDIAExecutive SummaryConsumer Behaviour is an aspect that is creation really vital in the globe of trade. Food is a basic requirework forcet for all the livelihoods and clarifyrs require maximum satisfaction on the increases they choose. at once emaciaters atomic number 18 to a greater extent than than conscious ab break their wellness and choose aliwork forcetary provender though they argon expensive. Todays suck uprs argon increasingly displeased with GM (Genetically Modified) and conventional victuals and ar therefrom stirring up to natural fertiliser provender. Many consumers atomic number 18 expiration native non moreover towards sustenance n wizardtheless towards clo occasion, beauty products, skin cargon and in addition paper. Organic forage is non only healthy collect to its ethical instructions of proceeds which do non use man-made chemicals and redundant preservatives as distant to conventional nutrition. It is alike eco-friendly due to environment cognizant methods which ar utilize for the pay wrap up of entire sustenance. The benefits of extreme pabulum be more whereas the disadvantages (such as price premium) argon negligible when compargond to its barter for the farm outment. Regular buyers of extreme provender argon willing to overlook this minor disadvantage when comp bed to its early(a) disadvantages which affect their health. In spite of the debates, consumers pick ingrained regimen to conventional viands because it removes the marvel of eating solid food that is unnatural or food that is not eco-friendly. In this query work the consumer demeanor towards entire fertiliser food in fall in bring forthing is studied and compared with that in India. The factors (such as consumer expressations, beliefs, criteria, concerns, character, alive(predicate)n ess etcetera that affect selling of positive food in UK and India are also studied with relevance to consumer conduct.ACKNOWLEDGEMENTTo success copiousy complete this dissertation was the nigh signifi grasst challenges I ever had. I would like to thank God and my parents who believed in me gave me full encouragement and support. Simon Speller, my supervisor who was very kind abounding to help me prohibited despite his academic and other commitments. I wish to express my sore and sincere thanks to him who encouraged me and guided me throughout my research speculate. His wisdom, extensive know directge and commitment to the postgraduate standard motivated and inspired me. He was always accessible and en consequentlyiastic to help his students. Without his patience and directions I would entertain order it hard to complete my dissertation. I would like to thank curiously my Module leader Yi Zhu, who encouraged me and neer hesitated to help me out during my study. I imm ensely thank my friends and employees of the stores who were always there to lend me their hand.1. INTRODUCTION1.1 ac centimeThis research work revolves around the consumer doings and attitude towards thoroughgoing food in United Kingdom and in India. A concise induction will be given on consumer deportment and how vital it is in the field of trade. Secondly, an intense reason of the term perfect will be known. Many theories and phases associated with positive food will be emphasized and assessed in this dissertation. A various number of consumers of thoroughgoing and conventional food are approached and consulted to get their views and estimation towards innate fertilizer food. Not all the consumers approach towards organic food seems to be alike consequently the application of authorized statistical method helps us in further understanding the relation and the patterns in the consumer behaviour styles and trends in organic food in the two countries. This also helps us to identify how the consumers in UK and in India differ from each other and also we could recognize the ways they are similar in. On the whole, the similarities and differences amidst the consumers of organic food in UK and in India are delibe rolld. To obtain this entropy many an(prenominal) a(prenominal) respondents were requested to answer hesitationnaire concerning this topic and later on these answers were analysed employ statistics. In the end these are discussed and limitations and conclusions are given and suggested.1.2 Introduction to organic foodOrganic food is grown and establishd using close to intersection standards. The conventional pesticides, chemicals, fertilizers apply for the production of conventional food are not used for organic agriculture. The organic farms are also free from man and industrial wastes. No artificial food additives and ionization mold is used. Previously, organic food were grown only in private gardens and small farms thus making it only getable in farmer grocerys or family chassis small stores. Nowadays, organic food is widely available. But there are a lot of standard and certifications that the sellers should possess to market the fruit and vegetables. in that attitude are heavy regulations in the organic fruit and vegetable application. The organic food sales are expected to grow by a large percentage in the near future.1.3 General AimThe range of the study is to muster up out the consumer behaviour and approach towards the expending of organic food in UK and in India. The elements and factors (health