Factors influencing consumers purchase intention of chilled fresh meat in vietnam

VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY NGUYEN THI ANH FACTORS INFLUENCING CONSUMERS’ PURCHASE INTENTION OF CHILLED FRESH MEAT IN VIETNAM MASTER’S THESIS VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY NGUYEN THI ANH FACTORS INFLUENCING CONSUMERS’ PURCHASE INTENTION OF CHILLED FRESH MEAT IN VIETNAM MAJOR: BUSINESS ADMINISTRATION CODE: 8430101.01 RESEARCH SUPERVISORS: Prof HISASHI KURUTA Assoc Prof PHAM THI LIEN Hanoi, 2021 ii ACKNOWLEDGMENT Firstly, I would like to express my sincere gratitude to my advisors, Prof Hisashi Kuruta and Assoc Prof Pham Thi Lien, for their patience, motivation, enthusiasm, and valuable advice in all the time of research and writing this thesis This is the first time I have conducted a research, without their prompt and detail guidance, this thesis would not have been completed Furthermore, I also would like to thank Prof Yoshiki Matsui and Prof Motonari Tanabu for their insightful comments and suggestions to improve my research during weekly joint seminars I want to say thanks to all respondents who helped me answer the questionnaires for this research Thanks to my family, and my fellow classmates for holding me with countless supports during my master study, especially to Mr Nguyen Nhu Nam Anh and Ms Nguyen Thi Ha for their shares and encouragement to finish this paper Finally, my sincere thanks also send to all the professors and faculty members in Vietnam Japan University, Yokohama National University for their supports during the past two years ABSTRACT Purpose - The purpose of this research is to examine whether product information on label and traceability system can influence on consumer purchase intention towards chilled fresh meat in Vietnam Methodology/ approach – The major data instrument is the questionnaire survey methodology, which yielded a total of 104 valid responses The hypothesized associations between all variables are investigated using structural equation modeling Findings – The finding shows that both label and traceability system are perceived to be useful tools for consumers to evaluate chilled fresh meat The result also confirms the important role of traceability system in building consumer trust in product, and positively influencing on consumer attitude and purchase intention However, this research found that label can impact on consumer trust only when product diagnosticity can be highly perceived by consumers Finally, consumers are willing to pay a higher price for chilled fresh meat than normal meat Implications – Producers, marketers should provide more product information via label and traceability system to help consumers understand and evaluate accurately chilled fresh meat In the context of food safety issues, producers should apply traceability system to provide transparent and credible information to consumers to build consumer trust in product Value of the paper – This research has examined the effect of both label and traceability system on purchase intention by incorporating critical factors based on previous research to gain a better insight of consumer behavior toward chilled fresh meat • Keywords: Labeling; Traceability System; Product Diagnosticity; Trust; Chilled Fresh Meat; TABLE OF CONTENTS ACKNOWLEDGMENT ABSTRACT LIST OF TABLES i LIST OF FIGURES ii CHAPTER INTRODUCTION 1.1 Background of the research 1.2 Problem statement 1.3 Research objectives 1.4 Scope of the research 1.5 Significance of the research 1.6 Research structure CHAPTER LITERATURE REVIEW 2.1 Literature review 2.1.1 Revealed information via label .9 2.1.2 Revealed information via traceability system .10 2.2 Research model and hypothesis development 12 2.2.1 Product diagnosticity 12 2.2.2 Trust .13 2.2.3 Attitudes 14 2.2.4 Purchase intention 15 2.2.5 Willingness to pay a premium price 16 2.2.6 Research model .16 CHAPTER RESEARCH METHODOLOGY 18 3.1 Research design 18 3.2 Measurements 18 3.3 Questionnaire and Pilot testing 20 3.4 Data collection 20 3.4.1 Secondary data 20 3.4.2 Primary data 21 3.5 Data analysis approach 21 3.5.1 Demographic analysis 22 3.5.2 Measurement model test .22 3.5.3 Structural model test .22 CHAPTER DATA PRESENTATION AND FINDINGS 24 4.1 Demographic analysis 24 4.2 Measurement model test 28 4.2.1 Descriptive analysis 29 4.2.2 Assessing reliability of the constructs 30 4.2.3 Assessing convergent validity of the constructs 32 4.2.4 Assessing discriminant validity of the constructs 32 4.3 Structural model