Consumer Preferenceand Industrial Policy in Eastern Ethiopia

The Case of Pasta Market in Dire Dawa City

Muhammad Hamza Ali*and Banbul Shewakena

Dire Dawa University-Ethiopia

The study is sponsored by Dire Dawa University –Ethiopia- 2018

Abstract

The empirical studies indicated that consumer’s preferences affect the process of policy
formation and implementation especially in the countries in early step of implementation like
Ethiopia. Therefore this study has dealt with degree ofpasta market power, factors affecting
choice of pasta foods, and welfare effect of opening pasta market in the region in line with the
industrial policy and Regional economy of Eastern Ethiopia.The study targeted 299 samples
households living in nine (9) kebeles of Dire Dawa city. Primarily data are gathered randomly
using structured survey too. Inferential statistical techniques were utilized particularly ANOVA,
t-test to address the objectives.

In the study it is found that, given theirhigh price, the imported pasta foods particularly BAHR,
GOLDA and ROZA have taken the pasta marketpowerin Eastern Ethiopia.We also found that,
because of lack of market power/preference, large amount of social benefits have been lost in the
area - Birr 89,700 per month and Birr 1,076,400 per year.Since the welfare loss is too large, and
market power is taken by foreign foods, itis advisable for policy practitioners and business firms
to consider important attributes of food items which strongly affect food preference thereby
market power such as Safe for cooking, style /design, sweetness, and safe for eating.

Key words: Dire Dawa, market power,and welfare loss, pasta types

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 1. Background

In the global world we are living where crises deepen and competition gets fierce, consumers are
becoming more and more important (Durmaz and Sebastian,2012). It is believed that the
consumer’s behavior to local produced goods and services is considered as key determinants of
the economic growth and development of a nation (Shapiro P, 2013). Studies indicated that
consumers have been exposed to foreign alternatives for domestic made products and foreign
products due to the increase in imported goods and high competitive consumers markets in
Africa.

Robert A .and Patrick A (2009) indicated that consumers have been demanding the same quality
of goods available in developed countries due to increased travel and education as well as
improvements in communication such as the global-spanning television network and the internet
as a convergence of taste and preference (Saffu and Walker, 2006).

Consumers, for example, in Europe (like Germen) and U.S have an increasing preference to
regional foods than others. This was due to the cognitive and normative factors as Meike et al
(2007) confirmed. However, most consumers in developing countries have greater preference to
foreign foods than to locally produced foods. For instance, the study conducted in Nigeria
(Omotayo O. 2009), Ghana, (Shapiro P, 2013) Ethiopia (Siraw M. 2014) and Tanzania (Nanzia
F, 2014) showed strong consumers’ demand to foreign products than locally produced products.

The switch of consumer’s preference to foreign made foods forced policy makers and business
decision agents to deal with consumer’s behavior as it has great influence in the expansion of
industries and macroeconomics of the country.

Though a numbers of reasons had been attributed to consumer’s shift towards foreign made
foods, technologically advanced, stylish and competitively priced, taste , superior quality,
imported brand names, awareness about the imported products , sense of proud and group
references were taken as major causes (Omotayo O, 2009 , Shapiro P, 2013 and Nanzia F,
2014).

On the other hand Gideon et al (2014) and Musa et al (2013) pointed out that poor packaging,
price. Flavor and taste were the main reason which inhibits consumers’ choice of locally
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produced food item. Here it is important to discuss the reason why consumers in Dire
Dawaswitch from locally produced foods, and the inhibiting factors to locally produced foods.

In Dire Dawa City demand for pasta is too strong showing an incremental trend in the local
market especially for foreign pasta items. When the total demand of pasta/and macaroni is
compared with the supply in local market -during the period 1995 – 2005 E.C-big gap is
observed between the two, leaving the demand side to exceed. Thus the excess demand is
satisfied from imports of foreign pasta particularly from Italy, Yemen, Saudi Arabia, Turkey and
Egypt.

