Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Purchasing Behavior of Organic Rice of Consumers in Bangkok Metropolitan Area Jittiwat Sricham*, Somsak Kuhaswonvetch** and Nuttawut Rojniruttikul*** The purposes of this research are, firstly, to investigate the organic rice purchasing behaviors of consumers in Bangkok metropolitan area, and then to compare them according to individual’s personal factors. The researchers have collected all the data from 384 organic rice consumers in Bangkok metropolitan area, using a questionnaire as a research instrument. Consequently, the gathered data are analyzed by virtue of the statistics application programs. The descriptive and quantitative statistics employed in this analysis were in terms of percentage, means, standard deviations, as well as one-way-ANOVA analysis to test the hypothesis. The results of the research can be summarized as follow: 1. Most Bangkok metropolitan area consumers have made the purchase of organic rice around twice a month, with the average of 7 kilograms of rice purchased each time, amount to the purchase of 400 Baht. 2. The consumers with different personal factors have no significant difference in the purchase frequency 3. The consumers who have different ages and marital status will have significantly statistical difference in amount of organic rice purchase (in kilogram) each time significance at 0.01 level 4. The consumers who have different marital status will have significantly statistical difference in spending each time they purchase organic rice significance at 0.01 level Field of Research: Marketing Research 1. Introduction Rice has long been Thailand’s important economic crop as it is the main staple of Thai residents and has been grown in several areas. (Panwong N.and Viriyakitkosol N. , 2000) Besides, organic agriculture is a production procedure which emphasizes the sustainability of the ecosystem and inhabitants, based on the dependence of ecological management; biological diversity; the integration of local knowledge, innovation, and scientific knowledge in environmental conservation. It will also raise the quality of life for people and relating living things in the surrounding. (International Federation of Organic Agriculture MovementIFOAM. , 2008) Organic agricul ture was introduced into Thailand in 1989 despite not being really recognized at the early days. Then in 2003, organic agricultural product consumers in Thailand paid a lot more attention to it after the international organic agricultural product symposium there (Office of the Permanent Secretary Ministry of Commerce, 2007). There are 5 socio-economic groups of people who are interested, namely families with healthy lifestyles with young children, health conscious consumers, families with sick members, families with the elderly, and foreigners’ families. According to the finding from Greenet’s *Mr. Jittiwat Sricham, Administration and Management College, King Mongkut ’s Institute of Technology Ladkrabang,Thailand, Email : jittiwat697@gmail.com ** Assistant Professor Dr. Somsak Kuhaswonvetch, Faculty of Agricultural Tachnology, King Mongkut’s Institute of Technology Ladkrabang, Thailand, Email : kksomsa@kmitl.ac.th ***Assistant Professor Dr. Nuttawut Rojniruntikul, Administration and Management College, King Mongkut’s Institute of Technology Ladkrabang, Thailand, Email : krnuttaw@kmitl.ac.th Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 research in 2011, there were approximately 432 items of organic products being sold in Thailand, 58% of which were imported. In the years 2011 to 2012, there were many more processed-food firms (Panyakul V. , 2012). The reason may be the present consumer trend, which is more health concerned despite the unfavorable economy. They are more willing to spend for premium organic consumer products. (Raktinkamnert R. , 2014). Later in 2013, there was an increase of 20% in the organic rice sales due partly to the consumers’ trust in its quality, which means they paid more attention to rice quality in addition to its chemical-free feature (Panyakul V. , 2013). Furthermore, the stimulating health and environmental concern will attract consumers’ interest, both domestic and overseas. There are several suitable growing grounds for organic rice scattering in the north and north eastern parts of Thailand. The government and private sectors have to focus on increasing the production of organic rice all over the country, and especially on making people