Decision making process of community organic food consumers: an exploratory study Leila Hamzaoui Essoussi Telfer School of Management, University of Ottawa, Ottawa, Canada, and Mehdi Zahaf Faculty of Business Administration, Lakehead University, Thunder Bay, Canada Abstract Purpose – Substantial changes in the organic food sector and recent studies on the Canadian organic food market are showing promising trends. However, community organic food markets are different from organic food mainstream markets. In a domain growing in theoretical and practical importance, the main objective of this paper is to develop an understanding and analysis of “community organic food market”. Design/methodology/approach – Focus groups were conducted and data collected were analyzed using content analysis. Findings – Five main themes emerged and brought contributions in terms of: organic food definition and recognition, organic food consumers’ motivations, trust with regard to organic food, labeling and certification process, organic food distribution channels, and the proposition of a conceptual model of decision making with regard to organic food consumers in small communities. Research limitations/implications – Data collection was conducted in only one small community location and should be extended to other small communities as well as urban city centers. Practical implications – This study provides some insights to managers in terms of the market mix and target marketing of organic food niche markets. Originality/value – The paper explores the difference between an organic food mainstream market and an organic food niche/community market using a consumer behaviour perspective. Keywords Consumer behaviour, Organic foods, Trust, Canada Paper type Research paper the need for deep organic consumer knowledge (Kristallis and Chryssohoidis, 2005). The traditional marketing approach and specifically consumer marketing theory are not sufficiently prepared to handle the advent of new types of consumers such as organic food (OF) consumers. These consumers are looking for more than a product, i.e. they are looking for different added values linked to the product (Baker, 2003). Moreover, the literature to date is of great interest but offers little insight into the influence of the development stage of an organic food market (and its characteristics) on the ranking of motives to buy organic food. Organic food consumers could thus be studied under two perspectives: 1 big cities where organic products are available and where trust is based mainly on consumers’ knowledge of the certification process; and 2 community setting where trust is based on the relationship between the farmer and the consumer. An executive summary for managers and executive readers can be found at the end of this article. Introduction The last two decades were driven by two major trends in the agriculture industry: 1 an increase in food-related diseases such as mad-cow disease and bird flu; and 2 an increase in the use of genetically modified food. The organic farming “industry” eliminates a number of concerns that consumers hold towards conventional food production. This industry integrates all aspect of a pesticide-fertilizer free production process using specific standards and is subject to a rigorous certification system. Moreover, this industry is one of the fastest growing areas of the food market in Europe, the USA and Australia. Many countries show growth rates of 20 to 30 percent annually (Lampkin, 1999). Levels of growth have important implications for this specific market in terms of certification procedures, the reforming of the whole supply chain and This new market reality is here carefully explored. The paper starts with a discussion of the literature surrounding the organic food consumers and the factors that affect organic food purchases. The methodology section describes the data collection and analysis procedures used. The results are then presented, followed by a discussion underlining the major findings. Last, a The current issue and full text archive of this journal is available at www.emeraldinsight.com/0736-3761.htm Journal of Consumer Marketing 25/2 (2008) 95– 104 q Emerald Group Publishing Limited [ISSN 0736-3761] [DOI 10.1108/07363760810858837] Research supported by the Regional Research Fund (Lakehead University). The authors acknowledge James Anderson for help as research assistant for data collection. 95 Decision making process of community organic food consumers Journal of Consumer Marketing Leila Hamzaoui Essoussi and Mehdi Zahaf Volume 25 · Number 2 · 2008 · 95 –104 conclusion presents the majors points and the limits of this exploratory study. environment, and tastes better than conventional food (Fotopoulos and Krystallis, 2002; Wier and Calverly, 2002; Larue et al., 2004). Conversely, the main reasons that prevent consumers from buying organic food are: too expensive, limited availability, unsatisfactory quality, satisfaction with current purchases, lack of trust, limited choice, lack of perceived value and lack of misunderstanding of organic ways of production (Fotopoulos and Krystallis, 2002; Wier and Calverly, 2002; Larue et al., 2004; Verdurme et al., 2002; Worner and Meier-Ploeger, 1999). Overall, the most important reason for purchasing and consuming organic food appears to be health concerns (Hutchins and Greenhalgh, 1997; Squires et al., 2001), whereas research conducted on consumers’ environmental concerns as a reason for consuming organic food are mixed (Kristensen and Grunert, 1991). Conceptual background Organic versus natural and environmetal Organic food products have become popular in the last few years throughout the world. In order to explore the organic market, organic first needs to be differentiated from natural. The term “organic” is rooted in “bio” from Greek “bios” meaning life or way of living while there is no clear definition and standard regarding “natural food”. Natural product consumers are somehow seen as – and not always – vegetarians or even vegans. According to Agriculture Canada, organic is seen as a “segment” of the natural food industry. Second, organic products and natural products are usually sold together. These products are commonly viewed as encouraging a healthier lifestyle described by the acronym Lifestyles of Health and Sustainability (LOHAS). Natural health and personal care are indeed focus points for both types of products. Lastly, the major focus is on the production process per se. In this regard, Green Earth Organics provides a clear definition of what an organic food product is; hence, “organic foods are minimally processed to maintain the integrity of the food without artificial ingredients, preservatives or irradiation”. Studies dealing with the concept of environmentally friendly products represent a mature research field covering different aspects of the marketing process namely, consumer behaviour, marketing mix, and marketing strategies. It is clear that organic food purchases preclude an environmental dimension. It is also interesting to shed the light on similarities and differences between green products and organic food products. The issue of psychographic and personal variables in consumer behaviour dealing with