The Determinants Of Consumer Preference Between Domestic And Imported Close Substitute Goods: - The Case Of Leather Shoes In Burayu Twon

Abstract

This research study was designed to analysis the determinants of consumer preference between domestic and imported close substitute goods. (The case of Leather Shoes in Burayu Twon) Specifically, to indicate how consumers will be evaluated both domestic and imported leather shoes in terms of product quality, style and price, to examine to what extent these factors influenced the consumers’ shoe choice and to look whether there were difference or not between the age groups regarding their preference in Burayu town shoe market. In order to achieve its objectives, the researcher gathered data from 100 leather shoe consumers in Burayu town shoe market through open and close ended questionnaires. The study was undertaken in two kebeles, 66 persons from Burayu Gafarsa and 44 from Katta Burayu. The data were collected through both questionnaire and interview. After data were collected the researchers used logit econometric model to analysis the data. The Logit output indicates that price, Style/design, quality, advisement, Family, Friends, Culture and Other variables used in the model significantly affected the consumers’ shoe choice and the other variables were not significant. Providing trainings, creating suitable working conditions, making advertisings, production of quality domestic shoes with best styles or designs are some of the recommendations for different actors such as the government, the consumer and the firm