Report on Assortment Change and Active Marketing Effects on Demand Pattern

Summary

This research aligns with the European Union’s Farm to Fork Strategy by investigating effective marketing strategies to stimulate consumer demand for organic products. With the EU aims to transition 25% of agricultural land to organic production by 2030, influencing consumer purchasing behaviour is as crucial as expanding organic farming itself. The study examines four key marketing interventions, information labels, social norm nudges, assortment changes, and brand strategy adjustments, through a realistic online supermarket experiment that mirror near real world shopping conditions. This report reveals that information labels, particularly a potential “EU Climate Label,” are unlikely to deter consumers from choosing organic products but promote their appeal. That is, when organic products carried the hypothetical new climate label consumers were more likely to pick them up in the supermarket experiments. These findings support the idea that sustainability initiatives may work in harmony rather than conflict the Farm to Fork Strategy. Exposure to social norm cues in organic purchasing decisions, intended to leverage societal behaviours and expectations, yielded mixed results. This research does not provide conclusive evidence supporting the sustained effectiveness of social norms cues in promoting organic buying behaviour over time. Instead, social norms appear to function primary as intermediate drivers of behaviour
change, suggesting at most the potential of being integrated into broader marketing strategies that aim to resonate with societal values and cultural contexts. Assortment adjustments emerge as an effective strategy for influencing consumer organic buying behaviour. Increasing the variety of available organic product options significantly boosts their selection by consumers. Notably, when the organic assortment increased to matching that of conventional products, consumers responded with a 45% increase in organic product purchases, despite facing a typical price markup of around 20-50%. This demonstrates that when consumers are presented with a wider range of organic products, they are more likely to find options that appeal to them and are willing to make purchase. Hence, retailers are encouraged to expand organic assortments to make organic options more accessible. Brand strategy changes, particularly the use of private label premium branding over conventional private-label budget or conventional premium branding, is another strategy which tested effective in driving consumers’ organic product purchases. The results suggest that premium branding
cues effectively reinforce consumer confidence, especially in markets where price premiums might otherwise deter purchases. By aligning private label brand strategies with premium branding cues, retailers have the power to enhance the perceived value of organic product alternatives and differentiate them from conventionally branded alternatives.
In conclusion, this report underscores the pivotal role of marketing strategies in promoting organic consumption. By integrating strategic marketing elements such as informational cues, optimised product assortments, and refined brand strategies, stakeholders can effectively increase consumer choices of organic products in supermarket settings. However, coordinated efforts among policymakers, retailers, and marketers will be key in designing interventions that not only exploit short-term organic purchases but align with the EU’s broader sustainability goals, contributing to the successful realisation of the EU’s organic farming objectives by 2030.