Why and when should brands turn organic? A twofold market-offering perspective

Why and when should brands turn organic? A twofold market-offering perspective
Renaud Lunardo, Camille Saintives, David A. Jaud, Armando Maria Corsi, Bradley J. Rickard
European Journal of Marketing, Vol. 59, No. 13, pp.1-30

This paper aims to investigate the impact of a company’s decision to turn organic. Specifically, it examines the effect of such a decision on brand/product outcomes, and the role that organic market penetration plays in these effects.

Two experiments were conducted using two different food product categories. Data were analyzed using mean comparison tests, serial mediation and moderation analyses.

Results from Study 1 show that turning organic serially leads to increased perceptions of brand adaptability (mediator 1) and a positive effect on consumers’ perceived product quality (mediator 2), thus leading to stronger purchase intentions. Study 2 replicates and highlights the importance of market characteristics, showing that in markets with low organic market penetration rate (OMPR), brands turning organic are seen as challenging market norms, serially increasing (1) brand innovativeness (an additional mediator), (2) adaptability, (3) product quality perceptions, and then purchase intentions.

This research used online experiments, but the analysis of actual consumer decisions would bring further insight into the effects of turning organic. Moreover, the experiments involved only food products, while other fast-growing organic product categories – like organic cosmetics – could be examined for replication purposes.

By turning organic, brands can position themselves as adaptable and responsive to changing market trends, which – in turn – positively influences how consumers perceive product quality. Companies can thus leverage this positioning by emphasizing their transition to organic in marketing campaigns, framing it as a response to evolving consumer values. Further, turning organic is more beneficial in markets with low OMPRs, which indicates that brands should consider turning organic primarily in such markets.

Unlike previous studies that focused on the static fact of being organic, this research adopts a dynamic view by showing that turning organic affects both product and brand outcomes. It also examines the specific market conditions under which turning organic is the most favorable for brands.

​This paper aims to investigate the impact of a company’s decision to turn organic. Specifically, it examines the effect of such a decision on brand/product outcomes, and the role that organic market penetration plays in these effects. Two experiments were conducted using two different food product categories. Data were analyzed using mean comparison tests, serial mediation and moderation analyses. Results from Study 1 show that turning organic serially leads to increased perceptions of brand adaptability (mediator 1) and a positive effect on consumers’ perceived product quality (mediator 2), thus leading to stronger purchase intentions. Study 2 replicates and highlights the importance of market characteristics, showing that in markets with low organic market penetration rate (OMPR), brands turning organic are seen as challenging market norms, serially increasing (1) brand innovativeness (an additional mediator), (2) adaptability, (3) product quality perceptions, and then purchase intentions. This research used online experiments, but the analysis of actual consumer decisions would bring further insight into the effects of turning organic. Moreover, the experiments involved only food products, while other fast-growing organic product categories – like organic cosmetics – could be examined for replication purposes. By turning organic, brands can position themselves as adaptable and responsive to changing market trends, which – in turn – positively influences how consumers perceive product quality. Companies can thus leverage this positioning by emphasizing their transition to organic in marketing campaigns, framing it as a response to evolving consumer values. Further, turning organic is more beneficial in markets with low OMPRs, which indicates that brands should consider turning organic primarily in such markets. Unlike previous studies that focused on the static fact of being organic, this research adopts a dynamic view by showing that turning organic affects both product and brand outcomes. It also examines the specific market conditions under which turning organic is the most favorable for brands. Read More