Factors Affecting Consumers’ Purchase Decision of locally Assembled Automobiles in Addis Ababa: The Case of Lifan Motors Automobile
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Date
2018-06-17
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Addis Ababa University
Abstract
It is very crucial for every automobile company and all stake holder of the industry to have
deeper understanding regarding the factors that influence the purchasing behavior of consumers
towards the product they offer. The purpose of this paper is to examine the influence of the
factors on customers purchase decision making towards locally assembled Lifan automobiles in
Addis Ababa. The study used quantitative research approach and structured questionnaire was
employed. The hypotheses were also tested on a sample of 353 customers distributed, giving
valid response rate of 94.2% percent. The response of questionnaires was analyzed using
CronbachAlpha, descriptive statistics, correlation & multiple regressions. The application used to
analyze and examine the hypotheses was the Statistical Package for Social Sciences (SPSS)
V.20. The finding showed all independent variables(product attribute, brand image ,after sales
service, price factor and external factor have a significant correlation with the dependent
variable “consumer purchase decision making” with 95% confidence interval & at 0.05 p-value,
by scoring a Pearson Correlation Coefficient “R-value” value of .497**,
.562**,.419**,.507**,.561** respectively. In this case relatively brand image had a higher
strong relationship with consumer purchase decision than the other four independent variables &
the linear combination of (independent variables).The R2 explains 54.1% of the variance in
customers’ purchases decision. In addition to correlation analysis, further regression analysis was
also conducted and the result indicates that all independent variables have significant relation
with consumer purchase decision. Finally, as evident from the finding section recommendations
were forwarded to lifan Motors Company to focus on building brand image, improving product
attribute, excelling the after sales service, and implementing competitive price to capitalize the
market opportunity
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Keywords
Consumer Behavior, Purchase intention,, Purchase decision