Proceedings of Annual Tokyo Business Research Conference

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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.
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