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Consumer behaviour, Attitude and

perception towards organic products- A

study in Puducherry

Chair person – Dr. T. Ponnarasi

Asst. Professor

Presented by Malcomestar L . Mawnai

Reason for study

Why organic products are still not highly adopted by

Indian consumers?

What the drawbacks of Indian consumers to go organic ?

Objective of the study

To understand the social distribution on consumers toward organic

products.

To understand the consumer attitude and perception towards organic

products.

To understand the problems of consumers in going for organic

products.

About organic products

What is organic products?

Organic products are the products that are produced, processed, packed and sold

without using any chemicals. Organic products include fruits, vegetables, cereals, milk and

meat products, etc.

**Organic farming doesn’t mean that they go back to methods used hundreds of

years ago.

**But by taking modern scientific knowledge and combine them with useful

traditional farming methods.

**Organic farming isn’t just for vegetables, but animals as well.

**Converting land to organic status is a 6 year process to meet standards set by

the National Organic standards Board.

**Organic food tends to cost more than conventionally grown food because it more

closely reflects the true cost of growing the food.

Reading labels

is important

when deciding

what to

purchase.

World level organic products consumption

Denmark3%

germany28%

UK7%

holland4%

Sweden3%

Belgium1%

Austria5%

Fran…

Ita…

Other countries19%

consumption

Denmark

germany

UK

holland

Sweden

Belgium

Austria

France

Italy

Other countries

India leading states in organic

consumption

Mumbai17%

Delhi15%

Bangalore 15%Amedabad

14%

Hyderebad13%

Indore13%

Chandigarh13%

consumed

Mumbai Delhi Bangalore Amedabad Hyderebad Indore Chandigarh

Why organic products…?? Because…

Healthy

Chemical free

High nutritional

Natural

Environmental / Animal friendly

Free Genetically modified organisms(GMO)

Certified

Tasty

Fresher

High quality

Methodology of the case study

Area of study - Pondicherry

Bon Appetit store , Go organic

Ambour salai, chetty street

Data - Primary data

Sampling size - 25

Based on - Consumer Response (Questionnaire method)

Store

About Bon Appetit store

Bon Appetit is a 6 year old registered firm situated in the Union Territory of

Pondicherry, on the coromandel coast region about 160 kms south of Chennai.

Bon Appetit strives to create awareness amongst the people about our

environment & good healthy living, by promoting Organic & Health Food

Products. Never ending thirst of sourcing these products across our vast

continent, we have tied up with leading Indian Firms, Associations & Local

Farmers.

They also associated with Keystone Foundation an NGO based in the Nilgiris

whose Mission is to enhance the Quality of Life and the Environment with

Indigenous Communities using Eco-development Approaches.

Major organic product brand in store

Organic India -Spices, tea, coffee, etc.

Farm 2 kitchen -Vegetables, fruits, etc.

Humble seeds -Cereals (red rice, white rice)

Almond Laboratorios in Spain -Fresh vegetables, nuts, etc.

Argital in ItalyCastagno in Italy -Flowers , oil , wax,etc

Celnat in France - Flours for bakeries, oat flakes and barley

Danival in France - Ready to eat salads, soups products, oats, etc.

Emile Noel in France - crush organic seeds, oil, etc.

Holle in Switzerland - Baby food products

La Mandorle in France - Dry fruits , dry vegetables, etc.

Nutriops in Spain - Organic nut drinks, syrups, fruits juice, etc.

Vigean in France - Gourmet and dietary oils

Vitagermine in France -Soups, sauces, vegetable spreads, etc.

CONSUMER BEHAVIOUR , ATTITUDE AND PERCEPTION TOWARD ORGANIC PRODUCTS

Demographic characteristic on consumers Variable No. of respondents ( 25 samples) Percentage %

1. Gender

Male

Female

15

10

60

40

2. Age

0-24

24-34

34-50

Above 50

2

4

9

10

32

16

36

40

3. NO. of people in a Household

1-2

2-3

3-4

More than 4

8

11

5

1

32

44

20

4

4. Educational level

No education

Primary school

Sec. school

High school

College/university /more

0

1

1

3

20

0

4

4

12

80

5.Ethnicity

Indian

French

17

8

68

32

6. Employment status

Full time

Part time

Retired

House wife

student

Unemployed

9

1

10

4

1

0

36

4

40

16

4

0

7.Income/month

Low income(10K-30K) 5 20

General characteristics of consumers

BASED ON GENDER

Male40%

Female60%

GENDER

BASED ON ETHNICITY

Indian consumer

68%

French consumer

32%

Ethnicity

Indian consumer French consumer

Based of age of consumers

8%

16%

36%

40%

Age Group

0-24 year 25-34 year 35-50 year Above 50

Based on No. of people in Household

44%

32%

20%

4%

1 To 2 Member 2 To 3 Members 3 To 4 Members Above 4

Based on Educational Level

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

No education Primary school Sec. school High school University & more

EDUCATION

Based on Employment status on

consumers

36%

4%

40%

12%

4%0%0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Full time Part Time Retird House Wife Students Unemployed