However, the increased demand for past products mainly attributed by population growth,
urbanization and growth in income (Dire Dawa project Profile,2013).The projection of
demandfor and supply of pasta also-during 2008-2020- supplemented that foreign made foods
will have an increasing market share in the local economy.

This could not only be due to shortage of the locally produced foods but also the paradigm shift
of consumer’s demand and preference towards foreign made foods. In our pilot survey (2015),
we found that most urban consumers have strong preference for foreign made foods especially
for ZAHRA, BAHR, AYAN, BEDRIYA, and ROZAthan locally produced pasta –VERA
PASTA.

On the other side, Dire Dawa city is the center of eastern economic corridor manifested by city
of industrialization, and destiny and main outlet of the country’s foreign trade. In the city, Varity
of industrial outputs are found including textile, food processing (like Pasta and sweet products),
cements, and other manufacturing industries.The city’s pasta and macaroni products are strongly
covering the large share of local food market in many corners of the country including Addis
Ababa and other parts of the country-but not in local markets of eastern Ethiopia.

Having reviewed other similar studies in Ethiopia, we examined the demand and perceptions of
pasta products in local markets believing that consumer’s preference affect the process of policy
formation/implementation especially in the industrial policy arena. Therefore this study has dealt
with strength ofpasta market power-competition, factors affecting choice of pasta foods, and
welfare effect of opening pasta market in the region in line with the industrial policy and
Regional economyof Eastern Ethiopia.

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Since industries in developing countries like in Ethiopia are not enough mature to compete with
foreign industries, producing the same type -but with poor attributes- impact the industrial as
well as the macro economy of the region of the country.

Thus, dealing with the demand and perceptions of pasta attributes help policy makers and
business decision agents to be well informed about consumer’s behavior and demand perceptions
about pasta and similar line of products. More specificallythe study help to examine the truck of
industrial policy of the country in line with demand of local products; the studyalso help policy
makers/practitioners in drawing lessons to other locally made products and pave way to the
realization of the industrial transformation; and finally the studyhelpspotential investors to
consider the characteristics of their promising clients together with attributes of competent
products in local markets.

2. Literature Review in Consumer Preference

Consumer purchasing decisions relating to foreign products are influenced by economic,
psychological and sociological factors. This multidisciplinary research attempts to relate such
scarcely studied variables as ethnocentrism and animosity to concepts taken from the
Relationship Marketing approach and Signaling Theory (trust and reputation, respectively).
Structural equation modeling was used to analyze the data collected from 202 personal
interviews carried out in a Spanish city. The results show that a firm’s reputation and consumer
trust are needed to establish business relationships involving consumers and firms from different
countries, whereas animosity can reinforce consumer ethnocentrism, decrease intentions to buy
foreign products and reduce trust in foreign companies (Nadia Huitzilin 2007)

Consumer demand for products of a specific origin can be a consequence of diverse reasons:
product dependency, country-of-origin image, similarities between countries, a country’s level of
development and/or consumers' beliefs, stereotypes and experiences (Cordell, 1992).A number
of factors could explain consumer’s preference for a specific brand of rice whether local or
foreign. Usually, consumers are more concerned about the price and the quality of the
commodity they purchase (Diako et al 2010).

In recent years an increasing consumer preference for regional food can be observed, both in
Germany and in other European countries. The study of MeikeHenseleit et al (2009) indicate that

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cognitive and normative factors are the main determinants of consumer demand /preference for
regional food, whereas affective and socio-demographic variables only are taking marginal
influence.

Especially consumers’ perception about regional food attributes such as food safety are
significant and important determining factors. The same is true for the support of domestic
agriculture by purchasing locally grown foods. In the other side, no significant influence is found
with most of the socio-demographic variables, e.g. level of education, location size, and level of
income (MeikeHenseleit, Sabine Kubitzki, Ramona Teuber, 2009).

