Proceedings of Annual Switzerland Business Research Conference
12 - 13 October 2015, Novotel Geneva Centre, Geneva, Switzerland
ISBN: 978-1-922069-86-3
Factors Influencing Organic Jasmine Rice on Future
Consumption of Consumers in Thailand
Kritsana Boonklang* and Nitipon Putachote**
This research study aims to investigate the influences of demographic
factors and age range of consumers, understanding toward the
organic products, and the level of information regarding the organic
products received towards the organic jasmine rice on future
consumption of the consumers in Thailand. Quantitative research
design is used along with field surveys and questionnaires as the
tools for data collection. There are 400 subjects included in the study,
all of which live in Khon Kaen, an economic center in the northeast.
The subjects are organic Jasmine rice consumers and have bought
organic Jasmine rice for consumption. The statistics used in this
research study are descriptive statistics which are percentage, mean,
standard deviation, and Multiple Linear Regressions. The results
reveal that of the 3 factors, which are consumer age range,
understanding towards the organic products, and the level of
information received regarding the organic products, the consumer
age range influences on organic jasmine rice consumption in the
future. The results from this work can be a guideline for marketing
strategy planning in order to meet the demand of organic Jasmine
rice in the future market.
Keyword: creating demand, organic Jasmine rice, understanding of product,
information search
1. Introduction
Rice (Oryza Sativa,L.) is a main staple food of the world. It shares the same species
as grass and has biodiversity. Rice can be grown anywhere since it is resistant to
every terrain, no matter in arid areas like deserts, in plains, or in cold mountains
(Veerapat, 2010)
Thai people have consistently consumed rice as the main food from the past to the
present and valued it as a source of energy. However, most of the rice production in
Thailand relies on chemical substances. Rice production for commercial and export
relies on monoculture, new technology, along with chemical fertilizers and pesticides
which are used to increase the production.
*Master Degree Student, MBA Marketing Program, Faculty of Management Science, Khon Kaen
University corresponding author, e-mail: kitsana_07@hotmail.com
**Ph.D., Associate Professor in the Department of Marketing , Faculty of Management Science, Khon
Kaen University, Thailand, 123 Mittraparp Road, Muang, Khon Kaen 40002 THAILAND, Phone
:+6643-202401 Fax :+6643-202402, e-mail : Nitput@kku.ac.th
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Proceedings of Annual Switzerland Business Research Conference
12 - 13 October 2015, Novotel Geneva Centre, Geneva, Switzerland
ISBN: 978-1-922069-86-3
However, using a large amount of chemical fertilizer and pesticide does not only
increase the costs, incorrect and poor chemical uses can also cause residues in the
produces that will be delivered to the consumers or even to the farmers themselves
and result in health problems (Duangsrisai, 2014).
Organic farming is a new alternative for famers who reject chemical uses, and it
helps maintain the ecological balance, as well as reducing the production costs and
increasing the income for farmers (Office of Technological Transfer Development,
Department of Agriculture Extension, 2005 cited in Wasantiwong, 2009). Jasmine
rice is an agricultural product that applies organic farming methods in growing as a
result of health-conscious behaviors of the consumers who are aware of toxic
residues. The organic Jasmine rice consumption trend in Thailand has emerged from
the fact that the consumers are becoming more aware of their health and place more
importance on healthy foods. Therefore, the consumers are becoming more
interested in the organic Jasmine rice. Despite the more acceptance of the organic
Jasmine rice, the organic Jasmine rice market expansion is still facing a problem
when it comes to expanding the target group which includes upper-class consumers
with good knowledge about organic Jasmine rice and organic foods and new
consumers who lack knowledge about health benefits from organic Jasmine rice and
are confused about the differences of organic Jasmine rice, nontoxic Jasmine rice,
and general Jasmine rice.
