Price Volatility Management of Urban Primary Consumer Cooperatives: A Correlation Analysis

Abstract

This study investigates the factors influencing urban primary consumer cooperatives' management of price volatility of essential goods in Bahir Dar, Adama and Addis Ababa cities. Data was collected from 93 chairpersons and vice-chairpersons of these cooperatives. The study examines the relationship between management of price volatility, cooperative governance, supply chain management, financial access and capital constraint, technological innovations and digital tools, and regulatory and government support. Correlation analysis was employed to assess the strength of these relationships. The findings indicate that all the factors studied have a moderate to strong statistically significant correlation with the management of price volatility of essential goods in urban primary consumer cooperatives. This suggests that a comprehensive approach involving effective governance, efficient supply chain management, adequate financial resource and capital, technological and digital tools adoption, and supportive regulatory and government policies are crucial for urban primary consumer cooperatives to mitigate the impact of price volatility on their members and communities.

Key words: Consumer cooperative; Price volatility; Governance; supply chain; finance; technology; digital tools; regulatory and government support

DOI: 10.7176/RJFA/16-1-03

Publication date: January 30th 2025