Assessment of Beer Brand Preference in the Brewery Industry in Mekelle City, Ethiopia

Haftu Kidenmariam

Email: Haftuk.m03@gmail.com

MBA, Department of Management

Gebremicchael Tsegay

Email: g erie0919 @gmail.com

MBA, Department of Management

Adigrat University, Ethiopia

Abstract Brand preference is a measure of brand loyalty in which a consumer will choose a particular brand in the availability of many competing brands, but will accept substitutes if that brand is not available. Beer brand preference behaviors are increasing dramatically due to the factors such as price, product quality, advertising, group influence and demographic differences. The main purpose of the study was to identify the most determinant factors of beer brand preference in the brewery industry in case of Mekelle city. The study populations were all the domestic beer consumers in the city. At the first stage using purposive sampling six localities were selected out of the 33 localities of the city from high drinking areas. In the second stage, total of 395 individuals were selected conveniently. Cross sectional research design was used and a descriptive analysis was applied. The analysis result indicated that income, marital status, age and sex are the significant factors that influence brand preference. The result of Pearson Correlation indicates there is significant relationship between quality, price, advertising and group influence and brand preference. From the study it is recommended that beer marketers should consider consumers demographic characteristics in addition to quality, price, advertising, group influence and other aspects.

Keywords: brand, brand preference, demographic characteristics, beer consumers

1. IntroductionThere is an increased interest from marketers to understand how consumers do their preferences toward a specific brand. Brand preference is closely related to brand choice which can facilitate consumer decision making and activate brand purchase. Having knowledge about the pattern of consumer preferences across the population is a critical input for designing and developing different innovative marketing strategies. It also covers the heterogeneity of consumer choices leading to efficient market segmentation strategies. But, forecasting consumer’s preferences between brands is not an easy task. Most of the earliest models focused on brand attributes in preference construction (Fishbein, 1965).

According to Mohan (2013), brand preference can be defined as the conscious, subjective, and behavioral tendencies which influences consumer’s predisposition towards a brand. Understanding the brand preference of consumers’ will dictate the most suitable, successful and efficient marketing strategies. Consumer brand preference is linked with brand loyalty, which means repurchase again and again by long period of time. For consumers brands can reflect their experience and knowledge which simplifies the processing of information accumulated over time about the company and its products or brands.

Alcoholic beverage companies are playing crucial role in the country’s economic growth. They help generate revenue to the government through taxes, create employment to the locals in the product manufacturing, packaging and distribution to the retail outlets. Today the market place is not what it used to be, but it is highly changing as a result of many societal forces such as technological advances, globalization and deregulation. These main forces have been created new behaviors and challenges. Kotler(2004), argues that customers increasingly expect high quality, service and some customization to get the most out of their choice of brands. They may able to perceive fewer real product differences and show less brand loyalty. Brassington (1997), stated that customers can obtain extensive product information from the internet and other sources, permitting them to shop more intelligently. They are showing greater price sensitivity in their search for value. Manufacturers of brands are facing intense competition from the domestic and foreign brands, which is resulting in rising promotion costs and shrinking profit margins.

According to Gerry (1987), fundamental element of any product strategy is the role played by the brand. These brands are designed to enable customers to identify products or services that promise specific benefits. Thus, they are a form of shorthand in that they create a set of expectations in the minds of customers about purpose, performance, quality and price. In return this allows the strategist to build added value into products and to differentiate them from competitors. Because of this, well-known brand names such as Nike, Microsoft, Nokia, Intel, are of enormous strategic and financial value, and are in many cases the result of years of investment in advertising, positioning and distribution development(Stampel, 1984).

Brewery industry relating to beer service providers have also many factors impacted on customer’s behavior due to competitive environment (Piercy, 2006). Brand preference is known word that we may define as “ Brand preference is a measure of brand loyalty in which a consumer will choose a particular brand in the availability of competing brands, but will accept substitutes if that brand is not available . In beer service providers these brand preference behavior are increasing dramatically due to factors like price, trust, customer satisfaction, customer services, inconvenience, perceived expectations, perceived quality, service quality, brand image and price perception, politics, group influence, etc. as observed by the researchers but what are the determinant factors which contribute to brand preference was the pressing issue of this study.

