Factors Influencing the Frequency of Consumers’ Purchases of Locally-Produced Rice in Indonesia: A Poisson Regression Analysis

Abstract

This study assessed the factors influencing the frequency of purchases of locally-produced rice using data collected from a sample of 400 consumers in Jakarta Province in Indonesia. The empirical results of a Poisson regression model revealed that socio-economic characteristics of the consumers (i.e., gender, age, occupation, education, and income), characteristics of the product (i.e., label and color), and the product’s price and promotion significantly influenced consumers’ frequency of purchasing locally-produced rice. The implication is that increasing the quality of locally-produced rice, applying an appropriate marketing strategy such as offering a relatively lower-priced product compared to the price of imported rice, and product promotion are necessary for increasing the frequency of consumers’ purchases of locally-produced rice.