Understanding factors affecting rice purchasing decisions in Indonesia: Does rice brand matter?

1.1 Literature review

Indonesia is a country known for its large consumption of rice. When buying an item, consumers usually have certain reasons or considerations. Purchasing decisions are, of course, based on consumer preferences [22], in this case, preferences for purchasing rice. In the market, there are many brands or alternatives, so consumers have the option to buy the most preferred product. Consumers can evaluate a product from information previously obtained through other people’s reviews to determine which products to choose and which to avoid [23]. Some important factors that influence brand selection include packaging, product quality, taste, and product popularity [24]. In this study, the factors studied included age, household income, rice price, presence or absence of rice brand, rice grain immediacy, knowledge of rice imports, number of family members, and gender.

Although there have been many studies related to product purchasing decisions [8,9], there is no research on rice purchasing decisions that focuses on the independent variable of rice brands in times of pandemic conditions. For this reason, this study investigates the factors that influence rice purchases, particularly how the rice brand factors into rice purchasing decisions. The rice brand in this study is the identity used to distinguish one rice product from others in the market. Brands may include names, symbols, logos, designs, or combinations of these elements used to identify and differentiate products from their competitors. Hidayat et al. [25] stated that consumer interest in branded food products is increasing following growing awareness of the need to live a healthier, safer, and more environmentally friendly life. With product brand, consumer confidence in the rice products consumed can increase because the information needed is stated on the label.

Age is the time a person has from birth until the implementation of this study, expressed in years. Age can also be defined as the length of a person’s life calculated from the year of birth until their last birthday [26]. Adulthood is the age of 18–40 years when mental abilities reach their peak. The age of more than 40 years is referred to as early middle age, which is a period when a person experiences physical and mental changes. In adulthood, a person usually reaches the peak of achievement and has a creative mind.

Household income is the income received by the household, either by the husband, wife, or children. Household income can be in the form of money that comes from wages, salaries, profits, etc. [27]. There are three forms of income, namely income in the form of money, goods, and non-income, which is a redistributive transfer. In this study, the amount of household income is categorized into three groups, low, medium, and high income.

The price of rice is the amount of money that customers must pay to obtain it. The issue of price in agriculture is an ongoing discussion because as time passes, problems regarding prices related to agricultural products also develop. The price of rice has increased every year [12]. Rice has strategic value because it is one of the staple foods of the Indonesian people.

The uniformity of rice grains is the similarity of the size of rice grains that are categorized by size into whole grains, large broken grains, broken grains, and groats. The content of broken grains contained in a rice sample can determine the physical quality of rice and classification to a certain class level. Grains that appear intact or fairly unbroken are a benchmark that can be used in selecting good rice [28]. The integrity of the rice is influenced by several factors, such as the weather during rice harvesting and the farmers’ drying system. The shape of rice grains is generally classified as very oval (>7 mm), oval (6–6.9 mm), slightly round (5–5.9 mm), and round (<5 mm) [28].

Knowledge about imported rice concerns people’s awareness of imported rice in terms of price differences, quality, and varieties. Rice importing is the activity of transporting rice into a customs area from abroad. Imported rice is useful as a reserve that can be used at any time by the government to maintain price stabilization, as well as in the case of certain conditions, which are determined and monitored by the government. The majority of people gain knowledge of imported rice from family and neighbors [28]. The varieties of imported rice known to the public are generally basmati, biryani, and others.

The number of family members is the number of members in a household or the entire number of household family members who live and eat from one kitchen with a population group that is already included in the labor force. Alam et al. [29] stated that the more the family members there are, the greater the number of family needs that must be met. Vice versa, the fewer the number of family members, the fewer needs the family has to fulfill.

Gender is one of the categories in daily and social life. Gender categories occur automatically because the signs of gender can be seen physically such as hair, face, breasts, and others [30]. The distinction between the gender is unchangeable and is often said to be the nature of God.

3.1 Characteristics of Rice Consumers in this Study

As explained in Section 2, this research has limitations in terms of the uneven distribution of its respondents located in Indonesia. Researchers distributed online questionnaires to respondents they could reach. Table 2 shows that respondents’ residences are spread throughout Indonesia. The highest number of respondents was in Central Java (331 or 31.6%), the second highest was in D.I. Yogyakarta (290 or 27.6%), and the third highest was in West Java (131 or 12.5%). The lowest number of respondents was in other areas such as Bali, Nusa Tenggara Barat (NTB), and Nusa Tenggara Timur (NTT) (10 respondents or 0.2%) and Papua (2 or 0.2%).

