CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION

“To eat is a necessity, but to eat intelligently is an Art”

-Francois De La Rochefoucauld

The twenty first century era has evidenced large number of innovative technological changes in the

field of Agriculture. Earlier, farmers were practiced traditional farming with the mixed, inter and rotation

cropping to have a maximum yield and this found as an integral part in the food production process of India

(Patel, Sharma and Singh, 2020). But those traditional and conventional farming relied upon using chemicals

and pesticides for betterment of yield and this have a danger signal towards preservation of eco system and

environment. But organic farming relied upon sustainable techniques to have natural fertility. Mutlu (2007)

pointed out that sustainable food production is inevitable for positive growth in industrialized agriculture and

it could be achieved only through the organic agriculture, a method with the combination of traditional

farming and the advanced technology

1.2 HISTORY OF ORGANIC AGRICULTURE

The universal best practice in agriculture is “ORGANIC “where no synthetic fertilizers and pesticides

is applied in the process. This great concept was actually developed by Sir Albert Howard in the early of

1900’s and has its strong base during 1930s with the ideas and suggestion of Rudolph Steiner, J.I. Rodale,

Lady Eve Balfour, Sir Albert Howard and others. Its earlier birth is in Europe followed by United States.

This technique facilitates: improvement in the fertility of the soil, enhanced the varieties of plants, and

increased the quality of the food with more nutrients. Simin and Trbic (2016) in their studies about the

history of organic production pointed out that the year 1924-1970 was a struggling and difficulty period for

the organic agriculture as it was considered as a biodynamic production. But the outcome positive result
makes the farmer switching over from conventional farming to the organic one. The subsidy system along

with the legal framework of the Government towards the organic agriculture also strengthened the organic

concept with National Standards.

The merit of this latest technique is also highlighted by International Federation for Organic

Agricultural Movement in such a way that the organic agriculture through all the essential role is mainly to

sustain and enhance the health of ecosystems and organisms and Ozguven (2012) clearly discussed that this

organic sector growth has witnessed a rapid interest among consumers and retailers. The farm view of the

organic farming is given in Figure 1.1 below:

Figure 1.1: Organic Farming

1.2.1: PROBLEM AND PROSPECT IN ORGANIC FARMING

Organic farming are always based on certain standard parameters need to be followed for effective

result. But this technique has faced many problems since from inception like shortage in bio mass for

preparing the natural manure, inadequate infrastructure, unsuitable crop rotation, and insufficient seed grain

production, lack of expert knowledge in the field, low promotional activities, high input costs and low

output/yield. Also, there found lack of Government policy to overcome the complexities in this field. There

is no financial support from the Government which is available in other countries. Even farmers faced
problem in understanding the methodology and the quality needed for the natural manure used in the organic

agriculture.

But in our country, Government has analyzed every problem in the organic farming and made several

alternatives for the supply of standardized soil nutrients like vermin compost and biofertilizers. Innovative

technologies with the help of expert in the field have been developed to produce large quantities of the

nutrients. This made the organic agriculture in gaining momentum as an alternative method of agriculture in

this modern system of India As a result; India is now holding a unique position among 172 countries in the

world. (Source: Google)

1.3: CHARACTERISTICS OF THE ORGANIC FARMING

There evidenced a strong base that the fertility of the soil could be enriched only through organic

farming where natural mineral resources were applied in the process and this is the main reason of

recognizing this concept. Some of the basic importances of the organic farming are:

1. It enhances the biological fertility of the soil and supplying good nutrients to the crops.
2. Controlling the pests through ecological balance.

3. Facilitates recycling of all the waste in the form of manure within the farm

4. Giving back life to wild animals through good environment.

Behera et al. (2012) highlighted the characteristics of the organic farming as

1. It has utilizing the local resources at the maximum level and minimizes the purchasing of

outside resources.

2. Ensuring the basic biological and ecological functions of the natural resources.

3. Maintaining stable diversity of plants and animals for ecological balance and economic

stability

4. Increasing the crop yielding intensity

Due to the above characteristics of organic agriculture, the interest of the farmers and the consumers has

increased.
A schematic representation of the organic farming is given below for easy understanding

Figure 1.2: Organic Farming Cycle

Global Share of Organic Farming

8%
3%
Asia
45% Africa
25%
Europe
south America
North America
Ocenia
6% 13%

(Source:World of Organic Agriculture IFOAM &FiBL Outlook, ICREIR Knowledge Report)

Figure 1.3: Schematic Diagram of Global Share in Organic Farming

The above graphical representation showed the global sharing in connection with organic farming

and from this; it is revealed that maximum country engage in organic farming is Ocenia with 45% followed
by Europe with 25%. While analyzing the growth of organic agricultural land and the share of India, it is

noticed that the share at the rate of 0.3% during 1999 have risen to 1.4% during 2017.

I.4: GROWTH OF ORGANIC PRODUCTS IN INDIA

“The future is great for Organic in India. It’s growing at a fast rate”
- Dr. A.K. Yadav,
Advisor, Department of Agriculture, Govt. of India
Organic food products are not a new one to India and in fact, early Indians have consumed

raw vegetables and fruits during their wild life. The ancient work like Ramayana and Mahabharata have

witnessed about the practices of organic farming during early civilized people. Garibay and Jyoti (2003)

informed that natural farming is an eminent and interested form for the sustainable progress in Indian

farming Industry. Our country always bestowed with diversified climatic condition suitable for the organic

farming and also has abundant labor for cultivation. Hence our country always shows a competitive

advantage in sustainable agricultural practices. This is not only towards conventional farming but also for the

organic farming. Also the supports from agricultural institution have boosted the small and niche organic

market into a wider sector. According to the Global Agricultural Information Network (GAIN) in report

number IN2020-0064 dated 15.06.2020; India is having 30 percent of the total certified organic producers in

the world. During the year 2018-2019, the organic area accounted for 1.08 percent of the total agricultural

land and 4, 53,622 farmers were practicing organic agriculture/farming under participatory guarantee system

of Government of India. Particularly, Madhya Pradesh, Rajasthan, Maharashtra and Uttar Pradesh have large

number of organic certification holders. The Food and Agriculture organization in the report for the year

2018-2019 informed that the overall production of organic products during the year 2018-2019 in

Tamilnadu was 884137.27 Metric Tonne through PKVY-PGS certification and 15739.578 Metric Tonne

through NPOP /Third party certification. The report of the Agriculture and Processed food products Export

Development Authority (APDEA) for the year 2019-2020 stated that out of the total area 2,299,222.37

hectare in the entire country, organic area contributed to 13,34,530.986 hectare and particularly, Tamilnadu

state contributed to 7,140.90 hectare against the total area of 26,005.73 hectare. Regarding the farm
production, our state has achieved 17,155.17 hectare against the total production of 17,821.17 hectare. The

major organic products of our Country are detailed in the underneath table:

Table 1.1: Organic products in India

Sl.No. Category Type of the product

01. Commodity Tea, Coffee, Rice, Wheat
02. Spices Cardamom, Black Pepper, White Pepper, Ginger, Turmeric,
Vanilla, Mustard, Tamarind, Clove, Cinnamon, Nutmeg, Mace,
Chilli
03. Pulses Red gram, Green Gram
04. Fruits Mango, Banana, Pineapple, Passion Fruit, Sugarcane, Orange,
Cashewnut and Walnut
05. Vegetables Okra, Brinjal, Garlic, Onion, Tomato, Potato
06. Oil seeds Sesame, Groundnut, Castor, Sunflower
07. Others Aromatic and Medical plants, Cotton, Herbal plants

The following diagram representing the Indian Organic Food Market and it has been informed that

the market is having a strong growth in the ensuing years.

Source: Imarc
Figure 1.4 : Indian Organic Food Market
The details of the growth of the agricultural land the share from 1999-2017 is given in the under

mentioned graph:
 Figure 1. 5: Growth and share percentage of organic farming in India

In today’s context, organic food market reaches the wide stream from their niche position. This

sustainability is due to the support of the local food producers, fairness in the trade activities and mainly the

health awareness among the consumers towards the organic product making them to buy even though the

cost is found higher due to engagement of more labor than the conventional farming. Increasing in the

number of organic outlet and their motivation through word of mouth also one of the cause for the increasing

business of organic product.

Despite of the niche market, several organic brands now available in the market and it is due to the

interest of the consumers towards it and companies releasing 100% innovative natural oriented in all the

areas like beverages, species, and health care. In the report of Business World during January 2021, the

current Indian domestic market estimated at Rs 40,000 MN is likely to increase by Rs 100, 000 MN to Rs

120,000 MN by the year 2020 with the similar increase in exports. Indian Government encouraging farmers

to take up organic farming and also providing financial assistance to them who choose to adopt organic

farming The union budget of 2019-20 also confirmed the implementation of Zero budget Natural Farming

(ZBNF) which encourages growing of crops without adding any fertilizers and pesticides or any other

foreign elements. Zero budgets refer to zero production cost in growing the crops.
 The State Government of Tamilnadu has also focused to stabilize the food grain production ensuring

nutrition security as per the announcement in the 12th five year plan of the Union Government.

