Article abstract

Journal of Agricultural and Crop Research

Research Article | Published November 2020 | Volume 8, Issue 11. pp. 253-259.

doi: https://doi.org/10.33495/jacr_v8i11.20.169

 

Effects of consumer bargaining power on price flexibility of gari in Imo State, Nigeria

 



 

 

Eze E. U.2

Osuji E. E.2*

 

Email Author

 

1. Department of Agricultural Technology, Federal Polytechnic Nekede Owerri, Imo State, Nigeria.

2. Department of Agricultural Economics, Michael Okpara University of Agriculture Umudike, Nigeria.



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Citation: Eze EU, Osuji EE (2020). Effects of consumer bargaining power on price flexibility of gari in Imo State, Nigeria. J. Agric. Crop Res. 8(11):253-259. doi: 10.33495/jacr_v8i11.20.169.

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 Abstract 


The study examined the effect of consumer bargaining power on price flexibility of gari in Imo State, Nigeria. Data were drawn from the three agricultural zones in the state. A functional market in each of the zones was randomly selected. Primary data were obtained by means of interview schedule (questionnaire) administered to consumers of gari at retailers’ shops. Data were analyzed using descriptive techniques and ordinary least square (OLS) multiple regression analysis. The result showed that mean weekly consumers unit price of gari was ₦47.340/kg with a mean weekly purchase of 5.5 kg/week. About 53.33% of gari consumers have a weak bargaining index of 18.09, while the mean bargaining power of gari is 64.09% and this gave a baseline for gari retail price. The result of multiple regressions showed that the co-efficient of price of substitute (X1) household size (X6) and consumers income (X7) are positive and have significant relationships with consumers’ bargaining power. Consumers’ awareness of their bargaining power and good understanding of marketing system and its modus operandi, price trends, formation and fixing could help them take their proper place as price givers and kings in the market place hence, this study recommends the need for consumers’ to improve their level of education in order reposition themselves to make good use of market information to their advantage in bargaining. Consumers should form co-operative societies through which they can share market information, buy gari in bulk to reduce retail prices and at the same time play a key role in price formation.

Keywords  Bargaining power   consumers   retailers   price flexibility   gari commodity   

 

 

Copyright © 2020 Author(s) retain the copyright of this article.or(s) retain the copyright of this article.

This article is published under the terms of the Creative Commons Attribution License 4.0

 

 

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