6
C Analysis of Prod Consumer Prefer Mix in the Osei Mensah, J; Aidoo Abstract The objective of the pape consumers’ preferences for Gari Mix, var production constraints and factors th purchasing decision in the Kumasi Metrop 133 respondents, comprising 100 consume 30 marketers, were interviewed. Using a study found that advertising, years in accessibility and product attributes such and groundnut content significantly a purchasing decisions.Also, it was found ou supply chain faces several constraints of w to credit, high advertisement cost, lo fluctuations and poor storage facilitie important.Different consumers preferred the Gari mix to others. That notwithsta them will importantly consider sugar cont content in their purchasing decisions. Res 59% are indecisive about the attribute o their preference for Gari mix, 53% of favour of the high roasted groundnut importantly consider that in their prefere consider powdered milk content as impo 43% of consumers are in favour of groundnut content. Keywords Gari Mix, Constraints, Con Decision to Purchase. I. INTRODUCTION Cassava (Manihotesculenta) has t regarded as ‘poor man’s food’ but incre as a cash crop are being recognize 2013).Opportunities exist for earnin processed cassava products, but severa the exploitation of these opportu processed to control deterioration of r toxicity. Due to its high perishability a cyanide content, fresh cassava roots sh within 1-2 days of harvesting. These factor high moisture content of approximately marketing and transportation options fo of these, processing of the harvested roo are less perishable appeared to be an im the high post-harvest losses. An importa cassava processing is a local stable called Gari production and marketing remain Ghana’s Agricultural Sector. This is du most Ghanaian staple foods require one the use of gari (FAO, 2005). The sig product is usually centred on price oth view of the fact most consumers mos Copyright © 2013 IJAIR, All right reserved 49 International Journal of Agriculture I Volume 2, Issue 1, duction and Marketing Co rences and Decision to Pur Kumasi Metropolis of Gh o, R; Boakye-Yiadom S. Jnr; Mensah, R; Danq Amankwaa, A. A and Biney, F er was to identify rious marketing and hat influence their polis. A total of one ers, 3 producers and a probit model the n school, product h as sugar content affected consumers ut that the Gari Mix which lack of access ow demand, price es were the most d some features of anding, majority of tent and groundnut sults points out that of sugar content in consumers are in t content and will ence. Also 51% will ortant attribute and the high roasted nsumer Preferences, N traditionally been easingly its utilities ed (Ulrich et al., ng incomes from al factors constrain unities.Cassava is roots and decrease and potential high hould be processed rs, combined with y 70%, restrict the or cassava. In view ots into forms that mportant solution to ant end product of d Gari. n a topical issue in ue to the fact that e form or the other gnificance of Gari her than health. In st perceive gari as being for low income earne nutritious the product has exper al., 2000). These factors consumers’ demand for more consistency and value (Mylene the introduction a value added Ghanaian market. Gari Mix is an enriched rea gari, powdered milk, sugar and the product a nutritious a alternative. The enriched gari protein which is adjudged as ca of poor feeding culture among t especially Ghana where gari i Gari Mix production does not protein content and no visibl flavour, physical appearance highly nutritious and high in die The introduction of Gari Mix producer received high attentio among Ghanaian students. Th attracted other producers who a until the last three years when for the product and hence th market experienced decline. decline in demand and sales? W do consumers look out for be therefore aims to address th consumers’ preference charac analyzing the constraints faced well as determining the factors purchasing decision. This results of this study wi current and potential) of the Ga the factors that should be given is to be achieved. Also, knowin challenges that militate that the and marketers will help impr entire the supply chain. Cons would have value for their m marketers would deliver exact product. II. LITERATUR 2.1. Consumers’ preferen ready to eat foods Literatures have been discov of labelling and packaging, and consumer decision to purchase Manuscript Processing Details (dd/mm/yyyy Received : 26/06/2013 | Accepted on : 12/07 Innovations and Research , ISSN (Online) 2319-1473 onstraints, rchase Gari hana quah, A. O.; ers as well as being less rienced declined (Ernesto et coupled with increasing options, quality, diversity, e and Kirsten, 2001)led to d product, Gari Mix, on the ady-to-eat food made from roasted peanut. This makes and important economic is found to contain 9.63% apable of reducing the level the people of West Africans is a staple. The process of t significantly denature the le change in characteristic and taste is noticed. It is etary fibre. x a decade ago by a single on and demand, especially he success of the product all recorded increasing sales the popularity and demand he sales of producers and What factors led to the What attributes of Gari Mix efore purchase? This study hese issues by examining cteristics for the product, by producers and traders as s that influence consumers’ ill help major players (both ari Mix supply chain know priority attention if success ng and addressing the main e performance of producers rove the efficiency of the sumers on the other hand monies since producers and tly what the need from the RE REVIEW nces characteristics for vered consumers perception d the role of information on e. In Roe, Levy and Derby y) : 7/2013 | Published : 18/07/2013

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Copyright © 2013 IJAIR, All right reserved

Analysis of Production and Marketing Constraints,

Consumer Preferences and Decision to Purchase Gari

Mix in the Kumasi Metropolis

Osei Mensah, J; Aidoo, R

Abstract – The objective of the paper was to identify

consumers’ preferences for Gari Mix, various

production constraints and factors that influence their

purchasing decision in the Kumasi Metropolis. A total of one

133 respondents, comprising 100 consumers, 3 producers and

30 marketers, were interviewed. Using a probit model the

study found that advertising, years in school, product

accessibility and product attributes such as sugar content

and groundnut content significantly affected consumers

purchasing decisions.Also, it was found out that the Gari Mix

supply chain faces several constraints of which lack of access

to credit, high advertisement cost, low demand, price

fluctuations and poor storage facilities were the most

important.Different consumers preferred some features of

the Gari mix to others. That notwithstanding, majority of

them will importantly consider sugar content and groundnut

content in their purchasing decisions. Results points out that

59% are indecisive about the attribute of sugar content in

their preference for Gari mix, 53% of consumers are in

favour of the high roasted groundnut content and will

importantly consider that in their preference. Also 51% will

consider powdered milk content as important attribute and

43% of consumers are in favour of the high roasted

groundnut content.