1.5: MARKETING TREND OF ORGANIC PRODUCTS

Makadia and Patel (2015) pointed out that the organic agriculture and sales has elevated because of the

consciousness and awareness among the consumers and created a significant relationship between the human

being and the earth. Yes, of course, today, the farming terminology always highlighting the organic

agriculture which aims at cultivating the land and made the soil alive and in good health. Indian farmers

have adopted organic agriculture due to the reason of low input for the traditional farming; ill effect that

happened to the conventional type of processing and to capture the emerging organic based market.

Over the decade, organic products sales found increased but it varies with the areas. This is because

of the interest among the consumers those who have health consciousness, food safety and eco-friendly

attitude. Hence the demand of the organic products rest with the attitude and buying behavior of the

consumers and their mind set. Even though those products have better taste, feeling and enriched with

nutrients, people could prefer only if it is properly marketed by explaining the merit of the product than the

conventional one.

Uvaneswaran and Girimurugan (2015) informed that good marketing opportunities could have the

chances of catering the organic products among the members of the public but at the same time, availability

of the product should be confirmed by the organization in all the area. Besides sustainability in the process,

the important challenges for the marketers especially for the organic product are the sustainable consumer

patterns in buying the product. Baourakis (2004) while discussing the marketing trend towards organic

products in the 21st century pointed out that the overall image towards the organic products is positive among

the consumers but there exists some constraints like no appropriate background information and the

marketing problem which encompasses supply, distribution and promotion. Moreover, increasing in the

organic food demand creates competitive dynamics in the market and every organization should focus on the

innovative decision, technology and marketing concept for the organic sector development.
 Dutta, Mukherjee and Kapoor (2017) while comparing the opportunities and risks in the organic

companies between India and US revealed that most of the organic companies marketed their products

through fairs and exhibitions, retailers and some of the companies were selling their products through their

own health centre. In particular, product which was exported to other countries was sent as unbranded and

this product was marketed with the source countries brand name after processed and packed. But at the same

time most of the Indian companies have high growth potential for their organic product business.

1.6: CONSUMER BEHAVIOR

Every consumer behavior is mainly based on the theory of planned behavior and in particular, a

person’s purchasing behavior has been influenced by his/her intention. It is the cognitive signal about their

willingness to perform a particular type of behavior.

Figure 1.6: Conceptual Frame work of Theory of Planned Behavior

According to this theory, intention is determined by three parameters like “Attitude towards the

behavior”(Degree of evaluation) ; Subjective Norms (Approval to that behavior by other people) and the

Perceived Behavioral Control( Psychological feeling of using the preferred product). The outcome of every

behavior is depending upon the available resources and if any shortage noticed means, nobody could move

to that type of behavior. This Theory is very much helpful in analyzing the consumer purchasing behavior

especially in the food product market.

1.6: STATEMENT OF THE PROBLEM

Organic product sector is now becoming as an important business sector in India. In this business, our

country ranks among the top 10 places universally. Most of the earlier research has revealed that people

giving preference in organic product for their health consciousness and safety. But the cost of that organic

product found high due to the difficulty in the growing process, long duration in the process, extensive labor

and intensive use of nature manures. In addition, it has shortage storage time and shelf life due to absence of

preservatives and chemicals. Rodiger and Ham (2015) clearly discussed that organic food price was the

major barrier to purchase among the consumers even though there evidenced sufficient marketing growth.

This price sensitive behavior could be reduced only through the price knowledge (i.e.) creating awareness by

explaining the merits of the organic products among those consumers. But not all the consumers will be

convinced with this awareness and this is purely depending upon the customer attitude. Another barrier in

the organic product purchasing is the inadequate distribution channels (Melovic et al.2020). Marketers of

this field have not studied the customer attitude and their behavior control in a full pledged manner as it

involves psychological process and they could not able to identify their attitude and the purchasing behavior

towards organic products . This is the actual problem in marketing the organic products among the

consumers and they have to nurture these optimistic attitudes through clear and better communication

campaigns and this may convert the behavioral control and intention of the consumer to a real one

(Martinez,2020).

1.7: NEED OF THE STUDY

Normally, for any product purchase, the attitude of the consumer positively depends upon the

purchase attitude, behavioral control. Particularly towards purchasing of the food product, culture plays a

significant role in addition to the above parameters. Now-a-days, organic sector is emerging as an important

among the consumers in view of health and safety consciousness. It is evident that consumer’s choice alone

lead to increase the demand. Particularly, Madhya Pradesh, Rajasthan, Maharashtra and Uttar Pradesh have

showed a massive growth and development in producing and consuming organic products. As Tamilnadu is

one of the largest states in India having various segmented consumers, it is essential to analyze the growing
trend of the organic product business in this state. The researcher have considered Chennai as the area of

study because it is the largest metropolitan city in Tamilnadu with the area of 1,189 Square Kilometers with

the population 46,46,732 constituting 23,35,844 Male and 23,10,888 Females. (As per Census 2011). Out of

which the average literacy rate is found to be 90.18% (Male: 93.70% and Female: 86.64%). Customer

perception towards purchasing of organic products is mainly depending upon their level of education. As

this city has a good literacy rate among the other districts in Tamilnadu, conducting research in this city will

give an exact result about the buying behavior of those consumers.

1.8: SCOPE OF THE STUDY

The selected area of this study is “Chennai City”. The reason behind this selection is Chennai is the

largest metropolitan city in Tamilnadu encompasses with various customers with different attitude towards

purchasing any product. Only the level of education of the consumers plays a significant role in having a

thought of purchasing organic products due to environmental concern among them. As Chennai is having

more literate person with the average rate of 90.18% there is a wide scope in doing the research in Chennai

for getting a precise result on the selected topic of the study.

1.9: OBJECTIVES OF THE STUDY:

The researcher has confined the following objectives based on the earlier research works and the

conceptual model of the study.

1. To examine the association between the demographic profile of the respondents and the factors that

influencing the consumer purchasing behavior towards the organic products in Chennai City.

2. To analyze the association between the factors that influencing consumer purchasing behavior

towards organic products and the customer satisfaction and loyalty

3. To find the impact of the factors that influencing the consumer purchasing behavior towards organic

products on customer satisfaction

 4. To investigate the impact of the factors that influencing the consumer purchasing behavior towards

organic products on customer loyalty

5. To analyze the consumer preference in purchasing variety of the organic products in Chennai City.

6. To give recommendation to the marketers of the organic products based on suggestions of the

consumers of organic product in Chennai City.

1.10: CHAPTERIZATION

The current research have the following chapters:

1) Chapter –I

Discuss with the introduction part constitutes discussion about the conventional farming Vs Organic

Farming, Characteristics, Performance and marketing trend of organic Farming and products in India,

consumer purchasing behavior towards organic products , Definition of the problem, Need and Scope

of the study, objectives of the study along with the Chapterization.

2) Chapter II

Dealt with the Literature review along with the identifying the Research Gap of the study

3) Chapter III

Discussed the Research Methodology consist of Objectives, Formulation of Hypothesis, Conceptual

framework, Determination of sample size and the construct development.

4) Chapter IV

Dealt with the Data analysis and the interpretation of the Results

1) Chapter V

Summary of the findings, Discussion, Managerial Implication and Recommendation

CHAPTER II

LITERATURE REVIEWS

2.1 INTRODUCTION

In the present study, the researcher has taken more reviews from existing earlier studies related to

consumer perception and satisfaction towards organic farm products. The reviews were collected from the

national and international journals and various studies. The earlier studies which are related to the

consumer perception and satisfaction of selected organic products using consumers and also other

ordinary foods related to the present study. This study enlightens the reason for why the more consumers

interested to buy the organic farm products from sample respondents in Tirupur district. It also provides

more relevant details about organically producing products in India. It will help to understand the

consumer perception and their satisfaction underlying potential of organic farming system in Indian

context. The valuable literature reviews were used for the present study which is given below:

Parasuraman, et al. (1985)1 defines service quality as “The discrepancy between consumers’

perceptions of services offered by a particular firm and their expectations about firms offering such

services”. If what is perceived is below expectation, consumer judges quality as low and if what is

perceived is meets or exceeds expectation then consumer sees quality to be high. Critical component of

service quality identified are; consumer’s expectation which is seen as what they feel service provider

should offer and this is influenced by his/her personal needs, past experience, word-of-mouth and

service provider’s communications. However, this meaning of expectation is that of service quality

literature which is different from expectation in the customer satisfaction literature which defines
 expectation as predictions made by consumer about what is likely to happen during an impending

transaction. Consumers’ perception of performance is what he/she experiences.

Blake (1987)2 had discussed about “Organic farming and growing”, According to Francis Blake

the principles of organic agriculture are organic agriculture aims to be in harmony rather than in conflict

with natural systems. The powers of nature are harnessed and developed to their fullest extent, rather than

dominated. It adopts an approach that minimizes the use of non-renewable forms of energy, Organic food

aims to be of optimum nutritional value, The organic world strives to be localized. Local markets,

decentralized systems of distribution and processing are sought and Organic agriculture does not pollute

the environment.