environmental or green products has been dealt with by many researchers (Balderjahn, 1988; Ellen et al., 1991; Berger and Corbin, 1992; Amyx et al., 1994). Hence, some of the variables that might shape the buying behaviour of organic food products are: . Perceived consumer effectiveness: consumers’ believe that the efforts of an individual can make a difference in the solution to environmental problems (Balderjahn, 1988; Ellen et al., 1991; Berger and Corbin, 1992). . Ecological concern: consumers’ level of ecological concern is related to their willingness to purchase green products (Amyx et al., 1994). . Locus of control: refers to a consumer’s perception about the underlying main causes of events in his/her behaviour (Schwepker and Cornwell, 1991; Shamdasani et al., 1993). . Faith in others (Berger and Corbin, 1992). Profiling organic food consumers The issue of profiling organic food consumers and determining the underlying values of their purchases is rather a mature field in Europe with a well-established literature (e.g. Makatouni, 2002; Verdurme et al., 2002, Baker et al., 2004; Zanoli and Naspetti, 2002). Several studies have indeed segmented organic food consumers on the basis of: attitudes toward organic food and purchase intentions, demographic factors, food-related lifestyles, and frequency of purchase. Based on these segmentations, scholars have profiled organic buyers to describe who they are and what their purchase intentions are (see Davis et al., 1995; Fotopoulos and Krystallis, 2002; Baker et al., 2002; Solomon et al., 1999). Several studies agreed on the sociodemographic profile of organic food buyers: they are mainly women, buying in larger quantities and more frequently then men. Although age is not an important factor, younger consumers show a higher willingness to buy due to their greater environmental concerns but cannot always afford it. Moreover, Hamzaoui and Zahaf (2006) propose not only a new definition of “organic” but also provide a general profile of what they call typical organic products consumers (TOPC). These consumers are somehow vegetarian/vegans, care about the environment, are health conscious, buy OF to support local farmers, do not trust big corporations, and are willing to pay a premium price to purchase OF products. Further, cultural differences seem to cause consumers from different countries to have different values, and most of all different means of achieving those values when making purchasing decisions. More widespread consumption of organic food over a longer period of time in some countries versus others could result in more familiarity, which can explain that German consumers provide richer hierarchical value maps (Baker et al., 2004). People everywhere possess the same values, but to different degrees. Although values are important, they have not been widely applied to direct examination of consumer behaviour vis-à-vis organic products (with the exception of studies conducted in European countries by Baker et al., 2004; Zanoli and Naspetti, 2002; Makatouni, 2002). Since values drive much of consumer behaviour, many types of consumer research are related to the identification and measurement of values. Findings from these previous researches underline the need to uncover the differing mindset of consumers in countries where organic consumption is promising and enjoying rapid growth, but is likely not driven by the same consumer values, The organic consumer Reasons for buying organic food A review of the literature on organic food consumption shows that several attempts have been made to examine consumers’ perception of organic food, factors that have facilitated or prevented the organic food choice, consumers’ attitudes, as well as reasons for purchase/non-purchase. Consumers purchase organic food mainly for the following reasons: organic food is seen as healthier, more nutritious and safer, no chemicals are used, organic farming is kinder to the 96 Decision making process of community organic food consumers Journal of Consumer Marketing Leila Hamzaoui Essoussi and Mehdi Zahaf Volume 25 · Number 2 · 2008 · 95 –104 as in Canada. Three studies conducted in European countries, i.e. Baker et al. (2004), Zanoli and Naspetti (2002), and Makatouni (2002), highlighted life values that fall into three main broad categories: values centered on the human being, on the environment, and on the well-being of animals. Although similarities emerged with respect to main values between the three studies, the dominant perceptual orientations of UK, German, and Italian organic food consumers differ widely. German consumers’ dominant perceptual orientations are centered on health and enjoyment through taste and quality, followed by belief in nature, whereas UK consumers do not show a perceptual orientation connected with nature or the environment (Baker et al., 2004). Conversely life values related to animals are the second most frequently mentioned value (Makatouni, 2002). Interestingly, regular Italian consumers show transcendental values like ecology, harmony with the universe and are interested in a sustainable future, even though health and wellbeing are their most important motivators coupled with value states like hedonism, pleasure and achievement (Zanoli and Naspetti, 2002). Last, a study conducted by Lumbers et al. (2003) showed that Greek consumers are less confident about their food supply and more fearful of pesticide residues compared to the British consumers. All these results are in accordance with Beharrell and MacFie (1991) study stating that differences in the intensity and the ranking of the main motives to buy organic products appear to be country specific. Moreover, a longitudinal study conducted by Davis et al. (1995) showed how the priority of motives to buy organic food changed over time, highlighting an increasing concern for the environment. proposes a comprehensive analysis of the organic market in this area. Objectives We aim to dig into the breaches of the actual literature and seek to develop an understanding of “community organic food markets”. Our purpose in this study is threefold: 1 To explore the drives, motives and values of community organic food consumers. 2 To analyze consumers’ point of purchase preferences in community organic food markets. 