Keywords – Gari Mix, Constraints, Consumer Preferences,

Decision to Purchase.

I. INTRODUCTION

Cassava (Manihotesculenta) has traditionally been

regarded as ‘poor man’s food’ but increasingly its utilities

as a cash crop are being recognized (Ulrich

2013).Opportunities exist for earning incomes from

processed cassava products, but several factors constrain

the exploitation of these opportunities.Cassava is

processed to control deterioration of roots and decrease

toxicity. Due to its high perishability and po

cyanide content, fresh cassava roots should be processed

within

1-2 days of harvesting. These factors, combined with

high moisture content of approximately 70%, restrict the

marketing and transportation options for cassava. In view

of these, processing of the harvested roots into forms that

are less perishable appeared to be an important solution to

the high post-harvest losses. An important end product of

cassava processing is a local stable called Gari.

Gari production and marketing remain a

Ghana’s Agricultural Sector. This is due to the fact that

most Ghanaian staple foods require one form or the other

the use of gari (FAO, 2005). The significance of Gari

product is usually centred on price other than health. In

view of the fact most consumers most perceive gari as

Copyright © 2013 IJAIR, All right reserved

49

International Journal of Agriculture Innovations and Research

Volume 2, Issue 1, ISSN (Online) 2319

Analysis of Production and Marketing Constraints,

Preferences and Decision to Purchase Gari

Mix in the Kumasi Metropolis of Ghana

Aidoo, R; Boakye-Yiadom S. Jnr; Mensah, R; Danquah, A. O.

Amankwaa, A. A and Biney, F

The objective of the paper was to identify

consumers’ preferences for Gari Mix, various marketing and

production constraints and factors that influence their

purchasing decision in the Kumasi Metropolis. A total of one

133 respondents, comprising 100 consumers, 3 producers and

30 marketers, were interviewed. Using a probit model the

nd that advertising, years in school, product

accessibility and product attributes such as sugar content

and groundnut content significantly affected consumers

purchasing decisions.Also, it was found out that the Gari Mix

ints of which lack of access

to credit, high advertisement cost, low demand, price

fluctuations and poor storage facilities were the most

important.Different consumers preferred some features of

the Gari mix to others. That notwithstanding, majority of

m will importantly consider sugar content and groundnut

Results points out that

59% are indecisive about the attribute of sugar content in

ari mix, 53% of consumers are in

ted groundnut content and will

importantly consider that in their preference. Also 51% will

consider powdered milk content as important attribute and

43% of consumers are in favour of the high roasted

Gari Mix, Constraints, Consumer Preferences,

NTRODUCTION

has traditionally been

regarded as ‘poor man’s food’ but increasingly its utilities

as a cash crop are being recognized (Ulrich et al.,

pportunities exist for earning incomes from

processed cassava products, but several factors constrain

the exploitation of these opportunities.Cassava is

processed to control deterioration of roots and decrease

toxicity. Due to its high perishability and potential high

cyanide content, fresh cassava roots should be processed

2 days of harvesting. These factors, combined with

high moisture content of approximately 70%, restrict the

marketing and transportation options for cassava. In view

processing of the harvested roots into forms that

are less perishable appeared to be an important solution to

harvest losses. An important end product of

cassava processing is a local stable called Gari.

Gari production and marketing remain a topical issue in

Ghana’s Agricultural Sector. This is due to the fact that

most Ghanaian staple foods require one form or the other

The significance of Gari

product is usually centred on price other than health. In

fact most consumers most perceive gari as

being for low income earners as well as being less

nutritious the product has experienced declined (Ernesto et

al., 2000). These factors coupled with increasing

consumers’ demand for more options, quality, divers

consistency and value (Mylene and Kirsten, 2001)led to

the introduction a value added product, Gari Mix, on the

Ghanaian market.

Gari Mix is an enriched ready

gari, powdered milk, sugar and roasted peanut. This makes

the product a nutritious and important economic

alternative. The enriched gari is found to contain 9.63%

protein which is adjudged as capable of reducing

of poor feeding culture among the people of West Africans

especially Ghana where gari is a staple. The process of

Gari Mix production does not significantly denature the

protein content and no visible change in characteristic

flavour, physical appearance and taste is noticed. It is

highly nutritious and high in dietary fibre.

The introduction of Gari Mix a decade ago by a single

producer received high attention and demand, especially

among Ghanaian students. The success of the product

attracted other producers who all recorded increasing sales

until the last three years when the popularity and demand

for the product and hence the sales of producers and

market experienced decline. What factors led to the

decline in demand and sales? What attributes

do consumers look out for before purchase? This study

therefore aims to address these issues by examining

consumers’ preference characteristics for the product,

analyzing the constraints faced by producers and traders as

well as determining the factors that influence consumers’

purchasing decision.

This results of this study will help major players (both

current and potential) of the Gari Mix supply chain know

the factors that should be given priority attention if success

is to be achieved. Also, knowing and addressing the main

challenges that militate that the performance of producers

and marketers will help improve the efficiency of the

entire the supply chain. Consumers on the other hand

would have value for their monies since producers and

marketers would deliver exactly what the need from the

product.