According to Access capital research 2010, the alcoholic beverages companies have significantly grown in Ethiopia. There are over 8 alcoholic beverages companies in Ethiopia to date. The impact of this creates a reduction in market share, declining profitability and stiff competition. if there is incensement number of factories in the country, companies are forced to craft strategies in order to sustain or grow their market share, expand to new territories or markets, acquire new technologies, develop brand or line extensions, reduce costs and risks (Sirgy, 1997).

Alcoholic beverage companies in Ethiopia need to adopt branding strategies that ensure they reach their markets efficiently. Future managers need a systematized body of knowledge about how it works and how changing environmental factors will affect their present and future strategies (Matin, 2007). Presenting such knowledge is a challenge considering the complexity of human behavior, the highly competitive nature of the retail business and the large number of environmental factors such as weather, government regulation, supply availability, economic conditions, technological change, and the vagaries of fashion, changing consumer habits and expectations, social change and the squeeze on space (Chaston, 2004).

Companies have a responsibility to promote safe drinking practices based on heavy usage (Boulard, 2005). As the level of awareness for beer on current market increases, this could potentially lead to negative consequences for sponsorships on or off markets. Marketers are also currently battling pricing and promotional wars with competitors based on heavy product proliferation.

Brand preference behaviors of customers are increasing dramatically day by day due to the above mentioned factors and companies are facing many issues in results like customer churn, loss of market share, low profitability etc. Therefore the study was undertaken to assess the determinant factors of beer brand preference in the industry. First, the topic is under investigated in the region and the researchers feel there is huge gap in the topic under consideration as observed. According to the literatures most of the researches related to this topic, which are conducted by others in other areas focuses on the impact of marketing mixes specially price and promotion on brand preference but the main focus of this study was to assess the determinant of beer brand preference in the brewery industry by considering both demographic variables (age, gender, occupation,

income, marital status,) and other variables such as quality, price, advertising and group influence.

Objectives of the Study

The study considers the following general and specific objectives

General Objective

The general objective of the study was to identify the determinant factors of beer brand preference in the brewery industry on Mekelle city beer consumers.

Specific Objectives

In order to address the general objective of the study the researcher has developed the following specific objectives:

To examine the nature on brand Preference on beer industry. To assess the nature of demographic variables and the consumption characteristics. To identify the relationship between the demographic nature of the respondents and the

consumption habits.

2. Literature Review

Brand preference is the measure of brand loyalty in which a consumer will choose a particular brand in the presence of competing brands, but will accept substitutes if that brand is not available. Selective demand for a company’s brand rather than product, the degree to which consumer prefers one brand over another. The percentage of people who claims a particular brand is their choice; it represents which brands are preferred under the assumptions of equality of price and availability (Kapferer, 2012).

Brand preference can be typically viewed as an attitude in which the consumer has a predisposition toward one or more brand. It is comparative judgment between entities. The definition is used as a basis for distinguishing brand preference as a comparative judgment between a set of brands which leads to more favorable attitude toward one or more of the brands. Some Consumers appear to have high willingness to pay for particular brands, even when the alternatives are objectively similar. Majority of consumers typically buy a single brand of beer, cola, or margarine (Dekimpe et.al , 1997). Even though relative price vary significantly over time, and consumers often cannot distinguish their preferred brand in blind taste (Thumin , 1962). In every product category, consumers have more information, more choices and higher expectations than ever before. To move consumers from trial to preference, brands need to deliver on their value preposition, as well as dislodge someone else from the consumers existing preference set. The preference is a scale and brands move up, down and even off that scale with and without a vigilant management strategy (Amadi & Ezekiel , 2013).

Wells & Prensky (1996) Claimed that demographic characteristic provide the stimulus toward the tangible and intangible change about the consumers’ way of think, feeling, and acting. According to Fereja (2017), age ,gender, marital status, income, educational level, family size have significant relationship with beer brand preference and consumption. In contrast Nattakarn & Suteera (2009), stated that diversifications of gender and income levels have different attitudes towards beer product. But diversifications of age, occupation, and education have no different attitudes towards beer product. Wells & Prensky (1996), Stated that the background characteristic can influence attitude.

