Determinants of buyers bargaining in Cloth Market: Evidence from South West Oromia. Determinants of buyers bargaining in Cloth Market

Abstract

Bargaining or not when making cloth buying decision is the concern of this research. The behavior
of buyers in buying clothes has both theoretical as well as practical benefits. This study particularly
examined the determinants of bargaining when buying cloths in selected towns of south west Oromia
region (Jimma, Metu, Bedelle and Nekemte). To undertake this study, the researchers determined a
sample size of 398 out of which 371 have been correctly returned and analyzed. In this study, the
dependent variable is dummy, thus logistic regression analysis was used to find the determinants of
bargaining when buying clothes. The study found out that, males tend not to bargain when buying
cloths as compared to their female counterparts, married tend to bargain more compared to their
single counterparts, employment status has a negative significant impact on bargaining when making
cloth buying decisions, annual income of the household also has a negative significant effect on
bargaining when buying cloths, family size of the household affects the dependent variable positively
and significantly. The policy implication is for the textile industry, for the government as well as the
buyers of cloths. Attention should always be given to the variables in this study when formulating a
policy for the textile industry