The researcher sees the importance in studying the factors that influence the organic
Jasmine rice on future consumption in Khon Kaen since the growth rate in organic
food businesses is likely to increase every year as a result of higher education,
healthier product demands, and more awareness of environmental protection.
Consequently, it is essential to study the data regarding the organic Jasmine rice
consumers in order to make a marketing plan to sustainably expand the healthy
product market.
2. Literature Review
Concept and Theory regarding Consumer Behavior
Hanna and Wozniak (2001) state that consumer behaviors are the study on how
consumers select, purchase, spend, and use a product or service, all of which are to
satisfy their necessity and needs.
Ponnikorn (2005) defines consumer behaviors as the study on individuals, groups, or
organizations and procedures used in selecting, obtaining, using, and disposing of a
product or service, all of which are to fulfill the needs and to investigate the impacts
from the procedures mentioned on the consumers and society.
Schiffman and Kanuk (1997) define consumer behaviors as actions that an individual
do to search, buy, use, evaluate, spend on a product or service with a hope to have
their needs met.
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Proceedings of Annual Switzerland Business Research Conference
12 - 13 October 2015, Novotel Geneva Centre, Geneva, Switzerland
ISBN: 978-1-922069-86-3
Suwansaeng. (1999) define behaviors are actions, manifestations, and conducts
expressed via tactile senses which can be measured by 5 senses: eyes, mouth,
nose, ears, and complexion. Behaviors that are seen, tasted, smelled, heard, and felt
are easy to recognize, such as sleeping, sitting, standing, running, jumping, eating,
hugging, kissing, and etc. Some behaviors can be concealed which are difficult to
recognize, such as thinking, imagining, heart beating, but they can be measured by
tools, such as a test, a lie detector test, and a wave measurement tool
According to the definitions given above, it can be concluded that "the study of
consumer behaviors is a study on decision making of each consumer on whether to
purchase "what", "why", "where", "when", "how", "how often", and "from who" to suite
and satisfy their needs". Therefore, understanding of consumer behaviors can lead
to marketing plans, effective marketing strategies, and desirable behaviors of society
and all parties involved.
Perception of Consumers
Wiriyakitpattana and Utsawasitthitaworn (2007) define perception as a process of
receiving, processing, and interpreting information into pictures of internal and
external environment. The perception processes consist of relevant activities.
Receiving information is generally a process occurring either unintentionally or
intentionally, and the perception increases with accumulated social experiences.
Humans cannot pay attention to everything around them, but they choose to
perceive certain things. In addition, each individual has different perception. When
humans receive the same message, two of them are likely to focus to the message
differently. Generally, different perception is a result of influence or filter in the
perception process.
Principles in Organic Jasmine Rice Production
Organic Jasmine rice is a kind of rice obtained from organic farming or organic
agriculture which excludes chemical uses or any synthetic substances, such as
chemical fertilizers, plant growth regulators, controlled substances, and insecticide,
in every production procedure and during the harvest. On the other hand, modified
organic substances are used to increase soil fertility keeping crops healthy and
resistant to diseases and insects. If necessary, allowable amounts of natural
substances or plant extracts can be used without leaving toxic contaminants in soil
and water, which helps to sustain the environment, as well as obtaining quality
produces. (Poompanwong, 2006)
The main factor believed to be the cause of decline in organic farming is the rice
price insurance policy implemented by the government in 2008. The government
enacted several policies to support the agricultural sector, especially the rice price
insurance policy that set the higher insurance price than the market price and the
income insurance policy for farmers (e.g., rice farmers). This causes a huge impact
on Thai organic agriculture since the policies subsidizing the rice farmers encourage
the famers to expand their cultivation by doing off-season farming (though they have
never done or attempted to do it only twice a year) with the hope of gaining more
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Proceedings of Annual Switzerland Business Research Conference
12 - 13 October 2015, Novotel Geneva Centre, Geneva, Switzerland
ISBN: 978-1-922069-86-3
income. Therefore, the number of the farmers who did organic agriculture declined.
