Consumer Behavior – Questions and Answers

This document discusses consumers' perceptions of organic food, the role of marketing in promoting organic food products, and analyzes Organic Valley's marketing campaign. It explores consumer preferences, demographic factors, and the potential for growth in the organic food market.

Consumer Behavior – Questions and
Answers
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Table of Contents
Question No. 1.............................................................................................................................................3
What do we know about consumers’ perceptions of organic food?...........................................................3
Answer:...................................................................................................................................................3
Question No. 2.............................................................................................................................................5
How can marketing help to communicate organic food products to consumers?......................................5
Answer:...................................................................................................................................................5
Question 3...................................................................................................................................................7
Analyze Organic Valley’s campaign with regards to how they address (or not) the identified consumer
perceptions in their video marketing campaign..........................................................................................7
Answer:...................................................................................................................................................7
Question no. 4.............................................................................................................................................8
What is your overall justified evaluation of their marketing approach? What do they do well and how
could they improve?....................................................................................................................................8
Answer:...................................................................................................................................................8
Appendices:...............................................................................................................................................10
Bibliography...............................................................................................................................................12
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Question No. 1
What do we know about consumers’ perceptions of organic food?
Answer:
Consciousness of food ingredients are gearing up in human society since last decade.
Health conscious people now prefer the food ingredients globally, which are grown
through organic practices. (Chandrashekar, 2014) The definition of ‘organic food’
depicts those foods, which are grown without using the inputs like artificial chemicals,
antibiotics, hormones or organisms modified genetically. When a food item is
earmarked organic, it must not contain the above additives or any type of artificial inputs
including artificial preservatives, colors, flavors, sweeteners and monosodium
glutamate. (Brown, 2016)
As per the research article, Consumer Perceptions towards Organic Food by F.A Shafie
and D. Rennie (2012), organic food is known as sustainable products with high-cost
impact for the consumers. Basic criterion of organic food is to prove it environment
friendly. Consumers gather information from the market about food ingredients and
decide to procure those as per the quality and price balance. Health consciousness is
another major factor for such procurement. Thus the priority is set by the consumers
depending upon personal preference, interest and respective importance of the product.
Demographic factors also dominantly derive to choose profile of consumer on organic
priority. Main objective of consumers is to eat healthy and stay fit. The role of education
also plays major role to decide of choosing organic food. It is found that consumers of
organic food are ready to pay extra money on an average by 10%- by women @ 9.5%
and by men @ 11.4%. This observation is more specific on behavior of regular
consumers, who are ready to pay around 15% higher. Regular consumers use to
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purchase at least twice weekly. They represent 12% of total consumers. 42%
consumers are occasional while 46% are non-consumers, out of which, 25% are willing
to procure organic foods.
Main factor deciding consumers of organic foods is demographic, like age, education
and income. The cost factor of organic food remains balancing criterion for
consumption. The reason behind non-justifying price of organic food is the quality as not
quantifiable. Hence more prudence should be introduced in the field of organic food
production with price to justify their viability to the society. To understand consumer
perception in organic food, the factors like motivation, beliefs, behavior and
demographic variables are considered as most determining factors to derive the
potential of the market to ensure regular growth with conversion of gradual conventional
market of food. (Shafie F, 2012)
The research article, Consumer perceptions and attitudes of Organic foods in Eastern
China by Biao Xie, et al (2015) had emphasized on the findings of the research subject.
It is observed that main factor to procure organic food ingredients by the consumers is
the guarantee of safe and healthy life for them. The samples selected for this research
normally using organic food ingredients are with higher level of education and enough
disposable income to spend for their families with children and aged persons. It is also
observed that the main barrier of restricting the market within limited volume is lack of
knowledge of the consumers, higher range of prices and non-availability of those
products, in general. To make this market more easily accessible to the consumers,
basic steps like awareness program of the organic food products, better availability of
the products and standardized price with declining attitude of the organic food
ingredients will do the boosting for organic food market. (Xie B, 2015)
Organic food products are getting more popular in spite of cost factor. The general level
of knowledge and awareness is increasing among the consumers. Environment friendly
foods are accepted to ensure future safety and health. It is the demand of the time to
make marketing a thrashing move to promote those products with clear and transparent
approach. Different studies debate for more thrust in marketing of organic foods with
brand communication. The consumers should understand why they pay the price and
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what they get in return. When the price for money is justified, the products will run
automatically leaving behind conventional foods in turnover. Hence marketing is to be
done in different ways; especially through social media and in-store exchanges of
knowledge to make the consumers’ perceptions is changed about the products and the
concept and are convinced for the good reasons to buy those products. Awareness is
the main and basic reason for its lagging behind, which is to be taken care in future.
