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Consumer Preferences for Indonesian Food

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Consumer Preferences for Indonesian Food Journal of Indonesian Economy and Business Volume 34, Number 3, 2019, 280 – 293 CONSUMER PREFERENCES FOR INDONESIAN FOOD Hani Ernawati1*, Dodik Prakoso Eko Hery Suwandojo2 1 Department, of Tourism Management, STIPRAM Tourism Institute, Yogyakarta, 55198, Indonesia. 2 Department of Food Management, STIPRAM Tourism Institute, Yogyakarta, 55198, Indonesia. ABSTRACT ARTICLE INFO Introduction/Main Objectives: Food industries have been growing fast Article history: in Indonesia for recent decade, so it is necessary for food companies to Received 17 December understand Indonesian consumer attitudes and examine how Indonesian 2019 consumption behavior may change in consuming food. Background Received in revised form Problems: The development of society, with the concept of 25 February 2020 modernization at this time, encourages the interest people have for Accepted 28 February 2020 consuming food from other countries, so that Indonesian food is increasingly being displaced in its own country. Novelty: The results of Keywords: this study provide a method for evaluating the combination of different consumer preferences, attributes for food combinations, which can be used as a reference for food, conjoint analysis selling food. Research Methods: This research used a conjoint analysis to explore consumers’ preferences for different cuisines, especially Indonesian cuisine. Finding/Results: Compared with previous studies, JEL Code: the origin of food is an important food attribute, whilst “western food” is - the preferred type of food. Conclusion: Western food being the most preferred type of food, followed by Indonesian food, a crispy and salty taste, fresh food is preferred, as is food at a cheap price. Price was the most important attribute. * Corresponding Author at Department of Tourism Management , STIPRAM Tourism Institute, Jalan Jend. A.Yani No. 52, Ringroad Timur, Banguntapan, Bantul, Yogyakarta, 55198. Indonesia. E-mail address: [email protected](author#1), [email protected](author#2) ISSN 2085-8272 (print), ISSN 2338-5847 (online) http://journal.ugm.ac.id/jieb Journal of Indonesian Economy and Business, Vol. 34, No. 3, 2019 281 INTRODUCTION features that are different from competing Indonesia has many traditional types of food products (Lewis & Churchil 1983). The which makes it a preferred food tourism definition of these attributes can be applied to destination. The role of food in Indonesian food attributes, because food attributes have culture is an expressive activity that reaffirms features that distinguish between one type of food and another. Ma, Chow, Cheung, & Lee people’s social relations with life, and with trust, (Ma, Chow, Cheung, & Lee, 2018) proposes that the economy, technology and its various certain special attributes are found in food, such differences. The food arts in Indonesia have as taste, health, social status, and cost. several differences (Siti Marti’ah, 2013). The development of society, with the con- Diversity of food represents the food habits cept of modernization at this time, encourages of people from different countries. Verbeke, W., the interest people have for consuming food & López, G. P. (2005). It found that European from other countries, so that Indonesian food is consumer’s trade-off the relative expensiveness increasingly being displaced in its own country. and time-consuming preparation of traditional Because of concerns about the loss of food food for the specific taste, quality, appearance, identity for Indonesian food, it is necessary to nutritional value, healthiness and safety they examine what the consumers' preferences for find in traditional food preferences. In this Indonesian cuisine are. study, five attributes: the foods ‘origin (which represents the diversity of food from different The theoretical framework of this research is countries); its taste; its freshness (which repre- rooted in the Lancastrian approach to the sents the food’s appearance and healthiness); its consumer theory. Breaking away from the price; its presentation (which represents its traditional view that utility is derived from a preparation and service), were set for the product, Lancaster proposed that a product per consumers to state their preferences at different se does not give utility to the consumer. Rather, levels. Information about how consumers make a product possesses characteristics, and these these decisions can be useful to those making characteristics give rise to utility. Furthermore, production and marketing decisions, including Lancaster generalized that products can possess providing an indication of the value of different multiple characteristics which can be shared by attributes and how to focus