A STUDY ON CUSTOMER SATISFACTION TOWARDS FARMERS’ MARKETS

(UZHAVAR SANTHAI) IN COIMBATORE

Sangeetha Achyuth, Student, M. Com, PSGR Krishnammal College for Women, Coimbatore

Abstract
The goal of each country regardless of its economic system is to increase productivity so
as to fulfil all the wants and needs of its citizens and thus to improve the standard of living of its
people. Middlemen exist at various levels between the farmers and the consumers and exploit them
through malpractice in weighing, handling, and payments. Direct marketing of farm produce by
farmers, targeted to a dedicated consumer base, has been largely unexplored in India. There are
various ways in which farmers in Tamil Nadu have been able to successfully market their products
and gain customer loyalty and support. It works on the idea of setting up marketplaces that directly
link producers and consumers and exclude traders and middlemen from exploiting the farmers.
This study has been undertaken to understand the level of satisfaction of customers towards
Farmers’ Markets in Coimbatore and the factors that can be implemented to better its performance
in the city.

Introduction
Agriculture contributes nearly 40%-45% of the national income and provides livelihood to
about 70% of the country. It also provides fodder to sustain livestock whose number runs to several
crores. India known as the food basket of the world is home to a huge variety of fruits and
vegetables. Unfortunately, the present system of marketing of agricultural produce in India is
extremely defective and needs a thorough overhauling. Agricultural marketing often involves the
middlemen's’ exploitation of farmers as well as consumers. To eliminate middlemen, the
Government of Tamil Nadu introduced a concept called “Uzhavar Santhai” or Farmers’ Market, in
the year 1999. The farmer is motivated to bring his produce to this market as he can directly market
and sell it to the consumers. It is a method in which farmers are allowed to market their produce
directly to the consumers. Hence it is a government-run market system. It helps to satisfy both the
farmer as well as the consumer; the farmer sells his fresh produce to the consumers, understands
their needs and wants, while the customer purchases locally-grown produce straight from the farm
at very affordable prices.

Statement of the Problem

The purchase of fresh fruits and vegetables is an integral part of a consumer’s expenditure.
Every consumer looks forward to buying good quality, pesticide-free, hygienic and safe produce at
affordable prices. These issues have not only raised consumer awareness, but they have led to an
increase in alternative options for consumers to purchase their food from farmers’ markets. The
study tries to assess the satisfaction of customers towards Famers’ Markets. It also aims to analyze
the expected facilities and assess the overall quality of service provided at Uzhavar Santhai.

Objective of the Study

1. To measure the level of satisfaction of consumers visiting Farmers’ Markets.

2. Analyze suggestions of customers to be implemented at Farmers’ Markets.
Research Methodology
Purposive sampling technique was used to gather data for the study. The study uses primary
data collected using a structured questionnaire distributed to customers who purchase from
Farmers’ Market (Uzhavar Santhai). For further reference purposes, secondary data from Journal
publications, articles, blogs, and books have been used.

Review of Literature
Panchanatham and Salvavinayagam, (2008), through their study found that consumers
are satisfied with the freshness, availability of produce and quality of produce purchased from
Farmers’ Markets. The paper further stated that selling at Uzhavar Santhai motivated the farmer to
have 100% direct contact with consumers. Rathinam (2015) also stated that customers have a
good image of Uzhavar Santhai and choose to shop from there because of the freshness of produce
as well as the lack of middlemen involved. Trobe (2001) in the findings of his qualitative research
mentioned that the lack of middlemen in direct marketing played a major role in customers
satisfaction as there were reduced prices and direct interaction between the farmers and the
community. Evidence from the study by Otto and Varner (2005) revealed that consumers nearing
their retirement age and those past retirement age show great satisfaction towards shopping from
direct farmer to consumer markets as they were located in places close to homes and had access to
public transport nearby. However, Rudra Saibaba and Suresh Vadde (2009) and Ahmed Salma,
Subhendu Dey (2012), attempted a study to analyze the preferences, needs and wants of the
vegetable buyers. The study revealed that majority of respondents wanted an improvement in the
behaviour of sellers, better parking facility as well as other amenities at the Rythu Bazaar. Addition
of features to improve the look of the market was also suggested for better functioning. Similar to
the above study, Shanmuga Sundaram and Nataranjan (2001) undertook a study on Uzhavar
Santhai to analyse its benefits and problems and to suggest ways to improve its performance. The
findings mentioned that over 60% of the respondents were satisfied with the quality and variety of
items offered and expressed that working hours of the market be extended as people don’t get
public transport early in the morning. They suggested that the government should provide special
buses that ply during market working hours to help reach to and from the market.

