Opportunity And Demand For Organic Food

Published Date: 02 Nov 2017

Written by: Chang Soi Onn

MAY 2013

1. INTRODUCTION

Nowadays, with the advancement of science and technology world, humans have more information knowledge, technology and education than previous time. As courses, people become more aware and concern to the environment and their surroundings. A better quality and healthy lifestyle have becomes a kind of necessity to the current generation. Therefore, "Organic Food" is recognized to be one of the contributors to a healthy lifestyle. Nearly every day, you can read or see "Organic" topic everywhere around you. From newspaper, magazine, billboard advertisement, internet and etc, "Organic" has slowly becomes a trend to the new society.

This Study was intended to the development of organic a food was complemented with concern on food safety and human health from well-developed organic foods sector thus buyers become more health-conscious and the demand for organic food growths. Consequently, the demand for organic food is grow up determined by consumer’s awareness of the safety and quality of the organic foods and by the environmentally friendly effect of organic foods business opportunity performs (Vindigni, Janssen and Jager, 2011).

1.1 Globalization of organic food

Organic food is an improved quality and safety of food without any antibiotics, hormones, poisons, chemical and genetically modified (Betterdietislam.com, 2011). Therefore, organic foods business practices started designed to encourage organics foods developer and producer in order to process more to reduce cost for improve human health and bring out organics food benefit for everyone make sure can get a health life.

The organic foods markets are expanding to globalization with annual growth rate of 20 to 30 percentages based on Europe countries, Japan and United States (Lohr, 2011). During 2011, the Nielsen Company conducted an international online survey to measure world’s assessment of healthy conscious and organic foods and discovered around 25,000 of consumers are come from different 55 markets, where are Europe, Asia Pacific, North America, Africa and Latin America (Egypt like South Africa, Saudi Arabia and Pakistan).

Malaysia is a vibrant country with moving stable market where from dependent on organic-based industry and now become export-based economy stimulate by advance technology, knowledge-based and capital intensive industries.

1.2 Malaysia organic food

In Malaysia, as in many Asian countries, the rapid socio-economic development, increase in standard of living, and changes in life style has changed the structure of agric-food production and in meeting the demand by the more affluent society. The Malaysian government under the 9th Malaysia Plan had encourage develop organic foods industrial, avoid a heavy reliance on agriculture chemicals and protects crops; make sure all the food and vegetables are organic (9MP, 2006-2011).

During year 2012the population growth rate is 1.576% with consist many types of ethnic group and the three big ethnic groups are Malay, Chinese and Indian. Malaysia food production is a significant component within the organic industry due to Malaysia is sufficient with tropical and agricultural resources. According to Malaysia Food and Drink Report Q1 2012 stated Malaysia Per Capita Food Consumption growth by 3.64% in 2012 to reach RM 1, 564, driven by economic recovery, therefore reversing the economic recession during 2010.

In this current year, Malaysia begins to grow a large quantity of fresh vegetables and fruits due to the local production are relatively low and fresher than imported products. Therefore, these amounts of local fresh vegetable and fruits become Asia-centric food of Malaysia.

Additionally, consumers in Malaysia start becoming health conscious consumers and aware on their foods in daily life.

Consequently, the consumption of fresh vegetable and fruits is increasing fast and strongly. Beside, many of the Malaysians are becoming high educated on the way their eating can influence health and tend to be highly consumed on organic fruits and vegetables. In Malaysia food industry, health consciousness and organic food become new important trend in this future year. However, this is a popular trend in Malaysia and the market of organic products increasing rapidly as number of consumers willing to eat organic food for example, fresh fruits and vegetables in extra pay for premium price is became more and more (Aryal, Chaudhary, Pandit andSharma, 2009).

1.3 Barrier of organic food demand

According to the demand on organic foods are growing up barrier in Malaysia due to the price of organic foods are high and very expensive for most consumers in Malaysia. Furthermore, some of organic foods’ suppliers and farms are not certified by local or international organic foods certificate. For suppliers and farmers protected by organic food certification and they are complying with high price of standard of qualification. According to Fourth National Health and Morbidity Survey as in Euro monitor International (2012) discovered Non-communicable diseases (NCD) such as obesity, diabetes and hypertension was increasing to alarming level in Malaysia.

1.4 Opportunity of organic food

Besides that, Malaysians obesity level also increasing to alarming level from 7.1% (2008) to 8.5% (2012) of Malaysians aged 15 years old and above(Euro monitor International data, 2012).

