Consumer Preference Analysis of Organic Products in Giant Express Retail Store Malang City Indonesia

Abstract

Organic products demand is increasing since more consumers are already aware of their health, but in Malang City the amount of retail stores which sell organic products is considered small. Giant Express Pulosari which was established in 2009 is one retail store that sells organic products. One of the ways to maintain its customers based on consumer buying decisions is to find out the factors that influence consumer preferences for organic products. The purpose of this study is to determine the effect of product attributes towards consumer preferences and buying decisions on organic products. Data collection was executed by distributing questionnaires and interviewing 100 respondents who had bought and consumed organic products sold at this retail store. Data gained then were analyzed by using SPSS 17.0 and Smart PLS 3.2.0 software. The results of this study indicate that the variables of product attributes significantly influence consumer preferences and buying decisions. Consumer preference is able to mediate the relationship between product attributes and buying decisions. The most influential indicator of product attributes variables is packaging design. The most influential indicator on consumer preference variables is price. Meanwhile, the most influential indicator on buying decision variables is consumer needs.