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Differences of customer purchase behavior toward organic rice in Indonesia and Taiwan
Massoud Moslehpour Pham Van Kien Ilham Danyfisla
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Article information:
To cite this document:
Massoud Moslehpour Pham Van Kien Ilham Danyfisla , (2014),"Differences of customer purchase behavior
toward organic rice in Indonesia and Taiwan", International Journal of Quality and Service Sciences, Vol. 6
Iss 4 pp. 348 - 368
Permanent link to this document:
http://dx.doi.org/10.1108/IJQSS-04-2013-0024
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Ilham Danyfisla
Bank Rakyat Indonesia, Jakarta, Indonesia
Abstract
Purpose The purpose of this study is to investigate the similarities and differences in consumer
purchasing behavior of Taiwanese and Indonesian organic rice consumers.
Design/methodology/approach This study uses quantitative methods with the primary data
collected from consumers in Indonesia and Taiwan through structured questionnaire to understand
customer purchasing behavior toward organic rice in the two countries. A total of 415 useable
questionnaires were computed and analyzed through factor analysis, reliability analysis, regression
analysis, correlation and t-test.
Findings The results of this research indicate significant differences between Indonesia and Taiwan
in their consumer knowledge and consumer purchase behavior, but not for environmental concerns and
consumer attitude.
Practical implications The results of this study will assist producers of organic rice in developing
countries to adapt to new organic food standards and marketing to ensure high food quality standards
for both domestic and export markets.
Originality/value This study provides insights into the preferences of consumers of organic rice
both in Taiwan and Indonesia. Empirical results in this study provides comparisons between two
countries attitudes toward organic rice and this study emphasizes the correlation between consumer
purchasing behavior, consumer knowledge, environmental concerns and attitude for Indonesian
respondents, Taiwanese respondent, and both combined.
Keywords Indonesia and Taiwan, Customer attitude, Customer knowledge,
Customer purchase Behavior, Environmental concerns, Organic rice
Paper type Research paper
Introduction
Globalization of food markets has triggered concern about food quality, standards
and preferences. Around the world, consumers are becoming more aware of the
quality attributes of different commodities found in the market and are choosing
products that closely match their tastes and preferences. Consumers often express
their preferences for product quality by paying a standard price for the product that
fulfills their desired characteristics. These premiums give producers an incentive to
improve product quality and consequently enhancing the welfare of the consumer
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and the producer (Malhotra, 2004). As a result, organic food has appeared and
become popular because it brings the good health to consumers, profitability to
producers and harmfulness to the environment. According to Hill and Lynchehaun
(2002), organic rice is free from chemical and free from fat, has high-carbohydrate
and low-sugar content.
Taiwan is a developing country with increasing living standards and concerns for
the environment and well-being of its citizens. Organic food in Taiwan was initiated two
decades ago, with an increasing trend since (Tung and Huang, 2011). There is very little
research on consumer food quality preferences in developing countries and research
findings from developed countries cannot be transferred to other countries because
culture, taste preferences and perceptions differ among the countries (Grunert et al.,
2000). Moreover, in Indonesian rice market conventional rice is still the main choice for
most of the consumers. Like Indonesia, conventional rice is also the major of staple food
in Taiwan. Although organic rice cultivation has many benefits; it can not dominate the
market in Taiwan and Indonesia. Researchers have explained this phenomenon through
three aspects: producers, consumers and governments policy. Among them, consumers
are seen as the key factor leading to the food market trend in each country.
According to Solomon (2006) and Blackwell et al. (2001), customer purchase behavior
is a complex pattern for market researchers. Simply defined, it is the study of
psychological, social and physical actions when people buy, use and dispose products,
services, ideas and practices. They studied characteristics of individual consumers such
as demographics and behavioral variables in an attempt to understand peoples wants.
It also tries to assess influences on the consumer from groups such as family, friends,
reference groups and society in general (Solomon, 2006; Blackwell et al., 2001).
