Adopting the Food Traceability System in Vietnamese Agriculture and its Effects on Customer Behaviors

Kuo-Chen Li, Chi-Chung Nguyen

Abstract: Vietnam has various advantages in agricultural production. Many Vietnamese agricultural products are not only sold in the domestic market, but are also exported to other countries. Despite the quality taste, most Vietnamese products are suffering from low prices. Moreover, Vietnam also has difficulty in looking for external markets, because of the setbacks from a series of food-related mishaps, and the struggle to meet stringent requirements of potential markets. To deal with this, the Food Traceability System (FTS) has been introduced in Vietnam. However, the effect is not noticeable as expected. The main purpose of this study is to determine the impacts of reducing uncertainty on the attitude and perception of customers toward the FTS, and to provide implications about the adoption in the Vietnamese agriculture. This study fulfills these objectives by applying the modified model of Pavlou et al. (2007) on data obtained through a survey questionnaire of Vietnamese consumers. The findings of the study showed that the reduced uncertainty leads to an increased level of purchase intention and customer loyalty. Furthermore, the study also found that Vietnamese customers are willing to buy more traceable products and are eager to repeat their purchase, but with the condition of reasonable prices. Finally, the present study suggested that a web-based system should be created to facilitate principal-agent relationship and provide consumers with credible detailed information.

Keywords: Food Traceability System, Vietnamese agro-products, purchase intention, price premium, loyalty.

Title: Adopting the Food Traceability System in Vietnamese Agriculture and its Effects on Customer Behaviors

Author: Kuo-Chen Li, Chi-Chung Nguyen

International Journal of Management and Commerce Innovations

ISSN 2348-7585 (Online)

Research Publish Journals

Vol. 3, Issue 2, October 2015 – March 2016

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Adopting the Food Traceability System in Vietnamese Agriculture and its Effects on Customer Behaviors by Kuo-Chen Li, Chi-Chung Nguyen