INFLUENCE OF CONSUMER PERCEPTION OF IMPORTED GOODS ON THE PERFORMANCE OF LOCALLY PRODUCED GOODS

Mercy Wangari Kinyingi, Mary K Kibuine, Julius K Mwangi

Abstract


Globalisation has made it easier for traders to import goods into the country at the expense of local industries. In Kenya the Jua kali industry has been adversely affected by the business of importation which has seen the performance of the industry sharply decline. This study sought to establish the effects of imported products on the performance of locally produced goods by small scale metal work enterprises in the economy. Moreover, the study was guided by two theories: Schumpeter’s theory of economic development and the export base theory. The study targeted small-scale metal enterprises which were estimated to be 160 businesses in Kamukunji Market. Out of this, a sample of 120 respondents was arrived at using the Cochran formula. Data was collected by the use of structured questionnaires which contained closed ended questions. Descriptive analysis including frequencies, percentages and cross tabulations, was used to summarize and organize quantitative data. The collected data was then summarized, coded and analysed quantitatively and presented in tables to draw inference on the research questions. The study arrived into various conclusions; notably the consumer attitude and perception of imported products is overwhelming good as compared to that of local products. It also emerged that local industries lacked elaborate structures to pursue marketing and research and development activities. Moreover, key stake holders such as the government should facilitate the growth of the industry by lowering the cost of doing business and providing financial incentives to encourage the growth of the business.  

KEY words: Jua Kali, Performance, Consumer


Full Text:

PDF

References


Adeyeye, A. (2018). Challenges to SME growth in Kenya. [online] How We Made It In Africa. Available at: https://www.howwemadeitinafrica.com/challenges-sme-growth-kenya/57022/ [Accessed 23 May 2018].

Agbonifoh, A. &Elimimian, J.U. (2009). Attitudes of Developing Countries Towards "Country-of-Origin" Products in an Era of Multiple Brands.J. Int. Consum. Mark. 11 (4): 97-116.

Ahmed, M. A. (2014). Strategies employed by small and medium enterprises to develop competitive advantage in Nairobi county.

Alden, C., Large, D., &Soares de Oliveira, R. (2008).China returns to Africa: A rising power and a continent embrace. Columbia University Press.

Arpan, L. M. & Peterson, E. (2008). Influence of source liking and personality traits on perceptions of bias and news source selection. Media Psychology, 11(2), 310329.

Auger, P., Devinney, T. M., Louviere, J. J., & Burke, P. F. (2010). The importance of social product attributes in consumer purchasing decisions: A multi-country comparative study. International Business Review, 19(2), 140-159.

Baden, S. & Barber, C. (2005). The Impact of the Second-Hand Clothing Trade on Developing Countries. Oxfam, Oxford.

Balabanis, G. & Diamantopoulos, A. (2004). Domestic Country Bias, Country-of-Origin Effects, and Consumer Ethnocentrism: A Multidimensional Unfolding Approach. Journal of the Academy of Marketing Science, Vol. 32 No. 1, 80-95.

Balabanis, G., Diamantopoulos, A., Mueller, R.D. &Melewar, T.C. (2011.The impact of nationalism, patriotism and internationalism on consumer ethnocentric tendencies. Journal of International Business Studies, Vol. 3 No. 1, pp. 157-75.

Bandura, A. (2011). Social Cognitive Theory: An Agentive Perspective. Annual Review of

Barney, J., Wright, M., & Ketchen Jr, D. J. (2001). The resource-based view of the firm: Ten years after 1991.

Bearden, W.O. &Etzel, M.J. (1982).Reference Group Influence on Product and Brand Purchase Decisions. Journal of Consumer Research, Vol. 9, pp. 183-194.

Beaudoin, P., Moore, M.A. and Goldsmith, R.E (2008), “Young fashion leaders’ and followers’ attitudes toward American and imported apparel”, Journal of Product & Brand Management, Vol. 7 No. 3, pp. 193-207.

Bhaskaran, S. &Sukumaran, N. (2007).Contextual and methodological issues in COO studies.Marketing Intelligence & Planning, Vol. 25 No. 1, pp. 66-81.

