BUSS5397 Determinants of Organic Food Buying Behavior Assignment Sample

• Subject Code : BUSS5397
• University : University of South Australia My Assignment Services is not sponsored or endorsed by this college or university.
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Research for Business Decision Making

Contents

1 Introduction.

2 Ethical issues in statements made by Tammy Kelly.

2.1 "We really need to get our media campaign out there as soon as possible".

2.2 “We need to make this story good and convince the marketplace out there that our products are the right type of snack foods, are healthy and make you feel better as well”.

2.3 “You can see from the testimonials that these products work”.

2.4 “We are prepared to pay you well if you come up with a plausible marketing campaign”.

3 Three secondary dataset that Prajit can use.

4 Recent trends (i.e., most recent 5 years, 2015-2020) in organic health food sales in Australia and reasons for purchase.

5 References.

1 Introduction to Determinants of Organic Food Buying Behavior

Marketing strategy is one of the important aspects of the business because it helps in bringing competitive advantage to the business by product differentiation and align the marketing activities to the goals of the organization. The organic world is an Australian company involved in selling various organic food products. The company's website had a series of testimonial postings from various people about the health benefits of the product purchased from the company. The company's profit has increased by 300 per cent from the last two years by using its websites and testimonials as a marketing strategy. The owner of the business wants to expand the business and gain customer's loyalty through a market campaign that promotes the testimonials and convincing the customers about gaining good health from the usage of the product.

The owner of the company wants to do a market campaign using the blog promoting testimonials. This essay tries to identify the ethical aspects which needed to be considered by a director of marketing whom the Organic world company manager approaches for designing the market campaigns are discussed. The discussion about possible secondary data sources that the director of marketing can use to describe the current status of the health food market in Australia is done. Besides the trend analysis, organic food sales, and reasons for the purchase in Australia are also made. These are presented in the essay with various headings.

2 Ethical Issues in Statements Made by Tammy Kelly

Ethics in marketing refers to moral judgement and behavioural standards in marketing practices. We can see a lot of ethical issues in product marketing. If the action of a company is not acceptable by society or if it is regarded as unethical by society then it will be very difficult for the company to achieve its objectives. Some of the statements made by the owner of the organic world which has ethical implications are presented below

2.1 "We need to get our media campaign out there as soon as possible"

Aim for Transparency: Marketing director should aim at designing the transparent marketing campaign. The more transparent the marketing director in presenting the contents in media campaign the more trustworthy the product becomes in the eyes of the consumers. It is very important to be in honest in what we are presenting in the campaign. It is not advisable to overstate something only to gain popularity and sales. If customers do not get what they wanted there is a chance of losing customer credibility.

2.2 “We need to make this story good and convince the marketplace out there that our products are the right type of snack foods, are healthy and make you feel better as well”

Maximising Product sales: To maximise the product sales a company owner may drop to project the negative consequences of the product. Marketing director should develop a story which supports the consumption of healthy food habits in the consumers. Clearly communicating with the customers regarding ill effects of junk food or low nutrition food that do not benefit individual anyway rather than causing the harmful effect. This tactic may help to increase the purchase of the product. The healthy product has lower fat and calories, so marketing direction can consider this. Nowadays consumers are aware of the adavantages of healthy organic food. Individual food choices depend on their interest. Having the skills to choose healthy food helps in making better decisions. So marketing directors are fast to perceive these attitude of consumers and they can design strategies according to shifts in consumer tastes.

2.3 “You can see from the testimonials that these products work”

Social proof: Testimonials serves as an important tool for a profitable business. Many customers read reviews about the product before purchasing. It is necessary to keep the confidentiality of the clients. Before using the testimonials it is necessary to take consent from the clients. It is necessary to guide the client while taking testimonials and should not draft testimonials for clients. Though testimonials are an effective tool to get the customers it should not be against rules of market conduct.

2.4 “We are prepared to pay you well if you come up with a plausible marketing campaign”

Conflict of interest &Personal integrity: It is the situation when arises when the individual's interest conflict with professional interest. This may be in the form of nepotism, self-dealing or excess compensation.