3. Materials and Method

3.1. Materials
In order to capture the objectives, primary source of data was the nine provinces of Dire Dawa
city. We collected data using structured questionnaire from individual households particularly
housewives. This was due to choice of pasta product is done by the housewife in developing
countries including Ethiopia. We distributed 355 questionnaire but 299 samples were used for
the analysis collected using random sampling techniques. For the purpose of supplementing the
result, we employed a secondary data obtained from Dire Dawa Food complex manufacturing
industry, Eastern Ethiopian Foreign Trade Authority, Eastern Region Food Medicine & Health
care administration and control Authority, and Eastern Region Revenue and custom bureau.

We tried to keep the accuracy of information by applying error minimizations mechanisms such
as developing the questionnaire based on standards;and allowing respondents to reflect their
responses using likert type scale and indirectly phrased questions techniques. Beside these,
sample pilot test was made before the actual data collection, and triangulation of the result was
also done with similar studies.

3.2. Methods

Both qualitative and quantitative analytical techniques had been employed for analyzing the
collected data. For the qualitative analysis, simple statistical techniques and logical data analysis/
narrative analysis were used as necessary. The quantitative techniques were used using both

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descriptive and econometric tools depending on the information to be obtained. STATA13 had
been usedfor processing and analyzing the data.

The descriptive statistics used to examine and describe basic variables that include socio
demographic characteristics, levels and perceptions of respondents. Thecorrelation between
various attributes of pasta product and respondent’s socio- demographic characteristics was
analyzed using statistical tools, percentages, average (Mean) and standard deviation as
dispersions. The descriptive statistics were used together with inferential statistics like t-statistic
value and ℵ2 statistic value and ANOVA.

4. RESULTS AND IMPLICATIONS

4.1. TREND AND ATTRIBUTES OF PASTA CONSUMPTION

i. Consumption trend of consumers

Here the households’ consumption habit is measure based on the ratio of pasta consumption
expenditure to the total food expenditure amount; and pasta days per week. With this, we found
that more that 45% of households spend Birr 2000 per month only for pasta consumption than
others food items. This showed that pasta consumption is the most consumption habit of
households by almost all people, regardless of their economic status, in the study area.

Regarding the weekly frequency of pasta in dish, we found that more than 75% of the
households consume pasta three and four times per week. This has policy implication that
significant amount of Birr is spend on pasta products compared with other food items in the
study area. Because it is an indicative to the industrial policy of Eastern Ethiopia.

As the table in Appendix 1 showmost people (85%) consume more than 3 packets per week and
access pasta products mainly from local markets named ASHEWA and/ RUZTERA. This
showed that pasta consumption is most common type of consumption and the market is
dominantly local.

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iii. Attributes versus Preference of pasta

Respondents were required to state whether a given pasta food satisfies the wanted attributes of
pasta characteristics. Based on the standard questions provided, we found that BEDRIA, BAHR,
and GOLDA pasta are believed to satisfy the most wanted attributes of pasta. More specifically
they are safe for cooking;attractive style & structure; sweet; and safe for eating. It is these
characteristics of pasta that help the dominance of market power because of strong consumption
preference in the local market with high price relative to the local one.Of the three, most
consumers believed thatGOLDA and BAHRare most “rich in content and familiar in the family
members of the household”.
On the other hand, we found that significant size of households perceive that VERA, MAWEL
and ROZA pasta products are not attractive to the community. They are also labeled with poor
characteristics of poor sweetness, unsafe for youth and elites and not safe for eating.

However, it is found that the local pasta product, VERA, is relatively not bad in terms of safe for
eating particularly to the children.

Thus such findings indicate that most wanted attributes of pasta belongs to the imported one
which attributes affect the market competition of local pasta market. This will also have policy
implication to the regional economy in general and to industrial policy in particular. Because the
local pasta, VERA, has lacked local market due to only its poor attributes.Thus business
decision makers and practitioners can learn from the market power analysis arise specially in
relation to attributes of local as well as foreign pasta foods in the local market. For more detail,
refer the table below. The conformability test is available in Table 4.

