ASSESSMENT OF CONSUMER BEHAVIOUR ON RETAIL PRICES OF GARRI IN IMO STATE
Eze E. U; Njoku G. U; Anah C. O & Abana P. C
Department of Agricultural Technology
Federal Polytechnic Nekede, Owerri, Imo State, Nigeria
E mail: emeyuch@gmail.com
ABSTRACT
The study evaluates consumers’ behaviour on retail price of garri in Imo State of Nigeria. Data were drawn from the three agricultural zones in Imo State, namely Owerri, Orlu, Okiqwe. A functional market in each zone was randomly selected. A multi stage sampling technique was used for the study. Primary data were obtained by means of interview schedule (questionnaire) administered to consumers of garri at retail shops
in the market. Data were analyzed using descriptive techniques and ordinary lease square (OLS) method of multiple regression analysis. Empirical result reveals that the mean weekly budget share for garri was
₦790.61 but the actual weekly expenditure was ₦970.69. The differential of 22.8% increase in expenditure from the budget share of garri could be attributed to variability in prices of garri in the market. About 53.33%
of garri consumers have a weak bargaining index of 0.67 indicating that consumers’ influence on the food product is weak. As the weekly quantity of garri purchased increases, the weekly retail increases as well, there is a less than 0.11% increase in unit weekly retail prices of garri as the quantity bought increase by 1% in the Study area. There is need for consumers’ to be encouraged to form co-operative societies through which they can buy food products in bulk to reduce retail price thereby reducing the price margin between their budget share and actual expenditure in view of the fact that their bargaining power is weak. This will also reposition them to play a key role in price formation and sharing market information in order to increase
their bargaining power as majority of retailers are only interested in profit maximization to the detriment of consumers. Consumers of garri should be ready to make adjustment on their weekly budget of garri because of price variability.
Keywords: Consumer behaviour, retail prices, budget share, price flexibility
