Determinants of Consumer Preferences for Imported and Domestic Wooden Furniture: Lessons from Addis Ababa, Ethiopia

Abstract

Abstract Currently, domestic wood product enterprises in Ethiopia are facing increasing competition from imports. Therefore, more needs to be done to address the evolving dynamics in public preference and taste while overcoming the pressure from the import market. However, the wooden furniture sector in Ethiopia is scarcely researched and documented to support the production and marketing system. This study investigated the determinants of consumer preferences for imported and domestic wooden furniture in Addis Ababa, Ethiopia. Multistage sampling was used to select a sample size of 385 consumers who had purchased wooden furniture. Data were collected using a structured questionnaire and analyzed through descriptive statistics, Kendall’s test, and the multivariate probit (MVP) model. The findings revealed that imported wooden furniture scored higher in terms of finishing, color, compatibility with other objects, and design, whereas domestic wooden furniture excelled in terms of durability, environmental friendliness, maintainability, and affordability. The MVP results indicated that wooden furniture preference was influenced by factors such as age, number of years in marriage, family size, number of years living in the city, occupation, and exposure to advertisements. The study recommends that domestic furniture companies enhance the finishing, design, color, and other desirable attributes of their products to attract and satisfy domestic demand, potentially reducing the need for imports. By focusing on improving multiple attributes, companies better cater to the preferences of consumers. Additionally, furniture companies should consider the diverse socioeconomic characteristics of consumers during the production of their furniture products to meet a range of needs.