1.

INTRODUCTION
Over the past several decades, Organic farming has become increasingly global
in scope. Organic food is defined as a product from a farming system which
avoids using synthetic fertilizers, pesticides and sewage sludge, genetically
modified organisms, or ionizing radiation. Antibiotics and genetically modified
organisms are prohibited in organic standards for animal husbandry while only
30 additives are permitted in certain conditions (Soil Association, 2000). The
demand for organic food products is dramatically rising in India as the
population becomes more affluent and more educated about health and
wellness issues, leading to greater consciousness in food choices. By adding
organic manure to the soil and using silt from small local ponds, Non-Pesticide
Management (NPM) farmers replenish the organic content of the soil. This
increases yield as well as makes the crops less vulnerable to diseases as well as
too certain kinds of pests. Scientists advocating non use of pesticides in
agriculture argue that pest infestations occur when the ecological balance is
disturbed and that happens to disproportionate increase in the population of an
insect species. Non-pesticide remedies are easy to prepare with almost no cost.
The main ingredients are biological waste, seeds and leaves of various plants.
However, they take time to make. Hence, it ended up creating a market for
enterprising farmers those who have started Non- Pesticide Management shops
in their villages. Although awareness of organic products is spreading in India
and it started to gain more attention and thus there is still a huge unmet need
for information among the consumers. More supermarkets and kirana stores do
not yet sell organic products, although availability in supermarkets is rapidly
improving. Retailers are not able to offer a complete range of food products in
the market. Consumers in developed countries are more familiar with wide
range of organic food products when compared to undeveloped and developing
countries. Organic retailers as well companies are making tireless effort to
expand their product range but due to various hindrances such as: due to lack
of supply, unavailability etc. Consumers are more reluctant in purchasing
organic products as they prefer to purchase only partly organic. Supplying a
wide product range, organic retailers are also struggling to guarantee a
consistent product availability and quality of fresh produce. Organic

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stakeholders use several marketing strategies to improve their product
availability, improve supply chain integration, to provide training for farmers
and assist in demand-based production planning as well.
Organic companies and retailers with supply chains are trying much to expand
their product range. Local organic food products and seasonal produce are
marketed as a part of enjoyable and sustainable food lifestyle. Awareness
among the seasonality of agricultural produce is declining and people end up
eating of new products and varieties. Several organic retailers and companies
are making an effort to make organic food available to local stores, so that it can
reach a broad spectrum of consumers. Organic produce is considered to be an
elitist product. Hence, awareness must be spread among all classes of people.

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 2. LITERATURE REVIEW

Literature for the study has been collected from different sources. Some
literature has been collected from studies undertaken by international public
bodies, stakeholder organizations and academic establishments on organic
agriculture and food. A second source derives from national government funded
research reports and associated documentation. Thirdly some literature has
been reviewed from reports of individual country contributions to research
projects and from individual research papers published in well-known peer
reviewed journals

The literature review focused for this study on awareness among Consumers
towards Organic Food Products:

An Indian Organic Consumers Perspective. In order to validate the importance

of this study, various literatures have been reviewed to identify the problems in
the study. Ihsan Effendi and Paham Ginting explored the effects of variables of
organic food knowledge, environmental knowledge, health knowledge, culture,
product attribute, subjective norms, and familiarity on organic attitudes,
purchase intentions and behavior. Ramesh and Divya (2015) indicated that
purchase of organic food products are considered environmental friendly of
production and healthier. Most of the organic consumers are tend to be older
and highly educated and trust in the authenticity of the goods and prices are
also issues. Umamaheshwari and Chandrasekar (2015) analysed organic
products encompass a paradigm in its awareness and accessibility. Consumers
are much aware as they are reluctant in purchasing of organic products due to
cost and availability about the range of products. Mohamed Bilal Basha and
Ramesh (2014) examined that health concern is the prior motivation to choose
organic food and also analyzed the impact of demographic variables on the
buying intention of consumers of organic products. Justin Paul and Fyoti Rana
(2012) studied that health, availability and education from demographic factors

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positively influences the consumers attitude towards buying organic food.
Overall satisfaction of consumers for organic food is considered to be more than
inorganic food but the satisfaction level varies due to different reasons. Zenab
sayed saleki and Seyedh Maryam Seyedsaleki (2012) proved that organic
culture, environmental concern, price, subjective norms, quality and familiarity
affect attitudes and thereby purchasing organic food. Mihai Rosca (2011)
proposed consumer health considered to be the vital factor in market
development and segmenting the market towards organic food products.
Somnath Chakrabarti (2010) stated that relative importance attached by the
experts to key variables in the consumers purchase process of organic food.
Marija Radman (2005) indicated that organically produced goods considered as
healthy, tasty and of good quality. Ecologically grown organic food products in
the market and effective marketing strategies makes customers to gain much
knowledge on organic food products.

