PRACTICES AND CHALLENGES OF MARKETING IN THE ETHIOPIAN COMMODITY EXCHANGE: THE CASE OF E-TRADE AT THE HEAD OFFICE

Abstract

The purpose of this study was an assessment of marketing practices of Ethiopia commodity exchange (ECX).The study used mixed research method basically purposive sampling for qualitative approach and simple descriptive statistics for quantitative one. The research found and observed that e-trade marketing in Ethiopia has never yet been developed. But with the start of ECX it has a remarkable progress in the Ethiopian market. A survey questionnaire was prepared to gather primary data, secondary data from the books and documents of the ECX, and other sources were also wont to augment the first data. The result shows that there have been Internet problems, biased sampling system and lack of adequate knowledge were the main challenges the researcher observed limited membership seat, membership seat fee, and occupation were found to be highly significant with the selection of membership category. Aside from this, consistent with the descriptive analysis lack of sampling system, higher penalty cost, higher membership seat fee, and transaction cost, were found to be a number of the constraints that hinder participants from the graceful functioning of transactions within the exchange. The researcher recommended the subsequent points the Internet system of the exchange was inefficient and practically affect E-trading activities. For the upper Etrading of the exchange, it should apply in enough, and proper network facilities should provide a higher concern and commitment in effectively and efficiently using ICT. The electronic trading system reduced price movement, it might cause lower volatility, lower risk within the market, and better liquidity by increasing the speed of transactions and lowering transaction costs, limiting informational asymmetries between trading interests, and increasing access to markets no matter one's geographical location.