REVIEW OF LITERATURE

A literature review is a comprehensive compilation of the information obtained

from published and unpublished source of data in the specific area of interest to the
researcher. This includes journals, newspapers, magazines, reports, government
publications and computerized databases. Organic food products related study was under
taken by many researchers in the world but for only few decades. Particularly in
Tamilnadu the organic food products research articles are in limited numbers, so the
researcher has reviewed few articles related to FMCG which was used to analyse the
consumer’s attitudes, awareness, purchase intention, satisfaction and repurchase
intentions. For the present review, selected literature on organic food products and other
demographic characteristics, studies on awareness level, attitude, perception towards
price of the products, satisfaction and repurchase intentions.

Consumer Behavior
Magnusson et al (2001)1, in his study with respect to Swedish consumers, found that
maximum number of consumers has positive attitude towards organic food products but
the purchase level remains at low. Consumers opined that the main reason for buying
organic was the taste rather than health conscious. Consumers are satisfied with the
availability, taste, quality of the product. At the end consumers has said that premium
price is the only barrier for purchasing organic food products.

Tsakiridou et al (2008)2analysed the Greek consumer attitude and behaviour through a

research study and identified that consumers are well informed about environmental and
health issue. They expect more information about the nutritional value of food and food
products without chemical substances. Consumers recognized fruits and vegetables as the
main organic food. Highly educated and high income group of consumers are least bother
about the appearances of the organic food products. Among all attributes, quality of
organic food product were considered as vital one.

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Annunziata Azzurra, Pascale Paola’s (2009)3,research study revealed that Italian
consumers are well aware of organic and functional food products but still they give
preference for the taste and that acts as the primary factor in consumers’ food choice. At
the same time the consumers shows strong interest towards nutritional values present in
organic products. The study also reveals that the information available for consumers
about the Organic is not sufficient.

Dr. S. Mahalingam, P. Nandha Kumar (2012)4The authors have done the research
analysis on few FMCG product like toothpaste, toilet soap and shampoo and identified
that consumers give importance to the brand name while taking buying decision followed
by quality, price, availability etc., The study was concluded saying that the consumer also
expects the quality to be good at reasonable price.

Paul and JyotiRana (2012)5The research paper shows that the quantity level of organic
food purchased are more by the highly educated consumers and the consumers expressed
that the reason for buying the organic food product was the health content. The main
reason opined by the consumers for not buying the organic food product was that the
non-availability of the product in the nearby stores followed by price.

Alexia Hoppe, Luciana Marques Vieira, Marcia Dutra de Barcellos (2013)6,

conducted their research among the consumers of supermarket and farmers market at Port
Alegre and found that the respondents believes the organic products are more healthier
and environmental friendly although the price of the organic product are costlier than
conventional food product. The attitude of the consumers towards purchasing of organic
food products is primarily based on beliefs of the respondents.

Kumar NA and Joseph J (2014)7An analysis has been made by the authors regarding
the consumer behavior towards FMCG products among the Sub-urban and rural
consumers through the demographic profile, mass media, priority of spending by family
and sales promotion. In this study it is been proved that the consumers are influenced by

35 
 
the quality, brand name and benefits derived from the personal care products purchased
by them.

S. Thanigachalam, Dr. K. Vijayarani (2014)8 analysed in their study that the consumer
behavior towards select fast moving consumer goods are highly correlated with product,
price, place, brand knowledge, awareness, pre-purchase and post-purchase behavior. The
consumers have opined that product quality is one of the most important factor which
influence the purchase of FMCG product.

Pinki Rani (2014)9 in her descriptive study analysed the factors influencing Consumer
Behavior and the types of Consumer buying behavior.

RushdiAhmwed, Khadiza Rahman (2015)10 identified through primary research that

the regular buyer of organic food products have more knowledge about the organic food
products than non-regular buyers of organic food products. The study also states that the
Organic Food labelling are used by many producers who doesn’t follow the rules strictly
and the consumers also doubt about the certification body and the rules laid by them. The
consumers of Bangladesh are not satisfied with the range of products available in the
stores.

Ihsan Effendi, PahamGinting, ArlinNurbaity&KhariaAmaliaFachruddin (2015)11.

In an innovative study analysed the consumer behavior of organic food, the authors found
that attitude of consumers is well affected by their product knowledge, product attributes
and existing culture. In turn it is proved, attitude is responsible for purchase intention
along with price, buying behavior, product availability and subjective norms.