Different social class (include income, education, and occupation) result in different consumers’ attitudes toward products or services. As mentioned above, gender, age, education, personal income, and employment status influence the attitude of drinking. In addition, Thach & Olsen (2004), supported that it has made more sense to target demographic population for starting of marketing plan to know the certain requirements. Myers et al.(2008), Stated that demographics of customer should be used to segment the market. Manufacturers can predict the different consumption and launch the new different products to serve the specific market niches.

Quality and price significantly affects the buying decision of beer consumers. Price, place and external attributes are important for people who are influenced to choose their first beer by social and emotional status. Quality and brand awareness has also high effect on the choice of beer for different personality.According to Ayanwale et al. ( 2005), of all marketing weapons, advertising is renowned for its lasting impact on viewers mind and its exposure is much broader. Katke, (2007)stated that advertisements inform consumers about the benefits and existence of services and products, and to persuade consumers to buy them. Moreover, Kotler & Armstrong (2005), Claims that advertising aim at attaining target consumers to either think or react to the product or brand. As a method of achieving goals, advertisements as well as their content play a vital role in the process of commercial communication. Specifically, the advertised product and brand as well as the content of the advertisement determine greater or lesser memory retention among the consumers. Doraszelski & Sarit (2007), further stated that advertising message and content increases the tendency to like the product. Most of firms use celebrity as the source of their marketing communication because celebrity source may attract more attention to the advertisement than non-celebrity.

An average consumer belongs to one group or the other and at a reasonable extent, the group one belongs to or wishes to belong has one purchasing and consumption influence on him or her (Bearden & Etzel, 1982). Kotler & Waldermar(2011), Stated that buying behavior is not only influenced by marketers but also by peer group influence. According to Kotler & Keller (2016), social groups have a much deeper influence than business and mass media could produce alone. Considering referencing groups in persuasive attempts to market products and brands demonstrates the beliefs that reference group exposes people to behavior and life styles,

contribute to the formation of attitudes and values, influence self-concept development, and generate pressure for conformity and attitudes to group norms (Bearden & Etzel, 1982).

3. Materials and Methods

Cross sectional research design was used for this study. Cross sectional research design (also known as one-shot) is best suited to studies aimed at finding out the prevalence of a phenomenon, situation, problem, attitude or issue, by taking a cross- section of the population at one time (Zikmund & Carr, 2009). Hence, considering this, the research employed cross-sectional survey design. The researches were supposed to collect data from the respondents for one time and the study claims for one point in time act.

Total study populations were all the domestic beer users in Mekelle city. According to Fisher (2007), the size of sample depends on the size of population and the size of margin of error. The author applied the sampling technique by accepting 5% of margin of error in order to make the report more reliable. Therefore, according to Tigray statistics Agency the total population of Mekelle city was 412,938 of which 209,091 (50.63%) are males and 203,847 (49.37 %) are females (TSA 2010). According to the information from the sales persons of the brewery industry and beer marketers the main beer consumers age ranges from 18-56. So according to Tigray statistics Agency from the total population of the city, the population whose age ranges from 18-56 are 77,500 (is target study population). Then sample for study population was 395 samples with 5% margin of error. The sample size was determined using the formula presented below.

n=EPQZ

Where:n = required sample sizeZ = Precision Level (i.e. 1.96)P = Probability of negative response (0.2)Q = Study Population SizeE = Tolerable error (0.05)

Therefore , the sample¿n=EPQZ

=n=0.05∗77500∗0.21.96 =395

For the purpose of representing the population with sufficient accuracy and to infer the sample results to the population, the samples were selected using non probability sampling methods, specifically purposive and convenience sampling. At the first stage, using purposive sampling six localities were selected out of the 33 localities of the city. These six localities were from high drinking areas. Also these six localities were considered to be sufficiently large for drawing valid statistical inferences, and assumed as manageable to be surveyed with the available resources of finance and time. In the second stage, total of 395 individuals were selected conveniently from

selected localities. The data was taken on most visited bars and groceries that could support the validity of the study.