advertising for the multiple products, and that products in aggregate greatest effect (Lin & Kuo, 2016). can possess different characteristics from those pertaining to the products separately (Lancaster, Food has different attributes, such as its style 1966) of cooking, cooking course, i.e., fish course, nutrition, ingredients and flavors. The diversity Following Lancaster, a consumer with of food has a strong effect on our social and preferences for each of the aforementioned personal life (Rozin et al., 2003). Each cuisine characteristics will choose the bundle of has its own particular style for preparing food, attributes of the product that maximizes his/her related to the geographic location. It plays a very utility subject to budget constraints, in which important role in culture, which reflects its case a consumer has to select a product from a unique history, lifestyle, values, and beliefs, as set of options. well as people tend to identify themselves with According to Frank (2011), preference is the their food (Kamal, Jabreel, & Rashwan, n.d.) A process of ranking of all things that can be food’s attributes can be defined as product consumed, with the aim of obtaining a 282 Ernawati, et al preference for a product or service. Consumer market share, and the market’s segmentation for preference arises during the alternative evalua- it, which can provide inputs for food business tion stage of the purchasing decision process, people in their products ‘development, then wherein the consumer is faced with a variety of decide the optimal way of presenting and product choices, as well as services, with a serving Indonesia’s cuisine in order to be able to variety of different attributes. Therefore, it can compete with the cuisines from other countries. be concluded that preference is a choice taken and chosen by consumers, from a variety of LITERATURE REVIEW available choices. The demand for western-style convenience food The preference stage that is owned by is growing around the world, a likely result of consumers towards a product is the beginning of the modernization in food consumption patterns. consumer loyalty to the product. So companies Proper targeting of consumers who exhibit must learn how to create a sense of consumer’s preferences for western food will be essential for preference for their products (Kotler, 2007). companies wishing to successfully enter the In addition, we are concerned with the local market. A population base in excess of one preference for food due to its origin, taste, price, billion combined with rapid and sustained and the way it is presented and served. How economic growth has made Indonesia as an consumers ‘preferences or interests in Indone- obvious target for western companies in search sian food can be identified as well the market of new customers. share, and the market’s segmentation for it? We The entrance of Indonesia into the World attempt to classify the food preferences from Trade Organization (WTO) is another compel- different countries with the flavors of their food. ling argument for western companies to develop Thus, this study aims to: 1) Identify consumers business strategies tailored to Indonesian people ‘preferences for Indonesian food. 2) Estimate and markets. To be successful in Indonesia, it is the market share for Indonesian food. 3) Deter- necessary for western companies to understand mine the most preferred type of food. 4) Deter- Indonesian consumer attitudes and examine how mine the market’s segmentation for Indonesian Indonesian consumption behavior may change food. as Indonesia integrates into the global economy The main contributions of this paper are that, and faces increased exposure to industrialized through the results of this study, it is expected countries, cultures, and product (Radhiah, Ab, that consumers ‘preferences or interests in Zakiah, & Nazirah, 2015). Indonesian cuisine can be identified, as well the Additionally, western food and culture are market share, and the market’s segmentation for fashionable. The increased demand for western- it, which can provide inputs for food business style convenience foods has been associated people in their products ‘development, then with a higher frequency of dining out, increased decide the optimal way of presenting and patronage of grocery stores (compared to tradi- serving Indonesia’s cuisine in order to be able to tional wet markets), and the increased consump- compete with the cuisines from other countries. tion of snack foods (Jussaume Jr, R. A., 2001). The main contributions of this paper are that, Empathic and social concerns influence through the results of this study, it is expected consumers’ attitude toward, and preference that consumers’ preferences or interests in (Jussaume Jr, R. A., 2001, Roininen et al., Indonesian cuisine can be identified,
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