Dr. Parameshwarn and S. Ramakrishnan (2015)12, analysed the relationship between

customer satisfaction and the profit of organic food shop by using the regression analysis
as the statistical tools and proved that there is a relationship between customer

36 
 
satisfaction and profit of the organic food shop. This study also shows that customers’
satisfaction is not only enough to have customer loyalty.

Sathyendra Kumar AD and Dr. H. M. Chandrashekar (2015)13, conducted an

innovative study about the consumer behavior towards organic food product in Mysore
city and found that the demand for the organic food product is gradually increase but the
supply is not enough to meet the demand in the study area. The authors identified the
reasons for less supply of organic food products are organic producers and number of
shops are inadequate, lack of awareness etc,

Atteeq Rahman, Marin Aafzal, Nasir Mahmood, Danish Habib (2015)14, analysed
that environmental and appearance consciousness brings lot of variations in the attitude
of consumers than health consciousness. The authors also found that the attitude acts as
the important predictor in purchase intention of a consumer followed by subjective norm
and the last one with less important predictor is perceived behavioral control. The result
also shows that the past experience of the consumer has not have any significant impact
on purchase intention towards organic products.

Padmathy. (2016)15analysed the consumers buying behaviour towards organic food

products. Through the statistical tools like Regression analysis, ANOVA, it has been
proved that relationship exist between income of the respondents and cosumer behaviour
and significant relationship doesn’t exist between gender and buying behaviour, marital
status and buying behaviour. With all the results the author concluded that Consumers‘
buying behavior acts as a predictor and have a direct influence on the decision process
when purchasing of organic food products.

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Awareness
Samuel K. Ndungu (2006)16, opined that the awareness level about organic foods is very
low in the study area. The unaware people are belong to the lower income group and in
east Africa majority of the population are lower income group hence the percentage of
awareness remains at the very low level. As the awareness level stayed at lower level the
consumption also remained at the lower level and half of the sample have never
consumed nor had an idea of consuming it in future.

Govindasamy et al. (2006)17analysed the consumers perception towards willingness to

pay more for organic produce and consumer awareness on organic food products. The
study shows that consumers are well aware of the organic food products. And they very
much aware of the presents of chemical in conventional food so that becomes the
encourage point to pay for organic produce where the chemical is absent especially the
subject matter of the study watermelon and lettuce.

Goyal (2007)18 has identified Domestic sales and consumption of organic products is low
largely due to the lack of a separate market for organic products in most commodities.
This does not allow the farmer to charge the premium prices that he would get from
exporting the produce. This does not offer any incentive for the production and sale of
organic produce. Lack of awareness among consumers is also a hindrance in sale of
organic produce. The lack of proper supply chain facilities means that the possibility of
value addition is low. Warehousing and product handling needs to be done by skilled
people and the transaction time need to be reduced to suite consumer requirements of
freshness and availability. Since the premium charged is large, packaging and display
also has a major role in the sale of the produce. This requires professional planning and
coordination and a market oriented production process. A commonly emerging channel
for the distribution of organic food in and near the metro cities is through a co-operative
or an NGO. This enhances the trust factor while increasing traceability. The more
commercially oriented and the large scale producers try to shorten the supply chain and
often sell directly to retailers. Similarly, some retailers are also tying up with producers

38 
 
for their own brand /range of organic products. These result in lower transaction costs
and less wastage. This produce is often not certified or graded reducing the possibility of
high value realisation for the goods.

MusdianaMohamad (2010)19, conducted the study among the lecturer from one of the
university in Malaysia and found that the respondents are aware of the environmental
issues and they are concerned about the ecological problems. The study identified that
even though the lecturer are concerned about the environmental factors the current reason
for purchasing the organic food products is the health consciousness. By using the
correlation analysis the author identified that health conscious are in moderately
relationship with purchase intention than environmental concern and had used regression
analysis to prove that both health conscious and environmental concern plays a role in
purchase intention towards organic food product.

Mohammad Altarawneh (2013)20, The results of the Logistics analysis study conducted
by the authors in Amman city in Jordan, indicates that the potential Jordanian consumers'
awareness of organic food is deeply and significantly affected by factors like education,
occupation, marital status, income, desire, promotion, quality, health issues, and product
source. The awareness is not affected by factors like gender, age and Trademark

*
Ibitoye, O. O., Nawi, N. M., Kamarulzaman, N. H. and Man, N (2014)21, conducted a
study on Consumers. Awareness towards organic rice available in the Malaysian market.
Half of the respondents are aware of the organic rice. The authors framed the Hypothesis
to know the relationship between consumers’ awareness towards organic rice and their
demographic characteristics. With the help of statistical tools they found that the
respondents who are aware of the organic rice consist more of females, Chinese when
compare to other races in Malaysia, respondents with University education, High income
group.

