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Abstract— Many consumers have adopted the food of without clear sources.
dietary supplements. However, since the threshold of Keywords— word-of-mouth, product knowledge,
professional knowledge for dietary supplements is usually information search, risk perception, food safety.
high, most of the consumers do not possess sufficient
knowledge for making an appropriate purchase decisions I. INTRODUCTION
as they concern buying the products of dietary Due to the emergence of health-oriented lifestyle,
supplements. As a result, many consumers rely on word- dietary supplements have become a major line of product
of-mouth as they need to make purchase decisions on in the food biotechnology industry. According to the
buying dietary supplements. It causes health risk to statistics, the transaction value of the global dietary
consumers since the word-of-mouth may be wrong and supplement market reached USD 195.8 billion in 2011
thus to make consumers take wrong dietary supplements. (Liu, 2012), and the scale of d ietary supplement market in
To address this deficiency, this study explores how Taiwan was NT$ 62.5 b illion, accounting for 10.4% of
consumers’ knowledge for dietary supplements and risk the entire food consumption market and beco ming the
perceptions influence their search behavior for word-of- largest food industry in Taiwan (Chen,2008; Chen, 2007).
mouth in the purchase of dietary supplements. With a In fact, many consumers have accepted the idea of using
two-stage cluster sampling strategy, 370 questionnaires dietary supplements to strengthen bodily functions .
were distributed to thecustomers of retail stores for According to the consumer survey by the International
selling Ganoderma dietary supplements, while 314 Food Information Council Foundation, over 70% of the
questionnaires were valid for statistical analysis. With the interviewed people agree that consuming particular food
analysis of linear structural equation modeling, the could enhance bodily functions and ensure health (Liu,
causal structural relation among consumers’ product 2007). Nevertheless, dietary supplements often involve
knowledge, risk perception and word-of-mouth search complicated constituents and effective ingredients,
behavior was examined. According to the statistical physiological mechanism or manufacturing procedure.
results, consumers’ subjective product knowledge has Therefore, the threshold of product knowledge for dietary
greater overall impacts on the degree of word-of-mouth supplements is high. According to the theory of
search behavior, compared with consumers’ objective consumers’ purchase decision process, consumers with
product knowledge. Namely, if consumers have more inadequate internal knowledge would seek more external
subjective knowledge for products, they are less likely to informat ion so as to reduce purchase risk in highly risky
rely on word-of-mouth for the purchase of dietary purchases. Consumers can obtain information through
supplements. For promoting the concept of food safety to diverse channels, among which word-o f-mouth (WOM ) is
consumers, consumers should be prepared with more nearly the most reliable external informat ion source for
correct product knowledge, in order to develop trust in consumers. Hence, WOM is often regarded as the main
self product knowledge in the publicity of safe external informat ion for consumers (Bansal &Voyer,
consumption of dietary supplements, and reduce their 2000; Mattila&W irt z, 2002). According to the results of
dependence on the reputation of the dietary supplements Nielsen’s online questionnaire survey on 47 countries in
H3a
2. Results of the reliability and validity tests study measured consumers’ basic knowledge on
The Cronbach’s α of “subjective product ganodermadietary supplements. A higher score indicates
knowledge” was 0.94, and those for “financial risk more objective product knowledge on ganodermadietary
perception”, “Efficacy risk perception”, “Health risk supplements. The test items covered the source of the
perception”, “Psychological risk perception”, “Social risk bitterness of ganoderma, the effective ingredients of
perception” and “Time risk perception” were 0.83, 0.89, ganoderma, the making of ganoderma products, and the
0.91, 0.88, 0.82 and 0.85, respectively. The Cronbach’s α immune effects of ganoderma. For that reason, the
of “Degree of W OM search” was 0.86. Additionally, the reliability of the items about objective product knowledge
measurement items of “objective product knowledge” differed fro m that of the items based on the Likert’s 5-
were made to test consumers’ actual knowledge on point scale and thus cannot be represented through
ganodermadietary supplements (Mattila&W irt z, 2002; Cronbach’s α. Therefore, this study adopted the expert
Park et al., 1994; Raju et al., 1995; Ganoderma Health review method, where three experts who specialize in the
Foundation of Legal Persons of Consortium, 2009). physiological develop ment of ganoderma and the
According to the definit ion of objective product processing of ganoderma food were invited to test the
knowledge and the operation in previous studies, this validity of the items.
