EFFECTIVENESS OF MARKET PRICE DISSEMINATION CHANNELS IN ETHIOPIA COMMODITY EXCHANGE

Abstract

The purpose of the study was to examine the effectiveness of Ethiopia Commodity Exchange’s market information dissemination among Ethiopia Commodity Exchange members that has been licensed to trade in Ethiopia Commodity Exchange by representing many clients more specifically the objective of the study emphasis gave to explore the kind of market information dissemination channels of Ethiopia Commodity Exchange most frequently used by trade members in the study area, investigate the effectiveness of ECX’s market information for members to make decision about production, pricing, place and promotion and identify the challenges members faced in using market information disseminated by ECX. In order to achieve those objectives attempt was made to answer the following research questions: which market information dissemination channels of ECX are most frequently used by members in the study area, how much Ethiopia Commodity Exchange’s market information is effective to make decision for what are the challenges members are facing in using Ethiopia Commodity Exchange‘s market information dissemination in the study area. Descriptive research design was employed. Both primary and secondary source of data were collected using questionnaire, interview and document analysis. The questioner was used to collect data from 80members using simple random sampling technique. In addition interview was administered with all four employees of ECX Business Information System Division. A Multiple Regression model has been used for the effectiveness of market price dissemination channels in the case of ECX. The analysis of quantitative data was made using descriptive statistics; correlation coefficient and ttest were used. The result of data analysis showed that Market Information Kiosks. Interactive Voice Response and Radio is most frequently used by ECX members and followed by Short Message Service. However, Electronics Price Ticker was not frequently used as intended. Moreover, the effectiveness of Market information for ECX members was found at moderate level. The challenges ECX members faced to use market information were associated with infrastructure, language used for production and dissemination of the information and knowledge of users to understand and analyze. Based up on the findings and conclusion made recommendations like; promotion of information kiosks, Utilization of solar energy source and conducting annual stakeholders meeting and action research for feedback were forwarded.