The researchers gathered primary data from respondents and secondary data from different published and unpublished materials.

The primary data was collected by distributing close ended questionnaires for 395 respondents. Standardized Questionnaire was used and it was contain three sections outlined below: 1) Socio-Economic Information 2) beer consumption information 3) determinant factors of beer brand preference.

Different statistical analyses were carried out using the SPSS statistical computer package, Version 20. The researcher used frequency tables to summarize the demographic characteristics of sample respondents in the form of frequency and percentage. The mean and standard deviation of sample respondents’ demographic variables was used. Furthermore correlation analysis was used to show the relationship between quality, price, advertising, group influence and beer brand preference.

4. Result and Discussion

A total 395 sets of questionnaires were distributed to selected respondents and only 382 questionnaires were collected back & used for analysis purpose. The response rate was 96.7%.

Descriptive analysisDemographic characteristics of respondentsFigure 4. 1: Age Group of Respondents

Source: Survey data (2019)

According to figure 4.1 results beer consumers are younger people with majority of the respondents 82(21.5%) were 25-30 years, 80(20.9%)were between 31-35 years, 55(14.4%)were between 36-40 years, 39(10.2%) were between 18-24 years,39(10.2%) were between 41-45 years, 33(8.6%) were between 46-50 years, 30(7.9%) were between 51-55 years and24(6.3%) were 56 years and above . Of the total respondents, 256(67%) were with age 40 or below. This shows that the respondents are relatively young. Age can be used to segment the market for special product

and service (Wells & Prensky, 1996).The study has similar result with a study conducted by Nattakarn Ramasut & Suteera Saranpattranon (2009), according to their study most of their respondents were young. The finding also has similarity with findings of a study conducted by tsegaye fereja (2017). On his finding mean age of a typical respondents was about 38 years.

Figure 4. 2: Sex Distribution of the Respondents

Source: Survey data (2019)

As shown in figure 4.2 above, from the total of 382 respondents, 341(89.3%) respondents were males and 41 (10.7%) were females. From this analysis it can be seen that most of the beer consumers are males. Gender is an individual factor that affects consuming beer. The findings of this study differs from the findings of the study conducted by ( Nattakarn Ramasut & Suteera Saranpattranon, 2009) from their surveyed results, the respondents were mostly females, the portions of gender were male 41.5% and female 58.5%. On the other hand the finding of study conducted by tsegaye fereja (2017) is in line with this research which shows that male respondents (82%) was higher than that of female respondents (18%.)

Figure 4. 3: Occupation of the respondents

Source: Survey data (2019)Figure 4.3 shows that the occupation of the respondents and 160 (42%) are self-employed, 91(24%) are government officers, 76(20%) are staff in private companies, 33(9%) are blue collar/factory workers, 17(4%) are unemployed, and 5(1%) are students. And we can understand the majority of the respondents are self-employed. The findings of the study contradict with the findings of Nattakarn Ramasut & Suteera Saranpattranon (2009), from their surveyed results most of the respondents’ occupation is an employee in private company.

Figure 4. 4: Personal monthly Income of respondents

Source: Survey data (2019)Based on figure 4.4 the result revealed that 112 (29.3%) of the respondents earn monthly income of 5001-8000 birr, 77(20.2%) earns monthly income of 2001-5000 birr, 66(17.9%) of the respondents earn monthly net income of 11001-15000 birr, 50(13.1%) of the respondents earned monthly net income less than 2000 birr,47(12.3%) of the respondents earn monthly income of 8001-11000, and the reaming 30(7.9%) earn net monthly income greater than 15000 birr. As shown in the same figure, the majority of the respondents earn monthly income between 5001-8000 birr. This implies that the majority of beer consumers are the middle income groups and the level of income determines the demand and consumption of beer product. Consumers are primarily segmented by personal income since it affects the customers’ confident to pay for luxury products.