understand the principle of producing it to comply with the international standard as well as on finding for reliable market (Kasikornbank Research Center. , 2007). As for the selling price, the organic rice is 30% more expensive than regular one. The demand for organic rice has substantially increased although growers are still worried about the market. If this hurdle is overcome, they will turn to growing more organic crop, driving down the price (Williamsward, V. Wallapa , 2013). From the above mentioned reasons, there has been increasing favor in organic agricultural products, one of which is organic rice. However, there are still other problems in this regard, one of them is the consumer behavior in the purchase of organic rice, about which researchers would like to conduct a study. 2. Literature Reviews The concept relevant to the study of consumer s’ behavior in purchasing organic rice in Bangkok metropolitan area involves the following: Engel, James F. Kollat, David T. Blackwell, Roger D.(1968)defined consumer behavior as the action of people involving getting and using of products and services as well as the decision making procedure prior to buying, which takes part in making the purchase.In addition, Serirat S. et al. (2008) mentioned it as the behavior which the consumers use to search, buy, and evaluate the outcome of using the products and services expected to serve their need, or the study of decision-making behavior and action of consumers relating to buying and consuming them. Maslow's Hierarchy of Needs starts at the basic physiological needs we need just to stay alive. Once these are made we have a need for safety, then we want love and affection. Within our group we want to have self esteem. Finally we have a need of satisfying our full potential that Maslow calls Self Actualization ( Maslow A. , 1943) The five needs is 1.Physiological needs are to do with the maintenance of the human body. If we are unwell, then little else matters until we recover. 2. Safety needs are about putting a roof over our heads and keeping us from harm. If we are rich, strong and powerful, or have good friends, we can make ourselves safe. 3. Belonging needs introduce our tribal nature. If we are helpful and kind to others they will want us as friends. 4. Esteem needs are for a higher position within a group. If people respect us, we have greater power. 5.Self-actualization needs are to 'become what we are capable of becoming', which would our greatest achievement. (Maslow, A., and Lowery, R. , 1998) Consumer buyer behavior refers to the buying behavior of final consumers individuals and households who buy goods and services for personal Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 consumption. There are 4 main types of factors influencing consumer behavior: cultural factors, social factors, personal factors and psychological factors. ( Kotler, P and Armstrong G. , 2012) Engel, Blackwell and Kollat have developed in 1968 a model of consumer buying decision process in five steps: Problem/need recognition, information search, evaluation of alternatives to meet this need, purchase decision and post-purchase behavior. Hanna, N. and Wozniak, R. (2001) and Schiffman, Leon G. and Kanuk, Leslie Lazer. (2003) gave relevant definition of demography, describing it as individual’s demographic aspects such as age, gender, educational level, occupation, income, religion, and ethnic background, all of which have effects on consumer behavior. In general, marketers take them as a basis when considering market segmentation, associating them with demand, favor, and rate of consumption. International Federation of Organic Agriculture Movement (IFOAM) gave the defination of organic agriculture is "Organic Agriculture is a production system that sustains the health of soils, ecosystems and people. It relies on ecological processes, biodiversity and cycles adapted to local conditions, rather than the use of inputs with adverse effects. Organic Agriculture combines tradition, innovation and science to benefit the shared environment and promote fair relationships and a good quality of life for all involved." Description of production and processing method for organic rice The following detailed recommendations under this standard are for growers and general public to guide through the processes of production and processing to produce organic rice to ensure consumers’ confidence. Soil fertility management Since application of chemical fertilizer