Factors influencing farmer's purchase behavior : The case of UZ45 in Lam Dong province

Abstract

To understand consumers’ purchase behavior in the case of product UZ45 (fungicide) in Lam Dong province, based on Theory of Reasoned Action, researcher proposed research model and hypotheses. Measurement scales were developed to measure constructs. Full measurement model was tested by CFA procedure. Then, structural equation model was tested. Models fit the data well. Proposed hypotheses were supported and interpreted. Factors influencing consumers’ purchase behavior includes consumers’ attitude toward consuming UZ45, consumers’ belief about UZ45’s quality and price, subjective norm, normative belief from colleague and normative belief from retailer. Among them, consumers’ attitude toward consuming UZ45, consumers’ belief about UZ45’a quality and normative belief from colleague are more important factors. Consumers’ attitude toward using the product impacts stronger on consuming behavior than subjective norm. Consumers’ belief about product’s quality influences stronger on consumers’ attitude toward using product than consumers’ belief about product’s price. Normative belief from colleague affects stronger on subjective norm than normative belief from retailer. It also impact consumer’s belief about product’s quality and price.

The research then suggested that in order to increase sales of UZ45, the company should position on consumer mind that the product is good quality and on retailers’ mind that UZ45 is a profitable product. Some features were suggested to be included in the product such as solubility, sticky and fungi control. The research also mentioned the possibility of increase consumers’ price to fund communication. Retailers’ profit was also noted as an issue in distribution channel. An integrated marketing communication strategy was suggested. Marketing activities should focus more on farmer than retailer because farmer can affect other farmers better. Advertising and event were suggested to communicate to farmers. A farmer can be considered as a good spoken person in the communication plan because he can influence well consumers’ perception about quality. But care also should be spent to retailers because they indirectly affect consumers’ attitude, perception about quality and cost beside direct effect on subjective norm. Trade promotion is the recommended tool to communicate with retailers.