Figure 4. 5: Education level of respondents

Source: Survey data (2019)Figure 4.5 shows that 110(28.8%) are first degree holders, 93 (24.3%) complete 10th, 85(22.3%) are diploma holders,55 (14.4%) are master’s degree and above,36(9.4%) are 8th complete, 3(8%) are illiterate. The study shows that the entire respondents were composed of different education levels from illiterate to master’s degree and above. From this the majority of the respondents are first degree holder followed by high school (10th completes).The findings of this study contradicts with the findings of Nattakarn Ramasut & Suteera Saranpattranon (2009), from their surveyed results, most of the respondents were masters and above followed by bachelor degree.Figure 4. 6: Marital status of Respondents

Source: Survey data (2019)

Figure 4.6 shows that 211(55.2%) of the respondents are single, 98(25.7%) of the respondents are married, 56(14.7%) are divorced and the reaming 17(4.5%) are widowed. This implies that majority of respondents were single followed by married.Beer consumers consuming habitsTable 4. 1: Beer consumption frequency of consumers

Frequency Percentevery day 38 9.9one day per week 106 27.7two days per week 66 17.3three days per week 50 13.1four days per week 53 13.9five days per week 35 9.2six days per week 23 6.0once a month 11 2.9Total 382 100.0

The above table 4.1 shows that, even though the frequency differs all the respondents consumes beer and the consuming frequency of consumers is 106(27.7%) of consumers consume one day per week, 66(17.3%) two days per week, , 53 (13.9%) consume four days per week, 50(13.1%) three days per week 38 (9.9%) of the respondents consume every day, 35(9.2%) consume five days per week, 23(6.0%) consume six days per week and 11(2.9%) consume once a month .from the result we see that majority of the respondents consumes beer one day per week.

Table 4. 2: preferred place for beer consumption

Frequency PercentHome 24 6.3Restaurant 46 12.0Pub 257 67.3night club 55 14.4Total 382 100.0

Source: Survey data (2019)

According to table 4.2 majority of the beer consumers 257(67.3%) consumes mostly at pub, 55(14.4%) consume beer mostly at nightclub, 46(12.0%) consume mostly at restaurant, and only 24(6.3%) consume mostly at home. So the result shows pub is mostly preferred area for beer consumers. The findings are consistent with the findings of Nattakarn Ramasut & Suteera Saranpattranon (2009) from their surveyed results most of beer consumers prefer consuming beer at pub.

Table 4. 3: Volume (number of beers consumed at once)

Frequency Percentless than 2 bottles 44 11.52-4 bottles 194 50.85-7 bottles 99 25.98-10 bottles 34 8.9more than 10 bottles 11 2.9Total 382 100.0

Source: Survey data (2019)

Table 4.3 shows respondents consumption rate at once and 194(50.8%) consumes 2-4 bottles, 99(25.9%) consume 5-7 bottles, 44(11.5%) consume less than 2 bottles, 11(2.9%) consumes more than 10 bottles at once. Majority of consumers consumes 2-4 bottles at one time consumption. The findings are consistent with findings of tsegaye fereja (2017).

Figure 4. 7: Beer preference of consumers

Source: survey data (2019)

The above figure 4.7 shows that 89(23.3%) prefers to consume walia, 70(18.3%) prefer to consume castel, 60(15.7%) prefer to consume dashen, 56(14.7%) prefer to consume raya, 45(11.8%) prefer to consume sent gorge, 25(6.5%) prefer to consume meta, and the remaining chose other (habesha, bedele, amber, zebider, harar, heniken etc.). The first preferred beer by respondents is walia beer brand, the second preferred is castel beer brand, the third is dashen. The findings of this are inconsistent with findings of tsegaye fereja (2017) in his finding the first preferred beer by respondents was St. George.

