Major Project Report

On

A study to determine the factors that influence the attitude

of people towards organic food
Submitted in partial fulfillment of the requirements

for the award of the degree of

Bachelor of Business Administration (BBA)

Guru Gobind Singh Indraprastha University, Delhi

Submitted to: Dr. Manisha Gupta Submitted by: Aviral Bajaj

Designation Roll No.:01321401715

(Jagannath International Management School, Vasant Kunj)

Batch (2015-2018)
Certificate of originality

Certificate No 2

This is to Certify that the Project Report (BBA-311) titled “A study to determine the

factors that influence the attitude of people towards organic food"

done by Aviral Bajaj Roll No. 01321401715 is completed under my guidance.

Signature of the Guide

Date:

Name of the Guide: Dr. Manisha Gupta

 CONTENTS
S No Topic Page No
1 Summer Internship Certificate -
2 Certificate -
3 Acknowledgements -
4 Executive Summary -
5 Chapter-1: Introduction to the Topic -
6 Chapter-2: Literature Review -
7 Chapter-3: Research Methodology -

3.1 Title
3.2 Title Justification
3.3 Objective of study
3.4 Research Methodology
3.4.1 Research Design- Exploratory/ Descriptive/
Experimental
3.4.2 Data Collection-
 Primary Data
 Secondary Data
3.4.3 Sampling
 Sampling Technique
 Sampling Design
 Sample Unit
 Sample Area
 Sample Size

3.5 Data Analysis Tools- Graphs, Chart, Percentage etc

3.6 Limitation of Study

8 Chapter-4: Data Analysis -

9 Chapter-5: Findings -
10 Chapter-6: Suggestions/ Recommendations -
11 Conclusions -
12 References/Bibliography -
13 Appendices- Questionnaire -
 CHAPTER -1

INTRODUCTION
Organic food is food produced by methods that comply with the standards of organic farming.
Standards vary worldwide, but organic farming in general features practices that strive to cycle
resources, promote ecological balance, and conserve biodiversity. Organizations regulating
organic products may restrict the use of certain pesticides and fertilizers in farming. In general,
organic foods are also usually not processed using irradiation, industrial solvents or
synthetic food additives.

Currently, the European Union, the United States, Canada, Mexico, Japan, and many other
countries require producers to obtain special certification in order to market food as organic
within their borders. In the context of these regulations, organic food is produced in a way that
complies with organic standards set by regional organizations, national governments and
international organizations. Although the produce of kitchen gardens may be organic, selling
food with an organic label is regulated by governmental food safety authorities, such as the US
Department of Agriculture (USDA) or European Commission (EC).

There is not sufficient evidence in medical literature to support claims that organic food
is safer or healthier than conventionally grown food. While there may be some differences in the
nutrient and antinutrient contents of organically- and conventionally-produced food, the variable
nature of food production and handling makes it difficult to generalize results. Claims that
organic food tastes better are generally not supported by evidence.

Organic food production is a self-regulated industry with government oversight in some

countries, distinct from private gardening. Currently, the European Union, the United States,
Canada, Japan, and many other countries require producers to obtain special certification based
on government-defined standards in order to market food as organic within their borders. In the
context of these regulations, foods marketed as organic are produced in a way that complies with
organic standards set by national governments and international organic industry trade
organizations.

In the United States, organic production is managed in accordance with the Organic Foods
Production Act of 1990 (OFPA) and regulations in Title 7, Part 205 of the Code of Federal
Regulations to respond to site-specific conditions by integrating cultural, biological, and
mechanical practices that foster cycling of resources, promote ecological balance, and conserve
biodiversity. If livestock are involved, the livestock must be reared with regular access to pasture
and without the routine use of antibiotics or growth hormones.

Processed organic food usually contains only organic ingredients. If non-organic ingredients are
present, at least a certain percentage of the food's total plant and animal ingredients must be
organic (95% in the United States, Canada, and Australia). Foods claiming to be organic must be
free of artificial food additives, and are often processed with fewer artificial methods, materials
and conditions, such as chemical ripening, food irradiation, and genetically
modified ingredients. Pesticides are allowed as long as they are not synthetic. However, under
US federal organic standards, if pests and weeds are not controllable through management
practices, nor via organic pesticides and herbicides, "a substance included on the National List of
synthetic substances allowed for use in organic crop production may be applied to prevent,
suppress, or control pests, weeds, or diseases." Several groups have called for organic standards
to prohibit nanotechnology on the basis of the precautionary principle in light of unknown risks
of nanotechnology. The use of nanotechnology-based products in the production of organic food
is prohibited in some jurisdictions (Canada, the UK, and Australia) and is unregulated in others.

Interest in organically produced food is increasing throughout the world in response to concerns
about conventional agricultural practices, food safety and human health concerns (e.g., Gregory,
2000; Grossman, 1972; Schifferstein and Oude Ophuis, 1998), animal welfare considerations
(e.g., Harper and Makatouni, 2002; Hughes, 1995) and concern about the environment (e.g.,
Grunert and Juhl, 1995; Tregear et al., 1994; Wandel and Bugge, 1997; Wilkins, and Hillers,
1994). These concerns, along with observed organic consumer behaviour has led, in part, to
emergence of various groups of organic consumers, namely environmentalists, food phobics,
healthy eaters, humanists, welfare enthusiasts, and hedonists (Davies et. al., 1995) (Table 1). The
interest in organic agriculture has prompted numerous studies comparing aspects of organic and
conventionally-produced foods. Stakeholder interest has also prompted a need to not only
determine the extent to which there is a scientific basis for claims in support of organic products,
but also to consolidate and evaluate the numerous empirical studies and findings. Bourn and
Prescott (2002), for example, provided an excellent review of several studies comparing selected
biophysical and related quality attributes of organic and conventionally produced foods. Woese
et al. (1997) evaluated selected studies based on the physico-chemical quality attributes for
various food groups, including cereals and cereal products, potatoes, vegetables and vegetable
products, wines, beers, bread, dairy products, meat and eggs, fruits, and nuts and oil seeds.

