In recent years, Vietnam economy has grown significantly, Vietnamese people have also earned higher income, especially, urban areas. Therefore, the behavior of urban consumers has been changed daily leading to the trend of reducing inferior product consumption. Nowadays, to maximize profit, many factories discharged directly waste into the environment without treatment leading to soil, water and air pollution. Especially, this affects strongly on agricultural production. tea, fruit, tea is produce without ensuring quality, food organic requirements.
INTRODUCTION
Rationale of the study
In recent years, Vietnam's economy has experienced significant growth, resulting in higher incomes for its citizens, particularly in urban areas This economic advancement has led to a notable shift in consumer behavior, with urban residents increasingly opting to reduce their consumption of inferior products.
Tea is a beloved beverage deeply rooted in Vietnamese culture, cherished for both its traditional significance and health benefits Rich in antioxidants, tea offers numerous health advantages, including cancer prevention, stress reduction, lower cholesterol levels, enhanced brain function, and support for heart health As the population and income levels rise, the demand for tea continues to grow, making organic tea an excellent choice for promoting overall well-being.
In today's industrial landscape, numerous factories prioritize profit over environmental responsibility, resulting in untreated waste being released into the environment This practice significantly contributes to pollution of soil, water, and air, with particularly detrimental effects on agricultural production Consequently, the quality and organic standards of crops such as tea and fruits are compromised, posing serious risks to food safety and sustainability.
Nowadays, to maximize profit, many factories added too many chemicals, aromatherapy, preservatives into tea Specially, pesticide residue in tea is too high which lead to poisoning.
Vietnam, with a population of 90 million, consumes only 30,000 tons of tea annually, averaging just 300 grams per person This translates to a domestic tea consumption of approximately 25,000 to 30,000 tons each year The average price of tea in the country ranges from 110,000 to 220,000 VND per kilogram, equivalent to 5 to 10 USD While efforts are underway to expand into foreign markets, the domestic market is increasingly being dominated by foreign companies, as highlighted by the Vietnam Tea Association.
Many tea producers and experts believe that the challenges in consuming organic tea significantly hinder its production growth Establishments like the Organic Tea Cooperative Nguyen Viet and Son Thanh Organic Tea Cooperative in Thai Nguyen are struggling to sell their products, often resorting to low prices similar to regular tea This indicates that most consumers still lack interest in organic tea.
Fresh tea leaves are abundant in vitamins, particularly vitamin C, known for its effective anti-inflammatory properties The distinct flavor of tea is attributed to polyphenols, which provide antioxidant and antibacterial benefits while being non-toxic Notably, Epi Gallo Catechin Gallate, a powerful antioxidant present in tea leaves, enhances these health benefits.
“A Study on Consumer Behavior Toward Organic Tea in Long Bien District,
The study on "Ha Noi City" reveals insights into the consumption behavior of organic tea in Long Bien, Hanoi Based on these findings, we propose several strategies to enhance the organic tea market in the region.
Objectives of the study
This study analyzes the organic tea consumption behavior of consumers in central Hanoi and proposes several strategies to enhance organic tea production.
- To systemize the theoretical base and empirical base about organic tea, organic tea consumption behavior
- To assess the organic tea consumption situation of people who live in Long Bien district.
- To analyze organic c tea consumption behavior and determine the factors affect organic tea consumption of Hanoi consumers
- To recommend several solutions for organic tea producers, help them complete their production process and quality to meet the consumer demand.
Subject and scope of study
- Theoretical and empirical issue about consumption behavior
•Tea consumers in central of Hanoi
•Grocery stores, super markets, etc in central of Hanoi where supply organic tea. + Object:
•Consumption process and consumption activities of organic tea.
- The study focuses on Long Bien district, Hanoi.
This study examines the current landscape of organic tea consumption and identifies consumer behavior in central Hanoi It offers valuable insights and recommendations for organic tea producers to enhance their production processes and improve product quality, ensuring they meet consumer demands effectively.
- My study is conducted from July, 2017 to October, 2017.
Research question
To clarify the research objectives, the study must answer the following question:
(1) What are basis which form the consumer behavior of organic tea in central of Hanoi?
(2) How is the situation of organic tea consumption in central of Hanoi?
(3) What factors affect the consumption behavior of organic tea of consumers who live in central of Hanoi?
(4) What should sellers and producers do to meet the demand of organic tea for consumer in the near future?