Table 3 presents the consumers’ characteristics based on gender, age, education, employment, and income. Most (70.4%) respondents were women. Consumers aged between 36 and 49 years dominated this research. In Indonesia, age 36–49 is a productive age for carrying out activities and being at an established age. Many of the study respondents worked as civil servants and entrepreneurs. The majority of consumers had studied at university and obtained a bachelor’s degree. A total of 40.6% of consumers had an income above IDR 5,000,000/month.

Table 3 shows that the average age of respondents is 37 years. The majority of the respondents are at a productive age, namely aged 16–64 years. Respondents had an average education of 15.76 years, and many (45%) had completed their education up to the undergraduate level. Regarding gender, 70.4% were female and 29.6% were male. The average respondent’s income was IDR 3576.886. Household income plays a vital role in determining food in the household, thus affecting consumption patterns and nutritional outcomes. Households with lower-middle incomes tend to prioritize consuming inexpensive sources of calories [34]. Based on the current study’s collected data, the majority of the households (62.47%) had a three-meals-a-day pattern, with rice as the staple food. The remaining 31.78% of households consumed two meals per day, and 5.74% consumed one meal per day. In this study, 45% of respondents knew about imported rice and could name the types of imported rice, while 55% of respondents did not know about imported rice. A total of 1,047 respondents were distinguished according to their gender, as shown in Figure 1.

Figure 1

Diagram of the number of respondents by gender.

The characteristics of the respondents based on work are illustrated in Figure 2.

Figure 2

Diagram of the number of respondents by occupation.

Figure 2 details the employment status of respondents in the study, ranging from students to civil servants and traders. This demographic profile is crucial for exploring how different consumer segments, shaped by their occupations, perceive and choose rice brands. Policymakers can use this insight to tailor strategies, such as targeted marketing or affordability initiatives, to better meet the diverse needs of consumers in the Indonesian rice market. Table 4 provides an overview of respondents’ characteristics based on income level. People’s income is very diverse. This income classification refers to Ciu and Oetama [35], which uses the same method. Community income values are classified according to the appropriate income value range to calculate the percentage of the distribution of respondents’ income levels. The income distribution among respondents in the study highlights varying levels of purchasing power (Table 4), which directly impacts their rice-buying decisions in Indonesia. The majority of respondents fall into the highest income bracket (>IDR 5,000,000), suggesting potential preferences for buying rice. Conversely, a significant portion of respondents have lower incomes (<IDR 1,000,000). Policymakers can use these data to devise strategies that cater to different income groups, such as subsidies or price regulations, to ensure rice affordability for lower-income segments, while also promoting market diversity and accessibility for higher-income brackets. Figure 3 displays respondents’ characteristics based on the last level of education completed.

Figure 3

Diagram of the number of respondents based on education.

Figure 3 shows that the highest number of respondents had a bachelor’s degree (475 or 45.2%), followed by a master’s (204 or 19.3%), senior high school (154 or 14.5%), diploma 1/2/3 (79 or 7.5%), a postgraduate degree (78 or 7.4%), an elementary school education (37 or 3.5%), a junior high school education (17 or 1.6%), and others (3 or 0.3%). This shows that the average respondent is educated, and only 0.3% are not in school (someone with 0 year of formal education).

3.2 Overview of rice purchasing in Indonesia

The availability of rice with various attributes in the market impacts consumers’ purchasing decisions. Consumers will buy rice according to their preferences [36]. As with the types of rice consumed by the community, there must be a variety. This is due to the wide variety of rice as technology develops, such as organic and non-organic rice. People have their tastes to choose organic, non-organic rice or consume both. This can be seen in Figure 4.

Figure 4

Purchase of rice by type.

Based on the data, the majority of people in Indonesia prefer to buy non-organic rice compared to organic rice. This is because non-organic rice has a cheaper price and is easier to find in the community. In addition, this is also influenced by the culture and habit of consuming non-organic rice for a certain period of time. However, more people are starting to realize the nutritional value and no risk of pesticide residues in organic rice [37]. This is shown by the fact that 43% of people have started consuming organic rice.

In addition to different types of rice, people also have different habits in choosing where to buy their rice. People with a luxurious lifestyle will prefer to buy rice at minimarkets or supermarkets, as for people who prefer easy access by buying rice online or at a shop near their home. Some people consume rice from the harvest of their own paddy fields. Figure 5 shows the distribution of respondents based on the location of rice purchase.

Figure 5

Category of rice purchase location.

