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Satisfaction and Purchase Intention of Imported Fresh Fruits Based On Familiarity: A Case of Korean Pears in Taiwan
Satisfaction and Purchase Intention of Imported Fresh Fruits Based On Familiarity: A Case of Korean Pears in Taiwan
https://www.emerald.com/insight/0007-070X.htm
Abstract
Purpose – This study aims to investigate the influence of image and reputation of imported fresh fruits on
consumer satisfaction and purchase intentions. The moderating role of familiarity with imported fruits was
also assessed.
Design/methodology/approach – A total of 332 Taiwanese consumers who had purchased imported
Korean pears participated using an online survey and were grouped based on their familiarity to Korean pears.
Multi-group analysis with structural equation modeling was used to test the hypotheses.
Findings – Image and reputation of imported Korean pears were identified as predictors of the satisfaction
and purchase intention. Multi-group analysis results found the moderating effect of familiarity between image
and satisfaction. Images were identified as predictors of the satisfaction and purchase intention of imported
Korean pears for consumers with low familiarity, whereas image did not show any influence on satisfaction for
consumers with high familiarity.
Originality/value – This study can contribute to the limited understanding of imported fresh fruit markets
and provides insights into familiarity for consuming imported fresh fruits.
Keywords Familiarity, Image, Reputation, Satisfaction, Imported fresh fruits, Korean pears, Taiwan
Paper type Research paper
Introduction
Taiwan is a major market for imported fruits and fruit products. Taiwan imported fresh fruit
worth US$724 m in 2016, with the USA, New Zealand, Chile, Japan and South Korea as top
importers (ITA, 2017). Imported fruit contributes a substantial share to the volume and value
of the Taiwan fruit market (Milla et al., 2009; Yeh et al., 2010). Among the imported fresh
fruits, imported Asian pears were allotted via quota system under the WTO Agreement.
Taiwan’s pear production is decreasing every year, and the shortage is dependent on imports.
This work was carried out with the support of “Cooperative Research Program for Agriculture Science
and Technology Development (Project No. PJ01241601),” Rural Development Administration, Republic
of Korea.
We acknowledge the financial support of “Cooperative Research Program for Agriculture Science British Food Journal
and Technology Development (Project No. PJ012416)” Rural Development Administration, Republic of © Emerald Publishing Limited
0007-070X
Korea. DOI 10.1108/BFJ-08-2019-0639
BFJ Thus, imports of fresh pears increased every year. According to a Global Agriculture
Information Network (GAIN) report from the US Department of Agriculture’s (USDA’s)
Foreign Agricultural Service (2019), the major importers of fresh pears are Korea (63.6%),
New Zealand (13.0%), the USA (12.9%) and Japan (9.7%). Korean pear production is expected
to climb, which was caused by favorable weather conditions during the fruit growing period
from May to early September. The USA and Taiwan are the two main export markets for
Korean fresh pears with a 78% share.
Increasing the availability of imported food has increased the diversity of Taiwanese food
consumption. Fruit consumption increased more than 30% in the past decade, with fresh fruit
as the highest percentage; this fruit consumption trend continues increasing according to the
latest Taiwanese health survey (Pan et al., 2011; Lo et al., 2017). Taking these findings into
consideration, it is interesting to know how the Taiwanese decide which foods to choose,
especially in a country that imports a large percentage of their food.
Most research on imported food category focuses on trade-related aspects, nutritional
properties, production methods and processing and packaging issues (Knight et al., 2007;
Sirieix et al., 2011; Imperato et al., 2011; Bae et al., 2015). However, little research has been done
specifically on the role of image, reputation and familiarity with imported fruits on
consumer’s perception and behavior. This study intends to focus on determinants of choice of
imported fresh fruits. Previous studies found that image in various food products such as
organic food and genetically modified food creates positive attitudes that induce purchase
intention of the food product (Zagata, 2012; Arvola et al., 2008). Reputation of product is
important to gain trust to the product in a new market (Jimenez and Martin, 2010). In addition,
this research investigates the moderating role of familiarity with imported food on consumer
purchase intentions to purchase imported foods. When consumers are unfamiliar with the
product, the image is often one of the biggest cues for judging the product. Therefore, it is
important for the food marketers to ignite exposure to food products for the consumer to be
familiar with the product and stimulate the consumption of new food products. The previous
studies also showed that the familiarity level affects the purchase decision-making; thus,
different marketing strategies should be created according to the level of familiarity between
consumers (Zhou and Nakamoto, 2007).