3 Three Secondary Datasets that Prajit Can Use

The secondary data sources that Prajit can use to be able to describe the current state of the health food market in Australia and whether it delivers what it promises are

1. Australian Bureau of Statistics

It is the public access data source. This provides different kinds of data. The researcher can extract here organic food categories and see its trend over the year, This will help the researcher to know about the status of the organic food market

2. Data from the Australian government website (http://data.gov.au/): Researches can extract here data related to demographic and socio-economic features. If the researcher wants to compare the organic food consumption over a different demographic and social segment he can use the data from here.
3. Statistics(Australian Government websites)

If any additional statistics that the researcher needs. He can get from here. The secondary data can be used by a researcher to address the specific business problem faced by the company. The current business problem of increasing business growth can be solved by taking into account data like consumers demographic data, time series data of food products specifically the data from subgroup organic products. The marketer can develop different clusters of customers or a different segment of customer whom they can focus on marketing strategy. They further use this data to know about future demand for this product by using various forecasting technique. Organic food sales trend can be known by calculating the compound annual growth rate. So these data provides a researcher with various opportunities to do analysis and draw insights to solve a business problem

4 Recent Trends in Organic Health Food Sales in Australia and Reasons for Purchase

In Australia's packaged food market, the organics occupy a dynamic role. During 2014 both the domestic and export organic market was estimated to be AU$1.72billion (Australian Organic Market Report 2017). Australian bureau of statistics has collected wide data related to the organic industry but a satisfactory estimate of the size of the organic industry is not possible because of several problems associated with the use of the data (Wynen 2015). According to O'mahony and Lobo (2017), though the organic industry in Australia was the third fastest growing industry during 2013-14 and since 2010 it has been reported to achieve double-digit growth rate in sales of organic products but organic industry constitutes only less than 1 per cent of the conventional food and beverage industry. O'mahony and Lobo (2017), collected data through online for the period 2014 and found out that the value of the organic industry during 2013-14 was more than 1.695 billion, Organic dealers reported that among organic products dairy products had the highest sales followed by meat, fruit, and vegetables. According to the Australian Organic Market Report (2017), the export of organic products in tonnes grew by 17 per cent in 2016. The report also cited that organic packaged food and beverages in 2017 were going to be 4.3% with a CAGR of 3.8 per cent for the period 2017-20.

The consumption of organic food as an increase over the last few areas due to its perceived benefits in terms of health, lifestyle, social, and environmental sustainability(Oroian et al.2017). Out of the many factors which influence the production and sales of organic products O'mahony and Lobo (2017) highlighted health, ethics, and trust as the important factors. Massey, O'cass, and Othal (2018) reported through meta-analysis that the organic market is driven by the perceived benefits of organic food products over conventionally grown food. They also recommended studying consumer perceptions to gain unique selling status for organic products. Orian et al.2017 identified three main groups of consumers of organic products using a factor cluster approach and stated that the reason for consuming organic products is a concern for health, weight, and sustainable consumption. The majority of the researchers indicated that apart from animal and environmental welfare health issue was the major factor in deciding customer buying behaviour for organic products (Kapuge,2016). The above studies indicated that increasing

consumer awareness of health is the main reason for purchasing organic food products. Increasing the purchasing of organic food can also be attributed to demand for the non-biotech product, pesticides free product thereby maintaining a sustainable diet (Orian et al.2017) 

5 References for Determinants of Organic Food Buying Behavior

Australian Organic Market Report.2017.Australian Organic Ltd., Nundah Qld.

Kapuge, K.D. 2016. Determinants of organic food buying behavior: Special reference to organic food purchase intention of Sri Lankan customers. Procedia Food Sci.6, 303–308.

Massey,M., O'cass, A., and Otahal, P.2018. A meta-analytic study of the factors driving the purchase of organic food.Appetite,125,pp.418-427.

Oroian,C.F.,Safirescu,C.O.,Harun,R.,Chiciudean,G.O.,Arion,F.H.,Muresan,L.C.,and Bordeanu,B.M.2017.Sustainability,9(9).pp.1559.

OTARE Policy Paper No 1601. Organic Trust Australia, Canberra.

O'Mahony, B.2017. The organic industry in Australia: current and future trends. Land Use Policy,66,pp.331-339.

Wynen, E.2016. Improving the measurement of the value of organic production in Australia.

Available at https://orgprints.org/30946/.(Accessed:3 october 2020).

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