The location of purchase is also something that greatly influences the level of community rice purchases. In general, people buy rice in small quantities at the nearest store in the home area. However, some people prefer to buy rice at traditional markets to find cheaper and more diverse rice, and some prefer to buy rice at minimarkets or supermarkets. In Figure 6, it can be seen that more respondents purchase rice at the nearest stall, with a percentage of 63%. This shows that easy access is more favored by the community to fulfill their rice needs. The location of the shop close to the house makes it easier for people to buy rice in small quantities. This is motivated by economic factors, and people think that buying large amounts of rice at once can affect their economic conditions.

Figure 6

Total rice consumption of the respondent per day.

Figure 6 indicates that most consumers consume rice three times a day (60.4%), 30.7% consume rice twice a day, and 5.5% consume rice only once a day, showing that the majority of consumers consume rice every day and rice is still the main choice for fulfilling food needs in the country. Meanwhile, consumers who do not consume rice every day usually choose to consume fruits and vegetables daily. The amount of rice consumed by consumers varies each month, depending on the number of family members and their diets.

Figure 7 presents the average monthly rice consumption of 11–20 kg/month (40.5%). Approximately 34% of consumers eat fewer than 10 kg of rice per month. Moreover, a total of ten people reported not knowing how much rice they needed for 1 month. The per capita rice consumption in ASEAN is 2.5 times higher than the global average, Indonesia’s average per capita rice consumption is 120 kg per year, which is much higher than the global average of 60 kg per year [38]. The amount of rice consumed by a family per month is, of course, based on the number of family members and the daily calorie needs of each individual. Women, especially those who are already mothers, generally spend more time than men doing household chores and taking care of children [39]. Women often prepare food for their families. It should be noted here that the word prepare does not necessarily equate to cook; preparing food can also be accomplished by buying ready-made food and serving it to the family. The results show that the majority of households in Indonesia (70%) who buy rice are women or mothers, while the rest are children. Women are essential to food security, especially in developing countries, owing to their role in household food provision [40]. In Indonesia, domestic needs, such as preparing food, are mostly done by women because of traditions passed down from generation to generation.

Figure 7

Rice needs per month.

Each consumer’s rice purchase location differs. There are several considerations in choosing the purchase location, such as price, quality assurance, ease of access, and proximity to the seller. Rice consumption preferences based on the location of rice purchase are detailed in Table 5.

According to the data presented in Table 5, most consumers (64%) choose to buy rice at stalls/grocery stores because they are usually located closer to where consumers live and are easily accessible. A total of 120 consumers (11.5%) choose to buy rice directly at the market. A total of 86 (8.2%) of consumers reported purchasing rice at supermarkets, usually in urban communities. Meanwhile, people living in rural areas stated they preferred to buy rice directly from the mill (43 or 4.1% of total consumers) because the price of rice there is cheaper than that at the market, supermarket, or grocery store. Some people residing in villages choose to buy directly from farmers, while other consumers said they bought rice from relatives, online, and in restaurants. Additionally, some consumers stated that they do not buy rice because they harvest their own crops, are given rice by their parents, or are rationed rice. Shavitt et al. [41] stated that social classes influence consumers’ choices of where to buy rice. Lower-class consumers usually buy rice at stalls and grocery stores/kiosks, while the upper class tends to frequent modern markets. Figure 8 shows a stall/grocery store in Indonesia.

Figure 8

A stall/grocery store in Indonesia. Source: Taken by the authors.

Figure 8 shows a small stall that usually sells rice. Stalls like the one pictured above are usually found in rural areas in Indonesia. There are many options for consumers to choose from when purchasing rice, including brand, packaging, and size. The choice depends on the consumer’s taste and purchasing power [32]. Rice can be divided into two types, namely organic and non-organic. Figure 6 illustrates rice consumption based on the type of rice.

The majority of the rice consumers in Indonesia surveyed in this study (56.4%) consume non-organic rice. Non-organic rice is mostly preferred over organic rice due to its relatively cheaper price. In addition, non-organic rice is more affordable and more available in the market. However, some consumers have health awareness, so they choose to consume a combination of organic and nonorganic rice in their rice consumption pattern. A small number of consumers prefer to consume only organic rice. These organic rice consumers predominantly live in urban areas and have high knowledge and health awareness, which explains their preference for organic food products [37].

Local rice varieties play a vital role in food security and sustainable agricultural development, indicating a significant resource for rice genetic improvement [42]. Local rice varieties are often still found in some areas owing to their distinctive characteristics and ability to adapt to specific environmental and climatic conditions. Regarding the rice varieties consumed by consumers, there is no dominant variety. Each region has varieties that are popular in the community. Since the consumers who were respondents in this study mostly live in Java, the varieties C4, Mentik Wangi, and Raja Lele were the most commonly reported.

