Consumer Behavior Towards Organic and Natural Products

 
Consumers’ Processing of
Organic, Natural, and
Standard Labeling
 
Erica Bewley
Daniel Turnbow
Hanover College
 
 
The Growing Organic Market
 
In 1991 and 1995 only 7 percent of all organic sales were
contributed by conventional retailers
 
In 2000, 49 percent of all organic sales were supplied
through conventional retailers
 
 
 
 
 
(Dimitri & Greene, 2000)
 
The Collision of all Packaged Products
 
 
 
 
 
 
 
 
(Kuvykaite, Dovaliene and Navickiene, 2009)
 
 
 
 
 
 
 
http://www.joshuakennon.com
 
Three classes of products and
Packaging
 
Standard Manufactured
 
o
Packaging is based on product
 
Natural
o
Packaging has heavy implications of Naturalness.
 
Organic
o
Packaging displays organic characteristics and is
USDA approved.
 
 
Why do we choose the products that
we do?
 
Choices could be attributed to:
 
Packaging
    
(Kuvykaite, Dovaliene and Navickiene, 2009)
 
Eco-labeling
(Johnston, Wessells, donath, and Asche, 2001)
 
Personal characteristics and opinions
(Sirgy, 1985)
 
 
 
Personal Differences
 
Organic Products may have a symbolic value on which
personality traits can be reflected
    
(Grubb and Grathwohl, 1967)
 
Moral norms (such as, personal beliefs considering
right or wrong doings) can be deemed the main
motivator of purchasing intention.
  
(Guido, Prete, Peluso, Maloumby-Baka, and Buffa, 2010)
 
When considering Organic vs. Standard products
individual personality traits may indicate a
relationship with consumer behavior.
 
Idealism
 
High Idealism: Desired consequences can be
brought about through the “right” actions.
 
Low Idealism: Desired and undesired
consequences come as a mixed bag and you
can’t know why something happens.
     
Schlenker & Forsyth, 1977
 
Hypothesis
 
People will be willing to pay more for
organic products
 
 
Personal characteristics will play a role
in the choosing of certain products
 
Participants
 
 
N= 169
 
Gender
Females: 99
Males: 70
 
Age
Mean:25.9
Median: 22
Range: 15 - 64
 
 
Education level
Median ranged between
a high school education
and some college
experience
SES
Median income bracket:
$25,000-$50,000
 
Online survey participants
 
Stimuli
 
Three product classes from each of three
companies
Companies were selected for having a product that
appears in each of our three categories
 
Though Smucker's did have an organic grape jelly,
it was unobtainable in our area.
An organic granola bar was substituted in its
place
Unable to find similar flavors and color of the R.W.
Knudsen juice in all three classes as well
 
 
Standard
 
Natural
 
Organic
 
Equipment
 
Online Survey
 
Photos of Products
o
DSLR Camera
o
Actual products
o
Borrow Photo lab in CFA
 
Design
 
Mixed design
 
Each participant views only one product
category. e.g. only organic products
 
Online survey
 
Procedure
 
 
With product displayed, asked to make
judgments about the product one factor at a
time
o
Free Short response for price willing to pay
o
Quality, environmental friendliness, healthfulness,
ethicalness of company
A
sked to complete demographic section
Personality
Idealism
(Forsyth, 1980)
Big five
(Gosling, 2003)
 
Product Features
 
Price Willing to pay
 
Discussion
 
People were not willing to pay more for organic
products
High ratings in organic for quaility, environment,
healthiness, and ethical
Personality Dimensions
 
Idealism:
 
o
Highly idealistic = willing to pay more for
organic, but not natural products
 
o
Low Idealism = natural products
 
Future Research
 
Within-Subjects Design
 
o
Forced choice
 
Familiartiy of product
 
Expanded Big Five
 
Questions
 
    
???????????
 
Ethicalness of company and
Participant Agreeableness
 
Quality of product and
Participant Agreeableness
 
Ethicalness and Idealism
 
Healthfulness of product and
Participant Agreeableness
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Exploring the shift in consumer preferences towards organic and natural products, this study delves into the factors influencing product choices, such as packaging, eco-labeling, personal characteristics, and moral norms. The research also examines the role of personal differences and idealism in consumer behavior, highlighting the increasing willingness to pay more for organic products.

