Organic Purchase Research Articles

Information or Prices, Which Is Most Powerful in Increasing Consumer Demand for Organic Vegetables?

Based on a unique and very detailed panel dataset covering consumption of organically and conventionally produced vegetables in the years 2005 - 2007, we examine the effects of information about positive health effects of consuming organic vegetables and information about negative health effects of consuming conventional vegetables on demand for organic foods for six different segments of Danish households. Three of these segments are positive towards organics whereas the remaining three segments are negative or indifferent. Using the double hurdle model we estimate partial effects of both directly and indirectly obtained information as well as prices. The results show, that there are larger effects of information for households where the information is in accordance with initial knowledge and attitudes, hence the positive segments react more to information whereas the negative segments react more to prices. “New” consumers can be persuaded to buy organic vegetables by providing information about the negative health effects of consuming conventional vegetables since it increases the probability of an organic purchase. Once consumers have entered the organic marked for vegetables, information that link health and the consumption of organic vegetables will increase consumption. The results are important for firms and producers who want to successfully target information to different consumer groups with the aim of increasing the market share for organic food.

The usefulness of Schwartz's ‘Values Theory’ in understanding consumer behaviour towards differentiated products

The Values Theory adopts a generic framework whereby a set of values is employed across consumer decision-making contexts in a manner that makes no distinction among various product categories. The present study advances this theory by exhibiting the adaptation capability of the generic values instrument (the Portrait Value Questionnaire, PVQ), demonstrating that tailor-made PVQ versions can reflect consumers' motives towards differentiated products (i.e. organic foods). A questionnaire was completed by approximately 1000 households in each of eight EU countries (N = 8171). The organic food-relevant PVQ was developed through a preliminary qualitative phase (i.e. a means-end chain analysis), and its factorial design was validated through CFA, showing high statistical performance. PVQ-based European clusters with strong self-transcendence values comprised large numbers of organic purchasers. Moreover, results point to the fact that when a circumplex taxonomy, such as the PVQ, is applied in a real context (i.e. organic food purchases), the situation-relevant value domains merge into new hierarchical dimensions in absolute respect of the original taxonomy. This conclusion points to PVQ's robustness in adaptability to different situations of human value perspective.

Investigating the Drivers of Consumer Cross-Category Learning for New Products Using Multiple Data Sets

Consumer new product adoption and preference evolution or learning may be influenced by intrinsic or internal factors (e.g., usage experiences, personal characteristics), external influences (e.g., social effects, media), and marketing activities of the firm. Moreover, the preference evolution in a certain category can spill over to other categories; i.e., consumers can exhibit cross-category learning. In this paper, we develop a multicategory framework to analyze the role of the above elements in the formation and evolution of consumer preferences across categories. We analyze these elements by employing multiple data sets, i.e., by combining revealed preference data (from scanner panel), stated data (from surveys measuring consumer lifestyle variables and demographics), and external influences (e.g., media mentions) in a completely heterogeneous framework while considering other facets of the learning process. By jointly estimating the model for organic purchases in six distinct food categories, we also explore the role of category differences. Results show that consumer new product adoption and learning is indeed impacted significantly and to various degrees by the aforementioned factors. We show how, by selectively encouraging purchases under various scenarios, firms can accelerate the learning process, not only for the focal category but also for other categories, thereby realizing considerable incremental profits. These results can be used by both manufacturers and retailers for more efficient allocation of marketing budgets across (new) products.

Cross-border quest: the reality and legality of transplant tourism.

Background. Transplant tourism is a phenomenon where patients travel abroad to purchase organs for transplants. This paper presents the results of a fieldwork study by describing the experiences of Dutch transplant professionals confronted by patients who allegedly purchased kidney transplants abroad. Second, it addresses the legal definition and prohibition of transplant tourism under national and international law. The final part addresses the legal implications of transplant tourism for patients and physicians. Methods. The study involved seventeen interviews among transplant physicians, transplant coordinators and policy-experts and a review of national and international legislation that prohibit transplant tourism. Results. All Dutch transplant centers are confronted with patients who undergo transplants abroad. The estimated total number is four per year. Transplant tourism is not explicitly defined under national and international law. While the purchase of organs is almost universally prohibited, transplant tourism is hardly punishable because national laws generally do not apply to crimes committed abroad. Moreover, the purchase of organs (abroad) is almost impossible to prove. Conclusions. Transplant tourism is a legally complex phenomenon that warrants closer research and dialogue. The legal rights and obligations of patients and physicians confronted with transplant tourism should be clarified.