II. LITERATURE

2.1. Consumers’ preferences characteristics for

ready to eat foods Literatures have been discovered consumers perception

of labelling and packaging, and the role of information on

consumer decision to purchase. In Roe, Levy and Derby

Manuscript Processing Details (dd/mm/yyyy) :

Received : 26/06/2013 | Accepted on : 12/07

International Journal of Agriculture Innovations and Research

, ISSN (Online) 2319-1473

Analysis of Production and Marketing Constraints,

Preferences and Decision to Purchase Gari

of Ghana

Danquah, A. O.;

being for low income earners as well as being less

nutritious the product has experienced declined (Ernesto et

al., 2000). These factors coupled with increasing

consumers’ demand for more options, quality, diversity,

consistency and value (Mylene and Kirsten, 2001)led to

the introduction a value added product, Gari Mix, on the

is an enriched ready-to-eat food made from

gari, powdered milk, sugar and roasted peanut. This makes

the product a nutritious and important economic

alternative. The enriched gari is found to contain 9.63%

protein which is adjudged as capable of reducing the level

of poor feeding culture among the people of West Africans

especially Ghana where gari is a staple. The process of

Gari Mix production does not significantly denature the

protein content and no visible change in characteristic

pearance and taste is noticed. It is

highly nutritious and high in dietary fibre.

The introduction of Gari Mix a decade ago by a single

producer received high attention and demand, especially

among Ghanaian students. The success of the product

her producers who all recorded increasing sales

until the last three years when the popularity and demand

for the product and hence the sales of producers and

market experienced decline. What factors led to the

decline in demand and sales? What attributes of Gari Mix

do consumers look out for before purchase? This study

therefore aims to address these issues by examining

consumers’ preference characteristics for the product,

analyzing the constraints faced by producers and traders as

factors that influence consumers’

This results of this study will help major players (both

current and potential) of the Gari Mix supply chain know

the factors that should be given priority attention if success

, knowing and addressing the main

challenges that militate that the performance of producers

and marketers will help improve the efficiency of the

entire the supply chain. Consumers on the other hand

would have value for their monies since producers and

rketers would deliver exactly what the need from the

ITERATURE REVIEW

2.1. Consumers’ preferences characteristics for

Literatures have been discovered consumers perception

of labelling and packaging, and the role of information on

consumer decision to purchase. In Roe, Levy and Derby

Manuscript Processing Details (dd/mm/yyyy) :

7/2013 | Published : 18/07/2013

Page 2: Analysis of Production and Marketing Constraints, …ijair.org/administrator/components/com_jresearch/files/... · Analysis of Production and Marketing Constraints, Consumer Preferences

Copyright © 2013 IJAIR, All right reserved

(1999) works, nutritional and health claims suggested that

it was more necessary to bring the label of a product at the

front rather than the back. In a survey conducted by

Cichon and Ucherek (1999), three hundred and eighty

students were asked which packaging attributes influence

their choices when deciding which fruit juice to purchase.

Results showed that functionality, shape, capacity, general

look and ecological aspect were the most important

attributes that determined consumer choice of packaging.

Deliza and Silva (2003) used focus group to come out with

information of high pressure in the fruit juice package as

consumers’ perceptions for instant foods.Robert and

Akorli (2009) said that the Ghanaian consumer country of

origin preferences as derived from the analysis.

It has been established that consumers differentiate

products from different origins, a phenomenon that has

become known by both marketing academics and

practitioners as the country-of-origin (COO) effect

(Agrawal and Kamakura, 1999; Verlegh and Steenkamp,

1999; Bhaskaran and Sukumaran, 2007) As one of the

most extensively researched topics in international

marketing and consumer behaviour, a lot of studies have

been conducted to ascertain whether country of origin

affects product evaluations in many countries. However,

the majority of these studies have focused on consumers in

developed countries. These studies show that consumers in

those countries tend to prefer products from developed

countries to those from less developed countries (Wang

and Lamb, 1983; Jaffe and Martinez, 1995).

Basically, the attitudes of consumers in t

buy locally-made campaigns can be characterized as

protectionist, nationalistic, and self-interest (Ettenson,

Wagner and Gaeth, 1988; Akaah and Yaprak, 1993;

Okechuku and Onyemah, 1999).

2.2 Constraints to Growth of Small

Agribusinesses The survival and growth of the small-

enterprises could be highly constrained by the physical,

institutional and economic environments in Ghana. Such

constraints include inadequate utilization of information

communication technologies, meagre capital outlay

(Adebayo et al., 2004), inadequate credit assistance

(Oluwalana et al., 2004, Adebayo et al., 2004), inadequate

acquisition of literacy and management skills (Abba and

Mustapha, 2004).The Gemini Baseline Survey of 2000,

listed three key constraints faced by Small and Medium

Enterprises (SME) access to resource inputs, access to

finance and market problems but from the three

constraints, access to finance was the major problem

which could be resolved through micro financin

Despite the wide-ranging economic reforms instituted in

the region, SMEs face a variety of constraints owing to the

difficulty of absorbing large fixed costs, the absence of

economies of scale and scope in key factors of production,

and the higher unit costs of providing services to smaller

firms (Schmitz, 1982; Liedholm and Mead, 1987; Steel

and Webster, 1990). SMEs face a variety of constraints in

factor markets (Levy, 1993). However, factor availability

and cost were the most common constraints. The s

problems differs by country, but many of them are related,

Copyright © 2013 IJAIR, All right reserved

50

International Journal of Agriculture Innovations and Research

Volume 2, Issue 1, ISSN (Online) 2319

(1999) works, nutritional and health claims suggested that

the label of a product at the

front rather than the back. In a survey conducted by

Cichon and Ucherek (1999), three hundred and eighty

students were asked which packaging attributes influence

their choices when deciding which fruit juice to purchase.

lts showed that functionality, shape, capacity, general

look and ecological aspect were the most important

attributes that determined consumer choice of packaging.