Table 1: Attributes of pasta

Perception Attributes (%) Types of pasta

BEDRIA ROZA GOLDA AYAN BAHR *VERA MAWEL

1. Too tasty 96 46 71 18 85 47 54
2. Affordable 99 55 100 17 100 40 57
3. Safe for consumption 99 68 100 50 100 67 57
4. Attractive sty &structure 99 73 99 51 96 64 42
5. Easily available 97 55 90 82 94 38 46

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 6. Familiar in the household 44 15 92 50 90 55 87
7. Safe for cooking 93 72 96 56 70 91 71
8. Rich in content 49 23 89 45 83 48 72
9. Cultural or domestic product 12 11 53 53 83 40 70
10. Safe for all family members 93 63 90 95 79 33 65
11. Safe for youths &children 92 63 90 48 22 17 8
12. Safefor elite 84 64 90 52 78 41 62
Source: Own computation using survey data * the only local product

4.2. PASTA MARKET POWER

Understanding of the development of competition requires the importance of consumer behavior.
Thus the role of consumer behavior in industrial policy is increasingly recognized by many
researchers including Prendergast (2001); and, Watterson (2003). Consumer behavior is
particularly crucial in new products. Thus we measure the degree of market power in pasta
market using frequency of demand per week over the last three years.

Thus we used the frequency of demand, consumption habit, and degree of familiarityto a given
product for the measurement of market power of the product or degree of market competition.

The type of pasta products considered in this study are those that are often available, at least
three years & above and also currently used products. We tried to consider whether other new
type of products appear during and after the survey period-June-December,2017.

But we found thatnothing appeared in the market except the usual common seven types of pasta
called AYAN,BEDRIA,ROZA, and BAHR.MAWEL, GOLDA and VERA. Before looking the
demand of pasta products; we need to look how long pasta products are mostlyfamiliar in the
household. Thus we stick to focus on these seven types due to their familiarity, long time
availability, and known characteristics in the study area.

I. Market power due to Familiarity:

Given the affordability of pasta foods, we found thatBAHR, GOLDA, andROZAare the most
familiar type of pasta products among households in the community with 78%, 75%, and 52%
respectively. Households could be familiar with more than two pasta food items during the study
period under consideration. These pasta products dominantly take the local market
competition/power measured based on the degree of familiarity in the study area.

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Looking in separately, children preferred BEDIRA (most preferred), BAHR, VERA, and ROZA
pasta than the remaining once. Thus we can see that the local pasta, VERA pasta, has little
familiarity/preference. On the other side,MAWEL, GOLDA and AYAN were most wanted
products by females. But VERA pasta was the most disliked foodespecially by females in the
town. Thus one can see that locally produced type of pasta, VERA, has least market power due
to lack of preference. The local pasta type, VERA, lacking market power in urban area of eastern
region due to week familiarity/preference by family members of the households.

ii. Market power due to supply and Price dimension

In the survey we tried to examine about the market accessibility of pasta foods using the easiness
of finding the product in the local market. The result showed that most consumers reported that
BEDRYA, BAHR, and GOLDA pasta foods are most easily available in the local market with
97%, 94%, and 82% extent respectively.

However, the local pasta, VERA, is not easily available implying that the market supply is
dominated by the imported once. It could be due to lack of preference by the local consumers
sourced because of unwanted attributes (See table 3)

On the other side, all pasta foods available in the local market are relatively more expensive than
the local one. When the local pasta is sold with Birr 20/Kg, the other foreign are sold with Birr
30/kg. The tradeoff which attract the policy makers and practitioners is the expensive pasta foods
have strong market preference and power but the cheap one is less preferred and lacks market
power.

iii. Market power due toDemand frequency:

Respondents were asked to report how long frequently demand/ purchased pasta products
available to them in the market. Of the seven choices of pasta products, we found that
BAHR(48%-75%),GOLDA(50%-63%),and ROZA(30%-50%) are the most frequently purchased
pasta products. Above of all them, more than 90 % of respondents replied that BEDRIAand
BAHR are the most highlypreferred and frequently demanded type of pasta in the market.

