THE EFFECT OF ACTUAL PRODUCT QUALITY ON PURCHASE INTENTION – THE CASE OF SELECTED LEATHER HANDBAG MANUFACTURERES IN ADDIS ABABA

Abstract

The aim of this study was to investigate the effect of product quality on purchase intention the case of selected leather handbag manufacturers in Addis Ababa. To achieve the study objectives, explanatory research design along with quantitative approach was applied. The survey was conducted on customers of locally manufacture leather handbags in Addis Ababa. A sample of 384respondents were taken through convenience non-probability sampling method. Of which a total of 314valid responses were obtained and used for the analysis. Structured self-administered questionnaire was used to collect the primary data. Using SPSS 20.0, both descriptive and inferential analysis were conducted for correlation and multiple linear regression analysis to attain the intended objectives. The results showed that all the six dimensions of product quality based on consumers’ perception can be taken as good predictors for purchase intentions as they had strong relationship with purchase intentions. Durability and Performance had relatively the highest effect as local consumers who prefer to buy domestic leather handbags wants to have durable products with lower cost of purchase and maintenance. Aesthetic and seasonality dimensions didn’t have significant effect on purchase intention as following fashion trend and beauty issues matters less for low economic societies. The company should exert more effort on seasonality and aesthetic values of its products to attract more consumers and enhance its sales performance at large.