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Dr. B. Nagaraju and Thejaswini H. D (2014)23, conducted the study to find out the
awareness level of the consumers towards eco-friendly products, perception and their
willingness to pay more for those product. It is been found from the detailed analysis that
most of the respondents are aware of the eco-friendly products and they are also satisfied
with the products and the study finalizes that the respondents are ready to pay more for
the Eco-friendly products.

Mohamed Bilal Basha (2015)24 states that there is an increase of consumers’

awareness level about the harmful substance like chemicals present in food products.
His study put forth the factors that induces the consumers to buy organic food
products. Among the various factors such as health consciousness, environmental
concern, lifestyle of the consumers, organic food product’s quality and subjective
norms (external factors), the result of the study revealed that health consciousness,
environmental concern, organic food product’s quality and life style acts as the
motivating factor for purchasing organic food products.

Kapuge (2016)25 insist through his study that organic farming is what their traditional
method of agriculture in Srilanka. The research findings shows that awareness and
health consciousness of the respondents has direct positive impact on the purchase
intention of organic food products. At the same time environmental concern and
reference group are not significant towards purchase intention towards organic food
products. Author suggested the policy makers to pay special attention in improving
the awareness level and promoting about its health benefits which encourages the
consumers to buy organic food products.

Factors affecting
Squires (2001)26 has identified that concern for health, environmental protection, concern
for the chemical residues in conventional food products, pesticides, nutritional concerns,
as well as improved taste and flavour in organic products are the major factors

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influencing organic foods. A recurring concern in studies has been that consumers are
unable to assess the organic quality of food simply by looking at it. Consequently,
organic quality must be assured by the application of credible industry standards,
including strict organic labelling. From the consumers point of view, such certification is
crucially important to their perception, not only of quality but also of the safety of
organic foods. It is also essential if consumers are to develop trust in the quality of
unseen or extrinsic credence characteristics.

Magkos, Arvaniti and Zampelas (2006)27 are of the view that Organic fruits and
vegetables can be expected to contain fewer agrochemical residues than conventionally
grown alternatives; but the significance of this difference is questionable, as the actual
levels of contamination in both types of food are generally well below acceptable limits.
They also mention that though some leafy, root, and tuber organic vegetables appear to
have lower nitrate content compared with conventional ones, whether or not dietary
nitrate indeed constitutes a threat to human health is a matter of debate. They conclude
saying that other factors rather than safety aspects seem to speak in favour of organic
food. This is a common statement form studies on organic food and therefore leaves the
consumer confused as to the real conclusion. Further research in the area is extremely
necessary to get an opinion.

Gifford (2006)28 found organic food buyers tend to be younger than non-buyers. Gifford
have classified the organic food consumers as ―classic or ―emergent consumers. The
former being well-educated, professional or white collar worker, willing to pay a
premium for organics and to search out sources of organic food products (e.g. producer or
farm markets). The latter is also well educated, a professional but committed to personal
health, and shopping in supermarkets as convenience is an important factor in his/her
purchasing decision.

Essoussi (2008)29had investigated how consumers perceive the organic concept, the
issues related to the demand of organic produce, consumers’ attitudes, and the factors that

41 
 
facilitate or hinder the acceptance of these products. They reveal that purchase motives
are attributed to environmental and health consciousness, safety and quality concerns and
exploratory food buying behaviour, as well as to specific product attributes such as
nutritional value, taste, freshness and price. Some studies also reveal a variety of other
purchase motives that seem to reflect national interests, such as ―support to organic
farmers for German consumers or ―animal welfare for British consumers.

SomnathChakrabarti (2010) 30 analysed the experts opinion about the organic

utility, its reputation and certification process related information. The study
concentrates on the issues faced by the consumers in buying organic food product
in India. The author identified consumer innovativeness. Word of mouth,
commitment about the store are expected to be high in the consumers purchase
process.

G.Kannan, Dr. N. Chandrasekaran (2014)31, found through the research that

consumers of FMCG in urban areas give preference for brand while taking purchase
decisions. The researcher also identified that the advertisement as the motivational factor
for the consumers.

