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.