The future of organic agriculture will, to a large extent, depend on consumer demand. Thus, a
consumer-oriented approach to understanding organic agriculture is important not only in its own
right, but also in terms of response to shifting market dynamics. From a marketing

perspective, it is important to understand our (human) conception of consumer decision-making

regarding organically produced foods, and how consumption can be promoted. Product
development and marketing strategies are also affected by consumer beliefs, attitudes and
responses. This could vary depending on the region of the world. Thus, a clear understanding of
consumer attitudes and the motivations underlying actions in responding to organically grown
products is important.
This review is concerned with our (human) conception of consumer decision-making for
organically produced foods, based on a microeconomic perspective. In this regard, this review
compliments and extends the work of Woese et al. (1997) and Bourn and Prescott (2002).

As per the report on ‘Global Organic Foods and Beverages Market Analysis’ by
Products, Geography, Regulations, Pricing Trends and Forecasts (2010–2015), the global
market for organically produced foods and beverages was USD51 billion in 2008 and
was expected to have a CAGR of 12.8% from 2010 to 2015, reaching USD104.5 billion
by 2015. By the same period the market for organic food was expected to grow in the
Asia-Pacific and Latin American region, due to growing consumer awareness and
expanding range of products. Europe is the largest consumer of organic food, beverages,
and supplements, while Asia and rest of the world are expected to have the highest
growth rates of 20.6% and 16.2% production, respectively. The growth is attributed to the
high domestic production, increasing per capita income, and regulatory reform initiatives
in China, India, Singapore, Australia, and a few Latin American countries (Brazil and
Argentina). Thus, globally, the markets are growing at different rates (Sadek and
Oktarani, 2009). The growth in demand is expected to continue in the years to come,
though, the situation may differ between countries and in terms of the type and quantities
of production (Vindigini et al., 2002).

At present the organic food product portfolio in India includes fruits and vegetables,
spices, pulses, honey, tea, coffee, herbs and so on. Currently, the market penetration for
organic food is low and hence a major portion of the produce is being exported from
India. A report on the Organic Food Sector by the Agriculture and Food Industry in India
in 2011, states that the growing concern for health consciousness, increasing disposable
incomes, changes in the spending patterns, government support, have led to an increase in
the market potential for organic foods in the country. According to the research report,
Indian Organic Food Market Analysis,1 organic food is invariably catching up pace
among the Indian retailers, especially with the niche retailers due to the increasing
awareness among Indian consumers towards leading a healthy life. It was anticipated that
the organic food sector will post significant growth during 2011–2013, invariably
growing at a CAGR of 15% (RNCOS, 2012). Presently, surmounted growth is being
witnessed from new demand pockets, arising from the tier 1 and tier 2 cities, thus,
signalling huge acceptance among the masses (RNCOS, 2012). This study pertains to the
tier 2 city of Nasik, Maharashtra, India. Nasik is referred to as the wine capital of India. It
is the third most industrialised city in the state of Maharashtra, having a population of
1,620,000 (in the year 2009). The city is similar to other tier 2 cities in India (McKinsey,
2008). The annual per capita district income was INR 38,751 for the year 2005–2006. An
understanding of the consumers for organic food in a growing city like Nasik will enable
marketers to expand in these markets.
The paper is organised in three sections, where the first discusses the literature
surrounding attitudes towards organic food and its consumption. The second deals with
methodology adopted in the study, the sample criteria and its description. The analysis
and finding are discussed in the last section of this paper.
Due to the increased importance of marketing to market success, firms continue to launch
various forms of green packaging prgrams through the introduction of recyclable and useful
packages. Green marketing is considered as one of the major trends in modern businesses
(Kassaye, 2001). Today, environmental or green marketing, a strategic marketing approach, is a
recent focus in business endeavours (Ottman, 1998). Consumers are therefore, becoming more
sensitive in their environmental attitudes, preferences, and purchases (Sarigöllü, 2009). The
desire of consumers to purchase ecofriendly products and services is rising. Many are more
aware of environmental issues and consequently choose products that do not damage the
environment over less environmentally friendly products, even if they cost more. Firms today are
faced with consumers who are environmentally conscious when making a purchase.
Environmentally preferable products are sometimes more expensive to purchase than other
alternative products. Green consumers have been shown to be willing to pay a higher price for
environmentally friendly products (Larocheet al, 2001; Peattie , 2001), which is a huge
opportunity for companies as well as governments looking to make eco-friendly policy changes.
Thus, the increasing number of consumers who prefer and are willing to buy eco-friendly
products are creating opportunity for businesses that are using ―eco-friendly‖ or
―environmentally friendly‖ as a component of their value proposition. Businesses that offer
products which are manufactured and designed with an environmental marketing mix have a
long term competitive advantage. A better understanding of consumers‘ buying behavior will
allow businesses to acquire more market-applicable approach to sustain in the competitive
market. Behavior has a strong influence in terms of consumer purchases. They are the main
triggers in the consumer purchasing process and also influence the perception of a product. This
complicated process enables businesses to attract new consumers and adapt their products or
services according to their needs and wants or change consumers‘ behaviour towards their
products or services. Consumers tend to reduce their impact on the environment by their
purchasing decisions. There are various factors that affect the buying-decision process of
consumers. A number of Researchers have identified many factors as influencing this process
including; environmental knowledge (Mostafa, 2006), perceived product price and quality
(D‘Souza et al., 2007), company‘s environmental reputation (Schwepker and Cornwell, 1991),
environmental concerns (Phau and Ong, 2007) and credibility of environmental advertising
(Thøgersen J, 2000) It has become very essential to know the factors that create the desire of
consumers to purchase a product. Hence, the present study contributes to the field by
investigating and exploring the extent of the impact of consumers‘ buying behavior towards
organic food products in Thanjavur districts.

