Canadian study indicated that there is less influence

Canadian Social Science Vol. 7, No. 1, 2011, pp. 110-118 ISSN 1712-8056 [Print] ISSN 1923-6697[Online] www. cscanada. net www. cscanada. org Innovative Food and Its Effects toward Consumers’ Purchase Intention of Fast Food Product LES ALIMENTS INNOVANTS ET SES EFFETS VERS L’INTENTION D’ ACHAT DES PRODUIT DE FAST FOOD DES CONSOMMATEURS Mohd Rizaimy Shaharudin1 Abdul Sabur Bin Ismail2 Suhardi Wan Mansor3 Shamsul Jamel Elias4 Muna Abdul Jalil5 Maznah Wan Omar6 Abstract: This study is about the discoveries on innovative food and its effects toward consumers’ purchase intention of fast food products in Malaysia.

The research aims to investigate whether consumers really consider the innovation factor when making decision to purchase the fast food products. The findings of the study indicated that there is less influence of innovative food on the consumers’ purchase intention which emphasizes more on the ‘output’ (which is the end products) rather than ‘input’ (which is raw materials used in producing the foods). Innovative food is being too narrowly defined by the consumers’ as only a technology-related part of innovations.

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Whereas innovative food could be perceived in a broader scope such as product innovation, process innovation, organizational innovation and market innovation. The result has shown some differences with the previous literature where food innovativeness were found to have positive relationship toward the consumers’ satisfaction. Hence, this study is expected to contribute to the existing knowledge on the dimension of consumer Faculty of Business Management, Universiti Teknologi MARA, P.

O Box 187, 08400 Merbok, Kedah, Malaysia Email: [email protected] uitm. edu. my 2 10, Jalan Limau Manis, Taman Bukit Tengah, 14000 Bukit Mertajam, Pulau Pinang, Malaysia Email: [email protected] com 3 Language Academy, Universiti Teknologi MARA, P. O Box 187, 08400 Merbok, Kedah, Malaysia Email: [email protected] uitm. edu. my 4 Faculty of Computer Science, Universiti Teknologi MARA, P. O Box 187, 08400 Merbok, Kedah, Malaysia Email: [email protected] uitm. edu. my 5 Faculty of Business Management, Universiti Teknologi MARA, P.

O Box 187, 08400 Merbok, Kedah, Malaysia E-mail: [email protected] uitm. edu. my 6 Faculty of Business Management, Universiti Teknologi MARA, P. O Box 187, 08400 Merbok, Kedah, Malaysia E-mail: [email protected] uitm. edu. my *Received 15 November 2010; accepted 20 January 2011 110 1 Mohd Rizaimy Shaharudin; Abdul Sabur Bin Ismail; Suhardi Wan Mansor; Shamsul Jamel Elias; Muna Abdul Jalil; Maznah Wan Omar/Canadian Social Science Vol. 7 No. 1, 2011 purchase intention to the industry players as well as academicians.

Future research should focus on the similar study with the extended scope to other fast food restaurants in Malaysia. By doing this, hopefully we can get a clearer picture on the existing and new variables which can be further examined. Key words: Innovative Food; Freshness; Presentation; Taste; Fast Food Restaurant Resume: Cette etude porte sur les decouvertes concernant les denrees alimentaires innovantes et de ses effets a l’intention d’achats des consommateurs sur les produits de restauration rapide en Malaisie.

La recherche vise a determiner si les consommateurs ont vraiment considerer le facteur de l’innovation lors de la decision d’achat des produits de restauration rapide. Les conclusions de l’etude indiquent qu’il y a moins d’influence de la nourriture innovantes sur l’’intention d’ achat des consommateurs qui met l’accent plus sur la «production» (ce qui est produit fini) plutot que «input» (ce qui est de matiere premiere utilisee dans la production des aliments ). Les alimentaires innovants sont trop etroitement definie par les consommateurs car seule une partie de technologie lies a des innovations.

Considerant que les aliments innovants pourrait etre percue dans un plus large champ d’application tels que l’innovation produit, innovation de processus, l’innovation organisationnelle et innovation sur le marche. Le resultat a montre quelques differences avec la litterature anterieure, ou l’innovation alimentaire a ete trouvee a avoir des relations positives a l’egard de la satisfaction des consommateurs. Ainsi, cette etude devrait contribuer aux connaissances existantes sur la dimension de l’intention d’achat des consommateurs pour les joueurs de l’industrie ainsi que des universitaires.

Les recherches futures devraient se concentrer sur l’etude similaire avec le champ d’application etendu a d’autres restauration rapide en Malaisie. En faisant cela, j’espere que nous pourrons obtenir une image plus claire sur les nouveaux et les variables existantes qui peuvent etre examinees plus avant. Mots cles: Aliments innovants; Fraicheur; Presentation; Gout; Restauration rapide 1. INTRODUCTION Nowadays, in modern living, food choice is crucial for health conscious consumers who always place the importance on healthy living lifestyle and nutritional value products.

