This document presents a thesis proposal submitted by Novia Feleke Demissie to the School of Postgraduate Studies at Ambo University in partial fulfillment of the requirements for a Master's degree in Business Administration. The proposal aims to identify the factors affecting consumers' purchase intentions towards locally manufactured leather shoes, using Sheba Leather Industry S.C. as a case study. The proposal includes an introduction outlining the background and objectives of the study, a literature review on relevant topics, the proposed research methodology, and a time and budget schedule.

1. AMBO UNIVERSITY
SCHOOL OF POSTGRADUATE STUDIES
FACTORS AFFECTING CONSUMER”S PURCHASE INTENT TOWARDS
LOCALLY MANUFACTURED LEATHER SHOES
(THE CASE SHEBA LEATHER INDUSTRY S.C.)
BY: NOVIA FELEKE DEMESSIE
A THESIS PROPOSAL SUBMITTED IN PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR THE DEGREE OF MASTERS OF BUSINESS
ADMINISTRATION
AMBO, ETHIOPIA
MAY, 2022

2. AMBO
UNIVERSITY
SCHOOL OF POSTGRADUATE STUDIES
FACTORS AFFECTING CONSUMER”S PURCHASE INTENT TOWARDS
LOCALLY MANUFACTURED LEATHER SHOES
(THE CASE SHEBA LEATHER INDUSTRY S.C.)
BY: NOVIA FELEKE DEMESSIE
Supervisor: HAILU M. (ASST. PRF.)
A THESIS PROPOSAL SUBMITTED IN PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR THE DEGREE OF MASTERS OF BUSINESS
ADMINISTRATION
AMBO, ETHIOPIA
MAY, 2022

4. ii

5. iii
Contents
Contents.........................................................................................................................................iii
List of Tables.................................................................................................................................. v
List Figures..................................................................................................................................... v
List of Acronyms and Abbreviations............................................................................................. vi
CHAPTER ONE............................................................................................................................. 1
1. INTRODUCTION ..................................................................................................................... 1
1.1. Background of the study ..................................................................................................... 1
1.2. Statement of the Problem .................................................................................................... 2
1.3. Research Questions ............................................................................................................. 4
1.4. Objectives of the Study ....................................................................................................... 4
1.4.1. General Objective ......................................................................................................... 4
1.4.2. Specific Objective......................................................................................................... 4
1.5. Research hypothesis ............................................................................................................ 5
1.6. Significance of the study..................................................................................................... 5
1.7. Scope of the study ............................................................................................................... 5
1.7.1. Geographical Scope...................................................................................................... 5
1.7.2. Theoretical Scope ......................................................................................................... 6
1.8. Organization of the study .................................................................................................... 6
CHAPTER TWO............................................................................................................................ 7
2. REVIEW OF RELATED LITERATURE................................................................................. 7
2.1. Theoretical Review.............................................................................................................. 7
2.1.1. Ethiopia leather and leather products industry overview ............................................. 7
2.1.2. Consumer Purchase Intention....................................................................................... 8
2.1.3. Consumer Purchase Decision Making Process............................................................. 9
2.1.4. Factors Affecting Consumer Purchase Intentions ...................................................... 12
2.2. Empirical Literature Review ............................................................................................. 17
2.2.1. Brand Name and Consumer Purchasing Intention...................................................... 17
2.2.2. Product Quality on Purchasing Intention.................................................................... 17
2.2.3. Product Packaging and Consumer Purchase Intention ............................................... 18

6. iv
2.2.4. Product Price and Consumer Purchase Intention........................................................ 18
2.2.5. Product advertising and Consumer Purchasing Intention........................................... 19
2.3. Conceptual framework....................................................................................................... 19
CHAPTER THREE ...................................................................................................................... 20
3. RESEARCH METHODOLOGY............................................................................................. 20
3.1. Description of the Study Area and Period......................................................................... 20
3.2. Research Design................................................................................................................ 20
3.3. Research Approach............................................................................................................ 20
3.4. Data Type and Data Source............................................................................................... 21
3.4.1. Primary Sources.......................................................................................................... 21
3.4.2. Secondary sources ...................................................................................................... 21
3.5. Data Collection procedure................................................................................................. 21
3.6. Target Population and Sample Size Determination .......................................................... 21
3.6.1. Target Population........................................................................................................ 21
3.6.2. Sample Size Determination ........................................................................................ 22
3.7. Sampling Technique.......................................................................................................... 22
3.8. Data Collection Tools........................................................................................................ 22
3.9. Validity and Reliability ..................................................................................................... 22
3.9.1. Validity ....................................................................................................................... 22
3.9.2. Reliability ................................................................................................................... 23
3.10. Data management and Analysis ...................................................................................... 23
3.11. Ethical consideration....................................................................................................... 23
3.12. Model Specification ........................................................................................................ 23
4. TIME AND BUDGET SCHEDULE....................................................................................... 25
4.1. Time schedule.................................................................................................................... 25
4.2. Budget plan ....................................................................................................................... 25
References .................................................................................................................................... 26
Appendices ................................................................................................................................... 29

7. v
List of Tables
Table 4.1 1 Time frame .................................................................................................................25
Table 5.1 1 Budget Plan ...............................................................................................................25
List Figures
Figure 2.1 1 Consumer Purchase Process ....................................................................................10
Figure 2.2 1 Conceptual framework ........................................................................................... 19

8. vi
List of Acronyms and Abbreviations
CSA Central Statistics Authority
EFFORT Endowment Fund for Rehabilitation of Tigray
PLC Private Limited Company
SC Share Company
SPSS Statistical Package for the Social Science

