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The Factors Affecting Customers Attitude Towards Domestically Produced Goods and Their Economic Implications: Evidence from Addis Ababa, Merkato

Received: 19 April 2022     Accepted: 17 May 2022     Published: 31 May 2022
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Abstract

The study was conducted on the factor affecting customer’s attitude towards domestically produced goods and their economic implication in Addis Ababa the case of merkato. The general objective of the study was to assess the facto affecting customer attitudes towards domestically produced goods and their economic implication in the studied area. This paper was used non-probabilistic sampling methods of judgmental/purposive sampling technique on the sample size of 450 respondents. The reason for use of judgmental sampling technique was due to the objectives which were intended to identify attitude of customers towards shoe and cloth with domestic origin. In order to achieve the objectives, both primary and secondary source of data was used. This study was used both descriptive and econometric method of data analysis. In descriptive analysis the study was use table, percentage, frequency and figure. In econometric analysis this study used logit model because dependent variable of this study is qualitative or dummy. The result obtained from descriptive analysis indicates that the attitudes of customers towards domestically produced good were pessimistic. Their perception mainly affected negatively on products attributes such as quality, price, fashion ability/style, and durability. According to the econometrics analysis, all independent variable are positive sign, based on the logit model estimated result, quality of product, attractiveness of product and social states of product are statistically significant at 10 % level of significance. R-squared of this study is 0.756836. This implies that 75.68 % of the customer attitude of domestic is explained by the selected explanatory variables. The economic implication of such attitude will be greater on trade balance and performance of domestic industries which are producing those products.

Published in International Journal of Business and Economics Research (Volume 11, Issue 3)
DOI 10.11648/j.ijber.20221103.12
Page(s) 109-116
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

Customers’ Attitude, Logit Model, Marginal Error, Domestic Products

References
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[2] Brands. 2nd International Conference On Social Science And Humanity. IACSIT Press, Singapore, 2012.
[3] David Jebblep, (1998) Principle And Practice Of Marketing, 2nd Edition, Mcgraw Publish In Company.
[4] De Mooij, M. Consumer Behaviour And Culture. Thousand Oaks: Sage, 2004.
[5] Gujarati, N. D. Basic Econometrics. 4th Ed. Mcgraw-Hill Companies, 2004.
[6] Greene, W. H. Econometric Analysis. 4th Ed. New Jersey: Prentice-Hall, 2003.
[7] James A. O Brien (2004) Management Information System 6th Edition Mcgraw Published Company London.
[8] London. J. Paul Petri And James H. Donnesly, JR (2004) 7th Edition Marketing Management Knowledge And Skill Mcgraw Full Published Company London.
[9] Michael J. Baker 3rd Edition (1998) Macmillan Dictionary Of Market And Advocate.
[10] Michael J. Solomon (2002) Consumer Behavior 5th Edition.
[11] Philip Kottler And Kelvin (2004) Marketing Management 10th Edition New Delhi Prentichophillip Kottler And Kevailant (1997) Marketing Management 7th Edition New Del Published Hall Of India.
[12] R. Zinkot 2 (1998) International Marketing 5th Edition And Textile.
[13] Rostami. Leslie W. Rue, (2005) Consumer Behavior 5th Edition Mcgraw Full Published Company.
[14] William D. Perrault, Jr, (2004) International Market 5th Edition.
[15] William D. Perreault And Jr, E. Jerome (2004) Managerial Approach Mccarthy Full Published Company London.
[16] Zeenat Ismail, Sarah Masood And Zainab Mehmood Tawab. Factors Affecting Consumer Preference Of International Brands Over Local.
[17] Zeithaml, V. A., Berry, L. L. And Parasuraman, A. The Behavioural Consequences Of Service Quality”, Journal Of Marketing, 1996.
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  • APA Style

    Assefa Belay. (2022). The Factors Affecting Customers Attitude Towards Domestically Produced Goods and Their Economic Implications: Evidence from Addis Ababa, Merkato. International Journal of Business and Economics Research, 11(3), 109-116. https://doi.org/10.11648/j.ijber.20221103.12

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    ACS Style

    Assefa Belay. The Factors Affecting Customers Attitude Towards Domestically Produced Goods and Their Economic Implications: Evidence from Addis Ababa, Merkato. Int. J. Bus. Econ. Res. 2022, 11(3), 109-116. doi: 10.11648/j.ijber.20221103.12

