Final Report of Daniel The End 2

Department of Management
Faculty of Business and Economics

Addis Ababa University
Consumer's preferences for textiles:

A study of Distributors Opinion
By
Daniel Tsegaye
Addis Ababa
June, 2005
Consumer's
preferences for textiles: A study of Distributors Opinion
Consumer's preferences for textiles: A study of

Distributors Opinion
A senior Essay submitted to the Department of management,
Faculty of Business and Education, Addis Ababa University,

In partial fulfillment For the Requirements of Bachelor of Arts
In management
Addis Ababa University June, 2005

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Preface
This study reveals an idea that consumer behavior is a fascinating theme. It is on the
subject of people and the way people live. It is relating to consumers buying and
marketers selling. It is about the vital needs of consumers. It is about the benefits we
seek through our purchase decisions and the satisfactions we acquire through consuming
products and services.
For all these reasons, the study of consumers is indispensable. It plays a significant role
in our lives from knowing our needs, to providing simple, comfortable, and attractive
products. Moreover, it plays a crucial role in the economic condition of one country.
Since consumer purchasing is high, jobs are created and investments are encouraged.
Generally, it determines the success or failure of a particular firm.
To all of the stated importance, the study of consumer's preferences poses some
interesting questions. Like
 What consumers want?
 Why is individual attracted to one product but not to others
 Why do consumers spend frugally or more?
 How does advertising really work?
 Are Knowing consumers’ needs important? and more other questions.
Really, it is the wonderful mirror of an individual life.
Latest technologies, best and attractive products, lesser price products, and others many
benefits are a result of the study of the consumers need. It represents a dimension of
what is truly a fascinating field. Without doubt, the study is an exciting and challenging
subject.

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Acknowledgement
On the behalf of the study, I gratefully acknowledge the interest and co-operation of the
many national and international information offices, Known web sites, national textile
factories and distributors, shops, customers, respected instructors of AAU-FBE, my best
friends and my lovely families, whose valued assistance in updating the study and
providing pertinent information is greatly appreciated.
For all the days we have been together to develop this study, my best acknowledgement
goes particular indebtedness to Advisor Meron Kebed for her diligent work that enabled
me to complete this paper successfully. Her care instructions as well as deep reading of
the paper are the evidences of her finest works. Her assistance was great as not only an
advisor, but also care for me as a brother too. Hoping to her a best in her continues
endeavor.
To extend the warmest thanks to all the managers of distributors companies and
Ethiopian chamber of Commerce especial emphasis to Ato Henok Assefa (Assistant
general Secretary) and W/t Maramawit kifle (Information officer), with out them this
study would not have been successful and lively.
With bottomless value and remarkable price, I am highly indebted to my esteemed and
prized instructors Ato Andualem Tegegn and Dr. Madhavi for their all rounded,
resourceful, systematic and enriching support not only in the originating this paper but far
beyond my personal life.

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Tables of contents
Page Number
Preface 2
Acknowledgement 3
Tables of contents 4
List of tables and List of figures 5
Section I 1. Introduction 6
1.1 Background of the study 6
1.2 The statement of problem 7
1.3 Objective of the study 8
1.4 Significance of the study 9
1.5 Methodology of the study 9
1.6Sampling methods and procedures 10
1.7 Scope and limitations of the study 11
1.8 Study organization 11
1. Time schedule 12
Section II 2. Literature review
2.1Conceptual definitions of consumers 13
2.2 Market Segmentation and Customer Benefit 17
2.3 Customers, service, and satisfaction 19
2.4Consumer interest and distribution 26
Section III 3.Data Analysis and interpretation
3.1 Settings of the study 27
3.2 General overview of the study 32
3.3 Basic findings and data analysis 41
Section IV 4. Recapitulation of the study
4.1 Discussion summary 58
4.2 Study conclusion 59
4.3 Recommendation 64
Bibliography 66

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Appendix
Page Number
List of tables
Table 1.1Selected factories and distributor 10
Table 1.2 Project work time schedule 12
Table 3.1 the major outputs and annual production capacity 30
of the eight state owned textile factories
Table3.2 Qualities of the distributors 34
Table 3.3 Personal Profiles of Respondents 35
Table 3.4 Products and their nominal and unconscious benefit 43
Table 3.5 Respondents ‘opinion vs. purchase criteria. 46
Table 3.6 Textile demand among the regions 52
Table 3.7 Textile demand among the Cities 52
Table3.8 Ethiopian Family consumption decisions on textile 57
Table 4.1 Consumers Profile 59
Table 4.2 Consumers preferences to products,
price advertisement and distribution. 61
Table 4.3 family’s role in purchase Decision 61
Table 4.4 marketing mixes 62
Table 4.5 Grouping consumers in to meaningful buyer group 63
List of figure
Fig 3.1 Trade and distribution channels for
textile in Ethiopia (Tailored to the study) 39

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Section I
1. INTRODUCTION
1.1 Background
Paving the way to reach at the needed point of being developed country, it
is unquestionable task to use scarce resources of a nation effectively and efficiently. In
this regard, what it comes immediately to individual’s mind is the Ethiopia has to utilize
Agricultural product parallels to huge potentials of human resources. The miracle here is
that Agricultural products of our country are organic. It asks to contemplate in wise to use
and properly consume this treasury.
These efforts becoming on - going of practicing, all concerned bodies must put
their endeavors thought their activities.
Of many struggles and as we have high demand in domestic market as well as
getting different incentives from western countries like exempted of duty free and free
from all quota restrictions, the textile industry in the country is a very attractive
investment.
Morever, it plays a key role in the country’s economy. Ethiopia’s textile and
garment industry covers 105 of the gross valve production. The reputation of this sub
sector is accommodated 30% of the total work force employed by the industry sector.
However, the sub sector has urgent soluble problems. According to the document
prepared by Ethiopia Export Promotion Agency, solving this problem is a question of the
survival of the industry.
It says” to be competitive in international market as well as locally, fulfilling the
quality type, price and preferences requirements of the customer are the one and only
one. And to attain all these, enhancing the capacity of the sector is the necessity”. (Source:
Ethiopia Export Promotion Agency 2003)
Thus, an increasing amount of attention has recently been given to the textile
industry by government. The attractive incentives include an income tax holiday for a
period of five to six years and exemption from the payment of import custom duties and
many other considerations are given.

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Following to enhancing the capacity of the industry, it is necessary to investigate
the requirements of customers’ preferences to acquire an improved share in the globe
market. Due to this, this study has been selected.
With in the dramatic increase on the quality of consumer benefit, it will be a
crucial way to fulfill their entire needs: better quality and cheap price.
On top of this, the study will search the preferences of consumers to textiles. It is
about local consumers-what they purchase and why they purchase the way they do. It is
about marketing –how are local products compared to imported items. This will be
conducted throughout distributors’ opinions by survey method. Here, the distributors are
chosen because they are already serving customers with products. In the research,
privatization is holding true. Therefore, government distributors are kept out of the game.
1.2 Statement of the problem

Due to the textile products of our country are less quality compare to imported
goods of higher quality and cheap price, now days they are at a point of recession.
According to shama definitions, recession is a phenomenon of decreasing demand of raw
materials, products, and services. "(Shama, 1993:63) To solve this severe problem,
"recession requires marketing managers to modify their marketing strategy and action in
order to say both profitable and consumer responsive. This generally means adapting the
marketing mix and / or changing the target markets," (shama, 1993:63)
In addition to this, our companies are dependent on other firms or groups. This
dependency could involve obtaining resources, or the disposal of the firm's outputs. For
example, the firms highly depend on the incentives of western countries and Federal
Government. This idea, based on Bougand stamlchain called "vulnerability." It "refers to
the degree to which a firm is dependent on other firms, croups, or individuals. "They also
put the effect of this on their article. The company's vulnerability "can limit its ability to
formulate and implement strategies for prosperity and survival. "(Bougand stamlchain,
1988:38)
Based on the above two reasons, thus, this paper tries to concentrate on the
subsequent matters:

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• To what extent the marketing strategies shaped and reshaped according to the
consumer preferences in existing textile products.
• Do the target customers and the market mix need to redefine.
• To search the contemporary consumers needs and wants
• How does effective marketing take advantage of knowing consumer needs, and
contribute to increase of product demands.
• What attempts will be made to improve products to desirable in competitive
market?
• What are some of the decisive buying factors that lead consumers to experience
feelings of satisfaction and dissatisfaction?
• Are consumers (users) satisfied in the already existing textile products?
• What are the relevant requirements of consumers to meet their entire needs of
consumers?
• What do customers expect?
• What action can companies take in the light of consumer preferences?
• Is the distribution and marketing of textiles the most profitable of other industrial
products? (To assess the)
• Importance of textile for distributors, their capacity and profitability and
attractiveness of the sector?
• How do distributors act to stimulate customer interest in the product of their
suppliers?
1.3 Objective of the study
The foremost objective of the study is to examine and review consumers'
preferences for textiles. Based on this, target market can be easily well-formulated. It can
also produce a strong customer satisfaction. This is the best achievable aim to be the part
of the rapid world and to be competitive in open global market.
Moreover, the study has the following objectives:
-
- It helps to know the contemporary consumer needs and wants

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- To assess the level of participation of the consumers and distributors in the
identification, modifying, and improvement of products.
- To assess how the consumers and being interested to the benefit of the textile
industry.
- To see the future respects of the industry and treatments of consumers.
- To identify the major problems that are encountered in the textile products
related to users preferences and to recommend remedies to solve the problems
identified, if any.
1.4 Significance of the study
The primary beneficiaries of the study are not confined to textile companies and
distributors, but consumers. They are highly and original holder of a benefice on this
study.
A primary reason for studying consumer behavior is to make out bases for
effective segmentation. Thus, the study will play a key role to segment market. This idea
becomes strong based on stern and studivant on their article. They write "the first step
calls for researching what customers want from the buying process and then using their
preferences to group customers in to Market Segments. (Stern and studivant, 1987)
They also put what researchers can do on their best findings.
"Researchers can group these preferences in to market segmentation . . ."(Ibid)
As indicated, the ultimate significance of the study is to direct consumers needs to

market segmentation, which is one, are of marketing theory. On that, on over all
marketing strategy can be developed.
In addition to all of these, the study has the following connotations:
- Other researchers will have a chance to refer this material when they engaged in
similar study.
- Based on this study, our companies will have a chance to restructure their
company's marketing strategies to be competitive in global market.
1.5 Methodology of the study
The study will attempt to describe consumers’ preference in already existing
textile product. It gives answers to questions risings in statement of problem. It enables

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the testing of the results of sample. In short, the research is descriptive. Moreover, the
search will carry mainly based on questionnaire and becoming well built by interview
and observation. As the study is empirical research, the observations will be checked and
tested by collecting relevant data and information. At last, the research will come up with
conclusions. The maximum magnitude of the research will help for the managers in
decision-making.
1.6Sampling methods and procedures
The sample will be drawn from the eight textile factories, which the country has,
out of which the study will take three of the factories.
The sample frame, i.e., the listing of all distributors will be obtained from selected
plants. The site of the distributors will consist two distributors from each of the three
selected factories. This will bring the sample size to six.
The study will cover private distributors, which are engaged only in textile
market. The following table shows from where the selected distributors are taken.
Table 1.1 Selected Factories and Distributors

Almeda Textile factory Kombolcha Textile S.C AwassaTextile S.C
PLC
1 KK PLC. Matyas PLC Natnael PLC
2 Matad PLC Amaga PLC Negewo PLC
Data collection methods

The research has aimed to use both primary and secondary sources of data. As the
study requires primary data, to obtain the relevant information only the following
methods of data collection will use.
Depth interview of key informants

All concerned bodies will be helpful in order to develop this study. Before and after
collecting the data, the assurance of covering the core point is opted for one method. This
will help first to prepare questioner and to be trust the data secondly.

