In competitive markets, agribusiness firms have embarked on improving their service quality for building and maintaining a profitable relationship with their customers. However, such impact of service quality on business commitment has not been empirically investigated. To fill this gap, this study explores the relationship between service quality and commitment, using a case of supplier selection of fresh produce by hotel, restaurant, and catering (HORECA) sector in Malaysia. Using SERVQUAL as the main component of the conceptual framework, the relevant information was collected from 195 random HORECA operators and analyzed using partial least squares. The results indicate that service quality explains little of HORECA’s decision to stay with their current suppliers. While most service quality factors were insignificant, “responsiveness” in term of providing delivery service had a statistically significant positive impact on HORECA’s contractual arrangement with their current suppliers. These findings imply that quality service is being seen as a supplement; economic factors (e.g., prices and their stability, credit term) are likely to be the key drivers affecting buyer-seller relationships. If suppliers want to stay on course, they have to improve their service quality and focus more on delivery service. In addition, more research is needed in this relatively new area.
As Malaysian economies grow, Malaysian per capita income is likely to increase. From economics point of view, it is expected that better-off consumers will move to better quality of food attributes such as freshness, food safety, quality and healthfulness in their food intake. This study aimed to investigate the demand for eggs attributes by Malaysian consumers. The study considers the conjoint analysis technique as a method for acquiring insights into preferences for eggs product. The technique was applied to establish the trade-offs that Malaysian consumers make between size, colour, size of packaging, functional attribute and price in the purchasing of eggs for 202 respondents. Least squares regression was utilized to estimate the relative importance of attributes for eggs. The results revealed that the ideal characteristic of egg was one with large size (grade A), omega eggs, brown, and ten per packs. We also found that consumers were also willing to pay more for their preferred attributes. The results found in the study provide valuable inputs to producers or marketers to improve their marketing efforts as well as market positioning, in line with the demanded eggs attributes.
The growth of the Malaysian’s per capita income has generally empowered consumers to have more choices for food, more purchasing power, health consciousness and demand for more nutritional values of their food intake. Motivated by the changes in Malaysian consumer’s food choice, a conjoint analysis was performed to investigate Malaysian consumers’ demand for rice attributes and how much consumers are willing to pay for the demanded attribute. A conjoint analysis is a method used in identifying and understanding the combined effects of product attributes on preferences for a product or service. In conjoint analysis, utility is the conceptual basis for assessing the value of a product or service, where individuals make decisions between bundles of products based on their budget constraints. The findings suggested that the most important attribute for rice was food safety, followed by taste and size of grain. Consumers were also willing to pay premium prices for the demanded attributes. The findings would have positive implications for the agrifood industry if it responds effectively to translate into business opportunities to these changes.