Study of Consumer Behaviour Towards Organic Products

ABSTRACT

The consumer of today has increased their significance on  food security, natural and medical problems and quality, consequently some are willing to buy natural food products. Evaluation models used in previous organic food research have identified variables such as health consciousness, ecological concern, animal welfare and income as important determinants of organic food decision.

The objective of this research was to examine Kolkata consumer perceptions of organic food. A questionnaire was completed by 60 respondents. Different  groups of consumers were identified.. Purchasers of organic food also believed that organic food was superior to conventional food in terms of quality, safety, labeling, production methods and value. Availability and the price of organic food were the main reasons to the purchase of organic food. Higher socio-economic groups are additional ready to buy organic food products. Increasing awareness of food safety and pollution issues are important determinants in the purchase of organic food; but securing a steady supply of organic food is principle to ensuring development in this sector.

Keywords: Organic Products,Consumers,

Introduction

Organic products industry is one of the fastest growing industry in Europe, Northern America, Australia and Japan with sales being in excess of $104 billion in 2009. Although organic products sales still account for only around l per cent of the total food market, many countries are showing growth of 20 - 30 percent annually . The UK market is growing quickly with a 30 per cent yearly  sales increase, despite the fact that it remains currently underdeveloped in comparison to some other European countries. The pattern towards increased utilization of organic food can be connected to a more extensive concern with environmental issues.

While health is the primary key motivator, ethical issues are also the important segments of consumer motivation. In reality, issues involving animal welfare, the environment and moral trade all motivates consumers of organic food products.

The market for organic food products has expanded considerably in the most recent decade because of  consumers’ increasing awareness of both health and environmental issues . As from the production side, the increasing availability of subsidies in many countries has promoted a certain degree of substitution between traditional and organic farming .

                                                             

                                                                   BACKGROUND

Nutrikraft India Pvt Ltd is a principle  animal feed manufacturer in India. The company has well established brands known for quality and superior performance. With leading edge European technology and superior process, the company strives to give best product in the market to meet the customer requirements.This report deals with the “STUDY OF CONSUMER BEHAVIOUR TOWARDS ORGANIC PRODUCTS” in Kolkata as the company wants to expand its business  in the organic industry . A number of studies dealing with organic food consumption have focused on the relative importance of price as the main determinant for future demand. The main objective of such studies has been to measure the consumer’s Willingness To Pay a premium over conventional product prices as well as its relationship with lifestyles, socio-economic characteristics or environmental concerns.

 Aim and Objectives

Consumption of free-range products are significantly motivated by the concern about food quality, as much as it is by concern about the animal’s quality of life. While consumption of organic food is mainly motivated by health, the ethical reasons relating to animal welfare may be double-edged – organic production is perceived to improve the wellbeing of the animal and, therefore, the quality of the food product. Here, the motivation could be health-driven as much as ethically-driven, even though it is expressed in ethical terms.