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Tiêu đề Consumer Willingness to Purchase Organic Vegetable: A Study in Bien Hoa City
Tác giả Nguyen Thanh Phuong
Người hướng dẫn Dr. Le Nguyen Hau
Trường học University of Economics Ho Chi Minh City
Chuyên ngành Master of Business
Thể loại Master of Business (Honours)
Năm xuất bản 2014
Thành phố Ho Chi Minh City
Định dạng
Số trang 59
Dung lượng 617,21 KB

Cấu trúc

  • CHAPTER 1. INTRODUCTION

    • 1.1. Background

    • 1.2. Problem statement

    • 1.3. Research objectives and aims

    • 1.4. Thesis structure

  • CHAPTER 2. LITERATURE REVIEW

    • 2.1. Theoretical review: Theory of Planned Behavior

    • 2.2. Buying motives and buying barriers of organic vegetable

    • 2.3. Research hypothesis and research model

      • 2.3.1. Self-awareness

      • 2.3.2. Health Concerns

      • 2.3.3. Subjective Norms

      • 2.3.4. Perceived Benefits

        • H2. Perceived Benefits of using organic vegetable impact on the Willingness to purchase organic vegetable.

      • 2.3.5. Perceived Convenience

      • 2.3.6. Perceived Price

  • CHAPTER 3. RESEARCH METHOD

    • 3.1. Research method

    • 3.2. Measurement scale

    • 3.3. Data collection method

    • 3.4. Data analysis method

  • CHAPTER 4. RESULTS & DISCUSSIONS

    • 4.1. Profile of respondents

    • 4.2. Scale validity and reliability

      • Perceived Price:

      • Awareness of Benefits:

      • Subjective Norms:

      • Health Concerns:

      • Perceived Convenience:

Nội dung

INTRODUCTION

Background

Vietnam's favorable weather conditions allow for year-round vegetable cultivation; however, farmers often prioritize productivity over safety, leading to the indiscriminate use of fertilizers, insecticides, and pesticides Mr Nguyen Xuan Hong, Director General of the Plant Protection Department, reports that 80% of plant protection chemicals are misused, and farmers could cut usage by 50% without impacting yields (MARD, 2014) This over-reliance not only contributes to environmental pollution and financial waste but also poses serious health risks, including food poisoning and diseases such as cancer and kidney dysfunction Consequently, ensuring the safety of vegetables has become a critical issue in Vietnam, prompting initiatives like the Foot Safety National Strategic Programme, which aims for 30% of planting farms to adopt VietGAP practices by 2015 (MOF, 2011).

Vegetables are considered as safe when the nitrate and heavy metals, pesticide, and microbial contamination levels are below the standard level which is issued by the MARD

The term "Organic Vegetable" has become increasingly familiar to consumers, referring to vegetables cultivated and processed without synthetic materials like chemical pesticides, synthetic fertilizers, or growth stimulants (FAO, 1999) As demand for organic produce rises, numerous companies are investing in the organic food sector, including An Hòa Co., Organic Farm, Golden Garden, Nông nghiệp GAP, Ánh Ban Mai, Homefood, Mr Sạch, Tràng An, and Bác Tôm.

In 2014, Ms Regina Loo, the Marketing Director at Big C Vietnam, highlighted that the growing demand for organic foods is driven by heightened awareness of health, food safety, and environmental issues, alongside rising per capita income in Vietnam As a result, more households are opting for organic vegetables in their meals and are willing to pay a premium for these healthier choices.

Problem statement

Despite the rising interest in organic vegetables, the market potential remains uncertain due to several challenges One significant drawback is the high price point; for instance, in February 2014, the cost of cabbage in traditional markets ranged from 12,000 to 15,000 VND per kilogram, while organic cabbage was priced between 25,000 and 30,000 VND per kilogram—almost double the cost—leading to buyer skepticism about its safety Additionally, limited supply stemming from high cultivation costs and a lack of product variety further hinders customer access to preferred organic options These factors contribute to a lower demand for organic vegetables, despite the growing interest in healthier food choices.