Furthermore, consumer behavior theory intending to identify consumer variables,
explain relationships between variables and specify cause and effect outcomes from
variable interactions (Kioumarsi et al., 2009). Relationship marketing is an influential
asset for customer behavior analysis, as it has a keen interest in the re-discovery of the
true meaning of marketing through the reaffirmation of the importance of the customer
or buyer. A greater importance is also placed on consumer retention, customer
relationship management, personalization, customization and one-to-one marketing
(Kioumarsi et al., 2009). Among those, which factor has the greatest influence on
consumer purchase behavior? And what are the differences and similarities of customer
environmental concern, consumer attitude and consumer purchase behavior toward
organic rice in Indonesia and Taiwan?
The results of this study help researchers to distinguish and compare the customer
purchase behavior between Indonesia and Taiwan. Indonesia and Taiwan as two
distinctive markets for organic rice and consumer are chosen to find out the similar and
different attitude and behavior toward organic rice consumption. This research
describes consumer behavior, preferences and concerns toward organic rice in both
countries. Furthermore, this study explores the possible factors influencing purchase
behavior of Taiwanese and Indonesian consumers. This research attempts to find the
differences and similarities regarding purchase behavior of organic rice customer
between Indonesian customer and Taiwanese customer. Additionally, this research
aims at contributing to the understanding of Indonesian and Taiwanese consumers
attitudes, environmental concerns, knowledge and their behavior toward organic rice.
Customer
purchase
behavior
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Literature review
Organic rice
According to International Rice Research Institute, organic rice is rice that is
certified by an independent body, and has been grown and processed according to
set organic standards. Normally, organic means free from synthetic or artificial
pesticides and fertilizers. Soil fertility is maintained through natural processes
such as growing cover crops and/or the application of composted manure and plant
wastes. Crops are rotated in fields to avoid growing the same crop year after year in
the same field. Non-chemical forms of pest control are used to manage insects,
diseases and weeds. Organic rice contains more iron and less copper than
conventional rice (Saha et al., 2007). Organic rice did appear to be whiter and softer
when cooked than conventional rice (McClung, 2009).
Organic rice in Indonesia and Taiwan
With a population of millions, Indonesia is the worlds fourth most populous country,
and its population is growing at a rate of 1.7 per cent per year. Agriculture plays a
substantial role in the Indonesian economy, involving more than 55 per cent of the
population, and accounting for 19 per cent of the gross domestic product and more than
60 per cent of the value of non-oil exports. Over the past two decades, annual agricultural
output has grown by 4 per cent (Gusmayanti et al., 2006; Badan Pusat Statistik, 2011).
Indonesia is a widespread archipelago of 17,500 islands located along the equator in
Southeast Asia, with a diverse tropical environment and plentiful annual precipitation.
Located along the ring of fire, the nation is home to the most active volcanic islands in
the world (Java and Bali). The volcanic origin of the archipelago provided vast areas of
fertile soils which support both dense tropical rainforest and agriculture. Average
annual rainfall in the country is roughly 3,175 mm (125 inches), but can exceed 6,100 mm
(240 inches) in the mountainous highlands. The combination of copious rainfall and
fertile soils make many areas of the islands ideally suited for farming. Total agricultural
land in 2010 was estimated by the Indonesian government at roughly 40.7 million
hectares, or 22 per cent of the total land area in the country (Komatsuzaki and Syuaib,
2010).
Rice is by far the most important food crop grown in the country today, with a
cultivated area estimated by USDA at 12.2 million hectares in 2011, accounting for 30
per cent of total agricultural land. Rice is grown by approximately 77 per cent of all
farmers in the country (25.9 million) under predominantly subsistence conditions. The
average farm size is very small at less than 1 hectare, with the majority of farmers
cultivating landholdings between 0.1-0.5 hectares in size. Rice production is heavily
concentrated on the islands of Java and Sumatra, with nearly 60 per cent of total
production emanating from Java alone (Pertiwi, 2003).
Organic rice in Taiwan
Rice is the staple food in Taiwan, with a total planted area covering two cropping
seasons of 339,949 hectare in 2000. This was the lowest rice acreage for more than 50
years. Rice production in Taiwan is facing the challenge of cheap imports of up to
140,000 MT per annum under World Trade Organization. Taiwans economy and health
care standards have been improving. Consumers concerns about the environment and
health issues are also on the rise.
