Determinants Of Consumer's Preference Towards Convenience Consumer Goods: The Case Of Addis Ababa, Ethiopia

Abstract

Every customer in the market has his/her own brand preference. Customers consider certain attributes before purchasing products. The objective of this study was to identify the underlying determinants of consumer preference toward Convenience Consumer Goods (CCG) in Addis Ababa. A sample of 204 consumers was selected using probability sampling technique. The selection of the products was made through the consideration of the major subcategories in CCG which are branded and packaged food and beverages and Personal Care products. It was hypothesized in this study that product quality, price, availability, advertisement and brand awareness significantly influence consumer preferences in Addis Ababa. The data was collected through structured questionnaires from consumer of products and analyzed by using descriptive and econometrics by ordered logistic regression techniques and the value of each variable measured by odd ratio to analyze the data and accomplish at its findings. Moreover, the study finding shows that, there was the general support for the hypothesis significant positive contribution of all the independent variables on determinants of consumer preferences on convenience consumer good. It was distinguished a few differences in the set of variables considered during consumer preferences between the sub-categories of CCG, supporting the conclusion that category-specific tendency of consumer preference or exists in any market other than the argument that all of CCG is the same. This study was only restricted to the list of variables and product categories discussed above with a focus on Addis Ababa. Furthermore the result of the study shows that quality of products, perceived price and availability of products provides the key factors influencing the supply and demand for products and insufficient to meet customer needs. In order to meet the growing demands and supply of consumers, it is advised that the Ethiopian government encourage and stabilize policy and strategies for both investor and marketers.