Customer Intentions In Buying A Premium Product Industry Marketing Essay

Organic food consumption between customers is getting famous these days. The approach has appeared in present’s modern world as a result of the raised in knowledge of the significance to sustain a healthy lifestyle by consuming foods without insecure additives, preservatives, flavor as well as coloring. Organic food is manufactured without utilizing mainly conventional pesticides; fertilizers prepared through artificial items or sewage sludge; bioengineering; or ionizing radiation, consequently supports the healthy food attributes. Though, found on the analysis of literatures, there were a number of discrepancies in the earlier research findings. In terms of perceived value towards organic food product, the majority of the research found positive as well as not less also ascertained negative outcome primarily because of the lack of some special value in the eyes of customers. For example, high in cost, not value for money, satisfied through the presented conventional food, uncertainties on the product warranty as well as ambiguous assertions of the organic status. The research plans to recognize the perceived value factor as well as its impact towards the consumers’ intention in buying a premium product in the food industry.

Our way of life has modified in such fast paced world as contrasted to some decades ago. Nowadays, more and more persons are caught up in a continuous cycle of purchasing as well as throwing away, observing consumption as a means of self-fulfillment. Consumption is the basis why anything is manufactured. Demand towards products is directed by handiness moreover habit that in returned is difficult to change. In fact customers has slight information of the link among their consumption preferences as well as the environmentally outcomes. Malaysia which is at the intermediary phase of expansion is dealing with incredible challenge in ensuring sustainable growth. According to Aini M.S (2003), “Solid domestic waste is one of the key environmental setbacks facing by the municipalities in the country principally inside the urban area”.

“The increase of the environmental awareness has had a thoughtful result on customer behavior, with the green product market developing at an outstanding rate”, (Bhaskaran et.al, 2006). Consequently, in the ancient times there have been an enhanced of production as well as consumption of organically-manufactured products which is seen as having fewer effect to the environment. Within December 2000, the National Organic Standards Board of the United States Department of Agriculture (USDA) created a national standard for the word "organic." Organic food, described by how it cannot be prepared rather than how it can be prepared, should be manufactured without the utilization of sewer-sludge fertilizers, mainly synthetic fertilizers as well as pesticides, genetic engineering (biotechnology), growth hormones, irradiation as well as antibiotics. Various ranges of agricultural products can be manufactured organically, including produce, grains, meat, dairy, eggs, as well as processed food products. "Organic" does not indicate "natural." There is no legal description as to what represents a "natural" food. Though, the food industry applies the word "natural" to point out that a food has been simply processed furthermore is preservative-free. Natural foods can contain organic foods; however not the entire natural foods are organic.

Apprehensions associated to the atmosphere are evident in the increasingly environmentally aware market place. “Over the years a greater part of customers have understand that their buying attitude has a straight impact on numerous ecological troubles”, (Laroche, 1996). The expansion of organic agriculture is observed as element of the rising marketing trends where customers demand to identify what advantages a food could bring before crafting a buying intention. Even though the demand for organic food is yet optimistic, there are symbols so as to markets are growing as well as expansion rates over the some preceding years reduced to lower 10% (Firth et.al, 2004). With respect to growth potential of customer demand as well as its limits various researchers have recognized furthermore leveled motivations for purchasing organic products moreover have usually demonstrated an optimistic image of powerful demand. Person that buy organic food has been categorized within four groups respectively (Anne Davis, Albert J.Titterington and Clive Cochrane, 1995): greens; person that are affected with the atmosphere, food phobic; individuals that concerned regarding chemical residues within food, humanists; individuals that are preoccupied with factory farming processes as well as hedonists; individuals that consider so as to a premium products should be good as well as significantly taste good.

The customers identified that organic food has the value as well as advantages and therefore they are ready to pay extra for the cost. Hutchins as well as Greenhalgh (1997) noted that about half of the customers of their sample were ready to pay extra for organic foods, the greater part of them reaching levels of 10-20%. Meier-Ploeger as well as Woodward (1999) stated that 52% of the German customers of their sample were ready to pay extra for organic fruits as well as vegetables, 34% for animal products as well as 39% for grain products. Canavari et al. (2003) stated that the intended premium price for organic peaches as well as apples was accepted by 65.8% of the Italian respondents of their survey. In the same way, Gil et al. (2000) said that actual Spanish organic customers were ready to pay a premium of 15-25% for organic food.

