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Building producer loyalty in Malaysia's fresh milk supply chain

Bonaventure Boniface, Amos Gyau, Randy Stringer () and Wendy Umberger ()

Australasian Agribusiness Review, 2010, vol. 18, 19

Abstract: The paper presents results from a survey of 133 dairy producers in Malaysia, and identifies how Malaysian milk buyers can build a loyal customer base with their suppliers as a means to secure uninterrupted milk supplies. A structural equation model was conducted to test the conceptual model using AMOS 17.0 software. The results show that whereas timely and collaborative communication, price satisfaction and cultural fit influence positively suppliers’ contractual and competence trust in their buyers, power dependency negatively influences competence trust. Furthermore, suppliers’ trust in their buyers will eventually lead to loyalty. The principal implication is that milk processors and other buyers need to engage in collaborative communication with the dairy farmers to ensure continuous and uninterrupted supply.

Keywords: Agribusiness; Agricultural and Food Policy; Farm Management; Industrial Organization; Institutional and Behavioral Economics; Marketing; Research and Development/Tech Change/Emerging Technologies; Research Methods/ Statistical Methods; Teaching/Communication/Extension/Profession (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:ags:auagre:114423

DOI: 10.22004/ag.econ.114423

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