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Direct observation
Since the research involves consumers, direct visit of market places is important. In
addition, marketing departments of factories have targeted for different purpose in the
vein of preparation of questioners and to know more about distributors.
1.7 Scope and limitations of the study

The scope of the study is confined only to the preference of consumers for textiles
and comparing local products to imported items. The survey will be done on the opinion
of selected distributors of textile products.
All who try to survey opinions have trouble. There is resistance to respond either
because the respondent does not wish to be disturbed or because they suspect some trap.
There are also possibilities of the information being biased. Yet, all these difficulties not
with standing, the study will try to synchronize the conditions as much as possible.
However, budget constraint will monstrously persecute the research.
1.8 Study organization
Based on the proposal of the study, which in detail explains all the project work,
the study's sections are organized. Resting on this, section I is a part of the course of
action in that the study has.
Section II will try its unsurpassed to enclose review concepts and theories and
review previous research findings. It gives consideration on customers' services versus
distribution as well as distributor's participation, satisfaction, and more on related
concepts.
By the directory of the study design, relevant data and information will be
presented and analyzed in section III in brief and striking comportment. The efforts of the
study will appear in section IV. It undertakes to scrutinize the portion of the target area
and will put some remarkable results. These ideas will be concluded and got suggestion
in section V. "As the Twig is Bent, So Grows the Tree"
Richard E.Byrd

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1.9 Time – Table

The time schedule is based on2004/05 Academic calendar of office of registrar, AAU.
Table 1.2 Project work time schedule
Study
No Description Field work day organizatio Report
Visiting day
. n
1 Visiting organization Ministry of By agreement
trade and industry chamber of And Dec. 30/05
commerce Consequence ---- to
2 Report on literature appointment Jan 8/05 Jan. 13/05
3 Direct observation Dec. 28/05
- Marketing departments By Dec. 30/05
- Plants show rooms appointment
- Market places By Feb. 6 & 7/05
- Merkato appointment
- Sholla By agreement
- Distributors Feb. 4/05 &
4 Selection of in formats Feb. 5/05 Consequence
Feb. 8/05 appointment
5 Preliminary preparation of Feb. 8/05 Feb. 9 – 10/05
6 questioners Feb. 11 – 12/05
7 Preliminary data collections Feb. 13 – 14/05 Feb. 15/05
8 Final section of in formats Feb. 16 – 17/05 Feb. 19/05
9 Revision of questioners Feb.20 – March 3 March 4/05
10 Actual data collection
Data presentation and preliminary March 5 – 10/05
11 analysis March 20 – 25/05 March 28/05
12 Data analysis March
Report (data collection and analysis) 3/05
st
13 Report on 1 draft ----- ----- May 3/05 May 12/05
14 Final report ----- ----- May 25/05 June 2/05

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* It * It helps to prepare preliminary questionnaire. The study has aimed to select one from the
Section II
2. LITRATURE REVIEW
The aim of this section is to review some of the important literatures related to the
study. Due to different problems in our country, it was very difficult to collect relevant
and adequate information. However, it has been tried to review some basic conceptual
literature as well as research findings from different Journals.
This section, therefore, includes conceptual definitions, consumer behavior,
distributor's characteristics; consumer satisfaction, distributor participation, delivery
service and its prospects, and others related concepts. It also consists review of empirical
research works in related areas.
2.1Conceptual definitions of consumers
The term 'consumer' is defined to mean the end user, "Who is not necessarily the
customer. Take the example of a mother or father who is buying breakfast cereals. The
chances are that they are intermediate customers, acting as agents on behalf of the
eventual consumers (their family) and, in order to market cereals effectively, it is clearly
necessary to understand what the end consumer wants, as well as what the parents want.
"(MCDONALD, 2002:106) so, consumer is a person who consumes or uses a product.
But, a customer is a person who buys products from a market. For example, Distributors
are customers, not consumers.
"The term consumer is often used to describe two different kinds of consuming
entities: the personal consumer and the organizational consumer: The personal consumer
buys goods and services for his or her own use (e.g. sharing cream or shampoo), for the
use of the household (a VCR), or as a gift for a fiend (a book). "The second type of
consumers" buys products, equipment, and services in order to un their organizations.
"(Schiffman and kanuk, 1997)
2.1.1Consumer Behavior
Why we study it and its perspective
Marketing starts and ends with the consumer from determining consumer needs to
providing consumer satisfaction. Therefore, a clear understanding of consumers is crucial
in successful marketing.

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Any marketing manager seeks knowledge of consumer behavior in order to
develop, evaluate, and implement effective marketing strategies.
"As marketers and future marketers, it is important for us to recognize why and
how individuals make their consumption decisions, so that we can make better strategic
marketing decisions. If marketers understand consumer behavior, they are able to predict
how consumers are likely to reacts to various informational and environmental cues, and
are able to shape their marketing strategies accordingly with out doubt, marketers who
understand consumer behavior have great competitive advantage in the market place."
(Schiffman and kanuk, 1997:7 – 8)
McDonald pointed out that there are two principal theories of customer behavior.
"One theory refers to the rational customer, who seeks to maximize satisfaction or utility.
"The second theory" describes the psycho-socio customer, whose altitudes and behavior
are affected by family, work, prevailing cultural patterns reference groups, perceptions,
aspirations, and life style. "(McDonald, 2001:128)
McDonald further stated that ''the most practical way of explaining customer
behavior has been found to be benefit segmentation, i.e. the benefits sought by customers
when they buy a product. He also put the guiding principle of the marketing director of
one of America's more innovative companies in the hair-care business: "customers don't
buy products; they seek to acquire benefits." (Ibid)
Consumer behavior is dynamic. It involves interactions and exchanges. It is inter
disciplinary. Concepts and theories about people that have been developed by scientists in
such diverse disciplines like psychology, sociology, cultural anthropology, and economics
are the basis of consumer behavior.
Generally, consumer behavior can be defined "as the behavior that consumers
display in searching for, purchasing, using, evaluating, and disposing of products,
services, and ideas that they expect will satisfy their needs," (Schiflamn and kanuk,
1997:8)
ENGEL, et.al, define consumer behavior as "those actions directly involved in
obtaining, consuming, and disposing of products and services, including the decision
processes that precede and follow these actions." (Engle, Blackwell, and Miniard, 1993)

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Three writers in their Book entitled "consumer Behavior - implications for
marketing strategy" explain the need of consumer Behavior to business:
"Today, as never before, we cannot take our business for granted. That's why
understanding and therefore learning to anticipate consumer behavior is our key to
planning and managing in this ever changing environment." (Hawkins, 1992:6)
"When faced with a choice among several alternatives, an effective understanding
of consumer behavior requires an analysis of whether choice occurs, as well as the
relative preference among various alternatives. Many formal analyses that examine
forced choice assume that features common to all the alternatives in the choice set are
canceled in the process of choice (Trersk 1972). Although the relative preference for an
alternative should not depend on whether its features are shared or unique in the choice
context, recent research suggests that the evaluation of an alternative can very depending
on the valence of its unique features (Houston and Sherman 1995). Given the importance
of the unique feathers in comparative judgments, different choice contexts may highlight
different features, and the valence of such features may influence the decision whether to
choose as well as the relevant preference for a specific alternative (DNAR and Sherman
1996)
2.1.2Choice
Consumer research reviewer, Hansen, reviews person walking down a road who
hesitates at a fork in the road before choosing which route to take. We all agree that he is
faced which choice. If, however, the example is changed slightly, it is more doubtful
whether we are still talking about a choice. The person walking on a side walk, when
conflated with a puddle, changes his direction slightly and continues. In this case few
people would say that a choice that a choice is involved.
A critical question is the basic difference between the two examples. In the
situation, a particular pattern of alternatives, uncertainty. Psychologists say an ''
orientation – reaction '' has occurred moreover, there is a difference in the context of the
deliberation. In the first situation, conscious and unconscious brain processes occur,
processes that may possibly be observed directly and are reflected in means women's
such as electoral diagrams and galvanic skin responses. These suggest that a conflict is

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present and that cognitive activities occur. Finally, the first situation is characterized by
haring more than one acceptable alternative.
Thus, when we talk about a choice, three aspects can be identified:
There must be two or more choice alternatives.
The choice alternatives must arouse a certain amount of conflict.
Cognitive processes aimed at reducing the conflict must occur.
Choice is characterized by conflict, uncertainty, and cognitive activity, and related
psychological processes can be observed. Situations of this kind occur, however, where
we do not talk about choices in any narrow sense at the word. Fore example, this is the
case when the individual is '' thinking '' or exposed to information. When he is reading,
listening to a message, or talking, conflict, uncertainty, and cognitive processes occur. All
these stations have a number of things in common (Hansen, 1972 b), and they have been
labeled '' conflict situations, ''since in all of them the individual is tiled with certain
amount of uncertainty and conflict.(Hansen, 1976:117)
David Mercer and Dr. Richard Mole wrote factors that influence buying behavior.
"A customer does not always come to each buying decision with an open mind, and
then rationally consider the options. For instance, any notion that price is the only
important criterion is clearly wrong. In reality the decision making process is extended,
complex and often confused. A wide range of factors, for example, may influence
customer goods and services,, such as:
• Economic factors  Social class  Peer pressure
• Age  Occupation  Lifestyle
• Geography  Culture  Diffusion of innovation
(Mercer and Mole, 1996:6)
They advise as follows:

"Try to keep in mind that by understanding your customers you will be better able
to meet their needs. You are trying to predict their wants, needs, desires and behavior to
the best of your ability in order to create satisfied customers." (Ibid)
Others like Engel, Blackwell, and Miniard, grouped factors that influence
consumer behavior in to three.

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"Consumer behavior is influenced and shaped by many factors and determinants
which fall in two categories.
0Environmental influences
1Individual differences and influences; and
2Psychological processes, "(Engle, 1993:3)
However, the above variables (described by Mercer and Mole) summarize under
these headings.
2.1.3Needs and Desires
The ultimate task in consumer behavior is their (consumer) requirements. These
are the perquisites to consumer buying process. They are the basic concept underlying
marketing human needs and desires.
Based on Lewision and Delofier, "the distinction between needs and desires is
open to debate, the main difference is in their essentiality" According to them,
"Needs are essential physiological or psychological requirements necessary to the
general physical and mental welfare of the consumer."
Were as, "Desires are more akin to wishes, in that they are conscious impulses
toward objects or experiences that hold promise of enjoyment in their attainment.
However, the attainment of desires is less essential to the consumers well being than is
the satisfaction of needs." (Lewison and Delofier, 1989:123)
They also stated "The essential difference between needing or desiring a product
and buying it is the consumer's ability, willingness, and authority to purchase the needed
or desired good, service, or idea." (Ibid)
Engel and his friends indicated that "The need must be already exist even though
it may be dormant and largely unrecognized; it is not created by the marketer. It is true
that marketing communication stimulates desire to buy a product or service to satisfy that
need, but the need itself lies beyond the influence of the business firm." (Engel, et.al,
1993:274)
2.2 Market Segmentation and Customer Benefit
Marketing by its very nature has pivotal role in individual's life. Moreover, the
dynamic world we are still highly demand verities of marketing concepts in different

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dimensions of business activities. It brings about new technology advancement, economic
integration of nations, and better and simple life.
"Marketers need to understand very thoroughly the needs and desires of potential
consumers and the way in which product features can be combined to satisfy these
needs." (Hawkins, et.al 1992:9)
It is wise to group unique needs in developing specific marketing programs. Smith
and cooper pointed out that
"Market segmentation, with its concomitant target marketing (targeting), is one of
the most important concepts in marketing. The essence of market segmentation
recognizing the differences among customers and choosing to target a segment of them
with similar needs has reached its zenith in the late 20th century." (Smith and cooper,
1997).
Market segmentation is the best mechanism that bringing the wants in to the form of
goods or services. The launcher of market segmentation, Wendell smith, introduced the
concept "as a possible means of solving marketing problems." (Barnett, 1969) it defines
as "a group of consumers with homogeneous needs.' (Doyle and Sounders, 1985; page
24)
Whether a company is in a service maker, fast moving consumer market, or
industrial market, the need to segmentation is common to all. The request, however, is
which one is the helpful factor to segment a market consumer or product benefit.
Doyle and Saunders have pointed out that "In specialized industrial markets" the
above definition "is often not managerially useful situation specific variable are usually
much more relevant than general customer characteristics. In industrial marketing, benefit
sought depends less on the internal psychology or socio economic characteristics of the
buyer and more on the external end use of the product. The buyer needs different
products for different purposes, and in specialized industrial markets, will often by
multiple specialist products from different suppliers. For these reasons, it is often more
relevant to segment by product benefits rather than customer. Such analysis gives a more
effective insight into the structure of the market and the opportunities for repositioning
new entrants." (Ibid)

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McDonald also that, "Behind" Guiding Principal of American innovator
statement" lies a basic principal of successful marketing. When people purchase products,
they are not motivated in the first instance by physical features, or objectives attributes of
the product, but by the benefit that those attributes bring with them. "He also added that"
To take example from industrial marketing, a purchaser of industrial cutting oil is not
buying the particular blend of chemicals sold by leading manufactures of industrial
lubricants; rather, he is buying a bundle of benefits which includes the solving of a
specific lubricant problem. "(McDonald 2001:128)
2.3 Customers, service, and satisfaction