This research tried to expand understanding related to customer intention towards organic food product utilization moreover to perceive whether there is any potential such might have for changing their attitude. The underlying principle for carrying out such project is that no chances of any products to be well acknowledged moreover no conservation program could be booming if there is not sufficient support presented from the public, on the other hand good it may be. In brief, consideration for the atmosphere could come only from knowledgeable public who are aware of, as well as entirely committed to their rights to a quality health as well as atmosphere. On the other hand, before any attitude can be transformed, it is essential to calculate the present condition of customer understanding as well as awareness. Consequently customer’s behavior, intention towards organic food products, eagerness to compensate for organic food product as well as intention to buy organic food will be the key outline of the study.

The objective of this research is usually to realize the behavior of local customers on their intention towards purchasing organic food product. Such customers are amongst those that have finished their buying in conjunction with organic product, customer that never buy any organic product moreover those that are in longer time offered themselves as an organic food purchasers as well as customers. Particularly the study is attempting:

To increase understanding about customer behavior towards organic food product

To scrutinize the causes which may effects the intention of purchasing organic food product

To discover factors which might affect buying intention of organic food between customers

The basic purpose was to better recognize customer motivations for purchasing organic food products in order that organic manufacturers could build up further valuable strategic marketing planning.

Research associated to customer behaviors as well as preferences for organic products is extremely undetectable (Chinnici et al.,2002). Outcomes of researches assured that customers have optimistic bevaiors towards organic products where one of the mainly widespread stated cause for buying organic products was it is recognized as healthier as compared to conventional substitutes (Chinnici et al., 2002; Harper and Makatouni, 2002). In previous research the majority respondents are illustrated as white, female, professional as well as younger (Harris, 2000), though such traits cannot be used across the entire studies because the reactions towards organic food products alters in relation to countries environment, stage of awareness, product accessibility as well as attitude transforms. Customer behaviors to organic food have as well been discovered in a little amount of qualitative studies (Nielsen at al., 1998; Torjusen et al., 2001). Customers do not all the time purchase sustainable products as effects of environmental alarms or to advantage the community or because of personal faiths however mostly to grant precedence to health, to be an element of the societal group, to differentiate from various furthermore to realize the requirement to test latest technologies (Vermeir and Verbeke, 2004).

While near the beginning of 1965, customer’s perceptions towards pesticide utilization in farms were discovered (Bearler and Willits, 1968; Sachs et al., 1987). Methods applied to investigate such topics have been differed, comprised mail as well as phone surveys. In proportion to the research, there are amount of causes so as to customer decide to buy organic food products, in addition to several barriers. Causes of purchasing could be assembled according to common as well as commodity-specific concerns (Yiridoe et al. 2005). Instance of concern comprises food safety, human health, environmental effect, while commodity characteristics contained taste, freshness as well as packaging (Yiridoe et al., 2005). Surveys have recognized further positive characteristics so as to customer relate with organic food products that comprise advanced taste (Davies, 1995), they are good for atmosphere (Lea and Worsley, 2005), as well as they are enhanced for animals (Goldman and Clancy, 1991).

Do you expect to consume organic food?

Do you would like to buy organic food products?

Do you plan to consume organic food?

What are you intentions when buying premium organic products?

Do you try to consume organic food for long term health benefits?

Are you satisfied with the organic products?

Does your family prefer halal products?

Do you believe that organic products have more freshness?

Do you believe that Organic products have superior quality?

Do you believe that Organic foods are natural food products?

Do you believe that Organic products are tastier?

Are you intend to buy organic food produce within the subsequently fortnight?

Do you think that Organic food has more nutritional value than conventional food?

Are you really worried about food safety because of your concerns with animal diseases for instance bird flu, influenza H1N1?

Quality and safety of meat nowadays concerns you?

Do you think it is important to know well how to eat healthily?

Do you prepared to leave a lot to eat as healthily as possible?

Are you alert to changes in health?

Do you take responsibility for the state of your own health?

Do you consider yourself very health conscious?



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