Factors Affecting Consumer Buying Decision on Organic Foods. (In The case of Knorr Shiro produce by Unilever Manufacturing plc
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Date
2024-09
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Addis Ababa University
Abstract
This study examines the factors affecting consumer buying decisions on organic foods, in the case of Knorr Shiro produced by Unilever Ethiopia Manufacturing PLC. The research identifies key variables, including price, taste, brand image, health consciousness, and distribution, and assesses their impact on consumer behavior. Data was collected from a sample of Knorr Shiro consumers with sample size 295, revealing that all five factors significantly affect purchasing decisions. Price with coefficient of (-0.459) is the only factor that have a strong negative or inverse relationship with buying decision, which leads to considering a competitive pricing strategy to increase buying decision of the product. Distribution (0.218) was found to be the most positive influential, highlighting the importance of distribution strategies. Next to distribution Brand Image (0.163) and health consciousness (0.150) also emerged as critical factors, suggesting the need for building a strong brand reputation and clear communication of health benefits of the product. Additionally, improving taste (0.147) of the product were recommended. The study provides actionable insights for Unilever Ethiopia to bolster its market position and drive sales growth by addressing these key determinants of consumer buying decision.
Keywords: Price, Taste, Brand image, Health consciousness and Distribution, Consumer buying decision.