Although various food choice models reflect the complexity of understanding food
_
choice behavior (Sobal et al., 2014; Pula et al., 2014; Ozimek and Zakowska-Biemans, 2011;
Gindi et al., 2016; Tung et al., 2015), few studies have investigated the potential influences of
familiarity, specifically those associated with imported foods. Nonetheless, imported fruit is
likely to be popular in Taiwan, as the demand for fruit increases as consumers become more
health conscious (Chen, 2011). Imported fruits have become more popular because of the
high amount of pesticide residues from Taiwan fruits. Taiwan Council of Agriculture (2005)
reported that Taiwan’s pesticide use is four times higher than the international average,
indicating that fruits and vegetables purchased frequently in Taiwan have pesticide
residue. This research investigated the extent to which product familiarity affects
purchasing imported fruit, in this case, the Korean pear in Taiwan. Asian pear is a popular
fruit in Taiwan (USDA Foreign Agriculture Service, 2019), and certain characteristics of
imported fruits like packaging, grading and product labels were preferred (Hsu and
Wann, 2004).
This study can contribute to the limited understanding of imported fresh fruit markets
and provides insights into familiarity for consuming imported fresh fruits. This study has an
insight into food choice determinants and their effect on consumer satisfaction and purchase
intention of imported fruits. This study is also unique, in that it tested the moderating role of
familiarity on the relationships among image of imported fruits, reputation of imported fruits,
satisfaction and purchase intentions. Investigating the moderating effect could be helpful
toward gaining a deeper understanding of the relationship between image, reputation and
post-consumption responses. The purpose of this study is to investigate the effect of image Korean pears
and reputation of imported fruits on consumer satisfaction and purchase intentions and
moderating role of familiarity with imported fruits on the impact of image and reputation of
imported fruits on consumer satisfaction and purchase intentions in Taiwan.
Literature review
Product quality cues in food choice
Impact of quality attributes (intrinsic and extrinsic) has been interested in choosing food
products. According to Richardson, Dick and Jain (1994), quality cues are composed of
intrinsic and extrinsic cues. Intrinsic cues are product-related cues that cannot be
manipulated without altering the product’s physical properties such as variety, taste,
texture, aroma and producer. Extrinsic cues such as price, brand and packaging style can be
controlled by marketers. These are used as proxies for the intrinsic nature of the product
being evaluated in many cases. Indeed, consumers derive the perceived value of a product not
only by intrinsic quality attributes but also from a set of intangible elements like price, image
and origin. These can be considered as quality cues related to the consumer expectation and
influence the purchasing decision-making process (Galati et al., 2018).
The signaling theory posits that consumers use signals or cues that companies send to the
market. These signals can reduce their perceived risk by inferring all possible information
about products (Sweeney et al., 1999). For example, image and reputation are addressed as a
signal used by consumers when forming attitudes and beliefs about a product. Product image
is one of the extrinsic cues. Consumers use extrinsic cues such as brand image as the reference
for evaluating the product to reduce the perceived risk; when consumers perceive that the
brand image is better, they have a lower perceived risk (Kotler and Keller, 2008). A good
image of the product can be used as the tool to increase consumer evaluation and purchase
intention via perceived quality (Bian and Mountinho, 2011). The more positive a product
image, the higher consumers’ purchase intention would be. Images of domestic fruits and
imported fruits were contradictory in Europe and the USA versus Asian countries. Domestic
fruit products are generally preferred by people in comparison with imported fruit products
in the UK and USA (Weatherell, 2003; Schneider and Francis, 2005). However, consumers in
the Asian markets such as China, Taiwan and Indonesia preferred imported fruits than
locally grown fruits because of the symbolic and hedonic values imported fruits provide to
the local (Kim and Ahn, 2009; Terano et al., 2016).). Korean pears tend to be preferred over
Japanese for its rich juice, high sugar content and crispy texture (Kim and Lee, 2012).
