Food & Beverages

Biography

Biography: Mukhamad Najib

Abstract

Growing consumers’ concerns on food safety, health and environment in the recent decade has resulted increased demand for organic food across the world, including emerging economies such as Indonesia. It is important for food producers to understand the behavior of consumers toward organic food so that they can develop appropriate marketing strategy to deal with their competitors. In this paper we present the result of an empirical study of consumer behavior and marketing strategy towards organic food products in Indonesia as emerging market. We provide the description of Indonesian consumers’ perceptions and attitudes concerning organic food based on the field research. The purposes of this study are: (1) to analyze consumers’ perceptions and attitudes of organic food products, (2) to analyze factors influencing consumers buying decision and (3) to analyze marketing strategy of organic food producers in Indonesia. In this case, rural and urban area can be geographic factors affecting different perception among consumer to organic food. A quantitative survey with a sample of 200 consumers living in rural and urban area was conducted to explore consumers’ perception and attitudes related to organic food. Structural Equation Model used to analyze factors influencing consumers buying decision. Three factors affecting consumers’ buying decision will be examined in this research are as follow: (1) attitude, (2) subjective norm and (3) affordability. The results show that there are significant differences between rural and urban consumers in term of perception and attitude to organic food meanwhile subjective norm and affordability influence consumers buying decision significantly. Market education and suitable pricing strategy can be success factors for food organic producers to compete in the Indonesian market.