Driven Factors for Purchasing Decision and Satisfaction of Organic Rice Consumers on Supermarket - A Study in Indonesia

Purpose: Organic rice demand in Indonesia continues to increase and market opportunities are also increasingly widespread. Therefore, consumers can have a choice over various organic rice products. This study was conducted to identify characteristics of organic rice consumers, purchase decision process, analyze organic rice attributes and consumer satisfaction. The aim of the study is to obtain the main driven factor that could be used as an important consideration for the organic rice business. Research Method: The research design was quantitative with a survey of 75 respondents which were randomly drawn. Data were analyzed using frequency distribution to describe consumer characteristics and purchasing decision process, Importance Performance Analysis (IPA) to identify the attributes that consumers considered and Consumer Satisfaction Index (CSI) to identify the level of consumer satisfaction. Findings: Organic rice consumers were dominated by housewives who are high-educated, middle aged, and who have an upper-middle income with an average of USD 797.72/month. The main reason of consuming organic rice was its sweet taste. The benefits of organic rice was known through print and electronic media. Organic rice prices ranged from USD 2.07/kg to USD 3.25/kg and average purchase was 6 kg per month. Moreover, the most expensive organic rice was the one that has a low glycemic index. Even though the price was rising, consumers keep purchasing organic rice they normally consume. Of 12 attributes, only price affordability was not in line with the consumer expectations. Overall, consumers were very satisfied as indicated by the value of CSI = 83.28%. The results conclude that price affordability was the main driven factor and could be used as an important consideration for the organic rice business. Originality/Value: It is very important to analyze factors that consumers considered in buying organic rice, because the results can be used as an important consideration for the organic rice business.