To enhance the acceptance of organic vegetables among Vietnamese consumers, it is crucial for managers and marketers to identify the key factors influencing purchasing decisions Understanding these factors will clarify the motivations and barriers to buying organic vegetables, ultimately improving consumer knowledge and informing effective management strategies.

Previous studies mainly focus on consumers awareness towards organic vegetables with research objectives are local Vietnamese in general (Truong et al., 2012;

According to Mergenthaler et al (2009), the findings may not accurately represent the reality of organic vegetable consumption Additionally, it is challenging to determine how various factors, such as price, convenience, and consumption trends, influence consumers' willingness to purchase organic vegetables.

Bien Hoa City, located in Dong Nai Province just 30 kilometers from Ho Chi Minh City, has experienced rapid growth with the emergence of new food stores, malls, and supermarkets This research aims to evaluate the awareness of family food buyers regarding health, trust, and perceptions of certified organic vegetables, as well as how price consciousness and buying convenience affect their willingness to purchase organic vegetables in Bien Hoa City.

The findings can benefit organic vegetable sellers and retailers in developing appropriate sales and marketing strategies by improving understanding of potential

Vietnamese consumers – the family food purchaser It may also help government to design strategies for consumer education on the benefits of going organic.

Research objectives and aims

The proposed model will be evaluated in Bien Hoa City, Vietnam, focusing on identifying key factors that influence consumers' willingness to purchase organic vegetables The research aims to inform future awareness-raising, advocacy, and marketing strategies within Vietnam's organic sector.

Thesis structure

The structure of this research is organized in five chapters.

 Chapter 1 is concerned with the introduction of the thesis which includes research background, research problems and research objectives.

Chapter 2 examines the Theory of Planned Behavior by Icek Ajzen and explores initial studies on organic vegetables This discussion will inform the development of hypotheses and a research model to be tested in the subsequent chapter.

Chapter 3 outlines the research design, focusing on the validity and reliability of the study It details the data collection process aimed at evaluating consumer perceptions and awareness, as well as analyzing the key factors influencing their willingness to purchase organic vegetables Additionally, this chapter discusses the research population, sample selection, data collection methods, and the regression model employed for hypothesis testing.

 Chapter 4 shows the strategy of data analysis and discusses the findings

This chapter will provide a summary of testing results for hypotheses given in the chapter 2.

 Chapter 5 relates to the conclusions, implications and limitation Suggestions of further research are also mentioned in this chapter.

LITERATURE REVIEW

Theoretical review: Theory of Planned Behavior

To understand the factors influencing consumer willingness to buy organic vegetables, it is essential to identify the key elements that shape their intentions and trends The Theory of Planned Behavior (TPB), proposed by Ajzen in 1988, serves as a framework for this exploration.

The theory presents a model for predicting human behavior, emphasizing that an individual's actions are driven by their intentions These intentions are influenced by personal attitudes towards the behavior, subjective norms—reflecting the beliefs of significant others regarding the behavior—and the person's perceived control over executing the behavior.

The TPB model, which builds upon Ajzen and Fishbein's Theory of Reasoned Action from 1980, emerged due to the recognition that behavior is not entirely voluntary or controllable This led to the incorporation of perceived behavioral control, enhancing the theory's framework and understanding of human behavior.

Planned Behavior (Rebecca et al., 2012).

Figure 2.1 Theory of Planned Behavior

Research indicates that in various studies, typically only one or two cognitive determinants—attitudes, social norms, and perceived behavioral control—are significantly linked to intentions For instance, Budden and Sagarin (2008) investigated the relationship between attitudes toward exercise, subjective norms, and perceived behavioral control in relation to exercise intentions The findings revealed that both attitudes toward exercise and perceived behavioral control positively influenced intentions to exercise, while subjective norms did not have a unique impact on these intentions.