Table 4. 4: Quality impact on beer preference and consumption

No.Item N Mean Std. Dev

1 I prefer it because it has good test 382 4.40 .9412 I prefer it because it has low alcoholic content 382 4.34 .9933 I prefer it because it has moderate alcoholic content 382 4.28 1.0294 I prefer it because it has high alcoholic content 382 2.87 1.3685 I prefer it because it is free from hangover 382 4.04 1.2186 I Prefer it because it hat attractive the bottle design

& style382 3.39 1.433

7 I prefer it because it has attractive label 382 3.33 1.433

8 I prefer it because of colure of the liquid 382 3.36 1.440

Total 3.75 1.05 Source: survey data (2019)According to the results presented in the above Table 4.4 the mean score for consumers’ responses about quality impact on beer preference on each of the quality subscales are ranged from 2.87 to 4.40 with the standard deviation values from .941 to 1.44. The question “I prefer it because it has good test” was rated the highest mean score 4.40. This is followed by I prefer it because it has low alcoholic content (4.40 mean score), I prefer it because it has moderate alcoholic content (4.28 mean score), I prefer it because it is free from hangover (4.04mean score), I Prefer it because it hat attractive bottle design & style (3.39 mean score), and I prefer it because of colure of the liquid (3.36 mean score) respectively. The question “I prefer because it has high alcoholic content” was rated the lowest mean score 2.87. The overall rate of quality impact on brand preference shows a moderate level of impact on consumers with mean=3.75 and SD=1.05. Findings of the study are consistent with findings of Sudipta Chakraborty & A.S. Suresh (2018 ) however, Result of this study contradicts with findings of DaveRitter (2008), according to the findings of his study quality was negatively related to beer consumption behavior Therefore, as quality decreases, then beer consumption increases and vice versa.

The relationship between respondents demographics and their consumption habits and brand preference

In this part, the relationship between the demographic nature of the respondents and the consumption habits were discussed by cross tabbing different demographic variables with different consumption characteristics of the respondents. The results the following tables, from table 4.5- table 4.13 revealed that the demographic characteristics of the consumers such as age, gender, income, marital status have significant relationship with the type, volume and frequency of consumption and preference.

Table 4. 4: Age and consumption frequencyAge of respondent

How often do you drink beer? Totalevery day

one day per week

two days per week

three days per week

four days per week

five days per week

six days per week

once a month

18-24 years 7 19 7 2 2 1 0 1 3925-30 years 13 35 10 7 9 5 1 2 8231-35 years 5 17 18 15 11 8 4 2 8036-40 years 8 13 11 5 12 2 3 1 5541-45 years 2 5 8 4 5 13 2 0 3946-50 years 2 7 4 2 6 3 9 0 3351-55 years 1 3 5 10 4 1 2 4 3056 years and above

0 7 3 5 4 2 2 1 24

Total 38 106 66 50 53 35 23 11 382

Source: survey data (2019)

According to the cross tabulation result in 4.5, consumers whose age ranges from 25-40 years consumes more frequently than the age group of 41 and above. This implies when the consumer’s age becomes 41 and above the consumption frequency decreases because of different reasons like increased family responsibility, health problems, etc. According to Blackwell et al. (2006), understanding consumers’ needs in marketing analysis is related to age. For instance, group between ages 25 and 34 prefer to drink standard domestic beer, whereas 35 to 44 year old choose light beer. The findings of this study are inconsistent with findings of Midanik et al. (1994) on their finding older people drink more than younger people. The study has similar result with a study conducted by Nattakarn Ramasut & Suteera Saranpattranon (2009).

Table 4. 5: age and beer preference Cross tabulation

Which beer do you prefer most?

Age of respondent sent

gor

ge

Das

hen

W

alia

Met

a

Ray

a

Cas

tel

Other (habesha, bedele, amber, zebider, harar, heniken etc.)

Total

18-24 years 4 10 18 0 2 3 2 3925-30 years 18 12 22 4 5 15 6 8231-35 years 6 21 14 10 16 7 6 8036-40 years 3 5 13 3 16 4 11 5541-45 years 1 5 4 1 5 22 1 3946-50 years 2 2 6 6 9 6 2 3351-55 years 1 1 12 0 3 9 4 30>=56 years 10 4 0 1 0 4 5 24

Total 45 60 89 25 56 70 37 382Source: survey data (2019)

Table above 4.6 indicated that respondents age ranges from 18-40 year prefers mostly to consume walia, dashen and aged consumers prefer to consume St.George. Generally walia, castel dashen and raya are the most preferred beers by most of beer consumers. The findings of this study are inconsistent with the findings of tsegaye fereja wich was conducted in Addis Ababa (2017). His findings show that most of beer consumers prefer to consume St. George beer.

