The Effect of Marketing Mix on Consumer Buying Behaviour of Micro and Small Enterprise in Nekemte City, Oromia, Ethiopia

Abstract

Abstract The purpose of this study was to investigate the effect of marketing mix on consumer buying behavior of MSEs; the case of Nekemte city administration. To achieve study objective, descriptive and explanatory research design were used combined with qualitative and quantitative research approach. The study was delimited to proportionate convenience and judgmental sampling techniques. The data was collected using a semi-structured questionnaire which has been developed and distributed to a sample of 384 consumers of micro and small-scale enterprises (MSEs) in the Nekemte city. The collected data were analyzed by using both descriptive and inferential analysis techniques. The findings have shown that the mean score of marketing variables i. e.4p’s inclined to agreement level. All independent variables, marketing mix elements have the significant correlation with the dependent variable, consumer buying behavior of micro and small-scale enterprises (MSEs). In this case, relatively product had a higher strong relationship with consumer buying behavior. The results also revealed that these independent variables jointly explained Adjusted R square is 0.82.1 of the variance in micro and small-scale enterprises (MSEs) consumer buying behavior. This summary shows that about 82.1% of the variance in the consumer buying behavior was explained by the independent variables (4p’s), and the ANOVA results shows, it is possible to see the overall significance of the model. Likewise, the empirical findings of the simultaneously by multiple regressions indicated that, three of the predictor variables: product, place, and promotion, have a positive and statistically significant effect on the consumer buying behavior of micro and small-scale enterprises (MSEs). But price have negative and significant effect on consumer buying behavior. Finally, the study recommended that micro and small-scale enterprises (MSEs) should produce quality products, charge competitive prices, promote products/services appropriately, and pay attention to enterprises locations.