Australian Organic Market Report 2008

Being four years since the publication of a similar research document, the Australian Organic Market Report (AOMR) 2008 is a landmark report for the organic industry. The report will be invaluable for monitoring and planning the industry development during a period of high growth. Delivering consistent data for benchmarking growth across the various sectors of the industry, it will be a key tool for decision making by organic producers and marketers, along with interested parties such as government and media, in assisting in understanding the nature, size and development of the organic industry in Australia. Supply chain development has been hindered over many years by a lack of basic information about volumes, seasonality, continuity and quality, not only making it difficult for potentially new members of industry to feel confident about investing in organic, however also likely to cause overseas buyers to look for other countries with more comprehensive industry information. The report is an important base research document required by any growing industry. It has been commissioned by Biological Farmers of Australia (BFA), and has been carried out independently by the University of New England’s Organic Research Group. The report has the financial support of major sponsor Westpac Bank, all State Governments in Australia as well as many dedicated industry businesses

Marketing organic products: Exploring some of the pervasive issues

This article explores the marketing of organic products. It identifies the issues that pervade the national, organisational, and individual differences within the global organic industry. These are discussed using the marketing mix framework of product, price, promotion, and place of distribution. It concludes that a large percentage of customers, who are spread throughout the community, purchase organic products, most of whom only purchase it occasionally. The most important attributes of organic products are health, quality, and environment. Promotion of these benefits has the potential to demonstrate that, even at the higher price, they still offer value for money

Retail outlets: Nurturing organic food consumers

Consumer choice of retail outlet is often overlooked in explaining purchase behaviour in the organic food market. This paper uses theory from applied marketing research to identify the variables affecting consumer choice of retail outlet and finds that they play a determining role in whether or not consumers buy organic food. A grounded theory approach was used. The results confirmed the importance of variables previously identified in the literature in relation to the individual consumer, such as habit and budget, as well as those that relate to the retail outlet, such as convenience and product range. In addition, two new variables were identified that relate to whom the consumer was buying for and whether they are shopping alone or with others. This study focuses on the vast majority of organic food consumers. They are switchers because they purchase both organic and conventional products, rather than solely organic, or solely conventional. It concludes that choice of retail outlet adds to our understanding of their behaviour and that it facilitates identification of important implications for marketers. At a fundamental level, as some consumers actively seek out organic food on certain occasions it is important for retail outlets make them aware that they sell organic food and to stimulate sales with special offers. Further, smaller retailers, such as food co-ops or health food shops, should focus on providing a limited range of organic products and accept that they will not be able to match the convenience offered by supermarkets in terms of opening hours

Consumer choice in context: Developing further understanding of organic buyer’s switching behaviour

The organic food market continues to grow yet market share remains low. The majority of consumers in this market tend to switch between organic and conventional food products rather than being heavy users of organic branded products. The purpose of this research is to present a deeper investigation of the factors that can lead to the purchase or nonpurchase of organic food in order to gain a better understanding of this switching behaviour. A qualitative grounded theory approach was utilised involving in-depth interviews with 21 participants in Australia. These were primary shoppers who switch between organic and conventional food. An emergent conceptual framework was developed from the data which identifies factors that influence whether or not organic food is bought. This framework includes three layers: consumer context; choice of retail outlet; and point-of-purchase. Depending on the specific situation, these factors influence buyers to different extents and hence their collective impact determines whether the individual purchases organic food on a given shopping event. The framework may be used by organic food marketers as a checklist for developing an understanding of their consumers and a basis for developing strategy

The labeling of organic food: understanding consumer perceptions

Pearson, DH ORCiD: 0000-0002-5374-7074; Sultan, P ORCiD: 0000-0003-3856-4592The organic sector is one of the fastest growing food markets in the developed world, with a significant number of consumers continuing to prioritize healthy products that are ethically and sustainably sourced in their weekly shopping baskets. The body of existing research has identified the buyers of organic products and that health and environment are important to those buyers. This literature has also identified that very few customers are dedicated organic food buyers with most purchasing it only some of the time. The main barriers to purchase are associated with price premiums, limited availability for some customers and the blemished appearance of some fresh organic produce. This paper examines perceptions of organic food labeling in the market place based on a large Australian study (n=1011). Findings demonstrate that despite the ongoing prevalence of communication pertaining to organic food, a majority of consumers are still claiming that labels of processed organic food are not clear. This lack of clarity provides an opportunity for the industry to further focus marketing communication on labeling in order to clarify information about organic food

