The Effect of Marketing Mix on Consumer Buying Behavior of Small and Medium Enterprises (SMEs) in Addis Ababa. (The case of Lideta,Kolfe-Keraniyo and Arada Sub Cities)
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Date
2019-01
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Addis Ababa University
Abstract
This paper deals with analysis of marketing mix component and consumer buying behavior. The
purpose of the study was to find out The Effect of Marketing Mix on Consumer Buying Behavior
of Small and Medium Enterprises (SMEs) in Addis Ababa (The case of Lideta, Kolfe-Keraniyo
and Arada Sub Cities. Accordingly, the research models were composed of four independent
variables such as product, price, place and promotion while there is one dependent variable
which is consumer buying behavior. Furthermore hypotheses were developed to shown the effect
of all the independent variables of marketing mix on the dependent variable of consumer buying
behavior. To this end, a structured 5-point Likert scale close ended questionnaire based survey
was employed to collect data. By using probability sampling technique from the consumer of
three selected sub cities found in Addis Ababa, more specifically 400 questionnaires were
distributed and 372 (93 %) were returned back for analysis. The correlation analysis was
illustrated to examine the relationship between those variables and effects of the factors was
reported and analyzed by using multiples liner regression. Descriptive statistics also conducted
in the research through the aid of Statistical Package for Social Science version 24 (SPSS). The
findings of the study revealed that among the independent variables of product significantly
affect consumer buying behavior of SME in Lideta ,Kolfe keraniyo and Arada sub city .
Concerning to price the beta value as well as the p-value told that those factors has no a
positively and significantly affect consumer buying behavior of SME in Lideta ,Kolfe keraniyo
and Arada sub city. Another promising finding was also told that place is considered as a factor
and which positively and significantly affect consumer buying behavior. The last independent
factors promotion has also a positively and significantly affect the consumer buying behavior of
SME of those previously mentioned sub cities. Based on the finding, the researcher tried to
forward a recommendation that government and other stakeholder should focus and working on
the above statistically significant factor in order to enhance and improve the enterprise activities
in the near future.
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Keywords
Consumer buying behavior, Product, Place