In future, the number of chronic diseases for example diabetes, high blood pressure and heart or kidney problems will increase and become a common window for the diseases. In Malaysia, the female population is 9,253,574 which range between above 15 to 64 years old (Malaysia Demographics Profile, 2012), and they are future wives and mothers; therefore they shops for foods and groceries which the products are advantages of organic food for their families’ health and they will always give the better foods to their babies and kids.

Therefore, many businessmen discovered those family households are more consume on organic foods without consideration pricing (Radman, 2005; Hofmann 2006, Fotopoulos et al., 2002, Zanoli et al., 2004, Davies et al., 1995 as in Becker 2007). Family household’s consumers believe that family health is important and bring them to purchase more on organic food. As a result, organic foods are large market opportunities to family type consumers in the marketplace. Thus, this research reflect a better understand on family type consumer purchase intention towards organic foods.

Therefore, many researchers were done on factors influencing purchase intention and consumer behavior on organic food. However, there are still less and far of research on understanding consumer perception and knowledge on organic food in different categories of adopters.

Chapter 2 – Literature Review

2.0 Introduction of literature review

In this review of literature, the history of the organic food industry will be quested in an effort to establish a basic pertinent to the subsequent information. The size and scope of the industry will also be discussed because of its dynamic nature.

Previous studies that looked into consumers’ perceptions and attitudes towards organic food will then be examined. Next, studies is analyze & identify Ipoh peoples knowledge about organic foods , how to transfer health information to them consumers’ knowledge of the organic industry, its terminology and requirements will be included, factors influence consumer purchase intention towards organic foods And finally, this review will include what strategic can influences and motivates consumers to buy organic foods.

2.1 THE HISTORY AND SIZE OF THE ORGANIC FOOD INDUSTRY

2.1.1 History of the organic food Industry

Over the last ten years, consumer worries over health, standard of foods, and the environment have led to great grow rate and demand in the organic foods industry (Stevens-Garmon, Huang, & Lin, 2007). This increase in demand led to the generate of the Organic Foods Production Act of 1990 that mandated the United States Department of Food and Agriculture (USDA) to create national organic standards.

On October 21, 2002, the USDA created the National Organic Program (NOP) that set these national standards and must follow regulate the nation’s organic products. Generally mean, the standards set the processing, labeling, and standard certifications requirements. The organic standards were constituted to build confidence in American and Asian country organic foods and stimulate growth in the industry (Oberholtzer, Dimitri, & Greene, 2005). Organic foods normally are garnering a higher price in the marketplace, which is one reason why ranchers and farmers might contemplate organic production. Organic grains held fairly high premiums in 2009. Organic foods sold for 59 percent more than conventionally normal foods

Organic vegetable sold for 177 percent more and organic fruit sold for 41 percent more than their conventionally produced non-organic foods (Dimitri & Greene, 2002). However, some studies have found that organic systems of production may yield higher gain even without price premiums. This could probably be due to lower input costs and the temporary higher yields in dry periods as compared to conventional farming. (Welsh, 1999).

2.1.2 Organic food Industry Overview

Organic food sales increased 500 percent between 1996 and 2000 (Dimitri & Greene,

2002). in 2005, organic food sales totaled 13.8 billion dollars, or 2.5 percent of the retail food market (OTA, 2006). Organic food is also becoming more affordable and acceptable to the average consumer.

Organic products were once only available at a small number of retail stores, but can now be found in a many places, such as farmers markets, natural food stores, wet market, night market and conventional supermarkets. In 2001, for the first time, about (3.9 billion) dollar of the organic food sales information came from conventional supermarkets, instead of natural food stores and farmers markets (Dimitri & Greene, 2002).

Besides that, in 2002, organic products were available in 73 percent of all conventional grocery stores (Food Marketing Institute, 2003). The top-selling organic food category is fresh produce, followed by non-dairy beverages, grains and breads, packaged foods, and dairy products (Dimitri & Greene, 2003).

In an effort to meet the growing demand for organic food, the agriculture land develops for organic food production has also increased. According to the USDA, certified organic agriculture land keep on increasing quickly from 650,000 to 1.3 million acres (Dimitri & Greene, 2003). Organic rangeland and pasture is also increasing to meet the market’s demands for organic meat products.