3 To understand community organic food consumer trust with regard to organic food products, organic labelling, and the companies marketing those products. The ultimate objective is to develop a model that will help to analyze these consumers’ motives for buying OF. This is based on our understanding of the link between consumers’ values and motivations and their consumption patterns. Methodology Sample The study employs a qualitative research design. A total of six focus groups were conducted in autumn 2006 in a community market in the province of Ontario. The objective was to investigate consumer’s perceptions, values and motivations with regard to OF in community organic food markets. More specifically, focus groups attempted to explore three main themes related to: 1 general knowledge with regard to OF; 2 motivations and buyer behaviour; and 3 labelling and certification. The Canadian market In Canada, the organic food industry and the farming industry are not yet as advanced as those in the USA and several European nations (MacRae et al., 2002). One of the few studies conducted on the Canadian market proposed a segmentation of OF consumers (Cunningham, 2001). They are usually defined as true naturals, new green mainstream, affluent healers, and young recyclers. Moreover, only British Columbia has undertaken market research studies to provide more insights on the market size and potentials (Macey, 2003). In the province of Ontario, according to agriculture and Agri-food Canada, there are 3,317 certified farmers totalizing 966,482 acreages in production. As far as organic food production is concerned, the leading crops in the province are vegetables, herbs, fruit and nut, grains and oilseeds, wild rice lakes, pasture, and Forages. More generally, the development stage of an organic food market is stated by Lampkin (1992) as possibly influencing the ranking of motives to buy organic food. Moreover, the market life cycle concept (Keegan, 1989) may also influence consumers’ attitudes; and finally research has shown that market characteristics like the distribution coverage, the type of outlets, the range and availability of products, the level of sales affect consumers’ attitudes toward organic food (Squires et al., 2001). Differences on these market characteristics also appear to exist within a country like Canada and lead to one main question addressed here: Are there differences in consumers’ motives priorities leading to consumption of organic food product due to market characteristics between consumers in urban city centers and in community settings? This research explores community organic food markets and These themes revolved around several issues like what is the meaning of “organic”, reasons for buying and consuming organic products, consumers main sources of information, ethical concerns and social values related to OF, perceived advantages and disadvantages of OF, willingness to pay a “premium” price, selection of organic products, ease in identifying organic products, and availability of organic products. We used a screening questionnaire for participants’ selection to ensure that all participants met the defined criteria of this research. We profiled consumers as follows: . Knowledge. Organic food knowledge is a prerequisite for participants’ selection as well as being in charge of household grocery/food purchases. . Purchase habits. Participants had to be regular, occasional or irregular. . Products. Had to consume at least two out of six named OF products in the screening questionnaire including: fruits, vegetables, meat, dairy, breads, and prepared food. Respondents were recruited from organic specialized stores, conventional grocery stores, and open markets carrying OFs. Age and gender were not criteria of selection. Most of respondents belong to the 19-35 age bracket with an even representation of males and females. Further half of the respondents are regular users, 44 percent are occasional users, and finally, 6 percent are irregular users. Basically, 94 percent of the respondents have already tried at least two organic food products. It is also important to note that all occasional consumers are students. A total of 43 percent of 97 Decision making process of community organic food consumers Journal of Consumer Marketing Leila Hamzaoui Essoussi and Mehdi Zahaf Volume 25 · Number 2 · 2008 · 95 –104 them buy – not exclusively – OF from specialty stores while 85 percent have already bought OF from superstores. Conversely all regular consumers are either buying OF from a specialty store or from local markets. What is organic? Based on our coding scheme and on the findings from focus groups, we started to define a first profile of the OF consumer. Combining consumers’ categories used in the screening process (i.e. regular, occasional, and irregular) to our findings allows us to consider two main types of consumers. We shall, from now on consider only two main categories of consumers: regular consumers (RC) and nonregular consumers (non-RC). This latter category of consumers is composed of occasional and irregular consumers. Our classification leads to an even representation of both categories. All respondents were able to define what is organic but there was a difference when they were asked to answer a question regarding characterizing what is organic. Respondents defined OFs as products that contain no fertilizer, no chemical, no pesticides, no antibiotics, no hormones, no GMO; and is not processed, not packaged, no injection/no harm for animals, natural, tasty, nutritious, colourful, fresh/stay longer, and is labour intensive. This brings a new dimension to the definition of what is organic. It also gives us a partial idea about RC and non-RC knowledge with regard to OF. To address the issue of consumers’ knowledge with regard to OF, we explored their perceptions of the difference between OF and natural food. The two concepts, i.e. organic versus natural, were described into details above in the literature review. Most non-RC think that organic is natural while most RC see a clear difference between both categories of products. Some non-RC said “organic is natural food, just a new term to create some buzz“. Moreover, consumers differentiating between natural and organic think that one of the differences is related to the fact that OF is “mass distributed” compared to natural products. It is also worth noticing that about a quarter of all respondents think that organic is a reinvention of natural; it is a buzz word, a new marketing device. In fact, “it is just so popular now, it is a profitable market. . . organic is a trend, so it is a marketable thing to put on the label of your food”. This leads us to the issue of how consumers recognize OF products. Research procedure Before commencing the focus groups, care was taken to create a relaxed environment. Each subject was assured that there are no right or wrong answers, and that the purpose of the study was to know more about their perceptions and opinions about OF. Participants also were asked to give their opinion regarding the different types of OF products available in the market and to express their concern with regard to these products. This gave an insight on how and why they adapted their food habits and changed their food choice behaviour. Sources of information and their respective reliability were also discussed, as well as the influence of media on consumers in general and on parents in particular. To conclude, participants were asked to express what they considered the most important characteristic in OF, what improvements in OF they would like to see, and finally, they where invited to share any comments or suggestions about the discussion. Analysis Sample results based were obtained by analysis of verbatim transcripts of the audio-taped interviews. Even though it is not necessary to transcribe the interviews, this does allow for more in-depth analysis of subtle themes. All focus groups were indeed recorded and transcribed to capture, with minimal bias, the perceptions, benefits and values underlying decision-making process with regard to OF. Data collected in the focus groups were analyzed using content analysis. Hence, data were