An Extended Model of Consumer Behavior for Vegetables in the Market in Indonesia

Abstract

Purpose: In this study, principal component analysis (PCA) was used to identify the key factors influencing consumer behavior in the context of vegetable consumption in traditional and modern markets. Theoretical reference: This common pattern of small-scale and subsistence-based vegetable production in agriculture, typically meeting local needs, results from limited competitiveness in the global vegetable value chain, largely due to relatively small national-scale vegetable production. Method: The use of multilevel structural equation modeling (MSEM) was employed to analyze consumer behavior at different levels within the sales model. This study involved the use of an online questionnaire that sought to explore vegetable consumer behavior in the year 2023. Results and Conclusion: The study emphasizes the dominant role of the economic factor in shaping consumer behavior, with economic conditions and personal income being pivotal influencers of purchase decisions. Cultural factors also play a positive role in decisions, highlighting cultural considerations. Social dynamics, psychological factors, and personal habits contribute significantly, while effective marketing strategies and customer satisfaction are crucial for influencing choices and fostering loyalty in the vegetable market. Implications of research: Furthermore, the study indicates that effective marketing strategies have a positive impact on purchase decisions and consumer loyalty. Well-designed marketing campaigns, promotions, and branding efforts can motivate consumers to choose specific vegetables and foster loyalty, highlighting the importance of strategic marketing in the vegetable market of Pekanbaru City. Originality/value: Additionally, the study emphasizes the intrinsic connection between consumer satisfaction and loyalty, emphasizing the significance of addressing consumer needs and expectations to cultivate and sustain loyalty in the vegetable market. Businesses that prioritize customer satisfaction are likely to enjoy repeat business and positive word-of-mouth referrals, enhancing their position in the market.