PUBLIC PERCEPTION
There is widespread public belief that organic food is safer, more nutritious, and better tasting
than conventional food, which has largely contributed to the development of an organic food
culture. Consumers purchase organic foods for different reasons, including concerns about the
effects of conventional farming practices on the environment, human health, and animal welfare.

The most important reason for purchasing organic foods seems to be beliefs about the products'
health-giving properties and higher nutritional value. These beliefs are promoted by the organic
food industry, and have fueled increased demand for organic food despite higher prices and
difficulty in confirming these claimed benefits scientifically. Organic labels also stimulate the
consumer to view the product as having more positive nutritional value.

Psychological effects such as the “halo” effect, which are related to the choice and consumption
of organic food, are also important motivating factors in the purchase of organic food. The
perception that organic food is low-calorie food or health food appears to be common.
In China the increasing demand for organic products of all kinds, and in particular milk, baby
food and infant formula, has been "spurred by a series of food scares, the worst being the death
of six children who had consumed baby formula laced with melamine" in 2009 and the 2008
Chinese milk scandal, making the Chinese market for organic milk the largest in the world as of
2014. .

Taste

There is no good evidence that organic food tastes better than its non-organic counterparts. There
is evidence that some organic fruit is drier than conventionally grown fruit; a slightly drier fruit
may also have a more intense flavor due to the higher concentration of flavoring substances.

Some foods, such as bananas, are picked when unripe, are cooled to prevent ripening while they
are shipped to market, and then are induced to ripen quickly by exposing them
to propylene or ethylene, chemicals produced by plants to induce their own ripening; as flavor
and texture changes during ripening, this process may affect those qualities of the treated fruit.

CHEMICAL COMPOSITION

With respect to chemical differences in the composition of organically grown food compared
with conventionally grown food, studies have examined differences in nutrients, antinutrients,
and pesticide residues. These studies generally suffer from confounding variables, and are
difficult to generalize due to differences in the tests that were done, the methods of testing, and
because the vagaries of agriculture affect the chemical composition of food these variables
include variations in weather (season to season as well as place to place); crop treatments
(fertilizer, pesticide, etc.); soil composition; the cultivar used, and in the case of meat and dairy
products, the parallel variables in animal production. Treatment of the foodstuffs after initial
gathering (whether milk is pasteurized or raw), the length of time between harvest and analysis,
as well as conditions of transport and storage, also affect the chemical composition of a given
item of food. Additionally, there is evidence that organic produce is drier than conventionally
grown produce; a higher content in any chemical category may be explained by higher
concentration rather than in absolute amounts.

Nutrients

Many people believe that organic foods have higher content of nutrients and thus are healthier
than conventionally produced foods. However, scientists have not been equally convinced that
this is the case as the research conducted in the field has not shown consistent results.
A 2009 systematic review found that organically produced foodstuffs are not richer in vitamins
and minerals than conventionally produced foodstuffs. The results of the systematic review only
showed a lower nitrogen and higher phosphorus content in organic produced compared to
conventionally grown foodstuffs. Content of vitamin C, calcium, potassium, total soluble solids,
copper, iron, nitrates, manganese, and sodium did not differ between the two categories.

A 2012 survey of the scientific literature did not find significant differences in the vitamin
content of organic and conventional plant or animal products, and found that results varied from
study to study. Produce studies reported on ascorbic acid (vitamin C) (31 studies), beta-
carotene (a precursor for vitamin A) (12 studies), and alpha-tocopherol (a form of vitamin E) (5
studies) content; milk studies reported on beta-carotene (4 studies) and alpha-tocopherol levels (4
studies). Few studies examined vitamin content in meats, but these found no difference in beta-
carotene in beef, alpha-tocopherol in pork or beef, or vitamin A (retinol) in beef. The authors
analyzed 11 other nutrients reported in studies of produce. A 2011 literature review found that
organic foods had a higher micronutrient content overall than conventionally produced foods.

Similarly, organic chicken contained higher levels of omega-3 fatty acids than conventional
chicken. The authors found no difference in the protein or fat content of organic and
conventional raw milk.

A 2016 systematic review and meta-analysis found that organic meat had comparable or slightly
lower levels of saturated fat and monounsaturated fat as conventional meat, but higher levels of
both overall and n-3 polyunsaturated fatty acids. Another meta-analysis published the same year
found no significant differences in levels of saturated and monounsaturated fat between organic
and conventional milk, but significantly higher levels of overall and n-3 polyunsaturated fatty
acids in organic milk than in conventional milk.

Anti-nutrients

The amount of nitrogen content in certain vegetables, especially green leafy

vegetables and tubers, has been found to be lower when grown organically as compared to
conventionally. When evaluating environmental toxins such as heavy metals, the USDA has
noted that organically raised chicken may have lower arsenic levels. Early literature reviews
found no significant evidence that levels of arsenic, cadmium or other heavy metals differed
significantly between organic and conventional food products. However, a 2014 review found
lower concentrations of cadmium, particularly in organically grown grains.

Phytochemicals

A 2014 meta-analysis of 343 studies on phytochemical composition found that organically

grown crops had lower cadmium and pesticide residues, and 17% higher concentrations
of polyphenols than conventionally grown crops.[3] Concentrations of phenolic
acids, flavanones, stilbenes, flavones, flavonols, and anthocyanins were elevated,
with flavanones being 69% higher. Studies on phytochemical composition of organic crops have
numerous deficiencies, including absence of standardized measurements and poor reporting on
measures of variability, duplicate or selective reporting of data, publication bias, lack of rigor in
studies comparing pesticide residue levels in organic and conventional crops, the geographical
origin of samples, and inconsistency of farming and post-harvest methods.

Pesticide residues
The amount of pesticides that remain in or on food is called pesticide residue. In the United
States, before a pesticide can be used on a food crop, the U.S. Environmental Protection
Agency must determine whether that pesticide can be used without posing a risk to human
health.

