INDIRA GANDHI NATIONAL OPEN UNIVERSITY

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 PROJECT SYNOPSIS (MMPP-001)

FACTORS AFFECTING CONSUMER BEHAVIOUR ABOUT ORGANIC FOOD: A

STUDY WITH SPECIAL REFERENCE TO ORGANIC VEGETABLES
IN ERNAKULAM DISTRICT OF KERALA

SUBMITTED BY: BONNY BABY

EMAIL ADDRESS: bonnybaby.analyst@gmail.com

ENROLLMENT NO: 2107319234

PROGRAMME: MASTER OF BUSINESS ADMINISTRATION (MBA)

STUDY CENTRE: SACRED HEART COLLEGE (1402)

REGIONAL CENTRE: COCHIN

 BIO-DATA OF MBA PROJECT GUIDE

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 Introduction to the study

Organic farming was the predominant method of cultivation throughout the world until the 15th
century. Under the impact of organic cultivation, the Indus and Mesopotamian civilizations
flourished. Modern farming methods, which included the use of chemical fertilizers and
pesticides, became popular in Europe and a few developing countries from the 16th through the
19th centuries. Sir Albert Howard, a British botanist who worked in agricultural adviser in
Pusa, Bengal, who lived from 1905 to 1924, detailed indigenous Indian farming techniques in
his book "An Agricultural Testament" published in 1940, and regarded them to be far superior
to European agricultural technology. The introduction of chemicals as manure during the
industrial revolution in the 19th century, as well as the arrival of technology in the agricultural
field after the World War II (1939-1945) have drastically transformed farming operations all
around the world. Ammonium nitrate, which was once used in weapons, has evolved into
ammonium nitrate fertilizer, and organophosphate nerve gas has developed into highly effective
insecticides.

During the 1950s and 1960s, India was on the verge of becoming a food-insecure country
due to population growth and natural disasters. To address this issue, our government
implemented the ‘Green Revolution,' which substituted organic and natural fertilizers and
insecticides with chemical fertilizers and pesticides., In the 1960s, it was led by agricultural
scientist M.S. Swaminathan. These technological developments resulted in tremendous
economic growth, but they also had negative effects on human health, the environment, and
people's social dimensions. When the western world began its organic agricultural movement
in the 1960s, India embraced the road of the green revolution. It took more than a decade for
Indian farmers and consumers to recognize the negative consequences of non-organic farming
and gradually convert to organic farming.

These chemicals contaminated the drinking water supply, causing harm to humans and animals
alike, as well as the extinction of several species of flora and fauna. In early 1979, deformed
newborn calves were discovered, and by 1990, birth defects, mental retardation, cerebral palsy,
epilepsy, physical abnormalities, and hydrocephalus (water in the brain) had become well-
known among humans, particularly among newborns. Farmers are attempting to change their
conventional agricultural practices to organic farming as a solution for contamination, which
has a negative impact not only on the environment but also on human health. Organic
agricultural land expansion, however, was only 1.2 percent between 1999 and 2016, when
compared to total agricultural land growth.
 Rationale

Organic food is the form of cultivation which is free from the user of man-made pesticides and
insecticides, fertilizers and additives which has proven to be highly hazardous to the human
health. Organic food also makes sure that high cultivation standards are followed in terms of
soil, water, and air to ensure environments protection.

Organic food industry is exhibiting a very high growth in the Indian food industry. The main
reason behind this trend is the growing awareness among the people in the country towards
health as well as the increased attention towards the quality and safety of the food they consume.
The awareness is also driven by the various issues related to food safety which have occurred
in the different parts of the India during the past 5-7 years. Also, due to urbanization and
increased levels of income, people are willing to spend more time and money towards ensuring
that the food they consume is safe for themselves and for their family. The industry is also
getting tremendous support from the government with schemes like Mission for Integrated
Development of Horticulture (MIDH), National Food Security Mission (NFSM), National
Mission for Sustainable Agriculture (NMSA), Rashtriya Krishi Vikas Yojana (RKVY).

The organic food market is expected to show a CAGR of 25.25% during 2022-2027. In such a
scenario, it is critical to research, analyze and understand why organic food appeals to the
consumers and the verify the authenticity of the factors which are believed to affect the
perception of consumers towards organic food. This would also help industries in this sector to
plan their business and marketing strategies accordingly, so as to ensure the continued growth
trend of the industry is maintained in the same pace.
 Objectives of study
Problem Statement

Organic vegetables have been in the market for a long time and only a specific customer bought and
were loyal for particular reasons. This is a study to find out the factors that influence their preference
of organic vegetables among consumers in Ernakulam district.

