A study of the relationship between consumers’ characteristics and purchases of branded maize flour: the case of Kampala, Uganda

Abstract

Maize is one of the essential food crops in Uganda. This paper aims to examine the consumer preference for branded maize flour in urban Uganda and inform branded maize flour suppliers of the findings. The study empirically examines how the purchase of branded maize flour is influenced by consumer characteristics using survey data and a binary logit model. The survey was conducted in Kampala in October 2014. The dependent variable is the purchase of branded maize flour. Independent variables are monthly individual income, family size, gender, age, education, and quantity of purchase. The study reveals that almost half of respondents purchased branded maize flour. The results suggest that education and purchased quantity are positively and significantly related to the probability of purchasing branded maize flour. Also, the study found that gender affected the probability of purchasing branded maize flour. The probability of respondents with a college education or higher purchasing branded maize flour is 16% higher than respondents with less than a college education, holding other independent variables constant. The probability of purchasing branded maize flour is 28% greater for consumers who purchase 6 kg to 21 kg of flour compared to consumers who purchase less than 6 kg. The probability of purchasing branded maize flour is 12% greater for female consumers than for male consumers, keeping other variables constant. A clear influence of individual monthly income on the probability of purchasing branded maize flour could not be deduced in this study. Based on these results, it is recommended that suppliers of branded maize flour products in Kampala City, Uganda target female consumers, highly educated, and purchase 6-21kg of maize flour at one time. It would be recommended that further research investigates how price and aggregate household income influence purchase for branded maize flour. The study provides insight into the effect of consumer socioeconomic characteristics on branded maize preferences in the East African region.

Keywords: Logit Model, Maize, Branded Maize Flour, Uganda, Maganjo, Consumer Preference