Consumers’ perceptions towards Thai rice

Abstract

Purpose The purpose of this paper is to investigate consumer preferences towards innovative rice products, and cross-cultural determinants of customers’ perceived value and loyalty. Design/methodology/approach A self-administered survey was designed to obtain participants’ perceptions about Thai rice, and preferences towards innovative Thai rice products. A total of 937 surveys were distributed and 908 valid surveys were returned, yielding a 96.7 per cent overall response rate. Confirmatory factor analysis was used to assure the reliability and validity of the measures used in the survey instrument. Structural equation modelling was employed to assess the five hypothesised relationships between the four elements of the marketing mix, customer perceived value, and post-purchase behaviour, and to compare the path coefficients across the two cultural groups. Findings The findings reported herein show that eastern and western customers’ perceptions of marketing mix variables positively impact their perceptions of value, in turn, enhancing their loyalty to Thai rice. A successful marketing strategy should meet changing customer needs through adopting new products, services and unique marketing mix bundles. Such strategies should be tailored to the differing needs across cultures, and can address issues arising from changing competitive and environmental landscapes. Research limitations/implications The first limitation concerns the scope of the study. Specifically, the authors only conducted surveys during a two-month time period in 2018; the sampling sites were limited to several shopping malls in Bangkok; and the authors surveyed a high proportion of young, single, educated participants. The second limitation pertains to the selection and adaptation of constructs and their observed variables (such as the 4P indicators). Most of the observed variables were selected based on a literature review and the opinions of the scholars who participated in this study. Practical implications These results should be beneficial to members of the international rice industry, Thai rice exporters, the Thai government and to academics. Long-term success will be supported by focused attention on target segments and launch of innovative rice products that match differing preferences across nationalities. Originality/value Understanding consumers’ perspectives and preferences are critical to appropriate positioning and marketing of value-added Thai rice products. This study represents one of the first attempts to integrate marketing mix decisions, customers’ perceived value and loyalty within a Thai rice purchase behaviour context across eastern and western customers.