FACTORS AFFECTING EFFECTIVENESS OF CONSUMER PRODUCTS DISTRIBUTION: IN CASE OF ETHIOPIAN TRADING BUSINESS CORPORATION

Abstract

Market stability is fundamental issue for government and society. Market is instable when price of goods are inflated and scarce of commodity supplies are occurred. It is a challenge for Ethiopian government and the society. Government of Ethiopia implemented many regulation mechanisms to tackle the problems. Furthermore the government engaged in consumer product market distribution business through its enterprise, Ethiopian Trading Business Corporation. However the challenge continues. The central focus of this study is identifying major factors that affect consumer product distribution business effectiveness of ETBC in achieving its objective market stability. This research is a casual research tried to identify factors affecting ETBC Consumer product distribution business. Major variable studied in this research are market research, Stock of demanded commodities, price of corporation goods, financial capability and distribution centers performance. The study made by collecting data from sampled employees of ETBC consumer product trading business unit. The data is collected through closed questionnaires and analyzed using SPSS (25 ver.) Descriptive statistics, correlation analysis and regression analysis are applied to the collected data. Findings show that independent variables financial capacity, price of corporation goods, and stock of demanded goods are among the independent variables that affect significantly the dependent variable effectiveness of consumer product distribution of ETBC to meet its objective consumer product market stability. The corporation should design price, finance, and inventory strategies to improve its effectiveness in consumer products distribution.