| Abstract: | In every product category, consumers have more choices, more information and higher
expectations than ever before. To move consumer from trial to preference, brands need to
deliver on their value preposition, as well as dislodge someone else from the consumer’s
existing preference set. The title of the study is Determinants of consumer beer brand
preference in Ethiopia: a case study on Addis Ababa City beer consumers. Therefore; the
general objective of the study was to look at the determinants of consumer beer brand
preference in Ethiopia in case of Addis Ababa City beer consumers. Specifically to examine
the effects of consumers’ demographic characteristics, advertizing influence, reference
groups influence and consumers’ situational variation on beer brand preference. The
finding from the multinomial logistic regression revealed what factors determine the
probability attached to respondents beer brand preference. Accordingly; age, perceived beer
quality, perceived social benefit, situational influence and peer influence had positive sign
and significantly affect the probability of preferring St. George beer. Whereas; family size
had negative sign and significantly affect the probability of preferring St. George.
Moreover; advertisement, situational and peer influence had positive sign and significantly
affect the probability of preferring Habesha beer. Whereas family size had negative sign
and significantly affect the probability of preferring Habesha beer. Furthermore;
advertisement and situational influence had positive sign and significantly affect the
probability of preferring Walia beer. Whereas sex and marital status had negative sign and
significantly affect the probability of preferring Walia beer. Still there is untapped market
potential that producers should take such as a market segmentation strategy and design
their products in a manner that make the products appeal to different categories of
individuals that can influence of personal factors on customer satisfaction. A
potentially successful strategy can be that which provides products that correspond to
and appreciate customers’ social status and age. It is also advised that any advertisement
for beer brands should convey information about the advantages which the brand being
advertised would offer over other brands. Moreover; situational influence was found to be
significantly relevant to brand preference of beer, producers should in their advertisement
emphasis social groups through segmenting the market into distinctive social classes |