Dr. A.K. Singh, Imran Mehraj Dar (2014)32, in their research paper they found that
consumer’s preference for FMCG product is based on four A’s namely Awareness,
Affordability, Adoptability and Availability. The author concluded the study on the basis
of findings that there are different factors like price, size of the product, advertisement
etc., influence them to buy and the respondents are satisfied with the selected products of
HUL in the study area.

Attitude
Greek consumers (Fotopoulos and Krystallis 2002)33 seem to be informed about
environmental and health issues. They seek information about the nutritional value of

42 
 
food and demand more products free from chemical residues. Most Greek consumers
associate organic consumption mainly with fruit and vegetables.

Singh (2003)34 has identified that extrinsic quality attributes incorporate a wide range of
symbolic, imagined and other less tangible characteristics, many of which are focused on
the perception of organic quality as a symbol of sustainable agriculture and healthy
living. Such perception is interwoven with confidence in production processes (process-
related quality), and in the particular use of safe or natural raw materials (health-related
quality). These dimensions of quality are not readily experienced by the consumer and
are described as credence characteristics in literature. However, there is some indication
in existing literature that a positive attitude towards these qualities is also encouraged by
lack of faith in the conventional food sector rather than by pro-active support for organic
methods or low input farming.

A study in Australia by Lea and Worsley (2005)35 also found that most of the
respondents believed that organic food was healthier, tastier and better for the
environment than conventional food. Consumers prefer to take healthier food for better
life. It shows the consumers interest towards healthier life style. Organic food Consumer
prefers organic than conventional not only for health reasons even they started liking it
for taste too.

Chris Timmins (2010)36 conducted the survey among nearly1400 respondents which
includes buyer and non-buyer of organic food. Study attempted to analyse the
consumer attitude towards organic food products. Among the sample only 2% of the
consumer purchase all varieties of organic produce. At the same time no one was
buying organic ‘mostly or always’. The author suggested that proper marketing is
required to communicate about the organic and at the same time aiming for 100%
organic buying is unrealistic. And the non-buyers are also not showing much interest
in buying organic food products in future. Hence the marketers need to concentrate
more on buyer than on non-buyer of organic food products.

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Budi Suprapto (2012)37conducted the study among 250 mothers who have children in
Indonesia and found that healthy consumption lifestyle leads to the positive attitude
towards organic food products eventually influence the consumer to buy organic food
products. The author had used model like model compatibility testing and model
causality testing, to prove that healthy life style and attitude toward buying intention of
organic food is fit to empirical data.

Budi Suprapto, Tony Wijaya (2012)38. The authors have identified that the positive
attitude towards organic food and healthy consumption lifestyle. This means that better
the attitude towards organic food and higher the consumer’s tendency to man-nature
orientation will have higher buying intention of organic food products. The author has
concluded the study that when the buying intention towards organic food increases the
consumers’ care about environment will improve.

Shalini Srivastava (2013)39conducted the research on factors affecting buying behavior

of consumers in unauthorized colonies. The author identified the unauthorized colonies as
the regions where people belong to lower income group resides at large number. The
study shows that the lower income group of people believes on reliability and product
attributes. Many respondents of study area attached towards brand loyalty and youngsters
and households considers the promotions and offers provided for the selected FMCG.

Price, Availability and Other problems

Huang (1991)40 surveyed consumers to assess, in part, their preferences for organic
produce. He reported that 45% of respondents ranked pesticide use as their primary food
concern, and this was the main reason motivating consumers’ preference for organic over
conventional fresh produce

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Govindasamy et al. (1999)41 through his empirical study analysed the demographic
characteristics of the respondents and which one induce them to pay more for organic
produce. The findings showed that females, higher income group, young age group of
respondents and consumers usually purchaser of organic produce are more likely to pay
more for organic.

Pratap S. Birthal, P. K. Joshi and Ashok Gulati (2005)42 in their study ―Vertical
coordination in high-value food commodities: implications for smallholders find that the
rising per capita income, urbanization and globalization are changing the consumption
basket in developing countries towards high-value commodities (like fruits & vegetables,
milk, meat, poultry, fish, etc.). The study examines the institutional mechanisms adopted
by different firms to integrate small producers of milk, broilers and vegetables in supply
chain and their effects on producers‘transaction costs and farm profitability. It also finds
that the innovative institutional arrangements in the form of contract farming have
considerably reduced transaction costs and improved market efficiency to benefit the
smallholders. The study does not find any bias against smallholders in contract farming.
Also, the study does not find that the relevant firms have exploited their monopsonistic
position by paying lower prices to farmers. On the contrary, contract producers were
found enjoying benefits of assured procurement of their produce and higher prices. The
study lists policy hurdles in scaling up the innovative models of vertical coordination in
high-value food commodities.

