System of Factors in Consumer Choice of Organic Products
|
Аннотация
Introduction 6
CHAPTER 1. CONSUMER DECISION MAKING WITH REGARD TO ORGANIC PRODUCTS. 8
1.1 Factors affecting organic products purchase decisions 8
1.2 COVID-19 pandemic as a situational factor, affecting consumers 18
1.3 Organic products market of the Russian Federation: summary and trends 25
1.4 Key aspects of marketing promotion of organic products 32
1.5 Hypotheses 38
CHAPTER 2. CHANGES IN CONSUMERS’ ORGANIC PRODUCT PURCHASE DECISIONS:
RESULTS OF EMPIRICAL ANALYSIS 43
2.1 Mixed Research Design 43
2.1.1 A series of focus groups: methodology and findings 44
2.1.2 Online survey method: methodology and findings 61
2.1.3 Cluster analysis: methodology and findings 73
2.2 Discussions and recommendations 90
Conclusion 97
Literature 100
Appendix 105
Appendix 1. The description of the focus-groups respondents 105
Appendix 2. Focus-group scenario 114
Appendix 3. Content analyses of the focus-groups type 1-3 116
Appendix 4. The online survey questionnaire 120
Appendix 5. Descriptive statistics of factors, which influence consumers in the process of choosing a product 124
Appendix 6. Descriptive statistics 125
Appendix 7. Criterion of homogeneity of variances 126
Appendix 8. Multiple comparisons 127
Appendix 9. Statistics (Hypothesis 4) 128
Appendix 10. Correlations (Hypothesis 4) 129
Appendix 11. Statistics (Hypothesis 7) 130
Introduction 6
CHAPTER 1. CONSUMER DECISION MAKING WITH REGARD TO ORGANIC PRODUCTS. 8
1.1 Factors affecting organic products purchase decisions 8
1.2 COVID-19 pandemic as a situational factor, affecting consumers 18
1.3 Organic products market of the Russian Federation: summary and trends 25
1.4 Key aspects of marketing promotion of organic products 32
1.5 Hypotheses 38
CHAPTER 2. CHANGES IN CONSUMERS’ ORGANIC PRODUCT PURCHASE DECISIONS:
RESULTS OF EMPIRICAL ANALYSIS 43
2.1 Mixed Research Design 43
2.1.1 A series of focus groups: methodology and findings 44
2.1.2 Online survey method: methodology and findings 61
2.1.3 Cluster analysis: methodology and findings 73
2.2 Discussions and recommendations 90
Conclusion 97
Literature 100
Appendix 105
Appendix 1. The description of the focus-groups respondents 105
Appendix 2. Focus-group scenario 114
Appendix 3. Content analyses of the focus-groups type 1-3 116
Appendix 4. The online survey questionnaire 120
Appendix 5. Descriptive statistics of factors, which influence consumers in the process of choosing a product 124
Appendix 6. Descriptive statistics 125
Appendix 7. Criterion of homogeneity of variances 126
Appendix 8. Multiple comparisons 127
Appendix 9. Statistics (Hypothesis 4) 128
Appendix 10. Correlations (Hypothesis 4) 129
Appendix 11. Statistics (Hypothesis 7) 130
Nowadays, people are more thinking about the quality of the consuming products. Organic products serve as an excellent opportunity to meet people needs. The interest in the issue of organics is emphasized by the number of studies conducted recently, which falls on Covid-19. The number of publications in Scopus on the keyword "organic product" is increasing every year. We can observe a stable number of publications for 2020 and 2021 (288 and 287, respectively). Similar indicators are available for the query "organic food". The peak falls in 2021 and amounts to 396 publications.
At the same time, the greatest interest in organic products is observed in almost equal shares in chemistry (15.8%) and agriculture (15.2%), and slightly less from the point of view of environmental science (9.8%).
The main question is how consumer behavior changes during such situational factors as Covid-19. That’s why, we set the goal studying consumer preferences in the field of organic products to determine the system of influencing factors.
The object:
Consumer preferences regarding the choice of organic products on the Russian market.
The subject:
The structure of preferences and factors of choosing organic products.
The goal of the study is to develop the system of factors influencing consumer preferences regarding the choice of organic products on the Russian market
To achieve this goal, it is necessary to solve the following objectives:
1. To identify the key factors of consumer behavior in the market of organic products including identifying changes under the influence of the pandemic.
2. To study and systematize the key aspects of marketing promotion of organic products and their impact on consumer behavior.
3. To provide statistical support for hypotheses about the growth of the organic market and the increased demand for these products and to develop a research design for further interpretation of preferences and factors of choosing organic products by consumers.
4. To conduct mix research: qualitative research through a series of 3 focus groups and quantitative study through an online survey (at least 300-person sample).
5. To conduct additional research of consumer preferences and to create clusters to personalize promotion recommendations.
The first chapter presents a study of the scientific literature in the field of organic products in order to identify the factors that influence the choice of organic products. The study of the first chapter is aimed at identifying and systematizing the factors of choosing organic products, and it underlies the analysis of Chapter 2.
