Paper ID: 128
Behaviour of Brand Switching of Milk Product for Young Children Aged 1-3 Years in Middle to Lower Socio-Economic Class in Urban Communities in Malang
Sunardi1, J H Mulyo2, Irham2 and Jamhari2
1 Doctoral Student of Agribusiness Management, Faculty of Agriculture, Gadjah Mada University, Indonesia
2 Department of Agricultural Socio-Economics, Faculty of Agriculture, Gadjah Mada University, Indonesia
The population in Indonesia today is mostly concentrated in urban areas and urban residents reached 56.7% (BPS, 2020). More than 80% of Indonesian people belong to the middle and lower socioeconomic class and this segment is biggest part of consumer of milk product for young children aged 1-3 years. Understanding the brand and customer behaviour is significantly important. Customer needs and insight could be used in product innovation process . This study aims to examine the behavior of brand switching of milk products for young children aged 1-3 years on middle to lower socioeconomic class consumers in urban communities in Malang. The research was conducted in Malang City, East Java Province, using guided interviews with questionnaires. The research respondents were 102 consumers of milk for young children aged 1-3 years are selected by proportional random method in 5 sub-districts in Malang City. The data were processed using Partial Least Squares (PLS) as an alternative to Structural Equation Modeling SEM). The results showed that the prior experience in purchases variable had highly significantly negative effect and the consumer dissatisfaction had a significantly positive effect on the process of brand switching for consumers of GUM products in urban communities in Malang City.