An Analysis of Consumer Purchasing Decision Determinants on Local Liquors

YOU,, J. , & CHOI,, J. (2019). An Analysis of Consumer Purchasing Decision Determinants on Local Liquors. The Journal of Industrial Distribution & Business, 10(6), 39-50, https://doi.org/https://doi.org/10.13106/ijidb.2019.vol10.no6.39

copy

Abstract

Purpose - Since the local liquor industry uses the agricultural products produced in the region as the main raw material, cultivation of the industry can be a way to expand the demand for domestic agricultural products and can contribute to the income increase of the farmers. In addition, the local liquor industry can be developed into a region-specific industry differentiated from other regions by linking with the region's tourism resources. Therefore, in order to achieve various derivative effects through promotion of the local liquor industry, it is necessary to precisely understand the factors related to the purchase and consumption of local liquor which then will lead to an increase in consumption. This study analyzes the current status and problems of local liquor industries and examines the determinants of consumers' purchasing decisions of regional specialties through questionnaires. We will then propose a strategy to promote consumption of locally produced alcoholic beverages. Research design, data, and methodology - An online Domestic Consumer Survey was conducted to identify the actual purchases and uses of local liquors for 500 consumers nationwide. Based on the questionnaire results, the analysis uses an ordered probit model. Results - As a result of analyzing the effect of consumer characteristics on the purchase of local liquors, it was found that the average cost of drinking, income, local specialty, brewery experience, and health concerns have a significant effect on gender, drinking frequency. All the variables except the participation in the training of the special provincial manufacturing method were found to be statistically significant. The statistical significance was at a 1% significance level for the remaining factors excluding the bottle design. This shows that the higher taste, quality, price, and harmony with food, the higher the probability of purchasing local liquors. Conclusions - In the analysis of factors influencing the purchase intention of local liquors, it was found that factors such as taste, quality, price, and harmony with food had a significant effect. Given the diversity of purchasing factors, the importance of diversification strategies is emphasized again. In particular, it will be important to secure wide publicity for local liquors through various PR strategies.

keywords: Local Drinks, Purchasing Decision Factors, Ordered Probit, Consumer Preferences, Marketing Strategies

Reference

Carew, R., & Florkowski, W. J. (2010). The importance of geographic wine appellations: hedonic pricing of burgundy wines in the British Columbia wine market. Canadian Journal of Agricultural Economics, 58(1), 93-108.

Choi, J. W., Gartner, W. C., & Lee, W. F. (2016). Vineyards in Northern U.S. states: Farm Size and Productivity Relationship. Journal of Distribution Science, 14(7), 53-61.

Choi, N. H., Xu, H., & Teng, Z. (2018). Roles of Social Identity Verification in the Effects of Symbolic and Evaluation Relevance on Chinese Consumers’ Brand Attitude. The East Asian Journal of Business Management, 8(4), 17-27.

Chung, J. H., & Hwang, S. H. (2016). A study on the effects of selection attributes for agricultural products on using local food store. Journal of Distribution Science, 14(4), 117-125.

Greene, W. H. (1997). Econometric Analysis. Upper Saddle River, NJ: Prentice Hall.

He, Y. (2018). A study on the determinants of free trade agreement in South Korea: evidence from Asian countries. Journal of Distribution Science, 16(11), 37-45.

Lee, W. F., Gartner, W. C., Song, H., Marlowe, B., Choi, J. W., & Jamiyansuren, B. (2018). Effect of Extrinsic Cues on Willingness to Pay of Wine: Evidence from Hong Kong Blind Tasting Experiment. British Food Journal, 120(11), 2582-2598.

Li, J., Gómez, M. I., Brent Ross, R., & Chaddad, F. R. (2019). Does passion for wine matter? The effects of owner motivation on pricing and quality decisions in emerging US wine regions. Agribusiness. 1-19.

Ministry of food and drug safety. (2018). Korean Food Standards Codex. Retrived Nov 18, 2018 from http://www.foodsafetykorea.go.kr/foodcode/01_01.jsp

10.

National law information center in ministry of government legislation. (2018). Enforcement decree of liquor tax act. Retrived Nov 28, 2018 from http://www.law.go.kr/lsInfoP.do?lsiSeq=193387&efYd=20170418#0000

11.

National Tax Service. Each year. National tax statistics yearbook. Retrived Nov 10, 2018 from https://www.nts.go.kr/info/info_05.asp

12.

Phan, N. T. H., Nguyen, T. Q., Truong, D. Q., & Huynh, N. (2019). The Effect of Brand Equity Components on Automobile Purchase Intention of Consumers in Ho Chi Minh City, Vietnam. The Journal of Asian Finance, Economics and Business, 6(2), 135-145.

13.

Wooldridge, J. M. (2010). Econometric analysis of cross section and panel data. Cambridge, MA: The MIT Press.

바로가기메뉴

Article Contents

Vol.10 No.6

An Analysis of Consumer Purchasing Decision Determinants on Local Liquors

Abstract

Reference

The Journal of Industrial Distribution & Business