is prohibited in organic rice cultivation, it is suggested growers select a natural fertile land for cultivation. This initial selection provides an advantage in maintaining leverage of quantity and quality. In addition, growers should understand the proper soil management and maintenance of soil fertility for sustainable Weed control Weed control recommendations should be based on physical methods such as proper land preparation, growing practices to reduce weeding (in case of heavy weed infestation, it is recommended to use transplanting technique), the use of water level maintained in the paddy field for weed control, hand weeding, and other cultural practices such as the uses of rotary plough, appropriate growing season, leaf cutting technique, crop rotation and weeding the paddy field including dike areas. Pest control Diseases, insects and animals shall be controlled where necessary. The balance of natural enemies against pest population and plant health is the key criteria before applying naturally produced substances or allowable substances for pest control described in the Table 1 of TAS 9000 Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Table 1: Permitted Substances Shall be in Compliance with Requirements Specified in TAS 9000 Part 1 with the Add-Ons as Follows: Substances Details/ specific conditions 1. Neem (Azadirachta indica A.), Dried long pepper flower (Piper retrofragum Vahl.), Dried powder of mytle grass or sweet flag (Acorus calamus L.) 2. Azolla or mosquito fern or water fern (Azollz pinnata) 3. Blue green algae 4. Dried animal blood 5. Ground bone 6. Grain meal To be mixed with rice seed for pest control To improve soil fertility, increase nitrogen To improve soil fertility, increase nitrogen To improve soil fertility, increase nitrogen To improve soil fertility, increase nitrogen, phosphorus and calcium To improve soil fertility, increase phosphorus Transportation Containers and sacks used for packing, as well as vehicle for transporting organic rice, should be clean and free from any contamination of hazardous substances and other rice. Carrier or vehicle should appropriate to handle organic rice. It is not recommended to use vehicle that has been loaded with soil, animals, manures, fertilizers or chemicals that may cause contamination of pathogenic and toxic substances, unless such vehicle has been properly cleaned before use. Organic rice shall not be comingled with non-organic commodity and other prohibited materials or substances for organic agriculture during transportation from production site to distribution center. Storage Storage of organic rice shall be segregated, clean and hygienic. It shall be able to prevent adulteration from general rice products. The storage shall be provided with good ventilation with mechanical pest management. Check the storage and record the amount of paddy stored. (National Bureau of Agricultural Commodity and Food Standards Ministry of Agriculture and Cooperatives , 2010 ) 3. The Methodology and Model The research samples are 384 organic rice consumers in Bangkok metropolitan area, though with no exact figures. The accidental sampling method was used in gathering the data. The instrument used in collecting data is a questionnaire, which has been designed to collect the organic rice purchasing behavior with 3 consecutive parts:First, questions about personal factors of the consumers, i.e. gender, age, educational level, monthly income, and occupation. Second, questions about organic rice purchasing behavior. The subjects fill in the figures about purchasing behavior such as the purchase frequency, amount of purchase, and the amount of spending for each purchase.Third, other suggestions about organic rice Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Research Hypothesis Consumers who have different personal factors will have subsequent different behaviors in purchasing organic rice. Conceptual Model Researchers review the basic concept of consumer behavior by Engel, James F. Kollat, David T. Blackwell, Roger D.