Literature review shows consumer acceptance of organically grown food has

grown mainly due to the following reasons:

1. It is considered safer than conventionally grown food as it contains fewer

pesticides and fewer agro-chemical residues.

2. It is considered more nutritious and of better quality than conventionally

grown food as the consumer is more aware of the process of production and the
environment in which it is produced

3. Organically grown food supports sustainable agriculture: the food web that
supports organic farms prevents soil decay, the requirement for pesticides is
minimal and those used are organic. Excess use of pesticides often results in
deterioration of health causing the farmers serious diseases like cancer.

4. Its taste differs from conventionally grown food: there are differing
perspectives on the taste of organic food. Some studies say that consumers do
not appreciate the taste of organic food while majority of them report that
consumers prefer organic food as it is tastier.

Literature relating to the above mentioned points are discussed below. Magkos,
Arvaniti and Zampelas (2006) are of the view that Organic fruits and vegetables

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can be expected to contain fewer agrochemical residues than conventionally
grown alternatives; but the significance of this difference is questionable, as the
actual levels of contamination in both types of food are generally well below
acceptable limits. They also mention that though some leafy, root, and tuber
organic vegetables appear to have lower nitrate content compared with
conventional ones, whether or not dietary nitrate indeed constitutes a threat to
human health is a matter of debate. They conclude saying that other factors
rather than safety aspects seem to speak in favour of organic food. This is a
common statement form studies on organic food and therefore leaves the
consumer confused as to the real conclusion. Further research in the area is
extremely necessary to get an opinion.Most studies on consumer perception
however find that the consumer believes that organic is safer than conventional
food. (Rimal and Balasubramanian 2005). Another study on safety relating to
organic food found three segments of consumers with different risk perceptions.
The segments were found to be financial risk orientated, physical risk oriented,
and performance risk oriented. Even the extent of risk perceived in different
product categories differed.

In general, it has been found that use of nutritional label affects purchasing
behaviour mainly because consumers want to avoid the negative nutrients in
food products. The effects can be even greater if labelling is combined with an
information campaign to educate consumers. It appears that nutritional
information affects purchasing behaviour because it influences valuations and
perceptions of the product. (Drichoutis, Lazaridis and Naygya 2006) Mondelaers,
Verbeke and Huylenbroeck (2009) tested the hypotheses that

1. Consumers prefer health over environment related quality traits;

2. Organic farming is perceived to be healthier and more environmentally

friendly than conventional farming;

3. Purchase intention is mainly driven by health related quality traits;

4. Health and environmental concerns influence purchase frequency, though to

a different extent.

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They found that the health-related traits scored better than environmental traits
in shaping consumer preference for organic vegetables. Consumers preferred
organic products over B-branded products, but not over A-branded products,
which suggests that consumers classify organic products among other quality
niche products. However, they attribute a better score to the health and
environment related quality traits of organic products.

3. OBJECTIVES & RESEARCH METHODOLOGY

The focus of the study is on the impact of behaviour on organic food

consumption. Most consumer behaviour studies focus on purchase rather than
consumption as it is the actual point at which a contract is made between the
buyer and seller, money is paid and the ownership of products transfer to the
consumer. Yet from a social and environmental perspective, consumer behaviour
needs to be understood as a whole since a product affects all stages of a
consumption process. Sustainable consumer behaviour is consumers
behaviours that improve social and environmental performance as well as meet
their needs. Behavioural models based around economical rationality tend to
assume a high degree of self-interest on the part of the consumer. While
sustainable behaviour tends to assume a high degree of community/ group
interest. Progress toward more sustainable consumption is therefore not simply
a question of what products and services are purchased, it is about the adoption
of a lifestyle in which sustainability is reflected in all aspects of consumers`

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behaviour. The most advanced form of sustainable consumption behaviour is
among those identified as voluntary simplifiers.