9. 1
CHAPTER ONE
1. INTRODUCTION
1.1. Background of the study
Purchase intention is the preference of consumer to buy the product or service. In another words,
purchase intention has another aspect that the consumer will purchase a product after evaluation.
Many factors affect the consumer’s intention while selecting the product and the ultimate decision
depends on consumers’ intention with large external factors (Keller, 2001).
The Lancaster’s theory of consumer choice (1966) postulates that consumption decisions are
determined by the utility that is derived from the attributes of a good. Because consumers often
link attributes to consequences of purchasing or consuming products (Akpoyomare, Adeosun, &
Ganiyu, 2012), marketers differentiate and set its product apart from competitors based on a
specific attributes (Belch & Belch, 2001). A research by Forney, Park and Brandon (2005) found
that image, quality, color/style, and design/beauty of fashion products are important criteriawhen
purchasing extended brands of casual apparel and home furnishings.
Saha, Dey, and Bhattacharaya (2010) applied the 4Ps of marketing mix as a framework to classify
and evaluate the importance level of shoes attributes in Kolkata, India. They found that the factors
to be considered by shoes manufacturers and marketers are “quality, durability, right pricing, after
sale se rvice, and convenient location of the retail shops”.
According to Aaker, Batra, and Myers, (1992) an important attribute is one that offers an important
benefit towards the satisfaction of consumer needs. Aaker (1991) adds that because most product
attributes provide consumer benefits, there is usually a one-to-one comparative between brands.
Kotler (2002) explains that the most salient attributes or features of a product to the consumer do
not necessarily always imply that they are the most important ones. Manufacturers must view
product attributes from consumers’ point, understand their specific needs to reduce the lost
opportunity to sell or raise the level of customer satisfaction.
Ethiopia is believed to have the largest livestock population in Africa. This livestock sector has
been contributing considerable portion to the economy of the country, and still promising to rally
round the economic development of the country. This huge potential resource is the major input for
the leather sector to be further flourished like production of leather footwear (CSA, 2017/18).

10. 2
Accordingly, the leather sector is the one that is believed to play a significant role in the
enhancement of the overall economy of the country. The leather sector includes leather footwear,
leather processing, leather garment, and leather goods manufacturing industry Furthermore, the
leather industry especially the footwear products are one of the major source of foreign currency
through export. (LIDI, 2017/18)
Sheba Leather industry PLC is a company located in Addis Ababa, Ethiopia. The company is
mainly working in Leather & Leather Articles business sectors.
Sheba Leather Industry P.L.C is one of the 16 companies under the group of the Endowment Fund
for Rehabilitation of Tigray (EFFORT). The company is a legally registered entity established in
1993 G.C. in accordance with the commercial code of Ethiopia with paid-up capital of 118 million
Birr. The company has started its operations in 2004. Currently, the company has created job
opportunities for more than 947 employees.
Therefore, this paper planned to clearly identify the factors that affect the consumer purchase intent
of the Sheba Leather Industry manufactured shoes.
1.2. Statement of the Problem
Ethiopian footwear sub-sector produces men’s casual shoes and children’s shoe-uppers made from
pure leather. Leather factories sell these products to domestic market and directly to overseas
importers and wholesalers as well as direct buying offices (Embassy of Ethiopia in United
Kingdom, 2010). Ethiopia has undeniable livestock resources as the country is the 10th
largest in
the world. On the contrary, the country is not living up to expectations relative to the resources
available as a raw material and cheap labor price in becoming highest leather producer and
exporter in the world.
Despite this fact, many studies indicated that the shoe companies found in the country face strong
competition from shoes and other leather products imported from abroad. According to World
Bank group (2006), the domestic market for footwear at present suffers from fierce price
competition from synthetic footwear imported from China at much cheaper prices. Though low in
durability, these low quality Chinese shoes are considered somewhat stylish and fashionable in
design and heel heights and are available for men, women and children in all local shops.

11. 3
Customers in this era are targeted by mass media and they change the consumers' way of thinking
through emotions, needs, wants and demands. Market researchers and organizations spent billions
of dollars on consumer research to identify important factors that influence on consumer decisions.
The analysis of consumer intention is effective in detecting the orientation of consumers’ behavior.
(Thapa, 2011) Despite the emphasis on customers’ maintenance in marketing texts, access to such
targets is changing rapidly for manufacturer and seller companies. In market, millions are spent on
brand advertising by the companies of shoe products. However, studies show that consumers are
only able to differentiate between few brands. The main problem is that brand advertising solely is
not a guarantee for brand success.
Various researches mention different factors changing consumer’s intention but it is still
controversial to have better combinations of these factors as their effect may vary relative to
geographical locations, industries, economic standards etc.
Therefore, it is the researcher’s strong believe that the marketing team in Sheba Leather Industry
P.L.C requires a clear strategy which is based on a complete understanding of reasons that
encourage consumers to repurchase intention of a brand. in the crowded market that we witness the
activity of several shoe brands, the purchase reduction of these appliances due to conditions such
as economic downturn and the decrease of people purchase power, as well as the efforts of the
company to make its own brand distinctive in the minds of consumers, professional marketers
should realize that how change the variables affecting on brand loyalty in order to change to
impact on the repurchase intention of brand (brown et al. 2003).
When management has a deep and true understanding of the effective factors on the behavioral
intentions of customers, companies can strengthen long-term relationships with customers more
effectively. Therefore, the first step is to identify the factors affecting on customers purchase
intention. Due to the lack of researches conducted on Sheba Leather Industry in this area, there is a
necessity to address this issue seriously. Consequently, the main purpose of this study is to
investigate factors affecting on the purchase intention of Sheba Leather shoe product customers. In
doing so, the study will try to relate purchase intention of consumer with only marketing factor
indifference to previous studies in our country on the subject matter.

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1.3. Research Questions
• What is the effect of brand name on consumer’s purchase intention of Sheba Leather
Shoes?
• What is the effect of product quality on consumer’s purchase intention of Sheba Leather
Shoes?
• What is the effect of product packaging on consumer’s purchase intention of Sheba Leather
Shoes?
• What is the effect of product price on consumer’s purchase intention of Sheba Leather
Shoes?
• What is the effect of product advertising on consumer’s purchase intention of Sheba
Leather Shoes?
• Which factor has the most effect on the consumer’s purchase intention of Sheba Leather
Shoes?
1.4. Objectives of the Study
1.4.1. General Objective
The general objective of this study is to explore factors affecting consumer purchase intention of
leather shoe products of Sheba Leather Industry.
1.4.2. Specific Objective
• To identify the effect of brand name on consumer’s purchase intention of Sheba Leather
Shoes.
• To identify the effect of product quality on consumer’s purchase intention of Sheba Leather
Shoes
• To identify the effect of product packaging on consumer’s purchase intention of Sheba
Leather Shoes
• To identify the effect of product price on consumer’s purchase intention of Sheba Leather
Shoes
• To identify the effect of product advertising on consumer’s purchase intention of Sheba
Leather Shoes