LITERATURE REVIEW
Theoretical base
The quantity demanded of any goods is the amount of the goods that buyers are willing and able to purchase
Law of demand claim that, other things equal, the quantity demanded of a goods falls when the price of the good rises (Mankiw, 2015)
Human needs represent a state of felt deprivation and encompass essential physical requirements such as food, clothing, warmth, and safety, as well as social needs for belonging and affection, and the need for individual expression These needs manifest as wants, which are influenced by cultural and personal factors Wants are articulated through specific objects that fulfill these needs, and when supported by purchasing power, they transform into demands.
Consumption is the value of goods and services bought by people. Individual buying acts are aggregated over time and space (Piana, 2001)
Consumption is normally the largest GDP component Many persons judge the economic performance of their country mainly in terms of consumption level and dynamics (Piana, 2001)
According to Walters (1974), a consumer is defined as an individual who buys or has the potential to buy goods and services from marketing institutions to fulfill personal or household needs, wants, or desires.
Consumer behavior encompasses all actions related to the buying, utilizing, and discarding of products and services This includes the emotional, mental, and behavioral reactions that occur before and after these activities Understanding consumer behavior is essential for businesses to effectively meet customer needs and enhance their overall experience.
The term, consumer can refer to individual consumers or organisational consumers Consumer behaviour is concerned with:
• Purchase activities: how consumers acquire products and services, and all the activities leading up to a purchase decision, including information search, evaluating goods and services and payment methods
• Use or consumption activities: concerns the who, where, when and how of consumption
• Disposal activities: concerns the way that consumers dispose of products and packaging; may also include reselling activities such as eBay and second-hand markets
• Emotional (or affective) responses: refer to emotions such as feelings or moods
• Mental (or cognitive) responses: refer to the consumer's thought processes
• Behavioural responses: refer to the consumer's observable responses in relation to the purchase and disposal of goods or services.
Consumer behaviour is an applied social science that analyzes human economic consumption through experimental behaviour principles This discipline merges economic psychology with marketing science, providing valuable insights into consumer decision-making processes.
Consumer behavior is often analyzed through the lens of preferences and available choices While discussions typically focus on preferences, utility functions, and their characteristics, the actual range of choices is often overlooked and simplified Understanding both preferences and the options available is crucial for a comprehensive view of consumer behavior.
Consumer behavior, as defined by Michael R Solomon (2008), encompasses the processes through which individuals or groups choose, buy, use, or dispose of products, services, ideas, or experiences to fulfill their needs and desires This behavior is characterized by a dynamic interaction between emotions, thoughts, actions, and the surrounding environment (Solomon, Polegato, & Zaichkowsky, 2008).
According to Walters (1974: 6), Human behaviour, therefore, " refers to the total process whereby the individual interacts with his environment" (Walters,
Human behaviour includes all thoughts, feelings, and actions of individuals, influencing daily decisions and motives According to Belch & Belch (1990), consumer behaviour is a subset of human behaviour, focusing on actions taken in a consumer context Walters (1974) further defines consumer behaviour as the study of specific human actions related to purchasing products and services from marketing organizations.
Walters (1974: 7) defines consumer behaviour as: " the process whereby individuals decide whether, what, when, where, how, and from whom to purchase goods and services."
Mowen (1993) defines consumer behavior as the examination of buying units and the exchange processes related to acquiring, consuming, and disposing of goods, services, experiences, and ideas This definition emphasizes the importance of both individuals and groups in the purchasing process.
Consumer behavior, as defined by Schiffman & Kanuk (1997), refers to the actions and decision-making processes of individuals when searching for, purchasing, using, evaluating, and disposing of products, services, and ideas This field of study examines how consumers allocate their resources—time, money, and effort—on consumption-related items, focusing on the what, why, when, where, and frequency of their purchases, as well as the utilization of these products Ultimately, it encompasses all behaviors related to satisfying consumer needs through various stages of product interaction.
Schiffman & Kanuk (1997) identify two distinct types of consumers: personal and organisational Personal consumers buy products and services for individual or household use, or as gifts, focusing on final consumption In contrast, organisational consumers acquire goods and services to support the operations of various entities, including profit-driven businesses, non-profit organisations, government agencies, and institutions.
Consumer behavior refers to the actions associated with acquiring, using, and disposing of products and services, along with the decision-making processes that occur before and after these actions, as defined by Engel, Blackwell & Miniard (1990) This definition is supported by more recent interpretations from Arnould, Price & Zinkhan (2002) and Peter & Olson (2002), which emphasize similar concepts in understanding consumer interactions with goods and services.
