UNDERSTANDING DRIVING FACTORS BEHIND CUSTOMER PURCHASE INTENTION ON ORGANIC VEGETABLES FOR BETTER MARKETING STRATEGY

• Main Author: Zahra Razula, Fabia
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/78755
• Institution: Institut Teknologi Bandung

Over the past few years, the global demand of organic products has reached a new height. North America and Europe are two key Western Markets contributing to the increase of global organic sales. The trend of buying organic products not only occurs in those two countries, the same enthusiasm also can be seen in developing countries in Asia including Indonesia. Despite the fluctuate numbers published by Statistika Pertanian Indonesia 2016, Indonesia’s demand on organic products has started to rise. This study intends to better understand factors driving customers in purchasing organic vegetables. The study was conducted using quantitative approach which targets a range of 60 – 80 respondents both male and female organic vegetable customers within their productive age. In analyzing the data, the researcher uses multiple linear regression, processed using SPSS. There are four factors presented in the research that consist of health benefits, taste, environmental awareness and high purchasing power. The research comes up with taste as the biggest factor that drives customers in purchasing organic vegetable with a total percentage of 31.1%. It is then followed by customer’s environmental awareness (27.4%), health benefits (21%) then high purchasing power (21%). These data confirm the significance of four factors mentioned above in influencing customer purchase intention on organic vegetables. Using the findings, the researcher designed a new marketing strategy. The two high ranked factors are picked as a showcase or inputs to the strategy. It will promote the taste of organic vegetables in the form of tagline and content put in the packaging and other promotional materials. Changing the material of organic vegetable packaging into an eco-friendlier, will be next. The strategy is addressed to farmers and producers of organic vegetable in order to increase the number of potential organic vegetable customers.