Organic food market segmentation based on the neobehavioristic theory of consumer behavior

Abstract

PurposeAlthough Iran is one of the largest producers and exporters of saffron in the world, the organic saffron market in Iran is still in its early stages, and there is scarce empirical evidence in this regard. Therefore, the study's primary purpose is to segment the organic saffron market in Mashhad, Iran using neobehavioristic theory and machine learning methods.Design/methodology/approachConsidering the neobehavioristic theory of consumer behavior, the organic saffron market was segmented using crisp and fuzzy clustering algorithms. Also, to assess the relative importance of the factors affecting the intention to buy organic saffron in each market segment, a sensitivity analysis was performed on the output of the artificial neural network (ANN). A total of 400 questionnaires were collected in Mashhad, Iran in January and February 2020.FindingsIn contrast to the belief that psychological factors are more important in market segmentation than demographic characteristics, findings showed that the demographic characteristics of consumers, especially education and income, are the dominant variables in the segmentation of the organic food market. Among the 4 A’s marketing mix elements, the results showed that a low level of awareness and accessibility are obstacles to organic saffron market development. Advertising, distribution channel improvement, package downsizing and online business development are suggested strategies for expanding the organic saffron market in Iran.Practical implicationsThe results of the present study will help policymakers and suppliers of organic saffron to identify their target markets and design short- and long-term marketing strategies to develop the organic saffron market.Originality/valueMachine learning methods and the neobehavioristic theory of consumer behavior were used to segment the organic food market.