Deliza and Silva (2003) used focus group to come out with

e fruit juice package as

consumers’ perceptions for instant foods.Robert and

Akorli (2009) said that the Ghanaian consumer country of

origin preferences as derived from the analysis.

It has been established that consumers differentiate

rent origins, a phenomenon that has

become known by both marketing academics and

origin (COO) effect

(Agrawal and Kamakura, 1999; Verlegh and Steenkamp,

1999; Bhaskaran and Sukumaran, 2007) As one of the

earched topics in international

marketing and consumer behaviour, a lot of studies have

been conducted to ascertain whether country of origin

affects product evaluations in many countries. However,

the majority of these studies have focused on consumers in

developed countries. These studies show that consumers in

those countries tend to prefer products from developed

countries to those from less developed countries (Wang

and Lamb, 1983; Jaffe and Martinez, 1995).

Basically, the attitudes of consumers in these studies to

made campaigns can be characterized as

interest (Ettenson,

Wagner and Gaeth, 1988; Akaah and Yaprak, 1993;

Constraints to Growth of Small-scale

-scale agribusiness

enterprises could be highly constrained by the physical,

institutional and economic environments in Ghana. Such

constraints include inadequate utilization of information

technologies, meagre capital outlay

(Adebayo et al., 2004), inadequate credit assistance

(Oluwalana et al., 2004, Adebayo et al., 2004), inadequate

acquisition of literacy and management skills (Abba and

Mustapha, 2004).The Gemini Baseline Survey of 2000,

listed three key constraints faced by Small and Medium

Enterprises (SME) access to resource inputs, access to

finance and market problems but from the three

constraints, access to finance was the major problem

which could be resolved through micro financing.

ranging economic reforms instituted in

the region, SMEs face a variety of constraints owing to the

difficulty of absorbing large fixed costs, the absence of

economies of scale and scope in key factors of production,

costs of providing services to smaller

firms (Schmitz, 1982; Liedholm and Mead, 1987; Steel

and Webster, 1990). SMEs face a variety of constraints in

factor markets (Levy, 1993). However, factor availability

and cost were the most common constraints. The specific

problems differs by country, but many of them are related,

varying according to whether the business perceived that

their access, availability or cost was the most important

problem and whether they were based primarily on

imported or domestic inputs (World Bank, 1993). Access

to finance remained a dominant constraint to small

enterprises in Ghana. Credit constraints pertaining to

working capital and raw materials, were cited by

respondents (between 24% and 52% in Parker et al, 1995).

Aryeetey et al. (1994) reported that 38% of the SMEs

surveyed mentioned credit as a constraint, in the case of

Malawi, it accounted for 17.5% of the total sample

(Daniels and Ngwira, 1993). From the sample data 5% of

Ghanaian proprietors indicated they had marketi

constraints, (Aryeetey et al., 1994; Daniels and Ngwira,

1993).

Also, inefficient distribution channels often dominated

by larger firms pose important limitations to market access

for SMEs. As noted in the case of Ghana, demand

constraints limited the growth of SMEs (Parker et al.,

1995). In response to this, it can be said that the key

players in any supply chain may have similar constraints

among firms from different industries also. Lack of

capital, poor management and technical know

contribute to a producer’s failure on the market. For

marketers, it can be said that the various marketing

channels and capital to be in the business can prevent them

in gaining maximum profits.

III. RESEARCH M

The study was conducted in the Kumasi

Kumasi is Ghana’s second largest city and capital of the

Ashanti region found in southern Ghana. Kumasi covers

approximately 299 square kilometer size of land and is

located in the transitional forest zone and is about 270km

(by road) north of the national capital, Accra. It is between

latitude 6.35° – 6.40°and longitude 1.30°

study was conducted betweenFebruary 28thand 6th March

2013. Kumasi Metropolis is divided into ten sub

out of which five were selected by simple random

sampling. The sub-metros selected include Asokwa,

Bantama, Oforikrom, Subin and Suame. These five sub

metros were strained to acquire the foundation for sample

selection because of the populous area of the metropolis.

Twenty consumers were selected from e

metropolitansmaking a total of one hundred (100)

consumers. Three producers were identified and

interviewed in the Kumasi metropolis. Also, thirty

marketers (wholesalers and retailers) were selected using

simple random sampling technique and interv

total, one hundred and thirty

distributed. Structured questionnaires were used were used

for all the interviews.

The main study was preceded by a preliminary phase

which involved introductory visits to the study area wh

discussions were held with the actors of the Gari Mix

industry between February 18th and March 1st, 2013.