Similarly, Taiwanese are favorable toward characteristics of packaging, grading, visual
looks, promotion and labels of US fresh fruits. Consumers value packaging or labels of
imported fruits than grading of imported US fruits (Hsu and Wann, 2004).
H1. Image of imported fruits influences satisfaction.
H2. Image of imported fruits influences purchase intention.
Methodology
Sample and data collection
The survey was conducted online in August 2017. The sample was limited to Taiwanese
consumers aged 19 years and older who had purchased Korean pear. Participants were asked
if they would be willing to participate in a survey with regard to Korean pears. Once
participants agreed to participate in the study, researchers provided a self-administered
questionnaire. Through this process, in total, 332 qualified responses were collected.
Subsequently, the sample was divided into two groups using their level of familiarity with
Korean pear (mean 5 2.89): a low familiarity group (n 5 167) and a high familiarity group
(n 5 165) based on a median score of familiarity (median 5 2.75) from the multiple group
analysis. Previous literature supports dichotomization of a continuous variable at the median
as a more reliable measure to indicate whether an individual is high or low on the attribute of
interest (Iacobucci et al., 2015). It is the most popular method of categorizing an attribute of
interest like the level of familiarity.
Measurement
All items of measurement were measured on a five-point Likert scale (1 5 strongly disagree;
5 5 strongly agree). The questionnaire included the items on image, reputation, satisfaction
and behavior intention. Image was assessed by evaluating multiple product attributes (i.e.
taste, safety, reliability, value and healthiness) on a five-point Likert scale (1 5 strongly
disagree; 5 5 strongly agree). The image items were developed based on previous studies
(Almli et al., 2011; Seo and Yun, 2015). Reputation measurement items were slightly
modified from Kaynak and Kara (2002) and Doney and Cannon (1997). Additionally,
respondents were asked about the socio-demographic characteristics (gender, age, income
and level of education). The questionnaire and research methods of this study were
approved by the institutional review board (IRB) of the university to which the researcher
Familiarity
Image Satisfaction
Behavioral
Reputation Intention Figure 1.
Conceptual model
BFJ belonged. To verify the reliability and validity of the questionnaire, a pilot survey was
translated to Taiwanese in Korea, and any duplicate or difficult-to-understand words were
revised.
Data analysis
Descriptive statistics were conducted to profile respondent demographics. The dimensions of
interest were extracted using exploratory factor analysis. The hypotheses were tested using
structural equation modeling (SEM). Following the two-step approach, a confirmatory factor
analysis (CFA) with a maximum likelihood was first performed to estimate the measurement
model, and then the structural model was estimated to examine the causal relationships
among the hypothesized constructs. Multiple group analysis was performed to test the
moderating effect of the level of familiarity with Korean pear on the relationships among
image, reputation, satisfaction and purchase intention. Path coefficients in the constrained
and unconstrained models were compared for each relationship. The constrained model sets
each of the three structural coefficients as equal between the groups, whereas the
unconstrained model allows this parameter to vary across groups. Significant differences in
chi-square values between the constrained model and unconstrained model were assessed.
Results
Table 1 shows the demographic characteristics of the respondents. The 332 respondents were
nearly evenly divided between males and females. In terms of age, one-third of the
respondents were in their 40s, and another third in their 50s. Nearly three-quarters of the
respondents were married. The household monthly income of the respondents ranged from
US$2,001–US$2,600. Almost three-quarters of the respondents had graduated from a four-
year college or vocational school. Most respondents were office workers, self-employed or
government officials. These socio-demographic characteristics indicate a wide range of socio-
economic classes of the population took part in the survey, actually having bought Korean
pear. The sample is somewhat biased toward higher educational levels as the respondent
selection procedure points to a higher probability of purchase among better educated
consumers. Milla et al. (2009) found that income and education level are important influences
on Taiwanese consumer motivation for buying fruit. Consumers tend to buy more fruit when
they have a higher income and more education.