Buying motives and buying barriers of organic vegetable

Preliminary research indicates that various factors influence consumers' willingness to purchase organic foods, including income, education, gender, family size, and the presence of children Higher income and education levels correlate with a greater likelihood of buying organic foods, reflecting consumers' awareness and social status Additionally, gender plays a significant role, as women tend to purchase organic food more frequently and in larger quantities than men.

Research indicates that smaller households are more inclined to invest in organic products, while the presence of children in the family further enhances the likelihood of purchasing organic food.

Research by Baker et al (2004) identifies key consumer motivations for purchasing organic food, including health concerns, superior nutrition, environmental considerations, food safety, sensory attributes, and ethical values However, barriers such as price, availability, trust issues, and product appearance can hinder these purchases, while financial resources play a crucial role in perceived ability Building on a literature review by Hughner et al (2007), this summary highlights significant beliefs associated with organic food that influence consumer attitudes.

Figure 2.2 Beliefs connected to organic food

A study by Tran Tri Dung and Phan Hoang Ngan (2012) reveals that the demand for organic vegetables among Vietnamese consumers significantly surpasses the available supply, despite organic produce costing 1.5 to 2 times more than the market average The primary consumers are well-educated urban households with above-average incomes, who prioritize food safety and family health These consumers are less concerned about the higher prices of organic vegetables, as their purchasing decisions are driven by the belief that organic options protect their families from the harmful effects of chemicals commonly used in conventional farming Consequently, they have a strong demand for top-quality organic produce.

Research hypothesis and research model

This study examines the Theory of Planned Behavior to identify key factors influencing consumers' willingness to purchase organic vegetables, with this willingness serving as the dependent variable Six critical factors were selected based on previous research: health concerns, subjective norms, self-awareness, perceived price, perceived benefits, and perceived convenience The proposed research framework illustrating these factors is depicted in Figure 2.3.

The demand for organic foods has significantly increased due to increasing awareness on health, food safety and environmental concerns (Briz and Ward, 2009;

Awareness, defined as consciousness, plays a crucial role in marketing by reflecting consumer knowledge of specific products and companies, enabling them to maximize their purchasing decisions (Loureiro et al., 2001; Thomas, 2011) Kumar (2011) emphasizes that awareness and knowledge significantly influence consumer attitudes and behaviors, particularly regarding the purchase of organic foods.

In this research model, self-awareness represented the consumers’ attitude, beliefs and knowledge toward organic vegetable.

H1 Self-awareness impact on the Willingness to purchase organic vegetable

Health-conscious consumers are individuals who prioritize their well-being and actively seek to enhance their health and quality of life They engage in healthy behaviors and are proactive in preventing illness through a focus on nutrition and physical fitness These consumers are motivated to maintain their health and are deeply aware of the importance of their lifestyle choices.

Extensive research has shown that health is a primary motivator for consumers purchasing organic food, with studies indicating a strong correlation between health concerns and the intention to buy organic products (Michaelidou et al., 2008; Molyneaux, 2007; Saher et al., 2006; Lockie et al., 2002; Fotopolous et al., 2000) Evaluating health concerns involves assessing how significant health care is in influencing an individual's willingness to purchase organic vegetables by enhancing self-awareness.

H1a Health Concerns impact on the Self-awareness

Subjective Norms play a crucial role in influencing an individual's willingness to purchase organic vegetables, as they are shaped by the opinions of relatives, friends, colleagues, and social media In the context of Vietnam's growing focus on health and food safety (Loo, 2014), these norms are likely to enhance self-awareness regarding organic vegetable consumption To evaluate Subjective Norms, questions should focus on how family, friends, colleagues, and social media encourage the purchase of organic vegetables, thereby increasing self-awareness among consumers.

