Consumer Perception of Organic Labeled Products

Running Head: Consumer perception
Question:
Perception is an important part of consumer decision making process. Define perception.
How do you think consumer perceive products with “Organic” labels? Do you think it
increases or decreases the value of the product? Do you think it is an effective marketing
strategy to use organic labels? Provide two example of product using organic labeling for
products. Use three academic journals or sources to support your answer.
Perception:
Perception is organizing, identifying and interpreting our own sensory information to
symbolize a product or an environment. Perception is shaped by past experiences, visual
sensory and knowledge. People translate their sensory impression to a substantial opinion
about a product or a purchase choice. Perception of a consumer is a major influencing factor
of a product’s design and market segmentation. A consumer is influenced by his past
experiences, mindset, personal opinion, and with the right marketing techniques perception
can be manipulated. Perception is a mindset of an individual which is unique to himself or a
group of individuals and certainly not the same for every situation or product. However,
companies should consider this factor while marketing their products (Lueg, 2013).
Perception about Organic labeled Products
Based on previous studies, The revenue generated in the Organic product industry
especially Organic food is three times higher than local and conventional food industry.
Generally people perceive organic products as healthier and tastier alternatives. Organic
products are also perceived to be environmentally friendly and in the 21st century people tend
to adapt environmental awareness into their lifestyles and product selection. Organic label
marketing is the best example of spreading “Health halo effect” amongst the consumers.
However, consumers might believe organic products are manufactured and processed with

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extra care and effort; hence the premium price over conventional products. A consumer can
contrastingly perceive an organic labelled product the same as any product and consider the
premium cost a liability. Consumers with no awareness or knowledge may perceive the
organic label as a marketing stunt. As per USDA organization, National Organic product label
signifies that that food has been manufactured and processed with cultural, biological, and
mechanical eco friendly practices (Janssen & Hamm, 2011).
Value of an organic product
Several studies have been made to understand the advantages of an organic product
over traditional products. In the early years organic products rarely entered the mass market
and consumers hardly understood the products. Thanks to continuous consumer education
and the increase in the ratio of educated buyers in the market, organic labels have reached
new market peaks. Consumers have started to recognize the value a organic product brings to
the society and a consumer’s lifestyle. Products with organic labels are being valued more,
the organic industry is seeing a high rise in market share. There are several certifications
within the category of organic product labels, the companies providing such certifications are
considered trustworthy and genuine (Paul & Rana, 2012).
Effective marketing strategy
Manufacturers producing and selling organic products must consider consumer
education as a prime strategy. A traditional consumer needs to be educated about the
benefits of organic products in the simplest methods. Differentiating the organic label,
education campaigns, demonstrations and a efficiently developed CSR structure will form a
effective marketing strategy. The manufacturer’s corporate social responsibility structure can
play a key role in the marketing strategy. Manufacturers can also connect to the consumers
on a personal level humanizing their brands and appealing to the market with a story and a
background.