The term "organic" is the only food marketing label that has a legally defined meaning and specific regulations This designation ensures that consumers can trust certain standards when they see a product labeled as "organic." By law, this label guarantees that specific criteria are met, providing assurance about the quality and sourcing of the food.
- The food was grown without synthetic fertilizers, synthetic pesticides, or sewage sludge.
- Those crops cannot have been genetically engineered or irradiated.
Facilities that handle organic food must adhere to stringent guidelines regarding storage, cleanliness, and sanitation This includes using only approved cleaning products and ensuring that any materials that come into contact with the organic food meet specific standards.
A comprehensive paper trail exists for organic crops, documenting every stage from seed to consumer product This includes meticulous inspections, certifications, and documentation that verify compliance with organic standards Consequently, each product can be traced back to its origins, ensuring transparency and accountability throughout the entire process.
Organic farming has gained significant popularity recently, with many advocating for a return to traditional agricultural methods Unlike merely substituting synthetic fertilizers with organic ones, organic farming focuses on enhancing natural growth processes In this context, organic tea production is emerging as a new player, emphasizing the importance of nurturing healthy tea bushes and preserving natural predators of pests, diseases, and weeds to reduce crop losses This approach is complemented by modern agronomic practices to ensure sustainable cultivation.
Empirical basis
2.2.1 The situation of tea consumption in Vietnam
Vietnam is recognized as a global hub for high-quality tea, boasting a rich tea culture However, domestic tea consumption remains alarmingly low, with only 30,000 tons consumed annually among its 90 million citizens, equating to just 300 grams per person per year This figure is significantly below the potential of the domestic market, especially when compared to countries like China, where consumption reaches 1 kilogram per person per year, Japan at 2 kilograms, and Russia and Britain at over 2.5 kilograms per person per year—ten times higher than Vietnam's current consumption levels.
The Vietnam Tea Association reports that the current tea prices are lower than those in the domestic market, resulting in a diminished economic value compared to local consumption Additionally, the average price for tea exports has yet to meet expectations.
1.5USD/kg, while the average price of tea sold in the domestic is from 110 to 220,000 VND/kg (equivalent to 5-10USD/kg) Mr Doan Anh Tuan - President of Vietnam Tea Association said: Why do we have to "swim" in foreign markets with high competitiveness and left the market in "home"?
2.2.2 The situation of organic tea consumption in Vietnam
Research conducted on consumer perceptions of organic tea in Hanoi reveals that understanding and consumption behaviors vary significantly based on education, occupation, income, and age Individuals with higher education levels, particularly those employed in public service, demonstrate a greater demand for organic tea, reflecting their awareness of the benefits associated with organic consumption.
Research indicates that individuals from low-income backgrounds and those with limited education show less interest in organic tea consumption In fact, over 60% of organic tea users are affluent families, well-educated individuals, or those employed in public service roles.
Tea drinking is a cherished tradition in Vietnam, deeply embedded in the culture and daily life of its people Vietnamese households commonly serve tea to guests and enjoy it for personal consumption, reflecting its significance in social interactions On average, each person consumes approximately 0.2 kg of tea per month, totaling around 2.4 kg per year With a population of about 90 million, the demand for tea in Vietnam is substantial, highlighting its importance in Vietnamese society.
(1) Curriculum “Product consumption and some requirements of maintaining and expanding the consumption market of enterprises in the market economy”
(2010) by Vuong Van Dao, Hanoi National Economics University, mentioned some important theoretical issues on consumption of products.
The relationship between product consumption and market expansion is crucial for business growth Effective product consumption not only facilitates the reproduction process within a business but also enhances the value of the products offered Strong sales performance contributes to the development of existing markets while simultaneously exploring new opportunities Therefore, the speed of product consumption is intrinsically linked to market development; without accelerating product consumption, market expansion is unlikely to occur.
Effective product consumption involves understanding demand, identifying target markets, developing tailored product strategies, and selecting appropriate marketing methods for different market types and products It's crucial to choose the right consumption approach for each product, as this significantly influences sales A well-defined product strategy encompasses the vision, direction, and policies that guide efficient production methods and business practices, all aimed at meeting market demand and customer preferences at specific times Additionally, the development of product strategies must align with market structures, quality, quantity, and timing to ensure success.