organized around particular themes, on a judgmental basis, that were coded and categorized in order to facilitate their interpretation. Content analysis and coding of the data was performed according to the relevant literature (Kassarjian, 1977). Two separate judges coded the data (see Table I). Results Focus groups interviews were analyzed using content analysis. This technique, i.e. content analysis, allows the researcher to include large amounts of textual information, methodically identify its properties by detecting the more important structures of its content, and determines the frequencies of most used keywords. Hence, we started by analyzing the content of the five themes defined in Table I. Recognition of organic food Even though most respondents – RC and non-RC – described very well what organic is, they stated that it is difficult to identify OF while only a few are able to identify those products. This is clearly linked to the labelling and certification issues, and to the distribution system. A third of all respondents think that it is difficult to buy OF due to the Table I Themes classification What is organic? Recognition Motivations Trust Where to find what? Theme Definition Organic Organic/natural Sources of information Identification Why to buy Labelling/certification Control Distribution Product OF products’ most important attributes Difference between organic and natural Main sources of information Easiness of identifying OF Reasons for purchasing OF Trust issues related to labelling and certification Organizations having to control certification Main store categories where OF product are usually sold Available and preferred variety of OF 98 Decision making process of community organic food consumers Journal of Consumer Marketing Leila Hamzaoui Essoussi and Mehdi Zahaf Volume 25 · Number 2 · 2008 · 95 –104 lack of specialty stores. Moreover, RC consider that it is easy to identify OF in local markets and some specialty stores because “it comes right out of the grown”. These consumers, i.e. RC, are reluctant to buy OF from grocery stores even when they find a certified labelling because they don’t know what is behind the label organic; “. . .but you really do not know. It can say not pesticides and fertilizers, but you never know if that stuff is still in the ground when it is produced”. Once more, the organic dimension is broader that the one described in the current literature. It includes all aspects of the production and distribution processes. This influences the trust level of consumers with regard to companies selling OF in the market (see Hamzaoui and Zahaf (2006) for more details). Hence, there are two opposite behaviours. Since non-RC buy mainly their products from grocery stores, they argue that “you cannot trust an organization or corporation that says this product is organic. Unless you can go home and research what organic food is and if that product is organic.” Conversely RC argue that “it is easy to identify it, because genetically modified foods all look pretty and shiny. Where with the organic store they look different, and look dull. Also, non-organic has no tastes, because there are no nutrients”. It is then obvious that recognition signs used by RC and nonRC are different. Some consumers draw another line; they say that it is easy to recognize some products and not others. Fruits, vegetable, and food not sold in cans or not wrapped are easily recognizable. Moreover, RC and some non-RC make the difference between OF and conventional food because of shape, color, form, and taste. Finally, almost half of the respondents recognize OFs because of their higher price. important reason for buying organic because “to get the vegetables right out of the garden keeps it fresh. It is better than sitting on a truck from California for a week.” This relates to the food security argument. The next reason for buying OF is related to supporting local farmers. This element has been introduced by Hamzaoui and Zahaf (2006) in a study they conducted in Ottawa. There are two dimensions that push consumers to buy OF: 1 sustainability argument rooted in supporting local communities: “I think organic foods should be produced on a more community level with roof top gardens and such, where families can grow their food and everyone works together”, and 2 minimizing the distribution distance: “I really wish for our society to move away from corporations and industry, and support healthier and local eating”. It seems also that the organic lifestyle is based on trust between consumers and producers. Many respondents argued indeed that there should be a close relationship between farmers and consumers. Since these farmers are not profit driven then they will not mass produce. This leads us to an important dimension that OF consumers consider being crucial: trust with regard to companies and OF products in the market. Trust Consumers’ trust towards what is offered on the market is mainly expressed in the interviews through their concerns about the labels, the certification process that products have to go through, who is defining and controlling this process, and the use of standards. Label importance is highlighted by regular consumers, expressing the fact that when seeing a label (certified sticker) on a product, they consider it “a lot better” and they “feel a lot safer”. For a few RC, even if they see a certified logo, still “it depends on who certifies it” and what was the process of certification the product went through. This pinpoints the level of trust they have towards who is deciding whether a product can be considered as organic or not, and following what procedure. In terms of certification, the majority of consumers do not know the exact process farmers have to go through to get their products certified, the steps needed to make a product organic, with the exception of a couple of RC. They mentioned in detail the fact that “you cannot have fertilizer used in your soil for a number or years”, “how long farmers have been feeding cows with chemicals like 2 to 3 generations ago”, which highlights the existence of barriers to certification. Non-regular consumers were thus not able to identify and name who is defining and controlling the certification process, but recognized the need “to have laws in place to make sure it is done right”. RC generally named the government as the main certification body. Trusting the certification process is more important for consumers as they note the rapid growth of big distribution channels in the organic market, and they definitely do not trust big companies. Consumers cite with high regards the European example (and even California) for their labelling and certification processes, and regulations controlling the OF industry. Having a uniform logo on organic products is a likeable idea although about half of the consumers think it is difficult to implement at an international level, many nations having their own policies, whereas only few of them think that Motivation to buy organic food Now that we characterized the typical organic food consumers, namely regular consumers or RC, and analyzed how they recognize and identify OF, we need to explore all hidden motives that help these consumers consume OF on a regular basis. It is important to note that in other studies typical organic food consumers have a vegetarian lifestyle. In the present study, regular consumers present a different profile. They are indeed very concerned about their health. One third of all respondents ranked “health” as the main reason of buying OF. According to these consumers OF make them “feel really motivated and energetic”. Some of them argued that the value of buying OF outweighs the cost of purchasing those products. Value is traditionally discussed in marketing classes as the ratio of benefits to costs (Kotler et al., 2005). Consumers listed several benefits associated with OF, e.g. environmentally friendly, make them feel better, and very interestingly, support local farmers. Conversely, the two main costs associated with OF are their high price; and the cost of looking for those products. The listed benefits lead RC to be non-price sensitive. For them “You cannot put a price on ones health.