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Consumer's preferences for textiles: A study of Distributors Opinion

Addis Ababa University June, 2005 0

Consumer's preferences for textiles:

A study of Distributors Opinion

Altering atmosphere for potential business

By:

Daniel Tsegaye

A graduate of Addis Ababa Universirty

[email protected]

+ 251 911 36 61 57

June, 2005



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



Preface

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AcknowledgementAcknowledgementAcknowledgementAcknowledgement

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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



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



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.

Moreover, 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.



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:



• 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

- 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

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

PLC

Kombolcha Textile S.C AwassaTextile S.C

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.



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



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

Visiting day

Field work day Study

organization Report

1

2

Visiting organization Ministry of trade

and industry chamber of commerce

Report on literature

By agreement

And

Consequence

appointment

----

Dec. 30/05

to

Jan 8/05

Jan. 13/05

3

4

5

6

7

8

9

10

11

12

Direct observation

- Marketing departments

- Plants show rooms

- Market places

- Merkato

- Sholla

- Distributors

Selection of in formats

Preliminary preparation of questioners

Preliminary data collections

Final section of in formats

Revision of questioners

Actual data collection

Data presentation and preliminary

analysis

Data analysis

Report (data collection and analysis)

By appointment

By appointment

Feb. 4/05

Feb. 5/05

Feb. 8/05

Feb. 8/05

Dec. 28/05

Dec. 30/05

Feb. 6 & 7/05

By agreement

&

Consequence

appointment

Feb. 9 – 10/05

Feb. 11 – 12/05

Feb. 13 – 14/05

Feb. 16 – 17/05

Feb.20 – March 3

March 5 – 10/05

March 20 – 25/05

Feb. 15/05

Feb. 19/05

March 4/05

March 28/05

March 3/05

13 Report on 1st draft ----- ----- May 3/05 May 12/05

14 Final report ----- ----- May 25/05 June 2/05

* It * It helps to prepare preliminary questionnaire. The study has aimed to select one from the sample drawn.



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.



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)



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



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.



"Consumer behavior is influenced and shaped by many factors and determinants

which fall in two categories.

Environmental influences

Individual differences and influences; and

Psychological 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



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)



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



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.



'' 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;

Frequency of delivery

Time from order to delivery

Emergency deliveries when required

Accuracy of paper work

Stock availability

Reliability 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)



- 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:

Product related:1.1 poor quality products

1.2 Damaged products

1.3 Incorrect products

1.4 Insufficient products

Service related causes involve customer dissatisfaction with sales personnel and

services such as checkout, delivery, workroom, and customer accounts.

Customers 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

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:

"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

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: -

Merchant intermediaries

Full function General merchandise, specialty line and Single line

Limited function Cash and carry, Truck distributor, Drop shipper and Rack

Jobber

Agent Intermediaries

Limited function Broker, Manufacturer’s Agent, Sales Agent, and

Commission Merchant and Auction House

Contractual Intermediaries Full or limited function (cooperative group and

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.



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.



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



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

2.1 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

2.2 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

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

enterprises

Major out put Annual production capacity

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 textile S.

Co

Nylon, Rivan 5ml m2 Nylon

Source: Ethiopia Export Promotion Agency –The study on Ethiopia Textile and Apparel sub-sector



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



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.

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

Id Number

Type of

organization

Years of

service

Number of

employees

Average annual turn over Location

1

2

3

4

5

6

PLC

“

“

“

“

“

6

15

‘10

12

10

6

70

500

20

50

30

15

50ml

160ml

20ml

30ml

40ml

10ml

Teklehaimonot

National theater

Teklehaimonot

Teklehaimonot

Teklehaimonot

Merkato



Personal Profiles of Respondents

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

Respondent

ID No

In the filed Out of the

filed

Experience

Education

Education

Sex

1

2

3

4

5

6

6

10

8

15

6

5

4

10

10

-

-

3

X

X

X

X

X

X

-

-

X

-

X

X

12th grade

Degree

Masters degree

Degree

Diploma

Diploma

M

M

F

M

F

F



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.



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.



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.



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.



Normally, trade and distribution channels for textile can be demonstrated as

follow:

LOCAL PRODUCTS

Foreign products

Fig 3.1 Trade and distribution channels for textile in Ethiopia (Tailored to the study)

MANUFACTURES

DISTRIBUTORS

(IMPORTERS)

CONSUMERS

DISTRIBUTORS

(IMPORTERS)

PRIVATE

RETAILERS

STREET

VENDORS

MANUFACTURING

WITH RETAILER

ACTIVITY

DISTRIBUTOR

WITH RETAILER

ACTIVITY



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.



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



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.



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

Cloth

T-shirt

Towel

Night cover

Protect body

Out and under wear

Absorb water on washing

Sleeping pleasure

Express personality

Self-expression and

being young

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.



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



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.



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

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

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

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

� 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

� 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

Ababa

South North East West North

east

South

west

South

east

North

west

Low X

Medium

High X X X X X X X X

Table 3.7 Textile demand among the regions

Dire

Dawa

Mekele Bahir

Dar

Gonder Dessie Jimma Natherethe Awassa

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.

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.

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.

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.



� 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

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

and information to use

evaluation

Husband watches television

or hear from his wife

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

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

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

What they want.

What they Expect

Exposure to fashion & Advertisements.

Market places.

Decision to purchase

A Great value

Care instructions liable, old fashions

Purchase time

Young, special women

Simple and attractive textiles

New and low price products

High

Urban known markets

Take time and gather information to decide

Color, fashion, and style

Almost no valve

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.

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

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

Wife New products Initiator

Husband To encourage

decision

Decider

Advertising

Wife Packaging set of Purchaser

Retailer location Wife Select place

convenient to wife

Purchaser

-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

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

Women A convenience oriented shopper High quality in cloth Buys fine clothing offer Sex

Men Active decider Price oriented buyer Not loyal

Rural Huge market but low in come Conservative Loyal

Location

Urban Activity buyer but small in

number

New fashion clothes Not loyal

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

''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.

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



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Important Web sites

www.appareassearch.com/glossary-y.htm

http://www.kurtsalmon.com

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