Because of time and space limitation and more, appropriately shortage of money,
consumers cannot be completely satisfied. Therefore, consumers have their own interest
and inclination to wards reaching their needs and wants. In addition, because of the above
factors, excellent products are not the driving forces of customers to buy goods and
services. If is advisable, however, for researchers and marketers to investigate and search
deeply the already existing products, whether they are the most quality or not, can have
enough potential to be preferred by consumers. The emphasis here is that good services
and promoting products must be added on considering target consumers.
Stern and Studivant: "It is important for the researchers to emphasize that the
product's quality is not an issue. Not should there be any question at this stage of what
may or may not be most practical for the company, whether a service company, a
manufacturer, or a middleman. Rather, respondents should be encouraged to consider the
delivery of the service, the convenience of shopping for the product, and the kind of
additions there is sold a long with ether." (Stern and studivant, 1987)
The underline ideas on considering consumers are the need of delivering service,
convenient shopping, and different sell promotions. In market, however, less quality
products will be automatically out of becoming a part of alternative when consumers buy
wherever competition exists. Therefore, if a marketer considers all of this, the hallmark of
consumer satisfaction appears. In addition, the company will be beneficiary. As
Lechmann and Forneu indicated, "Higher customer satisfaction should lower the costs of
transactions in the future. If a firm has high customer retention, if does not need to spend

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as much to acquire new customers each period. Satisfied customers are likely to buy
more frequently and in greater volume and purchase other goods and services offered by
the firm." (Lechmann and Forneu, 1994) they further added that the more loyal customers
become, the longer they are likely to continue to purchase from the same supplier. (ibid)
The concept of satisfaction "is an emotional response that dictates the behavior and
actions of a customer's purchasing abilities. Those products and services that provide
satisfaction are likely to be purchased in the future. Given its attitudinal component,
satisfaction is readily defined as the different between what a customer expects and what
he or she perceives to occur. Therefore, managing these expectations and perceptions
becomes critical for all businesses to maintain customer satisfaction and provide a unique
and lasting quality experience. 'McLaughlin also stated that' satisfaction, as described,
can not be fully measured. Evaluating satisfaction requires a measurement of customer
expectations, perceptions, altitudes, bias, past experiences, and likes and dislikes.:
(McLaughlin, 1998:173 – 174)
He also added "satisfaction is greatly affected by environmental factors, previous
outcomes and experience, bias, warnings, and pre-and post-consumption feelings and
attitudes. In order to me, the manager must identify and measure the sources (causes) of
both satisfaction and dissatisfaction." (McLaughlin, 1998:173 – 174)
"Product selection is in part determined by the anticipated satisfaction with that
product. Consumers wonder if the purchase will turn out 'good' or 'bad', if the product
will work or not, whether he or she will be 'satisfied' or 'dissatisfied', if is inconceivable
to argue that this inference is not determinant of product choice in virtually all instances
in which consumer decisions are made.
What determines the expectancy of 'success' or the subjective like hood of personal
satisfaction for each of a number of alternatives? Before any initial choice, the
antecedents of expected satisfaction are numerous and primarily non-attribution. For
example, I may purchase a particular product because it is first on the list in consumer
Reports, because a friend speaks highly of it, because I am convinced by an
advertisement, and on and on."
Dhar studied on consumer preference for a No-choice option.

5
Consumer's
'' Consumers often face situations that require choosing among several alternatives
in the marked place. The traditional focus in the decision-making literature has been an
understanding how people choose among a given set of alternatives. In reality, many
decisions involving choice among several desirable alternatives can be difficult and give
way to a more fundamental kind of preferences the decision whether or not to choose. A
recent analysis of a sample of consumers finds that the difficulty of selecting a single
alternative was one of the most important causes for delaying a number of purchase
decisions (Greenlent and lehmann 1995)" (DHAR, 1997)
2.3.1 Customer Service
"Factors which impact on customer service include;
0Frequency of delivery
1Time from order to delivery
2Emergency deliveries when required
3Accuracy of paper work
4Stock availability
5Reliability of deliveries, etc." (McDonald 2001:408 – 409)
Stewart also started that "consumer service measurement relates of the speed and
consistency of servicing orders in comparison to a standard of product availability."
(Stewart, 1965)
Stern and studivant also advised as follows:
"Managers conducting the research concentrate on learning what their ultimate
customers the end users want in the way of service. It is these people, of course, who
actually benefit from the products a company makes." (stern and studivant, 1987)
Generally, "The measure of physical distribution performance is the relation
between customer service capability and associated total cost." (Bower sox, 1972)
According to stern and studivant, "service fall in five categories"
- Lot size (buy unit or multiple unit)
- Market decentralization (distance far, near)
- Waiting time (immediate delivery or assurance of delivery)
- Product variety (choice of many related products or do they prefer the store to
specialize)

5
Consumer's
- Service backup (repair immediate, wait for local repair service) (stern and
studivant, 1987:34)
2.3. 2Customer complaints
Lewison and his friend assured that "the rights to be heard and to be informed are
key factors in the customer complaint process."
They also put: "Most customer complaints result from one of the tree general
causes:
0Product related:1.1 poor quality products
1.2 Damaged products
1.3 Incorrect products
1.4 Insufficient products
1Service related causes involve customer dissatisfaction with sales personnel and
services such as checkout, delivery, workroom, and customer accounts.
2Customers make mistakes: sometimes they are international, sometimes they are not
customer mistakes are also a cause of customer related complaints. "(Lewison and
Delofier, 1989:460)
Finally, based on Lewison and his friend, "the more common service objectives are to:
 Increase from utility
 Facilitate time utility
 Enhance place utility
 Promote possession utility
 Increase consumer convenience
 Create a desirable store image
 Provide customer security
 Increase store traffic
 Establish a competitive position, and
 Build demand (ibid, page 463)
2.3.3Distributors and consumers
Whatever the product is attractive and has cheap price, end users should be able to
get it with right quantity on the right time from the right supplier. Otherwise, excellent

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Consumer's
product with reasonable price will be invisible or out of the market. So, a distributor has a
crucial effect and has a key role on consumer satisfaction as well as company's profit.
From Harvard Business Review, Narus and Aderson, strengthen this idea on the portion
of disseminating products:
"An recent McGraw-Hill Survey found that only 24% of all industrial marketers sell
their products directly to end users exclusively; the remaining 76% use some time of
intermediately of which industrial distributors are the most prominent." (Narus and
Aderson, 1986)
In 1976, "International Management" Magazine has indicated similar explanation by
the title" selecting the right Agent":
"An Agent an individual or organization given the right to market a manufacturer's
products in a specified territory does not represent a sizeable investment of the company's
money. Indeed, that is why many companies employ agents rather than set up their own
branch sales offices. But nonetheless an agent can have a crucial effect on the company's
performance." (Buck, 1976:18)
Luck has also conducted similar study on Journal of marketing in 1969 as follows;
"Wholesalers and retailers play major roles in the market success of products which
they distribute. Relatively small shifts in shelf facings, out of stocks, displays, and other
dealer support may produce favorable or dangerous friends. A significant portion of the
product distribution strategy may be aimed at the distributors themselves to stimulate and
maintain their interests through special programs, sales aids, and other trade promotion.
Often the product managers concern includes monitoring the inventories in the pipelines
in order to control production rates." (Luck 1969)
Before 35 years, Lopota stated that:
"The last two decades have made if clear that we can not do a way with the
economic functions of wholesaling and distribution, and that, more than ever before, . . . "
(Lapota, 1969)
On the other hand, David Arnold said the need of distributors in an emerging
market as follows:

5
Consumer's
"An established corporation looking for new international markets makes a foray
in to an emerging market, carefully limiting its exposure by appointing an independent
local distributor." (Arnold, 2000)
Therefore, Risk avoiders, investment partners, economic facilitators, effective
performer, Market successors and over all satisfier of customers. Distributors are
generally known as:
"Are usually held to be wholesalers who deal with industrial goods and sell them
to small business and trades people, for example, in building trade."
It is known that consumers need quality product and services. Thus, "Once the
product is produced, it is a responsibility of the physical distribution system to maintain
that level of quality from the point of production to the point of consumption." To
maintain right quality companies must establish good channel system. This is the over all
good quality product bringing to consumers. "Therefore, the distribution net work must
attempt to minimize product mishandling, poor routing, and scheduling, and delays in
transit." (Lambert and Stock, 1978:51)
2.3.4Distributors participation
Hill in his book entitled "wholesaling Management" pointed out that:
"Wholesalers who systematically study their markets, and an increase number of
them do, can provide their suppliers with information about product usage,
characteristics, buying trends and practices, potentials, and competition that few
manufacturers could afford to collect for themselves." (Hill, 1963)
As indicated above, they relevant information about products, buying selling
process, and consumers want and interest. Nevertheless, sometimes they become
dangerous and can influence marketing performance of manufacturers.
"Suppliers may add new distributors to sales territories or cultivate sales directly to
consumers through the Internet, there by potentially harming existing distributors and
retailers. Sometimes, with out notice, suppliers drop products from product lines,
depriving distributors of future sales opportunities and marking current inventories
obsolete. Similarly, distributors can reduce the shelf, floor or catalog space allocated to
suppliers, causing damage to the suppliers' sales, profits, and / or reputations. All these
types of actions have negative repercussions and can threaten the well being of the

5
Consumer's
relationships in the channels in which they occur." (HIBBARD, KUMAR and STERN,
2001)
Before seven years ago, Murry and Heide suggested Determinant factors of
participation. According to them, "The three general mechanisms for structuring
relationships between parties are motivated by self interest. These are: -
o Interpersonal attachments
o The use of incentives
o Monitoring efforts, intended to reduce information asymmetries that other wise might
permit non compliance." (Murry and Heide, 1978)
Of the three mentioned factors, the use of incentive is a highly motivated factor that
encourages efficient physical distributions system. From Michigan state university, two
writers, shimaguchi and later, had concepts on the benefits of forming relationship. They
pointed out that:
"Basically, rebates are provides as incentives for distributors originally, a rebates was
deemed to be a portion of the business profits returned to distributors to motivate them to
purchase and sell a manufacturer's products." (Shimaguchiand later, 1979)
They also added "It has proven to be a powerful method by which manufacturers can
motivate, stimulate, attract, and control distributors under conditions of keen
competition." (Ibid)
"Distributors, in turn, believe they will receive the largest rebates if they demonstrate
great loyalty to their suppliers." (IBID, 1979)
Lewison and Delozier stated that: "Based on the number and type of functions,
wholesaling intermediaries fall in to several groups." These are: -
0Merchant intermediaries
Full function General merchandise, specialty line and Single line
Limited function Cash and carry, Truck distributor, Drop shipper and Rack
Jobber
1 Agent Intermediaries
0Limited function Broker, Manufacturer’s Agent, Sales Agent, and
1 Commission Merchant and Auction House
2Contractual Intermediaries Full or limited function (cooperative group and

5
Consumer's
3 Voluntary chain)
(Lewison and Delozier, 1989:471 – 473)
2.4Consumer interest and distribution
Many different organizations and parties have presently given more attentions to
women's rights, citizen rights, child rights, and so on out of these rights consumerism has
been considered as a basic human life act and the question of survival. Thus, companies
must establish good management to deal with consumer interests.
Clearly, Marketing is concerned with user satisfaction in the identification of
marketing opportunities. Thus, channel system will have a great responsibility in
protecting user interest and satisfaction. As lambert and stock assured that "consumerism
significant impact on physical distribution of a firm." (Lambert and stock 1978:49)
"The role of the firm in a consumer oriented society will be explored interns of the
current ad forecast scope of the consumer movement and the impact of consumer
demands on the distribution function." (Ibid)
Moreover, "the consumer movement promises to force to a reconsideration of the
importance of the important of physical supply as a component of the marketing
process." (Ibid)
Generally, "Individuals, business, ad governments are demanding efficient and
productive distribution systems which more products with a minimum of pollution, the
maximum in energy efficiency, and with a minimum of systems delays such as those
caused by transportation congestion." (Ibid)
Otherwise, "inefficiencies in physical distribution result in higher costs thought the
channel of distribution." (Ibid)
This will have a great impact on consumer needs and wants, i.e, they will buy
products at higher price.