These discussions helped in the design of the

questionnaires which was later pre tested on some

identifiable actors of the supply chain in the Ac

International Journal of Agriculture Innovations and Research

, ISSN (Online) 2319-1473

varying according to whether the business perceived that

their access, availability or cost was the most important

problem and whether they were based primarily on

ts (World Bank, 1993). Access

to finance remained a dominant constraint to small-scale

enterprises in Ghana. Credit constraints pertaining to

working capital and raw materials, were cited by

respondents (between 24% and 52% in Parker et al, 1995).

et al. (1994) reported that 38% of the SMEs

surveyed mentioned credit as a constraint, in the case of

Malawi, it accounted for 17.5% of the total sample

(Daniels and Ngwira, 1993). From the sample data 5% of

Ghanaian proprietors indicated they had marketing

constraints, (Aryeetey et al., 1994; Daniels and Ngwira,

Also, inefficient distribution channels often dominated

by larger firms pose important limitations to market access

for SMEs. As noted in the case of Ghana, demand

growth of SMEs (Parker et al.,

1995). In response to this, it can be said that the key

players in any supply chain may have similar constraints

among firms from different industries also. Lack of

capital, poor management and technical know-how can all

ribute to a producer’s failure on the market. For

marketers, it can be said that the various marketing

channels and capital to be in the business can prevent them

METHODOLOGY

The study was conducted in the Kumasi Metropolis.

Kumasi is Ghana’s second largest city and capital of the

Ashanti region found in southern Ghana. Kumasi covers

approximately 299 square kilometer size of land and is

located in the transitional forest zone and is about 270km

the national capital, Accra. It is between

6.40°and longitude 1.30° – 1.35°. The

study was conducted betweenFebruary 28thand 6th March

2013. Kumasi Metropolis is divided into ten sub-metros

out of which five were selected by simple random

metros selected include Asokwa,

Bantama, Oforikrom, Subin and Suame. These five sub-

metros were strained to acquire the foundation for sample

selection because of the populous area of the metropolis.

Twenty consumers were selected from each sub-

metropolitansmaking a total of one hundred (100)

consumers. Three producers were identified and

interviewed in the Kumasi metropolis. Also, thirty

marketers (wholesalers and retailers) were selected using

simple random sampling technique and interviewed. In

total, one hundred and thirty -three questionnaires were

distributed. Structured questionnaires were used were used

The main study was preceded by a preliminary phase

introductory visits to the study area where

discussions were held with the actors of the Gari Mix

industry between February 18th and March 1st, 2013.

These discussions helped in the design of the

questionnaires which was later pre tested on some

identifiable actors of the supply chain in the Accra

Page 3: Analysis of Production and Marketing Constraints, …ijair.org/administrator/components/com_jresearch/files/... · Analysis of Production and Marketing Constraints, Consumer Preferences

Copyright © 2013 IJAIR, All right reserved

metropolis, which was the initial study area for this study.

However, results from the preliminary study and the pre

testing of the questionnaire revealed that most current and

important players of the Gari Mix supply chain are located

within the Kumasi metropolis, hence the change in the

study area.

Frequency tables and percentages were used to present

the attributes and preferences of the product that

consumers consider to be more important and that inform

their purchasing decision. To analyze the con

production and marketing of Gari Mix Kendall’s

Coefficient of Concordance was used. It was used to

identify and prioritize the major constraints in the supply

chain. The constraints were ranked from the most pressing

constraint to the least pressing constraint. Probit model

was used to analyze the factors influencing the buying

decisions of consumers.

Table1. Demographic Characteristics of Respondents

Producers

Frequency

Educational None

0

Basic level 0

Secondary 0

Tertiary 3

Age

< 30 1

31-40 1

41-50 1

>50 0

Sex

Male 2

Female 1Source: Field Survey (2013)

4.2. Description of the Gari Mix Marketing ChannelThe channels for distribution were different for each of

the three producers that were included in the study. The

first producer supplied to both wholesalers and retailers.

The wholesalers and retailers for this producer were

mainly found in the Kumasi Central Market. With this, the

producer was able to produce more to satisfy such

demands.

Fig.1. Marketing Channels forGari Mix In Kumasi MetropolisSource: Authors’ construct (2013)

Copyright © 2013 IJAIR, All right reserved

51

International Journal of Agriculture Innovations and Research

Volume 2, Issue 1, ISSN (Online) 2319

metropolis, which was the initial study area for this study.

However, results from the preliminary study and the pre-

testing of the questionnaire revealed that most current and

important players of the Gari Mix supply chain are located

i metropolis, hence the change in the

Frequency tables and percentages were used to present

the attributes and preferences of the product that

consumers consider to be more important and that inform

their purchasing decision. To analyze the constraints to the

production and marketing of Gari Mix Kendall’s

Coefficient of Concordance was used. It was used to

identify and prioritize the major constraints in the supply

chain. The constraints were ranked from the most pressing

pressing constraint. Probit model

was used to analyze the factors influencing the buying

IV. LTS AND D

4.1. Demographic Characteristics of RespondentsTable 1 presents the educational level, age and sex of

producers, marketers and consumers of Gari Mix. The

table shows that for the all the three producers had attained

tertiary education. More than half of the marketers have

only basic education and majority of the consumers are

with tertiary education. All of the produ

ranges, less than 30years. Majority of the marketers are

within the age group of 31-50 whilst majority of the

consumers are less than 30years (89%).Table 1 indicates

that 66.7% of producers are males and 33.3% females,

20% of marketers are males and 80% females. Male

consumers represent 53% while females form 47%.

Table1. Demographic Characteristics of Respondents

Producers Marketers

Frequency % Frequency % Frequency

0

0

3

10.0

0 0 17 56.7

0 0 7 23.3

3 100 3 10.0

1 33.3 5 16.7

1 33.3 6 20.0

1 33.3 17 56.6

0 0.0 2 6.7

2 66.7 6 20

1 33.3 24 80

Description of the Gari Mix Marketing Channel The channels for distribution were different for each of

the three producers that were included in the study. The

first producer supplied to both wholesalers and retailers.

The wholesalers and retailers for this producer were

tral Market. With this, the

producer was able to produce more to satisfy such

The second producer had a different supply channel

ignoring wholesalers and dealing with retailers directly.