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Organic food in Taiwan was initiated two decades ago, with an increasing trend
since (Tung and Huang, 2011). It is now consumed by a small but specific group of
people. Moreover, rice is the traditional staple food and main crops in Taiwan.
Because market share of organic rice is still small compared to the rice market in
Taiwan, it is difficult to intercept organic consumers in ordinary retail market. A
survey in a general retail grocery market is infeasible for a consumption study for
organic rice. The choice of food is usually based on the consumption culture (Chang
et al., 2008). According to some previous studies about organic consumption in
Taiwan, organic consumption in Taiwan is often due to protections for life,
environment and human health under the special concerns of culture and religion
(Liu and Lee, 2010; Chang et al., 2008). Tung and Huang (2011) studied the pricing
differentials between organic and ordinary agricultural products in Taiwan and
suggested that consumers are willing to pay a 10-30 per cent premium for organic
products. There are few studies related to purchase behavior of organic food and the
factors influencing consumer purchase behavior in Taiwan (Tung and Huang, 2011).
Consumers purchase organic food for the sake of environmental protection and
health effects (Liu and Lee, 2010; Chang et al., 2008).
Consumer purchase behavior is a complex pattern and sophisticated
understanding for marketing researches, but simply defined study of psychological,
social and physical actions when people buy, use and dispose products, services,
ideas and practices (Solomon, 2006; Blackwell et al., 2011; Peter and Olson, 2008). In
consumer behavior theory, consumers have their own decisions to balance the
marginal health utility and marginal price of one unit of quality food products.
There are three main aspects of consumer preference toward willingness to buy
organic rice such as knowledge, attitude and intention. Knowledge about products
and their benefits influences their willingness to pay for the products. Knowledge of
people is affected by type and quality of information made available to consumers
(Engel et al., 1986).
Consumer purchase behavior consist of ideas, feelings, experiences and actions of
consumers with additional environmental factors like advertisement, prices and income
per month (Solomon, 2006; Blackwell et al., 2011; Peter and Olson, 2008). Furthermore,
consumer behavior is a dynamic process which continuously changes in ideas,
perceptions and activities of consumers as an individual or in a group. Engel mentioned
that consumer behavior as those acts of individuals directly involved in obtaining,
using, and disposing of economic goods and services, including the decision process that
precede and determine these acts (Engel et al., 1986). Simple observation provides
limited insight into the complex nature of consumer choice and researchers have
increasingly sought the more sophisticated concepts and methods of investigation
provided by behavioral sciences to understand, predict and possibly control consumer
behavior more effectively.
Internal factors affecting consumer behavior
Internal factors affecting consumer behavior come from inside the consumer. The
internal factors influence how an individual reacts to group influences, environmental
changes, marketing efforts, own attitudes, personality, perceptions and self-concepts.
These influences explain the ways consumers interact with environment around them,
recognize their feelings, gather and analyze information, formulate thoughts and
Customer
purchase
behavior
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352
opinions and take action. Internal factors can better understand the why and how of
specific behaviors. The following section will explain more in detail internal factors
affecting consumer behavior.
Attitude: Attitude greatly influences consumer buying behavior. Attitude is the
individuals consistently favorable or unfavorable evaluation, tendency or feeling about
particular subject (Chisnall, 1995). In other words attitude is the overall, enduring
evaluation of a concept or object, such as a person, a brand or a service (Arnold and
Zinkhan, 2004). Attitude can be defined as a mental, emotional or rational predisposition
with regard to a fact, state, person or an object. Attitude theory has its roots in social
psychology and therefore the literature review will begin with research from this area.
Louis (1928) was one of the first researchers to define attitude. According to him attitude
is the sum of persons feelings toward a given object (Louis, 1928). Allport (1935, p. 810)
provided a broader definition for the concept:
[] a mental and neural state of readiness, organized through experience, exerting a directive
and dynamic influence upon the individuals response to all objects and situations with which
it is related.
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Customer
purchase
behavior
353
Methodology
This research used quantitative method with primary data from consumers in Indonesia
and Taiwan to understand customer purchase behavior toward organic rice in
Indonesia and Taiwan. The research aims at discovering customer behavior toward
organic rice using statistical analyses to know the relationship among independent and
dependent variable. The following sections will describe the research model, statement
of the hypotheses and the instrumentation.
