Academic journal article International Journal of Business and Information

Bakery Product Perception and Purchase Intention of Indonesian Consumers in Taiwan

Academic journal article International Journal of Business and Information

Bakery Product Perception and Purchase Intention of Indonesian Consumers in Taiwan

Article excerpt


The goal of this study is to develop a better understanding of the perceptions of Indonesian consumers concerning the purchase of bakery products in Taiwan, which can be used as a basis for developing more effective strategic marketing plans in this sector. There are more than 200,000 Indonesians residing in Taiwan, and more effective marketing plans could benefit Taiwanese bakery owners. The sample population for this study was 400 Indonesian consumers residing in Taiwan. The findings reveal that product characteristics (PC) and perceived price (PP) had a significant influence on perceived quality (PQ) and consumers' purchase intention (PI), but perceived servicescape (PS) had no significant influence on PQ and PI. The findings confirm that PQ does not mediate the impact of PC, PS, and PP on the purchase intention of Indonesian consumers living in Taiwan. This study pioneers marketing insights and contributes to an understanding of the key factors that influence Indonesian consumers' purchase intention in the Taiwan market.

Keywords: Consumers' perception, bakery products, structural equation modeling (SEM), Indonesia, Taiwan


Food is more than mere physical nutrition. It is the substance of comfort, community, caring, and creativity, and plays a substantial role in the rituals of daily life, at or away from the table [Kellam, 2009]. Although hunger is the main physiological motivation for eating, people's food choices are determined not only by nutritional needs, but also by other factors such as economic, cultural, and social determinants [Koster, 2009; Imai et al., 2009; Contento, 2011]. To understand how these choices are made, it is important to understand which factors play key roles in buying decisions.

The food business is very rewarding financially, since food is a basic physical need for human existence. Food consumption is an activity that fulfills the lowest level of Maslow's hierarchy of physical requirements for human survival [Maslow, 1943]. Consequently, if these requirements are not met, the human body cannot function properly, and will ultimately fail. Besides fulfilling these basic physiological needs, food can also serve to satisfy both emotional and social needs [Koster, 2009]).

According to data collected by the Food Industry Research and Development Institute and the Ministry of Economic Affairs, Taiwan is a huge food product market and has the potential to drive the trend of the global food market in the future. It is estimated that there are more than 67,000 food industries in Taiwan.

The findings from Datamonitor [2011] indicate that bread is one of the favorite food choices of consumers in the market. The future for the global bakery remains positive, with the industry forecast to grow at just over 1% from 2011, to reach retail value sales of US$492 billion in 2016. Global health and wellness bakeries are forecast to grow at 3% and should account for around 17% of total bakery sales in 2015. In 2011, emerging economies experienced the strongest retail growth across most bakery categories, particularly in Latin America and the Asia-Pacific. The market for bakery and cereals in Taiwan increased at a compound annual growth rate of 1.8% between 2004 and 2009. The bread and rolls category led the bakery and cereals market in Taiwan, accounting for a share of 42.9% [Datamonitor, 2011]. The bakery industries in Indonesia are also increasing at this time. Some bakeries are opening stores in strategic locations that are easy to reach, such as department stores [Lonita and Anggreani, 2008, Halim and Siantar, 2011]. Besides producing their own products, many bakery stores also sell famous franchise products. Soechan [2011] states that Taiwan's bakery products are famous for their variety, taste, and texture. Furthermore, the products of Taiwan's bakeries are suitable for the preferences of Indonesian consumers.

Based on the strong supposition that the bakery industry is a promising business venture in Indonesia, now could be a great time to search for innovative ways to turn a small idea into a successful business. …

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