Consumer Buying Behavior of Locally Assembled Private Vehicles in Addis Ababa

Abstract

The aim of the study was to describe consumer’s buying behavior of locally assembled private vehicles in the city of Addis Ababa. Thus, it identifies the most important factors which influence consumer’s vehicle buying behavior in Ethiopia. A mixed approach was applied together with survey to collect data from 200 locally assembled private vehicle consumers. The finding shows that the resale-value was ranked as the most important vehicle purchase parameter and friends and family members were the most widely used information sources to purchase cars. Further, except price, the rest dimension had positive correlation with buying behavior. Among all independent variables product quality had the highest strong and positive relationship with buying behavior (r=.699) followed by After-sales Service (r=.679), Information Search (r=.610) and Brand Image (r=573).

Keywords: Buying Behavior, Product Quality, Price, Re-sale value.