All the respondents were placed into one of the two groups; 167 were put in a high
familiarity group (consumers who have eaten Korean pear since childhood), and 165 were put
in a low familiarity group (consumers who have not eaten Korean since childhood). The
respondents in the high familiarity group were more than half male, while the respondents in
the low familiarity group were more than half female. More than a third of the high familiarity
group was mostly in their 40s, but a comparable percentage of the low familiarity group was
in their 50s. The results of t-test found that high familiarity group showed higher image,
reputation, satisfaction and purchase intentions than the low familiarity group (Table 2).
Measurement model
Following the two-step approach (Anderson and Gerbing, 1988), we first conducted the CFA.
The fit of the measurement model was satisfactory: x2/df 5 296.876/80 5 3.71; p < 0.001;
CFI 5 0. 948; TLI 5 0.932; RMSEA 5 0.090; SRMR 5 0.039 (Table 3). All Cronbach alpha
exceeded the minimum requirement of 0.70, and the factor loading of all items exceeded 0.70,
revealing high reliability and convergent validity (Anderson and Gerbing, 1988). Taken
together, these results suggest convergent validity.
High familiarity group Low familiarity group Total
Korean pears
(N 5 165) (N 5 167) (N 5 332)
Gender
Male 92 (55.8%) 82 (49.1%) 174 (52.4%)
Female 73 (44.2%) 85 (50.9%) 158 (47.6%)
Age
20–29 11 (6.7%) 20 (12.0%) 31 (9.3%)
30–39 41 (24.8%) 22 (13.2%) 63 (19%)
40–49 67 (40.6%) 54 (32.3%) 121 (36.4%)
50–59 45 (27.3%) 71 (42.5%) 116 (34.9%)
Marital status
Married 132 (80.0%) 109 (65.3%) 241 (72.6%)
Unmarried 32 (19.4%) 56 (33.5%) 88 (26.5%)
Household average monthly income
Less than NT$60,000 24 (14.5%) 29 (17.4%) 53 (16%)
NT$60,001–NT$80,000 28 (17.0%) 39 (23.4%) 67 (20.2%)
NT$80,001–NT$100,000 29 (17.6%) 32 (19.2%) 61 (18.4%)
NT$100,001–NT$120,000 27 (16.4%) 20 (12.0%) 47 (14.2%)
NT$120,001–NT$140,000 21 (12.7%) 19 (11.4%) 40 (12.0%)
NT$140,001–NT$160,000 15 (9.1%) 7 (4.2%) 22 (6.6%)
NT$160,001–NT$180,000 4 (2.4%) 9 (5.4%) 13 (3.9%)
More than NT$180,001 17 (10.3%) 12 (7.2%) 29 (8.7%)
Education
High-school graduate or 16 (9.7%) 22 (13.2%) 38 (11.4%)
below
Vocational school 47 (28.5%) 40 (24.0%) 87 (26.2%)
4-year college degree 76 (46.1%) 63 (37.7%) 139 (41.9%)
Master’s degree 25 (15.2%) 41 (24.6%) 66 (19.9%)
Occupation
Self-employed 22 (13.3%) 18 (0.8%) 40 (12.0%)
Office worker 107 (64.8%) 108 (64.7%) 215 (64.8%)
Officials 17 (10.3%) 15 (9.0%) 32 (9.6%)
Full-time housewife 13 (7.9%) 15 (9.0%) 28 (8.4%)
Table 1.
