The relationship between trust in procedures, customer engagement, and repurchase tintention for organic food / Nguyen Minh Tuan

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International Conference on Business and Finance

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ICBF 2022

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<b>THE RELATIONSHIP BETWEEN TRUST IN PRODUCERS, CUSTOMER ENGAGEMENT, AND REPURCHASE INTENTION FOR ORGANIC FOOD </b>

<b>Nam Hai Le¹, Tuan Loc Le², Minh Tuan Nguyen³</b>

Faculty of Business Administration, Ho Chi Minh University of Banking, Ho Chi Minh, Viet Nam

Corresponding Author: (Phone: + 84 79 373 4565; Email: )

<b>Abstract </b>

Organic food consumption is increasing significantly because of the benefit of this food, such as healthy food and eco-friendly food. This study examines the relationship between trust in producers (TRP), customer engagement (CE), and repurchase intention (RPI) for organic food. The mixed-method is applied to solve the research objectives. Partial least squares structural equation modeling (PLS-SEM), along with the two-stage approach, is applied to analyze and test suggested research hypotheses. The analysis data is collected from 388 customers in Viet Nam. These respondents all have experience with organic food consumption and social network. The result indicates that trust in producers has significantly affected customer engagement and repurchase intention for organic food. Moreover, customer engagement, a higher-order construct with four dimensions (augmenting behavior, co-developing behavior, influencing behavior, and mobilizing behavior), also has impacted repurchase intention. The finding of this study has also suggested critical implications for organic food producers and marketers to increase the repurchase intention of organic food in Viet Nam.

<b>Keywords: </b><i>customer engagement, organic food, repurchase intention, trust in producers. </i>

<b>1. INTRODUCTION </b>

More and more people have tended to choose healthier food because wrongful eating habits risk creating the necessary background for other secondary diseases (Bracale & Vaccaro, 2020). Consistent with this view, De Canio & Martinelli (2021) also indicated that consumers are increasingly concentrating on their food choices because of sustainability. So, the consumption of organic food has increased significantly around the globe, including in emerging economies. As regards organic food consumption behavior, especially purchase intention or willingness to buy organic food, prior scholars have studied in both developed and developing countries, such as in Turkey (Demirtas, 2019), in USA (Shin et al., 2019), in France (Ladwein & Sánchez Romero, 2021), in Romani (Fleseriu et al., 2020), in Turkey, Pakistan, Iran (Asif et al., 2018), in India (Nagaraj, 2021; Tandon et al., 2020a), in Tanzania and Kenya (Wang et al., 2019), and in Viet Nam (Le-Anh & Nguyen-To, 2020; Pham et al., 2018). However, little attention has been paid to repurchase intention for organic food (Le Nam Hai & Le Tuan Loc, 2021; Singh & Alok, 2021). At the same time, some studies also suggest that it is necessary to clarify the factors affecting the tendency to continue to consume organic food in different cultural and social contexts (De Canio & Martinelli, 2021;Tandon et al., 2020b; Tandon et al., 2020a; Janssen, 2018).

Moreover, Farias et al. (2019) have recommended that it is necessary to examine the relationship between customer engagement and repurchase intention. Regarding customer engagement, several studies have been investigated such as Kumar et al. (2019), Agyei et al. (2020), and Kosiba et al. (2020). These studies focus mainly on the context of the services. In contrast, studies in the context of tangible goods are hard to find (Behnam et al., 2021). According to Ng et al. (2020), it is crucial to expand the study of customer engagement for social benefit when it can play a role in solving alarming global problems such as climate change and health-related issues. Meanwhile, organic food is not only healthy food (Bauer et al., 2013; Farias et al., 2019; Lea & Worsley, 2005; Moser, 2016; Thøgersen et al., 2015) but also friendly environment food (Rana & Paul, 2017; Williams & Hammitt, 2001; Yadav & Pathak, 2016).

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For repeat customer, trust is one of the important drivers of customer engagement (Jaakkola & Alexander, 2014; Ng et al., 2020; van Doorn et al., 2010). And customer engagement tends to vary across cultures (Gupta et al., 2018; Hollebeek, 2018). Moreover, prior studies have concentrated on food characteristics (Konuk, 2018; Tung et al., 2012), and production process (Da Cunha et al., 2019) when they investigate the critical role of trust in this food purchase behavior. There is little study on trust in producers (Carfora et al., 2019; Hamzaoui-Essoussi et al., 2013; Lee et al., 2019).

For the reasons mentioned above, this study examines the relationship between trust in producers, customer engagement, and repurchase intention for organic food. The specific objectives of this study are to:

Investigate the relationship between trust in producers and repurchase intention for organic food. Examine the relationship between trust in producers and customer engagement in organic food consumption.