Question No. 2
How can marketing help to communicate organic food products to consumers?
Answer:
To find out the ways marketing can help communicating the role of organic food
products to consumers, we have to first find out the global segmentation of organic
foods. Segmentation of global market for organic food and beverages is done on the
basis of packaging material, type, distribution network and region.
The packaging of organic food and beverages is basically divided into plastic, metal,
glass, paper and other materials.
Types of organic foods and beverages are classified as confectionery and bakery,
frozen desert and dairy; meat, beverages and seafood; sweet and salty snacks and
other products.
Distribution network for organic foods and beverages are segregated into store and
non-store based. Store-based distribution network prevails in supermarkets and hyper-
markets, specialty stores, convenience stores, etc.
Regional segmentation of organic foods and beverages are divided into four regions –
North America consisting of the US, Canada and Mexico; Asia-Pacific consisting of
Asian countries and Australia and New Zealand; Europe; and rest of the world
consisting of South America, Africa and Middle East. (MRFR, 2019)
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Enclosed Appendices to project different research reports related to Organic market
region-wise segmentation and prospective growth of organic foods market.
Appendix 1- Global Organic Food & Beverage Market Share (%), by Region, 2017
Appendix 2- Global Organic Food Market size- by region and value – 2012-2022-A
Projection
Appendix 3- Primary Survey Breakdown of organic foods – by region, by respondent
category and by stakeholders
Appendix 4- Global Organic Food and Beverages Market CAGR Analysis
In the research article, The role of Brand Communications in Consumer Purchases of
Organic Foods- a Research Framework (2014), Tatiana Anisimova and Parves Sultan
had emphasized on the roles of awareness with knowledge of special features of
organic foods and its quality, which differs from conventional food. This research
framework is done as per the literature review on the subject, which highlights the
confusion about quality of organic foods. This confusion is raised to find suitable answer
though which organic foods can be segregated from conventional food. There is ample
scope of confusion about the communication from the seller to project any food as
organic. It is not enough to declare any product as organic, as commoditization of those
products are evidently displayed in the shelves of the sellers. To differentiate the
products as organic, the products are to be marked with special signs to make them
special and easily traceable as organic foods. This situation tends towards dual
branding facilities for organic products to ensure upgrading the present level of
consumer awareness into expansion of consumer base and bigger volume of
purchases. The role of brand communication plays a vital role in this aspect to enhance
consumer awareness with transferring the same to higher turnover of organic foods.
This brand communication should encourage trust between the consumers and the
brand communicators so that products can be believed with its original value of organic
nature by the consumers. Thus brand loyalty would grow with proper awareness and
education by the knowledge transferred through brand communication and would be
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responsible for more purchase of organic products by the loyal range of customers of
organic food brands. (Anisimova T, 2014)
In her Blog, How to successfully market Organic and Natural Foods (2015), Michelle
had emphasized on the different issues to make the customers aware and conscious
about organic products. She had highlighted five actions to sell organic and natural
foods effectively and successfully. They are: a) merchandising strategy of organic
products; b) in-store communication and signage; c) availability of flyer or brochure for
the organic and natural products; d) staff training about the products; e) campaigning for
natural and organic products in website and social media. All these steps are meant for
upgrading the knowledge, education and awareness of the stakeholders like customers
and in-store staffs. (Michelle, 2015)
Question 3
Analyze Organic Valley’s campaign with regards to how they address (or not) the
identified consumer perceptions in their video marketing campaign.
Answer:
To understand the marketing approaches of organic food, main emphasis is to be given
on the issue which includes perception of the consumers and the role of marketing to
promote organic foods to the consumers. This discussion based upon the structure of
questions and answers will justify its claim depending upon the case study of marketing
approach by Organic Valley, US about their organic foods with the recommendations
about their marketing drive with specific field of probable development. (nielsen, 2017)
The company has launched a unique video series in YouTube named ‘Call us crazy, but
its working’. Through this video series, the company has introduced themselves as the
follower of organic culture in food industry of the US. The video series projects about
the history of the company along with the agricultural and dairy process and the
distribution network to reach the customers. This video series is also elementary to
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enhance the knowledge of company products to the customers. There are nine videos
to form this video series. If anyone goes through this video series, he can have clear
idea about the inception of the company with its progress as per the roadmap fixed by
the executives. There is enough provision for enhancement of knowledge and
awareness for the customers through this video. The marketing campaign of the
company is successfully done through this video series across the US by escalating the
awareness level and knowledge for the need of organic foods and locator of product
availability across the country. The history of 30 years is described through this video in
a very professional approach by highlighting the founder farmer and founder employee.