Moreover, the farmers who originally did organic agriculture turned to do general
farming, resulting in the significant decline in organic rice production with the
reduction in paddy of 15,747.02 rai from the existing 140,711.61 rai in 2011 to
124,964.39 rai in 2012 (11.2% decline) (Panyakool, 2008).
The organic Jasmine rice production procedures are as follows (1) Selection of
planting area: by selecting the large, connected areas with high soil fertility, nutrients
required for the growth of rice, availability of water for cultivation, there should not be
consecutive chemical use or chemical contaminant in the area, and the area should
be far away from the area where chemicals are used. (2) Selection of rice breed: the
rice breed used for cultivation should meet the qualifications in terms of suitability
with the environment, productivity even in the area with low soil fertility, resistance to
diseases and pests, and quality of rice that matches the consumers' needs. (3)
Planting procedure: plunging is the most appropriate method for organic rice since
the soil preparation and the water control can help reduce the number of weeds. To
produce organic rice, chemical uses, especially chemical fertilizers, should be
avoided, and it is suggested that the frequency for planting organic rice should be
slightly greater than that for planting general rice. (4) Planting system: organic rice
should be grown once a year by considering a suitable period and rotating rice
breeds. It is suggested that leguminosae plants be planted before and after rice, and
organic rice can be grown together with leguminosae plants depending on an
appropriate environment. (5) Weed control: it is suggested that mechanical means
be used, such as appropriate soil preparation, appropriate methods for reducing
weeds, and water control. (6) Disease, insect, and pest prevention: the principle of
preventing diseases, insects, and pests in organic rice includes using rice breed with
immunity, determining an appropriate time for planting, creating a preventive
environment, and maintaining the natural balance. (7) Water management: from the
plunging period to the tiller period, if the water level is too high, the crops will grow
high, which makes it weak. During this period, the water level should be
approximately 5 centimeters. If there is not enough water, the weeds will overgrow
the rice. (8) Harvest: it includes massaging rice, reducing moisture, and harvesting
rice after flowering around 28-30 days or by noticing the straw color in the spikes;
this stage is called Crinum Asiaticum stage. (9) Storing paddy: reduce the moisture
level to be lower than 14 percent and store the paddy in the barn or in the container
separated from other types of rice. (10) Loading: brown rice and rice should be
loaded in a small bag from 1 to 5 kilograms in vacuum (Panyakool, 2008)
Hypothesis
Supinachareon (2013) studied the organic rice consumer behaviors and the direct
and indirect relations of factors that influenced the decision on buying organic rice of
400 consumers in Bangkok area. The data were collected by using questionnaire.
The results revealed that most of the organic rice consumers knew the organic rice
but never bought it. For those who knew and bought the organic rice, they bought it
less than once a month by receiving information from the internet. In addition, they
trusted the organic rice distributors at the Organic Agriculture Fair, and they
accepted the 20 percent higher price since there was no organic rice distributor
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Proceedings of Annual Switzerland Business Research Conference
12 - 13 October 2015, Novotel Geneva Centre, Geneva, Switzerland
ISBN: 978-1-922069-86-3
elsewhere. The result of the analysis on the relations of factors influencing the
decision on buying the organic rice showed that the direct influences were the quality
of life factor and the quality of product factor respectively. The factors directly
influencing the quality of service were the quality of product and the quality of life.
Ratanapongporn (2010) developed a model on eco-friendly product buying
behaviors of 790 Thai people in 4 regions with age over 15 years old. It was found
that the independent variables affecting buying behaviors consisted of knowledge
about environment, attitudes towards environment, lifestyles concerning
environmental conservation, influences of the reference group, adhering to collective
rights, and marketing communication with impact from variable pricing and product
distribution channel.