Research model and framework
This research used a simple framework to reflect the factors affecting consumers
purchase. Figure 1 is a graphical representation of the framework and hypotheses of the
study.
H1
Consumer
Knowledge
H2
Country of
Origin
H3
Environmental
Concerns
H4
H6a
H5a
H5b
H5c
Consumer
Attitude
H6b
Purchase
Behavior
H6c
Figure 1.
Research Framework
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Research hypothesis
According to the theoretical framework demonstrated in Figure 1, the research
hypotheses are as follows:
H1. Consumers of organic rice in Taiwan and Indonesia have a statistically
significant different purchase behavior.
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Customer
purchase
behavior
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356
Table I.
Demographic information
Category
Indonesia
Frequency
(%)
Taiwan
Frequency
(%)
Total (%)
Total frequency
Gender
Male
Female
72
138
34.29
65.71
58
147
28.29
71.71
31.33
68.67
130
285
Marital status
Single
Married
203
7
96.67
3.33
186
19
90.73
9.27
93.73
6.27
389
26
Age (years)
18
18-21
22-25
25-28
28
0
163
41
1
5
0.00
77.62
19.52
0.48
2.38
8
139
53
5
0
3.90
67.80
25.85
2.44
0.00
1.93
72.77
22.65
1.45
1.20
8
302
94
6
5
Education level
Undergraduate
Graduate
Doctorate
196
11
3
93.33
5.24
1.43
174
31
0
84.88
15.12
0.00
89.16
10.12
0.72
370
42
3
70.48
26.19
1.90
0.00
1.43
67
96
29
13
0
32.68
46.83
14.15
6.34
0.00
51.81
36.39
7.95
3.13
0.72
215
151
33
13
3
(1.4 per cent) and more than 28 years old (1.2 per cent). The data was collected from
university students, therefore, the age range of 18-21 ranked the highest.
This research divided the level of education into three levels including
undergraduate, graduate/master and doctorate/PhD program. In terms of education,
most of respondents were undergraduate students. For Indonesia and Taiwan, the
number of participants who study in undergraduate program is 89.2 per cent, graduate/
master program is 10.1 per cent and doctoral/PhD program is 0.7 per cent. The
respondents who have the education level in undergraduate can represent customer
knowledge and also describe purchase behavior toward organic rice.
The estimated income per month of the respondents was divided into five groups. In
this case estimate income per month of Indonesia respondents was converted to NT$
(Taiwan dollar). At the time of this study USD1 NT$ 30. Among total respondents in
this research, most have income per month of NT$ 6,000, which accounted for 51.81
per cent, the second highest ranged income per month is NT$ 6,000-15,000 with 36.4 per
cent, followed by NT$ 15,001-35,000 with 8 per cent, NT$ 35,001-45,000 with 3.1 per cent
and NT$ 45,000 with 0.7 per cent.
Reliability test
Reliability can reflect the internal consistency of the indicators measuring a given
construct. Therefore, before the hypothesis is tested, the reliability of the measurement
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scale should be checked. Among various form of reliability, this study prefers
Cronbachs alpha, which is the most common of inter-item consistency reliability (Kline,
2005). Acceptable Cronbachs alpha needs to be greater than 0.6 in social research for
each item. Therefore, the reliability of the measurements was assessed by calculating
the Cronbachs alpha reliability coefficient. The results of reliability test indicated that
all variables are reliable (Table II). The results of reliability analyses indicated some
items in the questionnaire should be deleted due to their inconsistency and inadequacy
within the total measurement.
Three questions for purchase behavior, PB1 (how much do you consumer organic
rice), PB4 (where do you buy organic rice) and PB5 (approximately when did you buy
first organic rice) and one question for consumer attitude A1 (price of organic rice is
more expensive than rice non-organic) were deleted from the questionnaire. After
deleting these questions, the reliability coefficients for each variable are as follows:
consumer purchase behavior 0.636, consumer knowledge 0.866, environmental
concerns 0.845 and consumer attitude 0.825.
