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Urban consumers' choice of optimal and suboptimal products: Organic and Non-Organic Food Choices

Authors:

S. P. Premaratna ,

University of Colombo, LK
About S. P.
Department of Economics
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L. J. Machado,

U. S. Embassy Colombo, LK
About L. J.
Economic Analyst
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M. N. Gunawardena

Hayleys PLC, LK
About M. N.
Manager
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Abstract

This paper aims to investigate consumer choices among different segments of people when purchasing fresh products and it further explores how visual appeal, price, and information play a role in consumer choice. A quantitative study with an online choice experiment was carried out on a convenience sample of 90 respondents. A chi-square test for independence was used to find if the product choice is dependent upon visual appeal and price, a McNemar Test to find if an information nudge can change a consumers’ choice, finally, a linear regression analysis was performed to see how purchase decision varies between the segment groups of age, gender, education, income, and household composition. This study reveals that Sri Lankan consumer preferences for optimal products over sub-optimal products. Further, the price (discount) of fresh produce has an impact on the consumers' choice and consumers can be influenced (nudged) to make certain purchase decisions. Moreover, consumers' purchase decisions of optimal or sub-optimal products are not influenced by certain socio-demographics (gender, age, income, household composition). These findings provide an important insight into the choice of fresh produce among organic produce and offer useful suggestions in designing marketing strategies for that particular product. Further, the study also shows how nudges can be used to make consumers choose better options. This is one of the first studies done in Sri Lanka that looks at consumer choices among different segments of people when purchasing fresh produce. The study has the potential to make an impact in consumer choices in encouraging organic consumption and sets the platform to the broader subject, wastage of fresh produce.
How to Cite: Premaratna, S.P., Machado, L.J. and Gunawardena, M.N., 2020. Urban consumers' choice of optimal and suboptimal products: Organic and Non-Organic Food Choices. Sri Lanka Journal of Advanced Social Studies, 10(2), pp.1–17. DOI: http://doi.org/10.4038/sljass.v10i2.7150
Published on 30 Dec 2020.
Peer Reviewed

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