MARKETING AND SOCIOECONOMIC FACTORS OF ORGANIC FARMS: AGE AS A PREDICTOR OF ACCEPTANCE OF ORGANIC FOOD PRODUCTS ALTERNATIVES AMONG METROPOLITAN POPULATION IN ALABAMA

• Sponsoring Institution: National Institute of Food and Agriculture
• Project Status: COMPLETE
• Funding Source: EVANS-ALLEN
• Reporting Frequency: Annual
• Accession No.: 1011636
• Project Start Date: Dec 21, 2016
• Project End Date: Nov 30, 2020
• Program Code: [(N/A)]- (N/A)

Recipient Organization
ALABAMA A&M UNIVERSITY
4900 MERIDIAN STREET
NORMAL,AL 35762

Performing Department
Community & Regional Planning

Non Technical Summary
Organic food industry is becoming an important sector in Alabama but few studies have been conducted to assess the industry's potentials and constraints and examine consumers' valuation of and willingness to pay for organic food products. Four specific objectives are proposed to attain this overall goal: 1) to examine the impact of socio-economic factors of the respondents and their willing to purchase organic food products, 2) to determine whether the acceptance of organic food alternatives can be predicted by the socioeconomic factors and age, 3) to compare prediction of acceptance organic foods among the age categories of under 55, 55-64, and age 55 and over, 4) to provide economic and marketing information for Alabama's organic food industry to develop effective promotion and marketing strategies and improve its profitability and efficiency. Following the literature review research phase the researchers will conduct a number of semi structured interviews with industry experts in order to gather qualitative insight into what had been uncovered in the academic literature. To best augment the quantitative data will be gathered from consumers, through the design of questionnaire survey. The interviews will be designed in a structured way. Results from these proposed objectives will provide information on the relative importance of product attributes, consumer willingness to pay for organic food, and the characteristics of organic food consumers and such information is useful to organic food farmers, processors, and retailers.

Animal Health Component

80%

Research Effort Categories

Basic

20%

Applied

80%

Developmental

0%

Classification

Knowledge Area (KA)	Subject of Investigation (SOI)	Field of Science (FOS)	Percent
603	5010	3010	100%

Knowledge Area
603 - Market Economics;

Subject Of Investigation
5010 - Food;

Field Of Science
3010 - Economics;

Keywords

organic food

socioeconomic factors

age

predictor

purchase behavior

consumer attitudes

Goals / Objectives
Thegoal is to investigate and examine potential predictors of acceptance of organic food. First, acceptance will be tested with the entire sample and with the over 55 age group. Subsequently, prediction of acceptance among the age categories of fewer than 55, 55 to 64, and age 65 and over will be compared.Objectives of the Study:To examine the impact of socio-economic factors of the respondents and their willing to purchase organic food products.To determine whether the acceptance of organic food alternatives can be predicted by the socioeconomic factors and age.To compare prediction of acceptance organic foods among the age categories of under 55, 55-64, and age 55 and over.To provide economic and marketing information for Alabama's organic food industry to develop effective promotion and marketing strategies and improve its profitability and efficiency.

Project Methods
The research proposal objectives necessitated the identification of the various factors that influence the purchase of organic food. The literature review will be used in the identification of potential factors affection a consumer's purchasing behavior of organic food products. The study survey will covers the period of six months from January 2017 to June 2017. Primary data will be collected using structured interview schedule. The Secondary data will be collected from government reports, publication, research reports, and books. For this study, multistage random sampling techniques will be used for selection of the five hundred sample consumers. The sample will be drawn from the sample unit the customers of fresh retail outlets located at various places of Alabama metropolitan cities. Alabama's fresh a specialty shop which deals with organically cultivated grains, pulses, edible oil, fruits, vegetables.

Progress 10/01/17 to 09/30/18

Outputs
Target Audience:Organic farmers, marketers and food companies Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest?Results have been disserminated through journal publications What do you plan to do during the next reporting period to accomplish the goals?Additional knowledge is needed to inform consumers? between the ages of 45-64 years about organic food products. In this way, it will help policy makers, farmers and managers in formulating and implementing strategies to encourage organic food products purchasing.

Impacts
What was accomplished under these goals? The study investigates the association between consumers' socio-economic factors and knowledge of organic food products in Huntsville Alabama. Findings is expected to assist organic farmers, marketers and food companies to create realistic and moral promotions for the aging population and also to have an overview taking advantage of age breakdown to assure their organization for sustained growth and enhanced performance through continuous improvement. Following the literature review the researchers designed a questionnaire survey for data collection during the last two weeks of January 2017. Purchasers were approached during food shopping in outlets of two retail chains in two different areas of Huntsville, Alabama. Data collected from the questionnaire survey were analyzed with descriptive and spearman rank correlation statistical tools to test the null hypotheses. Findings showed that AGE and EDUL correlated negatively with consumer knowledge of where to buy organic food products (r = -0.487, p < .013 and r = -0.434, p < .025), while, belief in the information published about organic advantages (BIPOAD), belief that organic products are healthier (BOPH), and familiar with the terms "organic food" and "organic agriculture" (FTOFOA) correlated positively with consumer ever buy organic food (EBOF) or beverage products (EBOB) (r = 0.730, p <.000, r = 0.593, p < .012 and r = 0.397, p < .041). Thus, a significant association emerged for knowledge about as to where buy organic food products and socio-economic factors. Also, consumers ever buy organic food or beverage products with belief in the information published about organic food advantages and as organic products are healthier. Consumers between the ages 45-64 years need additional information on organic food products. In this way, it will help policy makers, farmers and managers in formulating and implementing strategies to encourage organic food products purchasing. The main conclusion that emerged from this pilot study was that additional knowledge is needed to inform consumers? between the ages of 45-64 years about organic food products. In this way, it will help policy makers, farmers and managers in formulating and implementing strategies to encourage organic food products purchasing.

Publications

• Type: Journal Articles Status: Published Year Published: 2017 Citation: Jacob O. Oluwoye. 2017. The Association between Consumers Socioeconomic Factors and Knowledge of Organic Food Products in Huntsville, Alabama: A Pilot Study. International Journal of Agricultural Research, Sustainability, and Food Sufficiency (IJARSFS) Vol. 4(4) 24 November, 2017, Pp. 202-210
• Type: Journal Articles Status: Published Year Published: 2017 Citation: Jacob O. Oluwoye. 2018. Determinants of organic food buying behavior: A Pilot Study of Consumers in Huntsville, Alabama. International Journal of Agricultural Research, Sustainability, and Food Sufficiency (IJARSFS) Vol. 5(03) 19 August, 2018, Pp. 280-288

Progress 12/21/16 to 09/30/17

Outputs
Target Audience: Nothing Reported Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals?Collection of general data to close the gaps identified during the pilot study.

Impacts
What was accomplished under these goals? The project established that consumers' perceptions and behavior play a major role in the purchase and use of organic food products. The analysis reveals those consumers who are really aware of the term 'organic' food can be considered typical supermarket customers. The pilot shows that sample of Huntsville consumer behavior serves as a good indicator of the amount by which certain variables have an impact on purchase behavior.

Publications

• Type: Journal Articles Status: Published Year Published: 2017 Citation: Jacob Oluwoye1, Duncan Chembezi, and Berneece Herbert. Consumer Perception of Organic Food Products and Purchase Behavior of Shopping in Outlets of Retail Chains: A Pilot Study of Huntsville, Alabama. International Journal of Agricultural Research, Sustainability, and Food Sufficiency (IJARSFS)Vol. 4(3), Pp. 165-173