A 2012 meta-analysis determined that detectable pesticide residues were found in 7% of organic
produce samples and 38% of conventional produce samples. This result was statistically
heterogeneous, potentially because of the variable level of detection used among these studies.
Only three studies reported the prevalence of contamination exceeding maximum allowed limits;
all were from the European Union. A 2014 meta-analysis found that conventionally grown
produce was four times more likely to have pesticide residue than organically grown crops.

The American Cancer Society has stated that no evidence exists that the small amount of
pesticide residue found on conventional foods will increase the risk of cancer, though it
recommends thoroughly washing fruits and vegetables. They have also stated that there is no
research to show that organic food reduces cancer risk compared to foods grown with
conventional farming methods.
The Environmental Protection Agency maintains strict guidelines on the regulation of pesticides
by setting a tolerance on the amount of pesticide residue allowed to be in or on any particular
food. Although some residue may remain at the time of harvest, residue tend to decline as the
pesticide breaks down over time. In addition, as the commodities are washed and processed prior
to sale, the residues often diminish further.

Bacterial contamination

A 2012 meta-analysis determined that prevalence of E. coli contamination was not statistically
significant (z7% in organic produce and 6% in conventional produce). While bacterial
contamination is common among both organic and conventional animal products, differences in
the prevalence of bacterial contamination between organic and conventional animal products
were also statistically insignificant.

Health & Safety

There is little scientific evidence of benefit or harm to human health from a diet high in organic
food, and conducting any sort of rigorous experiment on the subject is very difficult. A 2012
meta-analysis noted that "there have been no long-term studies of health outcomes of populations
consuming predominantly organic versus conventionally produced food controlling for
socioeconomic factors; such studies would be expensive to conduct. A 2009 meta-analysis noted
that "most of the included articles did not study direct human health outcomes. In ten of the
included studies (83%), a primary outcome was the change in antioxidant activity. Antioxidant
status and activity are useful biomarkers but do not directly equate to a health outcome. Of the
remaining two articles, one recorded proxy-reported measures of atopic manifestations as its
primary health outcome, whereas the other article examined the fatty acid composition of breast
milk and implied possible health benefits for infants from the consumption of different amounts
of conjugated linoleic acids from breast milk." In addition, as discussed above, difficulties in
accurately and meaningfully measuring chemical differences between organic and conventional
food make it difficult to extrapolate health recommendations based solely on chemical analysis.

As of 2012, the scientific consensus is that while "consumers may choose to buy organic fruit,
vegetables and meat because they believe them to be more nutritious than other food.... the
balance of current scientific evidence does not support this view. The evidence of beneficial
health effects of organic food consumption is scarce, which has led researchers to call for more
long-term studies. In addition, studies that suggest that organic foods may be healthier than
conventional foods face significant methodological challenges, such as the correlation between
organic food consumption and factors known to promote a healthy lifestyle. When the American
Academy of Pediatrics reviewed the literature on organic foods in 2012, they found that "current
evidence does not support any meaningful nutritional benefits or deficits from eating organic
compared with conventionally grown foods, and there are no well-powered human studies that
directly demonstrate health benefits or disease protection as a result of consuming an organic
diet.

Consumer safety

Pesticide exposure
The main difference between organic and conventional food products are the chemicals involved
during production and processing. The residues of those chemicals in food products have
dubious effects on the human health. All food products on the market including those that
contain residues of pesticides, antibiotics, growth hormones and other types of chemicals that are
used during production and processing are said to be safe.

Claims of improved safety of organic food has largely focused on pesticide residues. These
concerns are driven by the facts that "(1) acute, massive exposure to pesticides can cause
significant adverse health effects; (2) food products have occasionally been contaminated with
pesticides, which can result in acute toxicity; and (3) most, if not all, commercially purchased
food contains trace amounts of agricultural pesticides." However, as is frequently noted in the
scientific literature: "What does not follow from this, however, is that chronic exposure to the
trace amounts of pesticides found in food results in demonstrable toxicity. This possibility is
practically impossible to study and quantify;" therefore firm conclusions about the relative safety
of organic foods have been hampered by the difficulty in proper study design and relatively
small number of studies directly comparing organic food to conventional food.

Additionally, the Carcinogenic Potency Project which is a part of the US EPA's Distributed
Structure-Searchable Toxicity (DSSTox) Database Network, has been systemically testing the
carcinogenicity of chemicals, both natural and synthetic, and building a publicly available
database of the results] for the past ~30 years. Their work attempts to fill in the gaps in our
scientific knowledge of the carcinogenicity of all chemicals, both natural and synthetic, as the
scientists conducting the Project described in the journal, Science, in 1992:

Toxicological examination of synthetic chemicals, without similar examination of chemicals that

occur naturally, has resulted in an imbalance in both the data on and the perception of chemical
carcinogens. Three points that we have discussed indicate that comparisons should be made with
natural as well as synthetic chemicals.

1) The vast proportion of chemicals that humans are exposed to occur naturally. Nevertheless,
the public tends to view chemicals as only synthetic and to think of synthetic chemicals as toxic
despite the fact that every natural chemical is also toxic at some dose. The daily average
exposure of Americans to burnt material in the diet is ~2000 mg, and exposure to natural
pesticides (the chemicals that plants produce to defend themselves) is ~1500 mg. In comparison,
the total daily exposure to all synthetic pesticide residues combined is ~0.09 mg. Thus, we
estimate that 99.99% of the pesticides humans ingest are natural. Despite this enormously greater
exposure to natural chemicals, 79% (378 out of 479) of the chemicals tested for carcinogenicity
in both rats and mice are synthetic (that is, do not occur naturally).
2) It has often been wrongly assumed that humans have evolved defenses against the natural
chemicals in our diet but not against the synthetic chemicals. However, defenses that animals
have evolved are mostly general rather than specific for particular chemicals; moreover, defenses
are generally inducible and therefore protect well from low doses of both synthetic and natural
chemicals.