Blair, J. P., & Blair, J. P. (1995). Local economic development: Analysis and practice (Vol. 16, No. 2). Sage.

Buckley, P. J. (2011). The theory of international business pre-Hymer.Journal of World Business, 46(1), 61-73.

Calvo, M. G. & Marrero, H. (2009). Visual search of emotional faces: The role of affective content and featural distinctiveness. Cognition & Emotion, 23(4), 782-806

Chao, P. (1993). Partitioning country of origin effects: consumer evaluations of a hybrid product. Journal of international business studies, 24(2), 291-306.

Chen, D.J. &Ko D.J. (2007).In Defense of External Invalidity. American Psychologist, Vol. 38 No.4, pp. 379-87.

Cleveland, M. & Michel, L. (2007). Globalization, Culture, and Consumption Behavior: An Empirical Study of Dutch Consumer

Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and

Cronbach, L.J., & Richard J. S. (2004). My Current Thoughts on Coefficient Alpha and Successor Procedures. Educational and Psychological Measurement 64, no. 3 (June 1): 391–418.

Damapour, F. (1993). Temporal shifts of developed country-images: A 20 year view, in Papadopoulous, N. and Heslop, L.A. (Eds.), Product-Country Images: Impact and Role in International Marketing: New York: International Business Press.NY, pp.357-378.

Dickerson, K.G. (1982), Imported versus US-produced apparel: consumer views and buying

Douglas, J., Douglas, A., Muturi, D., &Ochieng, J. (2017, December). An exploratory study of critical success factors for SMEs in Kenya. In Toulon-Verona Conference" Excellence in Services".

Drucker, P. (2014). Innovation and entrepreneurship. Routledge.

Eckman, M., Damhorst, M.L.&Kadolph, S.J. (1990). Toward a model of the in store purchase decision process: consumer use of criteria for evaluating women’s apparel. Clothing and Textiles Research Journal, Vol. 8 No. 2, pp. 13-22.

Elliott, G.R. & Cameron, R.C. (1994). Consumer perception of product quality and the country-of-origin effect. Journal of International Marketing, 2(2) : 49-62.

Ferguson, J.L, Dadzie, K.Q. & Johnston, W.J. (2008).Country-of-origin effects in service evaluation in emerging markets.Some insights from five West African countries. J. Bus. Ind. Mar. 23(6), 429-37.

FSD Kenya.(2018). Leveraging Kenya’s informal sector for growth – Financial Sector Deepening. [online] Available at: http://fsdkenya.org/blog/leveraging-kenyas-informal-sector-for-growth/ [Accessed 23 May 2018].

Fukunishi, T. (2012). The Kenyan Garment Industry: Is it able to revive in the economic boom?.Dynamics of the Garment Industry in Low-Income Countries: Experience of Asia and Africa (Interim Report). ChousakenkyuHoukokusho, IDE-JETRO.

Gikenye, W., & Ocholla, D. N. (2014). The diffusion of information and communication technologies in the informal sector in Kenya. Mousaion, 32(3), 29-48.

Griffin, P. (2010). Gender, governance and the global political economy.Australian Journal of International Affairs, 64(1), 86-104.

Grosse, R. (Ed.). (2005). International business and government relations in the 21st century.Cambridge University Press.

Hamin, & Elliott, G. (2006). A less-developed country perspective of consumer ethnocentrism and “country of origin” effects: Indonesian evidence. Asia pacific journal of marketing and logistics, 18(2), 79-92.

John, M. P. (2005). Responses of JuaKali artisans to challenges of increased competition: the case of kamukunji area in Nairobi.

Kamau, P., &Munandi, I. (2009).Innovation in the Kenyan clothing sector and its impact on employment and poverty reduction.Available on line: acfrn. uonbi. ac. ke/…/innovation% 20in% 20Kenya.(February, 25, 2013.

Kapchanga, M. (2013).Changing channels: The rise of Chinese media in Africa.Think Africa Press. Feb, 7, 2013.