However, as per the table below,we found that VERA pasta (24%) and MAWEL(25%) are the
least preferred pasta products relative to other options. Thus the survey indicated that the local

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pasta, VERA, has too weak market power measured based on the degree of frequency of
purchased pasta type per week over the last three years.

Table 2: Demand frequency of pasta products

Too Frequently Moderately Less Never Total

frequently Demanded Demanded frequently demanded Demand
Demanded (%) (%) Demanded (%) (%)
(%) (%)
VERA* 7.35 3.63 13.24 30.88 44.85 24.26
AYAN 9.60 23.20 20.30 15.20 31.20 53.60
ROZA 20.33 29.27 16.26 17.89 16.26 65.85
BAHR 27.11 48.19 16.87 3.010 4.82 92.17
GOLDA 25.37 48.51 16.24 2.990 8.72 90.30
BEDRIA 68.52 26.54 1.23 1.230 2.47 96.30
MAWE 10.53 10.53 14.74 14.74 49.47 35.79
Source: Own computation using2017 survey * Local Pasta type

4.3. FACTORS AFFECTING CHOICE OF PASTA FOODS

In this section we attempted to identify factors affecting pasta choice of consumers in the study
area. The reasons behind such choice is examined from the perspectives of the attributes of pasta
and Socio-economics issues.

The ANOVA result of the survey indicated that the preference of local pasta (VERA) is
influenced by the jobtype of wife’s and household income. As income of the household
increasespeople’schoice goes to the preference forlocal one. In a similar fashion, it is found that
the transfer of job type from being housewife to employee is likely to increase
household’schoiceof local pasta. However, the increase in education level of consumers
negatively affect the choice of local market.

People’s perception about rich in content, consumption conformability and style/structure of

local Pasta negatively affects the consumer choice of local pasta. People’s demographic
characteristics and attractiveness of local pasta, interms of content&consumption conformability,
were the most important attributes which influence local consumers towards local pasta products.

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The choice/preferenceof foreign pasta products (especiallyAYAN, BAHIR, and ROZA) are
found to be affected by consumers’ perception about their internal ingredients. Perception about
richness in content,Conformability are found to significantly affect the choice for foreign pasta
foods.

Other pasta products frequentlyavailable in the local market such as MAWEL and GOLDA pasta
types could not found to be affected by identified factors. Though they are demanded by
consumers relative to local pasta, we did it find any peculiar factors associated with these pasta
products.

Table 3:-Determinants of pasta preference

PASTA TYPES/ FACTORS VERA AYAN ROZA BAHR GOLDA BEDRYA MAWEL

  Prob>chi2 Prob>chi2 Prob>chi2 Prob>chi2 Prob>chi2 Prob>chi2 Prob>chi2

           
JOB TYPE 0.0836 0.9804 0.4872 0.811 0.811 0.725 0.6667
HOUSE HOLD INCOME 0.0354* 0.0417* 0.6621 0.4011 0.982 0.9317 0.8438
EDUCATION LEVEL 0.4766 0.1998 0.615 0.8154 0.987 0.0207* 0.6667

HOUSEHOLD SIZE 0.223 0.5806 0.788321 0.9488 0.721 0.4173 0.9201

COMFORT for cons (Perception) 0.000* 0.7635 0.8456 0.0659 0.806 0.8075 0.193
SAFE FOR COOKING (Perception) 0.1067 0.0526 0.4411 0.4085 0.7999 0.035 0.883
RICH IN CONTENT (Perception) 0.053 0.000* 0.0282* 0.22 0.1152 0.029* 0.691
STYLEOF PASTA(Perception) 0.000* 0.389 0.3709 0.0861 0.533 0.347 0.707

Source: own computation using 2017 survey * significant factors

4.4. Welfare Effect of choice

In the first part, we looked Price differentials and switching rate effect; in the second part how
price differential affects the welfare of society; and in the third part, how welfare is influenced
due to the exploitation of monopoly power in the local market will be treated.