In 2008, there was 4.0 million acres of organic rangeland and pasture, which constituted about

0.5 percent of the total U.S. range and pastureland. Across the country, overall certified organic farmland has also increased and for the first time in 2010, all 50 states reported some certified organic land (Economic Research Service, 2011).New organic products are also being introduced rapidly into the market. For example, in the first half of 2000, over 800 new organic products were introduced. In current year, the majorities of the new products were desserts and food packing tin and were beverages (Myers & Rorie, 2011)

2.2Consumer buying behavior, expectation and acceptance on organic food

2.2.1 Attitudes/Perceptions

This study of the purpose appraised attitudes and beliefs towards organic fruit and vegetable consumption, the most consumed organic food category, and found that survey respondents tended to have positive attitudes towards eating organic fruits and vegetables (Saba & Messina, 2010).

Research has found that organic produce is thinking by consumers to be less damaging to the environment and healthier than conventionally grown food (Schifferstein & Ophuis, 2009). Other research has indicated that organic food consumption is partly related to a decrease in confidence in conventionally grown products and an overall increase in concern for health (Alvensleben, 2011).

2.2.2 Health Concerns

In this study highlighted that consumers are most concerned with their health and found that this is the main of the reason for organic food consumption, all the country now a lot of people compliant about the foods are unhealthy and scare poison foods, furthermore many people obesity, sick and get a cancer of stomach based on their eating a lot of chemical foods and other factor, especially fast foods restaurant.

Currently many educated people they will consideration and care their eating type of the foods, like now the organic foods are keep on increase demand in Asian country and the euro country. They believe organic foods can be bring for them a healthy life and reduce avoid sickness cases.

2.2.3 Risk Concerns

Research has shown that consumers perceive relatively high risk associated with eating and producing conventionally grown food because of the long-term and unknown health effects that they associate with them (Williams & Hammitt, 2011).

The same study also indicated that over a lot of respondents thought that a way to reduce pesticide residue risk is by consuming organically grown produce instead of conventionally grown food. Approximately educated people of respondents thought that by consuming organic food there would be a risk reduction due to natural toxins and microbial pathogens (Williams & Hammitt, 2011).

Another study also pointed out that in 2012, most consumers associated organic products with health at different levels. The same study also concluded that even if organic products are more expensive and harder to find, that most consumers view them positively and they willing to pay. (Zanoli & Naspetti, 2012).

2.3 CONSUMER INFLUENCES ON BUYING DECISIONS OF ORGANIC FOOD

2.3.1 The Impact of Consumer Knowledge and Attitude

It is also important to connect consumers’ perceptions and knowledge to buying decisions and locate any other buying influences that are driving consumers spending habits. A study (Yiridoe, Bonti-Ankomah, & Martin, 2005) found that although there is some knowledge about organic food and consumers typically understand the broad issues of organic food, they may tend to not understand the complexities of the organic industry or production practices (Yiridoe, Bonti-Ankomah, & Martin, 2005).

However, consumers do desire to know more about the industry and find out why it is technically different from conventionally produced food (Zanoli & Naspetti, 2002). This uncertainty about the true attributes of the organic farming practices, skepticism about organic labels and product misrepresentation has been found to be holding some consumers back from purchasing organic food (Yiridoe, Bonti-Ankomah, & Martin, 2005).

2.4 CONSUMER’S KNOWLEDGE OF ORGANIC INDUSTRYS AND UNDERSTANDING OF ORGANIC FOODS.

2.4.1 Organic of understanding

For the purposes of this study, it is necessary to investigate consumers’ knowledge of the organic foods industry by assessing their knowledge of the terms and regulations associated with organic food products. Confusion over organic and natural terms may have been inadvertently caused by different labeling techniques used by producers, such as "natural," "all natural," "hormone free," and "antibiotic free".

In terms of meat, the average consumer may not perceive a clear difference between the terms "organic" pork and "natural" pork. And in the case of beef, consumers associate no antibiotics and no hormones with the natural label (Diel & Associates, 2011). But the average consumer may also do not know that the USDA Food and Safety Inspection service does not even allow growth hormones in pork or poultry production for consumption (Economic Research Service, 2006). Pork labels can write "no hormones added" but must be followed by a disclaimer stating that federal regulation prohibits the use of hormones.

In an article published in the New York Times (2011), the issue of consumer confusion is summed up by stating, "Probably the most confusing and fungible word in all of food labeling is the term "natural." Fungible is used here to mean interchangeable with other words that may seem synonymous to the term "natural." Additionally, the article describes that when applied to meat, "natural" can mean many things, or almost nothing.