Analysis and Interpretation

Demographic Profile - Percentage Analysis

Percentage Analysis has been used to segregate and classify the Demographic Profile of
consumers visiting Farmers’ Markets in Coimbatore.
• Maximum number of respondents belong to the age group of 26-35 years.
• 58% of the respondents are Female.
• 88% of the respondents are Married.
• 38% of the respondents are Post-Graduates.
• 42% of the respondents are Salaried employees.
• 62.7% of the respondents are from Urban areas.
• 66% of the respondents live in Nuclear families.
• 44% of the respondents have 1-3 members in their family.
• 94% of the respondents have 1-3 earning members in their family.
• 39.3% of the respondents have a Monthly Household Income between Rs.25,000-Rs.50,000.
Level of Satisfaction - Descriptive Statistics

Descriptive statistics has been used to summarize the data and analyse the mean and the standard
deviation of the variables. The highest value of the mean is used to analyse the level of satisfaction of
customers visiting Farmers’ Markets.

Table 1 Level of Satisfaction - Descriptive Statistics

No. of Std.
Factors Classification Percent Mean
Respondents Deviation
Not Satisfied - -
Availability of
Neutral 16 10.7 2.89 0.310
seasonal fruits
Satisfied 134 89.3
Not Satisfied - -
Availability of
Neutral 16 10.7 2.89 0.310
seasonal vegetables
Satisfied 134 89.3
Not Satisfied - -
Freshness of items
Neutral 26 17.3 2.83 0.380
in the market
Satisfied 124 82.7
Not Satisfied 3 2.0
Product variety Neutral 61 40.7 2.55 0.538
Satisfied 86 57.3
Not Satisfied 2 1.3
Price level Neutral 38 25.3 2.72 0.479
Satisfied 110 73.3
Not Satisfied 3 2.0
Quantity Neutral 35 23.3 2.73 0.490
Satisfied 112 74.7
Not Satisfied 4 2.7
Shelf life of
Neutral 44 29.3 2.65 0.531
products
Satisfied 102 68.0
Display and Not Satisfied 30 20.0 2.26 0.772
arrangement of Neutral 51 34.0
products Satisfied 69 46.0
Use of right Not Satisfied 15 10.0 2.38 0.662
measurements to Neutral 63 42.0
weigh items Satisfied 72 48.0
Bargaining capacity Not Satisfied 10 6.7 2.45 0.619
Neutral 63 42.0
Satisfied 77 51.3
Working hours of Not Satisfied 11 7.3 2.54 0.631
the market Neutral 47 31.3
Satisfied 92 61.3
Garbage disposal Not Satisfied 92 61.3 1.54 0.748
system Neutral 35 23.3
Satisfied 23 15.3
Maintenance of the Not Satisfied 80 53.3 1.69 0.812
area Neutral 37 24.7
Satisfied 33 22.0
Navigation inside Not Satisfied 35 23.3 2.11 0.756
the market Neutral 63 42.0
Satisfied 52 34.7
(Source Computed Data)
 A three-point scale was used to measure the level of satisfaction of the consumers, where 3 was
assigned “Satisfied”, 2 was assigned “Neutral” and 1 was assigned “Not Satisfied”. Upon
calculating the mean and standard deviation of the various factors, it was found that the mean value
is the highest for “Availability of Seasonal Fruits” and “Availability of Seasonal Vegetables” with
a score of 2.89 followed by Freshness of items in the market. From this it can be understood that
consumers are highly satisfied with the availability of seasonal fruits and vegetables whereas they
are least satisfied with factors such as Maintenance of the area which has a mean score of 1.69 and
Garbage disposal system with a mean score of 1.54. Hence from Table 1 it can be understood that
while several factors contribute to the satisfaction of consumers, factors with a lower mean score
show that steps need to be taken to improve the condition and working of the Farmers’ Market.

Demographic Factors Vs Level of Satisfaction of Consumers Visiting Farmers’ Markets -

ANOVA

ANOVA has been used at 5% level of Significance to test the mean difference between the
Demographic factors and Level of Satisfaction of customers visiting Farmers’ Markets.