13. 5
• To identify the factor the most effect on the consumer’s purchase intention of Sheba
Leather Shoes
1.5. Research hypothesis
H1: Brand name has a positive/negative significant effect on consumer’s purchase intention of
Sheba Leather Shoes.
H2: Product quality has a positive/negative significant effect on consumer’s purchase intention of
Sheba Leather Shoes.
H3: Product packaging has a positive/negative significant effect on consumer’s purchase intention
of Sheba Leather Shoes.
H4: Product price has a positive/negative significant effect on consumer’s purchase intention of
Sheba Leather Shoes.
H5: Product advertising has a positive/negative significant effect on consumer’s purchase intention
of Sheba Leather Shoes.
1.6. Significance of the study
The findings of the study can be used as a guideline by managements of Sheba Leather Industry
S.C. manufacturers to improve the marketing activities of leather shoe products. This study may
also help all stakeholders such as leather shoe retailers, wholesalers, manufacturers and consumers
by indicating the current actual status of domestic leather shoe market in terms of consumers‟
preference. The study could be as an input as it points out potential areas which need improvement
and recommendations are forwarded in order to tackle the problems identified. Moreover, it may
also beckon others a potential area for further study in a broader scope and wider context.
1.7. Scope of the study
1.7.1. Geographical Scope
The study will be conducted at Bole Sub city, Addis Ababa. In this regard the study will be
delimited to Addis Ababa. Consumers of leather products in the selected Sub city will be target
participants of the study.

14. 6
1.7.2. Theoretical Scope
Theoretically, the study will assess factors affecting consumer’s purchase intentions of Sheba
Leather shoes and the researcher will take marketing relate view of the matter. Consequently, the
study identified five variables namely; brand name, product quality, product price, product
packaging, and product advertising as factors which may affect consumer’s intent to purchase.
1.8. Organization of the study
The research is organized in to five consequential chapters. The first chapter deals with the
introduction of the research area in the form of background of the study, statement of the problem,
objectives of the study, other relevant introductory issues. The second chapter deals with a review
of literature on this research topic. Chapter three contains the research methodology mainly
concentrated on data collection techniques variables definition & measurement and method of
analysis. The fourth chapter will be data pretention and analysis and chapter five will be
conclusion and recommendation.

15. 7
CHAPTER TWO
2. REVIEW OF RELATED LITERATURE
2.1. Theoretical Review
2.1.1. Ethiopia leather and leather products industry overview
The manufacture of leather and leather products in Ethiopia dates back to historic times, and
traditional cottage leather manufacturing is still practiced for both hides and skins. Leather
manufacturing in modern tanneries began in the mid 1920s. Ethiopia possesses the largest
livestock population in Africa, and the tenth largest in the world. Ethiopia’s livestock population is
estimated at 44.3 million cattle, 23.6 million sheep, 23.3 million goats and 2.3 million camels
(Central Statistical Authority). The skin removal rate is 7% for cattle, 33% for sheep and 37% for
goats. The country produces 2.7 million hides, 8.1 million sheepskins and 7.5 million goatskins
annually (Ethiopian Business Development Services Network, 2010).
Ethiopian leather industry initially developed in the context of an import-substitution program and
was highly protected from import competition, particularly in the leather footwear products for the
domestic market (Ethiopian investment agency, 2008). This policy has enabled the sub-sector to
expand rapidly although at the expense of paying scant attention to quality considerations. The
sector has diversified into the production of shoe components and auxiliaries (United Nations,
2002). Currently, 22 tanneries and another 18 enterprises manufacturing leather products operate in
the country, producing products ranging from various forms of semi-processed leather to finished
leather articles such as shoe uppers, leather garments, stitched upholstery, school bags, handbags,
industrial gloves and finished leather. Sheep and goatskins represent the bulk of Ethiopian leather
production. The three main types of skins from Ethiopia – bati, cabretta and selallie – make the
finest leather in the world and are sold at premium prices in the international market. Cabretta,
highland sheepskin, is known for its natural characteristics of clarity, thickness, flexibility, strength
and compact texture, which make it especially suitable for high quality gloves, sports equipment
and garments. Goatskin, classified as bati-genuine and batitype, is characterized by thick, highly
flexible and clean inner surfaces and is in high demand for the production of fashion leathers and
especially suede.

16. 8
On the other hand, are not regarded as particularly attractive in international markets due to their
poor quality and the small size of the zebu, the most common bovine in Ethiopia. The industry
employs more than 8,000 individuals according to the Central Statistical Authority, and has not
shown much increase (less than 1,500 people) in its employing capacity over the five years, from
2002/03 to 2006/07.
Raw skins are collected from peasants and households by skin collectors (roamers) in a traditional
way; the collected skin is stored in temporary preserving stores where the tanneries can access it.
There is considerable wastage, as well as quality deterioration, between collection and processing.
Ethiopian footwear factories produce men’s casual shoes and children’s shoe-uppers made from
pure leather. Leather factories sell directly to overseas importers and wholesalers as well as direct
buying offices. Additionally, the factories facilitate the production and export of footwear under
the private labels of department stores, boutiques, shoe retail chains and mail order houses and
facilitate the production of internationally well-known brands under contract.
The Ethiopian footwear industry produces shoes that are globally competitive in terms of both
quality and price. Due focus is given to maintaining the quality of the hides and skins, leather and
leather products for export. All exports are tested by the Quality and Standards Authority of
Ethiopia (Embassy of Ethiopia, 2010).
Currently, the sector is exporting leather to more than 60 countries, the major destinations Italy, the
United Kingdom and China. Leather products such as shoe uppers, leather garments, stitched
upholstery, school bags, handbags, industrial gloves, and finished leather are also exported to
Europe, the United States, Canada, Japan and the Far East. There are also some export sales to
countries in Africa, in particular to Nigeria and Uganda, as well as to the Middle East, and
especially Yemen (Sutton and Kellow, 2010).
2.1.2. Consumer Purchase Intention
Purchase intention is an important index for evaluation consumer behavior to buy the goods.
According to Spears & Singh, (2004), purchase intentions can be defined as an individual’s
conscious plan to make an effort to purchase a brand. In addition according to Schiffman & Kanuk
(2000:90) the higher the purchase intention is the higher a consumer’s willingness is to buy a
product.