This simple statement shows that the consumers are confused about the true meanings of the terms associated with organic foods. Despite this confusion; organic labels do have strict guidelines, and must be certified to participate and pass inspections to qualify (Warner, 2006).

2.4.2 Malaysia Organic Certification Standard

This is standard MS 1529: 2001was developed by the Working Group on Organic Foods which comprises representatives from the Department of Agriculture (DOA), Ministry of Health, Malaysian Palm Oil Board MPOB), Malaysian Palm Oil Association (MPOA), Malaysian Agricultural Research and Development Institute (MARDI), Centre for Environment Technology and Development Malaysia (CETDEM), a few organic product producers and SIRIM Berhad.C:\Users\PC 101\Desktop\Organik Malaysia.jpg

This standard has been prepared to given a coordination approach to the requirements, which relate to the production of, and the labeling and claims for, organically produced foods. It sets out the principles of organic production at farms, preparation, storage, transport, labeling and marketing stages. This standard also provides an indication of accepted permitted inputs for soil fertilizing and status, pest and disease control and, food additives and processing aids.

2.4.3 Public Information Sources

In order to explore the confusion among consumers, the source that consumers are getting their information about organic products should be analyzed. Less than two percent of Americans are directly involved with production agriculture, therefore the general public has little or no knowledge of agricultural practices and food processing (Meyers & Chodil, 2011).

The general public is more familiarity with and influence to the information given by the media and advertising news, which are also not agricultural experts and focus more on reporting controversial messages (Zimbelman, Wilson, Bennett, & Curtis, 1995). The media have been found to be the most believed source for consumers to get information on food risk-related issues (Frewer, Howard, Hedderly, & Shepherd, 2011).

The media demonstrably plays a large role in communicating the food label standards. Labels size are really too small for include all of the information about the extensive label standards, regulations and policies, so it is partly the duty of the media to transfer the healthy messages of what the label means. However, it is known that the media do not often use reputable sources when reporting food issues.

Scientific or government regulators are seldom cited for information in stories because the journalists are focusing on controversy and what is going to attract viewers. Many times the media will get sources stating opinion about organic production instead of using truly and reality sources (Meyers & Chodil, 2011). Meyers and Chodil (2011) also found that the media, in normal, seems to favor organic food and its ideology. Yet, by not producing balanced and objective coverage of agricultural topics with scientific evidence or alternate views, they are only imperishable their favored ideology instead of providing the reality information that consumers can use to make and judge their own decisions (Meyers & Chodil, 2011).

The media, in this study, also chose to leave out that the supposed health risks of conventionally produced food are not fact and neither are they supposed health benefits associated with organically produced food (Meyers & Chodil,2011).

However, organic food production proponents make undocumented claims illustrate, Organic products grown in healthier soil contain higher levels of nutrients, and many taste better than their conventional counterparts. Organic fruits and vegetables test at minimal or zero agriculture chemical levels and, with the passage of the USDA organic standards, consumers can now be assured producers follow earth-friendly cultivation and grazing practices (Organic Consumers Association, 2011).

Whether or not organic food is more nutritious or tastes better than non- organic foods is still up for dispute and need to moreover to research.

2.5 Examine/review consumer perception between organic foods and non organic foods

2.5.1 Organic Food Products Vs Conventional Food Products

Although the attributes associated with organic foods may be difficult to identify by visual inspection, consumers purchase organic products because they believe these products have unique and superior attributes compared to conventionally grown alternatives (Vindigni et. al, 2002). Interest in consuming organic products may relate to food safety concerns where organic products may be a partial answer to recent food scares associated with production and handling example, dioxins, Salmonella, high level of chemical residual and etc. (Padel and Foster, 2005). Food safety issues have driven consumers to search for safer foods whose qualities and attributes are guaranteed (Lockie et al., 2004).

Organic products have value if they are perceived as potentially free of some of the underlying factors leading to food safety concerns. No materialistic values such as environmentally friendly, quality of life, self-satisfaction, support to small farmers, animal rights, etc., all potentially contribute to the value placed on organic foods (Magnusson et al., 2001). Several studies has been conducted and discovered that factors such as; consumers perceive organic as a healthier choice with more nutrient contents rather than conventional foods (Lea and Worsley, 2005) personal well being (Williams and Hammit, 2001), tastier than conventional food products (Baker et al., 2004; Fotopoulos et al., 2003).

