Marketing Report: Analyzing Consumer Perception of Organic Labels

This marketing report delves into the crucial role of consumer perception in the context of organic labeling. It explores how consumers interpret and respond to organic labels, examining the psychological factors that influence purchasing decisions. The report highlights the significant growth in the organic food market and how organic labels have become powerful tools for influencing consumer choices. It discusses effective marketing strategies for leveraging organic labels, emphasizing segmentation and targeting. Furthermore, the report provides real-world examples of successful organic labeling by companies like OGX and Organix, showcasing how they use these labels to attract health-conscious consumers and gain a competitive edge. The report concludes by emphasizing the importance of consumer perception in the success of organic product marketing.

Running head: MARKETING.
Marketing
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Table of Contents
Overview of Perception in Consumer Decision Making...........................................................2
Effect of Organic Labels on Consumer Perception....................................................................2
Effective Marketing Strategy to Use Organic Labels................................................................3
Two Examples of Effective Use of Organic Labelling of Products...........................................3
Conclusion..................................................................................................................................4
References..................................................................................................................................5

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Overview of Perception in Consumer Decision Making
Perception is one of the marketing concepts which encompasses the impression,
awareness as well as consciousness about the company as well as the offerings. As
commented by Zhang and Boldt (2017), the perception is one of the essential psychological
factors in the purchase decision process which is known to influence the behavior of the
customers. Moreover, Dendler and Dewick (2016), have opined that the customer perception
refers to the process through which the customer selects, organizes as well as interprets the
information as to create a meaningful picture of the respective brand or the product. It is the
three-stage process which helps in translating the raw stimuli into useful information.
Figure 1: Process of Consumer Perception
(Source: Zhang and Boldt 2017)
For instance- When a customer selects a particular brand, it is required to be
analyzed whether the customer can link and connect with the promotions and advertisements
based on the product. It is the image of the particular brand in the minds of the customers.
Effect of Organic Labels on Consumer Perception
In the present scenario, it has been seen that organic food sales are growing at a considerable
rate which is significantly higher than that of the conventional food items. In the different
countries, it has been noticed that the customers prefer to buy the organic food items as it is
healthier, tastes better, has low calories and it is better for the environment and is more

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humane. Due to the respective positive perceptions of the customers on the organic food
items, the organic food labels have become one of the most powerful tools. Moreover, paying
attention to the organic labels of the food items depends on the degree of the self-knowledge
which is possessed by the customers towards organic food products while shopping in the
market (Zhang and Boldt 2017). Due to the same, it increases the value of the products, and it
helps in improving the perception of the customers.
The primary objective of the organic food labels is to produce healthy food as well as
other products without any usage of the synthetic chemical products to understand the
different concerns of the customers such as food safety, the health of the human beings as
well as the welfare of the environment as well. Additionally, when the product is labelled as
the organic product, it supports in automatically value raising which is the vital concepts in
influencing the perceptions of the customers (Thøgersen, Pedersen and Aschemann-Witzel
2019).
Effective Marketing Strategy to Use Organic Labels
The organic label of the product is one of the most effective marketing strategies, and it
creates a positive impact on the choices of the customers. The labelling of the organic
products assists the product to separate themselves from the other products which are not
organic as it will help attract more customers as they are health conscious in the present
scenario and gain the competitive advantage in the competitive market (Perera, Johnson and
Hewege 2018). However, the organic products are costly, and the segmentation is one of the
main criteria which should be kept in view to improve the overall segmentation and targeting
the customers who can afford such products.

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Two Examples of Effective Use of Organic Labelling of Products
OGX is one of the best examples of selling the organic labelling of the products
wherein the different body and hair collection products are featuring with exotic ingredients
such as organ oil, coconut oil along with eucalyptus which is all natural. OGX cosmetics
company tries to offer the different kinds of environment-friendly products which will satisfy
the needs of the niche group of customers who can afford such luxurious products
(OGXbeauty.com 2019). The official website of the company is the other major prospect
which is being used by OGX as to inform the different customers relating to the various
offers and the availability of the new products which will help attract the customers.
Organix is the other example of the organic food labelling which has been one of the
favourites of the mothers for their newborn. The primary purpose of the company is to
showcase the different kinds of baby products which will be beneficial for the health of the
babies and gain more competitiveness in comparison to the other products of Johnson and
Johnson company or many others which are present in the market (Organix.com 2019).
Conclusion
Therefore, it can be concluded that the perceptions of the customers play a significant
role in purchasing labelled organic products in the market. Moreover, the natural food
products use the effective marketing strategy that has helped the companies which are selling
organic food and other products to gain competitiveness in comparison to the other
companies.

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References
Dendler, L. and Dewick, P., 2016. Institutionalising the organic labelling scheme in China: A
legitimacy perspective. Journal of Cleaner Production, 134, pp.239-250.
OGXbeauty.com 2019 Shampoo, Conditioner, Hair Products, Body Wash & More | OGX
(online) Retrieved from https://www.ogxbeauty.com/ [Accessed on 5th April 2019]
Organix.com 2019 Food You Can Trust (online) Retrieved from https://www.organix.com/
[Accessed on 5th April 2019]
Perera, C.R., Johnson, L.W. and Hewege, C.R., 2018. A review of organic food consumption
from a sustainability perspective and future research directions. International Journal of
Management and Sustainability, 7(4), pp.204-214.
Thøgersen, J., Pedersen, S. and Aschemann-Witzel, J., 2019. The impact of organic
certification and country of origin on consumer food choice in developed and emerging
economies. Food Quality and Preference, 72, pp.10-30.
Zhang, J. and Boldt, L., 2017, January. Is Organic Labelling Enough? Information Disclosure
as a Policy Instrument to Empower Consumer Choices. In Proceedings of the 50th Hawaii
International Conference on System Sciences.