BIBLIOGRAPHY MARCOS, FERLINDA A....
BIBLIOGRAPHY


MARCOS, FERLINDA A. APRIL 2013. Market Segmentation of Organic
Vegetables’ Consumer Market in La Trinidad, Benguet.Benguet State University, La
Trinidad, Benguet.

Adviser: Samuel L. Duyan, BSc.

ABSTRACT

The study was conducted at the BSU organic market and at La Trinidad Organic
Practitioners (LaTOP) organic market from January to February 2013 to identify the
market segment of organic vegetables’ consumer market and the relationship of the
different variables such as demographic, psychographic, geographic and behavioural.

Majority of the respondents are old, female, college graduate and with monthly
income of 5,000 and below. The consumers’ perception on organic vegetables is clean and
safe, it’s their decision to consume organic vegetables since it is free of chemicals, and
most of the consumers are Cordilleran. Accordingly, organic vegetables have many health
benefits and it is clean and safe. About majority of the respondents buy organic vegetables
in LaTOP and they consume it once a week.

The following shows significant relationship: age, educational attainment,
occupation and region are significant to consumer’s perception, factors that influence them
to buy organic vegetables, loyalty status and frequency of consumption and benefits of
organic vegetables. On the other hand, age to the factors that influences consumers in
Market Segmentation of Organic Vegetables’ Consumer Market in La Trinidad, Benguet.
MARCOS, FERLINDA A. APRIL 2013


buying organic vegetables, loyalty status on the source of organic vegetables; educational
attainment and occupation to loyalty status and region; income to the factors that influence
consumers in buying organic vegetables and benefits of organic vegetables; loyalty status
and frequency of consumption to region.



















Market Segmentation of Organic Vegetables’ Consumer Market in La Trinidad, Benguet.
MARCOS, FERLINDA A. APRIL 2013

INTRODUCTION

Rationale
La Trinidad is well known as the “Salad Bowl of the Philippines” because of the
many varieties of vegetables grown in its land. It is one of the municipalities of Benguet
that promotes the production and sale of organic food.
Every Filipino knows that vegetables are one of the most important products in the
Philippines. It could hardly be overestimated because majority produce and eat vegetables
for they are informed that vegetables are rich in vitamins and nutrients. Organic farming is
becoming a popular response to health and environmental issues. It is imperative that
massive people know the existence of chemical free vegetables. The bulk of markets for
organic produce belong to consumers who are well informed and aware of organic food.

According to Kotler (2000), a market segment consists of a large identifiable group
within a market with similar wants, purchasing power, geographical location, buying
attitudes or buying habit.

In this modern world, people nowadays are more conscious of their health, and
businesses segment its market so that it can respond more effectively to the wants of the
buyers or the prospective buyers, thus, increase its sales and profit. Segmentation is
important to know the different characteristics of different consumers as to their age,
gender, personality, motives, occupation, and their perceptions towards organic vegetables.
This study aimed to identify the market segment of organic vegetables consumer in
terms of demographic, psychographic, geographic and behavioural characteristics, and to
Market Segmentation of Organic Vegetables’ Consumer Market in La Trinidad, Benguet.
MARCOS, FERLINDA A. APRIL 2013

identify the relationship among the different consumer characteristics as to demographic,
psychographic, geographic and behavioural.



REVIEW OF LITERATURE

Market Segment Defined

A market segment is the process of dividing the market into groups of similar
consumers and selecting the most appropriate groups for the organization to serve. Markets
are selected on the basis of their size, their profit potential, and how well they can be
defined and served by the organization (Certo and Paul Peter, 1988)

It is a group of present or potential customers with some common characteristics
which is relevant in explaining (and predicting) their response to a supplier’s marketing
stimuli. Since virtually every market that is made up of more than one potential buying
organization could conceivably be divided or segmented, the industrial marketer must
understand the requirements for successful segmentation (Hutt and Speh, 1992).

Market

It is a group of buyers and sellers bargaining the terms of exchange for goods and
services. This can be done face-to-face at some physical location, or it can be done
indirectly through a complex network of middlemen who link buyers and sellers’ who are
far apart. It is a geographic region in which things may be sold (McCarthy, 1982).

Market Segmentation of Organic Vegetables’ Consumer Market in La Trinidad, Benguet.
MARCOS, FERLINDA A. APRIL 2013

Organic
In agriculture it is relating to or employing agricultural practices that avoid the use
of synthetic chemicals in favour of naturally occurring pesticides, fertilizers, and other
growing aids. Produced, grown or reared without the use of synthetic chemicals (Microsoft
Encarta, 2009).

