Executive summary of “Consumer segments in organic food market”

Citation

(2014), "Executive summary of “Consumer segments in organic food market”", Journal of Consumer Marketing, Vol. 31 No. 4. https://doi.org/10.1108/JCM-05-2014-0992

Executive summary of “Consumer segments in organic food market”

Article Type: Executive summary and implications for managers and executives From: Journal of Consumer Marketing, Volume 31, Issue 4

This summary has been provided to allow managers and executives a rapid appreciation of the content of the article. Those with a particular interest in the topic covered may then read the article in toto to take advantage of the more comprehensive description of the research undertaken and its results to get the full benefit of the material present.

The recent global economic downturn has not impeded growth in demand for organic food. North America and Europe are especially strong markets which together are responsible for > 90 per cent of worldwide sales. Germany, France, the United Kingdom and Italy are the strongest European markets, although Scandinavian and Alpine nations boast the highest per capita organic food consumption rates.

This ongoing growth has prompted greater research interest in the consumption of organic food, and significant attention has been paid to profiling and segmenting organic food consumers. Much focus has been placed on the identification of key demographic and socioeconomic factors.

Current literature generally reports that positive attitudes toward and readiness to purchase organic food is more apparent among consumers who are female, highly educated and boast higher income levels. Younger consumers display similar tendencies and are additionally willing to pay higher prices, although their purchase frequency is typically lower. However, research aiming to identify factors which determine willingness to pay has to date produced contradictory results. Evidence from various studies also shows that families with children are likelier to buy organic food.

How organic food is perceived is recognized as another determinant of purchase behavior. In spite of evidence to the contrary, many advocates of organic products regard such food as healthier and more environmentally friendly. A desire to act in ways which benefit society and the environment provides an additional motive for consuming organic food. Perceived superior taste and concern for animal welfare are other reasons commonly cited.

Studies have also revealed that consumers who purchase organic food are typically more anxious about safety and health issues than non-buyers. Such factors influence consumer attitudes toward organic found, while the relevance of consumer values has also been noted by several analysts. Values like “enjoyment of life” and “self-respect” are among those found to positively impact on attitude, along with others such as “security”, “stimulation” and “self-direction”. Particularly influential for those who consume organic food on a frequent basis are the values “benevolence” and “universalism”.

Certain theorists have pointed out that attitude strongly predicts behavior. Studies offer support for this claim in the context of organic food purchasing and for the proposal that intention to buy is prone to influence from any subjective norms which might shape each individual’s behavior.

The focus of certain scholars has been on defining barriers to organic food consumption. A common finding in most studies is that consumers find such products too expensive. Others complain about poor availability and time needed to locate products. Lack of trust in food labeling and the certification process is likewise apparent. In these cases, many complaints refer to the quality of information provided and how it is presented. Some consumers believe that their own consumption habits act as a barrier too.

Consumption patterns, general attitudes to food choice and lifestyles are among the approaches used previously to segment organic food consumers. While segments have been afforded various labels, most researchers have identified notable differences between them. The present work builds on these endeavors in its aim to use consumer attitudes in relation to organic food as a means to determine distinct segments. In addition, Karakaya and Nasir seek to profile consumers in each segment and ascertain any important differences with regard to the health-consciousness, environmental responsibility, socially responsible consumption and lifestyles and values.

Shoppers in malls and grocery stores within urban areas of a European city were approach and asked to complete a questionnaire. Of the 316 respondents, 52 per cent were male and subject age ranged between 18 and > 46 years old. Academic achievement varied from graduate degrees at one end to lower than university education at the other. The range of monthly income was <$1,100 to > $2,500.

Based on responses to the questions, subjects were grouped into three separate categories. These are respectively labeled as consumers with:

• Favorable attitudes: This segment mainly incorporates young, well-educated females with income almost evenly distributed among low, middle and high brackets. However, there are a greater number of high earners in this group. Organic foods are considered healthy, but limited in range and hard to obtain in stores. Such consumers place the largest importance to all the values examined and differ from other segments in the significance they attribute to “sense of accomplishment” and “sense of belonging”. Health orientation and socially responsible consumption also rate highest within this cluster. Intention to purchase and consume more organic foods in the near future and sample new organic products is highest among subjects whose consumption frequency tends to be the highest.

• Neutral attitudes: Young and middle-aged, highly educated males with largely low- and middle incomes are most prominent here. These consumers deem organic food healthy but consider products expensive and difficult to access. Greatest importance is attached to environmentally friendly behavior in this group.

• Unfavorable attitudes: In the main, this cluster contains males and females with low or moderate incomes. Around one-third are aged > 35 years and 40 per cent are in the 18-25 age cohort. This group does not regard organic food as fresh and healthy but are least concerned about cost and availability issues. Such consumers score lowest on health orientation, socially responsible consumption and environmentally responsible actions. Frequency of consumption and future purchase intention is marginally greater than neutral group members.

It surprised the authors that recommending organic foods to others did not significantly differ between the three segments.

Karakaya and Nasir refer to the inclination to assume that environmental responsibility and social responsibility are the same entity. Despite obvious overlaps, they advise against this presumption. A significant finding from this study is that consumers with a favorable attitude toward organic food often engage in socially responsible consumption behaviors. Marketers targeting this segment should thus incorporate this knowledge into communications, which will ideally also accentuate how organic food can positively impact on health. In addition, creating advertisements which emphasize sense of accomplishment and sense of belonging values is recommended. This might positively impact on both volume and frequency of purchase. Achieving such objectives is likelier if companies also increase the number of distribution channels used both locally and nationally to improve accessibility to organic products. Another suggestion to this end is to introduce reward programs for loyal shoppers. Similar incentives might persuade such consumers to engage in positive word-of-mouth to recommend organic products to others.

Messages aimed at those with neutral attitudes could focus more on environmental issues. The authors additionally suggest informing these consumers about factors which make higher prices necessary. Promotional offers like product trials could persuade this group to increase their consumption of organic food.

Increasing knowledge and awareness of organic food should be a priority where the unfavorable segment is concerned. Informing these consumers about food attributes and directing attention toward labeling and certification are other important aspects. Informative marketing together with incentives which include price reductions and free samples could prove the most effective means of persuading hesitant individuals to try out organic products.

To read the full article enter 10.1108/JCM-01-2014-0845 into your search engine.

(A pre′cis of the article “Consumer segments in organic food market”. Supplied by Marketing Consultants for Emerald.)