Consumers are seeking quality, value and desirable environment away from the daily life pressures (Soriano, 2002). With the growing affluent and educated society, consumers today are demanding safe and better food quality to consume. Factors such as safety, freshness, storage, preparation, consumption, price, packaging, and place of purchase are the factors that may create the consumers’ purchase intentions towards their food purchasing behavior. Quality and safety are two important elements in consumer food perceptions and decision making associated with food choice (Grunert, 2005, Rohr et al. 2005). Price is not the prime factor and those sellers who are able to serve good quality food will always win the customer. Nevertheless, consumers always are seeking a better value for their money (Klara, 2001). Food quality and fresh ingredients are the most important reasons why customers return to the restaurant (Brumback, 1998). In contrast, failure to deliver quality food can only threaten marketers’ long term profitable relationship with the customer. The future of the food product will be short-lived and the consumer acceptance will fall drastically.

As the consumer perception is getting lower, it would seem reasonable to suppose that that the overall chances to induce the consumer intention to purchase the food product will definitely be an uphill task to the marketer. According to Creyer and Ross (1997), purchase intentions are often measured as an alternative for real purchase behavior. Mittall et al. (2001) further described service managers are deeply aware of the need to offer a service mix that is reliable with the attributes most valued by those most likely to purchase.

It is important for the food supplier to search for the factors that relate the consumers’ 111 Mohd Rizaimy Shaharudin; Abdul Sabur Bin Ismail; Suhardi Wan Mansor; Shamsul Jamel Elias; Muna Abdul Jalil; Maznah Wan Omar/Canadian Social Science Vol. 7 No. 1, 2011 perception towards quality product, thus it will give an impact on what the consumer is paying for and expenditure behavior in future (Grunert, 1997). In order to attract and create the purchaser intention, it is important for the managerial division in food industry to understand and identify what are the factors that can lead to the consumer purchase intention.

As we can see today, most of the food manufacturers have started applying some innovations and modern technology equipment into their productions. According to Avermaete et al. (2003), the increased competition has pushed food companies to become more efficient in processing, to re-organize management, develop new products, and explore new markets in order to meet the needs and wants of consumers competitively. Among the benefits of technological innovation are low costs, convenience, flexibility and safety (Alexander, 1999).

Many researchers have developed various classifications of innovation with a very broad concept (Cumming, 1998, Grunert et al. , 1997 and Johannessen et al. , 2001). Lundvall (1992) has defined innovation as an ongoing process of leaving, searching, and exploring which results in new products; new techniques; new forms of organizations; as well as new markets. Kotler (1991) and Grunert et al. (1997) described product innovation as any goods, service, or idea that is perceived by someone as new. Therefore, a product maybe considered an innovation to one person or organization but not to one another (Johannessen et al. 2001). As we have noticed over the last decades, a few new market segments have been introduced by the food industry, ranging from organic and nutritional foods to ready-made meals. These segments did not exist on its own but resulting from the food development and innovation itself. Nevertheless, according to Avermaete et al. (2003), most researchers tend to focus only on technology related innovations. Lundvall (1992) described innovation into four main factors such as product innovation, process innovation, organizational innovation and market innovation.

In fast food sector, innovation promotes healthier choices, the decrease in preparation time as a way of labour cost reduction and revenue management (Kimes et al. , 1999). The founder of the Kentucky Fried Chicken Corporation for example, Colonel Sanders, was successful in solving the process innovation (efficiency) and product innovation (quality) (Rodgers, 2008). Furthermore, other fast food restaurants are incorporating process innovation concept as what is being practiced by McDonald’s with its make-to-stock and Burger King with its work-in-process inventory (Davis et al. , 2002).

Furthermore, according to Pysarchik et al. , (1999), processed food can be perceived as an innovation. One of the ways to increase the service sector productivity is by the means of industrializing the service as what McDonald’s did in its assembly-line approach in fast-food retailing. This innovation could be implemented by adding equipment, standardizing production and harnessing the power of technology to respond to consumer needs and desires (Kotler and Armstrong, 2010). As suggested by Turnbull and Meenaghan (1980), consumer characteristics such as demographics and opinion leadership are related with innovativeness.

Boyd and Mason, (1999) has suggested that communication behavior might be the characteristic that also relates with innovativeness. This clearly means that through communication a lot of changes can be made because people can share their experience and knowledge on how to create something new to the consumer in the market. Thus, to be successful in fast food industry, the player should adapt with the innovation not only to the process but also to the product, organizational and market innovation. By doing so, the players would be able to survive longer in the market by building strong profitable relationship with the customer.

However, there are some question marks on the part of the consumers themselves. Do consumers actually consider innovation factor when making decision to purchase any particular food product? Therefore, it is important for the food producer to understand the whole scenario and its effect to the food demand in order to reach the desire position in the marketplace. Thus, the purpose of this study is to identify the relationship between independent variable (innovative food) and dependent variables (customer purchase intention).

