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Korean consumers’ attitudes towards organic labels and country-of-origin of organic foods

The Journal of Distribution Science / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2011, v.9 no.1, pp.49-59
https://doi.org/https://doi.org/10.15722/jds.9.1.201103.49
Lee, Hye-Kyoung
Cho, Young-Sang
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Abstract

Although the South Korean organic food market is in the infancy compared to other industrialized countries, Korean consumers'interest in organic food and retail stores devoting space to organic products have been rapidly increasing. Despite the fact of organic food popularity, the term "organic" is interpreted differently by individuals. As opposed to the US, Japan and the EU where have operated an integrated organic food labelling system, Korea has adopted complex organic labelling systems regulated by several different government bodies. As a result, complicated food labelling standards make consumers confused when purchasing organic foods. Furthermore, in terms of country of origin (COO), it is argued by a lot of researchers that COO effects vary from product to product and from country to country; moreover, other informational cues such as brand and price can influence COO effects. In modern society, COO labelling has been complicated, due to the sourcing, manufacturing and market locations of merchandise spread over the world. Accordingly, the evaluation of COO effects has become complex. In order to examine these issues, a quantitative research was selected to classify the commonfeatures of organic food consumers and construct statistics such as the extent to which people are aware of organic food and COO labellingvia a questionnaire which took place in two cities in Korea with a cluster sample of 161 organic food purchasers. As for the data analysis, one-way analysis of variance (ANOVA), T-tests, bivariate crosstatulations with Cramer's V were conducted,depending on the characteristics of variables and the assumptions the research data need to fit. It has been concluded that in general, Korean organic consumers comprehend the term "organic"in a closer way to the general concept rather than technical term, thus people do not appreciate environmentally labels which include organic food labels, although marital status influence the degree of label awareness, regardless of gender, age, education level and so on. Regarding COO effects on organic food, home organic products were Korean consumers'first choice over those from industrialized countries and developing nations. Specifically, in processed organic product category, domestically cultivated and processed organic products were absolutely preferred to leading national brands produced with imported ingredients and international brands. However, due to a lack of checks of ingredients' COO, consumers tend to purchase a leading national organic food brand, believing that it is a pure organic food sourced domestically. As a consequence, this research has suggested some important managerial implications and future research directions. In order to prevent consumer confusion when buying organic foods, it should be noted that consumers do not comprehend the organic food certifications, due to complicated labelling systems for organic produce and processed organic foods. Therefore, government bodies related to organic food distribution have to know consumers' perception of organic food labels and the significance of customer-oriented labels and reestablish labelling standards. Similarly, public advertising should be followed to raise public awareness of the labelling to enable customers to have the correct information. In addition, not only international marketers but also domestic marketers need to understand COO images and also the influence COO of ingredients has on the image of an organic product.

keywords
consumer attitude, organic food, country-of-origin, food labels

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