According to Worcester,(2000), the trend towards increased consumption of organic food can be linked to a broader concern about environmental issues as well as ethical and moral reasons. These benefits and the values of organic foods make the consumers to pay more for this category of food products. Canavari et al., (2003) mentioned that the proposed premium price for organic peaches and apples was accepted by many respondents of their research on willingness to pay for organic produces. On the other hand, Gil et al., (2000) concluded that so of the respondents organic consumers are willing to pay a premium of 15-25 percent for organic food. Yet actual and potential consumers are willing to pay more for the organic food products.

According to Mohd Rizaimy et al. (2010), price is not a main factor as long as the organic food can deliver more nutritional value as compared to the ordinary food in the market. In addition health consciousness of the consumers is one of the main factors to influence their purchasing intention towards organic food products. While dardak et al. (2009) found that the Chinese and female are the likely target group for organically produce fresh organic foods. Give the importance of increasing organic food consumption and demand to new affluence society in Malaysia has created the interest in studying organically grown organic foods purchasing behavior of Malaysian consumers.

2.6 STRATEGY ARE SUITABLE TO PROMOTE DEMAND AND THE SUPPLY OF ORGANIC FOOD

Marketing Mix (4As)

In normally, marketers are adopting common marketing mix strategy (4Ps – Product, Price, Place and Promotion) to identify their marketing strategy in order to growing the market share and demand (Ehmke, Dobbins, Gray, Boehlje and Miller, 2004 as in Nezakati, et al., 2011).

Though, this marketing mix theory was not affective and suitable to apply in the marketing strategy. Therefore, in this research looks on new strategy of marketing mix, which is 4As: accessibility, acceptability, affordability and awareness in order to identify and examine the relationship business opportunity and consumers’ purchase intention towards organic foods.

2.6.1 Acceptability

Rajagopal (2005) justified that consumer value is an instrument to scale the long-term satisfaction and continuing turn up trend to purchase the product or services as well as he identify the consumer value can be measure on the viewed of product efficiency from consumer perspective for instance relative to output (quality, reliability, value) that consumer receive from a product relative to inputs which is price and cost that consumer have to spend.

Consumer value is assist marketers or organizations to examine the opportunities that consumer to become a reiterate customer providing on-going business. Thus, organization analyze consumer value seek to enhance a target market, study product performance and to advertise the product more successfully. By using diffusion of innovation theory as a method to examines customer value in organic food.

From previous investigate implies that product acceptability have strong positive relationship with attitude towards behavior and social norms in five categories of adopters. Consumer value assists marketers to discover the elements on acceptability in order to create good attitude towards behaviors and stimulate consumer to purchase organic food. In addition, subjective norms consider as an element that influence level of acceptability in five segments of adopters due to individual intention to buy organic food will influences by other consumer’s perception or opinion on certain product features.

Hypothesis 1: There is relationship between acceptability of organic food and consumer purchase intention.

2.6.2 Affordability

There is a simple economic theoretical is defined about the supply and demand suggest that when the price low, consumer will use or purchase more and it is seek to create demand is increase (Casassus, Liu & Tang, 2009 as in Nezakati, et al. 2011). In university or college, there are many researches were done many researches on consumer willingness to pay for organic food (Rodriguez, Lacaze&Lupin, 2007; Griffith &Nesheim, 2008). According to M.harris (2007) as in Ahmad &Juhdi (2010) there are possibly with considerable proved to support the increasing of environmental friendliness buyer behavior is become more consumers who are willing to pay more for eco-friendly product.

Consumer attitude and perception are interrelated to consumer’s willingness to pay for organic food. In the currently market now, a lot of the consumers are consideration on the money spend on organic food’s value whether is worth or not. Beside that’s others consumer’s opinion may influence consumer willingness to purchase on organic food, especially amount they spend on due to most of customers are sensitive on money. Hence, level of affordability is a factor influence consumer intention to purchase in five group of customer.

Hypothesis 2: There is relationship between affordability of organic food and consumer purchase intention.

2.6.3 Accessibility

According to distribute the organic products to reach to each customer, distribution guide is one of main tool in marketing concept. Anderson, Chatterjee and Lakshmanan (2003) as in Nezakati, et al. (2011) justify that organizations are need to find substitute distribution tools to distribute the products and services to even the best isolated of groups. There are several studies acknowledged that lack of organic food availability in shops or in hypermarket’s store is considered as barriers to consumer obtain (Beardworth et.al., 2002; Davies, 1995; as in Ahmad &Juhdi, 2010). Even the customers have intention to purchase the organic food, but they cannot obtain the organic foods products in daily life.