3) Because the toxicology of natural and synthetic chemicals is similar, one expects (and finds) a
similar positivity rate for carcinogenicity among synthetic and natural chemicals. The positivity
rate among chemicals tested in rats and mice is ~50%. Therefore, because humans are exposed to
so many more natural than synthetic chemicals (by weight and by number), humans are exposed
to an enormous background of rodent carcinogens, as defined by high-dose tests on rodents. We
have shown that even though only a tiny proportion of natural pesticides in plant foods have been
tested, the 29 that are rodent carcinogens among the 57 tested, occur in more than 50 common
plant foods. It is probable that almost every fruit and vegetable in the supermarket contains
natural pesticides that are rodent carcinogens.

While studies have shown via chemical analysis, as discussed above, that organically grown
fruits and vegetables have significantly lower pesticide residue levels, the significance of this
finding on actual health risk reduction is debatable as both conventional foods and organic foods
generally have pesticide levels well below government established guidelines for what is
considered safe. This view has been echoed by the U.S. Department of Agriculture[66] and the
UK Food Standards Agency.

A study published by the National Research Council in 1993 determined that for infants and
children, the major source of exposure to pesticides is through diet. A study published in 2006 by
Lu et al. measured the levels of organophosphorus pesticide exposure in 23 school children
before and after replacing their diet with organic food. In this study it was found that levels of
organophosphorus pesticide exposure dropped from negligible levels to undetectable levels when
the children switched to an organic diet, the authors presented this reduction as a significant
reduction in risk. The conclusions presented in Lu et al. were criticized in the literature as a case
of bad scientific communication.

More specifically, claims related to pesticide residue of increased risk of infertility or

lower sperm counts have not been supported by the evidence in the medical literature. Likewise
the American Cancer Society (ACS) has stated their official position that "whether organic foods
carry a lower risk of cancer because they are less likely to be contaminated by compounds that
might cause cancer is largely unknown." Reviews have noted that the risks
from microbiological sources or natural toxins are likely to be much more significant than short
term or chronic risks from pesticide residues.

Microbiological contamination
In looking at possible increased risk to safety from organic food consumption, reviews have
found that although there may be increased risk from microbiological contamination due to
increased manure use as fertilizer from organisms like E. coli O157:H7 during organic produce
production, there is little evidence of actual incidence of outbreaks which can be positively
blamed on organic food production.
CHAPTER - 2

Literature

Review
Anil Menon et al.,(2015) Concerns related to the environmental surrounding are evident in the
fast regarding the environmentally conscious marketplace as well as increasing impact on
corporate strategists. Attracting from the academic literature and case studies of actualw
corporate experiences, this article discusses the principle of environmentally-based marketing
programs within the context of every aspect of the marketing mix. Additionally, it talks about
issues that are of critical importance in the implementation of the concept, from the perspectives
of firm performance and business environment.
.
Lendel Kade Narine , Wayne Ganpat , Govind Seepersad , (2015) was executed to determine
willingness to pay (WTP) and the market possibility for organic tomatoes when marketed as a
differentiated product. A survey research methodology was used in this research. An ANOVA
model applied to determine the mean maximum WTP for organic tomatoes depending on
selected factors. Concluded that most consumers were willing to pay premium prices for organic
tomatoes. Indicated that consumers’ area of residence, educational level, income range, and their
perception of the health benefits derived from organic tomatoes significantly affected their WTP
for organic tomatoes.

Weng Marc Lim et al., (2014) the authors strive to understand the perceived value that
consumers associate with organic food and the factors that impact their willingness to get organic
food. They concluded that from the study suggest that consumers who perceive a positive value
with regard to organic food are more willing to purchase organic food, in which health was the
primary perceived benefit. For consumers who understand a negative value with view to organic
food, they are less willing to purchase organic food. Many consumers did not see any difference
between organic food and nonorganic food as being expensive and argued that more efforts are
needed on the part to source for organic food. Implications and recommendations from research
findings are also presented.

Dr. N. Ragavan & Dr. R. Mageh (2013) talked about the concept the perceptions towards
organic food product depict the strongest relationship with buyers’ intention to buy organic food
product followed by the buyers’ belief that consuming organic food product is adding to
preserving the environment. The availability of product information is also supporting the
consumers’ intention to purchase organic products. The perception towards organic products,
beliefs about product safety for use, opinion about product friendliness to the environment and
availability of product information are the major determinants for the consumers’ purchase
intention towards organic products.
Pavan (2010) has a similar definition for green product, as incorporating the pursuing
characteristics: original grown; recycle, reusable and biodegradable; with natural ingredients;
possesses reused content, non-toxic chemical; will not harm or pollute the environment; it is not
tested on pets and have eco-friendly packaging.

Albino et al., (2009) agree with the fact that the green product is intended to minimize its
environmental impacts during its entire life-cycle. Specifically, non renewable resource use is
minimized, harmful materials are avoided and renewable resource use takes place in accordance
with their rate of replenishment.

Hu, Y.-J. (2009) says that “Service quality as a mediator of the relationship between marketing
mix and consumer loyalty”. There are 3 variables concentrated on under this- Marketing mix,
Service quality and customer loyalty. 14 sub variables were recognized under marketing mix, 21
under service quality and 3 under customer loyalty. The results revealed that there is a strong and
statistically significant relationship between overall marketing mix and overall customer loyalty
and a positive relationship between overall service quality and overall customer loyalty. The
result also suggested that there is no intercession impact of service quality between the
perception of marketing mix and consumer loyalty.

Cengiz, E., & Yayla, H. E. (2007) analyzed the relationship between marketing mix and word
of mouth communication. Variables are increasingly recognized as being sources of competitive
advantage in the marketing and management literature. They collected data from 503 Turkish
accounting offices’ customers and integrative model was developed and tested with structural
equation model . They concluded that marketing mix components, namely price, product,
promotion and place have effect on word of mouth communication with different impacts
significantly.