Parasuraman et al. (1988)3 had framed the analytical technique, “SERVQUAL: A Multiple-Item

Scale for Measuring Customer Perceptions of Service Quality”. The seminal multi item scale

(SERVQUAL) developed by the researcher for standardized surveys of service quality. SERVQUAL

refers conceptually to an ex post evaluation of the perceived service elements. It is differentiated from

attitude research by concrete purchase experiences of the customers, thus it builds on a comparison of

customer expectations and the experiences made with a specific retailer.

Jolly et al. (1989)4 in their study on, “Psychographic, Demographic, and Economic Factors

Associated with Organic Poultry Consumption”. Organic produce consumers may be thought of as having

a general concern for how their food is treated. A study looked at consumers’ concern for artificial

coloring, additives, preservatives, and irradiation. Differences were found between purchasers and non-

purchasers of EIPs in their levels of concern for these food treatments. The authors found that buyers

of organic produce have a

statistically significant higher level of concern for artificial coloring, additives and preservatives, and

irradiation, than non-buyers.

 Morgan et al (1990)5 had investigated on, “Expanding the Organic Product Niche: Issues and

Obstacles”. It argues that organic produce should be marketed as premium products and that retailers

are not taking advantage of the premium nature of organic produce in order to keep prices high. Morgan

et al. finds that 76.6 percent of organic produce sellers use the same or lower markup on organic

produce as they do for non-organic produce. Only 23.4 percent use a higher markup on organic produce.

Icek Ajzen (1991)1606 suggested that, at least in certain contexts, we need to consider

not only perceived social pressures but also personal feelings of moral obligation or

responsibility to perform, or refuse to perform, a certain behaviour.

Morris et al. (1993)7 had studied on “What Americans Think About Agrichemicals”. It found

that when respondents were given Food and Drug Administration (FDA) and EPA findings on pesticide

residues on food, over 90 percent of Americans supported dramatic reductions in agrochemical use, and

85 percent would favor politicians who promote stricter laws for pesticide use. Not only has it been

shown that consumers will, at least temporarily, switch from conventionally grown to organically-grown

foods when the government publishes information regarding agrochemical threats, but they also want

action by their politicians.

Barry J. Babin, William Darden and Mitch Griffin (1994) 8 describe in a study, the

development of a practical two dimensional scale of perceived personal shopping value. The scale

recognizes that the consumer value is indicated in both utilitarian and hedonic terms.

Asubonteng et al. (1996)9 due to intense competition and the hostility of environmental factors,

service quality has become a cornerstone marketing strategy for companies. This highlights how

important improving service quality is to organizations for their survival and growth since it could help

them tackle these challenges they face in the competitive markets. This means that service-based

companies are compelled to provide excellent services to their customers in order to have a sustainable
competitive advantage.

There is however, a need for these organizations to understand what service quality is in order to attain

their objectives.

Hoffman and Novak (1996)10 has proposed that two broad categories of behaviour in

which consumers engage during the phase of pre-purchase on the Internet are goal directed and

experiential behaviour. They also indicated that the flow experience is a crucial antecedent of

online purchase behaviour. When shoppers are in the flow state, irrelevant thoughts and

perceptions are screened out and they are immersed in the interaction with the websites. As flow

experience occurs during network navigation, an issue E-marketers must consider is whether

consumers’ skills are competent to meet the challenges of the virtual environment.

Harendar Raj et. al. (1996)11 had studied about the organic farming concept on “Need

for Eco-friendly Farming”. Eco -friendly farming is a farming of integration of biological,

cultural and natural inputs including integrated disease and pest management practices. It not

only advocates for stopping or restricting the use of chemical fertilizers, pesticides and other

chemicals but it emphasizes the need for farming which should create an ecological balance and

a micro-environment suitable for health and growth of soil microflora, plants, animals, farm

workers and finally the vast population which consume the farm produce.

Katrin Woese et al. (1997)12 had investigated on, “A Comparison of Organically and

Conventionally Grown Foods Results of a Review of the Relevant Literature”. This study is

concerned with the evaluation of the results from more than 150 investigations comparing the

quality of conventionally and organically produced food or of foods produced with the aid of

different fertilization systems. Cereals, potatoes, vegetables, fruits, wine, beer, bread, cakes and

pastries, milk, meat, eggs and honey, as well as products made from them, have been
included in the review. Most of the studies evaluated are physicochemical investigations of

concentrations of desirable and undesirable ingredients, pesticide residues, contaminants, sensory

analyses and feed experiments with animals. Nutritional studies in humans and experiments which

used holistic methods of analysis are also included. Even when the sampling methods are of the same

type, a great many factors have to be taken into consideration which was not directly related to the

production system but which do influence food quality to a large degree. Despite the heterogeneity of

the sample material, some differences in quality between products from conventional and organic

farming or foods produced with the aid of different fertilization systems have been identified.

Krissoff (1998)13 reported that on his study, “Emergence of U.S. Organic Agriculture

- Can We Compete? American”. The consumers purchase organic products because of a

perception that such products are safer, healthier and more environmentally friendly than

conventionally produced alternatives. Human health, food safety along with several other product

characteristics such as nutritive value, taste, freshness, appearance, and other sensory

characteristics influence consumer preferences.

Brian Harris et. al. (2000)14 had analyzed about “Demands for Local and Organic

Produce: A Brief Review of the Literature”. This paper reviews articles investigating the

characteristics and preferences of consumers of, and demand for, Environmentally Identified

Products (EIPs) in the US. Findings are detailed on demographic variables, psychographic

variables, willingness to pay, and consumer behavior, both for EIP consumers and non-EIP

consumers. Numerous of the variables such as income and family size those are generally

essential for determining food demands do not appear important in determining demand for EIPs.

Moreover, the nature of the variables that actually do determine demands for EIPs are poorly

understood. Very little research has been done on demands for locally-grown produce.

Consumers generally have a favorable attitude towards organic produce, and information and
availability are the most important barriers to consumption.

Magnusson et al. (2001)15 carried out a study on the attitudes towards organic foods among

Swedish adults, asking specifically about the purchase of organic milk, bread, potatoes and

milk.

Luth et. al. (2002)16 have evaluated on “The Future of Organic Retailing Stores: A

Customer Satisfaction Survey”. This study analyses the impact of customer satisfaction on

economic success considering as an example the organic food retail trade. The study is based on

data collected from 885 customer interviews and an analysis of management ratios of 11 organic

food shops. The results explain that customer satisfaction is a relevant key to economic success.

The collateral inquiry of customer and shop data allows the confirmation of an essential

economic effect. The results of an online survey among 170 customers show that customer

satisfaction and commitment are necessary prerequisites for the economic achievement of small

organic food shops, but they are not enough to explain customer loyalty.

Lockie et. al. (2002)17 had studied about, “Eating “green”: Motivations behind organic

food consumption in Australia”. Consumer interest in organically grown vegetables has

increased rapidly in the recent years due largely to the concerns they have on food safety, health,

and the environment. It is important that organic products are perceived as food without the use

of chemicals or growth hormones, and are grown or produced naturally. Besides, marketers

should know the contributing factors in order to maintain the high market share of organic

products. It is also necessary to analyze the consumers’ beliefs and values which are related to

increased consumer demand for organic products. Notably, price and availability are considered

as barriers on the pattern of purchasing behavior and consumption.

Raffaele Zanoli and Simona Naspetti (2002) 18 study showed that the organic
consumers do not want to be driven by the market, but they want to consume healthy food. At the

same time they are not keen to renounce the pleasures of life.

Ramona Robinson and Chery Smith (2002) 19, in their study evaluated for specific

psychosocial variables associated with intention to purchase sustainably produced foods, and it

was determined that beliefs, attitudes, subjective norm, and perceived control were independently

predictive of intention.

P. O’Donovan M. McCarthy (2002) 20 showed a strong relationship was found

between the purchase of organic meat if available at an affor+dable price and non-purchase of

organic meat. Over 90 per cent of respondents who did not purchase due to expense would

purchase organic meat if available at an affordable price.

Athanasios Krystallis (2002)21 stated that the major cause of non - organic preference

has been organic products high price, high price, again directly stated by the non-buyers as well

as 44.6 per cent of the buyers, among which separate cluster of price sensitive consumers is

identified.

Christos Fotopoulosa et al. (2003)22 stated in their study that healthiness, quality,

information, attractiveness and good taste are the five main motivational benefits of wine

purchase. Secondly, pleasure is the value- leverage of wine consumption. Thirdly, the difference

between organic buyers and non- buyers obtain from the differences in the evaluation of

these motives in consumers cognitive structures and the different motives with which

wine’s organic character is associated.

Panyakul (2004)23 has investigated on, “Organic agriculture in Thailand. In: FAO, ed.