H1b Subjective Norms impact on the Self-awareness

Consumers perceive organic vegetables as healthier, tastier, fresher, cleaner, more nutritious, and environmentally friendly A study by Idda (2008) found that 89% of participants believed organic food is healthier, 72% felt it protects the environment, and 39% thought organic vegetables are more flavorful Additionally, research by Ulf (2010) indicated that the perceived quality and taste of organic food products surpass those of conventional options Therefore, this research suggests a positive correlation between perceived benefits and the willingness to purchase organic vegetables.

H2 Perceived Benefits of using organic vegetable impact on the Willingness to purchase organic vegetable

Research indicates that the perception of convenience plays a crucial role in consumers' willingness to purchase organic food Many shoppers are practical and prefer to shop at nearby supermarkets rather than visiting multiple stores As a result, if a local supermarket lacks a diverse range of organic options, consumers are likely to opt for non-organic alternatives.

Organic products are increasingly becoming a regular part of consumer shopping habits, as highlighted by Ulf (2010) This study explores not only the convenience of purchasing organic foods but also the ease of using organic vegetables Since these vegetables are free from chemical pesticides, synthetic fertilizers, and growth stimulants, consumers can save time and effort on washing, cleaning, and cooking.

H3 Perceived Convenience impact on the consumer’s Willingness to purchase

The influence of price on consumer willingness to buy health products, particularly organic food, remains a topic of debate While some experts argue that price and income do not directly correlate with organic sales, others contend that personal income plays a crucial role due to the higher costs associated with organic options Initially, organic food sales were limited to niche markets, appealing primarily to affluent consumers who valued the health and environmental benefits and were willing to pay premium prices However, as the organic market expands, it now reaches a broader audience, including more price-conscious consumers, suggesting that the dynamics of price and income in organic sales have evolved significantly.

H4 Perceived Price impact on the willingness to purchase.

RESEARCH METHOD

Research method

This research utilized a quantitative approach due to its efficiency and cost-effectiveness, allowing the researcher to draw inferences about a larger population from a smaller representative sample Additionally, this method facilitated the testing of hypotheses and related variables while adhering to established standards of validity and reliability (Creswell, 2003).

There were two main phases in the present study: pilot study and main study.

A pilot study was conducted to evaluate the validity and reliability of the questionnaire prior to its distribution Initial data was gathered through face-to-face interviews with 10 participants experienced in purchasing organic vegetables This pilot study aimed to refine the final questions for clarity, estimate an appropriate sample size, and enhance the overall study design before embarking on a full-scale research project Additionally, Cronbach’s alpha and exploratory factor analysis (EFA) were employed to assess the measurement scales.

 The main study was conducted using prepared questionnaire survey The purposes are to confirm the measurement scales, to test the hypotheses and to confirm the research model.

Measurement scale

A paper-based questionnaire was created to gather data for validating the constructs and theory outlined in the research framework Initially developed in English, it was later translated into Vietnamese and structured into three sections The first section focused on screening to identify appropriate respondents The second section comprised items measuring seven constructs in the proposed model, utilizing a five-point Likert scale ranging from 1 (strongly disagree) to 5 (strongly agree) These items were adapted from previous research to align with the context of organic vegetable purchasing intentions The final section of the survey addressed demographic and socioeconomic status questions.

Table 3.1 Summary of scales used in survey questionnaire

HEALTH CONCERNS: Relating to the interviewees’ concerns of health.

(Health01) You always care about health.

(Health02) You are interested in getting health information.

(Health03) You will immediately stop using a product if you find out it is harmful for your health.

SUBJECTIVE NORMS: Refer to social individual, which affect the willingness to purchase vegetable, such as relatives, friend, or colleagues, condone, social media

To assess Subjective norms, the questions revolved around whether family, friends, colleagues and social media would encourage one to buy organic vegetable by increasing self- awareness.

(SuNorm04) You buy organic vegetable because people around you use it (colleagues/ friends/ relatives).

(SuNorm05) You buy organic vegetable because doctor said it is good for health.

(SuNorm06) Relatives/ friends think organic vegetable is good for your health.

(SuNorm07) Using organic vegetable is modern trend.

