Issue Date: March 29, 2004 | Issue 13 | Volume 76, Posted On: 3/26/2004

Research roots out myths behind buying organic foods


        By MICHAEL HOWIE

Feedstuffs Managing Editor

WASHINGTON, D.C. -- Consumers are a fickle bunch.

When it comes to food, exercise and related health issues, they often
say one thing, tell their friends another yet do a third. In addition,
consumer surveys on attitudes and opinions of food don't always match up
to what's in the cupboard or refrigerator -- or the wrapper in the trash.

"We find that people tend to answer surveys in the way they would like
or aspire to behave," said Laurie Demeritt, president and chief
operating officer of The Hartman Group, "but the reality is different."

In surveys, consumers may say one thing about genetically modified
foods, organic foods, low-carbohydrate diets and so on. What they are
buying -- and who is doing that buying -- can be quite different and, in
some cases, be quite different than assumptions businesses may make.

In a presentation at the U.S. Department of Agriculture's Agriculture
Outlook Forum in Washington, Demeritt presented a paper on the myths and
reality of who's buying organic foods and why. The results indicate how
assumptions of the typical organic buyer are different than what some
may believe and provide a bit of insight into that ever-fickle consumer.

To conduct the study, The Hartman Group, a full-service consulting and
market research firm based in Bellevue, Wash., hired researchers,
including anthropologists, to follow consumers around -- everywhere from
the grocery store to soccer practice with the kids. Interviews and home
inspections of cupboards and refrigerators were also done.

The first myth

Myth number one: Consumers buy organic foods because of environmental
concerns.

Demeritt said yes, a segment of consumers does include "environmental
concerns" as a motivator to buy organic, but only about 26% of them.
Instead, she said, the number-one reason consumers buy organic food is
that they perceive it to be a better product, health wise, than
"regular" food. "Consumers believe it is a healthier product to give to
their family and friends," she said.

The second motivating factor is taste, which was cited as important by
38% of consumers in the research. Food safety is third at 30%.

The top two reasons -- different from motivating factors -- consumers
use organic products is their concern over pesticides or other chemicals
on the plant side and antibiotics or growth hormones on the animal side,
she said.

The main "triggers" for buying organic foods, she said, are having
children, a family member with a health condition (food allergy, cancer,
etc.) and social network influencers. Other triggers include what some
believe is common sense ("If pesticides aren't good for bugs, how can
they be good for us?") or assorted "urban myths" -- stories of potato
farmers not eating their own crops, for example.

The second myth

The second myth: The only type of organic consumer is an individual with
a high education and high income who identifies himself or herself as
Caucasian.

Demeritt said although people in that category do indeed buy organic
food, it is by far only a portion of organic buyers. She said there is a
high incidence of organic usage among African Americans and Asian
Americans as well as individuals of Hispanic decent. In fact, she said,
all three of those groups are more likely to buy organic than the
general population overall. (Those groups are also less deterred by
price and more motivated by family reasons.)

In addition, she said, more than half of "heavy" organic buyers have
household incomes of less than $50,000. (Heavy buyers purchase an
average of nine organic products per month.)

Several factors play into the role of a more diverse organic buyer,
Demeritt said. Consumers feel they don't have any control over things in
the world, she said, and food choices are something they can control,
and buying organic makes them feel like they exercised a choice. Other
factors include media attention to organic foods, a transformative life
experience (severe illness), frustration with healthcare or an
individual wellness regime.

In the world of organic consumer segments, Demeritt said, only 10% of
consumers in the U.S. would be considered "core" organic buyers. Some
people would consider this group to be "tree huggers," she said, which
some people tend to falsely associate as the main organic buyers. This
group buys mainly for "community benefits" -- buying from local
producers -- and "authenticity" -- knowing what you are buying.

"Mid-level buyers," who buy a majority of organic products, though, make
up 53% of consumers, she said. Mid-level buyers are made up of people
who buy for the "experience," Demeritt said, but also rely on "expert"
opinions when it comes to food choices. Convenience and price are also
important to this group.

"Periphery" buyers, who make up the rest of the population, buy based
mostly on price and convenience when they purchase organic goods.

All groups, she said, consider "internal benefits" (health benefits) to
be important.

The third myth

The third myth: The main reason that non-organic consumers are not
purchasing organic is price.

In reality, the number-one reason consumers do not buy organic foods is
that they "had never really considered them before," Demeritt said.
Price is second on the list, she said, but price alone isn't that
simple, as people are a bit more pragmatic about it.

For example, she said, a mother may not have a problem spending an extra
$1.50 on organic strawberries for the kids, but she won't spend an extra
dime on organic broccoli for her husband. Basically, she said, if there
is a higher price on some organic foods, it depends on which product
category that product is in and if the consumer equates a higher value
to that product.

Availability -- or a lack of availability -- is third on the list of why
people don't purchase organic food. Demerrit said the availability in a
store remains a barrier for mid-level consumers.

This doesn't only mean actual availability, but "perceived availability"
within the store. She said consumers shop habitually and are not
actively looking for new organic products. Therefore, she said, organic
products shouldn't be hidden in a "special" section of the store or
confined to a specific aisle. Organic products need to be out on the
shelf with all the other products, she said.

The fourth myth

The fourth myth: Brand recognition is high and consumers recognize
different organic brands.

This is a huge myth, Demeritt said, as more than 60% of consumers
(mostly mid-level and periphery) could not name a single organic brand.
Instead, she said, "organic" is the brand.

On the buying side, she said, consumers would much rather try organic
foods if they had the same brand name as the original. Frito-Lay, for
example, has a "naturals" line that includes organic Tostitos, Cheetos
and so on. That is more appealing to that important mid-level buyer, she
said. Campbell Soup Co. has also done this.

General Mills, however, chose not to do this with its well-known
Cheerios brand. Instead, it created the Cascadian Farm brand, which
sells "Purely O's," the organic version of Cheerios. Demerrit said
General Mills didn't want to give the appearance that regular Cheerios
were somehow inferior to the organic version.

Repeat purchases of organic brands are based almost exclusively on a
taste experience, she said.

The fifth myth

The fifth myth: The attribute of organic supercedes all other purchasing
attributes (once a consumer buys organic, he or she will stick to
organic or buy all organic foods).

Demerrit said that is not true, as consumers view purchases as a series
of tradeoffs -- making decisions about whether to buy organic on a
product-by-product basis. Consumers are looking for balance, she said,
and are buying many conventional items along with organic items.

Consumers typically start with organic produce, she said, and then "try"
other items -- such as dairy products, non-dairy products (soy milk) and
baby food. Each of those categories, and others, such as meat or canned
goods, have their own drivers, she said, and probably their own myths, too.

Copyright Feedstuffs, Miller Publishing Company


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