Effect of Product Differentiation on Sales Performance: The Case of Horizon Addis Tire Manufacturing Plc

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Addis Ababa University


Designing and implementing an effective diversification strategy to leverage computation is a top priority for many companies. The very purpose of the study was to investigate the effects of product differentiation strategy dimensions (product quality and product variety) with contributory roles of guarantee and after sales service on sales performance of the case company. The study used questionnaire dispatched to HATMPLC’s managers, senior experts, distributors and key business customers’ placed in Addis Ababa, as a method to collect primary data. It used quantitative research analysis method. A sample of 76 respondents selected using purposive sampling technique. The collected data was analyzed using descriptive statistics tools of frequency, mean, standard deviation and tabulationion and regression. The research finding is significant to those organizations who are engaged in the operation of unique PDS to enhance sales performance. The findings show, product quality, product variety and after sales services have positive significance to sales performance whereas, product guarantee have no significance. Therefore, the tire industries exploit the competitive advantage generated from the practicing of product differentiation strategy to enhance their sales performance.



Product Differentiation, Product Quality, Product Variety