Waste not: selling near-expired bread in Indonesia

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Waste not: selling near-expired bread in Indonesia Chairy Chairy 1 & Chandra Raharja 2 & Jhanghiz Syahrivar 1,3 Mahjus Ekananda 4

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Received: 17 March 2020 / Accepted: 15 June 2020/ # Springer-Verlag GmbH Germany, part of Springer Nature 2020

Abstract The high volume of global food waste in recent years has brought about economic and environmental catastrophes. At the retail level, food waste occurs as a consequence of maintaining high aesthetic standards, such as tossing out imperfect foods or foods that are nearing “best before” or expiry date. This study aims to investigate factors affecting consumer intention to buy near-expired bread in Indonesia, the world’s largest importer of wheat grain and a growing market for the bread industry. Previous studies have demonstrated that price consciousness and sale proneness are predictors of purchase intention of perishable foods. This research extends previous studies by incorporating perceived product quality in the purchase intention of near-expired bread. This study gathered 258 Indonesian consumers of near-expired bread. By using SEM-PLS approach, this study demonstrates that price consciousness, sale proneness, and product quality have positive and significant effects on purchase intention of near-expired bread. The results of this research provide guidelines for bakery shops owners and marketers on how to sell near-expired bread thereby reducing food waste and recouping financial losses due to production excess. Keywords Food waste . Price consciousness . Product quality . Sale proneness . Purchase

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* Chairy Chairy [email protected] Chandra Raharja [email protected] Jhanghiz Syahrivar [email protected] Mahjus Ekananda [email protected] Extended author information available on the last page of the article

C. Chairy et al.

1 Introduction Food waste is the major concern of developed and developing countries for the last 10 years. Not only is it an environmental problem that contributes to greenhouse gas emissions, food waste is also a big economic problem. According to the Food and Agriculture Organization or FAO (2013), one third of foods produced globally were wasted. It is equal to more than 1.3 billion tons of waste food per year and an estimated cost of around 750 billion dollars annually. Throwing so much waste food away means losing money for nothing or world economic loss. That is why the United Nation calls for action to reduce waste food. For many years, consumption patterns of modern citizens have degraded the environmental quality (Shamsi and Siddiqui 2017). Retailers and consumers contributed to food waste by throwing edible food into the bin. According to FAO (2011), food is wasted in at least three different ways: discarding fresh produce that deviates from the optimum, discarding foods that are beyond “best before” date, and discarding edible leftovers because they were purchased in excess or more than what were needed. Based on the Food Sustainability Index issued by the Economist Intelligence Unit (EIU) in