In this study, 450 questionnaires were distributed and 415 valid questionnaires were
returned. Table III describes the nature of each variable. The mean value of consumer
purchase behavior is 2.90, the mean value of consumer knowledge is 4.13, the mean
value of environmental concerns is 3.89 and the mean value of consumer attitude is 3.72.
Customer
purchase
behavior
357
Cronbachs alpha ()
This research
Previous research
No.
Variables
1
2
3
4
Category
Consumer purchase behavior
Consumer knowledge
Environmental concerns
Consumer attitude
0.636
0.866
0.845
0.825
No. of questions
0.631
0.844
0.735
0.752
3
8
5
5
Table II.
Reliability assessment of
variables
Valid N
Minimum
Maximum
Mean statistic
SE
SD
415
415
415
415
1.00
1.00
1.00
1.00
5.00
5.00
5.00
5.00
2.90
4.13
3.89
3.72
0.07
0.02
0.03
0.03
1.39
0.49
0.52
0.57
Table III.
Descriptive results for
each variable
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358
factor loading, the value of which should be more than 0.5. Factor loading for every
question is greater than 0.5.
As illustrated in Table IV, three questions which measure consumer purchase behavior
have factor loading of higher than 0.5, which ranged from 0.58 to 0.87. Other questions
related to this variable that had low factor loadings were deleted. Eigen value for consumer
purchase behavior is 1.75. The cumulative proportion for consumer purchase behavior is
58.48 per cent indicating that consumer purchase behavior based on the research model of
this study explains almost 58.5 per cent of total variance in this study.
Consumer knowledge has eight questions. For this construct, factor loadings for all
chosen questions are higher than 0.5, which ranged between 0.62 and 0.79. Eigen value
for consumer knowledge is 4.18. The value of the cumulative proportion for consumer
knowledge is 52.3 per cent, meaning that consumer knowledge explains 52.3 per cent of
total variance in this study. The results for environmental concerns and consumer
attitude are also presented in Table IV.
t-Test, regression and correlation analyses
This study used t-test to check the statistically significant differences between
Taiwanese and Indonesian consumers. H1 mentioned that organic rice consumers in
Taiwan and Indonesia have statistically significant differences in their purchase
behavior. This hypothesis is tested using t-test analysis. The results in Table V indicate
that there are statistically significant differences between Taiwanese and Indonesian
consumers in their purchase behavior toward organic rice at the significant level p
Variable
Consumer
purchase
behavior
Consumer
knowledge
Environmental
concerns
Consumer
attitude
Table IV.
Factor analysis
Questionnaire
items
PB2
PB3
PB6
CK1
CK2
CK3
CK4
CK5
CK6
CK7
CK8
EC1
EC2
EC3
EC4
EC5
A2
A3
A4
A5
A6
Factor
loading
Eigen
value
Cumulative
proportion %
KMO
Chi-square
p-value
0.582
0.867
0.815
0.775
0.767
0.752
0.704
0.790
0.638
0.721
0.618
0.758
0.661
0.847
0.832
0.824
0.686
0.77
0.86
0.80
0.71
1.75
58.48
0.56
209.79
0.00***
4.18
52.29
0.83
150.34
0.00***
3.09
61.97
0.85
819.38
0.00***
2.99
59.71
0.81
772.19
0.00***
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Country
Indonesia
Taiwan
Mean
2.99
2.80
Purchase behavior
Mean difference
Significance
36.03
0.000***
Consumers knowledge
Mean difference
Significance
0.09
2.49
1.16
Consumers attitude
Mean difference
Significance
24.80
0.000***
1.19
Country
Indonesia
Taiwan
Country
Indonesia
Taiwan
Note: *** p 0.001
Mean
4.18
4.08
Mean
3.83
3.93
0.1
Customer
purchase
behavior
359
Table V.
t-Test results for
Indonesia and Taiwan
consumers purchase
behavior
Table VI.
t-Test results for
Indonesia and Taiwan
consumers knowledge
Table VII.
t-Test results for
differences in
environmental concerns of
Indonesian and
Taiwanese consumers
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360
Table VIII.
t-Test results for different
attitude in Indonesia and
Taiwan
into three sections, including Taiwanese consumers, Indonesian consumers and both
countries together, respectively.
