Organic Food Consumption Market in China - Research Proposal Example

An analysis of the groups on organic food consumption market in China: a case study of the URBN hotel in Shanghai, China. Contents Contents 2 Introduction 5 Background information 5 Purpose of this research 5 Rationale 6 Concept of the study 6 Context of the study 7 Gap in this research 7 Benefit/value of the study 8 Literature Review 8 Motivation 8 Consumer Behaviour 10 Social Identity Theory 12 Linkage 13 Methodology 14 Epistemology 14 Approach 14 Strategy 15 Time Horizon 15 Research Method 16 Population and sampling 16 Ethical Considerations 17 Consent 17 Deception 17 Debriefing 17 Withdrawal from the investigation 18 Confidentiality 18 Protection of participants 18 Observation research 18 Giving advice 18 Research undertaken in public places 18 Data protection 19 Animal Rights 19 Environmental Protection 19 References 19 Introduction Background information Consumer behaviour is a significant driver of the success of companies and businesses across the world. Consumer behaviour is a multi-dimensional and evolving concept that is influenced by a number of internal and external factors and in turn impacts the marketing processes and saleability of various goods and services in different types of markets. Consumer behaviour is decided by a number of underlying factors like the motivation, interests, social and ethical consciousness of the consumers. These factors may be external as well as internal factors. The dimension of concern for the earth as a planet has been a new addition to the factors that decides on the inclination and interest of the local as well as global consumers towards the purchase of various goods and services. Purpose of this research The main purpose of this research is to evaluate and analyze the impact of different environmentalist groups on the market of organic food consumption in China. This is identified to be primary aim for the research. Other than the primary aim, certain research objectives have been formulated for the study. The research objectives are given as follows: To study the different dimensions of green consumer behaviour as important concepts among both the consumers as well as the companies. To map the green consumer behaviour with the emergence and subsequent success of the carbon neutral and eco-friendly hotels like the URBN hotels in Shanghai, China. To present suitable recommendations as to how the restaurants of the URBN Hotel in Shanghai, China can be made more developed and sustainable in the future. Rationale Green consumer behaviour has already become a popular concept in the developed markets. Also, it is rapidly gaining more importance in the emerging markets of the world due to the fast convergence of the local and global markets. China being a powerful emerging nation, sustainability of companions in the country has assumed a more important role. Therefore, new environmental concepts related to sustainability are being focused on by the domestic as well as the international companies operating in the country. The merging notion of green consumer behaviour is a revolutionary concept that has caused the absolution of many environmentally harmful products and services and opened up the opportunities for many environmental friendly businesses like organic food items etc. Therefore, this area of study seems to be a highly relevant topic for researching on and is expected to add value to the existing literary works in this domain. Concept of the study The concept of the research is based on consumer behaviour and marketing. The role of different environmentalist groups like the go green groups in emerging economies like China are considered for the research. The concepts of motivation, needs and other dimensions of consumer behaviour have also been focused on in this study. Consumer preferences are dependent on different determinants like social strata, consciousness, income distribution, education level, availability of products and services etc. Also, the presence of groups which support the environment and the influence of these groups in the society are also significant concepts for the case research. Thus, the internal and the external drivers of consumer behaviour are studied and appropriately linked to the research area. Context of the study The study is conducted on the basis of the impact of the environmentalist groups on the organic food markets in China. In this context, the example of the URBN Hotel Group in Shanghai, China is used as a case study. The URBN hotel is the first emission free hotel or carbon neural hotel in China. Shanghai is the largest populated city in China and can boast of the highest level of education in the country. The concerns of the Chinese people towards safe food and the awareness regarding the benefits of organic food items are widely recognized. As such, the focus on environment friendly products like organic foods is more visible in this market. This can be regarded as one of the main reasons of the success of eco-friendly establishments like the URBN hotels in the country. Gap in this research A number of studies have been carried out in recent years in the domain of eco friendly products like organic food, marketing of green products, adoption of green marketing concepts like green consumer behaviour etc. A number of research works have also been presented regarding the global as well as the Chinese organic food market. However, much less amount of research has been carried out on the impact of the changing patterns of consumer behaviour in the organic food market of China when in reality the emergence of