Yenpiem (2009) studied the factors influencing the buying decision of organic
Jasmine rice. It was found that product, distribution channel, and pricing highly
affected the buying decision of organic Jasmine rice. However, the sample group
that once bought the organic Jasmine rice stopped buying, and the sample group
that never bought the organic Jasmine rice thought the distribution channel and
marketing promotions differently affected the buying decision of organic Jasmine
rice. The marketing promotion factor, along with product and pricing factors,
moderately affected the buying decision of organic Jasmine rice.
3. Methodology
Population and Sample Group
Population includes the people living in Khon Kaen Province. The sample group
includes the organic Jasmine rice consumers and those who have bought the
organic Jasmine rice for consumption. However, the number of the organic Jasmine
rice consumers is uncertain.
To determine the size of the sample group in case the number of the population is
uncertain, it can be done by estimating the proportion of the population by using W.G
Corchran formula (Silapajaru, 2012) with 98 percent confidence level and 5 percent
allowable errors in sampling, and the result is 384.16 samples with 15 samples
reserved for selection. Therefore, the number of the sample group is 400.
Sampling
Non-probability sampling is used along with judgmental sampling. The conditions for
selecting the sample group in Khon Kaen include being an organic Jasmine rice
consumer and having consumed organic Jasmine rice for the past 6 months starting
from November 2014 to April 2015. Then, data from 400 samples are collected.
Data Collection Tools
As for this research study, the tools include a closed-end questionnaire consisting of
sets of questions which can be divided into 4 parts: (1) questions concerning the
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Proceedings of Annual Switzerland Business Research Conference
12 - 13 October 2015, Novotel Geneva Centre, Geneva, Switzerland
ISBN: 978-1-922069-86-3
demographic characteristic of the consumer, (2) 15 questions concerning knowledge
and understanding of organic agriculture, (3) questions concerning receiving
information about the organic products by using rating scale, and (4) 18 questions
concerning the organic Jasmine rice consuming behavior in Khon Kaen Province,
Thailand.
The questionnaires used for the data collection have been tested for validity and
reliability before distributing. The details are as follows:
1) Validity: the questionnaires are presented to the adviser to check the structure
and content validity before and after pre-testing in order to modify and finalize them
to cover the objectives of the study.
2) The modified questionnaires are pre-tested on 30 samples to test the reliability.
The results of the pre-test are shown in Table 1.
Table 1 Questionnaire Reliability Test
(Cronbach’s alpha coefficient)
Content
Understanding
Reliability
0.75
Receiving information and source of information concerning the organic
products
0.86
According to Table 1, the alpha level is 0.7 greater than the significance level;
therefore, it can be concluded that the questionnaire is reliable (Nunnally, 1959)
Data Analysis
The data are processed by SPSS for Windows software. The statistics used in the
analysis are 1) descriptive statistics: percentage, frequency, mean, and standard
deviation and 2) inferential statistics and multiple regression analysis to test the
hypothesis.
4. Results
Personal characteristics of the consumers
According to the general information regarding the personal characteristics of the
sample group, it reveals that most of the questionnaire respondents are 257 female
(64.30%), 158 of which are under 30 years old (39.50%), 230 of which are single
(57.50%), 233 of which have bachelor degree (27.80), and 156 of which earn more
than 25,000 Baht per month (39%).
Knowledge and understanding of organic products of the population in Khon
Kaen
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Proceedings of Annual Switzerland Business Research Conference
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ISBN: 978-1-922069-86-3
It is found that 281 of the consumers have high knowledge and understanding of the
organic products (scores 11-15) (70.25%), 113 of them have general knowledge and
understanding of the organic products (scores 6-10) (28.25%), and 6 of them have
poor knowledge and understanding of the organic products (scores 1-5) (1.50%)
respectively. The item that the consumers understand most is "in addition to the
safety of the consumer, organic agriculture helps sustain the environment" followed
by "organic agriculture avoids chemical uses in every production procedure" and
"organic agriculture benefits both the producers and the consumers" respectively. As
for "rice without chemical use involved in the production procedures is called organic
rice", it is the item that the consumers understand least.
