Causal Model of Market Development Factors for Sustainable Avocado Processed Products in Marketing and Environment

Abstract

This article aims to (1) analyze a causal model of factors affecting the development of a sustainable processed avocado market, (2) analyze marketing strategies that promote market and environmental sustainability, and (3) propose market development approaches that meet consumer needs. The research methodology employs a mixed methods approach. The qualitative research was conducted through focus group discussions and in-depth interviews with 30 key informants to develop variables and conceptual framework. Quantitative research used a questionnaire to collect data from 400 entrepreneurs to test the causal model. Descriptive statistics were used to report variable characteristics, while Structural Equation Modeling (SEM) was employed to test model fit and causal relationships among variables. The research results found that (1) the causal model demonstrated good fit with the empirical data. The quality and innovation factor showed the highest causal effect on market development, followed by marketing strategy and resources and support. (2) Target group-specific marketing strategy received the highest support, followed by appropriate pricing, product knowledge, and cooperation with local farmers. (3) Consumers prioritized product variety, environmental impact communication, environmental certification, after-sales follow-up, and community engagement activities. The new knowledge revealed that market development must consider the causal relationships among all three factors in a balanced manner rather than examining factors separately. Entrepreneurs must prioritize and invest resources according to the influence level of each factor to achieve sustainable market development.