Economic Factors Affecting Consumer Purchasing Decisions in the Kenya Motor Industry

Abstract

This study aimed at establishing the economic factors affecting consumer purchasing decisions in the Kenya motor industry The independent research variables were motor vehicle cost, consumer income level and consumer credit access. The dependent variable was consumer purchasing behavior. The main research question was whether economic factors affect the consumer purchasing decisions in the Kenya motor industry. Using descriptive research design, correlational analysis and primary data that was centered on a target population of 92,157 buyers of the 107,499 cars that got new registration numbers in Kenya in the year 2021, the study adopted a sample size of 398 respondents as derived from the Solvin’s formula through whom the questionnaires were distributed. The study findings reveal concluded a statistically significant strong negative relationship between motor vehicle cost on consumer purchasing decisions. The study also concludes that both consumer income and credit access has a statistically significant positive relationship on consumer purchasing decision.

Keywords: economic factors, consumer purchase decisions, motor industry in Kenya

DOI: 10.7176/JESD/15-2-03

Publication date: January 31^st 2024