(1968) who mentioned that the starting point of any purchase is the stimulation for the demand to buy. This stimulation is influenced by various personal factors and then there will be response or even decision to buy or not to buy. Researchers have studied the research finding of Yenpiam A. and Aroonsrimorakot S. (2011), who conducted a study about factors influencing the purchase of organic jasmine rice as well as that of Chimsuthi L. (2008), who did a case study on the rice purchasing behavior: The consumers in Pathumthanee province. Accordingly, researchers have made a research concept as shown in figure 1 Independent Variable Personal factors 1. Gender 2. Age 3. Marital status 4. Educational Level 5. Monthly income 6. Occupation Dependent Variable Purchasing behavior 1. Purchase frequency 2. Amount of organic rice purchase 3. Spending for the organic rice Figure 1: Conceptual Model Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 4. Findings Table 2: Personal Factors of the Respondents Gender Age Marital status Educational Level Monthly income Occupation Personal factors Male female ≤ 30 years old 31 - 40 years old 41 - 50 years old 51 - 60 years old ≥ 60 years old Single Married Widowed / Separated Lower than bachelor's degree. Bachelor Degree Higher than the Bachelor's degree. ≤ 20,000 baht 20,001 – 30,000 baht 30,001 – 40,000 baht ≥ 40,000 baht Student Private employees Private business Government / state enterprise employees Other frequency 146 238 117 132 81 39 15 137 208 39 101 209 74 174 96 69 46 43 137 67 102 Percentage 38.02 61.98 30.47 34.38 21.09 10.16 3.91 35.68 54.17 10.16 26.30 54.43 19.27 45.05 25.00 17.97 11.98 11.20 35.68 17.45 26.30 36 9.38 It is found that most consumers were female in ages of 31-40 years old, married Educational Level in Bachelor degree, monthly income of equal or less than 20,000 Baht a month and work in Private employees Table 3: Result from analysis in organic rice consumers’ purchasing behavior Mean standard deviation purchase frequency (per month) 1.37 0.63 amount of organic rice purchase (kgs) 6.41 4.35 spending for the organic rice (Bath) 400.54 254.78 It is found that most consumers in Bangkok metropolitan area purchased organic rice twice a month, with 7 kilograms of organic rice in average for each purchase and 400 Baht in average for each amount of spending. Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Table 4: The result of one-way ANOVA analysis comparing organic rice purchasing behavior in relation with personal factors of consumers in Bangkok metropolitan area Personal factors Purchase frequency Gender 0.948 Age 0.026 Marital status 0.013 Educational Level 0.269 Monthly income 0.652 Occupation 0.239 Note: ** significance at 0.01 level Amount of organic rice purchase 0.745 0.000** 0.000** 0.452 0.089 0.037 Spending for the organic rice 0.659 0.047 0.001** 0.383 0.382 0.069 It is found that those who had different personal factors do not have significant difference in the frequency of purchase significance at 0.01 level ; on the other hand, those who had different ages and marital status had significant differences in the amount of organic rice purchase (in kilograms) significance at 0.01 level and finally, those who had different marital status had different behaviors in each spending for the organic rice. Table 5: P-Value figures resulted from comparing the means of pairs of purchasing behavior of consumers with different ages Purchasing behavior Amount of organic rice purchase Age Mean ( years old ) ≤ 30 5.38 31 - 40 6.38 41 - 50 7.48 51 - 60 5.89 ≥ 60 9.75 Note: ** significance at 0.01 level Group 1 2 3 4 5 1 - P-Value 2 3 4 5 0.065 0.001** 0.529 0.000** 0.064 0.540 0.003** 0.061 0.051 0.003** - It is found that consumers who were 60 or older had different amount of purchase (in kilograms) each time compared to those who had other age , except 41-50 years old. Apart from that, consumers who were less than 30 years old had significant differences for the amount of purchase compared to those who were 41-50 years old. Lastly, the rest of the consumers with other pairs of different ages do not have any significant difference in the amount of purchase. Interestingly, consumers with different ages do not have any significant difference in amount of spending for each purchase significance at 0.01 level Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Table 6 : P-Value figures resulted from comparing the means of purchasing behavior of organic rice by marital status. Purchasing behavior Amount of organic rice purchase Marital Mean status Single 4.97 Married 7.25 Widowed / 7.05 Separated Spending for Single 337.86 the organic Married 438.66 rice Widowed / 420.00 Separated Note: ** significance at 0.01 level Group 1 2 3 1 - P-Value 2 0.000** - 3 0.007** 0.792 - 1 2 3 - 0.000** - 0.072 0.670 - The Widowed / Separated consumers had significant differences in the amount of each purchase (in kilograms) compared