Market Opportunities for Fresh Organic Vegetables in Los Baños, Laguna

Date

12-2016

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Nanette A. Aquino

Committee Member

Loida E. Mojica, Dinah Pura T. Depositario, Agnes T. Banzon

Abstract

This study was conducted in order to determine the market opportunities for fresh organic vegetables in Los Baños, Laguna. Specifically, the study aimed to determine the consumers’ level of awareness, perception and familiarity with fresh organic vegetables; determine and analyze the factors that can affect the consumption pattern and buying behavior of the consumers of fresh organic vegetables in Los Baños; determine the issues and challenges in marketing fresh organic vegetables in Los Baños; and formulate recommendations that will maximize the opportunities and address the issues and barriers.

This study made use of consumer and market survey, key-informant interviews along with market observation and store checks and home placement test. The market and consumer survey was composed of Usage, Attitude and Image Study (UAI) and Product Attribute Analysis. A total of 150 respondents participated in the market and consumer survey while 60 respondents participated in the home placement test.

Descriptive statistics was used to analyze the data gathered from the market and consumer survey. Chi-square test and cross tabulations were used in order to test the relationship and the significance of the frequency of consumption and buying with some socio-demographic variables. The variables are total monthly household income, age levels and perceived healthy lifestyle.

The key-informant interviews, store checks and market observations results show that there are many types of fresh organic vegetables in the market of Los Baños, Laguna. Most of the vegetables are found in supermarket and organic market/restaurants. The available fresh organic vegetables are usually pre-weighed and packed. Fresh organic vegetables are also found in public markets but these have no label.

The results of market and consumer survey show that 93.3% of the respondents are aware of the difference between organic and non-organic vegetables and most of the respondents are occasional users in terms of consumption frequency. The top three sources of information of the respondents are family, friends and school. Furthermore, the results reveal that 73.3% of the respondents are current users and use the product mostly as salad, side dish and juice.

In terms of the purchase and consumption, the respondents themselves who are mostly single and in the age level of 19-29 are the decision maker in the household followed by mother and husband/wife. Lettuce, eggplant, tomato, cucumber and bitter gourd are the top five mostly consumed fresh organic vegetables by the consumers. Most of the respondents are not regular buyers and when they buy, they usually buy in small volumes.

Chi-square test was used to test the significance of the relationships of buying and consumption frequency and volume per purchase with some socio-demographic variables. The socio-demographic variables are total monthly household income, age levels and perceived healthy lifestyle. Perceived healthy lifestyle and age levels were found to be significant with consumption frequency. Furthermore, volume per purchase was found to be significant with income while buying frequency was found to be insignificant with all the variables.

For the attribute ratings, freshness/healthy appearance got the highest rating followed by health and quality/nutritional value. Moreover, “Fresh organic vegetables are nutritious” was rated the highest for perception towards fresh organic vegetables. These results show that the health benefits and perception in eating experience are important to the respondents.

For the home placement test, the overall rating of the product has a mean of 3.43 which means that most of the respondents liked the product. The results of the questions pertaining to willingness to buy and if they will recommend the purchase are both low with 58.3% and 68.3% respectively. All the respondents for the home placement test are first time users which means that almost all of them have low awareness. The respondents cared less for the organic characteristics of the product since they have low awareness.

There are issues and problems in marketing fresh organic vegetables in Los Baños but there are also opportunities. Based on key-informant interviews with traders, the demand for fresh organic vegetables is increasing since the level of awareness and health consciousness of consumers are also increasing. The results of the market and consumer survey show opportunities in the middle to high income brackets. Moreover, it was found that the respondents within the age range of 19-29 buy more frequently and are decision makers in the household in terms of purchase of fresh organic vegetables. The perception of the consumers is also a market opportunity because based on survey results, the respondents perceive that fresh organic vegetables are nutritious and are better than non- organic vegetables. Finally, there is continuous growth in consumers’ interest on organic

Language

English

LC Subject

Vegetable trade, Market surveys

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2016 M17 R43

Notes

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Document Type

Thesis

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