The results of the correlation analysis for Taiwan are shown in Table IX in which
consumer knowledge of organic rice has significantly positive correlation with
consumers environmental concerns (0.80) and attitude (0.38) at the confidence level of 99
per cent. There is also significantly positive correlation between consumers
environmental concerns and attitude with the correlation value being 0.34. Therefore,
H5a1, H5b1 and H5c1 are all supported for Taiwan.
The results of the correlation analysis for Indonesia are shown in Table X.
Consumers attitude toward organic rice is significantly and positively correlated to
consumers knowledge (0.35) and environmental concerns (0.49) at the confidence level
of 99 per cent. However, there is no statistically significant correlation between
consumers environmental concerns and consumers knowledge due to the correlation
value does not meet the accepted value in the confident level of 95 per cent. In summary,
for Indonesia, H5c2 is not supported, while H5a2 and H5b2 are supported.
The results of the correlation analysis for both Indonesia and Taiwan are presented
in Table XI. Based on Pearson coefficient values, there are significantly positive
correlations among consumer knowledge to consumer environmental concerns (0.42)
and consumer attitude (0.42). Furthermore, there is also the significant relationship
between consumer attitude and consumer knowledge with the Pearson coefficient value
being 0.49. Thus, H5 is supported for Indonesian and Taiwanese consumers.
In short, based on the above analysis, the proposition of statistically significant
correlations among consumer knowledge, environmental concerns and consumers
attitude of organic rice consumers in H6 is fully supported in Taiwan and mostly
Country
Indonesia
Taiwan
Variable
Table IX.
Correlation analysis for
Taiwan (H5a1, H5b1 and
H5c1)
CK_T
EC_T
AT_T
3.89
3.54
Consumers attitude
Mean difference
Significance
0.55
0.51
0.48
CK_T
EC_T
A_T
0.80** (H5a1)
1
0.38** (H5b1)
0.34** (H5c1)
1
CK_I
EC_I
A_I
0.134 (H5a2)
1
0.35** (H5b2)
0.49** (H5c2)
1
Note: ** p 0.01
Variable
Table X.
Correlation analysis for
Indonesia (H5a2, H5b2
and H5c2)
Mean
CK_I
EC_I
AT_I
Note: ** p 0.01
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supported in Indonesia. When combining the two countries, the findings are in
accordance with previous studies. Consequently, H6 is accepted.
Based on the results of the t-test and correlation analyses, we can summarize the
differences between the two countries based on the simple descriptive analysis, which is
summarized in Table XII. Indonesian consumers have a higher mean (M 2.99) than
Taiwan consumers (M 2.81) in terms of consumer purchase behavior. It means that
Indonesian consumers are more willing to purchase organic rice than Taiwanese
consumers. In addition, Indonesian respondents (M 4.18) have more basic knowledge
about organic rice than Taiwanese (M 4.08). As for the environmental concerns,
Taiwanese respondents (M 3.94) are more concerned about their environment than
Indonesian respondents (M 3.83). It indicates that Taiwanese consumers are more
aware of environment than Indonesian consumers. Regarding consumer attitude,
Indonesian consumers have more positive attitude than Taiwanese consumers toward
organic rice. The mean for Indonesian and Taiwanese consumers is 3.89 and 3.54,
respectively. This could perhaps be related to having better knowledge of organic rice.
Regression analysis: To test H6, the study used the regression analysis to investigate
influences of independent variables (consumer knowledge, environmental concerns and
consumer attitude) on dependent variables (consumer purchase behavior) in terms of
organic rice in Indonesia and Taiwan. The analysis is divided into three parts with the
aim of examining two countries both together and separately. Each part includes three
models for three separate independent variables in which, Model 1 is used for the
regression of consumer purchase behavior and consumer knowledge, Model 2 is for
consumer purchase behavior and environmental concerns and Model 3 is for consumer
purchase behavior and consumer attitude.