Production and Export of Organic Fruit and Vegetables in Asia”. Thailand's organic movement

was initiated by farmers and local NGOs in the 1980s. As the negative impacts of modern

conventional agriculture such as dependency on Off-farm inputs, indebtedness of farmers or

 degradation of the environment increased rapidly, people were looking for alternatives to the

“green revolution” methods. There was also a rise of awareness concerning negative health

effects by agrochemicals, both for farmers and for consumers. So the Alternative Agricultural

Network was established to foster sustainable farming practices, including organic agriculture.

Lokhande (2004)24 this study entitled, “Rural Marketing a Study of Consumer Behaviour

Trends”. It was observed an illiteracy to be a major hindrance in rural region market and thus

audio-visual aids can enable the marketers to take their communication effectively to rural areas.

It was found that brand does not matter to the rural area consumers; they desire to fulfill their

needs. Some consumers were brand loyal also and didn‘t make brand changes. Thus, marketers

should focus on brand worth. The distribution channel should be made efficient so that rural

retailers are not deficient of necessary goods. Although barter system was found to be

widespread notably in the rural areas, daily wage labors were purchasing products on cash

payment basis only.

Sheth et al. (2004)25 had investigated on, “Customer Behavior: A Managerial

Perspective”. The buyers usually will recognize a problem or need when they sense a difference

between his or her actual state and some desired state. For example, a person who has been ill for

some time, may realized a need and look or be motivated for a healthier choice of product such

as an organic product. In this stage, they will search information related to the organic food

products and this process is linked to the perception in term of

selecting the information and assigned a meaning to them. Subsequently, this will lead to how they

perceived the products. Perception is one of the psychological factors that can influence consumer

purchase behavior, and it is the process by which an individual selects, organizes and interprets the

information he or she receives from the environment.

Anne Wilcocky et al. (2004),26 conclude that consumer attitudes towards food safety can be
differentiated based on the type of food safety issues of concern. Brewer, Sproul, and Craig

(1994), proposed that six factors dominated respondents’ attitudes towards the safety of

their food. They include chemical issues like hormones in milk and food additives, health

issues like cholesterol contents and nutritional imbalances, spoilage issues like microbial

contamination, regulatory issues like food inspection and labelling, deceptive practices like

weight- reduction diets; and ideal situations like length of time for pesticide safety assessment.

Emmanuel K. Yiridoel et al. (2005)27 found that the consumer knowledge and awareness

will continue to be important in the organic food market in two respects. First, there is

still a potential segment market that is not yet informed about organic foods. A second aspect is

those who do not consider organic products may have a general knowledge about them.

Ramesh et.al. (2005)28 had studied on, “Organic farming: Its relevance to the Indian

Context”. Increasing consciousness about conservation of environment as well as health hazards

associated with agrochemicals and consumers’ preference to safe and hazard-free food are the

major factors that lead to the growing interest in alternate forms of agriculture in the world.

Organic agriculture is one among the broad spectrum of production methods that are supportive

of the environment. The demand for organic food is steadily increasing both in the developed and

developing countries with an annual average growth rate of 20–25 percent. Organic agriculture,

without doubt, is one of the fastest growing sectors of agricultural production. However, there are

certain issues that should be clarified before we go for a large-scale conversion to organic

agriculture. In India, vast stretches of arable land, which are mainly rain-fed and found in the

Northeastern region where negligible amount of fertilizers and pesticides are being used and

have low productivity, could be exploited as potential areas for organic agriculture. Considering

the potential environmental benefits of organic production and its compatibility with integrated

agricultural approaches to rural development, organic agriculture may be considered as a

development vehicle for developing countries like India, in particular.

Acs et. al. (2005)29 had provided a research study on “Modeling Conventional and

Organic Farming: a Literature Review”. Literature shows a significant development of organic

farming in Europe but with considerable differences between countries. These depend on

general agricultural policy, specific policy incentives, and also on differences in

consumer behavior. This paper reviews scientific literature on the evaluation of the technical,

economic and environmental aspects of conversion from conventional towards organic

production. The methods and results of empirical and normative modeling studies at the farm

level, with special regard to farm management and policy, are analyzed. Empirical modeling

studies show the importance of incentives and agricultural policy, and the usefulness of

integrated modeling for determining the effects of different policies on farm management.

Normative modeling shows the effects of new policy instruments and technology, and allows the

high level of detail needed for what-if analysis. Normative models of conversion to organic

farming confirm the importance of incentives and the agricultural policy context.

Susanne Padel and Carolyn Foster (2005)30 indicate that the barrier towards buying organic

food revolved around the issue of the price while they agreed that organic products are

more expensive. They highlighted variation in premiums between different organic product

categories and the places of purchase, a link with the disposable income of the household and

with other food choices, such as the proportion of convenience food that is purchased.

George M. Chryssohoidis and Athanassios Krystallis (2005) 31 found that, the higher price

is an important obstacle for only 12.5 per cent of sample. The limited importance of high price as

a drawback of organic products purchasing is also verified by the high percentages of stated

willingness to pay for organics.

 Schobesberger (2006)32 in his dissertation work titled “Consumers' Perception of Organic

Foods in Bangkok, Thailand”. Organic farming is a growing sector in Thailand. In the recent

years a domestic market for organic products has developed as consumers are more and more

concerned about the risks resulting from pesticide residues in vegetables. The method applied

for data collection are semi-structured interviews with 7 key factors involved in organic

agriculture in Thailand, were 848 consumers are taken to study with a standardized questionnaire

in local language in 7 different supermarkets in Bangkok. The respondents are divided into 3

groups as 40 percent have purchased organic products, 26.9 percent have already heard of

organic but don’t buy organic and 33 percent have never heard of organic farming. The results of

this study point out a lack of knowledge of organic in general, about the specifics of this

production method and its differentiation from other labeled products. Respondents do not make

a sharp distinction between 'safe', 'hygienic' and 'organic' food. There is not much information

available on the different labeling programs. Although consumers are interested in organic

products they are not able to identify them, as they don't know the organic labels well.

Krishnaswamy et al.(2006)33 have studied about “Management Research and

Approaches”. It has identified that Management Research has three predominant approaches:

First, there is the quantitative empirical approach in which the design provides for obtaining data

that can be treated by rigorous statistical analysis. Second, the mathematical modeling

approaches use mainly logical thinking and operations research models in decision making

situations. The third approach is the qualitative approach of organizational theorists who

emphasize studying and understanding particular problems and situations based on voluminous

empirical data.

Wang & Chen (2006)34 had conducted a research to examine the current use and predict

future Web-based marketing activities of U.S. convention and visitor bureaus. A survey was
sent to 600 randomly selected American convention and visitor bureaus with a focus on

assessing the applications included in the bureaus’ Web sites, their Web site promotion

techniques, and customer relationship management programs in relation to these Web sites. The

results indicate that most bureaus’ Internet marketing activities are relatively limited, focusing on

providing travel information to prospective visitors.

Nagasimha Kanagal (2006)35 had studied relationships as a focus on marketing aids in

the understanding of consumer needs and wants, which is useful to implement profitable

exchanges. Relationship marketing helps customizing solutions to important customers, more

efficiently than otherwise, knowledge and application of relationship marketing helps in

achieving customer satisfaction, customer retention and customer acquisition. Relationship

marketing a tool of furthering the customer understanding and interactive processes. Relationship

marketing outputs can thus be usefully used, as inputs in product design and development, want

identification, improving selling systems, pricing strategies. It is one of the supports to

systematic action setti

ng in competitive marketing strategy.

Achim Spiller et. al. (2006)36 have appraised about “Customer satisfaction and loyalty

as success factors in organic food retailing”. In this paper we discuss the impact of customer

satisfaction and enthusiasm on the economic performance of small retailers in the organic

market. The joint examination of customer satisfaction and shop data verify necessary

economic effects. The study is based on 948 customer interviews and an analysis of

management ratios of 12 organic food shops in Germany. The results show that customer

satisfaction is a relevant key to sales performance. The paper ends with managerial and scientific

implications. The survey demonstrates the outstanding significance of customer enthusiasm

which is closely connected with word of mouth communication and shopping frequency.
 Pirjo Honkanen et al. (2006)37 conclude that the relation between attitude and

intention was positive, as expected, and quite strong, indicating that consumers with

positive attitudes towards consumption of organic food are more likely to form intentions

to consume such food, thus converting positive attitudes to intentions.

Nihan Mutlu (2007)38 has stated in his dissertation on “Consumer Attitude ad Behavior

towards Organic Food: Cross-cultural study of Turkey and Germany”. Organic food market is

very challenging in Europe and developing rapidly with different rates between western and

eastern part. Quantitative data is collected from 50 German and 64 Turkish consumers by using

random sampling method. Majority of the Turkish and German respondents consider that

organic food is healthy, include high nutritional value and positive image about organic

production methods. Cross-cultural consumer study reveals that “health” and “supporting organic

movement and sustainability” are similarly reputation on the top three places in the motivation

list for Turkey and Germany, whereas high price and lack of availability reported as verdict

barriers but with different degree of importance.