green purchase patterns is identified to be one of the most influential drivers of the green purchasing behaviours which has boosted the sales and popularity of items like organic food products. Benefit/value of the study The research is carried out on a much disused domain of study. The topic chosen is also critically important for both the marketers of food items as well as the local consumers of China and the global consumers across the world. This research is expected to add value to the consumers and companies by identifying the demand levels and providing a deeper insight into the organic food sector within the food and beverage industry of China. This study can also be expected to act as a reference source for forecasting the future of green purchasing in the country. Literature Review Many literary works have been prepared and presented over the years on the domain of consumer behaviour. Over years, different academicians and scholars have studied the topic of green consumer behaviour. The evaluation of purchasing behaviour processes on the basis of the introduction of the go green approaches taken up by both the customers and the companies selling their products and services is an interesting area of study. Motivation As per the views of Schiffman, Kanuk and Hansen (2012), motivation plays a significant role in consumer purchase decisions (Schiffman, Kanuk and Hansen, 2012). Motivation is the inner drive within human beings that represents goal directed interest. In the context of consumer behaviour, the result of motivation is the inherent or induced desire for any product, service or experience. Motivation in consumer behaviour is aimed at driving the satisfaction of different types of psychological as well as physiological needs and wants through the purchase and consumption of products and services. According to the work of Kardes, Cronley and Cline (2011), there are five main stages of motivation generation in the aspect of consumer behaviour. These are latent need, drive, desire or want, goal and behaviour (Kardes, Cronley and Cline, 2011). Chan (2001) has proposed that the process of motivation in consumer purchasing and decision making behaviour can be explained through the use of the Maslow’s hierarchy of needs theory. This theory indicates that motivation is an avenue of satisfying the requirements, desires and needs of human beings. Abraham Maslow has stated in his theory that there are basically five types of needs among human beings that give rise to motivation. The basic level of need includes physiological needs like water, food, oxygen, sleep etc. The second level includes normalcy, shelter, security etc in everyday life. The third level of needs as specified in the Maslow’s hierarchy of needs includes the need of love, affection and acceptance in the family and society life. The fourth level includes the need for self esteem and social status. If all these needs are fulfilled, the human being reaches the level of self actualization in which he feels the need for realizing his own ambition and potentials. All these levels of needs play different roles in influencing the purchase decisions of individual consumers. Figure 1: Maslow’s hierarchy of needs (Source: Chan, 2001) Consumer Behaviour As identified by Bodur and Sarigollu (2005), concerns over the negative impacts of businesses on the environment have been an important topic of discussion among environmentalists across the globe (Bodur and Sarigollu, 2005). Recently, the companies and businesses have also started taking much interest in the impacts of their business activities on the environment, especially due to the pressing need of being environmental friendly in order to attain sustainability. It can be identified from the work of Solomon (2006) that there are two central actors in the domain of mainstream consumer behaviour and environmental concerns (Solomon, 2006). These two central actors are consumers and businesses and they both contribute to the problems as well as to parts of the solution. According to Wright (2013), the individual customers are becoming more focused towards incorporating green factors or environmental factors in their buying patterns. As per the work of Chan and Lau (2000), this is mainly because the influence of the social and environmental protection groups like the go green groups have been increasing at a steady rate due to the highly noticeable negative impacts on the environment caused by different multinational companies in the emerging nations (Chan and Lau, 2000). Consumer behaviour in the modern world is recognized to be more responsible and more conscious, especially with relation to the community, society and the environment of the market. Grundey (2009) has pointed out that new concepts like eco-labelling of products and eco marketing are becoming more and more popular among the global consumer groups. According to the work presented by Gulbrandsen (2006), the modern consumers who display a green purchase behaviour focus more on the ecological properties of the products and services as well as the ecological performances of the companies rather than on the other attributes of products like price, quality and value (Gulbrandsen, 2006). According to the views of Leonidou and Leonardo (2011), consumer behaviour is impacted through many ways by the rising environmental concerns (Leonidou and Leonardo, 2011). Cerjak, Mesić, Kopić, Kovačić and Markovina (2010) have stated that these include the purchase of environmental friendly products, consuming locally, consuming less, sharing and recycling as the main ways to improve green consumer behaviour (Cerjak, Mesić, Kopić, Kovačić and Markovina, 2010). As per the work presented by Al-Khatib, D’Auria, Stanton and Rawwas (2003), green consumer behaviour has many determinants like changing customer values, demographic factors like age, gender, education level, income level etc., environmental attitudes and consciousness as well as other psychographic factors like the knowledge regarding environmental problems and impacts, personal relevance and perceptions, identification of alternative products etc. (Al-Khatib, D’Auria, Stanton and Rawwas, 2003). Also, the ability of an individual to make a substantial contribution to the environment is another main determinant of the level of green consumer behaviour and green product and service purchases. According to the work of Bhate (2002), the role of quality and price is restrained in green consumer behaviour while the role of environmental impacts and environment friendliness is more highlighted in the green purchase decisions (Bhate, 2002). Other factors like consumer beliefs regarding the environmental performance of a company, eco-labels and psychological factors like value, norms and beliefs, planned behaviour, reasoned action and motivation versus opportunities also impact green consumer behaviour to a high extent. The major purchasing decisions of consumers are made on the basis of the cultural factors, social factors, psychological factors and personal factors. Ahmad, Shah and Ahmad (2010) have identified in their work that in green purchasing behaviour, the personal factors and the social factors are comparatively more influential than the other two factors (Ahmad, Shah and Ahmad, 2010). As per the work of Chamorro, Rubio and Miranda (2009), consumer behaviour is a concept that has been developed on strongly proven theories like the social identity theory which can be used to establish suitable linkages between the environmental consciousness and the changing patterns of consumer behaviour (Chamorro, Rubio and Miranda, 2009). Social Identity Theory According to Hogg and Terry (2014), social identity theory is a theory related with the individual self concept. Authors have stated that this theory is significantly important for the intergroup behaviours. Status differences, ability to move from one group to another group and perceived legitimacy is significantly important factors related wit this theory. The authors have categorically stated that different group’s gives human being a sense of self esteem and glory to the people. It is being observed that human being has tendency of increasing their self images by increasing the images of the group. Authors have commented that social categorization is a result of this theory. The theory is significantly important as far as the various reasons of the intergroup discrimination are concerned (Hogg and Terry, 2014). According to Schwartz, Luyckx and Vignoles (2011), members of a group will try to find negativity in other groups. Authors have commented that in this way people try to enhance their self images. According to this theory, there are three psychological processes are there to evaluate other people. Those three processes are social categorization, social identification and social comparison. According to the authors, social categorization is being done for identifying and understanding the objects. According to this theory, group membership is not at all an artificial factor. According to the authors, people are committed to achieve and maintain positive images about themselves. They also said that, the theory is a combination of social identity theory and self-categorization theory (Schwartz, Luyckx and Vignoles, 2011). Linkage All the above theories are clearly articulating that consumer behaviour is a study of the individuals, organization and groups. All the theories have categorically articulated that the process is generally used for the purpose of secure, select and for disposing the products or services. In the different theories one thing is clear that psychology, sociology, anthropology, social marketing and economics are combined together. It has been observed that understanding consumer behaviours are significantly important for understanding the buying behaviours of the customers. It also helps to understand the contribution of emotions in terms of customer’s buying decision. Consumer behaviours focus towards the characteristics of the individual and group behaviours. As far as the social identity theory is concerned, attitude is an inseparable part of the consumer behaviours. Consumer behaviour is a significantly important matter which can influence the buying behaviours of groups as well. It has been observed that all the above theories have a common linkage i.e. consumer behaviour is the ultimate decision making process which influences the purchasing decisions of the customers. In the modern day business identifying consumer behaviour is significantly important and necessary. All the theories have admitted the complexity of this psychological factor related with the consumers. It has been noticed that the factor is similarly important for individuals, groups and organizations (Brown and Gaertner, 2008). Methodology The research methodology is carefully selected for the study so that appropriate data can be collected and interpreted to attain the pre-defined aims and objectives of the research. Epistemology The research process mainly follows the research philosophy of epistemology. Epistemology is the study of justified belief and knowledge. Epistemology is taken up in the form of two steps which include the identification and analyst of the nature of