H0: There is no significant difference between Demographic factors such as age, educational
qualification, employment status, residential area and monthly household income and level of
satisfaction.
Table 2 Demographic Factors Vs Level of Satisfaction - ANOVA
No. of
Std. F
Factors Classification Responde Mean Sig. S/NS
Deviation Value
nts
Below 25 years 13 2.5000 0.21660
26 - 35 years 55 2.3822 0.32389
Age 1.288 0.281 NS
36 - 45 years 48 2.4813 0.29361
Above 45 years 34 2.4765 0.30447
No formal education 9 2.5256 0.43391
School Level 21 2.4390 0.33205
Educational
Diploma/Degree 44 2.4275 0.30019 0.281 0.890 NS
Qualification
Post-Graduation 57 2.4600 0.28418
Professional 19 2.4126 0.28651
Salaried 63 2.4030 0.31196
Self Employed 32 2.4956 0.32514
Employment
Professional 10 2.5640 0.31217 0.929 0.449 NS
Status
Home maker 32 2.4509 0.27797
Retired 13 2.4231 0.25270
Urban 94 2.4483 0.29309
Residential
Semi-urban 50 2.4404 0.33206 0.011 0.989 NS
Area
Rural 6 2.4433 0.24410
Daily 11 2.4809 0.29908
Few times a week 33 2.4915 0.34709
Frequency of
Once every two 0.499 0.684 NS
shopping 55 2.4140 0.28827
weeks
A few times a month 51 2.4420 0.29380
5 am - 6 am 91 2.4490 0.30544
Preferred 6 am - 7 am 40 2.4235 0.28511
0.210 0.889 NS
time 7 am - 8 am 13 2.4515 0.32370
8 am – 9 am 6 2.5250 0.40218
Less than Rs.500 14 2.4336 0.29984
Monthly Rs.501 - Rs.1000 66 2.4252 0.27804
0.290 0.833 NS
Expenditure Rs.1001 - Rs.2000 53 2.4764 0.31989
Above Rs.2000 17 2.4376 0.36193
(Source Computed Data)
The results of the ANOVA table above show the F-Value as 1.288 for age, 0.281 for educational
qualification, 0.929 for employment status, 0.011 for residential area, 0.499 for frequency of
shopping, 0.142 for preferred time of visiting Farmers’ Markets and 0.290 for Monthly Expenditure
incurred on purchases from Farmers’ Market. The calculated P-Value for the above factors show
0.281 for age, 0.890 for educational qualification, 0.449 for employment status, 0.989 for
residential area, 0.684 for frequency of shopping, 0.868 for preferred time of visiting Farmers’
Markets and 0.833 for Monthly Expenditure incurred on purchases from Farmers’ Market. Since
the P-Value at 5% level of significance is more than 0.05 for the above factors, it can be concluded
that there is no significant difference between Age, Educational Qualification, Employment Status,
Residential Area, Frequency of shopping, Preferred time and Monthly Expenditure incurred while
purchasing from Farmers’ Markets and the Levels of Satisfaction of Consumers i.e. the above
demographic factors do not have an effect on Levels of Satisfaction. Hence the Null Hypothesis is
accepted.

Likeliness to recommend Farmers’ Market - Descriptive Statistics

Descriptive statistics has been used to summarize the data and analyse the mean and the
standard deviation of the variables. The highest value of the mean is used to analyse the likeliness
to recommend Farmers’ Markets. The following table shows the responses of the population
towards recommending Farmers’ Markets as a good place to shop for fresh produce.
Table 3 Likeliness to Recommend - Descriptive Statistics
No. of
Factors Classification Percent Mean Std. Deviation
Respondents
Not Likely - -
Likely to
Neutral 27 18.0 2.82 0.385
recommend
Likely 123 82.0
(Source Computed Data)

A three-point scale was used to measure likeliness of recommending Farmers’ Markets as

a good place to shop for produce. A value of 3 was assigned to “Likely”, 2 to “Neutral” and 1 was
assigned “Not Likely”. From table 3 it can be understood that 82% of the respondents are likely to
recommend Farmers’ Markets while no respondent has chosen not to recommend Farmers’
Markets.

Factors to be implemented in Farmers’ Markets - Descriptive Statistics

Descriptive statistics has been used to summarize the data and analyse the mean and the
standard deviation of the variables. The highest value of the mean is used to analyse the factors to
be implemented at Farmers’ Markets.

Table 4 Factors to be implemented in Farmers’ Markets - Descriptive Statistics

No. of Std.
Factors Percent Mean
Respondents Deviation
Separate parking area 107 71.3 2.63 0.628
Extension of market working hours 108 72 2.66 0.589
Regular supervision & inspection of
127 84.7 2.82 0.450
daily activities
 Proper maintenance of the area 131 87.3 2.83 0.469
Proper garbage disposal system 124 82.7 2.76 0.564
Wheel chair facility 78 52 2.43 0.649
ATM Facility 92 61.3 2.50 0.693
Trolley and Helper facility 87 58 2.41 0.761
Cold storage 112 74.7 2.68 0.594
(Source Computed Data)

A three-point scale was used to measure the agreeability of respondents towards the
following suggestions. The value 3 was assigned “Agree”, 2 was assigned “Neutral” and 1 was
assigned “Disagree”. From the table it can be understood that “Proper Maintenance of the Area” is
the most requested factor. 87.3% of the respondents suggested this factor and its mean value is the
highest at 2.83. This data may be useful for further development of the market area and its
functioning.

Conclusion
Based on the above discussion, it could be inferred that most customers are satisfied with
the variety, freshness and quality of produce sold at farmers’ markets. Several suggestions were
put forth by customers on how to improve the quality of service at the market. If the government
takes steps to improve the working conditions of the market as well as attend to the needs of the
farmers or sellers, it will benefit both the society as well as the agriculture sector.

Reference

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of Supermarkets and Rythu Bazaar - The farmers’ Market of Andhra Pradesh”,
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2. Daniel Otto and Theresa Varner (2005), “Consumers, Vendors, and the Economic
Importance of Iowa Farmers’ Markets: An Economic Impact Survey Analysis”, Iowa
State University Digital Repository, pp:03-04

3. Henry La Trobe (2001), “Farmers’ markets: consuming local rural produce”,International

Journal of Consumer Studies, 25(3), pp:181–192

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