4.4.1. Price differentials and welfare effect

In the survey we found that more than 80% of sample households’ prefer the imported pasta food
than the local one. These consumers use more than three (6) packets -2kg- per week. Maintaining
the marginal cost of pasta food constant, we examined the social welfare using both consumer

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and producer loss due to price differential. With this, the total producers’ gain of foreign pasta
per month isestimated Birr 28,704 (30*4*.80*299). 80% of the total samples, 299, are using the
foreign pasta with Birr 30 per kilogram. However, this is the forgone benefit of local pasta
manufacturing firm due to lack of market power or preference arise from opening of foreign firm
entrants.

On the other side, If the remaining 20% is assumed to be covered by the local market the actual
total producer gain of local pasta per month will be Birr 7176 (.20*299*30*4).It is assumed that
low income households consume less priced pasta foods but they are more price elastic. The fall
in price of local pasta could not brought significant change in volume consumption due to two
reasons; one, the two types of pasta (local & foreign) are not good substitutes of each other
because of wanted attributes; second , the local pasta food is short of market supply and is
demanded by few section off the society-children.

However, if price discount is done to foreign pasta foods, the producer loss of local producer
expected to rise at least by half. That is, 50% of local pasta demanders expected to shift towards
the foreign foods. This is due to use of imported food is considered as a social prestige with in
the society. This is supported by the study of Muhammed H & Banbul S (2019). Thus one can
see that because of the weak attributes and market power of local pasta, the producer loss is
calculated to be Birr32,292 (28,704 + 3,588) per month. In total, the producer loss will at least be
Birr 387,504 per year. This is simply because of lack of preference and market power of local
pasta food.

On the other side, one can understand that consumers lost large size of their welfare due to only
price diffentials. In the local market the foreign pasta foods exceed the local one by Birr10 per
kilogram. Because on kg of forein pasta is priced with Birr 30 while the local one is Birr 20.
Considering the sample size of 299, consumers spend Birr 172,224 per month for foreign pasta
foods - 6*30*4*.80*299. However, consumers could have been spend Birr 114,816 if local pasta
food was preferred and got market power. Thus consumers are exploited with Birr 57,408 per
month. The consumer loss is not due to other reasons but lack of good attributes by local
consumers in area.

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In sum, the welfare loss of society because of poor attribute and preference of local pasta food is
calculated by summing the producer loss and consumer loss. Thus based on this, the welfare loss
is expected to be Birr 89,700 per month (57,408+ 32,292).The loss will be Birr 1,076,400 per
year. The loss is measured by considering only consumers in Dire Dawa city. What amount of
money will be lost if the general population in Eastern Ethiopia, Somalia Regional state of
Ethiopia, Dire Dawa Administration, HARAR regional state, East and west HARERGE
administration of Oromya regional state is considered? The loss will be too huge questioning
that industrial policy of the country is not monitored.

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 5. Concluding comments and Policy Implication

In examining the market power of pasta market, it is found that, given their affordability, the
imported pasta foods like particularly BAHR,GOLDA and ROZA are the most powerful pasta
products in Eastern Ethiopia market. Because they are most familiar type of pasta products
consumed for long period of time; most easily available pasta products, though they are
expensive one, in the local market; and have strongly preferred and demanded pasta foods for
more than three years. The local market power is easily taken by imported pasta foods because
only their wanted attributes they possess relative to the local pasta food. Attributes such Safe for
cooking, easily available in the market, attractive style and structure, Sweetness, and Safe for
eating help to control the market power of pasta market in eastern Ethiopia.

Thus policy makers and practitioners need to learn on how to get local market power in food
market. This could be through introducing device of assessing important attributes of food
products before production firms are going to start production. Because investors in developing
country concentrate on simple calculation of demand and supply ignoring the market power of
firms.