3.1 Statement of the Problem

The green revolution in India reformed the dwindling agricultural sector, but the
costs have been high. Overuse of fertilizers, use of too much pesticide, low
knowledge in agricultural sciences and technology among the farmers,
inadequate education, improper seed collection, hybrid seeds etc. have resulted
in reduced soil fertility and improper balance of nutrients in the food that is
produced. The health of farmers who use chemical pesticides is at risk.
Consumers are at risk. The developed countries have started to realise these
challenges and are propagating the sale and consumption of organic food. The
Indian farmer had been used to the system of Jaivik krishi for generations. If the
produce of this system of agriculture results in better quality food then the
people and consequently the government should look at methods to promote its
use among the citizens. Because of the high cost of conversion and greater
demand in the developed countries, most farmers who are converting to organic
farming are exporting their produce. The inflow of foreign exchange has also
resulted in the government promoting it as an export oriented item. Organic
produce has not got enough push within the country despite its many benefits
to the citizens and farmers. With economic growth and spread of education in
the country, people are now able and willing to make sustainable choices.

3.2 SCOPE AND IMPORTANCE OF THE STUDY

With rising concern of health issues and food safety, many consumers have
turned their site to organic products. The increased consumers' interest in
organic food has been attributed among others to the growing demand for food
free from pesticides and chemical residues.

Organic food promotes a balance of human, other living organisms and the
nature. It also promotes no artificial preservatives and best maintain the
originality of food. This prevents excess use harmful ingredients and thereby
ensures health.

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This study attempted to gain knowledge about consumer attitude towards
organic food product consumption and to see whether there is any potential this
might have for changing their behaviour. The rationale for carrying out this
study is that consideration for the environment could come only from well-
informed citizens who are aware of, and fully committed to their rights to a
quality health and environment. Nevertheless, before any behaviour can be
changed, it is necessary to evaluate the current state of consumers awareness
and knowledge. Therefore consumers attitude, perception towards organic food
products, willingness to pay for organic food product and intention to purchase
organic food will be the main agenda of this study.

3.3 OBJECTIVES OF THE STUDY

1. To asses and evaluate the factors facilitate the consumption of organic

products in the study area.

2. To analyze the potential Markets for organic products.

3. To examine the consumers perception towards organic products in the

study area.

4. To analyze the constraints in marketing of organic products and to suggest

suitable measures thereof.

4. METHODOLOGY

4.1. Data Collection Methods

The study is based on primary and secondary data.

The primary data had collected from selected consumers on Simple Random
sampling techniques and Retail outlets of Organic products, Organic Products
Marketing Agencies, by administering the structured questionnaires.

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The secondary data had collected from Department of Horticulture, Organic
Farming Certification Agencies, APEDA, District Statistical Office in Vadodara,
NISARGA and HASIRU Organic Products Marketing Agencies, and other agencies
involved in production; and marketing of organic products in Vadodara city.
Apart from this, the secondary data will also be collected from published books,
reports, journals, magazines, and internet.

4.2. Sample Design

In order to understand the demand factors in organic products and the

consumers perception of organic products in Vadodara city the following sample
size will be used to collect the primary data.

Sl
No. Name of the Agency No. of Consumers

1 Farm to Kitchen Organic Store 50

2 Satvik Organic Products Retail outlets 50

Total 100

4.3. Statistical Tool for Analysis

The SPSS, Multivariate Analysis, ANOVA (Analysis of Variance) and will be

adopted to analysis the consumers response towards organic product in
Vadodara city.

4.4 . Limitation of The Study

The study has been confined to Farm to Kitchen and Satvik organic stores,
Vadodara and organic products. The inference drawn purely on the responses
obtained from the respondent in the study area.

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 5. RESULTS AND DISCUSSIONS

Table 1. The Classification of Respondents Based on Gender

Percentag
SL Gender No of respondents
e
1 Male 62 62
2 Female 38 38
Total 100 100
Source: Primary Data-2017

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The above table1 reveals that the 62 percent of Respondents were belonging to
Male, remaining of the 38% of the respondents were Female. Majority of the
male respondents were purchased organic products.

The table: 2 shows that 22 percent of the respondents are in the Age between
15-25 Years old, 31 percent of respondents are in age between 25-40 years, 26
percent of respondents are in between 40-50 years old age and remaining
21percent of respondents are Above 50 years old out of 100 Respondents. The
ages between 40-50 years are well aware about organic products, and they are
the head of the family, so that they purchase more in the study area.

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The above table 3 shows that 9% of respondents are having monthly income
between Rs 1000-50000, 21% of respondents are having income between Rs
5000-10000, 26% of respondents are having income between Rs 10000-20000
and rest 17% of respondents are having income Rs .above 20000,out of 100
respondents considered for study.

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The table 4 shows that 54 percent of Respondents qualification is Graduate, 34
percent of Respondents are having Higher School education, 9 percent of
respondents are primary education and remaining 3 percent of the respondents
are Illiterate among out of 100 respondents. The respondents are aware a using
organic products in the study.