5
Consumer's
SECTION III
DATA ANALYSIS AND INTERPRETATION
3.1 Background of the study
INTRODUCTION
This consumer’s preferences survey presents a side view of the local consumers
for textile (including cloth) in Ethiopia.
The stress of the surveys lies on those products, which are of imperative for
domestic manufactures and online business partners. It is a key national concern to boost
the industry with in basic strategic of the country. The survey includes contact details of
distributors in particular emphasis and some sales persons and customers' informal
contact in general. The study depends on secondary data (data that have been published
earlier) and primary data (information that collected on the study).
This study has also tried to identify what types of textile consumers prefer to buy;
why they prefer it; where they buy it; and how often they buy it. It has been also
considered what kind of consumers buy textile? What do they look for? The answers to
these questions found through this study for textile.
Although this study focuses how and why local consumers make decisions to buy
products, the commitment goes for beyond these factors of consumer’s preferences. It has
been done selected survey on what they expect from local products and what they
response for imported products. Be it known, all of these questions have been solved
through distributor opinion.
In this survey, it has not been tried to study organizational consumers rather
individual. Ethiopian consumers who buy goods and services for their own use or for
household use are given privileged attitude of their display in searching for, purchasing,
using, evaluating and disposing of products, services, and ideas.

5
Consumer's
Socio – Economic Performance during the 1990s

This part is taken from the final document entitled sustainable development and
poverty reduction program (SDPRP) for the purpose of this study. It is believed that
improving local companies capacity by providing marketable products as a means of
fighting Ethiopians number one enemy, poverty. It is a central contributing indicated
factor forwards sustainable development and creating good economic health.
- Macro economic indicators of the performance of the economy during the 1990s
give an overall picture of a declining tends of poverty. GDP grew at an annual
average rate of close to 5% during 1992/93 –2000/01.
- During the period 1992/93 – 2001/02, GDP per capital has been growing by 2.7%
per annum.
- Adjustment polices focused on liberalization of prices & markets, removal of

subsides, reduction of tariffs and current account convertibility.
- Over the period of 1995/96 to 2000/01, 262 foreign investment projects received
certificate, of which 56 have become operational.
- Gross enrolment for both sexes at primary level increased from 35% in 1995/96 to
51% in 1999/2000.
- Increase in health coverage from 49% in 1995/96 to 52% in 2000/01.
- Generally, the new economic policy took the creation of an enabling environment
for both domestic foreign private investments as one of its objectives.
- Besides these good achievements, the document has indicate the following
challenges:
- Rural areas are still the center of mass poverty.
- Households with larger family sites, low lowers of literary louder heads of
household are more likely to fall into poverty than those with smaller family sites,
higher levels of literals, and younger heads of household
Source: Ministry of Finance and Economic Development of Ethiopia: SDPRP July 2002 A.A

5
Consumer's
Ethiopia: Macro economic and social indicators

2002 2003 2004
1. Social indicators
Population (total), in millions 67.2 69.1 71.1
(O/w urban population, in %) 15.3 15.5 15.8
Working age population/in millions
Urban 6.4 6.5 7
Rural 29.8 30.54 31.4
Total 36.2 37.04 38.4
Natural rate of population Increase (in %) 2.7 2.7 -

2. Economic indicators
GDP at current market price (in Birr) 51,932.80 57,077.30
69,195.70
Nominal GDP Growth rate (in %) -4.2 9.9
21.2
Real GDP growth rate (in %) 1.6 -3.9
11.6
Financial institution
No of commercial bankers 8 8 9
No of insurance companies 9 9 9
No of Development Banks 1 1 1
No of Micro –financial institutions 21 22 23
1989 EEY 19961/97 GC 2
Source: National Bank of Ethiopia Quarterly bulletin (4th quarter, 2003/04) for more detail refer appendix.
FACTS ABOUT TEXTILE FABRICS IN ET`HIOPIA

5
Consumer's
The textile industry sector is the largest manufacturing industry in the country.
There are eight state owned textile factories and more than six major state owned and
private garment factories. It employs about 30,000 workers having a share of about 36%
of the manufacturing industry. Currently, most of the state owned textile and garment
factories are under process of privatization.
The main products manufactured in the country are cotton fabrics, nylon fabrics,
acrylic yarn, and woolen and waste cotton blanker and sewing thread. The country’s
spinning capacity is only 0.1% though; this capacity itself is not being fully utilized.
Textile export is a very recent phenomenon for Ethiopia. The factories were set-up
for import substitution and as such were neither technically not managerially ready to
enter the export market. Source: Ethiopia Export Promotion Agency –Potential for Export
Development in Ethiopia
The following are the major out puts and their annual production capacity of the
eight state owned textile factories.
Table 3.1 the major outputs and annual production capacity of the eight state
owned textile factories
No Name of the Major out put Annual production capacity
enterprises
1 Almeda T. F. Yarn, poplin, sheeting, towels 36mil m2 per-annum
2 Awassa T. F. Gray 100% cotton, drill gray, poplin 36.1 mil m2
3 Kombolcha T. F. Poplin, bed sheet, Twill, towels 22ml m2 of fabrics
4 Arbaminch T. F. Twill, poplin, drill, bed sheet 27.6ml m2
5 Dire Dawa T. F. Cotton years, acrylic, yarn 3.1ml kg yarn 26ml m2 fabrics
6 Bahir Dar T. F. Gray fabrics, gray sheets, poplin 12ml m2 fabrics 500,000kg yarn
7 Akaki Textiles W Fabrics, thread, blanket, socks 8.1 ml mts fabrics
8 Ethio-Japan Nylon, Rivan 5ml m2 Nylon
Nylon textile S.
Co
Source: Ethiopia Export Promotion Agency –The study on Ethiopia Textile and Apparel sub-sector

5
Consumer's
Product characteristic
Product group of the study
This analysis of textile includes bed linen, cloth, poplin, Towel, twill, drill gray and yarn.
Bed linen:
It is the most important market for household textiles. It includes bed
sheets, pillow covers and blankets (excluding electric blankets) functions
of bed linen are to protect the bedding, to enhance “Sleeping pleasure”
and an aesthetic appeal.
Cloth:
It includes men’s clothing, women’s clothing, T-Shirts pullovers and
babies clothing.
T-shirts can be used for many purposes. Functions vary from outwear
(plain, striped, printed) under wear (mainly plain while, part of a sport-out
fit) plain with logo to night wear (over sited). It is know that about 90% of
T-shirts is made of cotton. T-shirt is a colorless short-sleeved or
sleeveless usually babies clothing cotton
undershirt, also, an outer shirt of similar design.
Poplin: - cotton, wool, and other textile fabrics, crosswise rib. The filling is
cylindrical. Two or three times as many warp as wetter per inch has a more
pronounced filling effect than broad cloth. It is mercerized and has quite a
high luster. If may be beloved, or duded usually vad dyes are used or
printed. Heavy poplin is given a water repellent finish for outdoor as
organize made with silk warp and or a heavier wool filling. Some also
mildew proof, fire- retardant, and some given suede finish. American
cotton broad cloth shirting is known as poplin in Great Britain.
Towel: Absorbed cloth used for drying after washing. (Oxford Dictionary of current
English 1998:966)
Twill: A fabric with a twill wearer namely a textile weave in which the filling

5
Consumer's
threads pass over one and under two or more warp threads to give an
appearance of diagonal liner.
Drill: A durable cotton twilled fabric. Twill Left hand twill from top left to lower
right L2/9 or L 3/1 closer, flatter Wales that gabardine. Medium weight
and course yarns are used. Also made in some other weights some left in
the gray but can be bleached old dyed. When dyed a Khaki color it is
known by that name. (Another definition for drill): strong cotton
material similar to denim which has a diagonal 2 x 1 weave running up
ward to the left selvage called Khaki when dyed that color used for
uniforms, shirts, work clothes, ticking.
Yarn: A generic term for a continuer stand spun from a group of natural or
synthetic staple fiber, or filaments, used in weaving, knitting to form textile
fabrics yarn definition.
Yarn dyed 1) the dyeing of yarn before weaving or knitting

2) Fabrics woven or knitted with yarns, which have been dyed.
Source: www.appareassearch.com/glossary-y.htm
3.2 General overview of the study

As cited in the opening section of this study the major focus of this study is to
understand and describe the opinions of private textile distributors towards consumers’
preferences for textile. Primary data were collected using questionnaire and deep inter
view. Furthermore, textile shops have been observed.
The target populations of this study were of 6 (six) different private distributors
marketing out of which five have posts in marketing and one from operation department.
These six individuals were identified as target population. Six questionnaires (which are
the same type) were distributed. As of distributed questionnaires, all were returned and
analyzed.
To boost the accuracy of the data gathered through questionnaires, sales persons
of different shops were interviewed. These interviewees were selected based on their
comparative exposure to marketing and contact with customers.

5
Consumer's
Therefore, the subsequent results and explanation are done based on the collected
data from the questionnaires, interview and observation. Be it well known, in this study,
secondary data were pricelessly given to make out additional investigation about
consumers preferences. Section 3.3 has detail information about local consumers.
Domestic Textile Distributors

This gives background information on the selected distributors on which the study
has been conducted. This part is limited to only giving type of organization, years of
services, the number of employees they have, location, and Average annual turnover.
The sampled six distributors are private owned companies, which are scattered
through the city with a major concentration near to Merkato commonly known as
Teklehaimanot. They have branches (shops) in Merkato, the country's largest market
place. The distributors are engaged in buying and selling at profit of thread, fabric, yarn
and garments. There are significant variations among the sampled distributors in terms of
capital, sales, employee and capacity. The average year of services of these distributors is
10 years, ranging from 6 to 15 years. All of them are reluctant to show their income
statement or to tell their annual profit. In short, the following table shows each attributes
of the distributors.
Table3.2 Qualities of the distributors
Respondent Type of Years Number Average Location
Id Number organization of of annual
service employees turn
over
1 PLC 6 70 50ml Teklehaimonot
2 “ 15 500 160ml National
3 “ ‘10 20 20ml theater
4 “ 12 50 30ml Teklehaimonot
Merkato
Personal Profiles of Respondents

5
Consumer's
Based on the responses obtained, the personal profile of respondents is
summarized as follows:
Of the six respondents were, one 12th grade complete, two diplomas, two degree
and one masters degree (MBA). Except the one respondent (operational manger), the rest
are working at marketing department out of which the three are marketing managers. All
of them have worked for more than six years in textile market. Half of the respondents
have knowledge on domestic and international marketing as well as managerial skills.
One third of the respondents have had a chance to visit regional markets as well as
foreign textile factories and markets (for example, China). To take you back, half of the
respondents are female. On the behalf of the study, I would like to express my
appreciation and my sincere thanks for the wonder full time I spent at their office. They
have given pertinent, detail information, and completed all the questionnaires. The
questionnaire has six pages. It contains 23 core and 9 all-purpose questions. Morever, it
includes seven interview guide questions.
The subsequent table contains the stipulate personal silhouette of the respondents:
Table 3.3 Personal Profiles of Respondents

Work experience Marketing
In the filed Out of the
Respondent Education Sex
filed Experience Education
ID No
1 6 4 X - 12th grade M
2 10 10 X - Degree M
3 8 10 X X Masters degree F
4 15 - X - Degree M
5 6 - X X Diploma F
6 5 3 X X Diploma F

5
Consumer's
Local Consumers Preferences

Market Segmentation
ETHIOPIAN CONSUMERS
The general criteria for market segmentation of textile and apparel are: -
• By age – babies and children’s, young, medium age and old age.
• By gender – women and men
• By area – rural and urban areas
• By type of product and type of activity
- Formal clothing – coats, dresses, skirts, trousers etc.
- Casual wear – shirts, pullovers made of cotton etc.
-
Consumption Patterns and Trends

It has to be distinguished that demand for textile for clothing is determined by
factors like income and spending power, consumer choice, price, demographics, life
styles, developments in fashion, climate and environment.
DEMOGRAPHICS
In order to know how much will be spent on clothing, the site and age structure of
the population are the basic determinants. It is well known that different age categories
have different clothing behaviors.
The Ethiopian population has an increasing birth rate and young population. In
2003/04 working age, population is 38.4 million which is2.7 % of the population.
Ethiopia is third populous country and one of the highest population growths in
Africa. Based on the population growth of the country, surveys indicate that the
population site will be doubled with in less than two decades. This articulates that there is
a big domestic market to textile and garment, besides external markets.