(Eagly and Chaiken, 2007). Attitude is defined as a psychological path of evaluating a specific
object with favour or disfavour .

(Solomon et al., 2010). It tends to endure over time than an occasional event. For instance,
hearing a loud noise over time could develop a negative attitude towards the sound

(Ajzen, 2001; Chen, 2007; Armstrong, 2009). Attitude can be seen as a fixed way of thinking
when it endures for a longer time. It includes assessments of the items referred to it proceed or
not. Attitude developed through experiences may change when new experiences are obtained
(Solomon et al., 2010). Consumers have attitude to specific product behaviour, for example
which type of food the person 13 prefers to use. Attitude towards a more general consumption
behaviour can also occur, for example how often the person should shop food

(Tarkiainen and Sundqvist, 2005). Attitude towards the behaviour refer to the level of which a
person has a positive or negative evaluation or assessing of the behaviour in question. The more
positive the attitude is regard to a behaviour, the stronger is the individual’s intention to perform
the behaviour under consideration

(Ajzen , 1991; Tarkiainen and Sundqvist, 2005; Chen, 2007) stated that consumer attitude
and preferences to the purchase of a particular product are based on consumer attitude and
personal desirability of performing a behaviour. Attitude towards a certain behaviour is based on
the expectations and beliefs of the consequences as a result of a particular behaviour

Aertsens et al., 2009; Tarkiainen and Sundqvist, 2005). In order to measure consumer
attitude, studies have concluded that it could be measured by using a theory called the theory of
planned behavior (TPB)

(Dean et al., 2008, p. 2089). “Theory of planned behaviour (TPB) is one of the most widely
applied expectancy-value models used to predict and explain human behavior in the area of food
choice”

(Tarkiainen and Sundqvist, 2005; Aertsenset al, 2009). This theory makes it possible to
explain the consumer food choice behavior convincingly and the consumption of organic food .

(Dean et al, 2008). Moreover, human behavior is also a function of behavior intention that is
formed by the combination of attitude toward the behavior, subjective norms and the person’s
attitude of behavior control
 Chapter - 3

Research
Methodology
3.1 Title

"A study to determine the factors that influence the attitude of people towards organic food"

3.2 Title Justification

It helps in analysing the behaviour of the consumer in the changing environment towards
"organic food" products.

3.3 Objective of study

• To find the relationship between the variables that affect consumers‘ buying behaviours for organic food
products..

• To examine the factors that affect consumers‘ buying behaviours for organic food products.

•.To know the reasons why people do not prefer buying organic food products over non organic food
products.

3.4 Research Methodology

This chapter introduces the methodology framework applied in this study by introducing various
available approaches in the research field and justifies the most suitable choices to test the
research hypotheses. This chapter consists of research approach, research design, data sources,
research strategy, data collection method, data analyzing method and quality criteria of the
research. Eventually a summary of the chosen approaches will be presented.

3.4.1 Research Design

Descriptive research design

.
3.4.2 Data Collection :
Primary Data :-

 Questionnaire
 interaction with respondents at mall, other market places etc.
 interaction with respondents in nearby areas.

3.4.3 Sampling

Selecting the sample: Population that was taken as a sample included randomly selected
customers of organic foods.
Sampling Technique : Simple Random Sampling
Sample Size:50 respondents (total)
Sample Area : Vasant Kunj Area in New Delhi

3.5 Data Analysis Tools

After the data has been collected it was entered into Microsoft Excel and was prepared for
analysis.

Pie Charts and Bar Diagrams were prepared after collection of data.

3.6 Limitation of Study

 Sample size too small.

 Not everyone wanted to take part in surveys.

 Time was also a drawback in the study.

 Chapter 4

Data Analysis
Demographic profile

 Eighty five per cent(85%) of the 100 respondents were in the 21-50 age group and 15%
were above the age of 50.
 Most of the respondents were Housewives, lived in metropolitan cities and some were
salaried with annual income of more than Rs.21,000-50,000.
 Some had their own occupation and earned income more than Rs.50,000.

AGE GROUP

15%

Above 50
Between 21-50

85%
 OCCUPATION

25%

40%
Housewife
Ocupation
MNC Employee

35%

HOUSEHOLD INCOME

37%
Between 21,000-50,000
Above 50,000
63%
Familiar term

 Ninety-nine per cent(99%) of respondents were familiar with the term 'organic food'.
When asked to define the term, a majority of respondents related organic" to ideas of
freshness, being natural, healthy and absence of pesticides.
 While 39% said it was food that is free from chemical/pesticides fertiliser.
 Eleven per cent(11%) mentioned that such foods were environment friendly, 42%
perceived them as more nutritious and 2% said that there is No Adulteration.
 Whereas six percent (6%) of the respondents said that it is costly.
 Interestingly, there were respondents who considered organic foods as herbal foods,
foods without antibiotics and traditional/indigenous foods .
 This indicates that consumers interpreted the term 'organic' in a variety of ways and
many did not have a correct understanding of the term.

Q.1 Have you heard about Organic Food?

1%

YES
NO

99%
Q.2 What do you perceive/think about Organic food?

Pesticides/Chemical free
42% 39%
Costly
No Adulteration
Eco Friendly
More Nutritious

6%
11%
2%
Few buyers

Surprisingly, though 99% of the respondents were familiar with organic foods, only 20%
actually bought them, whether regularly or occasionally.
The main reasons for this according to respondents were:
 Less availability/supply
 Costly/not affordable
 Origin/source of product was not credible/trustworthy
 Respondents said they did not know where to buy organic foods and there was less
variety in this category.

Q.3 Do you purchase Organic food?