Part 1 used Taiwanese respondents to carry out regression models of consumer
purchase behavior and its predicted variables. The results from Table XIII show that the
F test value for Model 1 is 2.34 (p-value 1.28), which means that the influence of
consumer knowledge on purchase behavior is not significant at the confident level of
Variable
CK
EC
AT
CK
EC
0.42**
1
0.38**
0.49**
1
Note: ** p 0.01
Variable
Country of origin
Taiwan
Indonesia
Taiwan
Indonesia
Taiwan
Indonesia
Taiwan
Indonesia
Consumer knowledge
Environmental concerns
Consumer attitude
Mean
205
210
205
210
205
210
205
210
2.8063
2.9967
4.0804
4.1799
3.939
3.8341
3.5400
3.8956
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Table XI.
Correlation analysis for
both Taiwan and
Indonesia
Table XII.
Descriptive analysis for
each variable
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Independent variable
Model 1
(CK_T PB)
CK_T
EC_T
AT_T
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Table XIII.
Regression analysis for
Taiwanese consumers
Model parameters
R2
Adjusted R2
F
p-value
Model 2
(EC_T PB)
Model 3
(AT_T PB)
0.25
0.18*
0.06
0.06
0.06
2.34
1.28
0.032
0.026
6.62
0.01
0.004
0.004
0.16
0.69
Note: * p 0.05
95 per cent. While, Model 2 gives the better results with F-value being 6.62 (p-value
0.01) and adjusted R-squared of 0.026. Thus, environmental concerns of Taiwanese
consumers account for only 3 per cent of variance in their purchase behavior toward
organic rice. Similar to consumer knowledge factor, Taiwanese attitude of organic rice
does not show any significant influence on their purchase behavior in Model 3
(F-value 0.16, p-value 0.69). As a result, H6a1 and H6c1 are rejected, while H6b1 is
supported. In other words, H6 is weakly supported for Taiwanese consumers.
Then, Part 2 used Indonesia respondents to conduct regression analysis between the
independent variables and dependent variable (consumer purchase behavior).
Table XIV reports the F test value for Model 1 is 9.86, Model 2 is 26.91 and Model 3 is
9.13. The p-values are 0.002, 0.000 and 0.003, respectively. The results indicate that the
independent variables all significantly influence consumer purchase behavior. The
adjusted value of R-square for Model 1 is 0.04, which means that this model accounts for
4 per cent of the variance in purchase behavior as a whole. Environmental concerns
account for 11 per cent of variance, while consumer attitude account for 4 per cent of
variance in consumers purchase behavior. Beta coefficient values for consumer
knowledge is 0.215, for environmental concerns is 0.342 and for consumer attitude is
0.207. In other words, there are significant influences of consumers knowledge, attitude
Independent variable
CK_I
EC_I
AT_I
Table XIV.
Regression analysis for
Indonesian consumers
Model parameter
R2
Adjusted R2
F
p-value
Notes: ** p 0.01; *** p 0.001
Model 1
(CK PB)
Model 2
(EC PB)
Model 3
(AT PB)
0.215**
(0.34***)
0.21**
0.05
0.04
9.86
0.002
0.12
0.11
26.91
0.000
0.04
0.04
9.13
0.003
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and environmental concerns on their purchase behavior. However, these influences are
not strong enough when R-squares in three models only account for the small shares.
The largest share of influence for the Indonesian consumers is from environmental
cancers, and that is a negative influence. Encouraging Indonesian consumers to
purchase organic rice through environmental concerns does not seem to be a successful
marketing strategy. In summary, H6a2, Ha6b2 and H6c2 are all accepted or H6.
Finally, Indonesian and Taiwanese respondents are combined together in this part.
Table XV shows the F test value for Model 1 is 11.86 (p-value 0.01) with a beta value
of 0.17. It means that the linear relationship between consumer purchase and consumer
knowledge for two countries as a whole is significant. The value of adjusted R-square for
consumer knowledge accounts for 2.8 per cent of the variance. F-value in Model 2 is 2.32
(p-value 0.28), which is not significant at the 95 per cent confidence level. Eventually,
F-value for Model 3 is 8.51 (p-value 0.04), which meets the acceptable confidence level.
Therefore, it can be concluded that consumer knowledge, consumer attitude in two
countries positively influence consumer purchase behavior. However this influence is
very weak.