According to research, the attitude towards the consumer behavior is referring to the buyer positive or negative perception about the specific organic product. Not only this, perceived behavioral control where the consumer’s perception whether behavior performance leisure of difficult to obtain. The interaction between the five groups of customers with positive perception on product, high product accessibility or availability and without difficulty to obtain may determine to create high level of positive attitude towards purchase behavior which is becoming a result in huge intention to purchase eco-friendliness foods.

Hypothesis 3: There is relationship between availability of organic food and consumer purchase intention

2.6.4 Awareness

The idea of awareness is knowledge. In term on marketing concept, awareness refers to consumer knowledge where purchaser’s consciousness of decided product and company, allows the consumers to obtain the greatest form what they purchase (Thomas, 2011). According to Kumar and Ali (2011) stated that awareness and knowledge has turn into a significant factor in consumer attitude and behavior towards buying organic foods.

Consumers have many choices to choose what they need based on what they know and understand on the specific product whether safety or not. Raab and Grobe (2005) conclude their research and stated to maintain good quality organic foods can emphasize consumer mind set turn into good view by supported with marketing campaigns in order to counter consumers with negative perceptions such as high price of organic food. Besides that, several researchers discovered that product information is main factor where consumers have clear information about the products or services, shop location and produce place a discussion with customers and answer to requests from consumer towards market information (Feick and Price 1987, as in Ahmad &Juhdi, 2010). Consequently, company need to make sure the minded consumers understand and clearly the messages in the right way through the best way communication delivered to the consumers.

Hypothesis 4: There is relationship between availability of organic food and consumer purchase intention

2.6.5 Consumer Innovativeness

According to Hirschman (1980) as in Dobre, Dragomir&Preda (2009) stated innovativeness is crucial concept to consumer behavior, when consumers adopt new ideas, goods or services play an important role of the concepts on relating to communication and preferences, brand loyalty, decision making. Hui, et al. (2004) stated the innovativeness is influenced by personality construct whether more or less level since all consumers are using a new product at a same time. Goldsmith (2001) as in Goldsmith and Flynn (2003) describes the consumer innovativeness is a consumer who are educated, slightly price insensitive and might be heavy consumers as well as willing to buy and learn about creative new product.

Innovativeness is a different group of adopters that refer to responses to the novel products. While, Clark and Watson (1995) as in Goldsmith, et al (2003) stated innovativeness can indicate at different levels of abstraction or breadth and generality or specificity. Therefore, Goldsmith, et al (2003) said the common innovation element is contained within theories of personal traits where depictive broad feedback to the environment.

As an outcome, Goldsmith, et al (2003) and several researchers discovered that there is a linkage between consumer innovativeness and consumer behavior and purchase intention. Consequently, innovativeness is associated research’s resolution which is consumer’s attitudes and consumption acts based on the social norms in five groups of consumers.

Hypothesis 5: There is relationship between consumer innovativeness of organic food and consumer purchase intention.

2.7 Summary

To conclude, the organic foods sector is expanding and growing stably and many efforts have been made to research this phenomenon. Consumer perceptions, attitudes and demand towards organic food were found to be overall positive increasing and the perceptions seem to have an impact on buying habits.

Although the general public may be confused about some organic labeling practices, requirements and practices and this may be partially due to media and advertise news influences, they do desire to be more informed. It has also been found that a concern for health and beauty is a key factor in consumers’ decisions to purchase organic food. However in this research was found out the business opportunity and demand of organic food due to all the figure data in past twenty year until now keep on increasing.

Chapter 3 Methodology

3.1 Introduction

Last chapter learned about the review conducted by other researchers. In this chapter, this study will describe the processes and methods used to guide this research. It will be looking into the research framework, sampling procedures, sources of research data as well as statistical tests. The process of the research begins with the development of the research framework.

After this, the research procedures normally state the procedures that have been gone through to collect the data until the conclusion of the research. Sources of research data and sampling also will be discussed.

The development of research instrument respondents is where the primary sources are section into few sections. Respondents are asked to rate the questionnaire on a five-point scale, ranging from 1(strongly disagree) to 5(strongly agree).

