However, organic foods only accounts for 0. 9 percent of total worldwide farmland” (10 reasons organic food is so expensive).The highly demand of organic food causes the high price, and organic farmers want to offset the loss of organic foods as much as possible when they grew it. Additionally, the less using of chemical makes the organic food fresher, because organic foods do not have preservative to make it longer (Organic Foods). The fresher food often tastes good and be healthier to people, so people prefer to buy organic foods. Usually, the performance of food can attract people to buy it.
Furthermore, organic food products purchase... ... middle of paper ... ...o encourage by our government. Organic foods are one of a green product category. In order to identify why people like to purchase organic food, few factors will support for the research. The attitude of consumers toward organic foods, the environment consciousness, safety and health aspect, the knowledge of the organic food among consumers, and also the perception of quality on organic food among consumers will support this research to identify the factors influence the purchase intention. However, in order to identify which type of ASTRO staffs are purchase the organic foods, the socio demographic factors such as age, marital status, education and income of ASTRO staffs will be focus in this research.
The price for organic food is high as of now because organic farming is a lot more management intensive and requires more labor; it reflect the accurate cost of growing; and organic farms are smaller. Some say buying natural products is a complete waste of money and that organic foods are less healthy than conventional food. Organic granola, chips, cereals, and cookies do have more fat, calories, and sugar (Smith-Spangler, et al.). Studies are still being done on the actual nutritional benefits of organic food but with the current research we have knowledge of how the health advantages are true. Most people believe that the health benefits alone are enough for them to switch to organic.
To provide organic produce to the customer, decisions on inventory have to be made. Produce does not have an endless shelf life so the product that will be purchased by organic growers needs to be a product that is cost effective and will be purchased by the customer. The price for organic produce is guaranteed to be higher since organic growing methods yield less sellable product then chemical means. If Kudler Fine Foods is going to remain competitive, the organic produce prices must be attractive. With three stores and many organic farms in the San Diego area, Kathy Kudler is confident that competition will result competitive prices.
Does it Pay to Buy Organic? Retrieved from Businessweek website: http://www.businessweek.com/magazine/content/04_36/b3898129_mz070.htm In this online magazine article Cropper asks a real pers... ... middle of paper ... ...nic labels. While our foods in the stores may show us which ones are organic, many of our local farmers can not afford to certify their products. The good news is that only farmers who have to be certified are the ones that make above a certain amount, so this article encourages us to check with our local farmers and visit their farms to find out their techniques. We may find a local organic grower without the increased prices.
As a result, Kudler's marketing research department has a new task ahead of them and that is to gather data from other competitive organic food stores as well as analyzing organic market trends to identify the most efficient approach to achieve Kudler's new goal. Product Selection Many companies are achieving significant competitive advantage by the way they configure and manage their supply chain operations. The first step in implementing the new supply chain begins with researching on the types of organic produce offered by local growers that meet specific demand of targeted customers.
This paper will discuss the effects this decision has on Kudler’s business processes, supply chain and quality control tools and performance standards. Business Processes The business processes at Kudler that could be affected by the decision to contract with organic farmers are purchasing, inventory management and advertising. Deciding to offer organic produce to their customers requires that Kudler be aware of the National Organic Program regulations. Though as retailers they aren’t required to become certified, they are still responsible for verifying and maintaining the organic integrity of the products they purchase. Kudler’s purchasing function is currently decentralized.
(2013) explored the nature of open air markets selling only organic products. He collected data on total sales and participation, interviewed farmers and consumers in market in Istanbul. He observed that sales are purely seasonal and entry of organic food products in open air market have increased their sales. He compared both farming organic and conventional products by price, quality and effective transporting and food safety terms. He also compared organic sales from different countries to know the difference and similarity among them.
The USDA has a list of farms and the regulation along with the laws of labeled certified organic foods. Understand what is harmful and what is prohibited within regards to certified organic foods. Know where local produce is coming from and buy local. Also, when shopping at the farmers market, ask the farmer what methods does he believes in and what he is putting on his produce.
Beliefs about healthiness, tastiness, animal welfare, and saving the environment are motivational actions that influence purchasing behaviour of organic food. The greatest fragment of consumers are aware of organic food and the benefits it holds, advertisements and news articles encourage consumers to consume organic food to ensure a longer and healthier life (Hjelmar, 2011:338). Even with sufficient knowledge about organic food, most consumers will not purchase it... ... middle of paper ... ...chase modified food if the store does not sell organic food, they only have a physiological need of hunger to satisfy. It is clear that most consumers has knowledge about organic food products and can make informed decisions when purchasing food products. Positive perceptions towards organic food can be seen within the consumers, but price and unavailability is the main reason why consumers restrain from purchasing it.