5
Consumer's
INCOME AND SPENDING POWER
Money and time budgets are the two budget constraints of consumer resources.
Ethiopian consumers earn law income while bounded by excess time in the lives. In the
exchange of goods and services in a market, they are reluctant to pay more money but
enjoy spending more time in purchasing products. Although local consumers are facing a
time money dilemma, they have a high ability to select a product.
Today, Ethiopia has scored some achievements on economic and social patterns. It
has been believed that family income rises every year due to:
 Investment opportunities
 Income from Diasporas (form Ethiopians living in western and Arab
countries).
It is known that income rises the percentage spent on food declines, the
percentage spent on housing remains constant, and savings increase. Moreover, the
market places have an advantage due to increase income, cost of living, and savings and
borrowing conditions.
The compile data attached in this section shows small and micro finance
institutions have increased for the last ten years. It has a good fate for small and medium
enterprises. In addition, priorities in consumer choice state owned enterprises are being
privatized. All of this indicates that income and spending power have been increased for
the last ten years. It also expects that income will be increased for the coming years.
Priorities in Consumers choices

There are significant differences in consumption habits in Ethiopia due to
differences in culture, traditions, tastes, and others. Local consumers give priorities for
necessity goods. On the other hand, young consumers have a pleasure to spend many on
fashion and modern textiles.
LIFE STYLES
Now days, clothing, more than ever, serves as the means of expression of
personality, character, ideas, and attitude to life will be emphasized by the way a person
dresses. Fashion and styles are eminently suited to expressing a personal style.

5
Consumer's
In the present day, people do not mind spending their money on low price, and it
is the main criterion to spend on goods. It creates a good opportunities for many clothing
shops (including street venders) are going in for upgrading and opening each day in
Ethiopia, By the same token, Life styles of local consumers are being changed due to
education sports, western films, and many other factors.
Fashion trends
According to a survey by Kurt Salmon associates (KSA: http://www.kurtsalmon.com),
the following fashion trends are expected to continue or will be new in the 21st century: -
• Fashion is no longer proposed by designers but driven by a desire for comfort,

individuality, versatility and clean cut lines.
• Fashion is also driven by sport, film, music, and art events and youth culture.
• Consumers want a simplified, more flexible word robe and are spending less.
• Styles are becoming increasingly streamlined with softer silhouettes, and as a
result, fabrics are becoming important and with that the need to make the
performance characteristics and aesthetics of a fabric appealing to the customers.
• Young people are also looking to life style brands for them, the utilitarian is
fashionable.
CLIMATE
Climate weather has an impact on the timing of expenditure. Unexpected weather
changer influences consumers in their purchasing decisions, consumers in warm, dry
climates tend to buy cheaper clothing and less durable. It influences the share of clothing
expenditure. Now days weather condition of Ethiopia becomes warm and dry climates.

5
Consumer's
Trade configuration
- Distributors
• They hold their own stocks at own risk.
• There is one governmental owned distributor in the country and widely
knows as MEWIT (Merchandise whole sale and import trade enterprise). It
is not strong enough to distribute textile and clothing products as it has
performed like during the post regime.
• Private distributors are more active and effective. Their capacity have been
increased for the last ten years. This is due to the privatization policy of the
country.
- Retailers
• Retailers constitute the final stage before products reach the consumer.
There are many retailers in the country. Many textiles garment
manufacturing and destroy enterprises and distributors have established
retail shops mainly in Addis Ababa and production compounds. Some also
do have their own shops in big towns. The factories and distributors sell
textile and garment directly to the consumers and other users of these shops.
- Others
• Production based on customers and government orders. Orders may be
uniforms, bed sheets, working clothes etc.
- Street markets
• Street vendors are involved in clearing up stocks from manufacturers or
distributors. Some retailers have partners of street vendors.

5
Consumer's
Normally, trade and distribution channels for textile can be demonstrated as

follow:
LOCAL PRODUCTS
MANUFACTURES
DISTRIBUTORS
(IMPORTERS)
PRIVATE MANUFACTURING
RETAILERS WITH RETAILER
ACTIVITY
CONSUMERS
STREET
DISTRIBUTOR
VENDORS
WITH RETAILER
ACTIVITY
Foreign products
DISTRIBUTORS
(IMPORTERS)
Fig 3.1 Trade and distribution channels for textile in Ethiopia (Tailored to the study)

5
Consumer's
MARKET
Local consumer may buy textile products
- In known markets like Markato
- From street renders
- In fair and exhibition
- Around known places church and other places.
Prices and Margins

Margins
As usual, consumers, distributor, retailers and others are looking for low-priced
products. Some factors influence the margins of the various different levels of
distribution. These are risk, volume of business marketing services; completion and
others. Commonly, price is an important criterion, and suppliers may be tempted to cut
costs in order to gain market share. They may do this by producing goods that are at as
safe as they should be.
Retail Prices
The market is intensively competitive and prices vary according to the product,
type of outlet, purchaser behaviors and retailer’s judgment on the market. Because of the
lack of finance and time, it has not been undertaken to know retail prices of textile,
imported or local, products.
Sources of Price Information

There is no central price source in the country. It is very difficult to get relatable
trade center or printed survey at all.

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Consumer's
3.3 Basic findings and Data analysis

This study identifies two types of actors, the most important of which are consumers.
Consumers are the individuals that identify a need, purchase, and use products to satisfy
that need. They are all Ethiopians. Marketers are distributors and textile manufacturers
that satisfy consumer needs in exchange for money.
The most important expression of any business endeavor is to make available a product,
which satisfies consumer needs. Product is, therefore, the keystone of a marketing mix.
This study attempts to delve in to the subject of textile products and consumers
preferences in detail. Let us start on considerations on textile products. It applies to any
offering to a target audience of customers.
Product preference and why consumers prefer products

Bed linen
It has a highest demand in Ethiopia textile market because of the increase in
population. It is useful for household, Hotels, and for other purposes. Since Ethiopia is a
country of tourism, hotels are open dramatically increase in each year. This contributes its
own share to increase the demand of bed linen. To all of this functions of bed linen are to
enhance sleeping pleasure and an aesthetic appeal. People need to buy it for such
purposes.
Cloth
Cloth is a second necessity for human being next to food. In addition to this, people
need clothes to express personality. Due to cultural differences, people choose different
type of cloth for the purpose of weeding, birthday, and others.
In most market places of Ethiopia, the demand for cloth is high. The reasons are
mainly of four fold:
1.Population size
2. Increase in income sources of
Diaspora (income from foreign)
Increase in employees

5
Consumer's
3.Low priced items
Imported clothes (legal plus illegal)
4.A good attitude of consumers towards clothes
Women’s clothing
Although the demand of women’s clothing is high, retailers are unwilling to sell
or to stock such items. As most of the respondents replied, women’s preferences are
becoming changeable due to their tendencies towards fashion and style.
Men’s clothing
Since men are not inclined to fashion, the demand for one type of product exists
for a long time in the shelves. For this reason retailers and distributors are very interested
to stock and sell men’s clothes and it is a more profitable business. It has high demand in
the country.
Tee-shirts
Because it is fashion and it can use for many purposes as well as the hot weather
conditions, the demand of Tee shirts increases, especially for young consumers.
Moreover, functions vary from outerwear and underwear tonight wear, make it high
demandable. About 90% of Tee shirts are made of cotton.
Babies clothing
The mother is the customer. Any mother in Ethiopia not only dresses herself
fashionably but also her baby. It ranges from during her pregnancy she thinks and collects
the basic outfit for the baby. Often she is advised and helped by a friend or a neighbor.
There is custom to give a gift of clothing for babies that help to strengthen friendship. On
this study, it is known that the demand of babies clothing is high.
Poplin
The demand is high because it has many purposes.

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Consumer's
Towel
High demand. It uses for household, hotels, and offices. In rural places, it uses as
blanket.
Twill
High demand. It is useful to make trousers and coats. It also serves as to make ready-
made clothes. Since it is made of cotton, it is expensive.
Drill Gray
Low demand. This is because of a low quality of Drill gray. Before a few years ago, it
was useful to make trousers in rural areas.
Yarn
It has high demand. Traditional Ethiopian clothes are made of yarn. In factories, it is
used as raw material for making different products.
The succeeding table shows some of the products and their nominal and unconscious
benefit:
Table 3.4 Products and their nominal and unconscious benefit
Product Nominal benefit Unconscious benefit

Bed linen Night cover Sleeping pleasure
Cloth Protect body Express personality
T-shirt Out and under wear Self-expression and being
young
Towel Absorb water on washing Relief
Local consumers
This local consumers study has a great emphasis on individual and family inclination
towards purchase of textiles in Ethiopian. To go at a greater distance in the analysis, the
personality traits and family life cycle are contributive factors. Consequently, within the
boundaries of Ethiopian accompaniment the two circumstances depict as proceed.

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Consumer's
Personality traits of Ethiopian consumers
Assertive Pleasant Cooperative

Self-confident Warm Emotional
Mannerly Hard working Peevish
Dependable Responsible Curious
These are found based on distributors, some retailers and sales persons opinion on market
observation of the study.
Ethiopian family life cycle
1. Young singles
Incomes are medium since they have a good income sources. They tend to buy
textile.
2. Newly married
Medium level of discretionary income because both or one of them are usually
working. They need new products for their new house.
3. Married couples with children
Most studies state that the average family size in the country is six. Unless they have
a good income source, most of them are poor since they have more children. They are not
active in buying textiles
4. Young working live with their families
They have enough money for purchasing clothes, but dependant on parental support
for food and house rent expenses.
5. Old age or young dependant on parents
They are completely depending on parental support. Nevertheless, they have great
intentions to spend money on clothes, if they have a chance to obtain money

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Consumer's
Consumers’ preferences
Income has been an important variable for distinguishing market segments. It simply
indicates the ability or inability to pay for a product. Moreover, it serves as a measure of
social class.
Local consumers who earn between 150 to 600 Birr per month mostly visit textile
shops. This is the fact that they have enough money to cover their basic needs such as
food. In most cases, they are interested and able to pay for a product. Such persons
usually visit shops, which located around Merkato.
While those who earn less than 150 Birr per month mostly go to Kolfe to buy illegal
imported salvages (used cloths.) Kolfe, which is found in Addis Ababa, is one of the
known market place, which provides salvage clothes in the country. It is known that poor
persons (earn less than 150 Birr per month) spend high percentage income on food.
On the other hand, rich persons include those who earn high salary per month and
those who have a good income source from foreign, go to modern shops located around
Bole and Pizza because they need high quality and fashion clothes. This survey assured
these conditions through questionnaire and interview.
Gender is one of the segmentation variables in marketing. More domestic women

consumers visit shops and buy products. Every day life shows that in Ethiopia, women
have a great responsible to manage the housekeeping budget and men have a decisive
role as well as the basic source of budgets. Mothers are the usual agents to select and buy
babies clothes. Both workingwomen and working mothers spend most of their income in
cloth, cosmetics, and household furniture. To remember Ethiopia is a country of Younger
population. Young women those medium age and young have a great interest to visit
shops and they buy products most of the time.
The study learned that the demand of products often vary with consumers age and sex.
Based on the responses, more medium age and young women visit shops.

