JED, Vol. 20, No.1, April 2018, pp. 86-96
Data Mining in Evaluating the Impact of Perceived Trust in the Consumption of Safe Foods in Vietnamese Households: The Case of Vegetables in Hanoi
Abstract:Food safety is as much of a concern to Vietnamese citizens as it is to the public authorities.
As safe vegetables are classified as credence goods, the markets of which exhibit a high level
of information asymmetry between the buyers and the suppliers. As such, making the market
for safe vegetables become more transparent and grow sustainably is a must, but not an easy
task. In this paper, we use a Kernel regression method to discover the main determinants of
consumers’ decisions for the consumption of “safe” vegetables with more focus on perceived
levels of trust. The result shows that apart from other traditional factors, perceived trust is an
important determinant of consumers’ decisions. However, the data shows that consumers put
more trust in un-verified factors such as “store’s reputation” or “label” and much less on formal
factors such as “government certificates”. This result raises some alarm as other studies show
that without trusted involvement from the Government, signals from suppliers, such as labeling
are not reliable.
Keywords:Kernel regression; perceived trust; safe vegetables.