Baourakis(2004)43states that consumers are not aware of the organic products and its
special features and how it is different from the normal conventional food products. The
other main problem from consumer’s point of view was that the organic food products
were not marketed properly and the supply, distribution and promotion are remains as
problem in purchase of organic products. Consumers consider label which doesn’t
contain proper information about organic to differentiate itself from conventional food.

45 
 
Most studies on consumer perception however find that the consumer believes that
organic is safer than conventional food. (Rimal and Balasubramanian 2005)44. Another
study on safety relating to organic food found three segments of consumers with different
risk perceptions. The segments were found to be financial risk orientated, physical risk
oriented, and performance risk oriented. Even the extent of risk perceived in different
product categories differed. In general, it has been found that use of nutritional label
affects purchasing behaviour mainly because consumers want to avoid the negative
nutrients in food products. The effects can be even greater if labelling is combined with
an information campaign to educate consumers. It appears that nutritional information
affects purchasing behaviour because it influences valuations and perceptions of the
product.

Samuel Bonti-Ankomah, Emmanuel K Yiridoe (2006)45 made an innovative study on

organic products and found that knowledge of consumers about organic are sufficient but
still the consumers are not interested to know about the organic farming practice and they
have a fear that there is a chance of mis-labelling as there is no standard rules or
certification procedure. The study also found that the single and most important factor for
the demand of organic product is the health and safety content. The researchers states that
the key economic issue that affect organic product purchase is that the price level and the
income elasticity of demand for organic foods are generally small.

Haghiri (2009)46 have segmented consumers of organic products could be segmented

into four groups, according to their purchasing behaviour. They are: Environmental
Militants – consumers who associate environmental and ethical values with organic
farming. They are usually middle aged, married with children and deeply concerned and
committed to a greater protection of the environment and a more sustainable usage of
natural resources. They are well informed of the positive environmental impact of
organic agricultural practises. That is why they are regarded as consumers by choice.
Price and quality are of no importance to them. Traditional- consumers are concerned
with flavour and authenticity. They are interested in products of traditional quality and

46 
 
bear in mind the concept of returning to old farming. Price is of no importance to them.
Dietary – consumers with careful nutritional values. What is of utmost importance to
them is their health. Moreover they are very influenced by medical research. They search
for therapeutic products with balanced trace elements rather than the true organic ones.
Dieters do not seem to be very well informed. Youthful - these consumers are young,
impulsive and interested in their health and physical condition (fitness). They are modern
consumers looking for flavour, quality and pleasure, concerned with dietary and
environmental safety (ecologists).

Adams. D. C. and Salois. M. J. (2010)47, analysed that the demand for local food has
increased for the past decade. Before 1990 the people of US doesn’t find any difference
between local food and organic food. During 2002 Organic Food Production Act was
passed which framed the standards for organic food products. The standards include four
tier labelling: 100% organic, Organic, made with organic ingredients and product
contains some organic ingredients. After the Act, the local food got separated from
organic food products.

Nargundkar (2010)48 in the study gives the initial requirements for a nutritional labelling
policy in India. The findings of the study state that food labels are read by the consumers
for brand comparisons and not for consulting nutritional information. Difficult
terminology, small font size and inability to understand nutritional labels are the major
problems encountered by the consumers. Television, friends and magazines are
commonly used by consumers for assessing nutritional information. Labels are
considered more consumer friendly when benchmarks regarding serving size are
provided. She also found that income levels, size of household, number of children and
age did not play a role in the usage of nutritional labels by the consumers. Consumers
with special dietary needs were found to use nutritional labels regularly. Studies have
found that health is strongly connected to the notion of organic food and that it is the
strongest purchasing motive when purchasing organic food. Organic food is also
perceived to have better taste than conventional food and it is also perceived to be more

47 
 
environmental-friendly. The fact that consumers perceive organic food as more
environmental-friendly can be connected to the value of universalism and it is said to be
the dominant value when consumers purchase organic food.