Table.2: Confirmatory factor analysis and normal distribution test of the measurement model of subjective product
knowledge
Estimated Parameter
Normal Distribution Test
of MLE
Variable Measure
Factor
ment
Load (λx)
Error (δ) CR AVE Skewness Kurtosis
2) The measurement model of objective product of the items was taken as the observation item and
knowledge: each item of the objective product added into the model. The confirmatory factor
knowledge of this study can directly indicate the analysis was not suitable for the measurement of this
amount of information of consumers. The total score variable, so in the construction of this measurement
Table.3: Confirmatory factor analysis and normal distribution test of the measurement model of perceived risk
Estimated Parameter
Normal Distribution Test
of MLE
Factor Measure
Variable
Load ment
(λx) Error (δ) CR AVE Skewness Kurtosis
4) The measurement model of the degree of WOM 0.052. A lthough the RMR was lower than the
search: (a) the factor loadings of the items were all criterionof lower than 0.05, it was also within the
significant (P < 0.001); (b) the composite reliability acceptable scope (Hair et al., 2006) (Table 4).
of the two-stage confirmatory factor analysis of This study referred to the discriminant valid ity
perceived risk was 0.887, meet ing the criterion of criterion suggested by Fornell and Larcker (1981) to test
higher than 0.7; (c) the AVE was 0.525, meeting the the AVE o f the items of each variable. The results showed
criterionof higher than 0.5; (d ) the GFI, NFI and CFI that the AVE of each variable was higher than the
were 0.853, 0.842 and 0.844 respectively, higher variable and the squared value of relevant coefficients of
than 0.8 (within the acceptable scope) though lower other variables. This means that the variables of this study
than the criterionof higher than 0.9. The RM R was have effective discriminant validity.
Table.4: Confirmatory factor analysis and normal distribution test of the measurement model of the degree of
WOM search
Estimated Parameter
Normal Distribution Test
of MLE
Measure
Variable
Factor ment
Load (λx) Error (δ) CR AVE Skewness Kurtosis
(3)The goodness of fit of theory model RM R o f the model established in this study was
Previous studies have proposed different 0.049, and the RMSEA was 0.076, meet ing the
suggestions on the test on the goodness of fit of the SEM. suggestion that RMSEA be lo wer than 0.05 and 0.08.
Following the suggestions from Bagozziet al. and Hair et 2) Incremental fit measures: it is used to measure the
al. (Bagozzi& Yi, 1989; Hair et al., 2006), this study difference between the hypothetical theoretical
tested three types of goodness of fit, including the model and the null model. The indexes adopted in
absolute fit measures, the incremental fit measures, and this study included AGFI, NFI and CFI. A GFI is
the parsimonious fit measures . The results are shown in obtained by adjusting the degree of freedo m of fit
Table 5. The meaning and index results of the measures index (Hair et al., 2006). If it is closer to 1, the
are as follows: overall fit is higher and the explanatory power of
1) Absolute fit measures: it tests the degree of fit model is stronger. In general, a GFI h igher than 0.9
between the overall model and actual data. The is taken as the threshold value, and GFI should be
indexes adopted in this study were square degree of higher than 0.8 (Bagozzi& Yi, 1989). The A GFI of
freedom (χ2/d.f.), GFI, RM R and RMSEA. The the overall theoretical model of this study was 0.807,
suggested value of square degree of freedo m was which indicates that the fit of the proposed model is
under 3, wh ich indicates that the overall model and accepted. NFI is used to reflect the incremental fit of
observation data haveeffective fit. The square degree model, and a NFI higher than 0.9 is regarded as the
of freedo m (χ2/d.f.) of the overall theoretical model criterion (Hair et al., 2006). According to the
was 2.978, meeting thesuggested value. statistical results, the NFI of the hypothetical model
Goodness fit index (GFI) refers to the ratio(Hair et constructed in this study was 0.914, meeting the
al., 2006) of the variance and co-variate that can be suggestion that NFI be higher than 0.9. CFI is used
explained by the measurement theory model. If GFI to show the difference between the theoretical model
is closer to 1, the overall fit is higher and the and the independent model without any co-variate
explanatory ability of the model is stronger. In relation. A suggested CFI is higher than 0.9. In this
general, a GFI higher than 0.9 is taken as the study, the CFI of the proposed was 0.943, meet ing
threshold value, and GFI should higher than 0.8 the suggestion that measured CFI be higher than 0.9.