The second chapter contains the results of a focus group and a survey of respondents, presents the results of qualitative and quantitative research, conclusions, and answers to questions about the factors of choice. Moreover, chapter contains a cluster analysis based on the responses of respondents. It is also the basis for recommendations.
At the same time, the greatest interest in organic products is observed in almost equal shares in chemistry (15.8%) and agriculture (15.2%), and slightly less from the point of view of environmental science (9.8%).
The main question is how consumer behavior changes during such situational factors as Covid-19. That’s why, we set the goal studying consumer preferences in the field of organic products to determine the system of influencing factors.
The object:
Consumer preferences regarding the choice of organic products on the Russian market.
The subject:
The structure of preferences and factors of choosing organic products.
The goal of the study is to develop the system of factors influencing consumer preferences regarding the choice of organic products on the Russian market
To achieve this goal, it is necessary to solve the following objectives:
1. To identify the key factors of consumer behavior in the market of organic products including identifying changes under the influence of the pandemic.
2. To study and systematize the key aspects of marketing promotion of organic products and their impact on consumer behavior.
3. To provide statistical support for hypotheses about the growth of the organic market and the increased demand for these products and to develop a research design for further interpretation of preferences and factors of choosing organic products by consumers.
4. To conduct mix research: qualitative research through a series of 3 focus groups and quantitative study through an online survey (at least 300-person sample).
5. To conduct additional research of consumer preferences and to create clusters to personalize promotion recommendations.
The first chapter presents a study of the scientific literature in the field of organic products in order to identify the factors that influence the choice of organic products. The study of the first chapter is aimed at identifying and systematizing the factors of choosing organic products, and it underlies the analysis of Chapter 2.
The second chapter contains the results of a focus group and a survey of respondents, presents the results of qualitative and quantitative research, conclusions, and answers to questions about the factors of choice. Moreover, chapter contains a cluster analysis based on the responses of respondents. It is also the basis for recommendations.
The paper considers the system of factors for choosing organic products. Below we put the main conclusions of the research:
• Information accessibility. The coronavirus has had a significant impact on the choice of organic products. Although we attributed it to situational factors, food consumption has changed over this period. It is worth noting that the pandemic contributed to the change of habitual behavior of people. In our case, the fact of changes in spending free time is interesting: during the pandemic, people have become accustomed to reading more information about organic products on the Internet in various blogs and on manufacturers' websites, and therefore it is worth paying attention to the preparation of information materials to increase consumer loyalty. The creation of a consumer information system, not only covering the key aspects of the production and sale of organic products, but also understandable for the "ordinary" consumer may well be seen as an essential step in the development of the Russian market of organic products.
• Reviews. It is impossible not to mention the importance of reviews when choosing organic products. This factor is not so highly studied in the works reviewed, however, we found out that it plays almost a key role in choosing a product. At the same time, both reviews of the product and the manufacturer's company are important. This factor should also be taken into account when forming a strategy for promoting organic products.
• Insincerity. The main mistake brands make when planning eco-campaigns is insincerity. In an attempt to earn "social approval points," brands can launch initiatives they don't believe in and campaigns whose values they don't share. Marketing everywhere is becoming more honest and transparent - this is a forced measure in the digital age. And in the organic category, transparency and openness are especially important.
• The pandemic has contributed to the consumption of organic products. Most respondents admitted that they started consuming organic products during the pandemic. At the same time, respondents began to actively engage in sports and devote more time to it.
• 1.0. Hard, medium and soft factors. The various studies reviewed in the literature review allowed us to identify the key factors of consumer behavior, which we grouped into hard factors (health benefits, environmental impact, animal welfare, production practices, nutritional value, availability, absence of GMOs and price), medium factors (safety, quality, appearance, origin, certification warranty (EU logo) and expectation of better taste) and soft factors (freshness and more natural appearance). In a qualitative study, it is important to check already existing factors, as well as supplement the study with new factors.
• 2.0. Hard, medium and soft factors. As a result of qualitative research, a new classification of factors was formulated: hard middle and soft, Table 12.
• Hypotheses and RQ. During the qualitative and quantitative analysis, 18 questions and were put forward, which were discussed in detail in Chapter 2.
• In the quantitative study, only hard factors were considered and based on these factors, 4 clusters of consumers (connoisseurs’ group, organic activists, online pedants, offline pedants) with characteristic features were formed. Also, we gave some recommendations for each cluster.