Community gardens: Sustainability, health and inclusion in the city

Food-producing community gardens have taken various forms over the past two centuries and have fulfilled a variety of roles. As we grapple with issues of food security, the use of biotechnology and artificial chemicals in agriculture, rising food prices and the environmental costs of growing and distributing food, the different functions of community gardens are coming under increasing attention. This issue of Local Environment is based on papers first delivered at a National Community Garden Conference in Canberra, Australia. The range of papers explores the key themes that emerged from the conference and deepens our knowledge of community gardens in both theory and practice. In particular, conference participants addressed various aspects of community gardening that centred on issues of sustainability, health and inclusion for urban dwellers

Organic food: What we know (and do not know) about consumers

This paper reports on the latest contributions to over 20 years of research on organic food consumers. There is a general consensus in the literature on the reasons why people buy organic food. However, there is also a gap between consumers’ generally positive attitude toward organic food and their relatively low level of actual purchases. Product differentiation based on intangible features, such as credence attributes such as organic, in fast-moving consumer goods categories is enjoying rapid growth. However, there are many difficulties with research in this area, including the errors inherent in research that relies on consumer self-reporting methodologies. Further, in relation to organic food, there is a divergence between consumers’ perception of its superior health features and scientific evidence. Fresh fruits and vegetables are of vital importance to the organic sector as they are the entry point for many customers and account for one-third of sales. Further, although there is a small proportion of dedicated organic food buyers, most sales come from the majority of buyers who switch between conventional and organic food purchases. This paper identifies the practical implications for generic organic food marketing campaigns, as well as for increasing sales of specific products. It concludes with suggested priorities for further research

Sustainable food consumption : investigating the role of marketing communications in consumer purchase intentions of organic foods

Pearson, DH ORCiD: 0000-0002-5374-7074; Sultan, P ORCiD: 0000-0003-3856-4592Research Approach and Methodology: The current literature and discussions with industry bodies reveals that despite a high level of organic food awareness among consumers, the level of organic food purchases remains low. To investigate this issue, an online survey of 1011 respondents was conducted during November 2012. Respondents were recruited from a national research only panel and the only prerequisite to qualify for this project was that respondents had to have purchased organic products sometime in the past. Nearly sixteen percent (15.7%) of the sample qualified as regular buyers of organic products. Another 30.1% of respondents claimed to buy organic food products 1-3 times a fortnight. Over half of the respondents in this sample are either occasional (45.2%) or lapsed (9%) organic food buyers

Intention-behaviour gap and perceived behavioural control-behaviour gap in theory of planned behaviour: Moderating roles of communication, satisfaction and trust in organic food consumption

This study examines the moderating effects of perceived communication, satisfaction and trust on the intention-behaviour gap and the perceived behavioural control (PBC)-behaviour gap in the theory of planned behaviour (TPB) model, using a quantitative research method. A nationwide panel-only online survey was conducted, resulting in 1011 usable responses from organic food consumers in Australia. Data were analysed statistically using SPSS v.25 and SmartPLS 3 software, and the hypotheses were tested using the partial least squares-based structural equation modelling (PLS-SEM) technique. The findings confirm that perceived communication, satisfaction and trust positively and significantly enhance purchase behaviour and lessen gaps in the intention-behaviour and PBC-behaviour relationships in the TPB model. This study also validates the TPB model and finds statistically significant results in support of all of its 14 hypotheses. It is the first such study to examine the intervention efficacy or moderating effects of perceived communication, satisfaction and trust on the intention-behaviour and PBC-behaviour gaps in the TPB model. Examining the mediational effect of behavioural intention in the TPB model and including the Australian context are among its other contributions. Organic food producers and marketers aiming for sustained, positive changes in consumer behaviour are encouraged to consider the findings and implications of this study