2001, Volume 9, Paper 8

ISSN: 1883-5675

How to Increase Organic Food Sales: Results from Research Based on Market Segmentation and Product Attributes

David Pearson – School of Marketing and Management University of New England Armidale, NSW 2351 Australia

Abstract

his paper presents results from research on organic food buyers. The empirical research is based on food buyer’s knowledge, market segmentation and the attributes of organic fresh fruits and vegetables. Almost all food buyers have an accurate knowledge of what organic means in relation to food. The market segmentation leads to two opportunities to increase sales of organic fresh fruits and vegetables. First, promotion that is aimed at increasing sales to existing organic buyers should emphasise the fact that this product is seen as being more healthy and of a higher quality. Second, promotion that is aimed at selling organic fresh fruits and vegetables to buyers who currently purchase conventional products has to consider two issues: the inconvenience of many organic food outlets and the higher price of many organic foods. In situations where organic food is available at convenient outlets, 20% is the maximum price premium at which a significant number of buyers will still consider purchasing it. Hence, the results from this research suggest that increasing organic food sales may best be achieved by promoting its positive health and quality aspects and making it available in convenient retail outlets at a maximum price premium of no more than 20%.

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