knowledge and that of the extent of the presence of this kind of knowledge. Epistemology focuses on propositional knowledge i.e. the knowledge which has been placed or is existent in the domain of study and does not make use of acquaintance knowledge or procedural knowledge (Solomon, Bamossy, Askegaard and Hogg, 2009). Approach The research approach used is a mix approach in which both qualitative as well as quantitative research approaches have been used. This research approach is commonly known as a pragmatic research approach and involves the use of a combination of qualitative and quantitative research techniques. This is aimed at evaluating the possibilities of data collection and data interpretation from all possible dimensions and getting the most relevant and valid results from the research process (Saunders, Lewis and Thornhill, 2012). A pragmatic research approach is selected for the study because the researcher recognizes that every research approach, procedure and technique has its own associated limitations. Also, each of the research designs, approaches, methods and techniques may act as complementary techniques which can result in the generation of most accurate and relevant data and the suitable interpretation of these data. The quantitative and qualitative methods are used simultaneously so that both the quantifiable and non-quantifiable data can be collected and interpreted for the case research. The qualitative study is carried out through the use of a survey method for collecting primary and secondary data. The use of primary research techniques is done for the purpose of collecting both measurable and non-measurable primary data from the selected group of respondents. Strategy The research strategy involves the narrowing down of the research area and correlating the selected topic of research with the related areas of the research. The deductive approach of research is considered to be the most suitable research strategy for the case research. The deductive approach is used because the focus of the research is on identifying the influences of the environmentalist groups of the society on the consumer buying preferences and patterns on certain kinds of products. In this research, the impact of the go green groups on the organic food products market of China is evaluated through an analysis of the sales of the organic food items in the restaurant of the URBN group of Hotels based in Shanghai, China. Therefore, the research will take up a deductive and epistemological strategy in which interpretations and deductions will be made on the basis of existent knowledge and information. Time Horizon As per the research onion prepared by Saunders, Lewis and Thornhill, the time horizon layer is the final layer of any research methodology (Saunders, Lewis and Thornhill, 2012). It is important to decide on the time horizon of the research before the researcher undertakes the analysis of the core concepts involved in the study (Bamberger and Pratt, 2010). Research Method The research method includes the collection of both primary and secondary data collection techniques. The primary data is collected through a questionnaire administration technique and through the use of semi structured interviews conducted with the selected respondent group. These techniques are used as significant data collection methods followed under the survey strategy of research. The semi-structured interviews are aimed at collecting the relevant qualitative data for the study and for getting an explorative view into the research. On the other hand, the questionnaire is used as a data collection tool to gather mainly quantitative data that would be interpreted on a measurable scale. The use of two types of survey strategy which are semi structured interviews and the questionnaire administration are aimed at gathering data that are valid and relevant for the study under consideration (Solomon, Marshall, Stuart, Barnes and Mitchell, 2013). Population and sampling Population and sampling can be considered to be one of the most efficient measures in the research study. As per the research aim it is evident that these methods would be employed to gather information so that impact of “go green” groups can be identified on consumer behaviour. The research would be conducted in one of the supermarkets based in Shenzhen, China. This will help to analyze the various dimension of consumer behaviour. The major objective behind incorporating this research method is to incorporate widespread data so that views or opinions of different individual can be thoroughly analyzed (Ghauri and Grönhaug, 2005). On the other hand the researcher has focused on super market areas so as to gather maximum data related to the topic. The sampling method which has been chosen by the researcher is an efficient tool as it helps to analyze diverse data. Clustered sampling method would be employed in this particular research study (Ardilly and Tille, 2006). In order to perform this mechanism population will stopped at every possible exits of supermarket so as to ask them about the concept of organic food. Those respondents who are found to be knowledgeable about organic food are then asked to fill out the questionnaire. The researcher will even ask permission from the respondents so that they can be contacted in future for interview on desired topic. The population and sampling will be done on 100 respondents. There would be no such discriminating factors encompassed in sampling method as the main aim is to gather diverse data (Cooper, 2003). However there will be one such discriminatory issue in this method which is holding