Miss

Topics: Regression analysis, Organic food, Organic farming Pages: 14 (2529 words) Published: May 20, 2014
Academic writing
The Effect of the Introduction of POP Shelf Displays
on Sales of Organic Flour

Table of contents
Table of contents ................................................................................................. 0  
1.
  Introduction .................................................................................................. 1  
2. Literature review ............................................................................................ 2  
3. Methodology.................................................................................................... 3  
4. Results.............................................................................................................. 3  
4.1 Simple linear regression and heteroskedacity analysis .................................................... 3  
4.2 Correlation and residuals analysis .................................................................................... 6  
4.3 Hypothesis testing analysis .............................................................................................. 8  

5. Conclusions ..................................................................................................... 9  
References ......................................................................................................... 10  
Appendix ........................................................................................................... 12  

1. Introduction
Over the years, the awareness among the Swedish consumes for the naturally produced organic products has been high and consistently on the increase. According to (Honkanen, et al., 2006), organic foods are defined as food produced with materials and methods that enhances the ecological balance, and natural systems are used in the production.

The

momentum of consumers’ awareness in Sweden and in the wider European context has been exacerbated by a well coordinated campaign by Sweden on both ecological protection as well as sustainable development. Which according to (Peter & Rebecca, 2012), has directed correlation to both a healthy environment and a healthy living and diet. Given this background, market share for organically developed foods in Sweden, Scandinavian and in Europe is considered promising and a strong and continuous growth, according to (Ulf, 2011) is projected throughout Europe. Meanwhile, as organic markets and products are established and stabilized in Sweden and other Scandinavian countries, so is the consumption of same products and the consumers’ behaviour over time have become relatively trendy and positively related to economic development and income growth as the consumers in Sweden are seen to be less price sensitive. However, buying decisions could be greatly be influenced by environmental as well as health concerns. (Twyford-Jones & Doolan, 1998). However, the discovery of these business opportunities is not an end to itself, (Warner, 2006) maintained that large retail groceries must re-organise, modify and modernise their designs and images in order to meet the increasing demands from both urban and upscale consumers. Since new marketing strategies and technologies like online sales etc are evolving for marketing and targeting the right consumers for organic foods especially in the large retail outlet, the point of purchase display shelves or labelling (POP) for organic flour in a retail outlet has awoken the unreserved interest of researchers. This research is an attempt to verify the effectiveness, impact or otherwise of POP display technique on both consumers behaviour and on sales of organic flour in a northern Swedish large food retail outlet; hence the research question is the following: does the introduction of simple POP shelf displays increase sales of organic flour?

1

2. Literature review
According to (Data monitor, 2009) and as reported in the project conducted by (Daunfeldt &...

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Caswell, J. A. & Mojduszka, E., 1996. Using informational labelling to influence the market
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Chandon, P., Hutchinson, J. W., Bradlow, E. T. & Young, S. H., 2006. Measuring the Value
of Point-of-Purchase Marketing with Commercial Eye-Tracking Data, Fontainebleau:
Chinnici, G., D’Amico, M. & Pecorino, B., 2002. A Multivariate Statistical Analysis on the
consumers of organic product
Conner, D., 2004. Beyond organic :Information provision for sustainable Agriculture in a
changing market
Data monitor, 2009. food global industry guide. research and market.
Daunfeldt, S.-O. & Rudholm, N., 2010. Does Shelf-Labeling of Organic Foods Increase
Sales? Results from a Natural Experiment
Hack, M., 1995. Organically grown products, perception, preferences and motives of Dutch
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Honkanen, P., Verplanken, B. & Olsen, S. O., 2006. Ethical values and motives driving.
Jolly, D., 1991. Determinants of organic holticultural products consumption based n a sample
of California consumers
Molyneaux, M., 2007. The changing face of organic consumers. Food Technology, Volume
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Peter, K. & Rebecca, A., 2012. Health & Environmnent, Consciousness of balance &
Purchase of organic food
Reicks, M., Splett, P. & Fishman, A., 1997. Shelf Labelling of organic foods: Effects on
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10
Warner, M., 2006
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