“ Moreover some said “So it may be twice as expensive, but it is more than twice as good.” Even though environmental motives ranked fourth, around a quarter of the respondents think it is an important motive when buying OF while the same percentage of respondents argued that they do not know if OF are environmentally friendly. The “Environment” is present in respondents’ arguments and reasons under different names and forms. In fact, these respondents ranked organic gardening as an 99 Decision making process of community organic food consumers Journal of Consumer Marketing Leila Hamzaoui Essoussi and Mehdi Zahaf Volume 25 · Number 2 · 2008 · 95 –104 it should be established at the provincial level. More precisely, one of the issues here is about imported products as what is defined as being organic in one country might not be considered that way in another one, and most RC are concerned about whether those products are allowed to cross the border. This leads to discuss the next theme related to what is then the variety of organic products offered to consumers and were are they made available to them. 3 Where to find what? In terms of distribution, the overall feeling is that it is not really easy to buy organic food in small communities but “you figure it out over time”, compared to big cities where consumers can find a wider number of stores offering organic food, which is an expected result. Only few of the interviewed consumers shop just at a superstore, with the remaining majority of consumers going to specialty stores, local markets and superstores (with the exception of just one RC buying only from specialty stores). When shopping in superstores, even within the store, identifying where organic products are located (except for vegetables that are in a separate section) is not always easy and some consumers spend more or less time depending on what they are looking to buy as “products are mixed up”, whereas in cities like “Halifax and Toronto they have organic foods all in one area”. Variety of organic products doesn’t seem to be really wide and “the selection is thus limited” in comparison with other places. This might be directly linked to the RC preference to buy directly from farmers or from places they trust more than regular superstores. Finally, the availability of products seems to be a real barrier to organic consumption if we compare what they know to be available organic products compared to what they actually can find in their area. It is also worthwhile listing what consumers mention as being their favorite organic food: vegetables and fruits, meat, dairy products, bread, eggs and finally prepared food such as cereals, jam, chocolate, cookies, pastas, pasta sauce, drinks. Whereas RC mainly buy the first five product categories, non-RC do also mention some of the first ones but do also buy prepared food, which might be similar to what they used to eat before starting to make changes in their food choices. factors will shape consumers’ decision process in terms of products and stores choice. Lastly, the proposed model reflects some important elements of previous works on green products. In fact, if consumers believe they can change things, i.e. high consumer perceived effectiveness (PCE), this will strengthen their motivations to buy OF. Conversely, if consumers are not environmentally conscious, i.e, high level of faith in others (FIO), then they will buy OF for other reason like “health”. The model depicted in Figure 1 provides an outlook of the results outlined above. Basically, consumers are driven by several cues and motives to buy organic food products. These motivations are rooted in their knowledge of what organic is, and the influence of the different sources of information, i.e. internet, family, friends, books, etc. Before making any purchase decision, this information is processed and combined to another set of data related to labelling and certification, hence to trust. This leads to three main prepurchase conditionings: 1 how consumers perceive OF; 2 how they identify those products; and 3 how they differentiate OF with regard to natural products. This constitutes the basis of consumers’ trust orientations. Once this preliminary search-analyses-choice phase is finished, consumers choose not only what they are going to buy but also where they are going to buy OF. Hence, the prepurchase conditionings are translated into product/channel choice in terms of product and point of purchase preferences, labelling and certification of the product. Discussion This study provides mainly theoretical implications. It contributes to the actual body of literature by providing an in-depth understanding on how organic food consumers in small communities behave, and proposing a conceptual model of decision making with regard to OF. A discussion about what is organic, OF identification, motivation, trust, and distribution issues follows. This study reveals that the standard definition of OF has to be revisited and it should read: Conceptual model of OF decision making In order to provide an integrative understanding of the decision marking process of community OF consumers, we propose a conceptual model (see Figure 1) integrating different dimensions. Schematically, it integrates: 1 Information about organic food captured by six subthemes: source of information, identification, what is organic, motivations to buy, knowledge, and the difference between organic and natural. If consumers lack information/knowledge with regard to OF, they will not be able to: . identify those products; . know what organic is; and . differentiate between organic and natural. 