EMPLOYMENT

Based on Income of Consumers

Low (10k-30k)20%

Medium(30k-50K)72%

High(50K Above8%

iNCOME

Low (10k-30k) Medium(30k-50K) High(50K Above

Buying Behaviour for Organic ProductsVariable No. of respondent

( Sample of 25)

Percentage %

1. Shopping responsibility

Own

Another person

Together with two

13

4

8

52

16

32

2. Frequency of shopping

5-7 times / week

1-2 times / week

2-3 times / month

Monthly

Less than month

2

10

4

3

6

8

40

16

12

24

3. First time purchase

More than 5 years

3-5 years

1-3 years

Last year

Last 6 month

4

7

5

6

3

16

28

20

24

12

4. Price

High

Medium

low

18

7

0

72

28

0

SHOPPING

RESPONSIBILITY

0%

10%

20%

30%

40%

50%

60%

Own shopping AnotherShopping

Together withtwo

First time purchase organic products

0%

5%

10%

15%

20%

25%

30%

More than 5 years 3 To 5 years 1 To 3 years Last year Last 6 Month

Frequency of shopping Organic products

5 To 7 times per week8%

1 To 2 times per week40%

2 To 3 per month16%

Monthly12%

Less than a month24%

5 To 7 times per week 1 To 2 times per week 2 To 3 per month Monthly Less than a month

Price of organic consumer toward

products

72%

28%

0%

High Price Medium Price Low Price

ASSESSMENT OF STATEMENT ABOUT ORGANIC PRODUCTS

STATEMENT ABOUT ORGANIC PRODUCTS Agree % Neutral % Disagree % Don’t

know%

Healthy 100 0 0 0

Tasty 76 8 0 16

Freshy 84 16 0 0

High Quality 80 20 0 0

Chemical free 100 0 0 0

High Nutritional 100 0 0 0

Natural 100 0 0 0

Environmental/ Animal friendly 92 0 0 8

GMO(Genetically modified organism) 80 0 0 20

Certified products 84 4 8 4

Description of Organic products by

consumers

0%10%20%30%40%50%60%70%80%90%

100%

RESPONSE

Agree Neutral Disagree Don't know

General findings from the study

From all the aspects that we have discussed, I also find that the

products consumed by the people are a mixed of Indian and imported

products.

No . Of buyers are less.

Consumer standard of living is High.

Consumer are both Indian and French (Indian territory )

Price tagging are done for the products .

Price comparison.

Based on types of consumer

fully organic8%

partly organic92%

consumer

fully organic

partly organic

Products group preference by consumers

Sl.No PRODUCTS GROUP CONSUMER (25) CONSUMER (25)

MEN PREFERENCE% WOMEN PREFERENCE%

1 Fresh vegetables 48 80

2 Fresh fruits 64 88

3 Meat and meat products 84 12

4 Processing fruits n vegetables 72 80

5 Cereals 64 76

6 Bread and bakery products 4 8

7 Pulses 56 92

8 Dried fruits and nuts 80 68

9 Beverages 84 32

10 Oil 36 64

11 Sugar products 28 72

12 Herbs and spices 40 88

13 Tea n coffee 92 96

Suggestion and Recommendations

Production should be increased by encouraging the farmers to go for organic

farming.

Price of the organic products should be reduced .

Awareness on consumers toward organic products is needed.

Availability of organic products in all types of market is needed.

In the organic sector we often hear the

question: is organic more expensive, and why

is that?The fact is organic foods are not more expensive when considering social, economic, political and environmental dimensions, but to understand that statement we have to look at who and what pays for the true costs of food production.

Non-organic agriculture is subsidized in most part of the world. In other words, if the market does not pay what it costs to grow a crop the government often steps in with a subsidy to the farmers. Then It Is The Tax Payers Who Pays.

The most important Costs for Organic Agriculture are the Costs for the Consultants, Inspection & Certification Process. Certified by National organic standard board , USDA, etc.

Conclusion

According to the study which was based on the reposed of the sample taking,

I conclude that organic consumer in Puducherry is well aware of the goodness

of organic products .

Also the organic products is costly when compare to non – organic products

that why most of the consumer deflect there mind toward non- organic .

Organic products has less shelf life and more storage pest attack, which make

the consumer feels uncomfortable to go for organic products.

Potential demand of organic products in the future.

And till date , most of the consumer are still consumed both organic and non-

organic products.

THANK YOU