Reasons given were that wholesalers were not to be trusted

and that it was quite better to transport the products to the

retailers. Also, it was given that retailers were selling the

products to consumers with minimal profit.The last

producer was dealing directly with its consumers. This

was because the target market was closer to the firm and

therefore the need for intermediaries was of no use

according to the producer.

Marketing Channels forGari Mix In Kumasi Metropolis

International Journal of Agriculture Innovations and Research

, ISSN (Online) 2319-1473

DISCUSSIONS

Demographic Characteristics of Respondents Table 1 presents the educational level, age and sex of

marketers and consumers of Gari Mix. The

table shows that for the all the three producers had attained

tertiary education. More than half of the marketers have

only basic education and majority of the consumers are

with tertiary education. All of the producers are within the

ranges, less than 30years. Majority of the marketers are

50 whilst majority of the

consumers are less than 30years (89%).Table 1 indicates

that 66.7% of producers are males and 33.3% females,

are males and 80% females. Male

consumers represent 53% while females form 47%.

Consumers

Frequency %

0

0

9 9

56 56

35 35

89 89

7 7

4 4

0 0

53 53

47 47

The second producer had a different supply channel

ignoring wholesalers and dealing with retailers directly.

Reasons given were that wholesalers were not to be trusted

and that it was quite better to transport the products to the

retailers. Also, it was given that retailers were selling the

products to consumers with minimal profit.The last

producer was dealing directly with its consumers. This

ket was closer to the firm and

therefore the need for intermediaries was of no use

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Copyright © 2013 IJAIR, All right reserved

4.3. Consumers preference characteristics for

GariMix Table 4.3 displays consumer’s preference characteristics

for Gari Mix looking at various attributes. Fifty nine per

cent (59%) are indecisive about sugar content whilst 11%

(extremely important and important) are in favour of high

sugar content and will consider that in their purchasing

decision 30% will not consider that in their purchasing

decisions.Fifty three per cent (53%) (important and

extremely important) of consumers are in favour of the

high roasted groundnut content and will importantly

consider that in their purchasing decision, whilst 34%

(extremely not important and not important) are not in

favour of the high roasted groundnut content and 13% are

neutral. Fifty-one per cent (51%) (important and

Table 2: Consumers preference characteristics for Gari mix looking at the various attributes

Sugar Content

Frequency

Extremely not

important

21

Not important 9

Neutral 59

Important 8

Extremely

important

3

Source: Field Survey (2013)

4.4. Constraints in the Gari Mix Supply Chain

4.4.1. Production constraints Constraints that had a mean score of above 3 (mid

of a 5-point Likert scale) in table 3 below were considered

to be binding. This implies that lack of access to credit,

high cost of advertisement and fixed costs and high costs

of raw materials were considered to be the most binding

constraints to the production of Gari Mix. The limited

access to finance makes it difficult for producers to

acquire the right technology needed for eff

production and packaging. Analysis of these constraints

using Kendall’s W test showed 77.8% signifying that there

is 77.8% level of agreement among the three producers

identified as far as the importance of these constraints are

concerned. These findings are consistent with Aryeetey

(1996) and Dapaah and Konadu (2002) who both found

limited access to finance as a major constraints to small

Table 3: Constraints to the Production ofGari Mix

Constraints Identified

Lack of access to credit

High advertisement cost and high fixed

cost

High cost of raw materials

High energy cost and power problems

High cost of transportation

(Kendall’s W= 0.778, df= 4, Asymp. Sig. = 0.053)

Copyright © 2013 IJAIR, All right reserved

52

International Journal of Agriculture Innovations and Research

Volume 2, Issue 1, ISSN (Online) 2319

Consumers preference characteristics for

Table 4.3 displays consumer’s preference characteristics

for Gari Mix looking at various attributes. Fifty nine per

cent (59%) are indecisive about sugar content whilst 11%

xtremely important and important) are in favour of high

sugar content and will consider that in their purchasing

decision 30% will not consider that in their purchasing

decisions.Fifty three per cent (53%) (important and

are in favour of the

high roasted groundnut content and will importantly

consider that in their purchasing decision, whilst 34%

(extremely not important and not important) are not in

favour of the high roasted groundnut content and 13% are

ne per cent (51%) (important and

extremely important) will consider high milk content in

their purchasing decisions whilst only 29% (extremely not

important and not important) will not consider high

powdered milk content in their decision and 20% are

neutral. Forty-three percent(43%) (important and

extremely important) of consumers are in favour of the

gari content and will importantly consider that in their

purchasing decision, whilst 34% (extremely not important

and not important) are not in favour of th

content and 23% are neutral. Therefore it can be said that,

consumers prefer high level of groundnut, powered milk

and gari content in the gari mix product. Meaning

consumers will be willing to buy the product if these

attributes are met.

Table 2: Consumers preference characteristics for Gari mix looking at the various attributes

Sugar Content Roasted

Groundnut

Content

Powdered milk

Content

% Frequency % Frequency %

21 29 29 34 9

9 5 5 16 20

59 51 51 32 20

8 13 13 17 37

3 2 2 1 14

Constraints in the Gari Mix Supply Chain

Constraints that had a mean score of above 3 (mid-point

point Likert scale) in table 3 below were considered

. This implies that lack of access to credit,

of advertisement and fixed costs and high costs

of raw materials were considered to be the most binding

constraints to the production of Gari Mix. The limited

access to finance makes it difficult for producers to

acquire the right technology needed for efficient

production and packaging. Analysis of these constraints

using Kendall’s W test showed 77.8% signifying that there

is 77.8% level of agreement among the three producers

identified as far as the importance of these constraints are

dings are consistent with Aryeetey

(1996) and Dapaah and Konadu (2002) who both found

limited access to finance as a major constraints to small

Table 3: Constraints to the Production ofGari Mix

Mean

Rank

4.33

High advertisement cost and high fixed 4.00

3.67

High energy cost and power problems 1.67

1.33

(Kendall’s W= 0.778, df= 4, Asymp. Sig. = 0.053)

and medium scale enterprises in Ghana as

findings of Martey et al., (2013) who found high prices of

inputs as limited the performance of small firms in Ghana.