factors, eco-friendliness, production methods, ethics, taste, quality, safety standards etc) influencing the consumers decision making are also studied.1.4 Research QuestionsHow does the consumer behaviour towards organic food transmute between India and UK?In what ways do consumers in the two countries expect the food to be different from convenience foods?What are the familiar beliefs among c onsumers active organic food?When will India accept organic food widely, the way UK has?What makes organic food to be preferred more than convenience food?Why is there a variance between the preference wander and sales of organic food in two India and UK? What are the factors owe to this?How do the attitudes of Indian consumers differ from that of the British with respect to organic food?The above given question is the principal(prenominal) aim and the biggest question for this study and research work. There are of course many sub questions as well which will also be researched in the course of this study. The question speaks closely finding out the attitude differences in both the countrys consumer behaviour barely the study might also prove the similarities in both the countrys consumer behaviour patterns towards organic food.2. LITERATURE REVIEW2.1 IntroductionIn the publications review, the studies of previous research work by other researchers are conducted. This helps u s to recognize what other research works pitch arrived at with relevance to consumer behaviour and organic food. It is of big help because it has allowed the perception of consumer behaviour in regard with organic food especially in the United Kingdom and India because research work is proposed to be more specific rather than creation more generalized. Theories and patterns are analyzed from previous research work which helps us to comprehend the topic better.Its a exemplar which basically positions down the schema for the research work. The concepts, theories, shimmys, models etc used for the presentation of the research are basically elucidated for understanding the study being carried out. In this dissertation, a few theories and models will be analyzed and discussed.2.2 The effect of organic food on the environmentThe production of organic food is not harmful to the soil, water, air or level(p) the flora and fauna in the sense that they do not lay off any toxins or harmfu l substances into the environment or the ecology as a whole. The vital force consumed for organic farming is much lesser than the aim of energy needed for conventional farming methods thereby back up energy conservation process. The rule of pesticides for farming of conventional food contains a huge percentage of harmful toxic chemicals which have a negative impingement on the health of the farmers, those living in the locality of the farms and the mass who consume them. The aquatic animals in the water bodies near the farms and the birds which feed on the pre function of these farms suffer various genetic problems and disorders which are just aboutly fatal.2.3 Level of nutrientsThe nitty-gritty of nutrients in organic food are around 40% to 60% greater than that of the contents in conventional food. The level of antioxidants in organic food is up to 40% greater than in conventional food. These anti-oxidants are necessary for the normal well being of a person and helps in reducing the risks of various diseases and disorders. A large number of organic food consumers say it is much sweet-smellinger, tastier, better textures and firm than conventional food.2.4 CostOrganic food are anywhere between 5% and 40% more expensive than conventional food. This is due to the use of the standards and processes applied for its farming. It is more childbed intensive because it is more difficult to farm organic food because they are prone to getting rotten easily if the standards and physical conditions are not met with. It uses more natural farming methods and is more often produced on a small scale level. nearly countries import organic food and thence it is more expensive than similar fruits which are produced conventionally.2.5 Organic certificate close consumers of organic food think it is healthier for them. But to be convinced(predicate) what is being consumed is organic one has to look for the certificate of organic food. To be certified as organic, a minimum of 95% of it must be organic. The ride out 5% has stringent rules and standards. Synthetic chemicals or other impact standards are not delightful. The food from a particular farm preserve be certified organic only if the farmer of that particular farm has been producing organic food for a minimum of 3 twelvemonths.2.6 Pleasure of going organicWhether it is a psychological factor or not, it is not clear yet, exclusively volume of organic food consumers on the whole expression it is tastier than conventional food. They also have the content feeling because they feel they are doing the environment better by opting to go organic. In todays mechanical times, most hatful are busy and hardly have time to progress to a proper meal with all the good, healthy contents that are necessary for a healthy, balanced diet thereby opting for food that is contented to get and make in most ways. Many old timers find the taste of food constantly decreasing. For instance, watermelons used