Factors Influencing Customers' Purchasing Decisions in the Case of Addis Ababa Automobile Buyers
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Date
2025-03-14
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AAU
Abstract
Understanding consumer purchasing behavior is essential for businesses operating in the
automotive sector, particularly in dynamic and evolving markets like Addis Ababa. This study
examines the key factors influencing automobile purchasing decisions among consumers in Addis
Ababa by analyzing variables such as brand image, broker influence, vehicle resale value, price
and affordability, and operating costs. A descriptive and explanatory research design was
employed to analyze both the characteristics of consumer behavior and the relationships among
key factors. The study adopted a quantitative research methodology, utilizing structured
questionnaires to collect primary data from 384 respondents selected through a convenience
sampling technique. Secondary data were gathered from academic journals, market reports, and
prior research studies. The collected data were analyzed using SPSS software, employing
correlation and regression analyses to examine relationships between the variables and test
hypotheses. The study’s findings reveal that brand image plays a significant role in shaping
consumer preferences, with well-established brands fostering greater trust and perceived
reliability. Price and affordability emerged as crucial determinants, as financial constraints and
budget considerations heavily influence purchasing decisions. Additionally, brokers significantly
impact the decision-making process by providing market information, negotiating deals, and
influencing consumer perceptions sometimes leading to biases. Vehicle resale value was also
found to be an important factor, as buyers consider the long-term financial implications of their
purchase. Furthermore, operating costs, including fuel expenses and maintenance, influence
consumer choices, with a preference for cost-efficient vehicles. The study highlights the unique
economic and social dynamics affecting the automobile market in Addis Ababa and provides
valuable insights for industry stakeholders, including automobile dealers, marketers, and
policymakers. The findings contribute to the existing body of knowledge on consumer behavior
and offer strategic recommendations to enhance transparency, market efficiency, and customer
satisfaction in Ethiopia’s automotive industry