Other identified constraints include high energy cost,

power problems and high cost of transportation, although

these problems were not deemed binding by the producers

of Gari Mix.

4.4.2. Marketing ConstraintsOn the part of the marketers of Gari Mix, low demand

for the product and high cost of the product were

considered to be the most binding of the all the analyzed

constraints. The fact that low demand is the most binding

constraint corroborates the premise of this study. Also,

price instability and unavailability of the product (when

needed) to some extent were considered to be important

limiting factors, although the mean score is below average.

Kendall’s W test showed 71.7% signifying that there is

71.7% level of agreement among the thirty marketers

identified in the supply.

Table 4: Constraints to the Marketing of

Constraints

Low demand

High cost of the product

Price instability

Unavailability of products

(Kendall’s W= 0.717, df= 4, Asymp. Sig. = 0.000)

International Journal of Agriculture Innovations and Research

, ISSN (Online) 2319-1473

extremely important) will consider high milk content in

their purchasing decisions whilst only 29% (extremely not

important and not important) will not consider high

powdered milk content in their decision and 20% are

three percent(43%) (important and

extremely important) of consumers are in favour of the

gari content and will importantly consider that in their

purchasing decision, whilst 34% (extremely not important

and not important) are not in favour of the high gari

content and 23% are neutral. Therefore it can be said that,

consumers prefer high level of groundnut, powered milk

and gari content in the gari mix product. Meaning

consumers will be willing to buy the product if these

Table 2: Consumers preference characteristics for Gari mix looking at the various attributes

Gari Content

Frequency %

20 20

14 14

23 23

36 36

7 7

and medium scale enterprises in Ghana as well as the

findings of Martey et al., (2013) who found high prices of

inputs as limited the performance of small firms in Ghana.

Other identified constraints include high energy cost,

power problems and high cost of transportation, although

were not deemed binding by the producers

Marketing Constraints On the part of the marketers of Gari Mix, low demand

for the product and high cost of the product were

considered to be the most binding of the all the analyzed

constraints. The fact that low demand is the most binding

constraint corroborates the premise of this study. Also,

price instability and unavailability of the product (when

needed) to some extent were considered to be important

he mean score is below average.

Kendall’s W test showed 71.7% signifying that there is

71.7% level of agreement among the thirty marketers

Table 4: Constraints to the Marketing of Gari Mix

Mean rank

4.88

3.75

2.44

Unavailability of products 1.69

(Kendall’s W= 0.717, df= 4, Asymp. Sig. = 0.000)

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Copyright © 2013 IJAIR, All right reserved

4.5. Factors Affecting the Consumers’ Decision to PurchaseTable 5: Probit Estimates for Factors Influencing Consumers’ Decision to PurchaseGariMix

Explanatory Variables

Age

Years in School

Product Advertisement

Sugar content

Groundnut/Peanut content

Powdered milk

Sex

Accessibility

Household size

Constant

LR χ2 = 28.86; Prob>

Source: Field data (2013)

*,**,*** indicates 10%,5%,1% significant levels respectively

From table 5 above, number of years a consumer spends

in school has a significant positive effect on his/her

decision to purchase Gari Mix. Although Gari Mix is

deemed to be relatively expensive to an average consumer

(compared to the traditional/raw Gari), the more educated

is expected to know and appreciate the importance and

benefits of the added ingredients, hence the willingness to

purchase the value added product. Advertisement had a

significant positive influence on consumers’ decision to

purchase Gari Mix. Advertisement was critically important

since the product is still not widely known to majority of

Ghanaians. Thus, the more consumers are oriented through

advertisement the more they will appreciate the nutritional

value of the product and the more they will be willing to

buy the product. This is in line with Lancaster et al.

(2001), indicated that consumers are moved by advertising

activities to purchase a product. The content of sugar and

groundnut/peanut were also found to be significant at 1%

and 5% respectively and have positive correlation with the

purchasing decisions. This implies that, the higher

sugar and groundnut content the more consumers are

likely to purchase the product. This desire for high sugar is

not surprising since majority of the consumers are students

and are lesser than 30 years who are not indifferent about

high sugar content but sweets. However, it cannot be

inferred from this study the extent or limit of this desire

for sugar in the product. From the results above, it can be

inferred that the more accessible the product is to the

consumer the higher the probability of the cons

purchasing it. Similar findings have been made by Singh

et al. (1995) who studied factors influencing consumers’

decision to purchase milk and found convenient

availability as a key factor.