Student 0 (0.0%) 5 (3.0%) 5 (1.5%) Demographics of
Other 6 (3.6%) 6 (3.6%) 12 (3.6%) respondents based on
Note(s): High familiarity group: consumers who have eaten Korean pears since childhood; low familiarity familiarity with
group: consumers who have eaten Korean pears only recently Korean pears
Image
Korean pears are safe 3.62 ± 0.67 3.11 ± 0.58 7.47 0.000***
Korean pears are trustworthy 3.70 ± 0.69 3.16 ± 0.61 7.44 0.000***
Korean pears are valuable 3.76 ± 0.75 3.22 ± 0.64 7.07 0.000***
Korean pears have good taste 3.96 ± 0.68 3.48 ± 0.72 6.22 0.000***
Korean pears are good for health 3.67 ± 0.71 3.17 ± 0.67 6.52 0.000***
Reputation
Korean pears are famous 3.92 ± 0.69 3.45 ± 0.75 5.88 0.000***
Korean pears are well known among 3.61 ± 0.70 2.91 ± 0.76 8.66 0.000***
Taiwanese
Satisfaction
I am satisfied with the purchase of 3.90 ± 0.61 3.47 ± 0.66 6.18 0.000***
Korean pears
I am satisfied with overall quality of 3.90 ± 0.60 3.51 ± 0.68 5.63 0.000***
Korean pears
Purchase intention
Table 2. I will buy Korean pears in the future 3.88 ± 0.64 3.28 ± 0.71 8.14 0.000***
Comparison of Korean
I will recommend purchasing Korean 3.78 ± 0.70 3.03 ± 0.64 10.19 0.000***
pear image, reputation,
satisfaction and pears to the people around me
purchase intention Note(s): High familiarity group: consumers who have eaten Korean pears since childhood; low familiarity
between high and low group: consumers who have eaten Korean pears only recently; five-point Likert scale; 1 5 strongly disagree;
familiarity group 5 5 strongly agree; ***p < 0.001
Familiarity 0.87
I have eaten Korean pears since childhood 0.71
I am familiar with Korean pears 0.91
I usually ear Korean pears 0.79
How familiar are you with Korean pears 0.79
Image 0.92
Korean pears are safe 0.86
Korean pears are trustworthy 0.90
Korean pears are valuable 0.86
Korean pears have good taste 0.77
Korean pears are good for health 0.82
Reputation 0.78
Korean pears are famous 0.82
Korean pears are well known among Taiwanese 0.78
Satisfaction 0.94
I am satisfied with the purchase of Korean pears 0.94
I am satisfied with overall quality of Korean pears 0.95
Purchase intention 0.87
Table 3. I will buy Korean pears in the future 0.87
Results of CFA I will recommend purchasing Korean pears to the people around me 0.90
The moderating effect of familiarity Korean pears
Using the two groups classified by the degree of familiarity with Korean pear, multiple group
analysis was conducted to test whether familiarity with Koran pear changes the relationships
among image of Korean pear, reputation of Korean pear, satisfaction and purchase intention.
The x2 value of the unconstrained model (the coefficients in each group was allowed to be
freely estimated) was subtracted from the x2 value of the constrained model. First, the link
between image and satisfaction was compared. The differences in x2 between the constrained
model and unconstrained model were significant (Δx2 5 55.21; p < 0.001) (Table 5). As
displayed in Figures 2 and 3, image significantly had a significantly stronger effect on
satisfaction in low familiarity group (β 5 0.58, p < 0.001); however, image did not show any
significant effect on satisfaction for high familiarity group (β 5 0.17, p > 0.05). Second, the
link between image and purchase intention was compared. The difference in x2 between the
constrained and unconstrained model was marginally significant (Δx2 5 0.133; p < 0.10). As
indicated in Figures 2 and 3, there was no significant difference between low and high
familiarity group in terms of the relationship between image and purchase intention. Third,
the difference in x2 between the constrained and unconstrained model of the path between
reputation and satisfaction was marginally significant (Δx2 5 3.27; p < 0.10). As indicated in
Figure 2, reputation has a stronger effect on satisfaction among high familiarity group
(β 5 0.66, p < 0.01) than low familiarity group (β 5 0.274, p < 0.05). Finally, the link between
reputation and purchase intention was compared. The difference in x2 between the
constrained and unconstrained model was not significant (Δx2 5 0.231; p > 0.05). There was
no significant difference between low and high familiarity group in terms of the relationship
between reputation and purchase intention. Therefore, H5 was partially supported.