Secondly, the secondary data are archived from the related internet and article which are chosen specifically. These internet and articles are strongly related to support our research topic. Data Analysis and Measurement are then done to test the quality of data, testing the hypotheses developed for the research and make the conclusion for the research.

3.2 Research Design

Normally, research design is a framework or roadmap for conducting marketing research project. It shows the important step and produces to get the information needed in order to settle the research problem. A good research design confirm that the information collected will be relevant a useful. It also helps and improves the effectiveness and efficiency in the research being conducted. In this part, we will be talking about the definition for both dependent and independent variables. Besides that, illusion of conceptual framework will be show.

3.3 Development of research framework

The research framework shows the relationship of independent variables and dependent variables .The independent variables are health conscious, level of product knowledge, quality of food, labeling and certification, consumers' behavior, environmental attitudes, animal welfare and social demographic.

3.4 Sources of data

For this research, there are two ways to get the data which is primary and secondary sources. Normaly, primary data is information received firsthand by the researcher for the specified purpose for doing the research problem. This method that has been used to examine is survey based. Primary data will be get it by distribute the questionnaires for the target sample. Few studies conducted by other researcher also used survey based in order to solve their research problem. There are few ways to collect primary data such like survey method, interview method and observation method. Survey method will be used in this research.

The secondary data is data collected by others researchers who also have interest doing on this kind of topic. These data can be collected prompt and cheaper. Secondary data will be obtained by the literature review of the journals, book, newspaper, magazine and more. In this research, most of the secondary data are collected through journal and internet source. The sources of these journals are obtained through internet and newspapers. Furthermore, part of the information collected through government publications, analyses offered by the media, websites and internet.

3.5 Data Collection

The aim of the research is to examine the determinants that affect consumer buying behavior, expectation and acceptance on organic food. The primary data will be collected through distribute the questionnaires to target sample. Questionnaire is a common method and the simple questions all type of people also can answer it.

Questionnaire form will be distributed to 100 more organic consumers in order to found out demographic profile of consumers and the view of the respondents. In this research, questionnaire will be distributed to the consumers in Ipoh area Jusco organic foods shop lot, who had purchase the organic food. The main reason of choosing Ipoh area Jusco is because the high number of organic shop located at Ipoh area. Moreover, organic consumer will be targeted instead of customers since we can get the more closely data and better understand the factor of green consumers to choose organic food.

The main purpose of using questionnaire is due to the potential of collect data from large pool of respondents and responses are received in standardized way. Another, this method is inexpensive and require less effort if compared. Not like the telephone interview which enquires high cost and respondents can simply hanging up the phone. The result obtained from the survey can help in measurement customers' buying behavior, expectation and acceptance on organic food.

3.6 Sampling Technique

In order to get all data and make this research more meaningful to decision maker, the target sample of this research will be existing organic consumers instead of potential customers. The sampling size for this study is 100 more consumers who have purchase organic food. This is due to the information provided will be more precision and accurate. There are two type of sampling technique which is non probability sampling and probability sampling.

In this research, non probability sampling will be used because it is more convenience for research. Researcher will choose the element in the sample base on own decision and judgment. The advantage of using non probability sampling is due to it become less cost, convenience and no waste time. The important non probability sampling techniques are convenience sampling, judgmental sampling, quota sampling and snowball sampling.

For easy to easy manage for this type of characteristic sample, quota sampling will be suitable used in this study. Quota sampling included of two stages; 1st stage is to develop control categories of population elements. For example only organic consumers will be chosen as an element for the sample. Then will select the elements base on own judgment during the second stage. Researcher has to make sure that the factor or element selected must meet the requirement.

3.7 Questionnaire Design

Questionnaire design is a significant part to make sure internally consistent and coherent data for analysis. The questionnaire must be directly for make sure that the respondents are able to answer it and researcher should minimize the fatigue and boredom questionnaire. The purpose of the clear and simple of the questionnaire is to confirm the data collected is the best from respondents.

The primary language for the questionnaire is English because the aim sample for this study is public from diverse races. In normally, the questionnaire will be separate into three parts. The 1st part will be focus on consumers' demographic profile such as age, income, level of education and etc. The purpose of second part is to investigate the preference and the perceptional of customers in time to purchase the organic food. The third part focus on the independent variables consist of health conscious, level of product knowledge, quality of product, labeling and certification, consumers' Behavior. The question regarding dependent variable will be asked in this part as well. Consumers' willingness to pay will be the dependent variable for this study.