assessment for hypothesis testing 33 4.3.1 Detecting multicollinearity 33 4.3.2 Hypothesis testing 34 4.3.3 Effect sizes f2 35 4.3.4 Mediating effects 36 4.3.5 Specific indirect effects 38 4.3.6 Willingness to pay a premium price 39 CHAPTER 5: DISCUSSION AND CONCLUSION 41 5.1 Discussion 41 5.2 Practical implication 44 5.3 Conclusion, limitations, and future research recommendations 48 REFERENCES 50 APPENDIX 59 LIST OF TABLES Table 01.1 Human consumption of meat per capital in Vietnam Table 03.1 Measurement items for the structural model 19 Table 04.1 Gender distribution 24 Table 04.2 Descriptive analysis 29 Table 04.3 Item loading and composite reliability of the constructs – 1st test .30 Table 04.4 Item loading and composite reliability of the constructs – 2nd test 31 Table 04.5 Convergent validity among constructs .32 Table 04.6 Discriminant validity among constructs .33 Table 04.7 Collinearity statistics (VIF) of exogenous variables 33 Table 04.8 Hypothesis testing .34 Table 04.9 Effect sizes 35 Table 04.10 Mediating effects 36 Table 04.11 Specific indirect effects 38 i LIST OF FIGURES Figure 2.1 Proposed conceptual model 17 Figure 4.1.2Age distribution 24 Figure 4.2.3Education level distribution .25 Figure 4.3.4Location distribution 26 Figure 4.4.5Average monthly income of respondents 26 Figure 4.5.6Respondents’ frequency of consuming meat .27 Figure 4.6.7Respondents’ frequency of buying fresh meat 27 Figure 4.7.8Place to buy fresh meat 28 Figure 4.8.9The measurement model 32 Figure 4.9.1Willingness to pay a premium price 39 Figure 4.10.1Amount of premium price 39 ii CHAPTER INTRODUCTION 1.1 Background of the research In Vietnam, meat products such as pork, beef, poultry are daily food products in Vietnamese lives The country's per capita consumption has been steadily increasing as shown in Table 1.1 In which, pork is the leading source of food for Vietnamese consumers among meat products Particularly, Vietnamese per capita pork consumption was raised from 28.88kg/capital/ year in 2016 to 29.72kg/capital/year in 2020 and forecasted to be 31.1kg/capital/ year in 2026 The increase in pork demand as well as other meat products, stems from the increasing income of the people and the change in diet towards consuming more protein-rich products In addition, the rapid urbanization rate has also been recognized as another reason for the increase in consumption of animal-based products Table01.1 Human consumption of meat per capital in Vietnam Dataset: OECD-FAO Agricultural Outlook 2017-2026 Country Viet Nam Variable Human consumption per capita (kg per capital) Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Commodity Beef and veal 9.92 10.09 10.13 10.11 10.14 10.21 10.29 10.34 10.38 10.45 10.57 Pig meat 28.88 29.01 29.20 29.53 29.72 29.86 30.06 30.43 30.72 30.88 31.10 Poultry meat 13.23 13.69 14.03 14.43 14.75 15.08 15.52 15.93 16.35 16.77 17.22 Sheep meat 0.11 0.11 0.12 0.12 0.12 0.13 0.13 0.13 0.14 0.14 0.14 Source: OECD (2017) Despite a constant trend in meat sector growth over the last few years, meat production has not been able to keep up with demand In Vietnam, farmers, slaughtermen, retailers, and consumers are the four primary stakeholders in the most typical meat value chain Livestock is bought from various farms, slaughtered by slaughtermen, and then sold to retailers for processing, finally, meat is delivered to the market for sales to customers (Nguyen et al., 2020) Family-owned farms with small-scale are still prevalent today in Vietnam For example, the extremely small-scale household-based farmers with 1-5 pigs account for 84 percent of all farmers raising pigs in 2006 (Lapar et al., 2012) As a result, output levels and prices are unscalable, and breeder quality is inconsistent Regarding meat processing, according to Department of Agriculture and Rural Development Hanoi, in 2018, there are 988 livestock slaughterhouses, 937 of which are family-run and have a capacity per day from to pigs slaughtered in Hanoi (Nguyen, 2019) Meat inspection and food hygiene is not practiced in most of these small-scale slaughterhouses Retailers almost sell fresh meat at the traditional wet market where there is inadequate cleanliness and a significant risk of microbial contamination (Dang, 2019) The most common type of meat in Vietnam is normal meat which has not been treated in any way to ensure its preservation, store at normal temperature, and delivered directly to traditional markets for sales within a day Meats are 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