Discussion
The results found that satisfactions with Korean pear and purchase intention were
determined by image and reputation for all Taiwanese respondents. When respondents
were divided into high and low familiarity groups, the relationships of image, reputation,
Satorra–
Unconstrained Constrained Bentler scaled
model model χ 2 χ 2 difference
Hypothesized path χ 2 (df 5 185) (df 5 184) (Δdf 5 1)
0.172 ns
Image Satisfaction
***
0.52
0.66***
0.39* Behavioral
Figure 2. Reputation Intention
High familiarity group
0.58***
Image Satisfaction
***
0.52
0.27*
0.35** Behavioral
Figure 3. Reputation Intention
Low familiarity group
consumers less familiar with a product, as they assess sensory quality because they trust the Korean pears
relationship between brand and quality (Banovic et al., 2012). Consumers who are less
familiar with the product perceive less perceived risk in purchasing the product when
reputation is high, indicating that reputation increases purchase intention (Rubio et al., 2014).
Familiarity increases consumer confidence in a brand and improves their product evaluation,
thus increasing their satisfaction and their behavioral intentions (Ho et al., 2011). Therefore,
the low familiarity group, which lacks the experience and knowledge of Korean pear, is likely
to depend on the reputation of the fruit.
Implication
This study provided evidence that marketing strategies promoting consumption of Korean
pear should be different, according to customers’ familiarity levels with Korean pear. Korean
fruit marketers could satisfy more customers with relatively low familiarity than to
customers with high familiarity by establishing strong image and reputation. For consumers
unfamiliar with Korean pear, marketers should consider working to improve the image and
reputation of Korean pear among these consumers. Improving the image and reputation is
important to increase sales, improve safety, reliability, taste, healthfulness and value of
Korean pear. Fruit taste (sweetness, acidity and flavor) is highly subjective and is important
to market any fruit crop commercially (Jenks and Bebeli, 2011). Improving Korean pear taste
could be achieved through biotechnological approaches like modifying genes responsible for
flavor. Safety can be improved by constructing a database of detailed information about
farmers and retailers associated with growing and selling Korean pear. Also, international
quality certification like Global G.A.P could ensure pear safety and increase the consistency
of flavor and texture. The research findings have also shown that Korean pear contain more
than 50 functional substances and had an antioxidant, anti-carcinogenic, anti-inflammatory
effect (Lee et al., 2011; Park et al., 2011; Bae and Kim, 2012), which can be used to promote
Korean pear to customers.
The relationship among food image, reputation and purchase intention indicates that
establishing a good image of a product, even among children, is important. Although food
choice and preferences will still change in adulthood, the critical window of food choice and
preference development happened in childhood; targeting the children will increase the
possibility to long-term purchase of the product (Ventura and Worobey, 2013; Gugusheff
et al., 2015; De Cosmi et al., 2017). To increase the product image and reputation, education
from childhood is effective since eating habit is developed. Education in primary schools and
effective communication campaigns are very effective to increase product reputation (Ang
et al., 2019).
The results of this study indicated reputation was more effective for customers with high
familiarity, and images were more useful for customers with low familiarity to increase
positive satisfaction. Maintaining long-term relationships with customers who have high
familiarity could be effective marketing in both cost and effort, while gaining new consumers
is likely to cost more (Noyan and Simsek, 2014; Anderson et al., 2014). Trust-building strategy
by strengthening the brand reputation as the driving factor can encourage repurchase
intention and increase loyalty among current customers (Insch and Jackson, 2014; Moser
et al., 2011).
Conclusion
This study investigated the influence of image and reputation of imported fruits on
satisfaction and purchase intentions. The moderating role of familiarity with imported
fruits on the impact of image and reputation of imported fruits on satisfaction and purchase
intentions was also assessed. The results found that the image and reputation of imported
Korean pears were identified as predictors of the satisfaction and purchase intention. Multi-
group analysis results found that the influence of image on satisfaction was different across
familiarity levels, indicating the moderating role of familiarity. Image and reputation were
identified as predictors of the satisfaction and purchase intentions of Korean pears for
consumers with low familiarity. However, image did not influence on satisfaction for
consumers with high familiarity. This contributes to the limited understanding of imported
fresh fruit markets and provides insights into familiarity for consuming imported fresh
fruits.
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