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Consumer's
The following are the most important purchase criteria among Ethiopian consumers for
textile products (on percentage base.)
High quality (A good fit and comfortable) products 20%
Durability (will last/wear well) 60%
Value for money (reasonable price for the given quality) 20%
Good price / Quality 15%
Cheap price with products 85%
Past experience with products 40%
As shown on the data, consumers need cheap price clothes. The thoughts are the ensuing:
 Economy of the consumers
 The need to allocate budget and that help to buy other products.
 The need to success through purchasing product
 Personal freedom to control one’s own money
Wearing expensive and quality clothes are

 A sign of material success
 A statement of personal success
The above data on percentage stand are found based on the average valve of a given
percentage of respondents. Below is presented respondents ‘opinion vs purchase criteria.
Table 3.5 respondents ‘opinion vs purchase criteria.
1 2 3 4 5 6 Average
High quality (H) 25% 20% 15% 20% 20% 20% 20%
Durability (D) 55% 45% 70% 50% 80% 60% 60%
Value for money (V) 15% 30% 25% 15% 10% 25% 20%
Good price/Quality (G) 15% 20% 15% 5% 10% 20% 15%
Cheap price with products (C) 75% 95% 95% 75% 80% 90% 85%
Past experience with products (P) 55% 25% 35% 45% 30% 50% 40%
At one time consumers usually spend on clothing is between birr 150 to 300. This
expression is true for clothing markets today in Ethiopia, because most people dress to fit
their self-images and adorn their home to include their own social-class membership.
Young consumers need to differ themselves and their houses from others in terms of what

5
Consumer's
they consider fashionable or in good taste. Most working young local consumers live
with their family (mother and father.) This creates a great opportunity to spend their
income on clothes. In Ethiopia today’s economic condition, spending up to 300 birr on
cloth means a high expenditure relative to other products. This indicates local consumers
give high value to clothes.
Marketing specialists need segmentation to discover the needs and wants of specific
groups of consumers. The reason behind this is that people who live in the same area
share similar needs and that these needs differ from those of people living in other areas.
For example, textiles have better opportunities for buying in every less than three months
by one customer who live in urban than the one who live in rural area of Ethiopia.
Incomes, considerations on fashion and style, and exposure to advertisements are the
basic reasons to open a good opportunity to buy in less than three months for urban
customers. Whereas, poverty and consequence of this like no shops around the rural
areas, make the demand of textiles is low in these areas and they are forced to buy
products once a year. On circumstance, if the harvest is very well, they go to near cities
and buy what they need. This is accompanying reason to increase the demand of textile in
urban areas. The respondents indicated that urban customers buy textile in less than three
months, but in rural consumers buy with in one year.
As anyone knows, Ethiopians love to celebrate major landmarks in the religious calendar.
On these days, local consumers need, buy, and wear best and new clothes. For example,
the popular Ethiopia Timket /Epiphany tour is a good evidence for the study purpose.
Orthodox Christian believers buy new textiles for this day and there is a very popular
saying “ letimket yalhone kemis yibetates.”This is one of the marketing days for
Ethiopians. For the same reason, almost all-domestic consumers buy products for New
Year, on weeding months, and on important events on family life. However, customers do
not have habits to buy products on seasons whether be it summer or winter. The weather
condition of the country is constant through the year (13 month of sunshine) can be
considered the best reason for independent consideration of buying habit on seasons.
Local customers prefer to face-to-face communication on buying a product. Mail order or
Internet use on buying is not preferable way to purchase textile. Because consumers need

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Consumer's
to see the products physically and there is not enough access of Internet especially in
rural areas.
The following are the usual and highly preferable means to buy a product:
In Fair and Exhibition
The demand of cloth is high. The society mostly believes that exhibition brings low
price and new products. Therefore, they tend to buy products.
In known markets
Open market is the outmost market area all over around the country. Consumers are
not usually use modern market places such as supermarkets. However, all cities have
large supermarkets and some customers, especially educated persons prefer them. There
is no textile supermarket in the country at all.
Street vendors
Today, street market is becoming popular market place in urban areas. Any person can
purchase different textiles there. Moreover, it has been longer time known places serve as
good marketing places in urban and rural areas. For example, churches. Respondents say
customers usually buy products in fair, in known markets, from street vendors, and
around known places.
Ethiopian marketers spend money each year on advertising, and have many forms and
uses. However, it is in its infancy stage. Domestic consumers are highly receptive
towards advertisement and promotional activities. They need to know about what, where,
how, and how much to buy is the reason. It is true that watching television program or
others involves exchange something of value for something the consumers’ needs. The
need is information or relaxation. In concise, people want to know more about what they
buy. Because of this they are highly expose to media and other promotional materials. All
respondents agreed the consumers are highly receptive towards advertisement.
For a consumer to make a decision, a choice of alternatives must be available. Since
textile is not like ‘prescribed medication’ and there are different type of textiles as well as
there are different market places, consumers have a strong choice between making a
purchase and not making a purchase. They have also a choice among different products.
Ethiopians consumers need to choose what they thought to buy. Every purchase can be
influenced by acquired needs. However, they need supportive idea, approval, or common

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Consumer's
understanding from close friends, families or other persons. This indicates that consumers
have more than one reference group. There are several reasons that local consumers allow
other people to guide their consumer behavior. These are, among the others:
♦ They need information to reach a purchase decision
♦ Consumers can buy and use their purchases to make a statement about the image
they want to project
Urban local consumers can be considered as the most stylish and have a good taste.
Fashion plays an important role in purchasing decisions in particular for women. These
aspects led to a tendency to enjoy cheaper, comfortable, and practical textiles. A more
attitude to colour, design, and decorate products resulted an increased focus on imported
items. This driven by a desire for individuality, comfort, and expression of personality.
Another important factor for such desires is the more young population in the country and
families are highly imposed on decision to purchase a product by their sons or daughters.
Aesthetics of a fabric are a primary concerns for customers. Regularly, young consumers
are looking to life style brands. Notwithstanding, rural consumers are conservative on
fashion, color design, and comfort to buy a textile and new products take time to be
preferable. In most cases, relatives who live in urban cities advise them to buy fashion
products. Sometimes they are reluctant to decide. In the other hand, since they buy
products in urban markets, these make the demand of fashion items is high in general.
The trends are the following:

 Quality and fit remain the most important criteria
 The feel for comfort and simplicity will bring extensive use of textile
 Apart from real textile, which looks almost real, is becoming popular
 The interest of consumers in natural materials has a positive effect on sales
 Consumers need any thing that is new in the market
 Women are not very critical concerning price
 Changes in fashion are frequent in the textile sector
 Beyond the basics of fashion and style, the perception of good fit from the
consumer be on of the preferences

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Consumer's
 Many consumers, particularly female, feel somewhat personally inadequate when
clothes do not fit properly
 Posture, back curvature, hip position, bust shape, and legs are considers in
choosing of clothes
The color wheel in Ethiopia

 White: The color of weddings
 Black: The color of funerals
 Red: The color of warnings
 Yellow: The color of hope
 Green: The color of Environment
Men prefer blue, gray, and yellow colors. Women prefer red and brown. Both
need black, pink, and purple colors. Colour plays a dominant role on textile market. Local
consumers need black, purple, pink, stripes, and different shined textiles. This is just
based on respondents.
As a matter of course, consumers in Ethiopia are more interested in textiles and

cloth. Clothing is the first priority in housekeeping budge next to food and expense of
health. However, as soon as time is becoming hard, expenditure on clothing is reduced.
This attitude has created a good environment of sales and price reductions, which have
become the best strategies in the competitive retail market. The need to buy in street
vendor or low price shops raise.
Ethiopian customers buy products for the purpose of the functional value of the
products. Moreover, they highly use clothes for expressing personality in rural and urban
areas.
Additional reasons for the high interest towards textiles by Ethiopian consumers are:
 To decorate their homes

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Consumer's
 To celebrate holidays and family’s important days
 Desire to be smart
 Desire to be modern
 Desire to be young
 Personal satisfaction
 Positive state of mind towards fashion and style
 Good stance towards cloth
It can be concluded that consumers tend to be more rational in their purchasing of

textiles. This is why they buy products at holiday and weeding days. Be known it, two
consumers of the same age, same family, and same income have different product
preferences. This is because of:
 They vary in both background characteristics such as valves and

psychological characteristics
 In the way they use behavioral processes to complete the activities
It is known that Addis Ababa is the central economic, social, and political place in
the country. According to the latest estimation, the population of the city is around three
million. This resulted in high demand for textile. Because of illegal products imported, in
the East of the country, the demand for products in particular local is prone. The demand
of textile is high in southwest cities and rural areas especially coffee growing areas. In
addition to this, northwest and east areas requests textile in high quantity. The reasons
behind these are spending pattern, good harvest seasons and land, growth employment,
and living standards. Dire Dawa, Mekele, Bahir Dar, Gonder, Jimma, Netheret, and
awassa score the highest demand among the cities. High population and living standards
are the reasons. The following tables show this trend.
Table 3.6 Textile demand among the regions

Addis South North East West North South South North

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Consumer's
Ababa east west east west
Low X
Medium
High X X X X X X X X
Table 3.7 Textile demand among the regions

Dire Mekele Bahir Gonder Dessie Jimma Natherethe Awassa
Dawa Dar
Low
Medium
High X X X X X X X X
Local textile products

Local products are comfortable and good for health. This is the fact that the products are
made of cotton. It is known that cotton clothes are good for health and expensive in
price.However.local textiles are low in price due to raw cotton grown and produced here.
On the other hand, local textiles have low quality, durability, design, attractiveness,
packaging, and finish. They are not available at high quantity.
The reasons are the following:
 Ignorance on quality and cost control measures
 Absence of systematic marketing and product innovation
 Old technology
 Low capacity
 Low labor productivity
 Low in Research activities
 Inadequate design schools
It has been found that domestic textile products are useful for making clothes in
rural areas and they are rarely useful for cities. However, most textile factories produce
products for the use of uniforms and working clothes. Local textiles also use for curtain
and other household need. Local T-shirts are highly produced and sold in foreign and
domestic markets.

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Consumer's
Moreover, the local firms produce textiles for a purpose to make traditional
clothes (yarn), and to other export products such as T-shirts and bed linen. On the other
hand, more respondents added that from the viewpoint of the factors of consumers’
demand of
◊ High quality
◊ Competitive prices
◊ Wide selections of products and
◊ Quick response to changing needs
Domestic products have stumpy performance as compare to imported items.
These indicate that their futures, the target to satisfy customers, and value creation are
very derisory and have low successes. The following are the grounds:
 Products do not have unique futures
 Lack of research and development
 Lack of finance
 Lack of training
 Inability to remain competitive
 Inability to develop a means of product differentiation
 Inability to meet customer expectation
In most cases, firms could not understand consumer’s perception of physical

comfort, psychological comfort, and appearance which all impact the consumer decision
process.
Homes, offices, hotels and others require large quantities and variety of textiles to
update their interior environment. In household textile products, includes: blankets,
pillowcases, hand and bath towels, tablecloths, and kitchen and glass cloths. Others
textiles, which are used for: window coverings, upholstery, decorative pillowcases, and
ceiling coverings.

5
Consumer's
Consumer expenditure on household and other textiles increases each year. The
positive developments in the household and other textiles in Ethiopia are the result of
some factors, like:
 Economic, such as rising employment and consumer confidence
 Intensive price competition among retailers
 Growing imports from low-cost countries
Textile for expenditure on household and other textiles comprise a wide range of
products: from traditional made to very modern textiles. Customers are willing to spend
money to decorate their houses, offices, or hotel interiors based on the current fashion.
Specially, the need rises dramatically in holiday and weeding days. Young consumers
have a great interest in more fashionable interior textiles. Even if rural consumers and old
people of city inhabitants need to update their interiors, they are highly conservative in
buying fashioned textiles.
Observation summary
This summarizes the survey of the distributors opinion and market observation
based on the interview guide.
 Most consumers do not look at the label before they buy textile, and follow the
instructions on the labels when washing clothing
 Most consumers do not have habits to read care labels before making a purchase
decision
 Care instructions do not affect local consumers impressions
 Most consumers do not want to buy easily color fade textiles even if they are
fashioned and modern
 Fabric content
100% cotton textile consumers need such of type textile because of its
appearance, attractiveness, and absorbency. It is
good for health, comfortable, and expensive in price.
It needs care on using and washing .It can be easily
shrunk.

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Consumer's
100%polyster It can not be easily shrunk and it is cheap
in price. Consumers need it because of its price. To
be frank, it is not good for health. It creates warm on
body in warm times and the same characteristics for
Cold weathers.
Blend Most textiles sold in the country are made of the
blend-cotton and polyester. Clothes made of these are
cheap in price, attractive, and not that much need
care on using and washing.
 Consumers need flame resistant fibers; and less shrinkage textiles when
wash
 Consumers spend more time and effort searching for information when
purchasing
 Young consumers tend to believe that price is a good indicator of quality
 Consumers learn from past and present purchase experiences. It extremely
affects upcoming purchase.
 Women consumers are more likely to credit when making purchases.
 Young consumers buy the same clothes and dress or update their houses
the same way as a celebrity, peers, or attractive persons.
 Local consumer behavior includes influencing others, using the product,
complaining, and disposing of the product and watching television
advertisement and many other activities.
 Overall, given the choice between two similar articles of textile,
consumers prefer to buy the one, which is new, low price, and fashioned
products. In addition to this, they need and prefer brand familiar products
in most cases. The respondents agreed that they response quickly when
price is reduced. It is noted that the study confirmed that most consumers
important purchase criteria are price, easy care and durability.