to taste as sweet as sugar in India about 30 years ago, but now sugar needs to be added to make it sweet enough to drink its juice or make a fruit salad out of it. A survey conducted by the Soil Association in 2005 include a representative sample of 1000 volume who were questioned about what they considered distinguished while get organic food. 95% said it was the taste and quality that numbered, 57% said price was considered while making a obtain. (Simon W overcompensate, 2008)2.7 good factors and responsibility affecting choiceAn average shopper for food in the supermarket is approach with so many dilemmas and attractive offers and discounts such as super savers etc. Many shoppers also succumb to these attractive offers on convenience food, but there are also a considerable percentage of shoppers who smite these dilemmas and go in for organic food. Some of the shoppers are so devoted and inclined towards organic food that the thought of get convenience foods never e ven crosses their minds. Most of them are considered about whether the farmers are given clean-living treatment and paid what they deserve (fair trade) and also concerned about the bionomical friendly measures taken up while farming of these food which are better for the environment as well.Most of the non shoppers of organic food who prefer the convenience farmed foods do so primary(prenominal)ly because of the price factor some of the shoppers of organic food too think so. More shoppers prefer buying their organic food from the local farmer markets and small time local suppliers rather than the super markets because they feel the stuff there is fresher and also the farmers will be getting a better deal off it. Those who prefer buying it from the supermarkets do so mainly because of accessibility constraints.2.8 memoir of organic food in IndiaThe concept of organic food is not new to India. At the beginning of the 19th century, Sir Albert Howard, one of the most classic pion eers of organic farming, worked in India for many years studying soil imbed interactions and developing composting methods. In doing so he capitalized on Indias highly civilise traditional agri ethnic systems which had long applied many of the principles of organic farming (for instance mixed cropping, crop rotation with legumes and botanical pesticides and so on) finished the introduction of the Green revolution, agri heathenish technology in the 1960s reached the main production areas of the country, there were still certain areas (especially the mountainous regions), and communities( especially certain tribes) that did not adopt the use of agro chemicals. Therefore, some areas can be categorise as organic by default, though their significance and extent has been over emphasized in recent statements made by the government officials and nongovernmental organization representatives. However, an increasing number of farmers have started consciously abandoning the use of agro chemi cals and now produce organically.In the olden times in India, organic food farming was the main source of income for most of the batch inhabiting the rural areas of India and it was also the major exporter to the world. In the 1960s, due to famines, droughts and extreme food shortage, the Indian Government started the inclination of Green Revolution which made the farmers switch over to harsh chemicals for fertilizers, pesticides etc to reproduce and increase the food production by a great level. This led to the sidelining of the usual organic farming methods of using natural fertilizers and pesticides which was obtained from plants and animals. Slowly in course of time, the Green revolution started decreasing the soil fertility, and the crops started getting repellent to the harsh chemical fertilizers and this also started affecting nature as a whole and the environment as such. Therefore, a large number of farmers are moving back to the organic ways of farming and thus helping the surroundings as well apart from the consumers. Genetically modified foods which were acceptable during the Green revolution period are now totally de tried by most people and has a lot of negative aspects. Most of the big supermarkets in India have a separate section dish out for organic foods which are gaining a lot of requisite and attention by the domestic market. (http//www.agricultureinformation.com/forums/organic-farming/15397-organic-farming-exports-food-consumption-india.html)According to a small recent survey taken in Mumbai, India, awareness about the front line of organic food is quite an low. 25% of the respondents were aware of the availability of organic food and 36% out of them actually used them. The main reason for the use of organic food attributed towards the benefits it had on the consumers health. When compared to consumers of organic food in the United Kingdom, the Indian consumers did not mention the benefits it had regarding the environmental factor s. It generally had a minor relevance to the Indian consumers of organic food. Most of the organic consumers had a purchase frequency of buying the food on an average of once a month. The purchase rate of organic food to conventional food was a ratio of 110 respectively. Most people in India do not consume organic food and organic food in general due to the fact that they are not