Determinants Of Consumer Behavior Towards Purchasing Locally Manufactured Products: The Case Of Ambo University

Abstract

The aim of this study was to identify the key determinants of consumer behavior towards purchasing locally manufactured products. The study was designed to conduct in descriptive and explanatory research design. Data was collected by self-administered structured questionnaire from Ambo University academic and administrative staffs. The study employed both simple random sampling and stratifies probability sampling techniques. The sample size for the study was calculated based on Yamane’s formula from a total population of (N=4735), a sample size of (n= 400) were selected. Totally 329 questionnaires were properly filled and returned for analysis showing 82.25% response rate. The collected questionnaires were loaded in Excel and imported in to STATA software and descriptive and inferential (binary logistic regressions) analyses were employed to analyze the data’s. The result of the study revealed that seven input variables(Brand Related Factors (BRF), Perceived Behavioral Control (PBC), Cultural Factors (CUF), Personal Factors (PRF), Religious Level (REF), Psychological Factors (PHF), Economic factors (EF) accounted for 42.42% of the variation in purchasing behavior and the rest 57.58% are unidentified variables by this study. The findings of the correlation result indicated that purchasing behavior has positive relationship with Perceived Behavioral Control (PBC), Religious Level (REF), personal factor (PRF), Psychological Factors (PHF) and Economic factors (EF) and cultural factor (CUF). But the result indicated that brand related factor has negative relationship with purchasing behavior. This study recommends that manufacturers and the concerned bodies should exert their effort to these key determinant factors to improve the consumers’ behavior towards purchasing locally manufactured products. Cultural factors, Psychological Factors, Religious Level, economic Factors and Perceived Behavioral significantly and positively affect consumers purchasing behavior while Brand Related Factors and Personal Factor have negative effect on consumers purchasing behavior. Thus, manufacturers and concerned bodies shall give due emphasis to factors mentioned above