Receiving information concerning the organic agriculture of the population in
Khon Kaen
It is found that the level of information received is moderate with 3.19 mean and 0.56
standard deviation. Considering each item, it is found that the level of information
received regarding the organic products is high, while the level of source of
information is moderate. Considering each item, it is found that the information
received most concerns safety in consumption followed by the health benefits and
the fact that the organic products have no chemical or toxic contaminant in the
production procedures respectively. Moreover, the level of information received
regarding the organic production procedures ranks the bottom.
Organic Jasmine rice consuming behavior
It is found that 182 of the consumers consume the organic Jasmine rice less than
once a year (45.50%), 125 of them do once in a while (31.25%), 151 of them have
some family members who consume the organic Jasmine rice (37.75%), 165 of them
consume the organic Jasmine rice regularly (41.25%), 231 of them buy 1 kilograms
of organic Jasmine rice at maximum (57.75%), and 236 of them buy less than 5
kilograms of organic Jasmine rice at maximum (59%). In addition, the cost for buying
the organic Jasmine rice per time is lower than 150 Baht (34.25%), and 170 of the
consumers buy the organic Jasmine rice due to the standard guarantee (42.50).
Moreover, 109 of the consumers know and start to consume the organic Jasmine
rice from a family member (27.25%), 141 of them think a family member is the main
influence that leads to buying the organic Jasmine rice (37.25%). The period of
buying the organic Jasmine rice is Saturdays to Sundays, with 206 respondents
(51.50%), and 256 of the consumers buy the organic Jasmine rice regularly from the
department store (64%). Besides, 128 of the consumers think the main factor
influencing them to buy the organic Jasmine rice is the variety of the products (32%),
152 of them agree with having more distribution channels and making it convenient
by arranging the healthy corner (38%), 125 of them compare the products with
various brands before buying (31.25%), 297 of them buy products from other brands
in case the products they want are sold out (74.25%), and 321 of them think it is
likely that the organic Jasmine rice trend will increase in the future (80.25%).
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Proceedings of Annual Switzerland Business Research Conference
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Testing Hypothesis
Hypothesis:The results of demographic factors which include age range of the
consumers, understanding of the organic products, and the level of information
received concerning the organic products that influences the organic Jasmine rice
consumption in the future are shown in Table 2.
Table 2 Analysis of Factors Influencing Organic Jasmine Rice Consumption in
the Future

Factors that influence the organic
B
SEB
Jasmine rice consumption
(Beta)
Constant (A)
1.218
0.160
Age below 30 (X1)
0.149
0.071 0.173
Age between 30 -40 (X2)
0.071
0.070 0.082
Age between 41 -50 (X3)
0.041
0.090 0.030
Level of knowledge and understanding
0.024
0.043 0.029
(X4)
Level of information received (X5)
-0.079
0.044 -0.091
R = .168
R2 = .028
Adjusted R2 = .016
F = 2.288 SE = .419 Sig. = .045
* With 0.05 significant statistics
t
Sig
7.615
2.107
1.010
0.453
0.000*
0.036*
0.313
0.650
0.568
0.570
-1.807
0.071
According to the results, Sig. value of the equation has .000 smaller than .05;
therefore, H0 is rejected and H1 is accepted, which means that the variables depend
on at least one independent variable. The coefficient of determination R 2 in this
model equals .028, which means the demographic factors including age range of the
consumers, understanding of the organic products, and the level of information
received regarding the organic products can explain 2.8 percent change in organic
Jasmine rice consumption in the future. Consequently, the regression equation is as
follows:
Y
=
1.218 + .173.X1 + .082X2 + .030X3 + .029X4- .091X5\
Therefore, the organic Jasmine rice consuming behavior in the future = 1.218 +
0.173 (age below 30) + 0.082 (age between 30-40) + 0.030 (age between 41-50) +
0.029 (level of knowledge and understanding) - 0.091 (level of information received)
Considering Sig. value in the independent variables, it is found that the age range
variable "age below 30" alone has Sig. value less than 0.05. This variable can be
used to predict the organic Jasmine rice consuming behavior in the future with 0.5
significant statistics and more than 0 Beta value (positive). It can be concluded that
the age variable (age below 30) relates to the organic Jasmine rice in the future.