Thus, the paper conducted a critical analysis of the scientific literature, which allowed us to identify trends, patterns and factors of choice of organic products, which formed the basis of qualitative and quantitative analysis. Also, the paper presents the results of a focus group and an online survey of respondents. Cluster analysis in this paper is the basis fore the specific recommendations. We conclude that most of the hypotheses from the literature analysis are confirmed: about the impact of the price, about the impact of the pandemic, about the presence of various factors. We have confirmed the value - motive of buying organic products: they belong to healthy, environmentally friendly goods. The price affects the purchase of goods, but it is not a priority. Taking care of health is a priority motive for buying products. This factor is directly related to the concept of promotion and communication of goods. Thanks to our research, new ideas were formulated:
• was identified the relationship between the frequency of purchases of organic products and the ability to buy online. As a result, it turned out to develop the equation frequency of purchases (per month) = 16 times-1.3 times * the number of online orders;
• was identified the dependence that the greater the age of the consumer, the greater his receipt, the number of orders and the frequency of purchases of organic products;
• was carried out in accordance with the gender of the respondents. Both genders have the most popular categories: food products, cosmetics and beverage. The next most popular products for men are alcohol, clothing and vitamins. Among women, the following products: household chemicals, children's products and vitamins;
• was identified a group of hard factors that most influence consumer choice. Among them: health benefits, environmental impact, animal welfare, production practices, nutritional value, absence of GMOS, safety, quality, certification warranty (EO logo), expectation of better taste, self-belonging to organic, freshness and accessibility in stores;
• the majority of respondents buy organic products in regular stores, in second place among respondents are specialty stores, followed by marketplaces such as OZON, Wildberries and Lamoda. Specialized online stores are only in 4th place among respondents.
• Information accessibility. The coronavirus has had a significant impact on the choice of organic products. Although we attributed it to situational factors, food consumption has changed over this period. It is worth noting that the pandemic contributed to the change of habitual behavior of people. In our case, the fact of changes in spending free time is interesting: during the pandemic, people have become accustomed to reading more information about organic products on the Internet in various blogs and on manufacturers' websites, and therefore it is worth paying attention to the preparation of information materials to increase consumer loyalty. The creation of a consumer information system, not only covering the key aspects of the production and sale of organic products, but also understandable for the "ordinary" consumer may well be seen as an essential step in the development of the Russian market of organic products.
• Reviews. It is impossible not to mention the importance of reviews when choosing organic products. This factor is not so highly studied in the works reviewed, however, we found out that it plays almost a key role in choosing a product. At the same time, both reviews of the product and the manufacturer's company are important. This factor should also be taken into account when forming a strategy for promoting organic products.
• Insincerity. The main mistake brands make when planning eco-campaigns is insincerity. In an attempt to earn "social approval points," brands can launch initiatives they don't believe in and campaigns whose values they don't share. Marketing everywhere is becoming more honest and transparent - this is a forced measure in the digital age. And in the organic category, transparency and openness are especially important.
• The pandemic has contributed to the consumption of organic products. Most respondents admitted that they started consuming organic products during the pandemic. At the same time, respondents began to actively engage in sports and devote more time to it.
• 1.0. Hard, medium and soft factors. The various studies reviewed in the literature review allowed us to identify the key factors of consumer behavior, which we grouped into hard factors (health benefits, environmental impact, animal welfare, production practices, nutritional value, availability, absence of GMOs and price), medium factors (safety, quality, appearance, origin, certification warranty (EU logo) and expectation of better taste) and soft factors (freshness and more natural appearance). In a qualitative study, it is important to check already existing factors, as well as supplement the study with new factors.
• 2.0. Hard, medium and soft factors. As a result of qualitative research, a new classification of factors was formulated: hard middle and soft, Table 12.
• Hypotheses and RQ. During the qualitative and quantitative analysis, 18 questions and were put forward, which were discussed in detail in Chapter 2.
• In the quantitative study, only hard factors were considered and based on these factors, 4 clusters of consumers (connoisseurs’ group, organic activists, online pedants, offline pedants) with characteristic features were formed. Also, we gave some recommendations for each cluster.
Thus, the paper conducted a critical analysis of the scientific literature, which allowed us to identify trends, patterns and factors of choice of organic products, which formed the basis of qualitative and quantitative analysis. Also, the paper presents the results of a focus group and an online survey of respondents. Cluster analysis in this paper is the basis fore the specific recommendations. We conclude that most of the hypotheses from the literature analysis are confirmed: about the impact of the price, about the impact of the pandemic, about the presence of various factors. We have confirmed the value - motive of buying organic products: they belong to healthy, environmentally friendly goods. The price affects the purchase of goods, but it is not a priority. Taking care of health is a priority motive for buying products. This factor is directly related to the concept of promotion and communication of goods. Thanks to our research, new ideas were formulated:
• was identified the relationship between the frequency of purchases of organic products and the ability to buy online. As a result, it turned out to develop the equation frequency of purchases (per month) = 16 times-1.3 times * the number of online orders;
• was identified the dependence that the greater the age of the consumer, the greater his receipt, the number of orders and the frequency of purchases of organic products;
• was carried out in accordance with the gender of the respondents. Both genders have the most popular categories: food products, cosmetics and beverage. The next most popular products for men are alcohol, clothing and vitamins. Among women, the following products: household chemicals, children's products and vitamins;
• was identified a group of hard factors that most influence consumer choice. Among them: health benefits, environmental impact, animal welfare, production practices, nutritional value, absence of GMOS, safety, quality, certification warranty (EO logo), expectation of better taste, self-belonging to organic, freshness and accessibility in stores;
• the majority of respondents buy organic products in regular stores, in second place among respondents are specialty stores, followed by marketplaces such as OZON, Wildberries and Lamoda. Specialized online stores are only in 4th place among respondents.
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