Factors affecting sales revenue of Ethio telecom in case of West Addis Ababa zone

Abstract

The study investigated factors affecting sales revenue of West Addis Ababa Zone Ethiotelecom. The study used descriptive research design to examine factors affecting sales revenue of Ethiotelecom. Out of 179 employees in fifteen shops, 124 sales persons were selected randomly to be sample size for gathering and analyzing it. The primary data collected from shops employees by closed ended questionnaires and secondary data of sales revenue from WAAZ Zonal offices in quantitative form. The raw data obtained for the period of July 01, 2016 to June 30, 2022 budget years. A data was paneled to analysis factors affecting sales revenue. The study used multiple regression and item response theory or grade response models with Stata 15 to run and predict factors affecting sales revenue of Ethiotelecom. The model showed that the coefficient of determination of independent variables used in the study explained factors affecting sales revenue of WAAZ Ethiotelecom shops by 94.59% and the remaining 5.41% was explained by other variables or factors not included in the study. In this study, item response theory of grade response models displayed p-vale less than 5% that the independent variables have significantly affecting the sales revenue of WAAZ Ethiotelecom shops. In other way, item response theory of independent variable z-value greater than or equal two have determining effect on sales revenue of Ethiotelecom. The study showed that there was the Pearson correlation among variables at significance level of 10%. The study showed factors affecting the sales revenue of Ethio-telecom were number of subscribers, sales transactions, salespersons and others. So, to improve and develop the sales revenue of the company should have to increase number of voice buyers, internet subscribers, number of sales transactions, numbers of salespersons, supply and demand for sales activities in each shops, improve any skill gaps of sales persons , reduce system irregular problem, respond to price elasticities of customers, improve new technology use, amend selling policy, adapted to organizational factors and government political effects on Ethiotelecom working live