aware that such a thing exists at all. When posed with the question if they would buy organic food because it was healthier for them, all the non consumers and non buyers of organic food answered they would buy it solely because of the reason that it was better for their health.The domestic market for organic food is nowhere near as great as the export market for it. Indian domestic consumption of organic food is only a meager 7.5% of the entire organic fruit and vegetable production, the rest of which is directed towards the export market which is very great as Indian organic farming techniques are one amo ng the best in the world and the resources are natural and pure in India. Most of the domestic consumption of organic food in India is seen in the big urban cities such as Chennai, Mumbai, Kolkota, Delhi, Hyderabad to name a few. These cities are noted to be inhabited by the top(prenominal) income groups of the country, thereby display that the upper income groups are patently the predominant consumers of organic food in India.2.9 Growth in the domestic market in India for organic foodThere has been a considerable increase in the growth of demand and consumption of organic food in India. Many NGOs are aiding and assisting farmers to do better in their area of organic fruit and vegetable faming. make up in demand by the local market in India for organic food are mainly because of health conscious factors, being aware about the product and its benefits, appealing merchandise strategies and the ease of availability. These are the main factors considered according to some NGOs in I ndia.It is a myth that most of the organic produce is exported to foreign countries. Today market for organic food in India is on the rise. More than 50% of the produce is consumed by the domestic market. The rest is aimed for the export market. Most of the domestic market consumers in India prefer organic food especially in families with growing children due to the beneficial factors in them.06-07-2008S.AnnadanaSenior MemberBusiness MemberJoin Date whitethorn 2006Location Organic Agri BusinessOrganic farming, exports Food Consumption in India(http//www.agricultureinformation.com/forums/organic-farming/15397-organic-farming-exports-food-consumption-india.html)2.10 Committed Organic ConsumersHDRA participating members completed a questionnaire on accentuate information about the participant and their household. They answered precise questions about their behaviour as organic consumers focusing on organic vegetables. Questions included weekly guide on vegetables, percentage of org anic vegetables bought, factors to encourage purchasing and where and how regularly they bought organic vegetables. This information was analysed and combined with a brief literature review of research into act organic consumers in the wider UK population.Committed buyers tended to be older and more affluent than the UK population average, over two thirds were in social classes A, B or C1, compared to fewer than 50 per cent in the population at large and most lived in London and the South East (TNS, 2003 Padel and Foster, 2005). The majority of committed organic consumers spend was from the two groups of empty nesters whose children have left(a) home and families with children under 5 years (TNS, 2003). TNS (2003) found fruit and vegetables were the main entranceway shoot for to organic purchasing as 55 per cent tried them before any other category. Padel and Foster, (2005) identified that committed organic consumers took on a greater number of issues and motives, which varied d epending on the product category. The two most great motivations were taste and health. TNS (2003) reported there was a direct correlation between the extent to which consumers believe in the health and taste benefits of organic food and the number of categories they buy into. Padel and Foster (2005) found personal health was a oddly strong driver among UK consumers and related to it to an absence of residues and food safety although Zanoli (2004) identifies that across atomic number 63 health seemed to be the central motive for buying organic produce. Environment and animal upbeat were growing in importance as drivers (Padel and Foster, 2005). Food origin was particularly important as 60 per cent of organic consumers were more believably to buy organic food if it originated from the UK compared to 38 per cent for whom it didnt really matter (TNS, 2003). Price was often found as a barrier to purchasing although committed buyers had a higher willingness to pay (TNS, 2003). This is common across Europe (Zanoli, 2004). Organic consumers bought organic food an average of 12.8 times a year and average spend per obtain trip was 2.53 (TNS, 2003). Committed buyers spend more on average and buy more frequently than less committed buyers. The majority bought organic produce in Tesco, Sainsburys and Waitrose.It is usually seen that most people who are regular buyers of organic food are either families with teenaged children or old people. This in a way shows that organic food are preferred by those who want to maintain their health and flummox fit. As for the more affluent people being regular buyers of organic food, the price premium for it justifies this behaviour.2.11 Consumer BehaviourConsumer Behaviour is extensively studied