2 Contextual factors (type of retailers, easiness to identify the products, etc.) moderate OF consumers’ behaviours and hence strengthen/weaken their attitudes about fostering organic purchases. This influences consumers’ trust level and hence their perceptions of the certifications process and products’ labelling. More specifically, those OF is a product that has been produced without using pesticides, fertilizers, chemicals, or GMOs. Further, compared to regular products, OF products are tastier, more nutritious, colorful, look fresh and not uniform, and lastly it is not only produced locally but also not mass produced. OFs are marketed using the shortest channel hence favoring local products over national/ international products. This helps sustaining local communities and local farmers. This is mainly rooted in consumers’ attitudes, motivations, and knowledge with regard to OF. First of all RC and non-RC have two different recognition schemes. These schemes are based on point of purchase differentiation, i.e. specialty stores versus conventional groceries stores, and product categories, i.e. non-packaged food versus canned or wrapped food. Second, issues related to knowledge clearly influence the way consumers buy. For instance, non-RC professing their willingness to buy OF may actually not do so because of price differentials and valued benefits in OF consumption. Moreover, RC argue that the value of consuming OF outweighs the cost of buying them hence taking over price sensitivity. 100 Decision making process of community organic food consumers Journal of Consumer Marketing Leila Hamzaoui Essoussi and Mehdi Zahaf Volume 25 · Number 2 · 2008 · 95 –104 Figure 1 Proposed conceptual model lead to sustainable communities. This might be even a more pronounced or noticeable tendency in smaller cities. The study also reveals that both RC and non-RC consumers consider health as the most important reason for buying OF. Having said that, there is an important sustainability consciousness argument that drives consumers’ choice. This is more specifically in line with the idea of supporting local community, which did not appear in previous studies (Roddy et al., 1994; Baker et al., 2002; Fotopoulos and Krystallis, 2002; Zanoli and Naspetti, 2002). Compared to Hamzaoui and Zahaf (2006) this study also shows clearly that the city size moderates the effect of some variables. Small communities tend to favor more their local economy and hence support local OF products. This is also explained with the low penetration rate of OF product in major superstore shelves in small communities; the OF channels structure is too short, i.e. it is a direct channel: OF marketed directly to consumers; and the low level of trust toward superstores and big companies versus farmers. Distribution, certification and labelling are all somehow linked to consumers’ confidence and level of trust when consuming OFs. Consumers emphasize the importance of certification standards, even though they still do not know to what degree the Canadian certification process is controlled, and would like to know more about it. This also explains the close and direct link between farmers and consumers at the community level. Finally, we propose a conceptual model that summarizes our findings and position our study in the current literature. We have shown that OF consumers’ decision-making process is partly based on elements pertaining to green consumer behaviour models. The model has an integrative and complex structure because it integrates consumer behaviour variables as well as macro-variables. The decision-making process of OF consumers is not only rooted in how, what and why consumers buy/don’t buy OF but also in more macroenvironmental forces such as support for local farmer which Conclusion In conclusion, given the increasing demand for organic food, analyzing and understanding the behaviour of community market OF consumers is no longer a marginal issue. This research adds new components to the definition of what an OF product is, as perceived by these consumers. Nevertheless, results indicate that consumers lack deeper knowledge with regards to OF products. Conducting in-depth interviews through focus groups led us to the major contributions of this study namely, OF consumers’ main motivations, attitudes towards the OF industry and trust with regard to OF products, labelling and certification process in community markets. The findings of our research underlines that cultural values cause consumers to give priority to different values and means of achieving those values when making the decision to buy organic food. The study also enables us to develop a deeper understanding of consumers’ motivations and attitudes that can help marketers define and adjust their positioning, distribution and communication of organic food offer which seems to differ from community markets to urban markets. One important limitation of this research is the data collection that was conducted in one location not taking into account the situation in other provinces (except an urban city in a previous study), thus highlighting the necessity to extend this research to other small communities and major urban city centers in different provinces. This study being exploratory, the results are only a spring-board for future research in an area growing in theoretical and practical importance. Deepening the understanding of organic consumers’ decision making process on one hand, and on the other hand addressing implications of the consumption food 101 Decision making process of community organic food consumers Journal of Consumer Marketing Leila Hamzaoui Essoussi and Mehdi Zahaf Volume 25 · Number 2 · 2008 · 95 –104 behaviour for the marketing practitioner and public policies should be addressed by conducting conclusive studies using quantitative approaches. communication strategy”, Journal of Marketing Communication, Vol. 8 No. 1, pp. 19-30. Balderjahn, I. (1988), “Personality variables and environmental attitudes as predictors of ecologically responsible consumption patterns”, Journal of Business Research, Vol. 17 No. 1, pp. 51-6. Beharrell, B. and MacFie, J. (1991), “Consumer attitudes to organic foods”, British Food Journal, Vol. 93 No. 2, pp. 25-30. Berger, I. and Corbin, R. (1992), “Perceived consumer effectiveness and faith in others as moderators of environmentally responsible behaviors”, Journal of Public Policy and Marketing, Vol. 11 No. 2, pp. 79-89. Cunningham, R. (2001), The Organic Consumer Profile: Not Only Who You Think It Is!, Alberta Agriculture, Food and Rural Development, Alberta. Davis, A., Titterington, A.J. and Cochrane, C. (1995), “Who buys organic food? A profile of the purchasers of organic food in Northern Ireland”, British Food Journal, Vol. 97 No. 1, pp. 17-23. Ellen, S.P., Wiener, J. and Cobb-Walgren, C. (1991), “The role of perceived consumer effectiveness in motivating environmentally conscious behaviors”, Journal of Public Policy and Marketing, Vol. 10 No. 2, pp. 77-101. Fotopoulos, C. and Krystallis, A. (2002), “Purchasing motives and profile of Greek organic consumer: a countrywide survey”, British Food Journal, Vol. 104 No. 9, pp. 730-64. Hamzaoui, L. and Zahaf, M. (2006), “Exploring the decision making process of Canadian organic food consumers”., Working Paper WP 2006-31, School of Management, University of Ottawa, Ottawa. Hutchins, R.K. and Greenhalgh, L.A. (1997), “Organic confusion: sustaining competitive advantage”, British Food Journal, Vol. 99 No. 9, pp. 336-8. Kassarjian, H. (1977), “Content analysis in consumer research”, Journal of Consumer Research, Vol. 4 No. 1, pp. 8-18. Keegan, W.J. (1989), Global Marketing Management, PrenticeHall, Englewood Cliffs, NJ. Kotler, P., Armstrong, G. and Cunningham, P. (2005), Principles of Marketing, 6th Canadian ed., Pearson PrenticeHall, Toronto. Kristallis, A. and Chryssohoidis, G. (2005), “Consumers’ willingness to pay for organic food: factors that affect it and variation per organic product type”, British Food Journal, Vol. 107 No. 5, pp. 320-43. Kristensen, K. and Grunert, S.C. (1991), “The effect of ecological consciousness on the demand for organic foods”, in Bradley, F. (Ed.), Marketing Thought around the World, Proceedings of European Marketing Academy Conference, Dublin, pp. 299-318. Lampkin, N. (1992), “What is organic farming”, Trade Development Board – Organics Workshop, 30 June, Organic Farming Systems Research Group, MAF, Wellington. Lampkin, N. (1999), “From niche to mainstream for EU organic farming”, Proceedings of Euro-Organics’99 AgraEurope Conference, London. Larue, B., West, G., Gendron, C. and Lambert, R. (2004), “Consumer response to functional foods produced by conventional, organic, or genetic manipulation”, Agribusiness, Vol. 20 No. 2, pp. 155-66. Managerial implications and applications It is clear that the organic industry is moving from a niche market industry to a mainstream industry. Several distribution and pricing issues still need to be addressed. Our study provides insights to marketers and managers on how to market organic food products in a new emerging market identified as community organic food market. Moreover, community organic food consumers have specific needs and behave differently from standard organic food consumers. These consumers care less about price when it comes to buying locally produced food. Further they look for the shortest channel of distribution for two main reasons, they want to: 1 buy directly from farmers to strengthen their trust relationship; and 2 minimize the food mileage problem. It is clear that the traditional marketing approach can not handle the advent of new types of consumers such as community organic food consumers. For marketers, as well as for organic food producers and retailers, there is here an explanation of major barriers/ motives that limit/enhance the demand for organic food in community markets; a description of the structure of the community organic food markets; and a proposition of a decision making model for small community OF consumers that depicts the major steps involved in OF purchases. Further, this deeper understanding of community organic food consumers, their perceptions, attitudes, and knowledge will help marketers define a more specific strategy for positioning, communication, pricing and distribution of organic food within the food chain, and to develop activities that focus on capitalizing on the strength of the linkages between organic food attributes and relevant personal and psychographic characteristics. This will in turn help to understand the implications of the consumer food consumption behaviour theory on issues like trust in the source of organic foods. Finally, this will also have direct implications at the provincial and federal levels in terms not only of certification and labelling but also in terms of sustainable community development, i.e. help local farmers and producers competing in the actual market. References Amyx, D.A., De Jong, P.F., Lin, X., Chakraborty, G. and Wiener, J.L. (1994), “Influencers of purchase intentions for ecologically safe products: an exploratory study”, Proceedings of the American Marketing Association Winter Educators’ Conference, St Petersburg, Florida, pp. 341-7. Baker, S. (2003), New Consumer Marketing: Managing a Living Demand System, John Wiley & Sons, Toronto. Baker, S., Thompson, K. and Engelken, J. (2004), “Mapping the values driving organic food choice”, European Journal of Marketing, Vol. 38 No. 8, pp. 995-1012. Baker, S., Thompson, K.E. and Palmer-Barnes, D. (2002), “Crisis in the meat industry: a means-end approach to 102 Decision making process of community organic food consumers Journal of Consumer Marketing Leila Hamzaoui Essoussi and Mehdi Zahaf Volume 25 · Number 2 · 2008 · 95 –104 Lumbers, M., Eves, A. and Skourtas, G. (2003), “Comparison of consumer perceptions of food-related hazards between Greece and the UK”, paper presented at the 83rd EAAE Seminar, Chania, 4-6 September, available at: www.maich/eaae.gr MacRae, R., Martin, R., Macecy, A., Beauchemin, R. and Christianson, R. (2002), “A national strategic plan for the Canadian organic food and farming sector”, Organic Agriculture Center of Canada, Nova Scotia Agriculture College, available at: www.organicagcentre.ca/reportfinal. pdf (accessed 17 January 2005). Macey, A. (2003), Certified Organic, The status of the Canadian Organic Market in 2003, Report to Agriculture & Agri-Food Canada, Agriculture & Agri-Food Canada, Toronto. Makatouni, A. (2002), “What motivates consumers to buy organic food in UK?”, British Food Journal, Vol. 104 Nos 3/4/5, pp. 345-52. Roddy, G., Cowan, C. and Hutchinson, G. (1994), “Organic food: a description of the Irish market”, British Food Journal, Vol. 96 No. 4, pp. 3-10. Schwepker, C. and Cornwell, B. (1991), “An examination of ecologically concerned consumers and their intention to purchase ecologically packaged products”, Journal of Public Policy and Marketing, Vol. 10 No. 2, pp. 77-101. Shamdasani, P., Chon-Lin, G. and Richmond, D. (1993), “Exploring green consumers in an oriental culture: role of personal and marketing mix factors”, Advances in Consumer Research, Vol. 20, pp. 488-93. Solomon, M., Bamossy, G. and Askegaard, S. (1999), Consumer Behaviour: A European Perspective, Prentice-Hall, Englewood Cliffs, NJ. Squires, L., Juric, B. and Cornwell, T.B. (2001), “Level of market development and intensity of organic food consumption: cross-cultural study of Danish and New Zealand consumers”, Journal of Consumer Marketing, Vol. 18 No. 5, pp. 392-409. Verdurme, A., Gellynck, X. and Viaene, J. (2002), “Are organic food consumers opposed to GM food consumers?”, British Food Journal, Vol. 104 No. 8, pp. 610-23. Wier, M. and Calverly, C. (2002), “Market potential for organic foods in Europe”, British Food Journal, Vol. 104 No. 1, pp. 45-62. Worner, F. and Meier-Ploeger, A. (1999), “What the consumer says”, Ecology and Farming, Vol. 20, January-April, pp. 14-15. Zanoli, R. and Naspetti, S. (2002), “Consumer motivations in the purchase of organic food: a means end approach”, British Food Journal, Vol. 104 No. 8, pp. 643-53. aspect of sustainable marketing. He is also member of the Food Security Research Network. Executive summary and implications for managers and executives This summary has been provided to allow managers and executives a rapid appreciation of the content of this 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 benefits of the material present. Organic food (OF) is one of the most rapidly growing industries in the USA, Europe and Australia. Annual growth in some countries is between 20 and 30 percent, helping to propel the organic sector towards mainstream industry status. Why organic? Previous studies have indicated that a wealth of factors motivate the consumption of OF. These include issues related to: the environment; health; nutrition; taste; farming methods; and food safety. Furthermore, many consumers are inspired by the belief that their behaviour and actions can make a difference. On the contrary, high price; availability problems; lack of trust; quality; limited choice; and lack of