Determinants of Beer Brand Preference: The Case of Addis Ababa Beer Market
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Date
2014-05
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Addis Ababa University
Abstract
In recent years the competitiveness in Ethiopian beer industry has enormously increased specially after the privatization of government breweries to international well recognized breweries. Despite of room for growth and additional breweries are underway to join the industry, currently breweries are spending a large sum of money to attract consumers in using their brand. Understanding brand preference contributes in building strong brands and building long term relationship with consumers. This study analyzes the determinants of beer brand preference.
Different literatures have been used in discussing the concept and to identify major factors that affect consumer brand preference. Consumer perceptions of sought benefits: emotional value, perceived quality, price, social benefits and situational variations are found to be important variables that determine brand preference. Questionnaires were distributed to sample respondents using multiple stage cluster sampling and Arada, Kirkos and N/Laft sub-cities were selected using random sampling. From each sub-city sample respondents are taken and results were put through different methods of data analysis. Descriptive statistics, factor analysis and multiple regressions were used in this study.
Based on the analysis most consumers prefer St. George beer followed by Dashen and Bedele Special. It also found out that preference for beer brand does not vary with demographic. Preference and determinants of preference are consistent over different demographic groups. Emotional variation, perceived quality and situational variations are found out to be significant determinants of beer brand preference while price and normative influence are found to be insignificant in determining brand preference. Breweries should focus on distinctively positioning their brand from other breweries, able to identify its brand with different event and social groups and segment their market on behavioral segmentation methods rather than demographics.
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Keywords
Ethiopian beer industry, brands, long term relationship with consumers