5
Consumer's
 Most household textiles are the following:
Bedding, bags, curtains, furniture coverings, towels, table clothes, and Drape.
Flags and umbrellas are high demand in the country. Flag marketing in
national ceremonies as well as sport games especially in Olympics it has high demand
and has good profit. Almost all women buy umbrella on rain seasons. Some men also buy
it in the same seasons.
Ethiopian customers needs

To fully satisfying customers contemporary requirements it asks a sound understanding
of what products, sales and marketing attributes customers expect and need. On
indication, it identifies with why they make or do not a particular purchase. On this
common sense, the needs of different local customer types are summarized as tag on:
 The benefit that the customers seeking from the product are two fold:
 Tangible: texture and shape which make it easy to use
 Intangible: Appearance and absorbery which the product brings
 The customers have any other needs, which are related to the products like:
 Knowing how to wash
 Understanding how to use the products
 Consumers seek brands with which they are familiar rather than risk using an
unknown supplier
 Local consumers wishing to buy different textiles for some purpose, definitely
they need to purchase all of the items in one store if the store stocks all the items.
As any one recall, a family is made up of multiple consumers who collaborate to

complete the steps necessary to purchase and use a product. The following table
illustrates the roles family members play in reaching family consumption decisions.
Roles played by family members in Ethiopian household textile consumption decisions

5
Consumer's
3.8 Ethiopian Family consumption decisions on textile
Role Description Example

Initiator Recognized need Wife hears or sees about
fashioned or new products
Influencer Searches for alternatives Husband watches television
and information to use or hear from his wife
evaluation
Decider Responsible for the decision Husband decide to buy a
product
Purchaser Purchases a product Wife picks up a product
User Uses the product All the family
Overall, consumer’s need

⇒ Basic clothes that guarantee survival
⇒ To be protected against textile those are hazardous to health
⇒ To be given the facts needed to make an informed decision
⇒ To have access to a variety of products at a competitive prices
⇒ To a physical environment that will enhance quality of life.
"To be a bullfighter, you must first learn to be a bull."

Spain Anonymous
4. Recapitulation of the study

4.1 Discussion summary

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Consumer's
To summarize and make it all work, what the study identities and marks the most
valuable result of analyzing the operating environment of an understanding of the
composition of a firm's customers. The study provides a framework for under standing
feed back effects from consumers' preferences thought distributors opinion and
observation of the known market places.
In developing a profile of present and prospective customers, managers are better
able to plan the strategic operations of the firm, anticipate changes in the size of markets,
and allocate resources supporting forecast shift in demand patterns. Four principal types
of information are useful in constructing a customer profile: geographic, demographic,
psychographics, and buyer behavior, as illustrated below in the table.
Summarized local customer profile on consideration of textile in market
Type of Information Factors Typical breakdowns
Geographic population urban
Density 70 million (large customer)
Urban 20% rural 80%
Demographic Age Young (most)
Sex Equal ratio (female more buyers)
Income between 150-600 birr
Occupation Rural – Farmers / Urban – workers
Psychographics Autonomy Independent
Conservatoire Rural- conservatives/Urban- liberal
Buyer behavior Usage user Heavy user
Readiness stage Tier and interested
Benefits savant Economy status
End use Diverse with the product
Brand loyalty Light
Marketing Factor sensibility Price, Durability of the product,
Advertising, and better service
Generalize the study is able to find the local consumers need as well as it is able
to explain some of the mixed problems of local products that deter them to get better

5
Consumer's
market in local and abroad. It also tries and identities and manufacturers tendencies in
texture businesses.
In a brief summary of consumers’ profile, the findings and observations are
summarized as follows.
Fundamental marketing concepts Descriptions

Most buyers and consumers Young, special women
What they want. Simple and attractive textiles
What they Expect New and low price products
Exposure to fashion & Advertisements. High
Market places. Urban known markets
Decision to purchase Take time and gather information to decide
A Great value Color, fashion, and style
Care instructions liable, old fashions Almost no valve
Purchase time On holidays, weeding, and special affairs
Table 4.1 Consumers Profile
Study conclusion
The purpose of this study is to investigate the consumers’ preferences for textiles.
It also further went in to seeing the tendencies of local products as compared to imported
products.
Although the main aim of study is as stated above, it does not claim to have
exhausted all the preferences of the consumers. It does not clime to have exhausted all the
textile products. However, through investigation of the consumers need and its impact
has been made through this research and this has enabled the marketers to come up with
valid and reliable outcomes that could later be used for further research in this area.
The findings obtained through in depth inter views with distributors, sales
persons, and some customers as well as questionnaires are presented, summarized, and
analyzed using both quantitative and qualitative methods.

5
Consumer's
Generally, the consumers preferences is the most prominent one for making a
patter profit as well as to satisfied consumers need. Age, sex, family, and income have led
the consumers to make a particular purchase decision.
Following the analysis of the findings, the central marketing concepts in this
study can be put in the following summarized points.
A. The preference of consumer can give us insights into why an individual makes a
particular purchase.
B. Consumers face conflicts involving how much time and effort to spend on
decision to achieve the best results.
C. On any given occasion, a consumer can be an influences, purchase, and / or user.
D. The important key stresses here are that consumers' preferences are influenced by
several factors.
E. The final insight recognized that consumer behavior differs for different people.
This assures that the process by which we identity meaningful target groups with
in a larger consumer market are extremely important.
Core conclusion marks
Conclusion preferences can range widely for effort given to the choice and in
time. The study tells us what type of textile they buy and when they buy it. An the
findings of this study disclose, the core findings of the study put us follows in the table:
Consumers’ preferences

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Consumer's
To Products - New fashionable textiles
- Purple, pink, stripes, and different shined textiles.
- Simple and comfortable textiles
- Natural materials (100% cotton textile)
- Flame resistance fibers and less shrinkage textiles when wash.
To Price Low
Top Advertisement To know more on the product plus to know fashion
To Distribution Good service, advice, and quantity
4.2 Consumers preferences to products, price advertisement and distribution.

Further Conclusion marks
- On the study, the stated important demographic trends are very important for
marketers and they created some ways marketers use the explained demographic
information in making decisions such as choosing retail site locations and
choosing advertising media. For example, see the table below.
Table 4.3 how marketers use family’s role in purchase Decision

Focus on Need Reason
Advertising Wife New products Initiator
Husband To encourage Decider
decision
Wife Packaging set of Purchaser
Retailer location Wife Select place Purchaser
convenient to wife
-This study states that firms (local companies) must to match their products to meet the
needs of potential customers. Thus, understanding the analyzed consumers preferences is
crucial for marketing success. by means of in marketing, a set of management decisions
conclude in what has came to be known as the marketing mix. The study indicated
marketers can know develop and formulate their marketing mixes.
The following table shows this trend

5
Consumer's
Old mix New Mix
Products Drop Focus on Young and women
Need Continually develop fashion products
Strategy Some very substantial changer
Participants Marketers, designers, engineers
Manage Competition
Price Good Continually Considers consumer response

Place Need change Focus on Service, delivery time and quantity
Problems Creating good business relation
Strategy Try to making business partner of Distribution and
retailers
Promotion Needs change Focus on refer the above table
Table 4.4 marketing mixes

The funding of this study divides the consumer in to meaningful buyer groups who
signify opportunities for distinct marketing programs. It plays the primary role in the first
point of market segmentation .In helping marketers to make a good decision, it is
providential that the research actually discloses there types of classification.
- Group characteristics of the consumer
- Benefits sought
- Behavior of the consumer
Table 4.5 Grouping consumers in to meaningful buyer group

Group Description Benefit sought Behavioral measures

5
Consumer's
Sex Women A convenience oriented shopper High quality in cloth Buys fine clothing offer
Men Active decider Price oriented buyer Not loyal
Location Rural Huge market but low in come Conservative Loyal
Urban Activity buyer but small in New fashion clothes Not loyal
number
Learning about the consumer market represent a first step for a host of managerial
decisions, ranging from investment in new plants, to hiring workers, to planning
advertising campaigns. Thus, the study helps marketers to know about
Market composition
- Who Young, female, urban, inhabitants newly, married, and
Young working live with
- Who does not Old, men, rural, inhabitant married couples with children
Market trends
-What will the future bring - consumer satisfaction
-Attractive business profit
- Involvement protection
- Society gets benefit

Market Location
-Where are the buyers -In the main market places
(Consumers need face-to-face communication)
Recommendation
Thirty years back Car. H. poedtke wrote a very fine article on Management Advisor. He
said

5
Consumer's
''Each morning's headlines each evening's news broadcasts, remained us once again that
we live in a world of accelerating true any change. Things that have been taken for
granted for years are not necessarily true any longer. To quite the rule of Siam in "The
king and I', 'when I was a boy, world was better spot. What was so was so, and what was
not was not. The king's plativelament could very well be the most enduring truth of our
time. That truth has meaning to each of us in the business community, aside from our
concern as citizens.
That article on its special underling says
'' The rapid changer is politics, in economics, in society itself, are inheritably reflected in
the business work. This means that old methods that once worked there are so longer
necessarily valid. Perhaps it is time we all restructured our thinking.
Thus, we all must fast to restructure our thinking to be a part of a global market .The
market that is very complex in the fast moving world. The question here is that what to
do we restructure, but not when do we restructure, because it has a very fast answer, now.
The restructure things must follow on the responsibility to the customers. With out them
we would have no reason for being. We strive to appeal to a broad spectrum of
consumers, catering in a professional manner to their needs. The thinking to words to the
customer includes a wide selection of quality produce profiling reseanable price and
delivery products with courtesy and professionalism.
Now, the study indicated that local marketer must shape are reshape their strategies to be
effective and efficient in practical market. To be a modern professional marketer the
marketers must understand how consumer will respond to different product features
prices, and advertising appeals.
Understanding consumers’ preferences is complicated for markets with in the borders of a
single country. For products that have high demand in international market,
understanding and serving the needs of consumers can be disheartening. This is because
consumers in different countries have different values, altitudes and behaviors. It is
necessary to recognize such differences and adjust the product and marketing programs
accordingly.

5
Consumer's
Therefore, in our country textile marker practices all marketers must organize and do
their best on the reshape of the existing marketing strategies: This plan can be better
called as "flexible restructuring" (F.R). Why?
The changes in Demographic trends can have an adverse impact on demand. Ever
increasing in fashion and tastes can have a great and unpredicted effect on organizations.
Beyond doubt, textile market is a superior and magnificent exemplar in this fact. More
outstandingly, today's incrustation concern about information technology and its result ( a
better access to relatively accurate information),companies could be highly affected by
the consumers' awareness and instantaneous changes of consumers' preferences.
Correspongly, marketers especially textile industry which is one of the results of highly
developed technology can have a great chance to change radically with a change in
different factors. Due to this fact, companies will face the problem of rising in consumers'
preferences in particular and marketing in broad. The need to search ways of establishing
priorities may be the concern of all companies. Managers may or may not understand that
they live and operate in extremely dynamic environment.
Nevertheless, the concern now is that much different from the preceding ;we are just in
different world.Therefore,to share the global market and to compute with excellent
companies, it is a must and the outstanding choice t adjust and review the existing
strategies with a nonstop improvement as per changes.
-------------------------The End---------------------------
BIBLOGRAPHY

5
Consumer's
- Alan H. Anderson and Thelma DOBSON, (1998), first Indian edition," Result
oriented marketing", efficient offset printers, Delhi, India.
- Avraham shama, (1993) "Marketing strategies During Recession; A comparison of
small and large firms: Journal of small business management, Vol. 31, No. 3
- Carl H Poedtk,(1974)”putting it altogether “Management Advisor "July August
- Dale M. Lewison and M. Woyne Delotier (1989) "Retailing', 3rd edition, Merril
publishing co, ohio,
- Donald J. Bowersox (1972) "planning physical distribution operations with
Dynamic Simulation," Journal of marketing, Vol. 36, No. 1 - 4
- David Arnold (2002), " Seven rues for international distribution, "Harvard
Business Leview, Nov – Dec 2000, Vol. 58
- David Clutler Buck (1976) "selecting the right Agent", International Management,
A MCGraw – Hill publication
- David J. Luck (1969), "Inter faces of a product manager", Journal of marketing,
Oct. 1969 Vol. 33
- David mercer, Book 10 "you and your customer" open Business school, The open
university, The Alden press, oxford, UK, 2000
- David A. Boug and Alida Stmalchian (1988) "Market vulnerability and the Design
and the marketing function is small firms, "Jor of small buss. Mang. Vol. 26, No
4.
- Douglas M. Lambert and James R. stock, (1978) "physical Distribution and
consumer Demands," Business Topics, Michigon state university, Vol. 26, No 2
- Eugene W. Anderson, Claes Forneu, and Donald R. Lehmann, (1994) "customer
satisfaction, Marketshare, and profitability; findings from Sweden," Journal of
marketing, July 1994 Vol. 155, No 3 Ethiopian Export Promotion Agency, (2003)
"The study on Ethiopia Textile and apparel sub-sector;" by product development
and market research, March
- Engel, Blackwell, and Miniard, (1993) "Consumer behavior" 7th edition, The
Dryden press Harcourt Brace Jovanovich, USA
- Ethiopia Export Promotion Agency (2003) “The study on Ethiopia Textile and
apparel sub-sector,” by Product development and Market research