(SuNorm08) You buy organic vegetable because TV/newspapers warn about lots of vegetable over fertilized with chemical synthetic.

SELF-AWARENESS: The demand for organic foods has increased sharply due to increasing awareness

(Aware09) You believe organic vegetable do not have harmful chemical synthetic.

(Aware10) You believe organic vegetable help prevent on health, food safety and environmental concerns (Briz and

According to Kumar (2011) stated that awareness and knowledge has turn into a significant positive elements in consumer attitude towards buying organic foods. illness.

(Aware11) You think using organic vegetable is health caring.

(Aware12) Using organic vegetable help you feel more assured.

Relating to perceived benefits of interviewees toward organic vegetables.

(Benefit13) You think organic vegetable have better taste than other vegetables.

(Benefit14) You think organic vegetable is more nutritious than other vegetables.

(Benefit15) You think organic vegetable is more environment friendliness.

Relating to perceived convenience in buying and using organic vegetables.

(Conven16) You can easily buy organic vegetable.

(Conven17) Organic vegetable have the species you need

(Conven18) Using organic vegetable help you save time from washing compare to other vegetables.

PERCEIVED PRICE: Relating to perceived price of interviewees toward organic vegetables.

(Price19) You think price of organic vegetable is too much higher than normal vegetable.

(Price20) Price of organic vegetable is cheap.

(Price21) Price of organic vegetable is worth.

The questionnaire outlines various actions for consumers, enabling us to gauge their agreement with certain hypotheses This assessment helps us understand their willingness to purchase organic vegetables, ultimately aiding in the prediction of their future buying behavior.

(Willing22) You will surely buy organic vegetable.

(Willing23) You will buy safe vegetable which may contain a determined amount of chemical synthetics, but price is cheaper.

(Willing24) You will continue buying vegetables sold at traditional markets.

(Willing25) You made buying decision without caring it is organic vegetable or not.

(Willing26) You will introduce organic vegetable to your relatives, friends and colleagues.

Data collection method

Reliable sample statistics are crucial for accurately representing population parameters Hair et al (2006) suggest that for factor analysis, the minimum sample size should be at least five times the number of items analyzed In this study, with 26 items to evaluate, a minimum of 130 completed questionnaires is necessary While larger sample sizes are generally preferred (Field, 2005), it is important to note that "big" is not always synonymous with effective survey design (Bell, 1991), and practicality must also be considered (Field, 2005; Fink, 2003).

For the current study, it is both reasonable and reliable to collect data from approximately 200 individuals using a convenience sampling method The research will be conducted in Bien Hoa City, targeting decision-makers responsible for family food purchases, including both males and females aged 18 and older.

Data analysis method

The database after cleaning and reversing would be analyzed via two steps:

Descriptive statistics were utilized to assess the current consumption patterns of organic vegetables in Bien Hoa City This analysis offers valuable insights into consumer demographics, including age, education level, occupation, family characteristics, and monthly food expenditure.

 Then, to measure consumer willingness to pay for organic vegetables, the regression method will be applied.

All analyses will be conducted using SPSS software.

RESULTS & DISCUSSIONS

Profile of respondents

The study analyzed a sample of 202 participants, comprising 190 females (94.1%) and 12 males (5.9%), indicating that women predominantly influence food purchasing decisions within families The most represented age groups were 41-50 years old (33.7%) and 31-40 years old (31.7%), while those aged 21-30 made up 23.8% Additionally, individuals aged 50 years accounted for 7.4%, and only 3.5% of the participants were under 20 years old.

The respondents' educational background included 37.6% with a high school diploma, 35.1% holding a college degree, 22.3% possessing a bachelor's degree or higher, and 5.0% having completed class 9 or below In terms of job classifications, the survey revealed that 36.1% were workers, 32.2% were office staff, 16.8% identified as housewives or husbands, 11.9% were business owners, 2.0% were students, and 1.0% held other occupations.