Somnath (2010)49 in their paper Purchase of Organic Food: Role of consumer

Innovativeness and Personal Influence Related Constructs, investigate purchase
behaviour in the light of such variables as consumer innovativeness, related perceived
risk and the personal influence, demographic factors and time of adoption. The study was
done through a survey of organic food buyers in the Delhi national capital region (NCR).
The study has considered Organic food in India as an innovative category as it is
purchased by a relatively small percentage of the potential market and is in the attention
spans of relevant target groups for a relatively small period of time. The main constructs
discussed in the study are: domain specific innovativeness (DSI), opinion leadership
(OL), opinion seeking (OS), relevant word of mouth (WOM). The study looks at the
importance of channels of communication between consumers suggest channels for the
marketing of organic produce. The findings suggest that the demand for organic food is
positively correlated with income and education. It also reveals that affluent households
and people with higher education are more likely to buy organic products and in larger
quantities and more willing to pay extra for organic food. Women were found to buy
organic food more often than men. The study also found that Consumer innovators
influence later buyers by serving as models to be imitated and as opinion leaders.

Mudaliar S.L., Vedhavalli (2012)50, in their research work they found that Consumers
of organic food products evaluate product quality with the price they pay, gender has a
positive impact on consumer perception towards organic food products but the
educational qualifications do not have a significant impact, There is significant impact of
psychographic factors on overall satisfaction of consumers towards organic food
products, the respondents have also felt that organic food products are healthy to
consume and consumers generally prefer to consume grain based organic food products.

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Cottingham (2012)51 has identified that the market aspect is most often a primary factor
for farmers. The report states that today's development professionals (government,
NGOs, international agencies) are often not adequately trained to help farmers develop a
strong market orientation and therefore it must be sought elsewhere. The most efficient
way to do this is by inviting the private sector to provide marketing services. However
some caution is warranted since at least some of a firm's goals, such as maximizing their
profits, may be in opposition to the best interest of farmers. The public sector, including
government and NGOs, can support farmer organizations at the outset and help ensure
equity in their partnership with private companies as well as foster adequate contract-
farming laws. Ultimately, a market-oriented value chain can be developed that takes full
advantage of each partner‘s strength in order to fortify competitiveness while also
ensuring a fair share for producers.

Budi Suharjo, MuchlisAhmady, and Mohammad Reza Ahmady (2013)52 conducted a

study on consumer attitude towards organic products in Indonesia and found that the
upper middle class people are familiar with the organic products and in that group only
few percentage of people are using regularly. The respondents who do not consume the
organic products has three reasons namely price which is comparatively expensive,
product availability where organic producers are limited in number and perception of
benefit in which respondents still have the doubt on the benefits.

S.Suganya, Dr. S. Aravinth (2014)53 analysed the preference of consumers towards

organic food products and found that the consumers buy the organic food product when it
is upto 20% costlier than non-organic food product but it has been observed by the
researcher that organic is 50% costlier than non-organic. The researcher in their study
states that only 16% of the population will buy the organic it is 50% costlier than non-
organic hence it has proved that the consumer’s preference changes when there is change
in price of the product.

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Brijesh Sivathanu (2015)54, analysed the various factors that influence the consumer
preference to buy the organic food product were the health and safety conscious and the
products are believed to be a eco-friendly and the trust of consumers on product
certification. The study also reveals that the high income group of people are more in
number among the consumers of organic food product, which shows that the prize also
acts as the preferential factor. And the last factor is the availability of organic products.

Uma (2016)55mentioned in her study that organic food has becamea emerging market
trend and India is the place for traditional farming which is termed as Organic food
produce also identified that consumers are well educated about the food products like
presences of nutritional values and health aspects. The author also suggested that the
marketers need to concentrate on the consumers expectation in organic food products.

Purchase Intention

Fishbein and Ajzen's (1975)56 modified theory of reasoned action model (TORA) to
study the impact of innovation on Indian consumers' purchase behaviour of new
processed foods. They studied if subjective norms will have a positive effect on Indian
consumers' attitudes about processed foods among two groups of consumers (a) those
with high innovativeness (b) and those with low innovativeness. The results indicated
that subjective norms were a key factor in understanding Indian consumers' new food
purchase decisions regardless of their level of innovation. Specifically, subjective norms
were found to have direct effect on attitudes, intention to buy, and purchase behaviour for
new processed food products. It was also found that attitudes have little effect on less
innovative consumers' intention to buy. Additionally, product familiarity had a significant
impact on Indian consumers' attitudes, subjective norms, intention to buy, and,
ultimately, purchase behaviour of the low innovator and high innovator groups.

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Morkenberg and Porter (2001)57 states that supporters of organic agriculture believes
on their personal experience with organic food than on scientific fact. Even though
consumer perceive organic food as a safer one that concern never remains as a root for
every purchase.