17. 9
Customers purchase decision is a complex process. Purchase intention usually is related to the
behavior, perceptions and attitudes of consumers. Purchase behavior is a key point for consumers
to access and evaluate the specific product. Ghosh (1990) states that purchase intention is an
effective tool to predict buying process.
According to Kotler and Keller (2012: 137) the purchase intention is the consumer behavior which
аppeаrs as а response of objects that shows the costumers' interest to make а purchase. According
to Аssаel (2002: 53), the consumer's purchase intention occurs and is formed after the consumer
conduct а prior evolution to а brand and will buy the brand that can provide the highest level of
satisfaction. It can be said that the purchase intention is the mental statements from consumer’s
that reflect the buying plan of а number of products with а particular brand. Marketers and
economists really need to use the variable of interest to predict consumers’ behavior in the future.
2.1.3. Consumer Purchase Decision Making Process
Consumer decision-making models are widely used in consumer behavior research and study areas
to structure theory and research. Pioneer models of consumer behavior had one simple primary
objective that was a systematic and in-depth understanding of buying processes (Howard, 1994)
The most important environment in which firms operate is their customer environment because the
basic belief of marketing oriented company – that the customer is the center around which the
business revolves. Therefore, marketing people need to understand the processes that their
customers go through when making decision.
The consumer decision making process involves series of related and sequential stages of
activities. The process begins with the discovery and recognition of an unsatisfied need or want. It
becomes a drive. Consumer begins search for information. This search gives rise to various
alternatives and finally the purchase decision is made. Then buyer evaluates the post purchase
behavior to know the level of satisfaction.
2.1.3.1. Steps in Purchase Decision Making Process
Analyzing the consumers’ purchasing decision-making processes is essential to the analysis of this
research study. The consumer decision-making process was first introduced by John Dewey in
1910.

18. 10
Figure 2.1 1 Consumer Purchase Process
Source: John Dewey, 1910
• Need Recognition
The problem/need recognition, consumers recognize a need or a purchase that will not be made.
These are generally triggered by internal stimuli; this step is an important differentiator in
determining how east and West African consumers identify their problems and needs to purchase.
Presently, there is actual need recognition and perceived need recognition, where effective
marketing can place the need in the mind of consumers (Kotler et al., 2012).When a person has an
unsatisfied need, the buying process begins to satisfy the needs. The need may be activated by
internal or external factors. The intensity of the want will indicate the speed with which a person
will move to fulfill the want. On the basis of need and its urgency, forms the order of priority.
Marketers should provide required information of selling points.
• Information Search
The second stage of the process as outline by Dewey (1910) is the information search, which
occurs when the consumer has recognized the need and then searches for information that can
satisfy the need (Kotleret al., 2012). This stage is typically where companies make use of
marketing, advertising and public relations to disseminate knowledge to their consumers.
However, it remains to be proven whet her the information needs to be consistent with needs and is
required to address needs, or whether the information actually creates a need in the consumer, or
whether this information is rendered useless to the consumer. Identified needs can be satisfied only
when desired product is known and also easily available. Different products are available in the
market, but consumer must know which product or brand gives him maximum satisfaction. And
the person has to search out for relevant information of the product, brand or location. Consumers
can use many sources e.g., neighbors, friends and family. Marketers also provide relevant
information through advertisements, retailers, dealers, packaging and sales promotion, and window
displaying. Mass media like newspapers, radio, and television provide information. Now a day’s
Need
Recognition
Information
Search
Evaluation
of
alternatives
Purchase
Decision
Post-
Purchase
Behavior

19. 11
internet has become an important and reliable source of information. Marketers are expected to
provide latest, reliable and adequate information.
• Evaluation of Alternatives
The third step is the evaluation of alternatives, where the consumer analyses alternatives based on
factors of the product service mix. Consumers evaluate the price versus the quality, and branded
versus non-branded goods to determine the best fit for themselves. This is usually where
companies/retailers need to find ways to attract and retain customers (Kotleret al., 2012). It is
valuable to determine the manner in which this is done in East and West African markets.
This is a critical stage in the process of buying. Following are important elements in the process of
alternatives evaluation a) a product is viewed as a bundle of attributes. These attributes or features
are used for evaluating products or brands. For example, in washing machine consumer considers
price, capacity, technology, quality, model and size. b) Factors like company, brand image,
country, and distribution network and after-sales service also become critical in evaluation and c)
Marketers should understand the importance of these factors to consumers of these factors to
consumers while manufacturing and marketing their products.
• Purchase Decision
The fourth step of the process is the actual purchase. Consumers are likely to be influenced by
previous experience. In addition, Kotler, Keller, Joshy and Jha (2012) claimed that the final
purchase decision can be disrupted by two factors: negative feedback from other customers and the
level of motivation to comply or accept the feedback from those customers. This means the effort
of the purchase also has to be well-understood in the consumers’ decision-making process and the
importance of the purchase for East and West African consumers must furthermore be determined.
Outcome of the evaluation develops likes and dislikes about alternative products or brands in
consumers. This attitude towards the brand influences a decision as to buy or not to buy. Thus the
prospective buyer heads towards final selection. In addition to all the above factors, situational
factors like finance options, dealer terms, falling prices etc., are also considered.
• Post- Purchase Behavior
The fifth and final step is the post-purchasing behavior of consumers. This step includes the level
of satisfaction or dissatisfaction that the consumer feels from a specific experience or product and
the impact of this on their repeat purchase behavior (Kotler, Keller & Jha, 2012). This behavior of