To enhance the consumption process, businesses and localities must implement a range of supportive activities before and during production These consumer support measures play a crucial role in generating new market demands, boosting sales and profitability, and facilitating product market entry while reinforcing brand reputation Additionally, effective sales support enables businesses to guide consumers in making informed purchasing decisions that align with their income.
The curriculum from VOER (2012) at the National Economics University offers a comprehensive syllabus covering key topics such as the concept of product consumption, the significance of consumer goods businesses in society, the functions of the consumer market, and strategies for commodity consumption This textbook provides invaluable insights that enhance the theoretical understanding of product consumption, particularly focusing on tea products in Ha Giang province.
The book "Tea Tree Textbook" (2012) by Do Ngoc Quy and Le Tat Khuong serves as a foundational resource for understanding the tea consumption process in Vietnam The authors conduct an in-depth analysis of the value chain involved in tea production and processing, highlighting key insights into the industry's practices and challenges.
- consuming tea in the past time and pointed out the limitations of the consumption of tea products.
RESEARCH METHODOLOGY
Characteristics of the study site
Long Bien District, established by Decree No 132/2003/ND-CP on November 6, 2003, emerged from the separation of Gia Lam district's administrative boundaries Situated in the northeast of Hanoi, Long Bien is one of the nine inner districts of the capital, featuring a contiguous administrative boundary.
- The North borders with Dong Anh district;
- The East borders with Gia Lam district;
- The South borders with Hoang Mai district;
- The West borders with Hoan Kiem.
Picture 3.1 Long Bien geographic map
Long Bien District is strategically situated at the crossroads of key transportation routes, including railways, national highways, and waterways that connect northern and northeastern provinces This advantageous location supports the growth of the modern river port industry and meets the demands of high-tech industrial clusters, contributing to urbanization and facilitating economic exchanges As of December 31, 2015, Long Bien District encompasses a total area of 5,982.1 hectares.
- Agricultural land: 1829.4 ha, equivalent to 30.58% of natural area.
- Non-agricultural land: 4140.2 ha, equivalent to 69.21% of natural area
- Unused land: 12.4 ha, equivalent to 0.21% of natural area.
Long Bien District is situated between the Red River and the Duong River, characterized by a high trough along the river dikes The district features relatively flat topography, with elevation decreasing from the Northwest to the Southeast, following the general direction of the landscape and the flow of the rivers.
The agricultural land in the district is predominantly situated in the coastal regions adjacent to the Red River and Duong River This land is characterized by its large size and high nutrient content, which is sustained year-round by the rivers, making it ideal for cultivating both crops and short-term industrial plants.
Long Bien District, situated in the heart of the North Delta, experiences a tropical monsoon climate characterized by two distinct seasons: the rainy season from May to October and the dry season from November to April.
The area's temperature is consistently high, mirroring the overall climate of the city, with an annual average of 23-24°C The yearly temperature fluctuation ranges from 12 to 20°C, while the daily variation between day and night is approximately 6 to 7°C.
The average annual humidity is 82%, with little variation over months and ranges from 78 to 87% Annual rainfall is about 1600mm - 1800mm
In recent years, provincial departments have prioritized environmental issues by developing and implementing various environmental protection projects and programs This focus has strengthened management practices and promoted a civilized lifestyle, significantly enhancing the environmental quality in Long Bien District.
However, because of objective reasons and subjective reasons, environment of Long Bien district is still polluted and that directly effects to the health of people.
3.1.2.1 The situation of economic development
In recent years, Long Bien district has experienced significant economic growth, with an average annual growth rate of 17% In 2014, the total output of various economic sectors in the district surpassed 228,259 billion, highlighting the area's rapid and comprehensive development.
- Industry - capital construction reached 11,115 billion VND, accounting for 4.87%;
- Trade and services reached 7,144 billion VND, accounting for 3.12%;
- Agriculture reached 210 billion VND, accounting for 92.01%. a Agriculture
Agricultural production is increasingly focusing on ecological urban agriculture, emphasizing the establishment of concentrated production areas In the district, agricultural land spans 1,444.96 hectares, representing 24.11% of the total natural area.
- Agricultural land: 1347,3998 ha, accounting for 22.48% of the natural area. Specific:
- Land for aquaculture: 93,070 ha, accounting for 1.55% of the natural area.
- Other agricultural land: 4,4690 ha, accounting for 0.07% of the natural area.
