Factors Influencing Consumer Purchase Intentions for Organically
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Factors influencing consumer purchase intentions for organically grown products in Shelly Beach shopping Centre, Port Shepstone in KwaZulu-Natal Province, South Africa Wekeza S¹, Sibanda M¹ ¹University Of Zululand Corresponding author email: [email protected] Abstract: In the last few years, the market of organically grown products has continued to grow. This is due to the continued increase of concerns regarding the environmental, food safety and health issues. This led to an increase in demand which outstrips the supply. The study aims to identify the factors influencing the purchase of organically grown products in the Shelly Beach Shopping centre. The study employed a quantitative descriptive cross-sectional design. The study comprised of 150 organically grown product consumers who were selected by means of a systematic random sampling technique. A multiple regression analysis was used to test for the factors influencing the purchase intentions of organically grown products. Multiple regression model revealed that factors like; ethnicity; household size; employment status; household income and perceptions that organically grown products have a better smell and freshness were found to have a positive and significant influence on the purchase intentions. Conversely, age, education, and perceptions that organically grown products have a good taste and quality and limited availability were found to have a negative and significant influence on the purchase intentions of organically grown products. Key words: Multiple regression model, organically grown products, perceptions, preferences, purchase intentions, Shelly Beach Shopping centre. #57 Factors influencing consumer purchase intentions for organically grown products in Shelly Beach shopping Centre, Port Shepstone in KwaZulu-Natal Province, South Africa Abstract: In the last few years, the market of organically grown products has continued to grow. This is due to the continued increase of concerns regarding the environmental, food safety and health issues. This led to an increase in demand which outstrips the supply. The study aims to identify the factors influencing the purchase of organically grown products in the Shelly Beach Shopping centre. The study employed a quantitative descriptive cross-sectional design. The study comprised of 150 organically grown product consumers who were selected by means of a systematic random sampling technique. A multiple regression analysis was used to test for the factors influencing the purchase intentions of organically grown products. Multiple regression model revealed that factors like; ethnicity; household size; employment status; household income and perceptions that organically grown products have a better smell and freshness were found to have a positive and significant influence on the purchase intentions. Conversely, age, education, and perceptions that organically grown products have a good taste and quality and limited availability were found to have a negative and significant influence on the purchase intentions of organically grown products. Key words: Multiple regression model, organically grown products, perceptions, preferences, purchase intentions, Shelly Beach Shopping centre. 1 Introduction The industry of organically grown products in South Africa is growing, which is a newfound aspect of the recent shifts in the food demand in the whole country (De Villiers, 2016; Mditshwa et al., 2017; Mhlophe, 2015). This rapidly growing organically grown product market has set off many researchers to compare several features of organically and conventionally grown products (De Villiers, 2016; Mditshwa et al., 2017). Consumer demand and preferences for organically grown products have an influence on the agricultural production techniques due to the unpremeditated concerns over conventional products (Bazzani et al., 2017; Hilverda et al., 2017; Miranda-de la Lama et al., 2017; Prada et al., 2017). However, the awareness on harmful effects of chemical residues in conventionally grown products is increasing among consumers. As an alternative to these, consumers drift towards organically grown products (Basha et al., 2015; Hasimu et al., 2017; Mditshwa et al., 2017; Mhlophe, 2015; Scalco et al., 2017; Yazdanpanah & Forouzani, 2015). In South Africa the demand for organically grown products is increasingly becoming more important as consumer attitudes and preferences influence the direction of food retailers’ strategies (De Villiers, 2016; Engel, 2009; Mhlophe, 2015). This is due to consumers’ interests for safe alternatives, exclusively, organically grown products (Olson, 2017; Pedersen et al., 2017). Currently organically grown products are perceived as healthy by most consumers as these are made up of natural elements and mostly preferred compared to conventionally grown products. Hence, there has been a belief that organically grown products are safer and healthier than conventional products, and there are also numerous consumers who are willing to pay large price premiums for them (Pomsanam et al., 2014; Ragavan & Mageh, 2013). Currently, there is little knowledge on South African consumers’ concerns and attitudes towards organically grown products (Engel, 2009; Olivová, 2011; Prinsloo et al., 2012). Studies conducted in South Africa still lack the understanding of consumer perceptions and their purchase intentions (Engel, 2009; Mhlophe, 2015). The manner in which consumers make choices in purchasing food are different and very complex. Hence, consumers are worried about environmental issues, the circumstances cannot be certain that consumer behaviour has improved about organically grown products (Eide & Toft, 2013). Regarding environmental concerns, the relationship about consumer attitude and behaviour is not surely straightforward mostly where the products point out a conflict between environmental safety and product gains. Many consumers claim they have not derived any benefits from organically grown products, which threatens the organically grown products market and the available literature lacks strong evidence to justify claims that organically grown products are better than conventional products (Bonti-Ankomah & Yiridoe, 2006). 2 Methodology 2.1 Description of the Study Site This study was conducted in the Shelly Beach shopping Centre in Port Shepstone. Port Shepstone is found on the lower south coast of KwaZulu-Natal Province under Ray Nkonyeni Local Municipality, which falls under Ugu District Municipality, in South Africa (KZNONLINE, 2016). The study area was selected using a multistage sampling, where out of the 9 provinces in South Africa, the KwaZulu-Natal province was randomly selected and out of 10 districts of the KwaZulu-Natal Province, the Ugu District Municipality was also randomly selected and the town Port Shepstone and the Shelly Beach Shopping Centre were purposefully selected. This area was selected mainly because it is the most focused economic Centre and the upmarket type of place in the Ugu District Municipality in the KwaZulu-Natal Province. Figure 1 shows a map of study area (Shelly Beach Shopping Centre) in Port Shepstone under the Ray Nkonyeni local Municipality. Figure 1: Map showing Ray Nkonyeni Local Municipality Source: Ndovela (2018) 2.2 Research Approach and Design The study adopted a quantitative research approach since it provides flexibility in data handling, as well as with respects to statistical studies, comparative studies, and reiterating of data collection, it confirms the stability of instruments to be used (Vosloo, 2014). The research design that this study followed is a cross- sectional design because it generally uses a survey method to collect data, and it is comparatively cheap and consumes less time to conduct. 2.2.1 Study population The target population were the fruits and vegetable consumers who shop in the organically grown products retail outlets such as, Pick n’ Pay, Spar and Woolworths in Shelly Beach shopping centre. According to Du Plooy (2009), it is of importance to deal with a more adequate sample size to gather precise data about a group. Larger samples are more expressive whereas smaller samples decrease the level of accuracy yet moderately accessible and cheap (Pawlowsky-Glahn & Buccianti, 2011). A sample size of 150 respondents (50 from each store) were interviewed. This sample size was deemed to be large enough to make statistical analysis and as well as small enough to be manageable. The probability systematic random sampling was employed where the targeted sample was systematically picked (every 5th consumer as done by Rahman and Noor (2016)) to be included in the study who purchase organically grown products. 2.3 Data collection Data was collected through structured questionnaires (closed and open-ended questions) by means of a survey method. The questionnaires were given to each respondent found inside one of the “Big three” organic retail outlets and within the fruits and vegetables. The questionnaires were also translated to the most spoken language in the study area, which isiZulu. Data was collected for 5 days after the pay dates; that is the 15th (15th - 20th) of the month since many government professionals (nurses and teachers) are paid during these times and also on the 25th - 30th) which is the end of each month (usually pay dates for other workers). Data was collected in the months of November/December 2017 and January 2018, during working hours (08h00-17h00), because that is the busiest period of each month and the interviews on average