1.1 Background
Global relationships among countries have created many strong ties in several aspects; one of the most fruitful is the one between Paraguay and Taiwan, which since 1957 Taiwan helped the South American country to develop wealth in many aspects. Since 1992, Taiwan’s economy has been growing and growing through the years, being recognized as an Economic success. Its GDP growth has an average of 4.5 % and the real per capita escalated from 9,116 $ in 1992 to 25,004 in 2018, with the outcome of Taiwan being 28th in the list of wealthiest countries globally, and 6th richest country in Asia, although in 2019 has dropped to the 34th position of the wealthiest countries, the country has shown great potential. Taiwan’s expansion in international trades haven been expanded since then, and its numbers talk by themselves, like in 1992 when the ascent started the total trade was over 180 $ billions and represented 82 % of the GDP, and in 2018 Taiwan’s trade represented 126 % of GDP with a value over 745 $ billions, making of Taiwan the 17th largest trader (Government Portal of the Republic of China, 2020)
In 2016 president became president of Taiwan and with the New Southbound Policy she promoted greater economic integration with South and South-East Asia, bilateral trades with the US, and also wanted to join the Trans-Pacific partnership. These goods movements played a role in increasing Taiwan’s exports, around 11 % during the first semester of 2017 (Meltzer, 2017). On the other hand, Taiwan imports are mostly agricultural goods and raw material, because of the lack of arable land and indigenous natural resources, following in the second place are capital goods and the third largest import is consumer goods.
It has been seen that Taiwan growth rely on international trades, and its economy focuses in producing parts and components for final products, and its customers are usually from Japan, the United States and European Union, which over 70 % of Taiwan’s exports, compromise intermediate goods. Taiwan also produce 94 % of world’s motherboard and notebooks PCs, and most of the computer chips used by the Americans comes from Taiwan. Since the diplomatic relationship establishment between Paraguay and Taiwan, these two countries have been supporting internationally to each other and joining a strong and close exchange and cooperation ties in the field of commerce, agriculture, culture, education and so on.
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From 1961, the diplomatic relationship between Paraguay and Taiwan has been increasing and strengthening, with official visits of each President to each other countries, and other high officers, as well as the subscription of more than fifty bilateral instruments that comprehend a wide range of matters, culture, commerce and economic cooperation, technical cooperation, tourism, investments, financing, mutual investment guaranty, extradition, loans contracts, financing cooperation, public works constructions, air transportation, diplomatic and officers passports suppressing. Taiwan, through the Cooperation and International Economic Development funding, was and keep being important partner of Paraguay in the area of technical cooperation with several projects implemented in diverse areas, such as pisciculture, pig-farming, floriculture, agriculture, among others, canalized in Paraguay through a Technical mission of Taiwan.
Many donations from Taiwan to Paraguay have been effectuated all over these years of diplomatic relationships, pointing out the ones to the National Congress, the Minister of International affairs and the constructions of common housings. Moreover, there is a big number of youth who annually participate in different university programs, and technical and professional training, given from the Taiwan Government. Regarding to the bilateral trading, it is important to express that thanks to the close relationship among these two countries, Paraguay is strengthening more and more its trade balance with Taiwan, due to the efforts of privates sectors of both parties.
(Embassy of Paraguay in Republic of China – Taiwan, 2020)
The way Taiwanese people consume aliments have changed in the last two decades, mostly due the government’s actions. In 1996 obesity among Taiwanese adults has increased from 33 % to 44 % by 2008, among female 36 % and male 51 %. So because of the concern that obesity’s disease can increment and the alarming results; from the National and Health Survey in Taiwan, an institute that is planning nutrition surveys since 1980, and to support and empower to people to choose healthiest options, the Health Promotion Administration (HPA) in Taiwan, started an initiative in 2011, that consisted in targeting to recruit six hundred thousand citizens to collectively lose six hundred thousand kilograms of overweight every year. This initiative was well received all around the country and at the end of 2013 more than two millions of participants have lost about three million kilograms. Due to the welcomed and effective initiative that was effective in weight management at population level, brought positive support to develop new policies about health care and healthier environments. Considering these past events and the consciousness of Taiwanese people for consuming healthy foods and products, it is a good opportunity to offer a
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new natural product from a friendly nation; which by the way is rarely found in Asia unless recurring to online shops, to keep the line of healthiness among the citizens. However, to insert a new product in a market, it is important to study how people decide to spend their money based on their individual preferences and budget constraints. Studying how people operate makes easier for vendors to predict which of their products will sell more.
