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Factors affecting consumer purchase behavior of local products
Abstract
Tanzanians are now enjoying a myriad of products to buy at their purchasing power disposal compared to the years prior to trade liberalization in the 1980s. This article identifies and examines key factors affecting consumer purchase behavior of local products for enhancing Small and Medium-sized Enterprises (SMEs) development in Tanzania. It also explores the influence of social, psychological, and marketing factors for local products purchase. Nonprobability sampling technique with purposive (judgment) sample was used for the study with a sample size of 150 respondents. The study was limited to the respondents within ‘working age’, that is, 15 to 64 years old in Nyamagana district, Mwanza, Tanzania, specifically on local garments consumption. Descriptive statistics was used to analyze the data. The study reveals that marketing factors are significant for consumer purchase decision of local products, and that the reference groups to which individuals belong affect their product choices and preferences as far as local products are concerned.
Keywords: Local products, consumer behavior, working age, reference groups, SMEs development
