Purchasing Intention to Domestically Produced Beef among Consumers in Republic of Korea: An Application of the Theory of Planned Behavior

Abstract

The beef market of Republic of Korea is very unique in some ways. Compared with other meat price, such as poultry or pork, beef price is three times or more expensive. Moreover, domestically produced beef, hanwoo is four times or more expensive than imported beef. Since December 2003, when Bovine Spongiform Encephalopathy (BSE) was found from imported beef from America, Korea immediately banned beef import. However, there have been several trade agreements, and the beef market was opened to beef exporters again. Even though negotiation of Free Trade Agreement (FTA) on beef market, price gap between imported beef and domestic beef still exists. The study will examine the effect of perceived value, peer influence and income on purchase intention, and how price sensitivity mediates the effects of these three variables on intention to purchase domestically produced beef (hanwoo). A survey of 422 Korean consumers was mainly conducted at metropolitan cities, Seoul and Daejeon. The data of the survey was analyzed by using Pearson correlation, confirmatory factor analysis (CFA), structural equation model (SEM), and regression analysis. Results indicate that perceived value and peer influence have significant positive effects on purchase intention on hanwoo. Income itself does not have great impact on purchasing intention, but when price sensitivity mediates between income and purchase intention as a moderator, purchase intention is partially influenced. Having these findings, beef merchants should realize the importance of both improvement perceived value of beef such as branding or emphasizing country-of-origin products, and creating events for sharing consumers‟ beef experience with their peers.