Investigate the relationship between customer engagement and repurchase intention for organic food.

<b>2. LITERATURE REVIEW 2.1 Trust in Producers </b>

In the Commitment-Trust theory, trust is defined as “confidence in the exchange partner's reliability and integrity” (Morgan & Hunt, 1994). Again, this definition resembles that of Moorman et al. (1992). In the context of food consumption, consumer trust in food is formed via personal relationships or various institutional arrangements established by the government and private companies (Zhang et al., 2016). So, trust in producers is considered based on the relationship between the individual who buys organic food and the producer of organic food. In particular, trust in producers is the trust of customers who purchase organic food in the reliability and integrity of the food producers.

Trust plays a crucial role in purchasing food products (Hobbs & Goddard, 2015), especially organic food (Khare & Pandey, 2017). The diversity of sales channels is promoted more and more. Thus, organic food producers also can use direct distribution channels. At the same time, Trust affects not only the choice of organic food but also the choice of the distribution channel (Hamzaoui-Essoussi et al., 2013). Moreover, several studies have shown the role of trust in producers on purchase intention, such as Carfora et al. (2019), Konuk (2020), and Ladwein & Sánchez Romero (2021). The more customers trust producers, the more they choose organic food related to health and sustainability. So, the following hypothesis is proposed:

<b>H1: Trust in producers positively and significantly influences repurchase intention. </b>

In addition, trust is also one of the important factors affecting customer engagement (Jaakkola & Alexander, 2014; Ng et al., 2020; van Doorn et al., 2010). In particular, as regards customer-related antecedents of customer engagement, trust is one of three primary attitudinal antecedents that reflect the customer’s feeling toward the focal object, such as a brand, product, individual, or organization. For existing/repeat customers who have experienced, trust is the driver of customer engagement. Accordingly, they have been going back again, building a relationship or establishing a connection with the focal object (Bowden, 2009; Ng et al., 2020). Broadly, in the context of organic food consumption, when existing/repeat customers trust the organic food producer through its commitments and published information, they will have positive engagement behavior. Prior experimental studies also have indicated that trust has a direct effect on customer engagement (Agyei et al., 2020; Kosiba et al., 2020; Thanh & Binh, 2020). Thus, hypothesis H2 is proposed in this study:

H2: Trust in producers positively and significantly influences customer engagement.

<b>2.2 Customer engagement </b>

Customer engagement (CE) has instigated into the marketing literature in the early 2000s. It has received abundant consideration both from practitioners as well as academic communities, such as Bowden (2009), Brodie et al. (2011), Kumar et al. (2010), and van Doorn et al. (2010). Customer engagement is defined as “a psychological state that occurs by virtue of interactive, co-creative customer experiences with a focal agent/object in focal service relationships” (Brodie et al., 2011). While Van

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Doorn et al. (2010) posit customer engagement as behavioral manifestations that go beyond transactions. This view is also concurred by several scholars, such as Jaakkola & Alexander (2014), Verhoef et al. (2010), and Verleye et al. (2014). Because of easily observed and measured, this study focuses on the behavioral manifestations of customer engagement. It means that “customers make voluntary resource contributions that have a brand or firm focus but go beyond what is fundamental to transactions, occur in interactions between the focal object and/or other actors, and result from motivational drivers” (Alexander & Jaakkola, 2015; Jaakkola & Alexander, 2014). Accordingly, customer engagement is a higher-order construct with four dimensions, including augmenting behavior, co-developing behavior, influencing behavior, and mobilizing behavior (Jaakkola & Alexander, 2014).

Customers will develop close connections with the brand-associated communities from their interactive experiences with the firm, brand, or other customers (Prentice et al., 2019). As a result, it prompts customers to purchase brand-related products or services (Prentice et al., 2018). Several previous studies, including theoretical and experimental studies such as Ng et al. (2020), Clement Addo et al.

<b>(2021), Kaveh et al. (2021), Prentice et al. (2019), Chen & Xu (2020) have confirmed that customer </b>

engagement leads to purchase intention. Moreover, the indirect effect of customer engagement on repurchase intention via the impact of customer satisfaction is demonstrated (Sharma & Singh, 2021). Hence, the following hypothesis is suggested:

H3: Customer engagement positively and significantly influences repurchase intention for organic food.

<b> The conceptual model is proposed as follows (Fig1) </b>

<b>Repurchase IntentionTrust in Producers</b>

<b>Customer engagement</b>

Augmenting behaviorCo-developing behavior

Influencing behaviorMobilizing behavior

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