Figure 9 presents rice consumption by rice variety. Some local rice varieties, such as C4, Rojo Lele, and Mentik Wangi, are aromatic rice and high quality. Aromatic rice is one type of rice that is in demand by the public owing to its fluffy character and pandanus aroma that it gives off when cooked, creating a fragrant taste and smell.

Figure 9

Rice consumption by varieties.

The majority of rice consumers in Indonesia prefer local rice to imported rice. A very small proportion of consumers choose imported rice, only 1.1% (Figure 8), on the grounds that there is only imported rice available in their area and the quality of imported rice is cleaner, fluffier, and not mushy when cooked. Meanwhile, consumers who choose local rice have various considerations, such as the desire to help local farmers, love of domestic products, ease of access, better taste/taste preferences, and cheaper price.

The strong desire for local rice was found not to be accompanied by knowledge about the physical characteristics of local rice. Of the 1,047 rice consumers who responded, only 17 provided accurate descriptions of the physical characteristics of local rice (Figure 10). Some consumers can recognize imported rice (e.g., Basmati, Japanese rice, and Briyani), which have distinctive physical characteristics and differ substantially from local rice. However, 56% of consumers did not know anything about imported rice.

Figure 10

Preference for local and imported rice.

In this study, more respondents bought branded rice (67%) than bulk rice (33%) (Figure 11). Widayanti et al. [43] explained that bulk rice only has a price advantage over branded rice. As for product quality, branded rice is superior to bulk rice; for example, in terms of more intact or uniform rice grains, a greater range of rice varieties, and a better rice color. When buying branded rice in packages, many respondents preferred to buy rice in 5 kg packages (58.3%), 10 kg packages (21.8%), and the rest (19.9%) bought rice in larger sizes, namely 25 kg.

Figure 11

Preference to buy branded rice or bulk rice.

Figure 12 shows the various sizes of rice commonly found in the market. Generally, in minimarkets, the most commonly found packaged rice is the 5 kg size with various brands. Other sizes, such as 2.5 and 25 kg, are generally found in supermarkets that sell a wider range of products. People buy rice based on their current needs because whether they buy a little or a lot, the price will be the same. In other words, with the same brand and variety, if people buy 1 kg, it will cost the same per unit as buying a 25 kg sack. Respondents preferred to buy a little bit according to their needs rather than having to buy a lot at once because the price offered is the same (buying large or small packaging).

Figure 12

Branded rice in packages: (from left to right): 2.5 kg, 5 kg, and 10 kg. Source: Picture taken by the corresponding author.

3.3 Factors Affecting Rice Purchasing Decision in Indonesia

The analysis results presented in Table 6 indicate a Prob > chi-square value of 0.1988. This significance value exceeds the alpha level (0.1988 > 0.05), implying concordance between the estimated logistic regression model data and the observed data. Furthermore, these findings reveal that the formed model adheres to the criteria for a well-fitting model.

The purchase of rice by people in Indonesia is based on several factors. Factors examined in this study include age, household income, price of rice, rice brand, homogeneity of rice grains, knowledge about imported rice, number of family members, and gender. As can be seen from Table 7, age is one of the attributes that influence consumer behavior when making purchases.

Based on Table 7, the logistic regression analysis results show that the age variable (A) is negative and has a significance value of p < 0.05, which means that age significantly affects rice purchasing decisions in Indonesia. The older the respondent’s age, the less rice they purchase, or, in other words, the older a person, the more mature they will be in thinking and the greater their other needs, so that they will allocate only enough financial resources to rice purchases as is sufficient to meet their immediate needs. Data from the Minister of Health of the Republic of Indonesia [44] also state that the older a person is, the lower their daily caloric needs. A young person has a higher daily calorie requirement than an older person, so the younger person will buy more rice. Age is also an important attribute that determines a person’s mindset in deciding the types of goods and services one will consume to achieve satisfaction. As a person ages, they reduce their rice consumption due to health issues, and be more selective about which foods to eat and what products to purchase. An older person will experience a functional decline in physiological systems and be more susceptible to disease and declining body condition [43]. In a South Asian study, the amount of white rice consumed may increase the risk of diabetes. In Indonesia, parents usually reduce the consumption of rice and replace carbohydrate intake with other foods such as potatoes, cassava. The household income variable (I) has a positive coefficient value with a significance value of 0.086, which shows that p < 0.10. Thus, the higher the respondent’s income, the more rice the respondent buys. The purchasing power in an economy depends on different levels and distributions. Income can significantly influence purchasing decisions for consumers. If income increases, a household’s ability to buy various needs grows [45]. Getting older is usually accompanied by more income [46] because with increasing age, a person becomes more experienced and an expert in their field, thus boosting their income. When purchasing products, especially food, a person with a high income will make a purchase decision by looking at quality. Higher-income makes it easier for a person to access rice that is not only high quality but also following their health needs. In terms of health, people who are getting older will be more careful about what they consume and make many considerations when purchasing rice, one of which is health issues. People with higher incomes will choose to consume rice that is very high quality. An older person with a higher income will be wiser concerning consuming rice and will strongly consider the quality of the product before making a purchase.