Bengtsson (2007)39 stated that adopting the Internet for advanced marketing operations

opens up challenging opportunities for firms of all sizes. However, such adoption might destroy

investments in present market channels and thus has the characteristics of radical innovation.

The results of analysis show that composition of factors on which firms

base their decision to adopt advanced Internet-based marketing operations varies significantly

with firm size.

Koshy et al. (2007)40 had studied in “Marketing Management”. It defines organic retailing

as “Retailing involves a direct interface with the customer and co-ordination of business
activities from end to end”. While, organized retailing refers to trading activities undertaken by

licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include

the corporate-backed hypermarkets and retail chains, and also the privately owned large retail

businesses. The organized retailers provide various standardized services to their customers.

Daniel A. Devcich et al. (2007) 41 found that modern health worries were significantly

associated with a higher use of organic foods. People with high modern worries were more

likely to choose functional foods with disease- preventing properties.

Iris Vermeira and Wim Verbekeb (2007),42 in their study investigate

determinants of sustainable food consumer behaviour in Belgium. A study was conducted in

which attitudes and behaviour as well as the role of individual characteristics like

confidence and values related to sustainable products were analyzed. The aim of the

analysis was to explore the influence of determinants as hypothesised by the theory of planned

behaviour (TPB), attitudes, perceived behavioural control, social norms on general

sustainable consumption intention and specifically depending on consumer's perceived

confidence and personal values. The strong positive effect of attitudes on behavioural

intention, also social norms, PCE and perceived availability have an

additional positive effect on the purchase intention.

Glen Greer et.al. (2008)43 have evaluated in their study about “Comparison of the

Financial Performance of Organic and Conventional Farms”. The Agriculture Research Group

on Sustainability (ARGOS) is comparing the sustainability of organic, integrated and

conventional farms in New Zealand by scrutinizing environmental, social, economic and

management parameters. The ARGOS research group is an unincorporated joint venture of the

AgriBusiness Group, Lincoln University and the University of Otago and it was formed in

2003. Research in the sheep/beef and kiwifruit sectors, which is the subject of this paper,
involves comparison of three farming systems. In 2003, twelve clusters of three farms were

selected in both the kiwifruit and sheep/beef sectors. Although the results show that there are

some significant differences in farm costs and revenue across farming systems within a sector,

there is greater variability in the “bottom-line” indicators of profitability within farming

systems than across them.

Iris Vermeira and Wim Verbekeb (2008)44 showed that consumers who hold traditional

values (e.g. be humble, devout, respect traditions, no extreme ideas or feelings) are more

inclined to buy sustainable products, while power seekers (influential, preserving image, having

authority, respect and power over others) are less inclined.

Leila Hamzaoui Essoussi and Mehdi Zahaf (2008),45 in their research underline

that cultural values cause consumers to give priority to different values and means of achieving

those values when making the decision to buy organic food.

Moira Dean et al. (2008)46 opine that addition to predicting intention to buy,

positive moral norm was shown to have an independent contribution route to attitude, for both

fresh and processed organic products. This suggests that people assess food related behaviours

not only in terms of the costs and benefits but also in terms of the positive and negative feelings

generated. The results of the study were in line with other studies that have shown an

independent predictive effect of perceived moral obligation on behavioral intentions. For

organic foods, it is the positive moral norm that was an important predictor as opposed

to negative moral norm or moral obligations.

Voon Boo Ho (2009)47 had made an attempt study about “Customer-expected Quality in

Organic Products: Evidence from Sarawak”. This paper aims to present the customer- expected

value attributes and observe the relationships among product quality, customer

satisfaction, and customer loyalty. In addition, the possible influences of customers’

demographics on the quality expectation were also investigated to provide insights for effective
market segmentation and targeting. The survey data obtained from the customers were

quantitatively analyzed and the exploratory factor analysis suggested four key quality

expectations, namely authenticity, price, nutritional, and emotional values. All these dimensions

are significantly and positively associated with the customer satisfaction and loyalty, with

nutritional value being the most important dimension pursued by the relative price. The findings

also indicate that there are significant attitudinal differences among the customers whose levels

of green knowledge are different.

Kamal et. al. (2009)48 had investigated about “Consumers’ Willingness to pay for

Organic Products: a Case from Kathmandu valley”. The Nepal Permaculture Group surveyed 180

consumers using semi-structured questionnaires to examine peoples’ perception about organic

products and assess their willingness to pay for such products. The study revealed that all

respondents are willing to pay price premium, but the level of acceptability varied considerably.

The survey also suggested that the consumption of organic products is increasing; however,

product development and innovations in certification, processing, labeling and packaging are

needed to further stimulate demand.

Ruzica Lonari et. al. (2009)49 had studied about “Consumers' attitudes analysis regarding

organic food in Eastern Croatia”. The study on European movement regarding increased

consumer concern toward food safety and quality as well as health and nutritional aspect of food

is present in Croatia as well. Consumer perceptions and attitudes regarding organic food were

analyzed on sample of 124 respondents, by means of face-to-face survey. Aim of paper was to

generate founded marketing strategies, market segments identification, sales channels and

promotion activities. Survey was accomplished in association with BIOPA

- Free working association for organic production advertisement actions and students of Faculty

of Agriculture in Osijek. According to survey analysis, future promotional activities should be

focused on health aspect, taste and environmental care. Certain attention should be concentrated

on price and availability as well as development of direct sale and specialized shops. Moreover,

producers should pay certain attention to declaration elements especially like marking shelf

life, absence of harmful substances, functional food aspects and nutritional value.

Gupta (2009)50 explored the consumer behavior in the study titled, “Consumer behavior

for food products in India”. The study found that though quality of food products was one of

the most important parameters for food product purchase decision, people did not see much

improvement in the quality related parameters for food items during the last ten years. People

rated various parameters differently for different product groups. The results also indicated that

cleanliness and free from pesticides were the most important criteria for products like food

grains, pulses; store quality, marketing mix and taste, flavor explained the maximum variance in

the purchase decision of fruit and vegetables.

Willer et al. (2009)51 have studied on, “The World of Organic Agriculture: Statistics and

Emerging Trends 2008”. Food consumption patterns are changing as a result of health and

environmental issues. Interest in organically produced food is increasing throughout the world.

Global demand for organic products remains robust, with sales increasing by over five billion US

dollars a year. The study concludes that the food consumption has providing more healthy and

cure some diseases with organic foods.

Annunziata & Pascale (2009)52 in their study about “Consumers' behaviors and attitudes

toward healthy food products: The case of Organic and Functional foods”, Healthier food

products have entered the global markets with force in the past years and rapidly gained

market share. Consequently, the food industry has reacted to this trend by developing a growing

variety of new products with health-related claims and images, including organic and

functional foods that are selected by consumers for their health promoting properties. The
research proposes a survey of 300 Italian consumers in order to understand attitudes towards

healthy foods, with particular reference to organic and functional products, through the

implementation of a cluster analysis. The main aim of this paper is to derive suggestions that may

contribute to better strategic and tactical marketing decisions. The findings of this study are also

important for government bodies interested in scheming public health programs.

Suddin Lada et al. (2009),53 in their study showed that the TRA is a valid model that can be

used to predict intention to choose halal products. It was also shown that attitude and

subjective norm are good predictors of intention, with subjective norm being the more influential.

Jan Bolten et. al. (2010)54 have studied on “Perspectives of Small Retailers in the

Organic Market: Customer Satisfaction and Customer Enthusiasm” In this paper we discuss the

impact of customer satisfaction and enthusiasm on the performance of small retailers in the

organic food market. The data was collected from 948 customer interviews and an analysis of

management ratios of 12 organic food shops in Germany. The results show that customer

satisfaction is a relevant key to sales performance. Consumers consider the freshness of fruit

and vegetables as representative for the quality of the whole assortment. The paper ends with

managerial and scientific implications. The survey reveals the outstanding importance of

customer enthusiasm which is closely connected to word of mouth communication and shopping

frequency.

Seyed et.al. (2010)55 had conducted a study in “Survey Consumer Attitude toward

Barriers of Organic Products (OP) in Iran: A Case Study in Gorgan City”. The intention of

population in this research includes all citizen of Gorgan city of Golestan province of Iran. 150

people were selected by simple random sampling method by using Cochran's table and tools for

collecting data. Reliability of questionnaire with Cronbach’s alpha estimated more than 0.7.
Data analyzed with SPSS and Principal component analysis was used as main

statistical technique to analyze the data. According to result of factor analysis, test barriers of OP

consumption categorized in four factors as: Institutional barriers 15.75 percent, Feed quality

barriers 15.54 percent, Cultural barriers 14.37 percent and Economical barriers 9.43 percent.

These factors explained about 55 percent of the total variance of the research variables. To

concluded, OP consumption faces economical barriers. According to this factor consumer

disputed that organic products prices are more than non-organic products.