In the analysis of welfare loss of society, because of poor attribute and preference of local pasta
food, it is estimated that the welfare loss to be Birr 89,700 per month and Birr 1,076,400 per
year. What amount of welfare loss could exist if the general population in Eastern Ethiopia,
particularly Somalia Regional state of Ethiopia, Dire Dawa Administration, HARAR regional
state, HARERGE administration of Oromya regional state is considered? The loss will be too
huge questioning that industrial policy of the country is not monitored or need to be checked in
its implementation.

Thus it is recommended any new entrants of similar line of product need to identify potential
customers together with their flavor characteristics of products .evaluating and making public
relation programs with many ways is advised to capture people’s attention/preference.

Currently products of pasta are dominantly available in local market such as Ashewa, Ruz Tera
and other Shopping in the community which will limit the market size of the product. Thus it

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could also be better to introduce modern market /shopping centers in many places in the region
to make it readily available in the mark. Plus to these, the government has to take appropriate
actions to the local investors so as to help them compute with foreign products and minimize the
welfare loss of pasta market through delivery of training, like business strategies and game
theories, demand forecasting and other economic strategies.

Acknowledgements
First of all we would like thank Dire Dawa University for funding the research. In addition to

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this we would like thank all staffs and friends who provide us constractive comment on each
approval process of the research and who supports us during the development of this article
financially and academicaly. Without their effort this work is not be fruitfull.
Funding
This research is funded by Dire Dawa University.
Author Information
Mohammed Hamza: E-mail: [email protected]
Phone: +251928182882

Banbul Shewakena: E-mail: [email protected]

Skypee: [email protected]
Whatsapp: +251923956937
Phone: +251911617444
ORCID ID: https://orcid.org/0000-0002-0292-7446

Author Statement

Mohammed Hamza is a lecture in Dire Dawa University, college of business and economics,
department of Economics. Mohammed Hamza is a PhD candidate at Bahir Dar University. He is
interested in researhing on the areas of Economics, finance, and investment. He has published
journals on the areas of access to taxation, consumer preference, insurance, and the like.

Banbul Shewkena is Assistant Professor in Dire Dawa University, college of business and
economics, department of management. He is Asst. Prof. of Financial Management. He is
interested in researhing on the areas of finance, investment. He has published around eight
journals on the areas of access to finance, consumer preference, insurance, job satisfaction,
curriculum development and the like.

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Appendix 1

Table4: Perception factors to the choice of past foods

# Perception measurements StrongllyAgr Agree Not Dis- Strongl

re sure agree ly
dis-
agree
1 I will ONLY buy Or consider Buying 9.69 % 60.71 13.73 14.80 1.02%
foreign made products because it is % % %
fashionable
2 I will buy or consider buying 29.59% 47.95 8.67% 12.24 1.58%

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 foreign made products EVEN IF % %
they are slightly more
Expensive than local products
3 I believe that foreign made pasta 37.24% 47.45 5.10% 8.67% 1.53%
products are more tasty than local %
Products
4 I believe that they are more 20.10% 6.70% 11.34 36.60 25.26%
attractive than local product % %
5 I think the design and style of 25.89% 41.12 15.74 16.24 1.02%
foreign made pasta products are % %
better than local pasta products ፡፡
6 I think that consuming of foreign 45.69% 43.15 5.08% 6.09% 0.00
made pasta products have prestige %
value in the society than local
products
7 I think consuming of foreign pasta 32.14% 34.69 26.02 5.61% 1.53%
products have more comfortable % %
than consuming of local products
8 I believe that foreign pasta products 17.95% 27.69 21.54 27.18 5.64%
are easily manageable in cooking % % %
characteristics than local products
9 I believe that foreign pasta products 33.52% 19.55 25.14 17.88 3.91%
are more nutritious /healthy than % % %
local products
1 I believe that foreign pasta products 28.27% 15.71 40.84 13.09 2.09%
0 are more safe for family members % % %
than local products

20