The Consumer Theory advocates that consumers decide how to assign their money in buying goods, with the aim to get the maximum satisfaction. In such manner, consumer theory include interaction of consumer preferences, combinations of good preferences that report the same satisfaction and the total quantity of goods that is possible to consume with a certain wage.
1.2 Motivation and Objectives
Twentieth century has been the witness of most technological agricultural changes leaving remarks on rural landscape population. Its impact showed sustainable food production became more and more vital after facing with social, ecological and economic impacts of industrialized agriculture. Societies are demanding healthy consumption as a critically important consumer driving, currently, it is generally accepted that consumers care about what they eat, how their food is produced and the impact that food production and consumption have on the environment and society. Consumers’ concerns about the methods of food production, the conditions under which food is grown, and its healthy value have increased in the developed world in the last two decades, a trend that will have considerable influence over food company strategies in coming years. This is a key fact to remarking that in the framework of the international business, the global food market involves more than US$ 3.4 Trillion in 2018 and is expected to reach a value of US$ 4.2 Trillion by 2024, registering a Compound Annual Growth Rate of 3.6% during 2019-2024 (Global Food Service Market, 2019).
For example, the annual study, Euromonitor International (2016) finds that respondents globally already rank good health as the most important determinant of happiness and that consumers show interest in dieting. The results of the survey suggest in the 15 leading youth markets, one-third of 16-27 year olds claim to be trying to lose weight, and healthy food was found to be popular worldwide, with 56% of global youth buying healthy products (Lappo Et Al, 2015).
It is possible to affirm that the benefits derived from a healthy diet can increase the demand for a specific food and consumers’ willingness to pay. However, the effects on buying behavior
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from expected health benefits are not the same across countries and individuals. Consumers’
ability to process information and understand health benefits will affect the adoption and consumption of these healthy foods, Consumer perceptions about food risk and benefits arise from social interaction and cultural framework also affects the willing to buy.
Individuals have different levels of qualifications, cognitive skills and personal experiences which may affect the perception of potential risks or health benefits. Other attributes as a taste, cost or safety may dominate the decision to consume the kind of products. Similarly, the effects on buying behavior may be associated with the level of consumer involvement in personal health care, and is related to other habits.
Therefore, the purpose of this study is to explore the determinants that are associated with consumption preferences of a healthy product, Hecodulc sweetener from Paraguay in the context of Taiwan’s consumers. Additionally, all the determinants explored under examination could serve as the basis for further related research; and to provide Taiwanese consumption preferences and trends to gain a better market understanding to lead marketing strategies regarding healthy food products in Taiwan. The objectives of this study as summarized as follows:
(1) To explore consumption preference of Hecodulc in Taiwan
(2) To provide marketing insights for the Hecodulc products in Taiwan
1.3 Research Procedure
This research focuses on the Taiwanese consumption preferences to determinate if the consumers are willing to consume Hecodulc sweetener from Paraguay. The research process is illustrated in Figure 1-1. Based on the research motivation and objectives, reviewing other related literature is conducted in order to achieve a better comprehension on the topic. The research method used is a qualitative study which includes the research model, development of the survey questionnaire and the subjects that are targeted. This research employs primary data and the survey is conducted to potential consumers with a minimum number of 20 consumers. The analysis and evaluation of the collected data is done according with the selected consumption preference model.
Finally, the finding and results are presented, followed by implications and conclusions.
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Figure 1. 1 Research process
1.4 Thesis Overview
The contents of five major chapters of this thesis are as follows:
Chapter One: Introduction. This chapter includes three main sections: The topic background, followed by the thesis purpose and objectives which guide the thesis statement, and lastly, a schematic outline of the thesis remainder
Chapter Two: Literature review. In this chapter a review of the most relevant and significant studies and publications regarding to the topic is provided, including the main contributions and its authors in order to achieve a comprehensive look and conceptual framework about the topic to support the theoretical bases of this study.
Chapter Three: Research Method. This Chapter explains the research methods and design that were used to conducted the study, including the data sources, data gathering procedure, data analysis, statistical treatments and research instruments.
Chapter Four: Analysis Results and Discussion. This section presented the findings of the study, its analysis and interpretation.
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Chapter Five Conclusions: In this last part the summarized of the major research findings, its implications, the contribution and suggestions for future research directions are displayed.