Demographic profile Category Frequency Percentage

The relationship between monthly food expenses and the frequency of organic vegetable consumption reveals that families with lower food budgets tend to prefer traditional market vegetables over organic options due to the higher costs associated with organic produce Potential consumers of organic vegetables are primarily families with 1-2 members who spend over 3 million monthly on food, with at least 75.5% of these families purchasing organic vegetables more than once a week Additionally, families with 3-5 members also show a propensity for buying organic vegetables.

Respondents 33.7% had not used organic vegetable before

66.3% had already used organic vegetable

21% used 1 time only or less than 1 time/week

At least 79.8% continued using organic vegetable

36.4% used more than 3 times/week 63.6% used 1-3 times/week and monthly expense for food more than 5 million (at least 78.4% within this range had used organic vegetable more than 1 time/week).

According to the data, one-third of families had never used organic vegetables, with nearly 50% of these families consisting of 3-5 members and spending between 3-5 million VND per month on food Among those who did use organic vegetables, one-third consumed them 1-3 times per week, while 19.3% used them more than three times a week, and 13.4% used them less than once a week For regular users of organic vegetables, over 50% consumed them 1-3 times per week, 29% exceeded three times a week, and only 20% used them once a week This indicates a growing trend towards increased frequency of organic vegetable consumption over time.

Figure 4.1 Using organic vegetable frequency

A recent analysis reveals a significant correlation between age and the preference for organic vegetables, indicating that older consumers are more inclined to select organic options for their family's meals Notably, the majority of organic vegetable users fall within the 41 and older age group, highlighting a trend among older adults prioritizing health-conscious food choices.

50 years old (25.2%) and 31-40 years old (20.8%).

Table 4.2 Age range * Using organic vegetable frequency

< 1 1-3 > 3 Never time/ times/ times/ Total % had used organic vegetable

% had used organic vegetable within 134

% had used organic vegetable within age week week week families using range

Families with children are significantly more likely to use organic vegetables, with 84% of these households incorporating them into their diets, compared to only 60.5% of families without children Among families with children, 37% of one-child households, 28.4% of two-child households, and 14.9% of those with more than two children reported using organic vegetables, while only 19.4% of no-child families did the same Additionally, education plays a crucial role, as 82.2% of consumers with a bachelor's degree or higher utilize organic vegetables, indicating that lower educational levels correlate with decreased usage of organic produce.

Figure 4.2 Relationship between organic vegetable using and number of children in the family and family food purchaser educational level

Scale validity and reliability

To ensure the validity and reliability of the scales, the methodology established by Flynn et al (1994) was utilized Initially, the unidimensionality of the seven measures was evaluated using principal component analysis, with the expectation that the results would reveal a single factor, thereby confirming the validity of the scales.

 Prior to the extraction of the factors, the test of Kaiser-Meyer-Olkin (KMO) Measure of Sampling Adequacy (Kaiser, 1974; 1970) and Bartlett's Test of

Sphericity, as discussed by Bartlett in 1950, is an important statistical concept The Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy, introduced by KMO, helps determine if the sample size is sufficient for reliable factor extraction, as noted by Field in 2009 The KMO index varies between 0 and 1, providing a clear indication of sampling adequacy.

For factor analysis to be deemed appropriate, a Kaiser-Meyer-Olkin (KMO) value of 0.50 or higher is required (Tabachnick & Fidell, 2007; Haier et al., 1998) Additionally, the Bartlett's Test of Sphericity must yield a significant result (p < 0.05), indicating that the items have sufficient correlations and are suitable for analysis.

All items demonstrated strong factor loadings (0.5), confirming their unidimensionality and supporting the convergent validity of the three scales, as outlined by Hair et al (1998).

 The cumulative percent of variance extracted must > 50% (Hair et al., 1998). Final results of scale validity tests were reported in the table below.

Table 4.3 EFA for individual scales

During the validation process, the item Conven18 was deleted as loading factor < 0.5 and the scale Willingness to Purchase was splitted into two factors:

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