Determinants Of Consumer Cooperative In Market Price Stability The Case Of Kolfe Sub-City, Addis Ababa, Ethiopia

Abstract

This research was conducted to assess the determinants of consumer cooperativeness in market price stability in the case of Kolfe Sub-City, Addis Ababa, Ethiopia. The researcher used both primary and secondary data sources. The samples were selected from 23 consumer cooperatives in Kolfe Subcity by using stratified and simple random sampling techniques based on the volume of business transactions that the consumer cooperatives have. Data was collected through semi-structured questionnaires and interviews. The collected data were analyzed through descriptive and binary logistic regression to elicit meaningful information. The study revealed that society has a significant role in stabilizing market prices by selling very important commodities to the user at a fair price as compared to the open market. The pricing policy that the consumer cooperative used was a cost-based pricing rule rather than a pricing strategy that regulators used to set prices for its products or services. A price difference was observed in selected commodities that the consumer cooperative sells in their shop as compared to the open market. External and internal factors affect the price setting of the consumer cooperative. The price difference between consumer cooperatives and the open market has a significant value, which is likely to be a meaningful addition to our model that changes the predictor's value. Independent variables explain 33.3% of the variation in price stability in the consumer cooperative market. The overall accuracy rate was very good, at 84.2%. The model exhibits good sensitivity since consumer cooperatives have a role in market price stability; 90.3% were correctly predicted to choose consumer cooperatives to have an effect on market price stability. Consumer Cooperative society has a significant role in stabilizing prices in the market. Even though they play a crucial role in society’s economy and provide consumer goods to society at reasonable prices, societies suffer from different problems that hinder their activity. Management of consumer cooperatives should pay special attention to the quality of goods supplied and their relative prices to satisfy consumers effectively, rather than competing with private markets