Understanding the Drivers of Consumer Buying Decisions in the Organic Food Market: A Perspective of Firms and Retailers

Author: K.M. Suman, Siddayya and M.S. Ganapathy

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Abstract

The present study aimed to analyse the factors influencing the consumer buying decisions in organic food market in view of firms and retailers. For the study 40 organic retail stores were selected. 5-point Likert scale were used to compute the factors driving the consumer decisions. The results showed that consumers prioritize chemical-free/naturally grown products with mean Garrett’s score of 46.42. From the demand factors it was indicated that there is a bright future for organic food products business with 75.00 per cent of the respondents strongly agreeing. Whereas word-of-mouth recommendation played a significant role in promotion of organic products (77.50 %). On the other hand, it was believed that consumers feel that the organic products are costly (45.00 %). 57.50 per cent of the firms strongly agreed that labelling creates a feeling of trust among consumers. Majority (82.50 %) of the firms strongly agreed health and product safety concerns are gaining importance among consumers. Majority of the firms strongly agreed that the organic food products are expensive (40.00 %) and thus is the factor responsible for not buying the organic food products. The results also revealed that majority of the firms (87.50 %) the consumption of organic food products might increase if the products are less costly. Some of the major challenges identified from the study were higher cost, shorter shelf life, limited availability, lack of awareness, lack of trust about the authenticity of organic food products. According to the study understanding the factors that influence consumer buying decisions in this market is crucial. This research, from the perspective of firms and retailers, explores the dynamics that shape these decisions. This research also unveils barriers to organic food product consumption, including cost, information gaps, and perishability perceptions. Addressing these challenges by reducing prices, providing better information, and improving storage practices can increase organic food consumption.

Keywords

Organic, Firms, Retailers, Consumers, Buying decisions, Perceptions

Conclusion

From the study it can be concluded that the organic food industry is experiencing a significant upswing, with consumer showing interest, in healthier and more sustainable food choices. In this regard, understanding the factors influencing consumer buying decisions is crucial for the success of businesses and retailers operating in the organic food market. This study has examined these factors from the unique perspective of firms and retailers. Chemical-free and naturally grown products emerged as the most influential factors in driving consumer choices, indicating a strong preference for natural and safe food options. Consumers are increasingly prioritizing safety and health, as demonstrated by their choice for products ideal for all age groups, combining versatility with nutrition. Lack of trust and information are factors that discourage purchases, highlighting the importance of building credibility and educating consumers about organic food products. Firms and retailers perceive a promising future for organic food products, with high demand expected to continue, driven by growing health and environmental awareness. Word-of-mouth recommendations and media play essential roles in promoting these products, but awareness initiatives are needed to educate consumers and highlight research findings. Price concerns are evident, with consumers viewing organic products as expensive. However, consumers are willing to pay a premium for these products, reflecting their commitment to quality and sustainability. Clear labelling significantly influences consumer trust, emphasizing the importance of transparent information. The study identifies various barriers to organic food product consumption, including cost, lack of information, and perceived perishability. To increase consumption, these barriers need to be addressed by reducing prices, enhancing product information, and improving storage practices.

References

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How to cite this article

K.M. Suman, Siddayya and M.S. Ganapathy (2023). Understanding the Drivers of Consumer Buying Decisions in the Organic Food Market: A Perspective of Firms and Retailers. Biological Forum – An International Journal, 15(10): 719-726.