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Proceedings of Annual Switzerland Business Research Conference
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ISBN: 978-1-922069-86-3
5. Discussion
Conclusion
According to the results of the consuming behavior, most of the consumers in the
sample group that buy organic Jasmine rice are single females below 30 years old
with bachelor degree, and they are the office employees. This behavior is found to
be different from the results of Wasantiwong (2009) which reveal that those between
30-50 years old buy the organic Jasmine rice for consumption. This difference
indicates that people below 30 years old have more roles in buying the organic
Jasmine rice because of the change in social trend and more awareness of health.
Thus, the marketing personnel have to invent a product and new means of
communication to fulfill the varying needs of the consumers in the future
(Wiriyakitpattana and Utsawasitthitaworn, 2007).
Implication and Suggestion
According to the research study on organic Jasmine rice consuming behavior of the
population in Khon Kaen, the research would like to suggest the following.
1. In this research study, the researcher is not certain of the number of the sample
group. However, the sample group includes organic Jasmine rice consumers and
those who buy organic Jasmine rice for consumption only. It lacks relations between
understanding of the organic agriculture and organic Jasmine rice consuming
behavior of the population in Khon Kaen, which concerns the consumption tendency
in the future. In case the improvement in the organic Jasmine rice is needed to
increase the marketing shares and the target group, the use of mediums for
providing understanding to the consumers regarding the benefits of the organic
Jasmine rice, the planting procedures, the organic agricultural standard guarantee,
and the difference between the organic Jasmine rice and other rice in terms of
quality are required to attract more consumers, especially those families who care
about health.
2. Business owners, farmers, and marketing personnel should bear in mind that
pricing for the organic Jasmine rice should not be over THB 150. In addition, the
price comparison with general rice should be considered in order not to set too high
price since the consumers consider buying a variety of products and compare the
prices with different brands before buying. If the organic Jasmine rice price is too
high, the consumers will choose to buy other types of rice or other brands. Moreover,
merchandising the organic products in a special corner in a department store can
create more distribution channels for the consumers since it is more convenient and
outstanding. Furthermore, the level of perception regarding the organic agriculture is
moderate which might result from lack of continuous public relations and lack of
media giving information about the benefits of the organic products. The consumers
listen to recommendations and suggestions from their acquaintances, such as family
members.
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Proceedings of Annual Switzerland Business Research Conference
12 - 13 October 2015, Novotel Geneva Centre, Geneva, Switzerland
ISBN: 978-1-922069-86-3
3. This research study selects the organic Jasmine rice consuming behavior of the
population Khon Kaen only. Therefore, further study should involve the marketing
mix or the development of the organic Jasmine rice market by considering different
areas or other sample groups with demographic diversity, such as students who care
about their health, working people, office employees, in order to apply the results to
improve the marketing plans and the organic Jasmine rice production, as well as
other organic products in the future.
Study Limitations and Avenues for Future Research
The research selected the uncertain number of the sample group which affects the
distribution of demographic factors, specifically the age of the sample group.
Therefore, it is found that the group of people below 30 years old is the biggest with
39.50 percent, which might affect the results of the analysis due to the greater
number. In the future study, it is suggested that the demographic factors in the
sample group, such as gender, age range, should be precisely determined. It can be
determined with quota in each of the demographic groups.
Acknowledgement
This study was supported by Faculty of Management Science, Khon Kaen
University.
End Notes
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