(Bago zzi& Yi, 1989). The GFI of the overall 3) Parsimonious fit measures: it is used to compare the
theoretical model of this study was 0.868, wh ich fit of the estimate coefficients of the models with
indicates that the fit of the proposed model is different number of estimate coefficients. The
accepted. In terms of RM R, Hair et al. (2006) adopted indexes were PNFI and PCFI. Both PNFI
suggested that a smaller RM R is better and the best and PCFI should be higher than 0.5 to reach a good
RM R is lo wer than 0.05. RMSEA is not influenced fit (Hair et al., 2006). The PNFI and PCFI of the
by either the number of samples or the complexity proposed theoretical model were 0.616 and 0.637
of model. In general, a lower RM SEA indicates a respectively, both of wh ich were higher than 0.5 and
higher fit of model, and a RMSEA lower than 0.08 within the scope of suggested values.
is regarded as the criterion(Hair et al., 2006). The
Results of Evaluation of
Fitness test Evaluation index Criterion
analysis Fitness test
Absolutefit measures χ2/d.f. <3 2.978 Effective
GFI >0.9 (or >0.8) 0.868 Acceptable
RMR <0.05 0.049 Effective
RMSEA <0.08 0.076 Effective
Incremental fit measures AGFI >0.9( or >0.8) 0.807 Acceptable
NFI >0.9 0.914 Effective
CFI >0.9 0.943 Effective
Parsimonious fit measures PNFI >0.5 0.616 Effective
PCFI >0.5 0.637 Effective
(4) Structural model of the correlation among product this study adopted the structural model obtained fro m the
knowledge, perceived risk and the WOM search SEM analysis to test the path coefficients of potential
The statistical results of the indexes measuring variables to determine the statistical significance of the
the fit of the causal relationship model of the variab les of structural relation and the causal relationship among the
subjective product knowledge, objective product variables. The results are shown in Table 6, and the path
knowledge, perceived risk and the degree of W OM search analysis of the causal relation among the potential
was effective enough to exp lain the actual data. Therefore, variables is shown in Figure 2.
The path analysis of the linear structural H1a is supported. Consumers’ objective product
equation found that, the type of product knowledge has knowledge, however, does not have significant influence
different impacts on consumers’ perceived risk in their on their perceived risk (P = 0.694); hence, H1b is not
purchase of dietary supplements. Despite that consumers supported. The findings are consistent with previous
is in a positive correlation with their subjective and studies, which indicated that consumers with more
objective product knowledge of dietary supplements (β= subjective product knowledgehave less perceived risk of
0.22, P = 0.000), the two factors have different impacts products (Bansal &Voyer, 2000; Srin ivasan &Ratchford,
on the perceived risk of dietary supplements. Consumers’ 1991). Consumers’ subjective product knowledge is
subjective product knowledge is in a negative causal correlated to objective product knowledge, the two have
relationship with their perceived risk, and the different impacts on consumer behaviors (Park et al.,
standardized path coefficient was -0.42 (P <0.001); hence, 1994; Raju et al., 1995; Teratanavat& Hooker, 2006).
H1b
-0.39(-5.98)***
H1a
-0.01(-0.39) b
0.811 H3b
0.215 Psychological risky2 H3a
0.787
0.530
0.422 Social risk y5
0.414 0.378
0.388
Fig.2. Causal relationship of product knowledge, risk perception and WOM search behavior