Lockie et al (2004)58 analysed the consumers buying intention towards organic food
products. The author found that consumers considers organic food products as a healthier
one than conventional food. Consumer believes that organic are rich in nutritional values
and it enhance the personal well-being. Researcher specifies that consumer consider the
organic food products as a safer, tastier and more enjoyable food.

Molyneaux (2007)59 analysed the consumers purchase intention towards organic on two
basis: 1.personal benefit or 2. Public benefit. Author identified that consumer buying
decision is based on the personal benefit than on public benefit. Personal benefit is their
own health consciousness and Public benefit comprises environmental concern and
protecting bio-diversity. This further supports the existence of relationship between
health and purchase of organic food products.

Nina Michaelidou (2008)60 attempted to find the role of health consciousness, food
safety concern in purchase intention of consumers towards organic produce. Author has
used structural equation modelling in testing his conceptual model. Study identified that
food safety plays vital role than health consciousness and other factors in predicting the
attitude of buying the product. Besides, ethical self -identity which means ecological
conscious consumers found to be predicting both attitude and purchase intention towards
organic food product.

The study by Gupta (2009)61 on the buying behaviour of consumers for food products in
an emerging economy was done to develop a marketing strategy for a modern
food/grocery supermarket based on consumer preferences and behaviour. They surveyed
a total of 101 households having sufficient purchasing power. The data collection was

51 
 
done with a structured questionnaire. These households were spread across the well-
developed Gomtinagar area of Lucknow city. They analysed the consumers‘ preferences
for food and grocery products and market attributes was carried out. The preferences of
the consumers clearly indicated their priority for cleanliness/ freshness of food products
followed by price, quality, variety, packaging, and non-seasonal availability. They found
that the consumers‘ preference of marketplace largely depended on the convenience of
purchasing at the marketplace along with the availability of additional services, attraction
for children, basic amenities and affordability. Results suggest that most of the food and
grocery items were purchased in loose form from the nearby outlets. Fruits and
vegetables were mostly purchased daily or twice a week due to their perishable nature,
whereas grocery items are less frequently purchased. This study analysed the buying
behaviour of the consumers under survey with respect to food and grocery items. These
consumers were in a relatively advantageous position in terms of purchasing power and
awareness of health and nutrition. The results helped us to understand the diversified set
of preferences for products and market attributes so that food processors and outlet
owners can make better decisions in the emerging organized food and grocery retail
environment. Especially as organized retail is still in its early stages in emerging markets.
The study was carried out with the help of State Agricultural Marketing Board,
Government of Uttar Pradesh who funded the project ―Feasibility study of Apna Bazaar
in Gomti Nagar, Lucknow.

Chiew Shi Wee (2014)62, identified that green concept and organic food products are still
in infant stage in Malaysia. The author suggested the marketers through his research that
the marketers has to concentrate more to increase the purchase intention of the consumers
which was also supported by Theory of Planned Behaviour. He has listed his findings
that female, urbanities, old age people, University degree holder in terms of education
back ground, wealthier in terms of Income shows more interest towards purchase more of
organic than conventional food.

52 
 
Mingyan yang (2014)63attempted to study the influential factors on consumer attitude to
buy organic food product. The result revealed that organic consumers’ attitude are
positively influenced through the belief that organic food product is good for health. His
statistical analysis states that age and income has positive impact on attitude and purchase
intention towards organic food, Income has positive impact only on purchase intention of
Chinese consumers. Besides, the environmental concern and subjective norms- referred
as external factors has not affected the attitude of consumers to purchase organic food
products.

Heru (2015)64 has used Theory of Planned Behaviour to study that the variables affecting
the consumer’s attitude to purchase organic food products leads to purchase intention.
Through various variables and employing Structural Equation Model, the author had
identified that health and environmental consciousness are the important element for an
individual to positively buy the organic food products. And Gender also makes
difference in purchase of organic food products. To conclude, author had suggested that
the marketers need to concentrate on exposing the organic food products as a healthy
food and it also be considered as an environmental friendly products and the market
segmentation should be based on the gender.

PittawatUeasangkomsate (2016)65 analysed consumers’ attitude towards organic

food products. It was revealed that health factor influence to buy the organic food
products the most, followed by local origin, environmental concern and food safety.
Through statistical tools (Pearson correlation) high positive correlation was identified
between local origin and purchase intention followed by animal welfare and
environmental concern then health and food safety.