V. CONCLUSIONS AND RECOMMENDATIONS

The major objective for this study was to

preference, purchasing decision and various constraints

facing Gari Mix supply chain in the Kumasi Metropolis

The study found lack of access to credit, high cost of

advertisement and fixed costs and high costs

materials the main production-related constraints whilst

Copyright © 2013 IJAIR, All right reserved

53

International Journal of Agriculture Innovations and Research

Volume 2, Issue 1, ISSN (Online) 2319

4.5. Factors Affecting the Consumers’ Decision to Purchase Gari Mix Estimates for Factors Influencing Consumers’ Decision to PurchaseGariMix

Coefficients Z-Values

-0.0139 -0.26

0.2302* 1.85

1.9366* 1.72

1.3661*** 2.97

1.0475** 2.15

-0.4255 -1.12

0.6105 0.85

1.9575*** 2.62

0.1196 0.83

-1.3243 -0.37

= 28.86; Prob>χ2=0.0003; PseudoR

2=0.20; Loglikelihood=-57.097

*,**,*** indicates 10%,5%,1% significant levels respectively

From table 5 above, number of years a consumer spends

in school has a significant positive effect on his/her

decision to purchase Gari Mix. Although Gari Mix is

deemed to be relatively expensive to an average consumer

(compared to the traditional/raw Gari), the more educated

is expected to know and appreciate the importance and

hence the willingness to

Advertisement had a

significant positive influence on consumers’ decision to

Advertisement was critically important

since the product is still not widely known to majority of

naians. Thus, the more consumers are oriented through

advertisement the more they will appreciate the nutritional

value of the product and the more they will be willing to

buy the product. This is in line with Lancaster et al.

ers are moved by advertising

activities to purchase a product. The content of sugar and

groundnut/peanut were also found to be significant at 1%

and 5% respectively and have positive correlation with the

purchasing decisions. This implies that, the higher the

sugar and groundnut content the more consumers are

likely to purchase the product. This desire for high sugar is

not surprising since majority of the consumers are students

and are lesser than 30 years who are not indifferent about

ut sweets. However, it cannot be

inferred from this study the extent or limit of this desire

for sugar in the product. From the results above, it can be

inferred that the more accessible the product is to the

consumer the higher the probability of the consumer

purchasing it. Similar findings have been made by Singh

et al. (1995) who studied factors influencing consumers’

decision to purchase milk and found convenient

ECOMMENDATIONS

objective for this study was to analyse the

preference, purchasing decision and various constraints

supply chain in the Kumasi Metropolis.

The study found lack of access to credit, high cost of

advertisement and fixed costs and high costs of raw

related constraints whilst

low demand for the product, high cost of the product and

to some extent price fluctuations were the main marketing

related constraints. It was also found out from the study

that educational background of the consumer (measured

by the number of years spent in school), product

advertisement, accessibility of the product by the

consumer, sugar content and the content of

groundnut/peanut were the significantly and positively

related to the consumers’ decision to purchase Gari Mix.

However, the maximum sugar content that consumers

would prefer cannot be inferred from this study. Other

factors like the content of powdered milk which was

expected to be positively correlated to purchasing decision

had a negative effect.

In the light of the above findings, the study recommends

that further research should be conducted to ascertain the

validity of these results and establish the average

maximum level of sugar consumers would prefer in the

product. Also, based on the effect of education, it is

suggested that producers and marketers should concentrate

on meeting the demand of the student segment of the

market, satisfy them before other market segments are

considered. Also, firms should create awareness on th

relevance of consuming gari mix through effective

marketing and educational campaigns with the aim of

highlighting the nutritional and health benefits of the

product.

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International Journal of Agriculture Innovations and Research

, ISSN (Online) 2319-1473

Estimates for Factors Influencing Consumers’ Decision to PurchaseGariMix

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low demand for the product, high cost of the product and

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factors like the content of powdered milk which was

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that further research should be conducted to ascertain the

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marketing and educational campaigns with the aim of

highlighting the nutritional and health benefits of the

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AUTHOR’S PROFILE

Osei Mensah, J. is a Lecturer at the Department of Agricultural Economics, Agribusiness

and Extension of Kwame Nkrumah University of Science and

Technology (KNUST), Kumasi-Ghana.

pursuing a Ph.D. degree in Agricultural Economics at Kwame Nkrumah

University of Science and Technology, Kumasi

MSc. Degree in Management and Economics of Innovation from

Chalmers University of Technology, Gothenburg

his BSc. education in Agriculture from Kwame Nkrumah University of

Science and Technology, Kumasi-Ghana.

Aidoo, R. is a Lecturer, Department of Agricultural Economics, Agribusiness and

Extension, Kwame Nkrumah University of Science and Technology,

Kumasi-Ghana.Aidoo Holds a Ph.D., MSc and degrees in Agricultural

Economics from Kwame Nkrumah University of Science and

Technology, Kumasi-Ghana. He also had his Bachelor’s degree in

Agriculture from KNUST.

Boakye-Yiadom S. Jnr., Mensah, R., Danquah, A.

O., Amankwaa, A. A.and Biney, F. hold B.Sc. degree in Agribusiness Management from Kwame Nkrumah

University of Science and Technology, Kumasi

International Journal of Agriculture Innovations and Research

, ISSN (Online) 2319-1473

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is a Lecturer at the Department of Agricultural Economics, Agribusiness

and Extension of Kwame Nkrumah University of Science and

Ghana. Osei Mensah is currently

degree in Agricultural Economics at Kwame Nkrumah

University of Science and Technology, Kumasi-Ghana. He holds an

MSc. Degree in Management and Economics of Innovation from

Chalmers University of Technology, Gothenburg-Sweden. He also had

on in Agriculture from Kwame Nkrumah University of

Ghana.

is a Lecturer, Department of Agricultural Economics, Agribusiness and

Extension, Kwame Nkrumah University of Science and Technology,

, MSc and degrees in Agricultural

Economics from Kwame Nkrumah University of Science and

Ghana. He also had his Bachelor’s degree in

Yiadom S. Jnr., Mensah, R., Danquah, A.

Biney, F. hold B.Sc. degree in Agribusiness Management from Kwame Nkrumah

University of Science and Technology, Kumasi-Ghana.