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Consumer Perception and Purchasing Behavior towards

Organic Products in Kathmandu Valley

A Research Proposal for Summer Project

Submitted by:

Priya Shrestha

College Roll No. 14

T.U Registration Number 7-2-410-189-2018

Submitted To:

The Faculty of Management

Prime College

Khusibu, Kathmandu

In partial fulfillment of the requirements for the degree of

Bachelor of Business Administration

Kathmandu, Nepal

Aug, 2022
INTRODUCTION

1.1 Background of the study

Chemical contamination of the environment and food has become a major problem around the
world. Food and Agriculture Organization (FAO) proposed “The World Food Summit Plan of
Action (1999)” in recognition with the importance of developing alternative sustainable
agriculture such as organic farming. Organic farming is a holistic farming method that includes
technical (soil, agronomy, and weed and pest management), economic (input, production, and
marketing), and human health considerations (Doppler, et al., 2009). And according to data of
2011 of Organic Trade Association, market of organic food has grown continuously over the last
few decades, which represents a multi-billion industry.

The future of organics is dependent on the motivation of end users, but in comparison to other
countries, little is known about organic food consumers' attitudes, motives, and values that drive
their decision-making process. Therefore, it is critical to investigate the fundamental factors that
may affect consumer preferences and purchasing behavior for organic products and develop
marketing strategies to support rapid growth and development of the organic market in
developing countries like ours.

1.2 Statement of the problem

This study determines various influencing factors which encourages people to purchase organic
products. The problem towards which this study is directed is the identification of growing trend
of using organic products and determine the consumer perception in making decision for
purchasing organic products inside Kathmandu valley.

Is price only the factor or there are many other factors which are affecting the consumer’s
willingness to purchase the organic food?

Can we say health conscious is only the reason for purchasing the organic foods?

Even though highly advanced mechanisms and mediums are being developed to share
information, why do marketers lack effective marketing activities and labeling activities for
organic products despite they are better for the individual, society and community as a whole?
1.3 Objectives of study

 To study the consumer perception and purchase behavior of organic Products for
suggesting marketing strategies in Kathmandu Valley.
 To identify the major factors influencing the consumers purchasing decision of organic
products in the Kathmandu Valley.

1.4 Research Methodology

1.4.1 Research design

Since this analysis consists of surveys and fact-finding inquiries relevant to customer
understanding and buying behavior against organic products, it employs an explanatory research
methodology based on the study's own predetermined objectives. It focuses on the numerical
analysis of data obtained from the questionnaire, which is presented objectively.

1.4.2 Population of study

The unit of analysis and the target population for this study will be ordinary people living in
various parts of Kathmandu Valley.

1.4.3 Sampling Technique

Since convenience sampling is simple and easily available, this research uses non-probability,
convenience sampling method as this method is suitable for online and offline population.

1.4.4 Data collection technique

The data will be collected from primary sources through a valid and reliable questionnaire as this
method is more simple, effective and convenient. The sampling procedure that will be followed in this
study is through online platform which is Google form as this procedure is helpful to collect huge
numbers of data

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