Satisfaction and Repurchase Intentions

Diane (1992)66 analysed the relationship among satisfied consumers and his repurchase
intention, dissatisfied consumers and his repurchase intention. The satisfied and
dissatisfied consumers again classified under complainers and non-complainerswith

53 
 
complaint resolution. By using T test and ANOVA the author has proved that highly
satisfied consumers with complaint resolution had significantly higher repurchase
intention than the other combination and he has suggested that the marketing managers
need to concentrate more on complaint solving process.

Luigi Cembalo (2004)67 analysed a new form of consumptions and commercialization of

organic produce. Community supported agriculture (CSA) is an agreement between
group of consumers and group of farmers to farm organic produce and supply to that
particular consumers at fixed price. In this new form of commercialization i.e CSA, the
degree of satisfaction was analysed and the result showed that it is directly proportional
to the flexibility of variety of products available, product flavour and storability and
service rendered by the farm.

MohdRizaimy (2010)68 identified that Malaysian consumers give high importance on

their health than the food safety concern and religious factors in the intention to buy
organic food products. Author in his study has found that through mass media such as
national and NGO’s advertising campaign portrays that organic food products has more
nutritional value, superior in quality and more fresh than conventional food products,
especially organic fruits and vegetables and when these feature are communicated
effectively the consumers perception towards organic food products will become positive
and increase purchase intention, satisfaction and loyalty towards the product.

Tamilla et al (2011)69has used meta-analysis which means amalgamating the previous

statistical reports and findings for the current research. The overall reviews supported the
loyalty=>satisfaction=>repurchase intention are linking in the straight line. The author in
his study identified that some of the relationship among the three concept (consumer
satisfaction, loyalty, and repurchase) are not in straight forward and few others factors
like internal and external also contributes. But the overall picture shows that the review
and the current research says that three concepts has positive links.

54 
 
Fayyaz (2011)70 in his research on “Factors Affecting The Repurchase Online Shopping
Intention Of Thai Customers In Bangkok: A Case Study Of eBAY.com “ anysed the Thai
customers repurchase intention and found that the trust on eBay website influenced them.
He also identified that perceived usefulness, perceived interactivity and trust also affects
the repurchase intention. He has used the questionnaire method to conduct the survey and
Pearson’s correlation to test the hypotheses.

In-Keun Chung (2012)71 conducted a study on “A Study Of Influencing Factors For

Repurchase Intention In Internet Shopping Malls” in order to find out the effects of
variables on consumers overall satisfaction and repurchase intention of customer in
internet buying. The researcher has said that perceived consumer risk has negative effect
on consumer repurchase intentions and the other variables such as product perception,
customer service, site image etc., positively related with the repurchase intention.

Salman Habib (2014)72 conducted the study on brand loyalty and its influence towards
consumers repurchase intention towards coca-cola and found that there is a positive
relationship between customer satisfaction, brand image and brand loyalty with the help
of correlation. The author concluded that brand loyalty has significant relationship and
positive impacton consumers repurchase intention towards the product.

Shahiraet. al (2015)73 investigated the relationship among perceived quality and the
repurchase intention on the basis of green value, emotional value and environment
conscious and proved that green value has most effect on the repurchase intentions. He
also insisted that the marketers should concentrate on green marketing strategies which
includes behavioural element to improvise the consumers intention to repurchase the
green products.

Robert Julander et al (2003)74 thrown light on the switching barriers which he consider
as positive and negative on satisfaction and repurchase intention & attitudinal loyalty.
Attractiveness of other alternatives are the positive switching barriers and the high

55 
 
investments in the relationship by the customer as negative switching barriers. The
author has used the regression and structural equation model as the statistical tool with
LISREL 8.51 for testing the hypotheses and concluded that Negative switching barriers
have negative effects on customer satisfaction and attitudinal loyalty, but a positive effect
on repurchase intentions. Positive switching barriers impinge positively on customer
satisfaction, repurchase intentions and attitudinal loyalty.

Ramesh (2009)75 has identified that an increased attention toward Indian markets in
general and food markets specifically, multinational companies needed to accurately
identify the attitudinal and product attribute factors that impact new food product
adoption among Indian consumers. Applying integrated decision utility theories, they
examined the influence of product familiarity on value-based product purchase decisions
and intentions. The results indicate that expected value, perceived value, and purchase
intentions are influenced by familiarity; only expected value influences purchase
intentions. Marketing implications are also discussed.

56 
 
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