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

1. INTRODUCTION

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. As previously mentioned, Taiwan's bread is popular in Indonesia, and it is believed that undertaking direct market research in the country of origin will contribute substantially to the start of a new business.

The first step in understanding the preferences of Indonesian consumers toward Taiwan bread is to set a strategy and learn from the market. The essential way to win the hearts of customers is to fulfill their needs through an understanding of what they are looking for. No business can succeed without understanding its customers, its products and services, and the market in general [Jang et al., 2009].

Conducting market research is often the starting point for key components of the marketing and sales strategy of a business. This study reports market research that explores the conditions of the current business environment, and generates a model to test the determinants affecting Indonesian consumers' purchase intention of bakery products. This is an empirical study to build a framework for providing a theoretical knowledge base to understand the influence of product characteristics, perceived servicescape, perceived price, and perceived quality as the cues that trigger Indonesian consumers' intention to purchase bread in Taiwan. …

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