Kazmi (2010)56 had studied about “Consumers Expectations and Satisfaction towards

purchase of Organic Products”. It had indicated that there are several determinants that seem to

influence satisfaction/dissatisfaction and include demographic variables, personality variables

and consumer expectations, etc. Performance expectations and Actual performance are the major

factors considered in the evaluation process of satisfaction or dissatisfaction. Consumers buy

products not only for what they can do but also for what they mean. For most products, there are

two dimensions to performance: Instrumental performance: relates to the physical functioning or

proper operation of the product, Symbolic performance relates to aesthetic or image

enhancement.

Ramanuj Majumdar (2010)57 had studied about, “Consumers Attitude and Feelings

towards Shopping of Products”. Attitudes of a consumer are formed based on how a product

makes them feel. The attitudes that a person forms depend on the mood at the time of formation

of these attitudes; hence marketers try to woo a consumer in different ways based on

advertising experience, shopping experience, consumption experience The feelings experienced

during the consumption of a product influence the consumer‘s post-consumption evaluations.

Consumers are more satisfied if consumption leads to positive feelings.

 Mohd Rizaimy Shaharudin et al. (2010) 58 concluded that perceived value has significantly

influenced the purchase intention of organic food products. The previous research findings have shown

that perceived value is an important factor and become the deciding factor to purchase organic food

products.

Vlahovic et al. (2011)59 in a study “Consumer Attitude to Organic Food Consumption in

SERBIA”, analyzed the consumer attitude towards organic food consumption. The prime

objective of that study was to identify the determinant factors that influence the demand and

consumption of organic products and to examine consumers’ preferences, motives that resulted

in purchasing organic food products in Serbia. The findings showed that most of the consumers

were not adequately informed about the importance of organic food consumption; high price was

found to be a limiting factor and fruits and vegetables were the mostly preferred and purchased

organic products.

Willer & Kilcher (2011)60 have studied on “The World of Organic Agriculture. Statistics

and Emerging Trends 2011”. It shows Comparison Between the Ordinary and Organic Food

Market. The organic food market has grown continuously over the past decade, but, the total

share of organic food is still small compared with the total food market. Even in countries with

matured organic sectors such as Switzerland, Austria and Denmark, organic food consumption is

barely more than 5 per cent of total food consumption.

Jan P. Voona et al. (2011)61 in their study validated a model that predicts the willingness

to pay and actual purchase of organic food products among Malaysian consumers. Consistent

with the Theory of Planned Behaviour, attitude and subjective norms were found to

apply significant positive effect on willingness to pay, which positively influence actual

purchase. The significant impact of subjective norms on willingness to pay reflects the high

influence distance culture that characterizes Malaysians. Consumers are therefore likely to be
influenced by the opinions of others, particularly those whom they have hold high regard

for. Furthermore, as Malaysia is a highly socialist society, consumers are inclined to

conform to the consumption choices of significant others. This implies that those for whom

consumers have high regard are able to influence the consumers both actively through

their advice or opinions, as well as passively, through their own behaviours.

Sylwia Zakowska-Biemans (2011)62 show that the organic product availability in shops

located in the vicinity to the house could be a very important motivational factor to

stimulate consumption of organic food.

Parichard & Wen-Chi Huang (2012)63 had studied on “Consumers’ Perceptions and

Attitudes of Organic Food Products in Northern Thailand”, the adoption of organic production

and processing is highly determined by market demand. This research draws on a survey of 390

respondents. Results indicated that the main reasons for purchasing organic food products are

an anticipation of a healthier and environmentally friendly means of production. Organic buyers

be likely to be older and higher educated than those who do not buy them. In addition,

consumers’ trust in the authenticity of the goods and price are also issues. However, the main

barrier to increase the market share of organic food products is consumer information.

Ales Kuhar, Anamarija Slabe and Luka Juvancic (2012) 64 infer that the most

significant impact on purchase frequency is the availability of organic products and integrated

fruit and vegetables in the shop. As it can be observed on the Slovenian market, the

emerging trends of direct purchase (e.g. farmers’ market, on farm buying, box schemes) and

attempts of the retail chains to explicitly communicate their local fruit and vegetables sourcing

(ethnocentrism, and/or low food miles) confirm this conclusion.

 Cottigham (2012)65 had studied on “Organic Market Report 2012”, though the greater

numbers of organic food are purchased in the supermarkets, last two years saw a rise in direct

selling of organic food. It is higher than the average growth; 16.2 per cent compared to 10 per

cent on average. Although the growth has been smaller over the last two years, retailers still

make up for 80 per cent of the organic food sales and remain the most crucial source of organic-

food for consumers. Stores in the developed countries market and stock varied a range of

organic-food, whereas this trend is not as strong in other parts of the world.

Farah Ayuni Shafie and Denise Rennie (2012), 66 record that the interest towards

organic food has provoked many studies comparing aspects of organic against conventional food

as health, safety and environmental concern along with other attributes like nutrition value,

taste, fresh and outward show. Consumer attitude towards organic food products are very

much subjective. Moreover, better quality of organic food at considerable price may attract

more buyers.

Radhika et. al. (2012)67 has studied on “Eating Healthy-Consumer Perception of Organic

Foods in Twin Cities”. There is a rising demand for organic foods in domestic as well as

international markets. India produces a range of processed and unprocessed organic foods. The

200 respondents were selected randomly from two major organic food outlets in Hyderbad and

Secunderabad. The finding of the study also revealed that though the consumers are satisfied

with the taste of organic foods and to an extent about the premium prices, right information on

the pack and absence of convenient supply points have to be addressed to increase the demand

for organic foods. The outlets that are selling these products are very few and the quantities

they store especially of perishable food items are low. The study concluded that creation of

new channels of supply chain to acquire and market organic foods and educating the

customers must be the priority of policy makers.

Shih-Jui Tung et al. (2012)68 study argues that the majority of them do not necessarily
want to pay a premium or pursue organic food, mainly due to lack of trust in the

truthfulness of the organic label. Trust in both organic agricultural practices and trust in

product labelling is essentially the key factor in determining consumers buying behaviour. Lack

of trust is responsible for the inconsistency between respondents’ attitudes and behaviours

toward organic food.s

Giovanni Pino et al.69 The results for occasional buyers show that food safety concerns

significantly affect their attitudes toward organic food, and through the mediating

effects of this variable, subsequent purchase intention.

Brijesh & Ashish (2013)70 had examined about “Factors Affecting Customer Satisfaction

in Organized Retail Stores: a Study of Surat City”. This study focuses only in- store retailers

who operate in fixed point-of sale locations. Totally 315 respondents have been taken to the

study by applying non-probable convenience sampling method. Finding also suggests that

‘Shopping Convenience’ has the strongest impact on satisfaction, whereas ‘Physical Features’

has no influence on satisfaction. From the result, it has been concluded

that customers’ of Surat city are satisfied with the organized retail stores. Yet there remains a lot

to done by the management of the stores to maximize the customers’ satisfaction and improve the

customer retention rates. In order to improve customer satisfaction, retail manager have to

recover the weakest factors.

Vega Zamora Manuela et al. (2013),71 concluded that the word ‘organic’ plays a vital role as

organic foods are purchased by the consumers who give importance to health concern, food

quality, safety and genuineness in food. Thus, the preservation of the environment is not

a final motivation, but mediator. There is a relationship between organic food and

environmental preservation. The consumers have reinterpreted the meaning of 'organic' to

suit their consumption behaviour. The use of the word 'organic' induces about a product that

certainly increases its value to consumers. Organic means better, not because the manufacturer

communicates it, but because the consumer thinks it.

Sinne Smed et al. (2013)72 found that an explanation could be that these attributes to a large

extent are guaranteed by the organic label. Hence if consumers have trust in the organic

label, they expect to get products that are more environmentally and animal friendly and

contains no GMOs and no pesticide residues compared to the conventional product. On

the other hand the label does not guaranty that the organic product is healthier or is a product

with no artificial additives and preservatives. Concerning trust it is important that the consumers

view the label as a guarantee of the compliance with the organic production rules and that the

consumer trusts the organic producers.

Chiew Shi Wee et.al. (2014)73 have investigated about “Consumers Perception, Purchase

Intention and Actual Purchase Behavior of Organic Food Products”. The green concept and the

emergent of organic food are still in the infant stage in Malaysia. Therefore, there is a need to

expand knowledge about the consumer’s behavior towards organic food products. Data was

collected from 288 respondents in supermarkets and surrounding areas in the district of Kluang,

Johor, Malaysia using convenient sampling method. Significant means variation were observed

in the purchase intention of organic food products according to the respondents’ gender, age,

income level, education level and residence area. The findings proposed valuable information to

organic marketers to help them extend effective marketing strategies to convince organic-

concerned segment to purchase the organic food products and to enhance the pro-

environmental purchasing behavior in Malaysia.