Kasfir, S. (2007). Jua Kali aesthetics: Placing the city as a context of production. Critical Interventions, 1(1), 33-43.

Kaur, M. R. (2009). Waste management awareness in Nairobi: the case of" Jua kali" metal workers in Nairobi's Kamukunji area (Doctoral dissertation).

Kenya (2005) Development of Micro and Small Enterprises for Wealth and Employment Creation for Poverty Reduction.Sessional Paper No 2 of 2005. Nairobi: Government Printer.

Kibua, T. N., &Nzioki, B. K. (2004).Are export processing zones relevant in a liberalized

environment?: the Kenyan case. Institute of Policy Analysis and Research.

King, K. (1996) Jua Kali Kenya: Change and Development in an Informal Economy 1970-1995.

Nairobi:East African Educational Publishers

Kinyanjui, M. N. (2006). Knowledge, Technology and Growth: The Case Study of Kamukunji

Jua Kali Enterprise Cluster in Kenya.

Kinyua, A. N. (2014). Factors affecting the performance of Small and Medium Enterprises in the JuaKalisector in Nakuru Town, Kenya. IOSR Journal of Business and Management (IOSR-JBM), 16(1), 80-93.

Kotler, P., & Lee, N. (2008). Corporate social responsibility: Doing the most good for your company and your cause. John Wiley & Sons.

Lewis, W. C. (1972). A critical examination of the export-base theory of urban-regional growth. The Annals of Regional Science, 6(2), 15-25.

Luan, Y. J., & Sudhir, K. (2010). Forecasting marketing-mix responsiveness for new products. Journal of Marketing Research, 47(3), 444-457.

Magambo, E. N. (2015). Factors affecting growth of smes: a case of JuaKalimotor garages in shaurimoyo, Nairobi, city county. Strategic Journal of Business & Change Management, 2(2).mixed methods approach. Sage publications.

Maina, M. W. (2013). An assessment of the effects of the importation of second hand clothes on the growth of textile industry in Kenya. International Journal of Social Sciences and Entrepreneurship, 1(3), 543-556.

Masese, P. B. (2011). Factors affecting Credit Allocation in Financial Institutions in Kenya.

Mangieri, T. (2006). African cloth, export production, and secondhand clothing in Kenya.

MyGov, (2018). [online] Available at: http://www.mygov.go.ke/smes-play-key-role-in-economic-development-and-job-creation/ [Accessed 23 May 2018].

Njuguna, J. N. (2014). the effect of country of origin, consumer characteristics and attitudes on consumer behaviour towards foreign clothing brands in nairobi, kenya (Doctoral dissertation, University of Nairobi).

Nyarunda, A. C. (2016). Consumer perception, attitude and patronage towards purchase of imported versus locally-produced apparel in Nairobi County, Kenya (Doctoral dissertation, Kenyatta University).

Nyongesa, L. K. (2005). Hierarchical Screening with Retesting in a low Prevalence Population.The Indian Journal of Statistics, 66, 779-790.

Obare, M. J. (2015). The Impact Of Informal Economy On Employment Creation: The Case Of Kamukunji Jua Kali Artisans in Nairobi, Kenya. International Journal of Economics, Commerce and Management, 3(6).

Ongwae, G. J., Mukulu, E., &Odhiambo, R. (2013). Innovation Activity and Firm Growth Across Key Sectors of the Kenyan Economy. JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY, 426.

Onyango, C. A. (2014). Attitudes of informal sector workers towards saving for retirement (pension) at kamukunjijua-kali, Nairobi.

Opoku, R. A., & Akorli, P. A. (2009). The preference gap: Ghanaian consumers' attitudes toward local and imported products. African Journal of Business Management, 3(8), 350.

Ouellet, J. F. (2007). Consumer racism and its effects on domestic cross-ethnic product purchase: An empirical test in the United States, Canada, and France. Journal of Marketing, 71(1), 113-128.

Ouma, K. F. (2010). Regularizing the informal sector ‘jua kali’activities in nairobi for sustainable development. In 46th ISOCARP Congress at http://www. isocarp. net.(Accessed 14 August 2014).