sufficient knowledge regarding organic food. Ethical Considerations Consent Consent needs to be obtained from all the participants before they are actively involved in the project and must sign the documents in their own language. Deception There should be proper description related to the problems which may result due to deceptive approach being incorporated in the research study. Debriefing This comprise of the ways through which participants would be debriefed. A proper document would be attached along with oral debrief comprising of instructions. Withdrawal from the investigation The participants should be well informed that they are allowed to leave the research study whenever they feel without any form of jeopardizing. Confidentiality The level of confidentiality needs to be maintained throughout the study by protecting the data which is being collected and by taking required consent before using any form of personal data. Protection of participants This comprises of emotional, physical and psychological risks which a participant is entitled to and which might cause great harm. Observation research This factor states how privacy and cultural values of individuals will be taken into consideration if certain observational research is to be conducted without any prior consent. Giving advice Students should not provide advice but it is their responsibility to refer all the participants to certain qualified professionals. Research undertaken in public places There should be proper care taken in respect to the impact created by the research study on public places. Data protection The research study must comply with the University’s Good Scientific Practice and Data Protection Act. A participant information sheet needs to be developed and maintained by the researcher. Animal Rights The research which can involve any form of dealings with animals at the University should not encompass any form of invasive procedure. Environmental Protection The negative impacts on animal welfare and natural environment needs to be reduced to the minimum level and this even should comply with current legislation. References Ahmad, H., Shah, I. A. & Ahmad, K. 2010. Factors in Environmental Advertising Influencing Consumer’s Purchase Intention. European Journal of Scientific Research, 48(2), pp. 217-226. Al-Khatib, J., D’Auria, I., Stanton, A. & Rawwas, M. 2003. Ethical segmentation of consumers in developing countries: a comparative analysis. International Marketing Review, 22(5), pp.225-246. Ardilly, P., and Tille, Y. 2006. Sampling Methods. France: Springer. Bamberger, P. & Pratt, M. 2010. Moving forward by looking back: reclaiming unconventional research contexts and samples in organizational scholarship. Academy of Management Journal, 53(4), pp.665-671. Bhate, S. 2002. One world, one environment, one vision: Are we close to achieving this? An exploratory study of consumer environmental behaviour across three countries. Journal of Consumer Behaviour, 2(2), pp. 169-184. Bodur, M. & Sarigollu, E. 2005. Environmental sensitivity in a developing country: consumer classification and implications.  Environment and Behaviour, 37(4), pp.487-510. Brown, R. and Gaertner, S. 2008. Blackwell Handbook of Social Psychology: Intergroup Processes. New York: John Wiley & Sons. Cerjak, M., Mesić, Ž., Kopić, M., Kovačić, D., & Markovina, J. 2010. What Motivates Consumers to Buy Organic Food: Comparison of Croatia, Bosnia Herzegovina, and Slovenia?  Journal of Food Products Marketing, 16(3), pp. 278-292. Chamorro, A., Rubio, S., & Miranda, F. 2009. Characteristics of Research on Green Marketing.  Business Strategy and the Environment, 18, pp. 223-239. Chan, R. 2001. Determinants of Chinese Consumers’ Green Purchase Behaviour. Psychology & Marketing, 18(4), pp.389-413. Chan, R. Y. K., & Lau, L. B. Y. (2000). Antecedents of green purchases: A survey in China. Journal of Consumer Marketing, 17(4), pp. 338-357. Cooper, R., 2003. Business Research Methods. New York: McGraw-Hill. Ghauri, P., and Grönhaug, K., 2005. Research Methods in Business Studies. London: Prentice Hall. Grundey, D. 2009. Eco-marketing and eco-labelling: does it ensure customer loyalty for eco-products in Lithuania? Transformations in Business & Economics, 8(1), pp.152-179. Gulbrandsen, L. 2006. Creating markets for eco-labelling: are consumers insignificant? International Journal of Consumer Studies, 30(5), pp.477-489. Hogg, M. A. and Terry, D. J. 2014. Social Identity Processes in Organizational Contexts. New York: Psychology Press. Kardes, F. R., Cronley, M. L. & Cline, T. W. 2011. Consumer behaviour. Mason: South-Western. Leonidou, C., & Leonardo, L. 2011. Research into environmental marketing/management: a bibliographic analysis. European Journal of Marketing, 45(1/2), pp. 68-103. Saunders, M, Lewis, P. & Thornhill, A. 2012. Research Methods for Business Students, 6th edition. New Jersey: Pearson. Schiffman, L., Kanuk, L. & Hansen, H. 2012. Consumer Behaviour: A European Outlook, International Edition (2nd Ed.). Upper Saddle River: Pearson. Schwartz, J. S., Luyckx, K. and Vignoles, V. L. 2011. Handbook of Identity Theory and Research. London: Springer Science & Business Media. Solomon, M. R. 2006. Consumer behaviour. Harlow: Financial Times/Prentice Hall. Solomon, M. R., Bamossy, G., Askegaard, S. & Hogg, M. K. 2009. Consumer Behaviour: A European Perspective, (4th Ed.). London: Prentice Hall. Solomon, M., Marshall, G., Stuart, E., Barnes, B. & Mitchell, V. 2013. Marketing. Real People, Real Decisions, 2nd ed. Harlow: Pearson. Wright, R. 2013.Consumer Behaviour, Applications in Marketing (2nd Ed.).London: Sage Publications Ltd. Read More