5
Consumer's
- Gregory C. McLaughlin, (1998) Total quality in Research and Development,"
vanity Book international, New Delhi,
- Leon G. Schiffman and leslie lafar Kanuk, (1997) " consumer behavior", prentice
Hall, inc, New jersey,
- Louisw stern and Frederick D. Studivant, (1987) "customer driven distribution
systems, "Harvard Business Review, July – August 1987 Vol. 45 No 4
- Flemming Hansen, (1976) "Psychological Theories of consumer behavior,"
Journal of consumer Research, Vol. 3,
- Hawkins, (1998) "consumer Behavior implications for marketing strategy," 5th
edition, Richard D. Irwin, Inc, USA
- J. Paul peter and Jerry C. 0150n, (1996) "consumer Behavior," 4 th edition, Richard
D. Irwin, A Times Mirror Higher Education Group, Inc. Co.,
- Jonathan D. Hibbord, Nirmalya Kumar, and Louis W. Stern, (2001) amining the
impact of Destructive acts in marketing channel Relationships," Journal of
marketing Research, Vol. 38 No.1,
- Joseph P. Guiltinan and Gordon W.Paw (1994),"Marketing Management," 5th
edition, McGraw-Hill, Inc.
- Malcolm McDonald, (2002) Marketing plan," 5th edition, Butter worth-
Heinemann, oxford,
- John P. Marry, Jr and Jan B. Heide, (1998) "Managing promotion program
participation with in Manufacturer-Retailer Relationships," Journal of marketing
Vol. 62 No. 1
- Malcolm Warner, (1996) "International Encyclopedia of Business and
Management, Routledge, New York,
- Mitsuaki shimaguchi and William later, (1979) "Japanese Distribution channels;
Invisible barriers to market Entry, "Business Topics, Michigan state university,
Vol. 27, No 1 winter
- Ministry of Finance and Economic Development of Ethiopia: SDPRP July 2002
- National Bank of Ethiopia Quarterly bulletin 4th quarter, 2003/04)

5
Consumer's
- Norman L.Barnetl, (1969) "Beyond Market segmentation," Harvard Business
Review, Rechard M.Hill, (1963) "whole saling Management," Richard D. Irwin,
ICC. Home luood, Illionis,
- Rechard S.Lopato, (1969) Faster pace in wholesaling," Harvard Buss. Rew. July
August 1969 Vol. 14015 No 69408
- RAVI DHAR, (1997) "consumer preference fro a no choice option," Journal of
consumer Research, Vol. 24, No 2
- RAV DHAR and Steven J. Sherman ,(1996) "The effect of common and unique
features in consumer choice," Journal of consumer Research, Vol 23, No 3
- Robin T. Peterson, (1991) "small Business usage of Target Marketing," Journal of
small Business Management Vol. 29, No. 4
- Wendeu M. Stewart, (1965) "physical Distribution key to improved volume and
profits, "Journal of Marketing, Vol. 29
Important Web sites
- www.appareassearch.com/glossary-y.htm
- http://www.kurtsalmon.com

5
Consumer's
Department of Management
Faculty of Business and Economics
Addis Ababa University
Subject: Requesting pertinent and accurate information about textile consumers for the
study of Consumer's preferences for textiles: A study of Distributors Opinion
Dear Sir /Madam
It is known that knowing what consumers needs and wants makes any company
profitable and wealthy.particularly,in the fast moving industries like textile sector it has a
double marit.Priority to all of the things it helps to know the marketing strategies, plan
and procedures.Secondly,it helps to utilize scared resources efficiently and effectively in
the modern business activities.
Thus, this study is aiming to enhance our country textile market by countering the above
objectives. The survey is being conducted to assess consumers' preferences for textiles
with the view of suggesting better ways that increase the marketability of the products.
The ultimate result of this study will enable companies to formulate effective marketing
strategies on their significance of consumers, wholesellers, distributors, retailers, and also
to their companies with in the dramatically increase of consumers preference such
researches have multiple purpose.
To be frank, the work is done in partial fulfillment for B.A Degree in Business
Management study. To this end, I am keen to receive your responses. So, please make
effort to return the completed questionnaire in your earliest convenience. As always, you
will do all your best. Thank you in advance for your cooperation.
Sincerely yours,
Daniel Tesgaye
Prospective Graduate

5
Consumer's
My Dear Sir/madam, you are not required to write your name.please, X against the
appropriate choice. You are requested to write your own opinion based on your skill,
exprience, and knowledge in the sector. In the context of this questionnaire product
means all textile products. To remain you, there are general questions that will help to
know the reliability of the information. Again thank you very much for your entire
cooperation
General Questions
A. About your organization
1. How long has your organization served as distributor?
1-5years____ 5-10years____ 10-15years____ More than 15 years_____
2. Number of employees_____
3. Average annual turnover of your company_______
4. Where is your company located?
5. What type of products does your company sell?
B.About the respondent
1. Work experience in the field (textile)
0-1year___ 2-5years___ 6-10years__ 11-15 years___ Morethan 15years___
2. Marketing knowledge of the respondent
Only by experience_______ Experience and knowledge on marketing______

Any other, please specify__________________________________________
3. Education
Below 12th Grade______ 12 th Grade_______ Diploma____ Degree_____

Masters Degree________ Any other, please specify__________________
4. Sex
F___ M________
Respondent ID Number______

5
Consumer's
Main Questions
1. What type of consumers comes to your shop?
Average monthly income: Less than Birr 250_____From Birr 250 to 600_____
From Birr 600 to Birr1000_____
From Birr 1000 to Birr2000_____
More than Birr 2000_________
Sex : More men____More women ____Both equally_____
Women MEN
Young
Medium age
Old age
2. Most important purchase criteria among Ethiopian Consumers for textile products (on
percentage base_____%.)
High quality (A good fit and comfortable)________%

Durability (will last / wear well)________%
Value for Money (Reasonable price for the given quality)______%
Good price / Quality _______%
Cheap price products________%
Past experience with products______)%
Any other, Please specify_________________________________
3. What do you think is percentage of income that your consumers spend on clothing?
Less than 150 Birr__________ Between Birr 150 to Birr 300 _____
Between Birr 301 to Birr500 _____ Between Birr 501 to Birr 1000_______
Between Birr 1001 to Birr 2000______More than Birr 2000_______
4. Which products do customers prefer to buy in your shop and why?
Products preferred in your Rank How much they buy Why

shop
High Medium Low
Bed Linen (Bed sheets,
pillow covers, etc)
Cloth
Men’s clothing
Women’s Clothing
T-shirts pullovers
Babies clothing

5
Consumer's
Poplin
Towel
Twill
Drill Gray
Yarn
Any other , please specify
GENERAL CONSIDERATION ON PRODUCTS
What is the importance of textile for your business?
Types % Sales volume % Profitability

High Medium Low High Medium Low
Textile
Garments
Shoes
Any other,
please
specify
5. Frequency of buying textile products by consumers
Less than 3 months_______Every 3 months______Every 6 months______

Every one year_____Every two year_____Any other, Please specify_______________
6. When do costumers buy products?

On Holiday day_________On Birth day________On weeding Months________
On rain season’s _________On Hot/ Wind seasons_______For New Year _____
Any other, Please specify_____________________________________________
7. How do customers buy products?

In fair and exhibition _____In known markets_______From street Vendors_______
In any outlet_______Around Known places like church______
Any other, please specify________________________________________
8. How receptive do you think customers are towards advertisement and promotional
activities?
High___Medium_____Low____Anyother, please specify_________________

5
Consumer's
9. Who do you think are the main influencers of the customers purchase decision?
Friends_______ Neighbour_______Family______Sales persons________

Any other, please specify __________________________________
10. What are the tendencies of customers for?
Features High Medium Low

Fashion / style
Co lour
Design
Comfort
11. What type of coluor Ethiopian Consumers mostly prefer?
Consumers Blue Yellow Red Brown Black white Gray Pink Green Purple Any
other,
specify
Men
Women
12.How are local products compared to that of imported products?
Comparison Features High Medium Low

Quality
Price
Comfort
Durability
Design
Attractiveness
Packaging
Quantity
Availability
Stitch
Finish
13. Ethiopian Consumers a (_____Less____Medium_____High) interested in textile.
14. Which plays an important rule in purchasing decisions?

Good Fashion Style Color Price Quality Any
taste other,
specify
Men
Women

5
Consumer's
15. Ethiopian Consumers buy products for the purpose of
Expressing personality___________
Only for functional value of the products________
Both of them_______
Any other, please specify___________________
16. Please express your opinion: Two Consumers of the same age, same family, and same
income
Differ in life style__________ Reflect different buying habit________
The same product preference_______Different product preference______
Spending equal amount___________Any other please specify___________
17. Do you distribute your product to regions? Yes_____No______
18. A) If yes, which region consumes more textile products? (If you can , please rank it)
Addis Ababa___South_____North____East_____West_____
North east____North west______South west______South east_______
B) What is the reason for the above answer?
High Consumers_______Growth employment_________Wealth_______
Spending pattern_____Living Standard______Any other, please specify______
C) Which city consumes more textile products?
Cities How much is consumed? Reason

Dire Dawa More /Less
Mekele
Bahir Dar
Gonder
Dessie
Jimma
Natherethe
Awassa
Any other,
please specify
19. Local consumers have (Low___High__) attitude for Ethiopian products.
20. Consumers tend to be (More___Less__) rational in their purchasing.
21 In general what do you fell about the existing textile market in Ethiopia? Do you have
any additional comments? Please, do not hesitate to give your entire suggestions
which help the study a lot.
Thank you on your decision to write your opinion

5
Consumer's
Interview Guidelines
1. Do you have access to know consumers behavior?
______________________________________________________________
______________________________________________________________
__
2. What type of connection do you have with consumers?
______________________________________________________________
______________________________________________________________
__
3. What do you observe on consumers impressions?
______________________________________________________________
______________________________________________________________
__
4. What do you think about cloth preference in Ethiopia?
______________________________________________________________
______________________________________________________________
__
5. What do you observe about different fabrics?
______________________________________________________________
______________________________________________________________
__
6. What are additional consumers needs?
______________________________________________________________
______________________________________________________________
__
7. What are the important purchase criteria of consumers?
______________________________________________________________
______________________________________________________________
__

5
Consumer's

5

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Department of Management

Faculty of Business and Economics

Consumer's preferences for textiles:

Consumer's preferences for textiles: A study of

A senior Essay submitted to the Department of management,

Faculty of Business and Education, Addis Ababa University,

Addis Ababa University June, 2005

 What consumers want?

 Why is individual attracted to one product but not to others

 Why do consumers spend frugally or more?

 How does advertising really work?

 Are Knowing consumers’ needs important? and more other questions.

Really, it is the wonderful mirror of an individual life.

Addis Ababa University June, 2005

Addis Ababa University June, 2005

Addis Ababa University June, 2005

Addis Ababa University June, 2005

Addis Ababa University June, 2005

1.2 Statement of the problem

Addis Ababa University June, 2005

Addis Ababa University June, 2005

As indicated, the ultimate significance of the study is to direct consumers needs to

Addis Ababa University June, 2005

1.6Sampling methods and procedures

Table 1.1 Selected Factories and Distributors

Data collection methods

Depth interview of key informants

Addis Ababa University June, 2005

1.7 Scope and limitations of the study

1.8 Study organization

Addis Ababa University June, 2005

1.9 Time – Table

Addis Ababa University June, 2005

Addis Ababa University June, 2005

Addis Ababa University June, 2005

Addis Ababa University June, 2005

They advise as follows:

Addis Ababa University June, 2005

Addis Ababa University June, 2005

Addis Ababa University June, 2005

2.3 Customers, service, and satisfaction

Addis Ababa University June, 2005

Addis Ababa University June, 2005

Addis Ababa University June, 2005

Addis Ababa University June, 2005

Addis Ababa University June, 2005

Addis Ababa University June, 2005

Addis Ababa University June, 2005

Addis Ababa University June, 2005

Addis Ababa University June, 2005

Socio – Economic Performance during the 1990s

- Adjustment polices focused on liberalization of prices & markets, removal of

- Increase in health coverage from 49% in 1995/96 to 52% in 2000/01.

- Rural areas are still the center of mass poverty.

Addis Ababa University June, 2005

Ethiopia: Macro economic and social indicators

Natural rate of population Increase (in %) 2.7 2.7 -

FACTS ABOUT TEXTILE FABRICS IN ET`HIOPIA

Addis Ababa University June, 2005