Cottingham (2014)74 had investigated on, “Organic Market Report 2014”. The researcher

believes that according to the market research conducted recently by the Soil Association, there
 has been a decrease in the sales of organic food products in the world over the past year, although

the trend that is observed worldwide shows increasing demand for organic food products. In

2014, there was decrease in sales for organic products in Bangladesh. This has led the

researchers of this paper to investigate into the factors that play a crucial role in a consumer’s

decision to buy organic food products.

Oliver Meixner et al. (2014)75 investigated the market for organic food in Saint Petersburg, and he founds

that, although about half of the respondents knew at least something about organic production, he found that

there was a great lack of knowledge concerning organic certification and organic labels. In general,

consumers were not familiar with organic labels and standards.

Pomsanam et al. (2014)76 conclude that consumers did not feel that their intention to purchase organic

food was affected by other people or social media; rather, it depended on each individual’s motivation.

Marija Ham et al. (2014)77 opine that young people may be under a stronger influence of their peers, and

therefore may modify their behaviour consequently. In addition, educational background might be linked to

personal attitudes, which ultimately can have a positive or negative impact on the predictive strength of

subjective norms. Additionally, attitudinal ambivalence may play a role in intention development or even

play a moderating role on attitude behaviour relationship. Moreover, cultural framework proved to be

important in the previous research on intentions. Individuals coming from the countries that are more

collectivistic seem to experience stronger pressure from significant others and are more willing to abide by

with their opinions. On the other hand, individuals born and raised in predominantly individualistic

countries may have stronger attitudes toward certain behaviours andmay pay less attention to

what other people think or do.

 Bharathi et.al (2014)78 have evaluated the “Buying Behaviour of Urban Residents

towards Organically Produced Food Products”, Consumer behavior refers to the actions of

consumers in the market place and the underlying motives for those actions. There has been a

growing awareness of the fragility of the environment. Organic foods are made according to

certain production standards. The Government of India has set up a National Institute of Organic

Farming, the formulate rules, regulations, and certification of organic farm products in

conformity with international standards. All this arguments leads the marketers to find answer, to

whether their socio economic studies helps the residents to buy organic food products and

whether the attitude about organic food product is positive and influences to buy organic food

products. The present study has been carried out during 2012 in Bangalore City, Karnataka with

the sample size of 200 household respondents who are familiar with Organic Food Products by

implementing multistage sampling technique. The marketers of organic foods need to be

inventive and dynamic in order to compete with the changing purchase performance in the

Organic food products market among urban residents. The significance of organic food products

was ignored for quite a long period. As results of environmental sustainability, importance is

moved towards Organic food products rather than commercial food products. The study brought

out the fact that the people were well aware of images and availability, but not loyal entirely too

organic food products.

Manoranjan et. al. (2014)79 have studied about “Consumer’s Perception towards Organic

Food Products”, Nowadays consumers’ are alert of the fact that the food we eat is adulterated and

contaminated, the reason behind this being the use of chemicals, etc. to ripen the fruits and retain

the freshness of vegetables. This can prove deadly to our health in the long run, rather than

benefiting us. Ever since the environmentalists raised their hesitation regarding harmful effect of

increasing use of chemicals in farming, the consumers are getting awareness and selective about

edible products. The data was collected from 100 respondents

from Odisha state. Awareness and knowledge has become a vital factor in changing the attitude

and behavior of consumers towards organic foods, which in turn forces the growth in the organic

food markets .The Government and NGO have to take crucial steps in generating awareness in

the minds of consumers on the qualities of using organic foods and lengthen required assistance

in cultivating high quantum of organic foods by the greater part of the farmers.

Maeve Henchion et al. (2014)80 found that, there is ample evidence that consumers

value health, taste, freshness and other quality attributes in connection with most food

purchases, whether organic or conventional foods are at issue.

Daniela SIMTION, 201481 observed that the price is a very important factor in taking the

purchase decision. Acceptance and rejection of organic food products depends on organic food

price. Organic products incur additional expenses generated by preservation expenses for

environment. The price will reflect the value of the benefits required by the consumer .

Helene Hill Fidelma Lynchehaun (2014) 82 found that the knowledge factors influence

buying behaviour of consumer because it was evident that most consumers do not understand the

meaning of organic. Consumers therefore have to be more educated about organic and its

benefits-both to health and to the environment, which may influence them to buy it in the future.

Chandrashekar (2014),83 shows in a study that the awareness about organic products may

affect attitudes towards the product, and ultimately, buying decisions of the consumers.

Hyun-Joo Lee and Zee-Sun Yun (2015) 84 is based on the empirical investigation of

grocery shoppers who buy organic food. This study found that the key antecedents of

consumers’ attitudes are perceptions of the nutritional content, ecological welfare, sensory

appeal and price attributes of organic food, and that these attitudes in turn influence their

behavioral intentions to purchase organic food.

Rushdi & Khadiza (2015)85 had explained about “Understanding the Consumer
Behaviour towards Organic Food: A Study of the Bangladesh Market”. In the recent years

consumers have grown concerned about the traditional agriculture industry. Growth in cases of

bird flu and mad-cow disease, and other factors such as heritably modified food drove a

significant change in the industry of agriculture. Random sampling method was used to select

120 respondents for the survey using questionnaire. Majority of the participants of the survey

questionnaire expresses that organic food is healthier than industrially manufactured food, they

are high in nutrition, and perceives the organic production methods with a positive approach. The

foremost problems recognized through the research are lack of awareness and sufficient

knowledge about organic food, lack of availability and limited range of products, high price and

high regard for certification labelling. The influences of these factors are significant to alter

consumer buying behavior and can occasionally also act as deciding factors for purchase

decisions.

Ramesh & Divya (2015)86 have examined in their study entitled “A study on consumers’

awareness attitude and satisfaction towards select organic food products with reference to

Coimbatore”. The adoption of organic production and processing is highly determined by market

demand. The data was collected from 120 respondents by using convenient sampling techniques.

Results indicated that the main causes for purchasing

organic food products is an expectation of a healthier and environmentally affable means of

production. Organic buyers tend to be older and higher educated than those who do not buy

them. In addition, consumers’ faith in the realism of the goods and price are also issues.

However, the main barrier to increase the market share of organic food products is consumer

information.

Mohamed Bilal Basha et.al. (2015)87 have examined about “Consumer Acceptance

towards Organic Food”. Consumer, nowadays are more concern about food safety. Recently,
there have been significant changes in the attitude of consumers towards food safety,

environmental concern and also organic food products. Organic agriculture not only preserves

the environment, but also has less harmful substances and improves health, bringing

significant benefits. The interest of consumers and public institutions in organically- produced

foods has increased globally. Consumer behavior involves the psychological processes, which

consumers go through in recognizing the needs, finding ways to solve these needs; collect and

interpret information; make plans and implement these plans, making purchase decisions and

post-purchase behavior. The emergence of organic shops in markets supports the same and

creates the awareness to stimulate the customer need, wants and demand.

Sathyendrakumar & Chandrashekar (2015)88 has stated in their study titled “A Study

on Consumers Behavior towards Organic Food Products in Mysore City”, Development of

efficient marketing system is the need of the hour for strengthening the organic production in

India. Simple Random sampling techniques were used to collect the data from 50 respondents

as of Retail outlets of Organic products, Organic Products Marketing Agencies, by

administering the structured questionnaires. The results concluded that most of the consumer

especially in urban people prefer organic food product. Marketing

of organic product is so poor in study area so the demand for organic product is increases but

supply is very low. The major reasons are organic producer are low, adequate market facility is

not there, few number of shops, lack of awareness, and so on. Therefore, the farmer as well as

government gives interest to organic farming easily enhancing good marketing system in

Karnataka.

Seethaletchumy Thambiah et al. (2015),89 found three factors of organic knowledge, awareness

and price significantly affecting the intention to consume organic food among the Generation Y

in Malaysia. Thus, the findings state that Malaysian Generation Y’s attitude and
consumption behaviour toward organic food is useful to the scholars in green purchasing area

and marketers of organic food. By understanding the reasons behind consumer organic food

behaviour, productive strategies can be established by marketers and policymakers to

respectively increase the involvement towards organic food and as well as society and

environmental benefit.

Aregash Hassen and Belay Tefera Kibret (2015) 90 found that there is a significant

relation between behaviour and behaviour with well being. This indicates that if an

individual is health conscious, the person will adopt positive health related behaviours, and

develop high sense of psychological well being.

Chih-Ching Teng and Yu-Mei Wang (2015) 91 found that, higher levels of knowledge

regarding organic foods cannot directly lead to more positive attitudes. Instead, the increase of

organic knowledge can effectively reduce consumer uncertainty and create trust in organic foods,

and then ultimately increases consumer attitudes of buying organic foods. The organic

knowledge of consumers is mainly determined by the level of understanding of science

and technology and the sources of the information by the public. If consumers’ perception is

good towards organic food production processes, they are more likely to generate confidence in

identifying organic foods, which leads to positive influences in their attitudes towards organic

foods.