The expected result is consistent with Theory Reasoned Action (TRA) which suggests that a person’s behavior is determined by his/her intention to perform the behavior (Ajzen and Fishbein , 1980). But what constitutes to predict the influence of behavior has become the main interest of the study. From the review of literature, Figure 1 depicted the proposed theoretical framework of the study: 112 Mohd Rizaimy Shaharudin; Abdul Sabur Bin Ismail; Suhardi Wan Mansor; Shamsul Jamel Elias; Muna Abdul Jalil; Maznah Wan Omar/Canadian Social Science Vol. 7 No. 1, 2011 Freshness Presentation Purchase Intention Taste

Innovative Food Figure 1: Proposed Theoretical Framework 2. RESEARCH METHODOLOGY 2. 1 Hypothesis Development Given the preceding discussion, the following hypotheses are proposed : H1: There is a significant influence of freshness towards purchase intention of fast food product H2: There is a significant influence of presentation towards purchase intention of fast food product H3: There is a significant influence of taste towards purchase intention of fast food product H4: There is a significant influence of innovative foods towards purchase intention of fast food product . 2 Research Design This research is a quantitative research where sources of information are gathered from questionnaires. Instrument utilized was through the self-administered questionnaire containing closed-ended and scales to matrix questions. This study is a descriptive study which is interested in describing the characteristics of a population or phenomenon. This study also used hypotheses testing to determine the influence of innovative food towards customer purchase intention of fast food products.

The type of sampling is non-probability sampling. Data collected were based on convenience sampling since the respondents were selected mainly from the Subway Restaurants customers in the state of Penang, Malaysia. Three branches of Subway Restaurant have been chosen as the avenue for data collection; namely E-Gate in Gelugor, Queensbay Mall in Bayan Lepas and Autocity in Juru. The population identified to be estimated as 400 customers who patronize the three branches per day. Data collections were made in the months of March and April 2010.

Out of the total population, 120 respondents responded to the research survey. The sample size fulfils the rule of thumb as proposed by Roscoe (1975), for which sample sizes larger than 30 and less than 500 are appropriate for most research. Pre-testing of the questionnaire was made during the pilot study. The scale was piloted amongst a sample of ten (10) university students. 2. 3 Data Analysis Method For the purpose of this study, the researcher used the Statistical Software Package for Social Sciences (SPSS) Version 17 to compute all the data gathered from the questionnaires.

The techniques of analysis used in this study were descriptive (mean, standard deviation) and inferential analysis (multivariate regression) to sum up the data collected. The questionnaires used are adopted from the questionnaires developed from past researches. In order to describe the sample characteristics in the data analysis report, 113 Mohd Rizaimy Shaharudin; Abdul Sabur Bin Ismail; Suhardi Wan Mansor; Shamsul Jamel Elias; Muna Abdul Jalil; Maznah Wan Omar/Canadian Social Science Vol. 7 No. 1, 2011 demographic data such as age, gender, ethnicity, religion, place of living and education level are included in the questionnaire.

In the subsequent sections, all the study variable scales are measured using Likert scale rated varying from 1 to 5 (highly disagree to highly agree). Purchase intention was constructed in ten measurement items and innovative food in five measurement items. Besides that, another four more variables were included (for inferential analysis) in the study such as freshness in five measurement items, presentation in five measurement items and taste in four measurement items. Pre-Testing of the questionnaire was made during the pilot study. 3. RESULTS AND DISCUSSION

This section presents the findings of this study. The data are interpreted using the mean, factor analysis and regression methods of SPSS. 3. 1 Pilot Study There was no improvement required to the questionnaires as the respondents’ feedbacks were satisfactory and appropriate. 3. 2 Demographic Profile The result of the demographic profile shows that majority of the respondents are male (69%), age from 21 until 30 years old (61%), single status (74%), Chinese race (50%), working in private sector (40%) and income ranging from RM2,000 to RM3,000 (51%).

Furthermore, it was also discovered that most of the respondents visited the restaurants more than 10 times (43%) during breakfast (23%) and lunch (39%). 3. 3 Factor Analysis This study has utilized two types of factor analysis namely exploratory and confirmatory. Exploratory factor analysis attempts to determine the number of factors, while confirmatory factor analysis attempts to test how well the measured variables represent the number of constructs. From the result of exploratory factor analysis, all five factors can be accepted for the rotation component matrix. In confirmatory factor, items with the result of less than 0. were omitted and disregarded from data analysis. This reduction is possible because the attributes are related and the rating given to any one attribute is partially the result of the influence of other attributes. Based on KMO measure of sampling adequacy test in table 1, it was found that the factor analysis data was appropriate with the value of 0. 783, which falls between the ranges of being great and appropriate of factor analysis data. KMO should be 0. 60 or higher in order to proceed with factor analysis. Bartlett’s Test was utilized with the result which indicates a highly significant result with p=0. 000 (p


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