Main objective of Study:

• To find out the factors that influence customer preference towards organic vegetables.

Sub-objectives:

• To study the significant impact of food safety factor on the customer preference
towardsorganic vegetables.

• To study the significant impact of price factor on the customer preference towards
organicvegetables.

• To study the significant impact of nutrition factor on customer preference towards

organicvegetables.

• To study the significant impact of sensory attributes factor on customer preference

towardsorganic vegetables.

• To study the significant impact of environmental friendliness factor on customer

preferencetowards organic vegetables.

Hypotheses:

• H1: Food Safety will have significant impact on consumer perception to prefer
organic vegetables.

• H2: Price will have significant impact on consumer perception to prefer organic vegetables.

• H3: Nutrition will have significant impact on consumer perception to prefer organic
vegetables.

• H4: Sensory attributes will have significant impact on consumer perception to

prefer organic vegetables.

• H5: Environmental friendliness will have significant impact on consumer

perception to prefer organic vegetables.
 Research methodology

Research design

In this study, it primarily utilized the descriptive research design where it accurately and
systematically describes a population, situation or phenomenon. It can answer what,
where, when and how questions, but not why questions. A descriptive research design can
use a wide variety of research methods to investigate one or more variables. The study
used here is Primary data. Primary data was obtained through structured questionnaire.
All questions in the study are measured by various items on five-point Likert type scale
i.e.,1- Strongly Agree 2- agree 3-Neutral 4-Disgree 5- Strongly Disagree.

Sampling design

The sampling technique used over here is convenience sample. A convenience sample is
a type of non-probability sampling method where the sample is taken from a group of
people easy to contact or to reach. This type of sampling is also known as grabbed
sampling or availability sampling. There are no other criteria to the sampling method
except that people be availableand willing to participate. The research was made by
survey in accordance with the convenience of the researcher. In this research the
convenience sampling will be used because this method is extremely speedy, easy, readily
available, and cost effective.

Statistical Tool Used for Data Analysis:

1. Pearsons Correlation coefficient will be used to measure the strength of the

association between the 2 variables. Correlation is a term that refers to the strength of a
relationship between 2 variables
2. The Multiple Regression test is to test the relationship between multiple independent
variables and one dependent or criterion variable.
Methods of Data Collection

Data collection methods used for the study is:

• Personal interviews: Personal interviews are one of the most used type of
interviews where questions are asked, and the response is collected directly from
the participants. In this project, a sample of respondents will be identified from
the Ernakulam district of Kerala to collect data regarding the various factors
affecting their perception towards organic vegetables.

Tools of Data Collection

The respondents will be presented with a series a statements about the below factors
which may affect their perception towards organic vegetables.

1. Socio - demographic Profile (SDP)

2. Food safety

3. Price

4. Sensory attributes

5. Nutrition

6. Environmental Friendliness

The responses will be collected based on the below 5-point Likert scale to record their
answers.
1 (“Strongly agree”)
2 (“Agree”)
3 (“Neutral”)
4 (“Disagree”)
5 (“Strongly disagree”)
Limitations:

• Time constraint being one of the major limitations, only a limited number of participants
could be included in the data collection, and it may not be possible to study the variables in depth
since it was a time bound study.
• The opinions of the respondents may be highly biased on the economic and social conditions
in Ernakulam district and the conclusions may not be considered as a universal proof.
 References

• A.Z.A Mukul1 , Sharmin Afrin2 , Mohammad Masudul Hassan3,’ Factors

Affecting Consumers’ Perceptions about Organic Food and Their Prevalence
in Bangladeshi Organic Preference’ Journal of Business and Management
Sciences, 2013, Vol. 1, No.5, 112-118’

• APEDA. (2018). Agricultural & Processed Food Products Export Development

Authority. Retrieved May 25, 2018, from Organic Products:
apeda.gov.in/apedawebsite/organic/Organic_Products.htm

• Anupam Singh, Priyanka Verma, (2016) ‘Factors influencing Indian consumers’

actual buying behaviour towards organic food’ product Journal of Cleaner
Production (2017), doi: 10.1016

• Barrena, R. (2010). Frequency of consumption and changing determinants of

purchase decision: from attributes to values in the organic food market.
Spanish Journal ofAgricultural Research, 8 (2), 251-272.

• Benbrook, C., Zhao, X., Yáñez, J., Davies, N., & Andrews, P. (2008). New
Evidence Confirms the Nutritional Superiority of Plant-Based Organic Foods.
Arizona: The Organic Center.