Liz Yip and Meike Janssen (2015),92 asked for perception on four different food origins:

locally produced organic food, organic food from China, imported organic food, and locally

produced conventional food. Hong Kong consumers have a positive attitude towards organic

food. These three attributes (high food safety, high quality and freshness) turned out to

be the most important aspects for consumers when purchasing food in general.

Christiane Schroeter and Lisa A. House (2015) 93 study assessed food culture by examining

family food consumption and individual student behaviour. In anthropology, a field where
culture is the focus of the study, family behaviour is likened to an ideal set of goods. Aggregating

this ideal set across people allows patterns to emerge that would be considered culture, or

similarities among different groups of people. Additionally, family behaviour impacts food

choice, as well as food consumption behaviour.

Vishal Kumar Laheri and Purushottam Kumar Arya (2015) 94 stated that the price and

availability of the organic products are the prime barriers towards its purchase, and so the

marketers need to focus on such barriers for penetrating the market of organic products in India.

Narcis-Alexandru Bozga (2015)95 indicates that the price is one of the significant factors

that limits the purchase and consumption of organic products. He also he mentions that

price is a high percentage of consumers from all categories among the issues that prevent

or limits the acquisition of organic products. At the same time, we have identified some

categories of respondents that seem to consider the price of organic products to be more

acceptable. A large part of the young adults and of respondents with a high level of education

(university studies) considers the organic products` prices to be reasonable. For these categories

of respondents, the higher degree of information and their income level are, probably, a

positive influence on perception of organic products` prices.

Surendra Mahato and Rajan Prasad Kadel (2015) 96 indicate consumer knowledge has been

found to have significant impact on purchase intention of organic food products.

Hyun - Joo Lee (2016)97 found that the price consciousness may have a stronger

relationship to intentions to buy organic foods because price is a key factor that people

consider when they make a purchase decision.

Tefera Kibret (2016)98 found that there is a significant relation between behaviour

and behaviour with well being. This indicates that if an individual is health conscious, the

person will adopt positive health related behaviours, and develop high sense of psychological
well being.

Sree Rakshaa et al. (2016)99 studied that quality of organic products on food safety

indicates consumers concern regarding residues present in food resulting from chemical,

fertilizers and preservatives over genetically modified food are playing a large role in pushing

consumers towards organic. Safety is clearly a major factor in the purchasing of organic

food.

Kapuge (2016)100 indicates the organic food knowledge has positive impact on organic food.

SUMMARY

This second chapter contains existing earlier studies to the head that the organic farm

products and agriculture industry. This present study has been collected the previous studies

related to consumer perception and satisfaction of organic farm products and services across

India. Some other researcher’s studies related to the same topic and they have studied in various

places in India. The researcher has taken more analytical techniques from the previous studies.

This present study aims to primarily study the organic farm products and services in Tirupur

District. Thus, the present study had research gap by providing substantiate evidence to these

organic farming services in India. The research period of the study is between 30 years from the

year 1985 to 2015. This present study is based on the customer perception and satisfaction

towards various organic farm products services in Tirupur District.

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 QUESTIONNAIRE

I J. Aruna, Ph.D Scholar doing research on “A Study on Consumer Purchasing

behavior towards Organic Products with Reference to Chennai City”. I request you
to spare your valuable time to give feedback on the points raised by me in the
questionnaire. I assure you that your feedback will be kept confidential and would be
used only for research purpose.

Part-A
1. Name : __________________________(Optional)
2. Email ID :___________________________(Optional)

3. Age :a) Up to 20 years: b) 21- 35 years: c)36-45 years

d)46- 50 years e) > 50 years
4. Gender : a)Male b) Female c) Transgender
5. Marital Status : a)Married b) Unmarried c) Widower d) Divorcee
6. Educational Qualification: a) Illiterate b) SSLC c) HSC
d) Undergraduate e) Postgraduate
f) Others: _____
7. Occupation : a) Government sector b) Private sector
c) Self Employed d) Agriculture f) Housewife
g) Student f) Others

8. Monthly income : a) Up to Rs.10000/= b) Rs.10001/= to Rs.25000/=

c) Rs.25000/= to Rs.50000/= d) Above Rs.50000/=
9 Area of Residence : a) Urban b) Rural c) Semi urban

10. Type of family : a ) Nuclear b) Joint

11. Size of the family : a)1-3 b) 4-5 c) above 5

12. Your style of food habit : a) Vegetarian b) Non-Vegetarian

13. Are you aware of the availability of the organic products in the market?
a) Yes b) No
14. How you came to know about the availability of organic products in the market?
a) Through Friends b) Through Relatives c) Through Advertisement
d) Through my family doctor
15. Whether you and your family members are consuming organic products ?
a) Yes b) No
16. How long are you interested in consuming the organic products?
a) < 1 year b) 1-3 years c) 3-5 years d) > 5 years
17. Through which outlet you are purchasing the organic products?
a) Big mall b) Super market c) Departmental Stores
d) Organic outlet only e) others

18. Reason for purchasing the organic products to your family?

a) Maintain proper health b) Safety c) Quality d) value for the money paid
d) All
19. Your frequency of purchasing the organic products for your famil?
a) Daily b) Weekly c) Fortnightly d) Monthly e) rarely
20. Your Monthly expenses towards buying of organic products
a) Less than Rs.1000/= b) Rs.1001/= to Rs.2000/= c) Above Rs.2000/=
21. Please rank the following products you are giving priority in purchasing

Sl. No. Products Ranking

01. Vegetables
02. Fruits
03. Beverages
04. Greens
05. Pulses and Grains
06. Nuts and dry fruits
07. Dairy products
08. Meats and poultry
22.. Which of the following has inspired you in using the organic products?
a) Taste b) Freshness c) Availability d) Variety e) All
23. Whether you are facing any problem in consuming the organic products than the
conventional products?
a) No problem b) Limited products in the market c) Availability in the market
d) Duplicate product
24. How you trust the product intend to purchase is an organic one?
a) Scientific evidence b) Brand c) Government Authentication
d ) Celebrity Endorsement
 PART B

The factors and the variables given below are dealt with customer attitude towards the
organic products. It is hereby requested to rate the same with the scale as

(1-Strongly Disagree: 2- Disagree: 3- Neutral: 4- Agree: 5: Strongly Agree)

Sl. Factors
Strongly Strongly
Disagree Neutral Agree
No. Disagree Agree
(1) (2) (3) (4)
(5)

Customer Attitude
01. In my opinion, organic products are safety
and healthy to consume
02. I experienced delay in making decision
towards purchasing organic products due
to lack of information about the product.
03. There is no guarantee that the organic
products available in the market are
genuine
04. I am using organic product because my
friends and relatives are using it.
05. Preferring organic product is not for
maintaining status in the society and
towards health consciousness.
Product Quality
06. Organic products were superior in quality
than the conventional products
07. The attractive package and labeling of the
organic products instills confidence about
the quality.
08. The quality of the organic product
inducing me to buy at higher prices
09. Information related to the batch of
production, steps in handling the product,
price and composition are clearly
mentioned in the label of the organic
product.
Consumer Awareness
10. The performance of the organic product
created positive thoughts in my mind

11.. I am aware that all the organic products

were produced through natural manure
only and no composition of pesticides and
chemicals

12. Preferring organic food shows my personal

care about my healthy future

13. It is evident that organic food have high

nutritional value than conventional
products
14.. Consumption of organic product definitely
protects the environment as it is an eco-
friendly product.
Price
10 Organic products have costlier than
conventional one and this is not a barrier
for my purchase.
11. The over cost of organic product is due to
less supply against the demand in the
market.
12.. Organic products cost is high due to
natural process like no preservative,
pesticide, fertilizers and contamination
13. I am willing to pay more prices towards
organic products owing to its benefit.
14. Organic product quality is related with the
price
Promotion
15. I believe that it is only the advertisements
that are raising the awareness of organic
products among the consumers
16. Organic products are distinguished with
informative and attractive logo and
packaging.
17. Distribution channel of organic products is
not adequate towards the organic products
18. I am always inclining towards the price off
promotion for any product purchase
19. I am giving importance to the opinion of
my friends and relatives in connection with
the organic products
 Behavioral Control
20. I can able to realize whether the product is
an organic or non –organic one
21. Whenever I need to consume the organic
product, I will purchase and consume it.
22. I have enough time and desire to consume
organic foods
24. The standards and the safety parameters
make me interested in buying the organic
product.
Customer Satisfaction
25. I am satisfied with the availability of the
variety of the organic product
26. I am satisfied with the performance of my
organic product and the outlet
27. I prefer only organic products in future

28. I am contributing something to the

universe by consuming the organic product
29. I am really enjoying in using of the organic
products despite high cost and demand.
Customer Loyalty
30. I recommend the organic products to my
friends and other peer groups who seeks
my advice
31. I am interested in consuming more organic
product for betterment of health.
32. While think about purchasing, my first
choice is toward organic product
33. I will make the people to consumer the
organic food alone who are important for
me

You are requested to give suggestion to improve the performance of the organic product in the
market based on your experience:

Signature of the Respondent