An analysis of the effects of consumer behavior on small and medium enterprises (SMEs) in Kafue.
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Date
2023
Authors
Mumba, Brenda
Journal Title
Journal ISSN
Volume Title
Publisher
The University of Zambia
Abstract
Kafue as business settlement area has several small and medium enterprises which are currently dwindling due to several factors ranging from the harsh economic factors that the country is facing at large. But beyond that despite the government emphasizing on the importance of SMEs, it seems
several consumers do not choose to buy from SMEs in Kafue and a number of them are also suffering COVID-19 shock. While Kafue district has over 100 SMEs, generally, SMEs in Kafue are not doing well and hence, they need some form of capacity building to develop and contribute effectively to national development. It was based on the above facts that the study of this nature has to be conducted. This research focused on analyzing the effects of consumer behavior on the growth of Small and Medium Enterprises (SMEs) in Kafue district of Lusaka province of Zambia. The main objective of this study was to find out the effects of consumers behavior in context of social, cultural, and buying behaviors on SMEs in Kafue District of Lusaka province Zambia. To analyze the effects of consumer behavior on the growth of SME, the study found out the impact of consumer attitudes related to buying behavior and their perception on the growth of SMEs. This study used case study descriptive research design. A both qualitative and quantitative method of data collection and analysis was applied. Considering the population of consumers and SMEs owners in the study, the researcher applied a purposive sampling selection technique, and 67 participants were selected as 20 owners of SMEs and 47 consumers. The study found that consumer negative behavior towards local SMEs is because of the perceptions they have towards SMEs, and some caused by the practices done by SMEs such as lack of good customer care, unfair pricing to mention but a few. The study also established that their low customer retention by SMEs hence, increasing the number of consumers choosing not to buy from them. The owners of SMEs also lamented that their growth is directly linked to consumers buying from them.
Description
Thesis of Masters in Business Administration.