20%

Yes
No

80%
What they Purchase

 Among organic products, vegetables and fruits were the most popular with 45% of buyers
opting for them.
 While 25% bought powdered spices (turmeric powder, chilli powder, coriander powder
,etc.),
 15% bought beverages (tea, coffee) and 15% dairy products (cheese, yogurt, milk).
 Other products purchased were pulses, cereals, honey and breakfast cereals.

Q4. What type of Organic Foods do you purchase?

15%

Vegetables
45%
15% Powdered Spices
Dairy Products
Beverages (Tea, Coffee)

25%
 Q5. How long have you been interested in Organic
food?

20%
More tha 3 years
35%
1-3 years
0-6 Months
15%
6-12 Months
Never
13% 17%

Q6. How did you first hear about Organic foods?

4%

Internet
24% 33%
Newspaper
Magazines
Friends
Advertisement
24% 15%

Awareness

 33% told that they got aware of Organic food through internet
 15% read about it in newspapers;24% in magazines
 24% got to know about it through their surroundings, friends, relatives, colleagues.
 Rest 4% got to know about it through Advertisements.
Motivation that will persuade people in buying Organic foods instead of non
organic food

(a)Benefits play an important role in encouraging the people to buy the organic food since
people look for advantages of buying the product.53% wanted benefits as most important
component.

Q.7 (a) Benefits

0%

14%
1(Most Impotant)
2
14%
3
53%
4
19% Least Important

(b) Packaging has to be the most important component for persuading people in buying the
organic food products.

Q.7 (b)Packaging
0% 0%
0% 0%

1(Most Important)
2
3
4
5(Least Important)
100%
(c)Pricing is such main issue. People are not ready to give money for Organic food products.
Since Organic food is expensive people are not yet ready to spend so much money.

Q.7(c) Price

4%
6%
8% 25% 1 (Most Impotant)
2
3
4
5(Least Important)
57%

(d)Taste/Quality is not the most important aspect. People are neutral in this component.

Q.7 (d) Taste/Quality

0%

13%
20%
1 (Most Impotant)
2
24% 3
4
5(Least Important)
43%
(e)Concern about Health plays the most vital role since people are paying such heavy
prices and it is said that organic products are generally healthy since they do not contain
pesticides or chemicals

Q.7 (e)Concern about health

5%
10%
1(Most Important)
2
15%
3
4
0%
70% 5(Least Important)
Reasons why people don't purchase organic foods

(a) High Price is the main reason people do not buy the organic products. Here, 60% think
that price is most important aspect of not buying organic products.

0% Q.8 (a)High Price

0% 0%

1(Most Important)
40% 2
3

60% 4
5(Least Important)
(b)Taste is not Good People find organic food not so tasty , so that is also a main reason .
People want taste in the food they eat be it Organic.

Q.8 (b) Taste is not Good

0% 0% 0%

8%

1(Most Important)
2
3
4
5(Least Important)

92%

(c) Low Availability is also one main reason since the supply is less so the availability of the
products is also very low. So, 40% think it is most important.

Q.8 (c)Low Availability

0%
0% 0%

1(Most Important)
40% 2
3
60% 4
5(Least Important)
(d) Low Trust Majority of the people were neutral with the trust issue.i.e.52%, while 40%
found it less important.

Q.8 (d) Low Trust

0% 0%
8%

1(Most Important)
40% 2
3
4
52% 5(Least Important)

(e) Poor Performance people were neutral with this aspect and it did not affect people's
buying decision.

0% Q.8(e) Poor Performance

0% 0%

1(Most Important)
2
48%
3
52%
4
5(Least Important)
Products people would like to buy

 When consumers were asked which organic food products they would like to buy
or consume,
 99% of the respondents indicated fresh vegetables and 94% fruits.
 80%indicated that they would like to buy powdered spices like turmeric powder,
chilli powder, cumin powder and coriander powder.
 This was followed by pulses (76%),
 Cereals (71%), milk and milk products (69%),
 Dry fruits and nuts (64%), oil (61%), tea and coffee (56%),
 Herbs (57%), sugar (49%), bread and bakery products (46%)
 Meat and meat products (26%) and baby products (24%).
Q10. How would you describe your overall opinion of
organic food brands?
0% 0%

10%

31% Very Favourable

Somewhat Favourable
Neutral
Somewhat Unfavourable
Very Unfavourable
59%

Q.11 Would you recommend organic foods to a friend

or associate?
0% 0%

17%
Definitely
Probably
Not sure
55% Probably Not
28%
Definitely not
Chapter-5

Findings
The survey indicated that organic food users are less in number. The barriers to usage such as
price and availability are high. Price premiums have a negative effect on purchase of organic
food. Only 16.8% of the respondents say they are willing to pay a higher price; 65% have said
they may discontinue purchasing because of price. Even charging a premium for nutrition is
―strongly agreed by 28% of the respondents.

Key Findings were -

 99% respondents were aware of the term organic foods.

 However, only 20% bought organic foods regularly or occasionally.

 While 43% respondents did not buy because the products were expensive, 54% were
discouraged by the limited availability and 44% had doubts about the origin/source of
product.

 Those who bought organic foods did so because they were healthy, safe to consume, eco-
friendly and did not have pesticides and chemicals.

 Some of the respondents supported the organic movement and local farmers. Some felt
organic foods led to saving of resources for the next generation .

 Organic vegetables and fruits were the most popular products followed by powdered spices.

 Between conventional and organic food products, 72% preferred organic foods while 8%
said it did not make any difference to them which category they bought.

Table with Data can be found in Chapter 4.

The main reasons for this according to respondents were:

Less availability/supply
Costly/not affordable
Origin/source of product was not credible/trustworthy
Respondents said they did not know where to buy organic foods and there was less
variety in this category.
Locations of store in affluent areas.
Certification is really important since people must get to know the difference between
organic and non organic food products.

What respondents had to say

 Deepak Sharma felt that foods were sometimes touted to be organic in order to lure
 buyers.