  • Consumer Behavior
  • Organic Products
  • Natural Products
  • Eco-labeling
  • Packaging

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  1. Consumers Processing of Organic, Natural, and Standard Labeling Erica Bewley Daniel Turnbow Hanover College

  2. The Growing Organic Market In 1991 and 1995 only 7 percent of all organic sales were contributed by conventional retailers In 2000, 49 percent of all organic sales were supplied through conventional retailers (Dimitri & Greene, 2000)

  3. The Collision of all Packaged Products (Kuvykaite, Dovaliene and Navickiene, 2009)

  4. Three classes of products and Packaging Standard Manufactured o Packaging is based on product Natural o Packaging has heavy implications of Naturalness. Organic o Packaging displays organic characteristics and is USDA approved.

  5. Why do we choose the products that we do? Choices could be attributed to: Packaging (Kuvykaite, Dovaliene and Navickiene, 2009) Eco-labeling (Johnston, Wessells, donath, and Asche, 2001) Personal characteristics and opinions (Sirgy, 1985)

  6. Personal Differences Organic Products may have a symbolic value on which personality traits can be reflected (Grubb and Grathwohl, 1967) Moral norms (such as, personal beliefs considering right or wrong doings) can be deemed the main motivator of purchasing intention. (Guido, Prete, Peluso, Maloumby-Baka, and Buffa, 2010) When considering Organic vs. Standard products individual personality traits may indicate a relationship with consumer behavior.

  7. Idealism High Idealism: Desired consequences can be brought about through the right actions. Low Idealism: Desired and undesired consequences come as a mixed bag and you can t know why something happens. Schlenker & Forsyth, 1977

  8. Hypothesis People will be willing to pay more for organic products Personal characteristics will play a role in the choosing of certain products

  9. Participants Online survey participants N= 169 Gender Education level Median ranged between a high school education and some college experience Females: 99 Males: 70 Age Mean:25.9 Median: 22 Range: 15 - 64 SES Median income bracket: $25,000-$50,000

  10. Stimuli Three product classes from each of three companies Companies were selected for having a product that appears in each of our three categories Though Smucker's did have an organic grape jelly, it was unobtainable in our area. An organic granola bar was substituted in its place Unable to find similar flavors and color of the R.W. Knudsen juice in all three classes as well

  11. Standard

  12. Natural

  13. Organic

  14. Equipment Online Survey Photos of Products o DSLR Camera o Actual products o Borrow Photo lab in CFA

  15. Design Mixed design Each participant views only one product category. e.g. only organic products Online survey

  16. Procedure With product displayed, asked to make judgments about the product one factor at a time o Free Short response for price willing to pay o Quality, environmental friendliness, healthfulness, ethicalness of company Asked to complete demographic section Personality Idealism (Forsyth, 1980) Big five (Gosling, 2003)

  17. Product Features 7 (1:strongly disagree, 7: strongly agree) 6 5 Likert Ratings 4 Standard Natural Organic 3 2 1

  18. Price Willing to pay 4 3.5 3 Cost Low Idealism 2.5 High Idealism 2 1.5 1 Organic Natural Standard

  19. Discussion People were not willing to pay more for organic products High ratings in organic for quaility, environment, healthiness, and ethical Personality Dimensions Idealism: Highly idealistic = willing to pay more for organic, but not natural products o Low Idealism = natural products o

  20. Future Research Within-Subjects Design o Forced choice Familiartiy of product Expanded Big Five

  21. Questions ???????????

  22. Ethicalness of company and Participant Agreeableness 4.5 4 Ethicalness of Company 3.5 (low:1, High:7) 3 High Agreeableness Low Agreeableness 2.5 2 1.5 1 Bread Juice

  23. Quality of product and Participant Agreeableness 4.5 4 3.5 (low:1, High: 7) Quality 3 2.5 2 1.5 1 High Agreeableness Low Agreeablness

  24. Ethicalness and Idealism 4.5 4 3.5 (low=1, High= 7) Ethicalness 3 Low Idealism High Idealism 2.5 2 1.5 1 Bread Juice

  25. Healthfulness of product and Participant Agreeableness Bread 6 Juice 5.5 5.5 5 (1: low, 7: High) 5 Heathfulness (1: low, 7: High) 4.5 Heathfulness 4.5 4 4 3.5 3.5 3 High Ag Low Ag 3 High Ag Low Ag 2.5 2.5 2 2 1.5 1.5 1 1

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