The relationship between in-store marketing and observed sales for organic versus fair trade products

To stimulate sales of sustainable products, such as organic and fair trade products, retailers need to know whether their in-store instruments effectively enhance market shares. This study uses sales data and a multilevel modeling approach to explain the market shares of sustainable products according to shelf layout factors, price level, price promotions, and consumer demographics. It argues that the effect of these variables differs between organic versus fair trade products, as buying motives might differ, organic buyers tend to be more loyal, and price is a more informative signal of quality for organic products. Results show that the number of facings has a positive relationship with the market share of fair trade brands, but not with the market share of organic brands. The same holds for the price difference with the leading brand, which is important for fair trade brands but not for organic brands. In contrast, an arrangement of the product category by brand is associated with higher market share for organic brands but not for fair trade brands. Additionally, placement at eye level and clustering of items benefits both types of sustainable brands, whereas they appear to be not very sensitive to price promotions. Finally, higher sales of sustainable products are found in areas where the customer base is older and has a higher education level.

Willingness to pay for organic products: Differences between virtue and vice foods

Faced with growing environmental problems, food safety issues, and increasing obesity rates, many consumers desire healthier, less processed natural foods that are less harmful to the environment. Yet organic foods only partially benefit from this market environment, and their market share remains quite low despite high growth rates. The usual explanation for this discrepancy is that consumers are not willing to pay the price premium prompted by an organic claim. In this paper, we explore the reasons behind consumers' (un)willingness to pay for organic food and investigate whether it differs between virtue and vice food categories. The results indicate that in vice food categories, organic claims are associated with lower quality, which seems to be only partly compensated by higher prosocial benefits. The lower-quality perceptions translate into a decreased consumer willingness to pay (WTP). We supplement the empirical results with data on organic purchases in the Dutch food market. These data show that market shares of organic food are indeed lower for vice categories of organic food.

Trans-European comparison of motivations and attitudes of occasional consumers of organic products

Recent research has found clear differentiation between views of regular and occasional European consumers of organic products, with distinct regional differences. There was also evidence that some uncommitted consumers gradually consume more organic products and eventually become committed consumers. However, most research focuses on regular, loyal or heavily committed organic consumers, and scope for market growth based on occasional consumers has gone unexplored. We report on studies that, based on existing literature, explore the complex, interdependent and subjective nature of occasional consumers’ appreciation of organic products. The first evidence source was an analysis of focus groups of occasional consumers conducted in five European countries, which compared quality and safety attributes and production and processing techniques between organic and conventional products. It can be concluded that many attitudes are very product-specific. The second was a large-scale survey involving 5500 respondents in 6 countries of organic purchasers, each answering questions relating to one of the four products featured in the focus groups. Past purchases of organic foods were recorded, enabling regular and occasional organic consumers to be identified. Structural equation models based on these data enabled description of a number of statistically significant differences in attitudes and beliefs about quality and safety in food products between regular and occasional consumers of organic foods.

Explaining Organic Purchase Reasoning: Interest in Local Production and Concerns about the Environment and Biotechnology

Explaining Organic Purchase Reasoning: Interest in Local Production and Concerns about the Environment and Biotechnology

Analysis of Factors Influencing Organic Fruit and Vegetable Purchasing in Istanbul, Turkey

This article examines the influences on the purchasing decisions of fruit and vegetable consumers and presents findings from a survey conducted with 385 respondents living in urban areas in Istanbul, Turkey. It uses a binary logistic model to estimate factor effects in organic fruit and vegetable purchasing in Turkey. The results indicate that concern for human health and safety is a key factor that influences consumer preferences for organic food. Findings will help organic product suppliers understand the key factors influencing consumer purchasing and consumption behaviors.

Purchase Drivers of Canadian Consumers of Local and Organic Produce

In recent years, the new trend for local and organic produce has transformed the landscape of fruit and vegetable purchasing. To this effect, “local” and “organic” logos have become the norm in many retail outlets. To examine the effects of different “local” and “organic” logos on Canadian consumers, a consumer survey was used to identify preferences for various external attributes and to identify consumer segments within the buyers of both local and organic purchasers. Our results indicate that the “Foodland Ontario” logo has the largest effect on likelihood of purchase and also increases willingness to pay within the overall sample. Furthermore, there are gender, region, and income differences associated with the likelihood of purchase and willingness to pay given various logos. Through this study, three consumer segments were identified, “Confident in Produce Produced in Ontario,” “In Organic We Trust,” and “Socially Responsible Locavores,” each of which has their own preferences for external characteristics.