The video also shows concern about the conventional food farming and demerits of
those products.
The website of the company is another mode, through which the consumers can be
able to know about the vision, mission and objective of the company. This site is really
informative and helpful for the external stakeholders, who wish to gather knowledge
about this company along with their products and the point of availability of those
products.
Question no. 4
What is your overall justified evaluation of their marketing approach? What do they
do well and how could they improve?
Answer:
The overall observation of the marketing approach of Organic Valley proves it up-to-
date to reach their target audience. The target audiences are willing to know the
products of the company with the provision of source to get them. That information is
also provided in the video in audio-visual mode and by black and white messages in
website of the company.
The recommendations for the marketing campaign through YouTube video of Organic
Valley are:
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 Video should have data of consumers- period wise;
 Video should project high selling and popular organic products of the company
through a chart;
 Stores locator with video of stores to reckon easily by consumers;
 Special emphasis on upcoming products with organic value;
 Some video interviews of satisfied customers;
 Highlighting demerits of conventional farming;
The recommendations for website of Organic valley are:
 The company may organize annual event like essay writing by students of local
schools to enhance awareness and knowledge among the would-be citizen on
organic food concept through this web site. Best five writers can be awarded with
annual offer of products in discounted rate. Best five essays can be published in
the web site in one specific corner named as Gen- Y Thoughts.
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Appendices:
Global Organic Food & Beverage Market Share (%), by Region, 2017
Appendix 1-Source: Secondary Sources and MRFR Analysis (MRFR, 2019)
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Appendix 2- Global Organic Food Market size- by region and value – 2012-2022-A
Projection (techscireserach, 2017)
Appendix 3- Primary Survey Breakdown of organic foods – by region, by respondent
category and by stakeholders (techscireserach, 2017)
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Appendix 4- Global Organic Food and Beverages Market CAGR Analysis
(ZionMarketResearch, 2018)
Bibliography
Anisimova T, S. P. (2014). The Role of Brand Communications in Consumer Purchases of Organic Foods:
A Research Framework. Journal of Food Products Marketing , 20 (5).
Brown, M. (2016, May 14). What is Organic Food, and is it Better Than Non-Organic? (healthline)
Retrieved April 3, 2019, from healthline: https://www.healthline.com/nutrition/what-is-organic-
food#section1
Chandrashekar, D. .. (2014). Consumers Perception towards Organic Products - A Study in Mysore City.
International Journal of Research in Business Studies and Management , 1 (1), 52-67.
Michelle. (2015, April 28). How to Successfully Market Organic & Natural Foods. (AWG, Producer)
Retrieved April 3, 2019, from Sales services: https://awgsalesservices.com/2015/04/28/how-to-
successfully-market-organic-natural-foods/
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MRFR. (2019). Global Organic Food & Beverage Market Research Report: Information by Type (Bakery &
Confectionery, Dairy & Frozen Desserts, & Others) Packaging Material (Glass, Plastic, Metal, &
Paper) Distribution Channel (Store & Non-Store), & Region—Forecast till 202. US: Market
Research Future.
nielsen. (2017, April 9). Organic products are showing up in more places- and for less money. (Nielsen)
Retrieved April 3, 2019, from Nielsen.com:
https://www.nielsen.com/us/en/insights/news/2017/organic-products-are-showing-up-in-
more-places-and-for-less-money.html
Shafie F, R. D. (2012, December). Consumer Perceptions towards Organic Food . Procedia- Social and
Behavioral Sciences , 361,365.
techscireserach. (2017). Global Organic Food Market By Product Type (Organic Meat, Poultry and Dairy;
Organic Fruits and Vegetables; Organic Processed Food; etc.), By Region (Europe, North America,
Asia-Pacific, etc.), Competition Forecast and Opportunities, 2012 – 2022. Newman's Own Inc.
Xie B, W. L. (2015). Consumer perceptions and attitudes of organic food products in Eastern China. Britih
Food Journal , 117 (3), 1105-1121.
ZionMarketResearch. (2018). Organic Food and Beverages Market by Product Type {Organic Food
(Organic Fruits & Vegetables, Organic Meat, Fish & Poultry, Organic Dairy Products, Organic
Frozen & Processed Foods and Others) and Organic Beverages (Organic Non-Dairy Products,
Organic Cof. Zion Market Research.
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