in the field of marketing. Without consumers it is rigid for any sort of trade to run efficiently. Consumers are the raison-d-etre for a business mere existence. A business maybe a profit organization or even a non-profit organization. The field of consumer behaviour is the study of various(prenominal)s, groups, or organizations and the processes they use to select, secure, use and dispose of products, services, experiences or ideas to carry through needs and the impacts that these processes have on the consumer and society( Belch and Belch, 2007)).From the marketing point of view, it is a significant factor to understand the consumer skillfully and to aid to their needs, wants and demands to be successful. A consumer is the centre of attention in case of most marketing techniques after all, it is the consumers a business needs to move forward. In the case of organic food, a consumer might decide to buy it for its benefits on health or the environment or maybe because of the advertising for it is attractive. There are diverse factors that affect the consumer decision making process which is also discussed further.2.12 Models of Consumer weft2.12.1 The Cognitive ModelInitially when consumers make a significant pu rchase, they may reflect on substitutes and discuss pros and cons with others with an intention of securing benefits and avoiding costs. This model is sometimes called the extended-problem settlement model. (East, Wright and Vanhuele, 2008).2.12.2 The Reinforcement ModelChoice is controlled by the factors in the environment that settle with and aid some alternatives more than others. Managerial control is attained by altering the consumers circumstances. Nevertheless what is pleasing to one person may not seem so to others and this limits persuasion. (East, Wright and Vanhuele, 2008).2.12.3 The Habit ModelThe choice of consumers towards the product is sometimes controlled by managing stimuli (brand name, logo, pack features, colour attraction, etc) that have become allied with a product as a result of past purchases. Sometimes this is called remark control. (East, Wright and Vanhuele , 2008).2.12.4 Consumer Behaviour ModelsThe objective of consumer behaviour models is to provide interpretation, explanation and prediction of purchase behaviour. On the identical side the models provide a conceptual framework and so help researchers to locate and to examine new ideas so as to enhance better enlightenment and predictions of behaviour. On the constructive side these models aid to organize research results and to demonstrate the density of decision processes involved in even a simple purchase, such as a can of soup in the local supermarket. On the unconstructive side most of the models can be criticized as providing no more than a description of a range of influencing variables. There are four main clusters of factors that have an outcome on purchase behaviour. They are political, economic and technical cultural and social psychological and marketing influences. (Bareham, 1995)Theories make it smoother to comprehend a concept as they sketch the causes and effects that are possible and what to scream provided the input (the happening circumstance) is given. In most circumstances, it is easy to analyze whether operable situations are normal and satisfactory with the help of proven time tested theories.2.13. Marketing dividerThe market is split up into diverse segments ground on their needs, tastes, income, and a lot of other criteria. Marketing variance is based on a lot of research and important factors to suit the requirements and purposes. Some of the marketing segmentation is as follows2.13.1. Geographic SegmentationThis involves segmenting the market by perspective on the assumption that people living in one location will have similar needs, wants and preferences and these will differ significantly from people living in other locations. There are some obvious limits to this assumption. People all over the world drink Coca-cola and buy Japanese electronic goods for instance. When you think about it from the viewpoint of the consumer, most buying behaviour is actually local. Localized consumer behaviour is often expressed through the presence of a significantly large cultural or sub cultural group that is different from the main stream. There are also geographically based differences between consumers for reasons that are more complex or obscure. It is not immediately obvious why some sections of consumers have different behaviour than the other sections. But knowing that, they will do it can be important to the marketing strategy.2.13.2. Demographic segmentationDemographic segmentation deals with the many ways if statistically categorizing all the people in a theme population. For example, a national population can be divided into subgroups based on age, sex, income, education, occupation, social class, family size, race and religion. In a sense, there are also different ways of looking at the same individual consumer, because of course we belong to each of these groups. Different aspects of our identity will be relevant to different products at different times. Baby foods can only be marketed to parents of young children, for example and a nerve centre-class, position aged, nitty-gritty income, middle manager is more likely to be in