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Conclusion
Results for hypotheses testing
This study used t-test, regression models and correlation analyses to test the
predetermined six hypotheses with the aid of the SPSS program. The results are
summarized in Table XVI below.
Independent Variable
Model 1
(CK_T PB)
CK
EC
AT
Model 2
(EC_T PB)
Model 3
(AT_T PB)
0.17**
0.20
0.14*
Model Parameter
R2
Adjusted R2
F
p-value
0.03
0.03
11.86
0.01
0.04
0.02
2.32
0.28
0.02
0.02
8.51
0.04
Note: * p 0.05
Hypothesis
Results
Hypothesis
Results
Hypothesis
Results
H1
H2
H3
H4
Supported
Rejected
Supported
Rejected
H5
H5a1
H5b1
H5c1
H5a2
H5b2
H5c2
Strongly Supported
Supported
Supported
Supported
Rejected
Supported
Supported
H6
H6a1
H6b1
H6c1
H6a2
H6b2
H6c2
Weakly Supported
Rejected
Supported
rejected
Supported
Supported
Supported
Table XV.
Regression analysis for
both Indonesian and
Taiwanese consumers
Table XVI.
Summary of hypotheses
testing
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knowledge and consumer attitude in Taiwan. The organic rice industry can cooperate
with the Government and public organizations to produce brochures about the
advantages of consume organic rice, campaigns and TV programs for the general
public.
Regarding consumers attitude toward organic rice, consumers in Indonesia and
Taiwan are quite different. In general, each country has different characteristics
especially the attitude, based on the results for consumer attitude, Indonesian
consumers have more positive attitude than Taiwan consumers toward organic rice. In
this study, consumer attitude toward organic rice means consumers belief and tendency
to evaluate organic rice in different ways such a taste, accessibility, health concerns, etc.
This finding is consistent with previous study (Chen, 2009). In Taiwan, despite the fact
that most people have health consciousness attitude, they still often fail to consider
whether everything they do is healthy. In fact, they do not even want to ask themselves
whether the things they eat are good for them. In other words, if consumers could
consider all the time that everything they do and everything they eat should be good for
them, then their attitude toward organic rice will improve. In addition, increased
consumer attitude can have a positive influence on purchase behavior of organic rice. In
line with this consumers knowledge, environmental concerns and consumers attitude
have different influences on purchase behavior in Indonesia and Taiwan. Therefore,
understanding and the perceptions of consumers about the organic rice is important
because it can help consumers to recognize the characteristics and the benefits of
organic rice compared with non-organic rice and adopt a positive attitude toward
organic rice. Findings from previous studies reveals that consumer with a positive
attitude toward a product will be more inclined to select the store and buy the product
(Moye and Kincade, 1999).
Finally, the results of the correlation among consumer knowledge, environmental
concerns and consumer attitude and purchase behavior are in accordance with
Grunert and Juhls study in 1995. They found that there is a relationship between the
environmental concerns and buying decision with regard to organic food. Thus,
positive attitudes toward environmental factors could lead to positive attitude and
knowledge with respect to purchasing decision and buying frequency (Grunert and
Juhl, 1995).
In conclusion, this study provides knowledge of factors affecting consumer purchase
behavior toward organic rice. Empirical results provide readers and practitioners the
comprehensive comparison between two countries in the given field. The findings of
this study will help the government of both countries to have a better understanding of
consumer purchase behavior, and therefore encourage farmers to produce more organic
rice. Eventually, the findings of this study could encourage the schools/universities to
give better understanding of the benefits of consuming organic rice.
Future research
Future studies should create more detailed questions about consumer purchase
behavior, customer knowledge, environmental concerns and attitude toward
organic rice. It means that future studies should be looking for other factors which
may influence consumer purchase behavior toward organic rice. This study used
convenience sampling technique to collect data from the universities, but it would be
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more significant if future researches could include a larger portion of the population
to enhance the scope of the present study.
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1. Shu-Yen Hsu Department of International Business, National Dong Hwa University, Hualien, Taiwan
Chiao-Chen Chang Department of International Business, National Dong Hwa University, Hualien,
Taiwan Tyrone T. Lin Department of International Business, National Dong Hwa University, Hualien,
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Text] [PDF]