20. 12
consumer is more important as for as marketer is concerned. Consumer gets brand preference only
when that brand lives up to his expectation. This brand preference naturally repeats sales of
marketer. A satisfied buyer is a silent advertisement. But, if the used brand does not yield desired
satisfaction, negative feeling will occur and that will lead to the formation of negative attitude
towards brand. This phenomenon is called cognitive dissonance. Marketers try to use this
phenomenon to attract user of other brands to their brand
2.1.4. Factors Affecting Consumer Purchase Intentions
Consumers’ purchase intention is influenced by a number of different factors, similar as cultural,
social, personal, and psychological factors. In the case of this study the researcher concentrates on
marketing factors as factors listed above has been covered in various previous studies.
Purchase intention may be changed under the influence of price or perceived quality and value. In
addition, consumers are affected by internal or external motivations during the buying process
(Gogoi, 2013). Researchers have proposed six stages before deciding to buy the product, which
are: awareness, knowledge, interest, preference, persuasion and purchase (Kotler & Armstrong,
2010) and (Kawa et al., 2013).
2.1.4.1. Brand Name
Generally brand is a name and symbol. It is a very important tool to create a positive image in
customers. Brand has a very important role in creating loyal customers and retaining companies’
market share. Loyal customers are loyal to brand, do repurchase and recommend brand to others.
Brand loyalty means customers pay more money to particular brand against similar products
(Erics, et al., 2012).
Brand names can also protect consumers by serving as identifiers for product manufacturers. The
strength of the brand has been found to be influenced by consumers' perceptions and understanding
of what they have learned, observed, understood, and heard about the brand name. For customers,
the brand name can make the selection simpler, promise a certain level of quality, reduce risk and /
or build trust (Αssali, 2016).
Consumers prefer to buy a well-known product with a well-known brand name in order to avoid
taking the risk of trying a new one. Their loyalty to the product and to the brand name is influenced
by the image of the store, the image of the brand and also their satisfaction of the product, which

21. 13
leads to the continuous buying behavior of the brand. Usually, the consumer uses his previous
experience of the product when he is about to buy a brand name regardless of its performance,
quality, and aesthetics (Αssali, 2016).
The strength of the brand is vital to the procedure of the brand expansion. The international
literature states that the strength of the brand is perceived both objectively and subjectively.
ShwuLng and Chen-Lien (2009) reported that market share, channel potential, distribution and the
cost of promotion and advertising reflect the objective side of perception. They further explained
that the overall consumer rating for the brand is at the top as it typically produces more publicity
and market share, with the result that these brands are considered superior to consumers. They also
argued that the key components of a brand's image are its awareness and brand preference. These
two components have an impact on the image of the main brand and are positively related to the
attitude of the main brand (Shah et al., 2012).
2.1.4.2. Product quality
Product quality is a key factor in assessing purchase intention. It is a continuous process of
improvement that the continuous changes increase product performance and consequently the
satisfaction of customers’ needs. Quality should be improved every moment (Tariq et al., 2013).
Product quality is the ability of a product to demonstrate its function; it includes overall durability,
reliability, accuracy, ease of operation and product reparation as well as other attributes (J. C.
Hallak, 2006). Based on the theory put forward the means of product quality is defined as the
assessment of consumers about product attributes in products that will meet the needs and provide
benefits to consumers. Quality is also a dominant element to sell to consumers. Eight dimensions
of product quality that marketers can play. Performance, feature, reliability, conformance,
durability, serviceability, aesthetics, and perceived quality are the eight dimensions.
Performance is the main characteristic or function of a product. This is the main benefits or
benefits of the products we buy (A. Neely, 2002). Usually, this is the first consideration we buy the
product. The second dimension is reliability, i.e., the opportunity for a product free from failure
when performing its function.
Providing the warranty comprises the indication of product reliability (C. A. Kelley, 1988). The
dimensional feature is characteristic or additional characteristics that complement the primary

22. 14
benefits of a product. Features are optional or option for consumers. New features of a product
tend to make consumers decide to purchase (S. M. Nowlis and I. Simonson, 1996). Durability
indicates the age of the product, i.e., the amount of use of a product before it is replaced or
damaged. Durability is another new option for the consumer to compare one and another product
(M. Kostecki, 2013). Conformance is the conformity of product performance with the stated
standard of a product. It is a kind of promise that must be fulfilled by the product (S. Ghose and S.
K. Mukhopadhyay, 1993).
The next dimension is the aesthetic dimension is regarded as the beauty of the product display (S.
Charters, 2006). The last aspect is perceived quality. This concerns consumer ratings of imagery,
brands, or advertisements. Well-known branded products are usually perceived to be more
qualified than the inaudible brands (J. B. Gotlieb, D. Grewal, and S. W. Brown, 1994). Based on
the above dimensions, it can be concluded that a quality dimension is a requirement for a product
value allows being able to satisfy customers as expected
2.1.4.3. Product Packaging
Packaging in its new role acts as the representative of manufacturer and through this position it can
be used as the carrier of advertising messages, purchase motivational tool, and the carrier of
company slogan (Rahimniya et al., 2012). Nowadays, there is no doubt that proper packaging can
create distinctiveness for most of the companies. Therefore, companies now focus on the different
aspects of packaging and recognize that even with slight change in packaging high profitability can
be gained in product sale (Yang, 2004).
Product packaging is used for protecting a product from the external environment and promotion
purposes (Raheem, Ahmad, Vishnu & Imamuddin, 2014). Packaging and its sub-factors have a
positive effect on consumer purchase intentions (Ahmad, Billoo & Lakhan, 2012). Raheem,
Ahmad, Vishnu & Imamuddin (2014) suggest that the process of consumer decisions lack
objectivity, consistency and rationality. Therefore, they often make a judgment of quality based on
packaging. Prior studies have found that packaging is an important tool for promoting products and
stimulating purchase intentions (Rundh, 2007). The design, quality and color of packaging also
have a strong influence on consumer buying behavior (Raheem, Ahmed, Vishnu & Imamuddin,
2014). It has also been suggested that packaging is an ultimate selling proposition which helps

