FACTORS AFFECTING BUYING BEHAVIOR OF CUSTOMERS: THE CASE OF CAR MARKET IN ADDIS ABABA

Abstract

Consumers make their buying decision to create cost and time savings benefits at the expense of various risks. The general objective of this study is to investigate the factors that influencing consumers buying decisions in car market in Addis Ababa. Using descriptive and explanatory research methods, this study found that most of the consumers collect pre-purchase information more than two times, contact/visit the dealers repeatedly, exhibited various color preference and they are price sensitive to buy a car. The study found that A.A car market can be demonstrated as unfaithful market within lowest mean and consumers highly prefer to convenience. Most of the consumers need cars that express their way of life, product variety and they are fascinated by product image like Toyota and BMW. Besides, there is a positive and significant relationship between trust, life style, product variety, convenience, and product image and consumer behavior by correlation analysis. Further, there is a positive and significant effect of trust, life style, product variety, convenient and product image on consumer behavior using binary regression model. Finally, using chi-square decision rule, the result revealed there is no difference between female and male consumers buying decisions in car market in Addis Ababa. The study that shows to females and males has the same need structures and decision models when shopping cars in A.A. Consumer behavior is based on the act of individuals who make decision to spend their available resource (money, time& effort) on consumption of related item. As trust has positive influence on consumers` buying behavior, Ethiopian car market should be restructure based on stakeholder value and marketers build trust which can lead to increase consensus for the strengthen of the business and ensure to be engage in the process.