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The table 5 shows that 26 percent of the respondents are having between 2-3
members in a family, 49% of respondents having 3-5 members, 18% of
respondents having 7 members and remaining 7% of respondents having more
than 7members in a family out of 100 respondents, in the study area.

The table 6 shows that preferences for organic products among respondents in
the study area. All the respondents preferred organic products and they are
consuming the same , in the opinion that using of organic products,
maintenance of good health.

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The table 7: shows that the 64 percent of respondents are buying Daily Organic
products, because most of the organic products are perishable in nature, 34
percent of Respondents are weekly once purchasing and remaining 2 percent of
respondents once a month a purchasing of organic products out of 100
Respondents.

The figure 8 clearly shows that 76 percent of the respondents purchase the
organic products in organic stores because of quality, freshness, price and other
factors; and the rest of the 24 percent of the respondents go for nearer
producers farm and some of the people go for super markets and retail shops.

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Page | 16
The table 9 describes that the 58 percent of respondents prefer organic
food to maintain good health, 14 percent of respondents prefers for its
taste and other feelings, and 26 percent of respondents prefers to Quality
of food and remaining 2 percent of the respondents were prefers as low
price out of 100 respondents.

The figure 10 shows the 30 percent of the respondents are purchasing

organic products from 3 years, 26 percent of respondents are using more
than 3 years, 25 percent of respondents are using from 2 years and
remaining 19 percent of respondents are using organic products since 1
year.

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The table 11 clearly shows that the majority of the respondent( 42% )are usually
purchase of fruits and vegetables because of the fruits and vegetables are
perishable in nature, 23 percent of people are using food products, and another
16 percent of people are purchasing milk and remaining 5 percent of
respondents are using cereals and pulses.

The
above table 12 shows that 57 percent of respondents are incurred more
expenditure on organic products because of it is more than non-organic
products, 23 percent of respondent were think that it reduces the expenditure,
and remaining 20 percent of respondents thought that there is no difference
between organic and non-organic products.

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The table 13 indicates that the 69 percent of the respondents were opined that
the organic products are very expensive because of inputs and procurement
costs are more than conventional product ,28 percent of respondents were
expressed as moderate and remaining 3 percent opined that its very low
compare to non-organic products in the study area.

The table 14 clearly indicates that the 86 percent of the respondent are ready to
purchase the organic product even frequently increasing price in the future, and
remaining 14 percent of respondents are not able to purchase an organic
products while frequently increasing the price of organic products.

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The table 15 clearly states that the maximum number (73 percent ) of the
respondents were buy organic products through organic products shops ,10
percent of the respondents were through direct shops and producers farm each
of 7 percent the of respondents were purchased in super markets.

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The figure 16 shows that the 59 percent of the respondents were could not
purchase the organic products because of the supply of organic products was
not available regular, 28 percent of respondents were rejected for limited
choices of commodity, and remaining 12 percent of respondents were reject to
because too expensive price of organic products.

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In the figure 17 shows that 41percent of respondents are ready to purchase when increased cost
between 20-40 percent of cost compare to non-organic products, 36% of respondents are ready to
purchase between 40-80 percent, and 18 percent of respondents are ready to purchase between 0-20
percent and remaining 5 percent of respondents are ready to purchase more than 80 percent
comparatively cost of organic products are hiked in the study area.

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The table 18 it shows that the 66 percent of Respondents were agreed the
organic products as very good when compared of non-organic products
regarding all the aspects, 18% of respondents were agreed organic products as
good, 13 percent of respondents were agreed better place compared to no-
organic products, and remaining 3 percent of respondents were agreed there is
no difference between organic and non-organic products.

6. FINDINGS, SUGGESTIONS AND CONCLUSION

6.1. Findings of the Study

The study reveals that a lot of problems are faced by respondents while
purchasing the organic products in the markets.
The Findings of the study are as follows.

The main problems of organic consumers are irregular availability of
organic products. Sometimes, the organic consumer would purchase non
organic products along with organic products.

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The organic products are too expensive than non-organic products. So
that the organic consumers are not to purchasing more quantity of
products.

The varieties of organic products which are available in the market are
limited.

There is a lack of awareness about organic products to consumers.

The organic products are not properly certified from any organic certified
agency or authority.

The organic products shops are limited in the city.

There is a lack of technology for the procurement of organic products.

The consumers are the convinced about higher price about organic
products.