23. 15
consumers to differentiate products (Underwood, 2003; Silayoi, & Speece, 2007; Bagozzi, Yi &
Baumgartner, 1990).
Mueller & Lockshin (2008) found a strong association between product packaging, consumer
purchase intentions and brand experience. The visual appeal of product packaging is also a medium
for marketing promotions (Silayoi & Speece, 2007). When consumers purchase high involvement
products they give more importance to written information on packaging labels. In low
involvement products, consumer purchase intentions depend on the design of packaging (Sehrawet
& Kundu, 2007)
2.1.4.4. Product Price
Price is undoubtedly one of the most influential factors in the perceptions of products on the
market. According to Beneke et al. (2015), price is a real clue that consumers use in their
purchasing decisions. The price variable is always present in the daily purchase and represents the
value of the economic expenditure (Girard T. et al., 2017) refers as the sacrifice value) that must be
given up by consumers to carry out a certain purchase transaction. Considering that the price
represents “a sacrifice”, this variable has a contrary position to the purchase intention where
generally the higher prices, the lower purchase possibilities. Although, in some cases, researchers
like Nevin e Houston (1980), Mitchell (2010), and Kara, et al. (2009) explained that consumers do
not always see price in a negative way, which represents economic expenses, instead it is a
complex variable on purchase decision. They suggest that price could be a signal of product quality
and represents elegance and status. These price role perceptions, negative or positive, give rise to
consumer’s price image.
The price image comprises a subjective and multidimensional concept, which involves emotional
factors associated to products or services. Thus, consumer’s perception about price is built through
a complex process and does not necessarily reflect the real brand or product price. Therefore, the
gap between the true price and the consumers’ perceptions about price can be large. The price can
have a greater impact on purchase intentions when other extrinsic tips such as the brand-value (or
product-value) or intrinsic tips related to the physical properties of the object are not clearly
defined. Well-known brands, such as a strong extrinsic tip, have a symbolic level that positively
affects their perception of value. Thus, when the brand name gives evidence of the company’s

24. 16
reputation, the consumer may prefer to use the brand to infer quality and value and consequently
the purchase instead of the price. (Hazlett R.L., & Benedek J. 2007)
There are two vital concepts when we think about the price image formation:
• Value consciousness: means the consumer evaluation in a purchase decision in which price
paid is compared to the benefits received with the product or service. (Girard T. et al.,
2017)
• Price consciousness, which is the price perception for some consumers.
However, the term “price consciousness” has been broadly used to refer to consumer perception
about price (Girard T. et al., 2017); we use the term to refer to how much interest consumers have
in saving money and, consequently, paying lower prices. Several researchers presented the price
awareness associated to the priority consumers attribute to pay low price, instead of other aspects
like quality, design, style, and so on.
2.1.4.5. Product Advertising
Advertising is a subset of promotion mix that is as 4p (Product, price, place and promotion) in
marketing mix. Advertising as one of the strategies of promotion, is an important tool in creating
awareness in the minds of potential customers in order to make decision to buy the product.
Manufacturers create an emotional link with customers through advertising. As a result, it is more
likely that these kinds of customers create an emotional link with the ads of that bran (Latif and
Abideen, 2011). When the customer pays attention to advertising, he/she creates a feeling toward it
that leads to brand promotion and those who have good feeling toward brand develop desired
attitude toward it.
Nobody can escape from the wide influence of mass media such as newspaper,
television, advertising, movies, music, magazines and internet etc. in today’s competitive world.
Advertisement is a great source for promoting the business in the whole market which has become
an important issue to build up the product’s strong image in consumer’s mind. Advertisement is
regarded as one of the most powerful and effective promotional tools to reach customers which
gives information, persuade, reminds and convinces as well as creates a brand image on the buyers
of the product (Sumathi & Begum, 2016). Advertising is considered as the best way to

25. 17
communicate consumers and convince them towards their products and also considered as long
lasting tool to set image on consumer’s mind regarding any idea or product (Abideen et al., 2011).
Rafique (2012) argued that buying behavior of people is highly influenced by culture because
people have different wants and trends according to their lifestyle and which are changed by the
advertisement and also creates the needs among them. Advertisements are the source of motivation
that forces the people to buy a particular product and also builds the trust and purchase attitude by
product evaluation and brand recognition through the advertisement because the consumers are
looking for the quality and prices of the product (Rai, 2013).
2.2. Empirical Literature Review
2.2.1. Brand Name and Consumer Purchasing Intention
In previous studies, the relationship between brand equity and consumers’ purchase intention is
investigated (Irshad, 2012). There is a significant relationship between brand equity and the
willingness to recommend brand purchase to others (Azizi & Ajini, 2012). Most of previous
studies tested the influence of brand image on consumers' purchase intention and showed
significant relationship between these variables (Arslan & Altuna, 2010; chi et al., 2008; Tariq et
al., 2013).
Zeeshan (2013) in his study found that brand image has a significant effect on the purchase
intention of men. Divolf (2005) states that there is more likely that high brand awareness lead to
high brand association in the minds of customers. Consequently, it is more likely that brand
awareness leads to the increase of consumer decision to buy that brand (Tih & Lee, 2013). Results
of Hernández and Küster (2012) also suggest that attitude toward brand has a significant impact on
their purchase intention. Kawa et al. (2013) in their study showed that brand name has a significant
impact on the purchase decision of customers. As a result, according to the above discussions, the
first hypothesis is proposed
2.2.2. Product Quality on Purchasing Intention
Chi et al. (2008) concluded that if a product has a better quality, customer will be more inclined to
purchase it. Also, their study emphasized that product quality has a positive impact on customers’
purchase intention. Tsiotsou (2005 and 2006) investigated the higher quality product creates higher
purchase intention toward lower quality products.

26. 18
Jalilvand et al. (2011) investigated the effect of product quality on purchase intention. They
collected 242 questionnaires and found that product quality has a significant and positive effect on
purchase intention. A number of other researchers also found that brand quality has an impact on
customers’ purchase intention (Gogoi, 2013; Tariq et al., 2013; Tih & Lee, 2013; Dursun et al.,
2011; Bao et al., 2011; Levy & Guterman, 2012; Dick et al., 1995).
2.2.3. Product Packaging and Consumer Purchase Intention
The visual aspect of packaging has an especial importance in the process of foods purchase due to
its role in establishing direct relationship with customer and its effect on customer mind (Deng,
2009). As Cahyorini and Rusfian (2011) believe, this aspect can have significant momentarily
effects on customers’ purchases intention due to the fact that customers are affected by appearance
aspects of product especially its packaging in unplanned purchases.
Rahimniya et al. (2012) in their study concluded that visual and functional aspects of packaging
impact on the purchase of foods. Aghazadeh et al (1390) and Deng (2009) in another study
concluded that packaging has a significant impact on customers' purchase.
Accordingto Khraim (2011), packaging has a significant impact on brand loyalty which in turn
effects on customerspurchase intention. Similarly, the study of Kawa et al.(2013) showed a
significant impact of packaging on customer’s purchase intention.
2.2.4. Product Price and Consumer Purchase Intention
Hermann et al (2007) studies showed that price is one important factor in customer purchase;
thereby it has a significant impact on customer satisfaction. Also, consumer satisfaction is affected
by price perception directly and is affected by price fairness indirectly.
In another research, lee et al (2010) studied the effects of consumer perception of price fairness on
its purchase decision and referred to it as a proper predictor for purchase decision of consumer.
Jehri and Sahaskmontri (1998) also state good value in exchange for received money among the
criteria that consumer takes into consideration (Kurdsholi & Bozjani, 2012).
According to Khraim (2011, as cited in Aker, 1991), the price has a significant impact on brand
loyalty which in turn effects on customers purchase intention.

