FACTORS AFFECTING CUSTOMERS PURCHASING DECISION OF HEALTHSUPPLEMENT PRODUCTS: A CASE OF HAWASSA CITY

Abstract

This study was aimed to assess factors affecting customers’ purchasing decision for health supplement products in Hawassa city. To achieve the objective, the study has tried to consider about seven determinant factors of purchasing decision namely product price, quality, Promotion, sources of information, availability of product, brand popularity, and customer level of perception. Based on this, data was collected from customers using questionnaire and unstructured interview. Hence, 240 respondents were participated in the study using convenience sampling technique. Both descriptive and inferential statistics methods were applied to analyses the collected data. The result of the study reveals that purchasing decision of customers affectedby all of the identified determinant factors such as, price, quality, product promotion, sources of information, available product, brand availability, and perception and customer’s awareness. Consequently, the major findings of the study implied that, price and brand have more impact on the purchasing decision of customers engaged in lower monthly income than customers engaged in middle and higher monthly income. The study also showed that, product availability affect customer purchasing decision regarding by distance. Accordingly, most customers decided to purchase products where locally available than far apart from their surrounding area. The other determinant factor that the finding implied was sources of information; in this regard majority of customers’ purchasing decision was affected by the sources of information. Regarding, the perception of customers educated customers have better product understanding than less educated customers. In general, the results of correlation analysis revealed that all of the identified determinant factors affect customer purchasing decision which indicates at a statistical measures p < 0.05. Furthermore, multiple regressions also identify which determinant variable more affect customer purchasing decision. Thus, Price of product highly and positively affect customer purchasing decision followed by product quality, perception of customer, sources of information, availability of products, brand popularity and sales promotion. Based on the findings the stAdy recommends that product distributers should consider price, quality of products, availably of products, and provide alternative brands of health supplement products