The analysis’s price variable (PR) showed a significance value of p > 0.05, which means that the price of rice has no significant effect on rice purchasing decisions in Indonesia. Rice is the main or staple food of the Indonesian people [47]. The importance of rice as a daily food makes people accustomed to and try to buy rice at any price because the presence of rice as a food component is mandatory for Indonesian society.

The rice brand variable (RB) showed a significance value of p > 0.05, which indicates that the rice brand does not significantly affect rice purchasing decisions in Indonesia. Indonesians buy rice based on need without looking at the brand [47]. In a pandemic situation, consumers may not have flexible options, for example, a rice brand that is not affected during a pandemic may be affected under normal conditions. They generally only buy based on income adjusted for the taste or quality of the rice. Some of the factors that make the brand unimportant and the performance level low are that the needs of each household vary; consumers buy according to their financial capabilities and are more concerned about the rice itself than the brand. Moreover, during a pandemic, economic factors such as job loss or financial strain may also influence purchasing decisions, leading consumers to prioritize cost-effective options rather than specific brands. Overall, the stability and essential nature of rice consumption, combined with economic considerations and the perception of rice as a commodity product, may explain why rice brands may not significantly affect purchasing decisions during a pandemic. In such situations, consumers may prioritize purchasing any available rice rather than being selective about brands. Consumers may buy rice in bulk to minimize the frequency of shopping trips and reduce potential exposure to the virus. In such cases, the focus is often on quantity rather than specific brands.

Furthermore, the rice grain homogeneity variable (JdHR) had a significance value of p < 0.01 and showed a positive value. The results indicated that if more rice has grain homogeneity, consumers will be more eager to buy it. In contrast, if there are too many broken grains, consumers feel displeased. Therefore, producers could boost their reputations and be evaluated more positively by consumers by selling rice with good grains that are not broken [43]. To compete, especially at the international level, local rice needs to be diversified, and there is a need to improve product quality [48]. Rice grain homogeneity also needs to be considered, as the results of the research showed that rice grain homogeneity has a positive effect on rice purchasing decisions in Indonesia.

The results of the knowledge about imported rice (JdKnow) were positive and had a significance value of 0.022, which shows p < 0.05, meaning that knowledge about imported rice has a real effect on rice purchasing decisions in Indonesia. The higher the respondent’s knowledge of imported rice, the higher the decision to purchase rice. Only a few people were familiar with imported rice. Most people who do not buy imported rice do so due to a lack of knowledge about the benefits of imported rice and the difficulty of finding imported rice at stalls. The majority of respondents (93%) bought local rice at stalls or traditional markets, while the remaining 6% purchased rice at supermarkets, so many of them found it easy to buy local rice. Generally, people in urban areas prefer to buy imported rice because it is better quality than local rice [32]. Imported rice is considered to have a better flavor, be not broken, and be free of stones and other impurities [13,49]. Imported rice has many advantages, such as better taste and higher nutritional value [49]. Given the superiority of imported rice, it is necessary to improve the quality of local rice so domestic farmers can compete against imported agricultural products [50].

The variable number of family members (Num) in the analysis showed a significant value of p > 0.05, which means that the variable number of family members had no significant effect on rice purchasing decisions in Indonesia [45,47]. The number of family members in the household does not affect the purchase of rice because rice is a staple food that makes Indonesians inevitably have to buy it, regardless of the number of family members they have. People will still buy rice if there are many or few family members because it is a staple food. The gender variable (Gender) in the analysis showed a significance value of p > 0.05, suggesting that the gender variable had no significant effect on rice purchasing decisions in Indonesia [51]. Because rice is a staple food for the people of Indonesia, gender does not matter because both men and women need rice for food. In general, humans need food regardless of gender, especially Indonesian people who make rice as their main meal daily [52].