Advances in Economics and Business Vol. 4(3), pp. 132 - 140
DOI: 10.13189/aeb.2016.040303
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Indonesian Consumers' Attitudes towards Organic Products


Budi Suharjo 1,*, Muchlis Ahmady 2, Mohammad Reza Ahmady 3
1 Department of Mathematics and Graduate School of Management and Business, Bogor Agricultural University, Indonesia
2 Alumni of Graduate Program of Management and Business, Bogor Agricultural University, Indonesia
3 Alumni of MA Marketing Management, Middlesex University, United Kingdom

ABSTRACT

The increased public awareness of health in recent decades was expected to have positive impact on the increase in demand for organic food products. It is because these products are produced using natural farming system, which produces healthier and safer foods for consumption. But over time, the number of consumers of organic products in Indonesia tends to stagnate. This means that the initial assumption stating that there would be growing demand for organic products was not fully proven. Many researchers have revealed these conditions, where price is one of the crucial factors that inhibit the acquisition. This research aims to uncover other factors that influence consumers’ attitudes towards organic food products, as well as to discover the price level at which people are starting to willingly buy the products. This research was conducted in several shopping malls located in Jakarta and Bogor (West Java) from February 2012 - March 2012, covering 200 respondents who were surveyed by accidental sampling technique. The low growth of consumers for organic food products in Indonesia is caused partly by the still minimal information about the benefits of organic food products. Most people have the perception that the benefits of organic products are not different from non-organic food products and organic products are not durable. Physically, it is difficult to distinguish between organic products and non-organic products. Those who had consumed them stated that the benefits of organic products could not be perceived directly. People who are interested to consume them regularly experience difficulties in getting the products because the products are only sold in certain places, and they are not even always available at any given time. In addition, high prices become obstacles for those who are willing to consume regularly. In addition, high prices become obstacles for those who are willing to consume regularly. The price difference of up to 5% compared to conventional products is the price level considered reasonable by all consumers. While the difference up to 10%, then 80% of consumers are still willing to buy. But if the price is more expensive by 20%, only 50% of consumers who can afford to buy.

KEYWORDS
Organic Product, Awareness, Availability, Price Difference

Cite this paper
Budi Suharjo , Muchlis Ahmady , Mohammad Reza Ahmady . "Indonesian Consumers' Attitudes towards Organic Products." Advances in Economics and Business 4.3 (2016) 132 - 140. doi: 10.13189/aeb.2016.040303.