The more number of organic products consumer are aged between 25-40
accented for 31 percent.

The 54 percent of the organic products consumers are Graduates followed

by High school education with 34 percent.

In Vadodara City, out of 100 consumers every one preferred organic

products.

The 64 percent of the consumers purchase the organic products daily.

The organic products stores are very few in Vadodara City, whereas, 76
percent of the consumers are purchased from organic stores, followed by
Super markets with 11 percent.

The 42 percent of the preferred to organic fruits and vegetables followed

by food products with 23 percent in the study area.

The consumer opined that organic products maintain good health (58
percent), the quality of food (26 percent) and good tastes (14 percent).

The 69 percent of the consumers expressed their opinion towards price as

expensive for organic products.

The 86 percent of the consumers are ready to purchase /consume the

organic products, even the price is high only 14 percent of the consumers
are not ready to consume.

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The study reveals that the main sources of supply of organic products are
organic products outlets/shops in the study area.

The main reasons for not to consume the organic products by the
consumers are not availability of organic products regularly and no
choices are given in the organic products.

The overall Ranking of organic products by the consumers as very good
followed by good and better with 66 percent and 18 percent and 13
percent respectively.

The advertisement of organic products is very low when compare to non-
organic products.

Education background of the consumers is one of the important variables
which influence the purchase of the organic products. The result is show
that there are no illiterate among the respondent and majority of the
consumers are graduate.

6.2. Suggestions

The following are the suggestion made based on the results of the study.

There is a need to open organic products marketing shops every extension
areas in the Vadodara city.

The Creation of awareness of organic products is necessary among
consumers.

Sustained improvement in product features would lead to increase in
consumption of organic food products.

The increase frequency of viewing the advertisement of organic food
products and better taste would influence the purchase organic food
products. The influence of advertisement of organic food products with an
increase in education found particularly among consumers.

To persuade to buy organic good products, the variables like familiarity,
personal ideology, social interaction and monitory cost and habits had
greater influence in buying organic food products.

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The familiarity of the organic food products among customers depends on
the promotional efforts of the marketers. The availability organic food
products need wider advertisement.

Allocation of separate shares for organic food products in departmental

stores

Positioning organic food products by their specific attributes

Positioning organic food products by influencing consumer beliefs about

the benefits they derive on consuming.

Positioning by reputation for quality only organic.

The attitudes of never buying could be modified by educating

consumers on the benefits of organic food products.

The price premium is the major hindrance for non-buying of organic food
products. The customers need motivation to buy even with a small price
premium than to just avoid on one hand and the cost of cultivation and
cost of marketing to be brought under check on the other hand.

The products initially should be made available in prominent market

places and also gradually, in all the shops.

Education programme on Environment and the benefits of organic

products and consumption of organic food products will make the
consumers more environmentally conscious Green Consumer.

Organic to be promoted as the way of life them considering it as

product.

The agriculture marketing and co-operative departments to help farmers

get a good price for organic produce.

Ensuring quality of organic by farmers through certification by the Organic

Certification Department, which help them to get a good price.

Demand creation large-scale production and availability of organic food

products should go hand in hand. According a more responsible
advertisement can play a positive and beneficial role in bringing out a
desirable among homemakers in Organic food products market.

7. CONCLUSION

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Consumer behavior plays a major role in Organic food products segment. The
marketers of organic foods need to be innovative and dynamic in order to
complete with the changing purchase behavior in the Organic food products
market among urban residents. The importance of organic food products was
ignored for quite a long period. As results of environmental sustainability,
importance is shifted towards Organic food products rather than conventional
farming. The study brought out the fact that the people were well aware of
images and availability, but not loyal entirely to organic food products. The
respondent without doubt attracted towards Organic food products. So the
marketers must create promotions which are both realistic and moral and the
product availability in terms of volume and variety are required to become
successful in marketing organic food products.

Organically grown products are available in the markets but in limited amounts
though the growing demands are there for such products. Consumers are willing
to pay price premium of 5-50% for organic products which could be viewed as
the cost of investment in human health. Knowledge and awareness about
organic products could affect attitudes and perceptions about the product and,
ultimately, buying decisions of the consumers. Vegetables followed by fruits and
beans are the most preferred and highly demanded the commodities at present
and the price of vegetables specially the leafy ones are higher than other
normal vegetables. But, quality characteristics affect consumers preferences
for organic products; with the most important including health and nutritional
value, taste, and fresh and general appearance. Consumers willingness to
purchase is influenced by limited and erratic supply, higher price of the products
and very limited access and information.

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