 Mr. John Philipp he had to commute a long distance to procure organic vegetables.
 Availability at nearby stores seems to be a critical aspect.

  Ms. Seema did not buy organic as certified products were not available.

  Mr. Rajat was not sure the manufacturing company was authentic.

 Ms. Jha commented that he wished organic foods were abundantly available. According
to him, their non-availability is a great stumbling block to their popularity. Besides, their
benefits too need to be properly and adequately highlighted.

 While some respondents found it difficult to trust the genuineness of the product and said
standards and certification were vital, others wanted more variety and a greater range of
products. 
 For some the high price was a deterrent, while for others lack of awareness was a
problem. 
 Some felt the credibility of existing suppliers was not established.

“It has become a fashion to claim that a product is organic and charges exorbitantly for not using
pesticides without ensuring standards are maintained.” - Dilipkumar Mehta

“Three issues primarily affect consumer behaviour towards organic products: affordability,
availability and awareness. A market needs to be created and the government should help out if
funds are a problem.”- Niyati Parikh Deshpande
 Chapter-6

Suggestions/
Recommendations
1.) Conduct a study that can specifically indicate the effect that community type has on their
view and knowledge of organic food.

2.) Conduct a study that indicates how the respondents’ year in school affects their knowledge
and perception of organic food.

3.) Research the differences between majors and what types of majors and more and/or less
likely to feel a certain way towards organic food and the buying habits of these groups.

4.) Around 65% respondents were not aware of organic standards and labels. It indicates that
there is strong need for creating awareness.

5.) Conduct a study that will specifically indicate how the college students’ knowledge of
organic food affects their buying decisions and perceptions towards organic food

6.) Include more questions that can directly indicate the respondents’ knowledge of the organic
food industry.

7.) Consumers interpreted the term „organic in variety of ways. It indicates that they did not have
a correct understanding of the term. There is need to raise awareness on this issue.

8.) As 17% respondents purchased online, there is need to monitor organic products sold online.
Conclusions
  Some consumers not clear about term ‘organic’


Most consumers think all organic food was sustainable and define organic as natural,
lacking pesticides fresh and essentially „good for the environment. They had
expressed interest in healthy and nutritionally rich food as well as environmental
concerns and sustainability. Interestingly, there are respondents who considered
organic food as herbal foods or foods that did not have antibiotics and some even
understood them as traditional/indigenous foods.


 High Price


The major problem that inhibited people from buying organic food was the price .It
was the major barrier to increased purchasing among those who bought organic
products on a limited scale. It also prevented those who didn't buy at all from taking
that first step. Many people would purchase organic foods if they were affordable.

 Availability Problem


Another major hurdle was lack of availability and doubts about origin. However,
perceptions that organic food was becoming more readily available and getting
cheaper were among the main motivating factors for those who intended to buy more.

Supermarkets/retail chains were the most preferred place for buyers. Consumers were
keen to have more organic shops in their area and to see more organic foods in the
market. Fresh vegetables and fruits were the most preferred produce.

Consumers believed that organic farming was in harmony with nature and the
environment .Many bought organic foods to support local farmers and farm workers.

46
  Lack of Awareness of Labels


People do not seem to know much about certification (standards) and labels of
organic food products but it is an important issue for them. The government should
inform consumers about certifications and genuine labels. Also, if more organic foods
can carry an indicator of the region, sales are likely to rise. Marketers should raise
awareness among consumers about regional products to support local farmers.
Moreover, labour standards should also be included in the certification process.

47
References/
Bibliography

48
 BIBLIOGRAPHY

 www.google.com

 https://en.wikipedia.org/wiki/Organic_food

 https://www.researchgate.net/publication/238608903_Organic_Food_and_Consumer_
Acceptance_-_Recommendations_for_Emerging_Markets.

 http://www.organicfoodinindia.com/

49
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51
 APPENDICES:
QUESTIONNAIRE

52
 QUESTIONNAIRE
(I am BBA student from JIMS , Vasant Kunj , IP University conducting a
survey on consumer behaviour towards Organic food products. i would be
pleased if you participate in my survey.)

Name: Mobile:
E-mail: Occupation:

Age : Below 20 yrs 20-50 yrs Above 50 yrs

Monthly
Household : Up to Rs.20,000 Rs.20,001-Rs.50,000
Income Rs.50,000 above

1. Have you ever heard about Organic Food?

Yes No

2. If Yes, then what do you perceive/think about Organic food?

Pesticides/Chemical free No Adulteration Eco Friendly

More Nutritious Costly

3. Do you purchase Organic Food?

Yes No

4. What type of Organic Foods do you purchase?(You can tick more than
one)

Vegetables Dairy Products Powdered Spices

Beverages (Tea, Coffee ,etc.)

53
5. How long have you been interested in Organic food?

More than 3 yrs 1-3 yrs 6-12 months

0-6 months Never

6. How did you first hear about Organic foods?

Advertisement Magazines Newspaper

Internet Friends

7. In your opinion, what are the most important motivations that will
persuade you to buy organic foods instead of non organic foods?
1(Most Important) 2 3 4 5(Least Important)

Benefits

Packaging

Price

Taste/ Quality

Concern about health

8. Primary reasons you don't purchase organic foods?

1(Most Important) 2 3 4 5(Least Important)

High Price
Taste/ Quality

54
Low availability

Low Trust

Poor Performance

9. Products people would like to consume , if they were Organic.(You can

tick more than one)

Vegetables Powdered spices Pulses Cereals Milk products

Dry fruits and nuts Oil Tea and coffee Herbs Sugar
Bread and bakery products Meat and meat products

10. How would you describe your overall opinion of organic food brands?

Very Favourable Somewhat favourable Neutral

Somewhat Unfavourable Very Unfavourable

11.Would you recommend organic foods to a friend or associate?

Definitely Probably Not sure

Probably not Definitely not

55