Patterns. Home Economics Research Journal, Vol. 10 No.3, pp. 241-252. Psychology, 52, pp 1-26.

Phelps, N. A., Stillwell, J. C., &Wanjiru, R. (2008). Missing the GO in AGOA? Growth and constraints of foreign direct investment in the Kenyan clothing industry.Transnational Corporations, 17(2), 67.

Samiee, S. (1994). Customer evaluation of products in a global market. Journal of International Business Studies, 25(3), 579-604.

Shi, X., & Kimura, F. (2010). Energy market integration in the East Asia Summit region: Review of initiatives and estimation of benefits. Jakarta: Economic Research Institute for ASEAN and East Asia (ERIA).

Tuk, M. A., Verlegh, P. W., Smidts, A., & Wigboldus, D. H. (2009). Sales and sincerity: The role of relational framing in word-of-mouth marketing. Journal of Consumer Psychology, 19(1), 38-47.

Usunier, J. C. (2006). Relevance in business research: the case of country‐of‐origin research in marketing. European Management Review, 3(1), 60-73.

Wall, M. &Heslop, L.A. (1986).Consumer attitudes toward Canadian-made versus imported products. Journal of the Academy of Marketing Science, Vol. 14, Summer, pp. 27-36.

Wang, C.K. & Lamp, C.W. (1983).The impact of selected environmental forces upon consumers’ willingness to buy foreign products. Journal of the Academy of Marketing Science, Vol. 11, Winter, pp. 71-84.

Wang, C.L. & Chen, Z.X. (2004). Consumer Ethnocentrism and Willingness to Buy Domestic Products in a Developing Country Setting: Testing Moderating Effects. Journal of Consumer Marketing, Vol. 21 No. 6, pp. 391-400.

Wang, C.L., Chen, Z.X., Chan, A.K.K. &Zheng, Z.C. (2010). The influence of hedonic values on consumer behaviors: an empirical investigation in China. Journal of Global Marketing, Vol.14 No. 1/2, pp. 169-86.

Wang, K. T. (2015). Research design in counseling. Nelson Education.

Wilkinson, T., & Brouthers, L. E. (2006). Trade promotion and SME export performance. International Business Review, 15(3), 233-252.

Williamson, R. B. (1975). Predictive power of the export base theory. Growth and Change, 6(1), 3-10.

Yim, H. J. (2007). Consumer oriented development of ecodesign products. Vulkan-Verlag GmbH.




DOI: http://dx.doi.org/10.61426/sjbcm.v5i3.788

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

PAST ISSUES:
20242023202220212020201920182017201620152014
Vol 11, No 4 [2024]Vol 10, No 4 [2023]Vol 9, No 4 [2022]Vol 8, No 4 [2021]Vol 7, No 4 [2020]Vol 6, No 4 [2019]Vol 5, No 4 [2018]Vol 4, No 4 [2017]Vol 3, No 4 [2016]Vol 2, No 2 [2015]Vol 1, No 2 [2014]
 Vol 11, No 3 [2024] Vol 10, No 3 [2023] Vol 9, No 3 [2022]Vol 8, No 3 [2021]Vol 7, No 3 [2020]Vol 6, No 3 [2019]Vol 5, No 3 [2019]Vol 4, No 3 [2017]Vol 3, No 3 [2016]Vol 2, No 1 [2015]Vol 1, No 1 [2014]
 Vol 11, No 2 [2024] Vol 10, No 2 [2023] Vol 9, No 2 [2022]Vol 8, No 2 [2021]Vol 7, No 2 [2020]Vol 6, No 2 [2019]Vol 5, No 2 [2018]Vol 4, No 2 [2017]Vol 3, No 2 [2016]  
 Vol 11, No 1 [2024] Vol 10, No 1 [2023] Vol 9, No 1 [2022]  Vol 8, No 1 [2021]Vol 7, No 1 [2020]Vol 6, No 1 [2019]Vol 5, No 1 [2018]Vol 4, No 1 [2017]Vol 3, No 1 [2016]   


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.