Vegetables
It is a plant with edible parts, especially leafy or fleshy parts that are used mainly
for soups or salads, or to accompany main courses. It is a leafy plant usually without woody
tissue grown for an edible part that is usually eaten as part of the meal (Microsoft Encarta,
2009).

Segmentation Variables
Demographic segmentation. In demographic segmentation, the market is divided
into groups on the basis of variables such as age, family size, family life cycle, gender,
income, occupation, education, religion, and ethnicity. Demographic variables are the most
popular bases of variables for distinguishing customer groups. One reason is that consumer
wants, preferences, and usage rates are often associated with demographic variables.
Another is that demographic variables are easier to measure. Even when the target market
is described in non-demographic terms (say, a personality type), the link back to
demographic characteristics is needed in order to estimate the size of the target market and
the media that should be used to reach it efficiently (Kotler, 2000).
Market Segmentation of Organic Vegetables’ Consumer Market in La Trinidad, Benguet.
MARCOS, FERLINDA A. APRIL 2013

Age is an important segmentation variable for many products because consumer
wants change as people grow older. The use of age as the segmentation variable should be
preceded by marketing research that demonstrates that age is a meaningful variable for the
product under consideration (Schoell and Guiltinan, 1995).



METHODOLOGY

Locale and Time of the Study
The study was conducted in La Trinidad, Benguet where the respondents buy
organic vegetables specifically at the BSU organic market and at the La Trinidad Organic
Practitioners (LaTOP) market. The study was conducted from January to February 2013.

Respondents of the Study
The respondents of the study were the consumers of organic vegetables in La
Trinidad, Benguet. There were a total of 100 respondents selected randomly.

Data Collection
A survey questionnaire was used as a tool in data gathering. This was given
personally to the respondents by the researcher. Personal interview was also done to gather
other information needed.


Market Segmentation of Organic Vegetables’ Consumer Market in La Trinidad, Benguet.
MARCOS, FERLINDA A. APRIL 2013

Data Gathered
The data gathered included the market segments for organic vegetables in terms of
demographic, psychographic, geographic, and behavioural.


Data Analysis
The data and information gathered were tabulated using simple statistical tools such
as frequency counts and percentage. Respondents were grouped according to demographic,
psychographic, geographic, and behavioural characteristics. Pearson chi square was also
used in correlation.














Market Segmentation of Organic Vegetables’ Consumer Market in La Trinidad, Benguet.
MARCOS, FERLINDA A. APRIL 2013


RESULTS AND DISCUSSION

Demographic Segmentation

Table 1 presents the demographic segmentation of consumer of organic vegetables
in La Trinidad, Benguet. The market is divided into groups on the basis of several variables
such as age, gender, family size, educational attainment, occupation, and income. It is the
popular bases for distinguishing customer groups (Kotler, 2000).

Age. According to Schoell and Guiltinan, age is an important segmentation variable
for many products because consumer wants change as people grow older. Table 1 implies
that majority of the consumers of organic vegetables are the old people (61%) since they
tend to be more conscious and that they are more likely prone to sickness and that their
body needs more nutritious and clean food that helps in keeping them strong.

Gender. Table 1 shows that majority of the consumers (67%) of organic vegetables
are female. The data indicates that females are more health conscious than males.

Educational attainment. As shown in Table 1, seventy four percent of the
consumers have attained college education. This result associates educated people with
higher income who prefer more quality products. In addition, 16% of the consumers have
finished high school, 3% finished elementary, 6% took vocational and only 1% has no
formal education.

Occupation. Consumer’s spending pattern may be affected by their occupation; it
is one factor that measures a person’s social class. People with better occupation can spend
more money than the others who have work with least income. It can be observed from
Market Segmentation of Organic Vegetables’ Consumer Market in La Trinidad, Benguet.
MARCOS, FERLINDA A. APRIL 2013

Table 1 that about majority are working as self-employed (42%), 9% are private employee,
23% are government employee and 26% are students.

Monthly income. Table 1 also presents the monthly income of the respondents,
those earning from 6,000-10,000 have 18%, 11,000-15,000 have 10% and those with
16,000 and above monthly income have 25%. However, a great number (47%) of those
who are earning 5,000 and below are also observed as being consumers of organic
vegetables which may imply that the level of income does not necessarily determine the
buyer of organic vegetables. They consumed such product as this is clean, safe and more
nutritious.