27. 19
2.2.5. Product advertising and Consumer Purchasing Intention
According to Tang et al. (2007), positive response to brand or certain advertising increases the
likelihood of its positive evaluation (Khan et al., 2012). Also, Nabsyeh & Bostan (as cited in
Kurdsholi & Bozjani, 2012) in their studies on Malaysian consumers found that found that
advertising is a powerful device to inform and affect consumer behavior.
Latif and Abideen (2011) in their study examined the impact of advertising on consumer buying
behavior.
2.3. Conceptual framework
Independent Variables
Figure 2.2 1 Conceptual framework
Dependent variable
Product Price
Product Packaging
Product Quality
Brand Name
Consumer’s Purchasing Intention
Product Advertising

28. 20
CHAPTER THREE
3. RESEARCH METHODOLOGY
3.1. Description of the Study Area and Period
The study will be conducted in one of well established companies in the Ethiopia’s leather industry
i.e. Sheba Leather Industry S.C. The study will be conducted in the Bole Sub city. The study will
be conducted from May – July, 2022.
3.2. Research Design
Researches could be descriptive, explanatory, and exploratory. (Robson, 2002) Descriptive
research allows systematic description of a situation, problem, phenomenon, service or program, or
provides information about, say, living condition of a community, or describes beliefs or attitudes
towards an issue at present. (Kothari, 2004)
Whereas explanatory research is conducted when researcher encounters an issue that is already
known and have a description of it, but an understanding is required to existing by discovering and
measuring casual relations among issues in hand. The third type of research is exploratory research
and this type of research conducted because of failing to have clear definitions of problems and
with a purpose of gaining background information which allows clarification of a problem and
better understanding of it. (Grey, 2014)
The study will gather data on five independent variables of consumer purchasing intention from
selected shoe consumers in the Bole Sub city. This means that the study will be descriptive and
cross sectional type in nature.
Furthermore, analysis will be made to find out the effect of independent variables (the five
variables) and the dependent variable (consumer purchasing intention). (Researcher, 2022) Hence,
the study will be descriptive and explanatory type.
3.3. Research Approach
Any research follow either of the two approaches i.e., qualitative or quantitative. Qualitative
researches do not quantify their results through statistical summary or analysis. On the contrary,
quantitative researches involve systematic and scientific investigation of quantitative properties
and phenomena and relationships.( Holme & Solvang, 1997)

29. 21
This study will employ quantitative method to identify the effect each five variables of
nonfinancial rewards on employee’s performance of CBE. Additionally, the study will assess the
perception of employees towards current rewards practice and this can be done using qualitative
method. Therefore, the study will employ mixed research approach.
3.4. Data Type and Data Source
The study will comprise data from different two sources;
3.4.1. Primary Sources
Primary source of eth study will be questionnaire which will be collected through survey from
study participants in the Bole Sub city.
3.4.2. Secondary sources
The study makes use of different resources other than questionnaire which can be tokens secondary
sources. This includes previous literatures, books, journals, articles, and from different website as
well which are believed to have direct and appropriate relationship with area understudy.
3.5. Data Collection procedure
The researcher will collect data from consumers at Bole sub city using survey. The researcher will
address all target respondents after preparation of good rapport will be established by contacting
them at retail shops, wholesalers shops etc.
3.6. Target Population and Sample Size Determination
3.6.1. Target Population
The researcher purposefully selected Bole sub-city as it provides different shoe products appeal to
different socio-economic individual standards; luxury to ordinary shoe, second, it is difficult to
conduct on the whole shoe markets in Addis Ababa. Most of all, Bole sub city is chosen as it is the
location for the Head Office of Sheba Leather Industry. Additionally, most of the shops for Sheba
Leather shoes are found in the Bole sub city.
According to the data found from Addis Ababa City Trade Office, there are 1978 retailers and
wholesalers in the Bole Sub city. This the second largest number next to Addis Ketema Sub city.

30. 22
3.6.2. Sample Size Determination
In order to enhance the efficiency of the research, it is useful for managerial suitability and may
yield gain in precision of the estimates of the characteristics of the whole population (Kothari,
2004). Since the number of consumers in the Sub city is unknown and large in number the
researcher will make use of a formula Cochran’s (1977) formula to draw sample size for the study.
n
Where: n0 = Sample size z = Standard deviation given
corresponding confidence level of 95% p = Estimated proportion of
incidence (success rate =0.5) q = (1- p) or assumed failure rate (0.5)
e = the margin of error=5%
n
3.7. Sampling Technique
The study aimed to know the factors affecting consumer purchase intention towards Sheba leather
shoes. In this regard, the researcher will employ random sampling technique to allow equal
participation all consumers in the Bole Sub city.
3.8. Data Collection Tools
Questionnaire will be used as the main tool in collecting data from consumers in the Bole sub city.
Questionnaire is a quick method of collecting data as it consumes less time and flexible in covering
whole sample with preplanned time frame.
3.9. Validity and Reliability
3.9.1. Validity
Quality of data in research could be measured in different ways and validity is one of them. This
study will employ pilot in the early stages of the data collection to measure as if the respondents
have clear understanding on the contents of the questionnaire. Additionally, the researcher will
make use of face to face assistance to the respondents in view of helping respondents with any
challenges and ambiguities.