perceived value are reasons cited by non-purchasers. Research into consumption behaviour within different countries concluded that OF buyers are driven by values belonging to three main categories: 1 the environment; 2 human concerns; and 3 animal welfare. While these same motives prevail in different nations, the intensity and ranking appear to be country specific. It has also been suggested that the development stage of the OF market may influence the ranking of motives to purchase organic products. Different studies have, however, revealed that consumers are increasingly concerned about the environment. Some studies have segmented OF consumers on the basis of attitude and purchase intention, demographic factors, purchase frequency and food-related lifestyles. Several studies have profiled the typical OF consumer as being a female who buys in large quantities and shops more frequently than men. Other research has corroborated these findings and added that many OF consumers are vegan or vegetarian, aim to support local farmers, are not priceconscious and mistrust large corporations. Studies also suggest that age is not especially relevant but note that younger consumers embrace green issues and are thus eager to purchase OF. However, cost is prohibitive to many of them. In Canada, the OF industry is less developed and research into market size and potential is limited. The aim of Essoussi and Zahaf is to investigate OF purchase behaviour within a community market setting with a specific focus on the perceptions, values and motivations involved. Consumer knowledge of OF together with labeling and certification measures are other aspects explored. The study involved six focus groups conducted in a community market within an Ontario province. Participants were consumers who purchased OF from specialized outlets, About the authors Leila Hamzaoui is Assistant Professor of Marketing at the Telfer School of Management, University of Ottawa, Canada. Her research areas are international marketing and consumer behaviour, country of origin, brand equity, and organic product consumption. Leila Hamzaoui is the corresponding author and can be contacted at: hamzaoui@management. uottawa.ca Mehdi Zahaf is Assistant Professor at the Faculty of Business Administration, Lakehead University, Canada. His research interests include environmental economics, environmental modeling, environmental marketing and game theory. Dr Zahaf is intensively working on several 103 Decision making process of community organic food consumers Journal of Consumer Marketing Leila Hamzaoui Essoussi and Mehdi Zahaf Volume 25 · Number 2 · 2008 · 95 –104 conventional grocery stores or open markets. Most respondents were aged between 19 and 35 and were subsequently divided into regular consumers (RC) and nonregular consumers (NRC). All NRC were students and all RU purchased from specialty stores or open markets. Those who partook were asked what they considered to be the most important characteristics of OF and what they felt needed improving. Prior research had indicated a struggle to properly define OF and that many consumers regarded organic as an alternative term for natural. The present study revealed that NRC share that perception while RC are able to differentiate between the food categories. appearance. Some respondents detect OF by shape, color, form or taste and half by its higher price. Benefits Health is the main reason cited by RC for buying OF. Many argued that the benefits outweigh the cost of buying and stated support for local farmers, environmental friendliness and feeling good as main benefits. Respondents felt that supporting local farmers helped to sustain the local community and minimize distribution distance. Trust It is important that trust exists between consumer and producer. There is reluctance from some RC to purchase OF from grocery stores even when labels confirm product as organic. Such consumers doubt the authenticity of this certification. Accepting products as organic can depend on who has issued the label and what certification process has been adopted. Evidence exists that NRC less are aware than RC about who regulates and controls the certification. Concerns were also raised that standards may not be internationally consistent and possible implications for imports were noted. Conclusion and recommendations Essoussi and Zahaf believe that customers lacking in knowledge and information pertaining to OF will not be capable of defining organic, differentiating between organic and natural and identifying products. They also feel that behaviour of OF consumers in terms of store and product choice will be moderated by factors such as type of retailer and the level of trust in the certification process. Distribution, labeling and certification were all linked to levels of consumer confidence and trust. The study showed that small communities tend to favor the local economy and thus support local OF producers. Low availability levels of OF in major superstores serving these small communities provides further testimony to this preference. Consumer trust is higher for local farmers than superstores and this also influences choice, as does the direct marketing of food from local supplier to consumer. Marketers should appreciate that OF consumers in small communities have different needs from their big city counterparts. For instance, price does not influence their purchase decisions. The authors suggest that marketers should use the study findings to develop specific strategies for the positioning, communication, pricing and distribution of OF products. It is additionally recommended that activities are created to exploit the links between OF attributes and relevant character traits and personal preferences. However, the study is acknowledged as exploratory and a useful foundation for further research that should be extended to other small communities and major cities within different provinces. Perception and identification It is believed that the term “organic” also incorporates the production and distribution process, making it a broader concept than previously stated. RC claim to identify OF by its (A précis of the article “Decision making process of community organic food consumers: an exploratory study”. Supplied by Marketing Consultants for Emerald.) Key factors to consider Availability A third of respondents believe that a lack of specialty outlets makes OF difficult to buy. There was also an overall feeling that OF was not easy to locate in small communities and some superstores but was not a problem within a number of other city stores. There were also complaints about insufficient variety of OF products in certain cities. Some participants remarked about finding fewer organic products than they knew were generally available and the authors regard this as a considerable barrier to consumption. Fruit and vegetables, meat, dairy products, bread and eggs are the OF products that RC mainly buy. NRC also purchase prepared foods that include cereals, jam, chocolate, pasta and drinks. To purchase reprints of this article please e-mail: [email protected] Or visit our web site for further details: www.emeraldinsight.com/reprints 104
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