What Drives Household Choice of Organic Products in Grocery Stores?

This paper studies how households choose organic products on a given store visit. We develop a three-stage purchase incidence/brand choice/purchase quantity model for organic products. Shared random effects parameters link the three stages of the model. We empirically quantify the effects of category variables, marketing mix, and demographic variables on the purchase of organic products using a unique household panel dataset that includes actual organic purchase data from two markets, by over 4,500 households in 25 stores for the period between January 2004 and June 2009. First, we find that the purchase of organic products is greater among the high income, college educated, and older families as well as among consumers holding high-level occupations. Second, households tend not to purchase organic products when buying in concentrated categories. Third, on average, households tend to buy organic store brands more than the organic national brands. Promotions of organic brands (feature ad and display) are less likely to drive households to buy organic brands and so does the organic brand's distribution breadth. Finally, price has an inverted U-shaped effect. We discuss the implications of these results for retailers, manufacturers and researchers.

Estimating the Demand for Organic Foods by Consumers at Farmers’ Markets in Northwest Arkansas

To answer the question, “How interested in buying organic foods are the majority of the current shoppers at our farmers’ market?,” more than 300 consumers at three diverse farmers’ market locations were surveyed for their organic food purchasing habits. Comparisons were made between purchasers who were new to purchasing organic foods and purchasers who had been buying organic foods for many years. Analysis showed that a majority of respondents (74%) were frequent purchasers of organic foods, buying once or twice a month and a significant percentage (44%) of those had been purchasing organic foods for 7 years or more. Opportunities exist to expand organic sales at these farmers’ markets in Arkansas, where only 42% purchased most of their organic foods and 80% surveyed answered “yes” that they would buy more organic if its price was similar to that of conventional foods.

Eating clean and green? Investigating consumer motivations towards the purchase of organic food

Growing consumer concern for health and environment issues has resulted in increased attention towards the purchase and consumption of organic food. This has driven an increase in organic research, especially as marketers seek to understand the motivations behind consumer purchases of organic goods. This study explored the effects of health consciousness, environmental concern, organic knowledge, availability, quality, price consciousness, subjective norms, risk aversion, perceived control and familiarity on organic attitudes, organic purchase intentions and organic purchase behaviour. These variables formed the antecedents of the causal model which utilised Ajzen and Fishbein’s (1980) Theory of Reasoned Action as the framework of analysis. Results showed strong support for the relationship between organic knowledge, subjective norms and environmental concern on organic attitudes. While health consciousness, quality, subjective norms and familiarity were found to influence purchase intentions, familiarity was the only variable found to exhibit a significant relationship with organic purchase behaviour. This paper will discuss the implications of these results for marketers. It will also consider the limitations of the study and areas for future research.

ORGANIC FOOD: A STUDY ON DEMOGRAPHIC CHARACTERISTICS AND FACTORS INFLUENCING PURCHASE INTENTIONS AMONG CONSUMERS IN KLANG VALLEY, MALAYSIA

This study attempted to gain knowledge about consumers’ intention to purchase organic food products and the demographic characteristics of the respondents in terms of their organic product consumption. Data were collected in supermarkets within 3 different areas in Klang Valley, Malaysia using mall-intercept approach. A total of 177 respondents were generated. The data obtained from the survey were analyzed using chi-square test, ANOVA, correlation analysis and multiple linear regression tests. Result indicated that the intention to purchase organic products were heavily influenced by the perception on organic product worth of purchase and the belief on the safety and health aspect of the product. Respondents were divided into organic buyers and non-buyers categories. Among the organic buyers majority consumers believed organic food to be healthier, tastier and better for environment compared to conventional food.

Organic Food Consumption Patterns

This research addresses two important issues for the future expansion of organic consumption in France. The first one is related to knowing whether the organic choice is a permanent feature of consumer's attitude or not: Do organic buyers occasionally pick one organic product or do they choose organic for "several" categories? The second issue concerns the impact of prices on buying organics which is revisited, distinguishing between capturing new consumers and increasing the demand coming from people already involved in organic markets. These questions are examined using the market basket approach; the price issue requires further estimations of demand models. The study relies on two staple food products, eggs and milk. The findings are: (i) choosing organic for one of the two items reinforces the probability of purchasing also the organic version of the second item; (ii) marginal reductions of the organic price have no impact on the decision of buying organic rather than conventional products; (iii) when people already purchase organic products, they may be price sensitive; and (iv) organic buyers' demographic profile is not related to income neither to age nor to family size, but to the educational level.