the market for an physical exertion bike than a motor bike. Some of the important specifics of demographic segmentation areAgeAge is perhaps the most frequently used demographic variable in marketing segmentation. One reason for this is that the lifecycle has been divided up by society into what seem to be easily perceptible groups that are clearly differentiated from one another- infants, children, teenagers, young adults food.SexDividing the market into male and female segments is another frequently used strategy. But even here, the old marketing certainties are breaking down. It used to be a safe bet for marketers to target do-it-yourself products exclusively at men and supermarket shopping at women. But with the larger increase in exclusive occupant hose-holds and one parent families (most of them female), many more women are buying things that men would do if they were in a family. In addition, more women than men buy for other consumers.Socio-economic statusA persons socio economic status is inflexible by education, income and occupation. Though there are many exceptions of course, these are tether factors often in alignment. More highly educated people tend to do managerial and professional jobs that bring a relatively high income, and vice-versa. For obvious reasons most marketers are more interested in people with high socio economic status rather than low. Income is often considered the most important variable in this case because it is so easy to quantify and because it dictates entry to certain markets. But income by itself can be very misleading.psychological segmentationThe attempt to come up with a practical form of consumer profile has concentrated on three areas of behaviour activities, interests, and credits.Segmentation by usageThis form of segmentation is based on information about volume and frequency o f purchase for a given product. It is a popular way of segmentation of markets because there is a lot of readily available information about patterns of usage for most goods and services. In fact, with so many transactions now electronically recorded, a great deal more of data is available than is actually used. Perhaps the most familiar usage data is provided by the electronic point of sale (EPOS) used by supermarket checkouts. Not only are all the purchased items listed, together with their prices, but so is the date and exact time of purchase and the method of payment used.Segmentation by benefitThis form of market segmentation is based on knowledge of the benefits that consumers seek from that particular product. The task of the marketer is to include the capture characteristics- or the impression of them in the design of particular goods or services. In a sense this kind of segmentation is at the entire marketing concept find out what people want and provide it for them. (Da vid a Statt)Segmentation is very important for a firm or an industry to market its products strategically and for it to be a success. In the case of organic food, it comes under the category of food which is a basic necessity and therefore would appeal to and include a lot many segments in the markets. In this research study we are considering only the United Kingdom and India. So geographically these two countries are covered. Demographically the middle aged and the older people will be targeted age wise, both sexes, and the middle class and upper class levels will be targeted according to the socio economic status segmentation. Since the middle aged and older people usually are the ones who go shopping for food, they are targeted age wise, both men and women shop for it, and when it comes to socio economic status, the middle and the upper income groups are targeted as organic food are more expensive than conventional food. Many shoppers especially in India will give up the idea of buying food when it comes to the price factor that is not acceptable for them. That is the reason why the middle and upper income groups are aimed at here. Most people both in India and United Kingdom consume food every day. In India, no meal is complete without fruits or vegetables and in the United Kingdom, people are encouraged to consume food everyday with the healthy 5 a day concept though it is already a staple portion of a healthy meal. These segments are most suitable for being aimed at for marketing of organic food and therefore they are the target segments.2.14. end making processDecision makingcan be regarded as an outcome of mental processes leading to the selection of a course of action among several alternatives. Every decision making process produces a finalchoice.The output can be an action or an opinion of choice. There are many factors which are discussed below2.14.1 Communication detailThe situation in which the consumer receives information about a product or service influences the buying decision of the consumer. For example, in the case of organic food, an advertisement speaking about the bad impacts of the chemicals used in conventional foods right when the buyer is suffering from food poisoning might influence the consumer to buy food that is healthier and does not involve the usage of chemicals responsible for food poisoning and therefore influence the consumer to go in for purchase of organic food in future.2.14.2. Purchase SituationThe sit