to their married, single, or divorced counterparts significance at 0.01 level and Married consumers had significant differences in the amount of each purchase (in kilograms) compared to their Single significance at 0.01 level In addition, Married consumers had significant differences in the Spending for the organic rice compared to their single, significance at 0.01 level 5. Conclusion and Discussion The frequency of organic rice purchasing behavior It is found that consumers who had different personal factors have on any difference in the purchase frequency because nowadays organic rice is more available with more distribution channels and convenient to buy. Consumers also require high quality and fresh organic rice, making no difference in the frequency of purchase. It accords with the research finding of Yenpiam A. and Aroonsrimorakot S. , (2011), who studied factors that influenced the buying decision for organic jasmine rice and found that demographic factors: gender, age, educational level, and income have no any effect on consumers’ decision. The amount of organic rice purchasing behavior It is found that consumers with different age and marital status had differences in each amount of purchase because most of the consumers are married and are over 60 years old; therefore, are more concerned with their own health and family’s. This resulted in higher amount of purchase over the unmarried or divorced, adolescent or working age counterparts. In accordance with Sangsri N. , (2011): Factors influencing organic rice consumption in Bangkok area.From the finding, consumers took organic rice due mainly to health conscious reason. Together with Wongnitchakul W. and Koeyyernyong W. , (2010)’s research finding: Effect of attitude and purchasing behavior on germinated brown rice products in Bangkok area, it was found that consumers with different age groups and marital status had differences in the germinated brown rice purchase behavior. Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 The amount of spending for organic rice purchasing behavior It is found that consumers with different marital status had differences in the amount of spending for each purchase. Most of them are married and had higher amount of purchase over the others. This is because of higher numbers of family members resulting in higher spending for each purchase. It accords with Supachokeauechai S. , (2012), who studied bagged rice purchasing behavior of consumers in Kampangpetch province. It is found that demographic aspects, i.e. age, gender, marital status, and educational level, all had a role to play in the purchasing behavior. Suggestion There are a number of beneficial suggestions to organic rice producers and distributors: 1. Organic rice producers and distributors should focus on developing and improving their products, especially to target on the consumers who have families. The supply of the products’ strategy should be in accordance with consumers’ amount of purchase as well as determining the proper pricing tendency to accord with the consumers’ amount of spending. 2. The government should encourage the consumers in adolescent and working age to turn more to consume organic rice for their own health. This can also promote the higher production. Besides, they should establish an appropriate standard price for both producers and consumers. Additional suggestion for further research 1. This research has been conducted with only the samples in Bangkok area, without considering the others in the regional areas. Therefore, the further researches should be conducted by covering all those areas to enable the setting up of marketing strategy to cover wider potential consumers 2. For any further researches, there should be more extensive study in other variables such as motivation, attitude, or marketing mix to exemplify more for the organic rice purchasing behavior. References Autchasai S. and Worasinchai L., 2012, ‘Factors Affecting the Rice Buying Behavior of People in the Bangkok Metropolitan Area’, Panyapiwat Journal Vol.3 No.2. Chimsutti L., 2008, Rice Purchasing Behavior Case Study : Consumers in Pathumtani Province, Graduate School Master of Education , Business Administration, Rajamangala University of Technology Thanyaburi, Pathumtani. Department of economics. , 2012, Statistics international trade in years 2011, The Ministry of Commerce. Engel, James F. Kollat, David T. Blackwell, Roger D. , 1968. Consumer Behavior. New York : Holt, Rinehart and Winston, Inc. Hanna, N. and Wozniak, R. , 2001, Consumer behavior: An applied approach, Upper Saddle River, NJ,Prentice Hall. International Federation of Organic Agriculture Movement ( IFOAM), 2008, Defining Organic Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Agriculture for the World, The meeting of the International Federation of Organic Agriculture Movement in June 2008 in Vignola, Italy. Kasikornbank Research Center ,2007, Organic rice:the potential market growth, Mongsetthakit magazine issue 1991 18 May 2007. Koseeyarat N., 2010, The study organic vegetable consumption demand of health shop consumer siriraj Bangkok Noi Bangkok, Graduate School Master of Education, Silpakorn University,Bangkok. Kotler, P. , 1997, Marketing management : analysis, planning, implementation and control, 9th ed, New Jersey : A simon & Schuster Company. Kotler, P. , 2003, Marketing management.Upper Saddle, River,N.J:Prentice Hall. Kotler, P and Armstrong G. , 2012, Principles of Marketing, 14 edition, English, Upper Saddle,River,N.J:Prentice Hall. Kullachai K. and Kullachai P., 2007, Behavior attitude and factors influencing for organic Vegetable eating in Bangkok, Proceedings of 44th Kasetsart University Annual Conference , Education, Social Sciences, Agricultural Extension and Communication, Humanities and Home Economics . Kasetsart University, Bangkok. Maslow, A. 1943, A theory of human motivation, Psychological Review, vol. 50, 1943, 370-96. Maslow, A., and Lowery, R. 1998, Toward a psychology of being ,(3rd ed), New York: Wiley & Sons. National Bureau of Agricultural Commodity and Food Standards Ministry of Agriculture and Cooperatives, 2010, Thai Agricultural Standard TAS 9000 Part 4 – 2010 Organic Agriculture Part 4 : ORGANIC RICE, Published in the Royal Gazette Vol.127 Section 14D Special,Dated 21 December B.E. 2010. Office of the Permanent Secretary Ministry of Commerce , 2007, Thai oraganic Agiculture. Ministry of Commerce . Pakdeeto S. and Sutamaung K., 2013, Motivation for consumer organic rice on working age of consumer in Bangkok metropolitan areas, Graduate School Master of Education , Rangsit University, Pathumtani. Panyakul V. , 2013, Overview of organic 2011-2012, Earth Net Foundation, Bangkok. Panyakul V. , 2003, The situation of organic Thailand.and world, Earth Net Foundation, Bangkok. Pichpongsa W., 2011, Pioneer the market of organic rice exports worldwide each year 100 million, Matichon magazine issue 289, 15 November 2011. Pornudomtha S., 2014, A Study of Consumer Behavior in Online Marketing of Organic Rice Contributing to Accessibility of Electronic Commerce Uttaradit Province, Graduate School Master of Education , Uttaradit Rajabhat University, Uttaradi. Punwongand N. and Wiriyakijkosol N., 2000. Study production of high protein rice flour, Bachelor of Science Program in Food Science and Technology, King Mongkut's Institute of Technology Ladkrabang, Bangkok. Rakthinkhamnert R., 2013, Unfold the organic expensive because packaging Hope the link to consumers - escape the covenant, News agency news TCIJ agriculture 23 January 2013. Rice Department., 2011, Strategic Plan of the Rice Department 2011-2013, Ministry of Agriculture and Cooperatives. Schiffiman, Walter,Dill Scott. 1978, Employment guidelines reliability and validity of predictors, Schiffman, Leon G. and Kanuk, Leslie Lazer. 2000, Consumer Behavior, (7th ed), New Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Jersey: Prantice-Hall, Inc. Soma M., 2005, Attitude of consumers Mueang Chiang Mai District towards organic rice, Graduate School Master of Education ,Chiangmai University, Chiangmai. The article Thai organic market, Earth Net Foundation , viewed 09 June 2014 [online],Available: http://www.greennet.or.th/article/1009. Thongchai S., 1997, Consumer behavior ,(9th ed), Bangkok, Thai watana Panich . Williamsward, V. Wallapa., 2013, Guide to eat '' without chemicals - organic rice antioxidant Activity, Kaosod magazine issue 8288 08 August 2013. Wongmonta S. , 1999, Consumer behavior analysis,Bangkok:Dimond in Business world. Wongnichakhun W. and Koyyuenyong W. , 2010, Consumer Attitude and Behavior in purchasing GABA Rice in Bangkok, Graduate School Master of Education ,Bangkok University, Pathumtani. Yenpiem A. and Aroonsrimorakot S. , 2011, Factors affecting purchasing decision for organic Jasmine rice of consumer, Graduate School Master of Education , Faculty of Environment and Resource Studies, Mahidol University, Nakhon Pathom.