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    AMA Style

    Assefa Belay. The Factors Affecting Customers Attitude Towards Domestically Produced Goods and Their Economic Implications: Evidence from Addis Ababa, Merkato. Int J Bus Econ Res. 2022;11(3):109-116. doi: 10.11648/j.ijber.20221103.12

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  • @article{10.11648/j.ijber.20221103.12,
      author = {Assefa Belay},
      title = {The Factors Affecting Customers Attitude Towards Domestically Produced Goods and Their Economic Implications: Evidence from Addis Ababa, Merkato},
      journal = {International Journal of Business and Economics Research},
      volume = {11},
      number = {3},
      pages = {109-116},
      doi = {10.11648/j.ijber.20221103.12},
      url = {https://doi.org/10.11648/j.ijber.20221103.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20221103.12},
      abstract = {The study was conducted on the factor affecting customer’s attitude towards domestically produced goods and their economic implication in Addis Ababa the case of merkato. The general objective of the study was to assess the facto affecting customer attitudes towards domestically produced goods and their economic implication in the studied area. This paper was used non-probabilistic sampling methods of judgmental/purposive sampling technique on the sample size of 450 respondents. The reason for use of judgmental sampling technique was due to the objectives which were intended to identify attitude of customers towards shoe and cloth with domestic origin. In order to achieve the objectives, both primary and secondary source of data was used. This study was used both descriptive and econometric method of data analysis. In descriptive analysis the study was use table, percentage, frequency and figure. In econometric analysis this study used logit model because dependent variable of this study is qualitative or dummy. The result obtained from descriptive analysis indicates that the attitudes of customers towards domestically produced good were pessimistic. Their perception mainly affected negatively on products attributes such as quality, price, fashion ability/style, and durability. According to the econometrics analysis, all independent variable are positive sign, based on the logit model estimated result, quality of product, attractiveness of product and social states of product are statistically significant at 10 % level of significance. R-squared of this study is 0.756836. This implies that 75.68 % of the customer attitude of domestic is explained by the selected explanatory variables. The economic implication of such attitude will be greater on trade balance and performance of domestic industries which are producing those products.},
     year = {2022}
    }
    

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  • TY  - JOUR
    T1  - The Factors Affecting Customers Attitude Towards Domestically Produced Goods and Their Economic Implications: Evidence from Addis Ababa, Merkato
    AU  - Assefa Belay
    Y1  - 2022/05/31
    PY  - 2022
    N1  - https://doi.org/10.11648/j.ijber.20221103.12
    DO  - 10.11648/j.ijber.20221103.12
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    JF  - International Journal of Business and Economics Research
    JO  - International Journal of Business and Economics Research
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    PB  - Science Publishing Group
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    AB  - The study was conducted on the factor affecting customer’s attitude towards domestically produced goods and their economic implication in Addis Ababa the case of merkato. The general objective of the study was to assess the facto affecting customer attitudes towards domestically produced goods and their economic implication in the studied area. This paper was used non-probabilistic sampling methods of judgmental/purposive sampling technique on the sample size of 450 respondents. The reason for use of judgmental sampling technique was due to the objectives which were intended to identify attitude of customers towards shoe and cloth with domestic origin. In order to achieve the objectives, both primary and secondary source of data was used. This study was used both descriptive and econometric method of data analysis. In descriptive analysis the study was use table, percentage, frequency and figure. In econometric analysis this study used logit model because dependent variable of this study is qualitative or dummy. The result obtained from descriptive analysis indicates that the attitudes of customers towards domestically produced good were pessimistic. Their perception mainly affected negatively on products attributes such as quality, price, fashion ability/style, and durability. According to the econometrics analysis, all independent variable are positive sign, based on the logit model estimated result, quality of product, attractiveness of product and social states of product are statistically significant at 10 % level of significance. R-squared of this study is 0.756836. This implies that 75.68 % of the customer attitude of domestic is explained by the selected explanatory variables. The economic implication of such attitude will be greater on trade balance and performance of domestic industries which are producing those products.
    VL  - 11
    IS  - 3
    ER  - 

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Author Information
  • Department of Economics, St. Mary’s University, Addis Ababa, Ethiopia

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