Determinants of consumers’ purchase intention for local organic food in Urban Sri Lanka

Organic food marketing has currently become one of the most developing markets around the world, including Sri Lanka. Thus, the main aim of this study was to recognize the determinants of the purchase intention for local organic food among urban Sri Lankans. A consumer survey was conducted covering capital cities of six urban districts in Sri Lanka; Colombo, Galle, Gampaha, Kandy, Kurunegala, and Rathnapura using a sample of 600 consumers, from December 2016 to May 2018. Out of the 600 consumers, only 114 were purchasing organic food by that time, and those 114 consumers were chosen as the sample for this study. Descriptive statistics, principal component analysis, and multiple linear regressions were used as data analysis techniques. According to the results, majority of the respondents belongs to the 31-45 year age category. While most respondents had an education up to GCE Advanced Level, significant percentages of respondents were educated up to graduate and post-graduate levels. Also, most of the respondents received a monthly total income in between Sri Lankan Rupees 85,001 and 162,000 (approximately US dollars 473 – 900). Although one-fourth of the consumers are purchasing organic food at that time, a higher number is willing to buy them in future. As per the principal component analysis, health and environment consciousness, certification of organic food, marketing aspects of organic food, common parameters of organic food, awareness on the value of organic food, and market availability of organic food were the extracted determinants. The results of multiple linear regressions revealed that market availability, common parameters of organic food, and health and environment consciousness are the dominating variables of the purchase intention of organic food consumers. Thus, expanding the market conditions for organic food, establishing a better marketing system, conducting effective food awareness programs, and value addition for organic food are the identified timely essential recommendations. JEL CODE: Q13, Q19

ANALISIS BAURAN PEMASARAN TERHADAP PERILAKU KONSUMEN PRODUK PANGAN ORGANIK

This study was aimed to analyze the effect of marketing mix consist of product, price, place, promotion, and service on consumer satisfaction and repurchase intention of organic food products. Fifty-four respondent were selected by convenience sampling method to collect information from the respondent by filled the sheet questionnaires to obtain primary data. The data were analyzed by using multiple regression method. The result of the study showed that the marketing mix was influenced significantly on customer satisfaction by 99,7percent and 80,4 percent was affected by repurchase intention. Product was a variable of marketing mix had more important to influence customer satisfaction and repurchase intention for organic food products. Marketing mix product, price, place, promotion, and service partially have a significant effect on consumer satisfaction. Product, price, and service significantly affected on repurchase intention, whereas place and promotion was no significant effect. Key words: organic food, marketing mix, consumer satisfaction, repurchase intention

Organic food: What we know (and do not know) about consumers

This paper reports on the latest contributions to over 20 years of research on organic food consumers. There is a general consensus in the literature on the reasons why people buy organic food. However, there is also a gap between consumers’ generally positive attitude toward organic food and their relatively low level of actual purchases. Product differentiation based on intangible features, such as credence attributes such as organic, in fast-moving consumer goods categories is enjoying rapid growth. However, there are many difficulties with research in this area, including the errors inherent in research that relies on consumer self-reporting methodologies. Further, in relation to organic food, there is a divergence between consumers’ perception of its superior health features and scientific evidence. Fresh fruits and vegetables are of vital importance to the organic sector as they are the entry point for many customers and account for one-third of sales. Further, although there is a small proportion of dedicated organic food buyers, most sales come from the majority of buyers who switch between conventional and organic food purchases. This paper identifies the practical implications for generic organic food marketing campaigns, as well as for increasing sales of specific products. It concludes with suggested priorities for further research.

Analysis of the organic food marketing – chain store companies (South Bohemia)

: The paper deals with the analysis of organic food selling within the chain store companies operating in the region of South Bohemia. The analysis is based on a questionnaire survey done in 2007 the aim of which was particularly to check the organic food selling strategies, product mix, selling conditions and culture in the particular chain store companies, finally at the end to define strengths and weaknesses, opportunities and possible threats. Following the analysis of the lists of offered products, the authors have determined the so-called chain stores of “good practice”. These chain store companies are characterized by a quite wide organic food assortment, a developed sales promotion and they try to co-operate with customers and provide them with the needful information on organic foods.

Adding value in the organic sector: Characteristics of organic producer–handlers

Sales of organic food have soared over the past decade. Although nearly all organic commodities pass through the hands of at least one intermediary on the way from the farmer to the consumer, there is a dearth of literature examining organic food marketing, especially for the middle section of the supply chain. This paper uses new survey data on organic intermediaries (organic handlers) to characterize firms that are certified to both handle and produce organic foods, or organic producer–handlers. Because of their direct link to the production level, the producer–handler has the potential to provide insight into value-added activities in the organic sector. A logistic regression is estimated in order to identify characteristics that make it more likely that a firm would be both a certified organic handler and a certified organic producer, while survey results are also used to describe some of the main challenges these producer–handlers face in handling their products. Organic producer–handlers ranked problems with ingredient procurement and supply and international trade issues as the highest barriers to growth. The model indicated that with few exceptions, many of the operational and procurement characteristics of organic producer–handlers are comparable to the entire organic handling population. However, those facilities dedicated solely to organic handling and those certified longer are more likely to be organic producer–handlers. Use of direct markets by organic handlers has the most robust relationship in the model, although marketing to natural products independent retailers and wholesalers are also important.