Packed Organic Rice: Purchasing Behavior and Determinants of Expenditure in Phatthalung Province

Abstract

Background and Objectives: Consumer health concerns, as well as an organic agriculture policy, have recently led to an increased demand for packed organic rice. However, farmers who produce packed organic rice face many constraints, especially related to marketing knowledge. The objectives of this research were to: (1) describe consumers’ demographic and socio-economic characteristics, and their buying behavior in purchasing packed organic rice, (2) investigate consumer opinions on the marketing mix of packed organic rice, and 3) examine the factors that are important in determining the differences in expenditures on packed organic rice. Phatthalung province was selected as the study area. Methodology: Primary data were collected using structured questionnaires from a total sample of 440 consumers who bought packaged organic rice in Phatthalung province. These samples were selected using the accidental sampling technique. In the data analysis, descriptive statistics such as frequency, percentage, average, and standard deviation were used, and hierarchical regression analysis with five models. Main Results: The findings revealed that more than half of the consumers were female with an average age of 49.40 years. Their average income was 14,920.00 baht per month. The consumers bought packed organic rice from traditional retail stores, spending an average of 478.33 baht per visit. The marketing mix of packed organic rice in terms of product, price, place, and promotion were important factors. The quality of goods was the subject with the highest average and was thus the most important level. Other subjects were of high importance as well. Model 5 was the best model. Age was the only statistically significant negative variable in determining expenditure on packed organic rice. On the contrary, statistically significant positive variables in determining the expenditure on packed organic rice were mainly occupation, income, health problems, reference group, and quantity of packed organic rice bought. Discussion: The consumers ate organic rice directly. As a result, the quality of the goods, including texture, cleanliness, and scent, were important factors that influenced the consumers to repurchase. Packed organic rice is a health-promoting product. It contains no chemical residue and can lower the risk of foodborne illness. Therefore, the consumers from Generation X and newer generations, including those whose main occupation was not in the agriculture sector, bought packaged organic rice. In addition, increased income boosts consumers' ability to pay for and demand high-quality goods. Moreover, these consumers search for information, which can be obtained by word of mouth from individuals close to them. Conclusion: Based on the findings, it is suggested that packed organic rice farmers should use the “QIC” strategy. It consists of quality, image, and convenience to generate health value and convenience for consumers.