This questionnaire will be distributed at the organic shops located in Ipoh area Jusco in order to understand the consumers' willingness to pay for organic food. Respondents are asked to rate the questionnaire on a five-point scale, ranging from 1(highly agree) to 5(highly disagree). An experiment study will be conducted before the questionnaires distribute to target sample for enhance the efficiency of the survey and quality of the questionnaire design.

Pilot study can help researcher to ensure the questionnaire is good design and reduce the problem or difficulty when the respondents answering the question. Feedback or responder get from pilot study is critical for researcher to correct the error promptly. Besides that, this action can ensure that the questionnaire has minimum error in order to avoid bias during the actual study.

3.8 Measurement

Likert Scale will be using in the questionnaire. Likert scale is using for measurement scale which included of five response categories (1= highly agree, 2= agree, 3= neutral, 4=disagree, 5= highly disagree) with the closed questions. Likert scale used for the indicate respondents satisfaction level. This kind of measurement scale can brings easily to both respondents and researcher.

It is convenient for researcher to management and respondent can understand it easily (Malhotra, 2009). This scaling and measurement is one of the method commonly used by researcher. For example, "teenager' attitudes towards organic food: a survey of 16-18 old school children" by Stobbelaar, (2006), "Consumer consumption and perception of organic products in England" by Radman, (2005).

3.9 Unit of Analysis

This research will be centered on consumers rather than store retailers or potential customers because organic consumer is the individual who buy and consume the organic foods. The result will show out the fact of why consumers will purchase organic food. Regarding to Zeng and WeiXia (2005), consumer purchase Behavior is very important to be a sign of their willingness to pay and their experiences can influence their willingness to pay in future. On the other hand, the result and outcome of this study may not valuable for marketers and it may not glass accurate opinion of the consumers.

3.10 Target Respondent, Sample Size and Study area

An all of the 100 more set survey forms will be distributed to organic food consumers who have purchase any organic food in organic shops located at Ipoh area Jusco, Perak. The central reason of choosing them is due to they had did their purchase and they give aspire respond to the questionnaires. Anyway, potential customers are not being chosen since they may only have the intention to purchase but not take the action. Therefore, their respond towards the questionnaire may not as precise as existing consumers. The study area of this research is located at Ipoh area Jusco, Perak since the economy status in Ipoh is favorable and there are many organic shops starting opened in that area.

3.11 Data Preparation

Data preparation is crucial in order to ensure the quality of the finding. On the other word, this part is to avoid the mistake, biased finding and others result will affect final result. The initial step of data preparation is questionnaire checking which include the completeness and quality. Question contrast with the sampling techniques should be correct immediately. After problems have been identified, editing of the questionnaires should be taken to make sure the accuracy and quality of result. Some of the questions may illegible, inconsistent and etc. Next, data must be coding and transcribing. Data cleaning incur checking the consistency and treatment of missing responses. This step will be more extensive since it done by computer. Lastly, data analysis strategy will be selected.

3.12 Data Analysis

After a pool of data has been conducted from representative sample of the population, the data will analyze by using SPSS (The Statistical Packages for Social Science) and Microsoft Excel to complete the purpose of this study and hypothesis also will be examined. In normally, there are three type of data analysis strategy, which is Bivariate analysis, univariate analysis and Multivariate analysis.

Univariate analysis implement when researcher analysis data on a single variable at a time or when there is a single measurement of each element in the sample. Then, when there are a number of measurements for each element, variable will be analyzed will separately. One of the methods of this Univariate analysis strategy is frequency test.

Frequency test is used to get a count of the number of responses relevance with different values of one variable. On the other word, frequency test is applied when there is only one variable is considered at a time and test all the Likert scale question in order to know the mean and standard deviation. Pie chart and bar chart also will be used to present the outcome.

In counter, Bivariate analysis the relationship between a single independent metric variable and a single dependent metric variable. It is a useful and flexible method to analysis the related relationship. For example, when analysis the relationship between race and willingness to pay and the relationship between gander and willingness to pay.

All the analysis will be using Microsoft Excel and the SPSS for do the analysis statistic method for make sure the data are efficient and accurate. Some of the analysis will show off the bar chat for present it and the pie chat show out the clearly data ensure easily understand and convenient read it.

Some more Microsoft Excel also using to recording all the surveys data and generate consumers reason why they are purchase organic food and why they would not intend to buy. Beside that it also using for hypothesis examined data analysis.