Consumers’ Intent: In the Organic Food Market

ABSTRACT This paper examines the determinants that influence consumers' intention to purchase organic products. Ajzen's theory of planned behaviour (TPB) provides the conceptual framework of the research and the appropriateness of the theory is tested. A survey of 144 consumers was used to determine the beliefs which determine consumers’ intent to purchase organic food. Furthermore, attitudes, subjective norm, and perceived behavioral control were examined to determine whether they affect consumers’ intention to make organic products purchases. The findings offer considerable support for the robustness of the TPB in explaining intention in the sample. In addition, empirical evidence suggest that price, availability of organic products, product information and the subjective opinions of others are important determinants of consumers intent to buy organic products. The results are consistent with previous research.

Societal and individualistic drivers as predictors of organic purchasing revealed through a portrait value questionnaire (PVQ)‐based inventory

Abstract The Schwartz's Portrait Value Questionnaire (PVQ) has extensively been used in personal values research. The present survey validates and tests in a value‐based segmentation task a 17‐item PVQ‐based inventory that includes consumer values related to organic food purchasing, using a nationally representative sample of 1043 Greek consumers. The main assumption of the survey is that consumer segments that place more emphasis on specific organic food‐related values would present different magnitude of beliefs and purchasing behaviour towards organic products. Two 2nd‐order value factors (named ‘individualistic’ and ‘societal’, respectively) emerged from exploratory and confirmatory factor analyses comprising 14 out of the initial 17 PVQ values. In the next phase of the analysis, hierarchical clustering was implemented based on those factors. Through the clusters emerged, a clear relation between consumers' ‘societal’ (universalism and benevolence) value similarity, higher frequency of organic purchasing and higher likelihood of organic‐related beliefs was clearly identified. This fact supports the applicability of the PVQ typology in predicting consumer behaviour in various product contexts. Copyright © 2008 John Wiley & Sons, Ltd.

The Injustice of Enforced Equal Access to Transplant Operations: Rethinking Reckless Claims of Fairness

The globalizing or totalizing imposition of a particular understanding of justice, fairness, or equality, as seen, for example, in Canada's single health care system, which forbids the sale of private insurance and the purchase of better basic health care, cannot be justified in general secular terms because of the following limitations: (1) the plurality of understandings of justice, fairness, and equality, and (2) the inability to establish one understanding as canonical. The secular state lacks plausible moral authority for the coercive imposition of one such account on peaceable, consenting adults. This state of affairs, with regard to the weakness of human moral epistemological powers, means that the secular state fails to have the moral authority to forbid coercively the sale and purchase of organs. It further lacks the secular, moral authority to impose equal access to organ transplantations. Assertions of such authority amount to reckless claims of fairness, and for this reason, health care policy must be set within the constraints of limited, constitutional regimes.

What we don’t understand about public interest in organics

In a demographically and geographically representative US-based telephone survey of 1201 persons in 2003, it was found as expected that those who purchase organic foods tend to consider organic production methods when they decide what foods to eat. Yet a number of surprising sub-groups showed a disconnect between those who buy organics and those who place importance on organic production. For example, the religiously observant and those for whom food plays an integral role in their lives (eating for pleasure, love, and tradition), on lower income or with less education are more interested in how food is produced than are higher income and more educated groups. We argue that these sub-groups may be overlooked in industry and public policy decisions related to organic food markets and production. Additionally, the highly correlated high income and more education subgroups who purchase organics may be doing so more because of fashion and peer-related influence than because they place importance on organic production methods. (However, women both buy organics frequently and think about organic production methods in their eating decisions.) These findings complicate the literature that shows simpler relationships between organic purchases and education and income. We suggest that further research needs to be done on the influence of affordability, availability, and trust in labeling on organic purchases and support for organic production systems.

Organic Consumers' Profile and Their Willingness to Pay (WTP) for Selected Organic Food Products in Greece

The adoption of different food quality assurance schemes by the EU, such as the organic label, has been a response to the growing demand for certified quality food products among the European consumers. Several useful benefits have been claimed for these schemes, including their value as marketing strategies. The present study develops at a two-fold level: first, it attempts to offer more insights into the Greek organic consumer profile, using a nationally representative sample of 1,612 households. Second, the study examines the effectiveness of the organic label as a marketing strategic orientation, given that addressing the highly motivated, quality conscious consumer is the core objective of any food quality assurance policy. The use of conjoint analysis in exploring organic buyers' Willingness to Pay (WTP) for a variety of organic products (olive oil, raisins, bread, oranges and wine from organic grapes) is selected as the most appropriate approach to that target.