Family size. Table 1 further shows the family size of the consumers, majority (58%)
have 4-6 members, 24% have 1-3 members, 13% have one to nine members and 5% have
ten members and above.











Market Segmentation of Organic Vegetables’ Consumer Market in La Trinidad, Benguet.
MARCOS, FERLINDA A. APRIL 2013


SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

Summary

The study was conducted at BSU organic market and at La Trinidad Organic
Practitioners (LaTOP) market, to identify the market segment of organic vegetables’
consumer market in terms of demographic, psychographic, geographic and behavioural
characteristics and to identify the relationship among the different consumer characteristics
as to demographic, psychographic, geographic, and behavioural.
Demographic segmentation includes the personal profile of the respondents as to
their age, gender, educational attainment, monthly income and occupation. Psychographic
segmentation involves the perception of consumers on organic vegetables and the factors
that influence them in buying organic vegetables. Geographic segmentation includes the
region while behavioural segmentation contains the benefits of organic vegetables, loyalty
status of consumers to the source of organic vegetables and the frequency of consumption.

Results revealed that most of the respondents are old, college, self-employed,
consumers with monthly income ranging from 5,000 and below and with less family
members. Majority of the consumer’s perception is clean and safe; it’s their decision to
consume organic vegetables since it is free of chemicals. As to the geographic profile of
the respondents, most of them are from Cordillera. According to the result, organic
vegetables have many health benefits, it is clean and safe and about majority of them have
no loyalty to the source of organic vegetables. They consume organic vegetables once a
week.
Market Segmentation of Organic Vegetables’ Consumer Market in La Trinidad, Benguet.
MARCOS, FERLINDA A. APRIL 2013

Demographic has no relationship to psychographic specifically age to the factors
that influence them in buying organic vegetables and to the loyalty status of consumers to
the source of organic vegetables. There is no relationship between demographic to
behavioural and geographic specifically educational attainment, occupation, loyalty status
and region. Monthly income is also not significantly associated to the factors that influence
consumers in buying organic vegetables, benefits of organic vegetables, loyalty status and
to geographic segmentation. However age, educational attainment and occupation are
significantly associated to consumer’s perception, factors that influence them in buying,
and benefits and to region. Moreover geographic is not correlated to psychographic and
behavioural which include the perception, the factors that influence them to buy organic
vegetables, their loyalty status and their frequency of consumption. However, only the
benefits have correlation to region.

Conclusions

Based from the results and discussion, the following conclusions were derived:

1. Majority of the consumers of organic vegetables are the old, females, those who
attained college education, self-employed, with monthly income ranging from 5,000 and
below and those with 4-6 family members;

2. Majority of the consumer’s perception towards organic vegetables are clean and
safe, they are being influenced by their own decisions and they claimed that organic
vegetables are free of chemicals;

3. The respondents consume organic vegetables once a week since according to
them, it has health benefits and they trust the producers;
Market Segmentation of Organic Vegetables’ Consumer Market in La Trinidad, Benguet.
MARCOS, FERLINDA A. APRIL 2013


4. Age, educational attainment, occupation and region are significant to consumer’s
perception, factors that influence them to buy organic vegetables, loyalty status, frequency
of consumption and the benefits of organic vegetables; and,

5. The following has no significant relationship: demographic (age, educational
attainment, occupation, income) to psychographic (perception, influence), geographic and
behavioural (loyalty status). In addition, the region to psychographic and behavioural
(loyalty status and frequency of consumption) have no correlation.

Recommendations

Based from the results and discussion, the following recommendations were
derived:
1. The respondents should continue to consume organic vegetables to maintain their
body healthy and strong since organically grown vegetables are free of chemicals, clean
and safe and more nutritious as compared to conventionally produced vegetables;
2. The marketers of organic vegetables should consider the consumer’s market
segment of the product to effectively and efficiently provides the needs and wants of this
particular segment specifically the demographic (age, gender, educational attainment,
occupation and monthly income), psychographic specifically consumer’s perception on
organic vegetables, influence, and the factors that influence them to buy organic
vegetables), region and behavioural (benefits of organic vegetables, loyalty status on the
source of organic vegetables, and frequency of consumption); and,
3. The organic producers should continue to produce organic vegetables to provide
the needs of consumers for a safe and clean, more nutritious and chemical free vegetables.
Market Segmentation of Organic Vegetables’ Consumer Market in La Trinidad, Benguet.
MARCOS, FERLINDA A. APRIL 2013


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Market Segmentation of Organic Vegetables’ Consumer Market in La Trinidad, Benguet.
MARCOS, FERLINDA A. APRIL 2013