31. 23
3.9.2. Reliability
Reliability concerns the extent to which an experiment, test or any measuring procedure yields the
same results on repeated trials (Carmines and Richard, 1979). The researcher will make use of
Cronbach’s alpha to measure reliability as it is a tool significantly useful in checking internal
consistency of the collected data. According to this tool, the value for each variable will be taken
as reliable if it exceeds the standard value of 0.7.
3.10. Data management and Analysis
Consumer’s response towards the questions related to purchase intention will be gathered through
questionnaire as it has been depicted above. The next task ahead will be editing and checking the
responses to see if they are fit to be coded and analyzed.
The data to the SPSS will be analyzed quantitatively via descriptive statistical tools such as
frequency, minimum and maximum value, mean and standard deviation. Inferential statistics like
correlation and regression analysis will also be made to identify the effect of identified five
variables on the consumer’s purchase intention.
3.11. Ethical consideration
The researcher will follow ethical ways in undertaking this study. First of all the ethical clearance
will be obtained from Ambo University Research Committee. Participants will sign prepared
informed consent. Customers or study participants will be guaranteed about the confidentiality of
information and identity of individuals will not be mentioned in the study.
3.12. Model Specification
The following model is specified to measure the effect of identified five factors on the consumer’s
purchase intention.
Y = (β0+ β1x1+ β2 x2+ β3 x3+ β4 x4 + β5 x5) + error term
Where: Y = Consumer Purchase Intention (dependent variable)
β0 =the coefficient of the constant or y-intercept, β1 = the
coefficient of Brand Name (X1) β2 =the coefficient of

32. 24
Product Quality (X2), β3 =the coefficient of Product
Packaging (X3),
β4 =the coefficient of Product Price (X4), β5 =
the coefficient of Product Advertisement (X5),
Error term = the difference between the predicted and observed value of Y

33. 25
4. TIME AND BUDGET SCHEDULE
4.1. Time schedule
NO Activity Months
April May June
1 Title selection
2 Proposal writing
3 Writing literature
4 Data collection
5 Data entry
6 Data analysis and interpretation
7 Editing
8 Completion of the whole study
9 Submission of graft report
10 Submission of final report
Table 4.1 1 Time frame
4.2. Budget plan
NO Activities Cost
1. Transport 500
2. Telephone 400
3. Photo copy and print 300
4. Stationary and material cost 250
5. Typesetting and binding 500
6. Contingency 250
Total 2200
Table 5.1 1 Budget Plan

34. 26
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Appendices
AMBO UNIVERSITY

38. 30
SCHOOL OF POST GRADUATE STUDIES
MASTERS OF BUSINESS ADMINISTRATION PROGRAM
Survey Questionnaire
Dear Respondents,
I am a post graduate student of Business Administration at AmboUniversity, School of Post
Graduate and conducting a research on “FACTORS AFFECTING CONSUMER’S PURCHASE
INTENTION THE CASE OF SHEBA LEATHER INDUSTRY S.C.”. The
research contributes towards the fulfillment of the Master’s Degree in business Administration
(MBA).
The validity of your response has great contribution for the success of my thesis. Thus, I would
like to ask with due respect to give me the right response. All responses that you provide are
strictly confidential and will be used only for academic purpose.
Instruction
• In filling the questionnaire you are not expected to write your name,
• put √ or × marks in the box provided
• Write your brief answers in the space provided.
Thanks for your cooperation.
Sincerely,
Beza Murad
SECTION A: REPONDENT:S BACKGROUND
i. Gender: Male Female

39. 31
ii. Age Group: 20 –27 60 and above
36 –60
iii. Experience Using the Product: 1 –5 6 – 10
10 and above iv. Qualification:
High School Diploma First degree
Masters PHD
v. Monthly Income: < 5,000 Birr 5,000 – 10,000 Birr
>10,000 Birr
SECTION B: Questions related to Purchase Intention
Please indicate your level of agreement based on the following rating scale:
Where: 1 = Strongly Disagree 2 = Disagree 3 = Neutral 4 = Agree 5 = Strongly Agree 1.
Factors that affect Consumer purchase Intention
No. Brand Name
Rating Scale
1 2 3 4 5
Items
1 I buy Sheba leather shoes because its features come to my mind
quickly
2 I buy Sheba leather shoes because I am familiar with it
3 I buy Sheba leather shoes because I think it is the number one among
other competing brands
4 I try to stick to certain footwear brands and Sheba Leather shoes is
one of them
5 I pay more attention to brand name
6 I buy Sheba’s leather shoes because I think it's the number one
brand
No. Product Quality
Rating Scale
1 2 3 4 5
Items

40. 32
1 I consider the reliability of Sheba leather brand when buying
footwear brands
2 I prefer Sheba footwear brands as they have high quality
3 I prefer Sheba shoe’s durability at the time of purchase decision
4 I prefer Sheba brand as they have the ability to satisfy stated or
implied needs
5 Easy-carry on leather shoes packaging has an impact on my buying
decision.
No. Product Packaging
Rating Scale
1 2 3 4 5
Items
1 Design of good wrapper inspires me while I buy Sheba Leather
shoes
2 The packaging material in Sheba Leather products shows the
products are enriched with quality
3 Appealing graphics on Sheba leather shoes packaging have an
impact on my buying decision
4 The font used in writing the name and features of the powder milk
product influences my behavior on buying decision.
5 Images of people on Sheba leather packaging shoes packaging have
an impact on my buying decision.
6 Packed leather shoe products in a unique and variety manner
influences my buying decision of a product.
7 There is a habit of giving employees who achieve better extra time
off to do something else besides works
No.
Product Price Rating Scale
1 2 3 4 5

41. 33
Items
1 I buy Sheba leather shoe because it's affordable
2 I buy Sheba leather shoe it's priced fair
3 I buy Sheba leather because it has low price
4 When I buy Sheba leather shoe products, I am sure that I am getting
my money‘s worth
No.
Product Advertising Rating Scale
1 2 3 4 5
Items
1 I buy leather shoe because it is advertised on TV and Radio
2 I buy leather shoe because it has an attractive and recognizable
advertisement
3 Ads have influence over the types of leather shoes I buy
2. Consumer’s Purchase Intention
No. Purchase Intentions
Rating Scale
1 2 3 4 5
Items
1 Friends’ recommendation motivates me to purchase Sheba’s leather
shoes
2 Hearing positive comments about the brand makes me consider the
purchase of Sheba Leather shoes
3 It makes me feel happy to purchase Sheba Leather shoes
4 I consider Sheba leather shoes as first choice against other locally
produced shoes
5 I will buy Sheba brand shoes more frequently.
6 I will encourage friends and relatives to purchase Sheba brand shoes

42. 34
7 Creation of conducive work environment encouraged high performers
to increase their performance
Thank You for Your Time!!!