Agricultural production per hectare experienced a notable growth rate of 3.2%, surpassing the planned target by 0.2% Additionally, the area dedicated to fruit trees increased to 65.5 hectares, achieving 113% of the set goal Furthermore, organic tea production has been sustained and expanded in the wards of Cu Khoi, Giang Bien, and Phuc Loi.
Disease prevention in livestock is well implemented The inspection, assessment and classification of quality of agricultural materials, agro-forestry- fishery products was initially implemented.
The cultivated area is 1438.8 hectares in 2015, reachs 114% of the plan and accounts 72.1% compared to 2012 (the area of cultivated land decreased 100 hectares compared to 2012).
The average yield of rice is 5.1 tons/ha.
The planted area of the district is 110 hectares equal to 102% of the plan (107.9ha) and equals 183% compared to 2012 (60ha).
The conversion plants cover a diverse area of 42 hectares dedicated to western bananas, 21 hectares to guavas, 7 hectares to sapodillas and mangoes, and 4.4 hectares to grapefruits Additionally, other cultivated plants include longan, papaya, oranges, Taiwan apples, Taiwanese mangoes, and peach blossoms The average production value from this crop conversion area is 180 million VND per hectare per year.
In 2015, the economic structure is set to evolve towards an eco-urban-industrial-agricultural-service model, driven by ongoing industrialization and urbanization This transformation is leading to the establishment of concentrated residential areas, which in turn is causing a significant reduction in the availability of agricultural land The focus will also be on the development of industry, handicrafts, and construction to support this growth.
Industrial production in the region has continued to grow, with a total production value estimated at VND 18,483 billion, representing a 14.72% increase compared to the plan and an overall growth rate of 11.9% The district is home to three industrial zones—Sai Dong A, Dai Tu, and Hanel—housing nearly 300 industrial enterprises across the area.
The industrial production value in the district has experienced significant growth, particularly within the individual and mixed economic sectors The non-state sector showcases a diverse range of industries, primarily focused on processing, including beverages, clothing, chemical furniture, and metal products Additionally, the service and trade sectors are integral to the region's economic landscape.
Trade in services is a crucial component of Long Bien District's economic development strategy, significantly contributing to the area's growth As urbanization accelerates and living standards rise, the district experiences a swift expansion in commerce and services Consequently, the share of trade in services has seen a remarkable increase in recent years.
Research methodology
Both primary and secondary data were chosen to collect the data that were used in analyzing the research study
The primary data was collected by observations, personal interview, questionnaires on internet and paper among tea consumers who live in Long Bien district
I chose consumers in some wards in Long Bien districts on the research is based on the following reasons:
- It is easier to collect data because of identical place.
- Long Bien is a place where it concentchè an toàned different types of citizens. Diversity of regions and family background leads to dissimilar behavior and awareness toward organic tea use.
The sample technique employed in this research was a non-probability sample method given that questionnaire on both internet and paper was distributed randomly, which gives a fair representation of thepopulation
Sample size is 60 with random sampling method.
Main research content contains: General information about consumers; awareness of consumer about organic tea; habit and behavior of consumer; accesibility of consumer to organic tea.
Secondary data consist of data retrieved from university database, such as articles, journals, literatures, study reports in addition to books borrowed from university library, or retrieve from internet, advisor.
- Instruments for data processing o Computer o Microsoft excel o Statistical Package for Social Science (SPSS)
- Statistical disaggregation: data and materials is collected, checked, adjusted, disaggregated by: o Career/job o Age o Gender o Education level
Descriptive statistic like frequency distributions, graphs, charts, cross-tabulations are used to gather and analyze data.
Descriptive statistic method is used in many socio-economic researchs The method is done by describing research indicators: absolute indicator, relative indicator,average indicator.
This method is used to evaluate and describe the reality of consumption and the factors affecting the organic tea consumption in the area.
Comparing organic tea consumption among individuals by income
Comparing by price between normanl tea and organic tea
Research indicators
3.3.1 Indicators indicate the regular tea consumption and organic tea in Long
- Situation of organic tea consumption in Long Bien district
- Supply channel of regular tea and organic tea in Long Bien district
3.3.2 Indicators indicate consumption behavior of consumers in Long Bien district
- Characteristics of organic tea consumers
- Consumption behavior of organic tea
3.3.3 Indicators indicate factors affecting consumption behavior of consumers in Long Bien district
- Affecting factors from organic tea suppliers