Business Model for Promoting Organic Vegetables

Abstract

Consumers’ interest in organic vegetables increases every year, because they aware on healthy life and environment. However, these organic vegetables have not been marketed everywhere. Only high-income people often eat organic vegetables. Producers of organic vegetables intend to enlarge their earnings by expanding the market. One of the organic vegetable producers began to apply business model by training, and th e other producers established organic community and used “instagram” as a media to communicate amongst the member. The objective of this paper is to explain type of factor that motivates consumers to join in organic community, constraint faced by consumers and producers, and expectation of consumers and producers. This research was conducted in Bandung. The respondents of this study were entirely members who joined together in this community. This research expects to provide inputs to policymakers, stakeholders, producers and related institutions. Also, this research is aimed to provide a prototype of the business model in developing organic products and educating other societies for a healthy life. The research found that trust is the main factor of respondents in the business model using “instagram”, while word of mouth is the main factor of respondents in business model by training. The main constraint of producers is waste from environment that hampers organic vegetables cultivation. For the customers, the high price of organic vegetables is the main constraint. The main expectation for producers is the low cost of certification, while for costumers is the presence of a trusted Indonesian organic emblem.