Table 4. 6: Gender and consumption frequency

Gender

How often do you drink beer

Totalonce a month

one day per week

two days per week

three days per week

four days per week

five days per week

six days per week

Every day

Male 9 79 62 48 52 33 23 35 341female 2 27 4 2 1 2 0 3 41

Total 11 106 66 50 53 35 23 38 382

Source: survey data (2019)

Tables 4.7 revealed that out of the 38 everyday drinkers, 35(92.12%) are males and 3(7.9%) females. From the 106 one day per week drinkers, 79(74.5%) are males and 27(25.5%) are females. 62(93.9%) males, 4(6.1%) females consumes two days per week, 48(96%) males, 2(4%)females consume three days per week. 52(98%)males,1(2%)female consume beer four days per week, 33(94.3%) males,2(5.7%) females consume beer five days per week, 23(100%) males,0(0%) females consume beer six days per week ,9(81.8%)males,2(18.2%) females

consume once a month. So from these results we can understand males consume beer more frequently than females. The findings are similar with Midanik et al. (1994). Table 4.7: Gender and number of beers consumed at once

genderHow much do you usually drink beer at once Total

less than 2 bottles

2-4 bottles

5-7 bottles

8-10 bottles

more than 10 bottles

male 30 169 97 34 11 341Percent 8.8 49.6 28.5 10 3.8 100%female 14 25 2 0 0 41Percent 34.1 60.98 4.88 0 0 100%Total 44 194 99 34 11 382% 11.5 50.8 25.9 8.9 2..9

Source: survey data (2019)

The table above indicated that out of the total 41 female respondents, 14(34.1%), 25(60.98%) , and 2(4.88%) females consumes less than two bottles, 2-4 bottles, and 5-7 bottles at once respectively and no females consume more than 8 bottles at once. Regarding the number of beers consumed by males at once, out of the 341 male respondents 30(8.8%), 169(49.6%), 97(28.5%), 34(10%) and 11(3.4%) males consume less than two bottles, 2-4 bottles, 5-7 bottles, 8-10 bottles, and more than 10 bottles at once respectively. This result indicated that males consume more bottles of beer at once than females. The findings of this study are consistent with the findings of Nattakarn & Suteera (2009) and Tsegaye Fereja (2017).

Table 4. 8: Gender and type of beer preferred

gender Which beer do you prefer most Totalsent

gorgedashen walia meta raya castle other ( habesha, bedele, amber,

zebider, harar, heniken etc.)male 42 59 62 23 51 67 37 341female 3 1 27 2 5 3 0 41

Total 45 60 89 25 56 70 37 382

Source: survey data (2019)

The above table 4.9 shows that majority of females prefer to consume walia and majority of males prefer to consume castle. Findings of the study are inconsistent with the findings of tsegaye fereja (2017)

Table 4.10 income and number of bottles consumed at once

Personal monthly Income (Net)

How much do you usually drink beer at once Totalless than 2

bottles2-4

bottles5-7

bottles8-10

bottlesmore than 10 bottles

less than 2000 birr 22 25 3 0 0 502001-5000 birr 10 49 11 5 2 775001-8000 birr 4 63 36 5 4 1128001-11000 birr 2 16 18 8 3 4711001-15000 birr 6 23 25 11 1 66above 15000 birr 0 18 6 5 1 30

Total 44 194 99 34 11 382

Source: survey data (2019)

The above table 4.10 revealed that majority of respondents with less than 2000 consumes less than 2 and 2-4 bottles at once and no respondents with income of less than 2000 consumes more than 8 bottles at once, but respondents with income of 2001-15000 consumes 2 up to more than 10 bottles at once. Customers at different income levels tend to have quite different behaviors, attitudes, and lifestyles this factor influences the willingness to pay.

Table 4. 11: marital status and volume (number of beers) consumed at once

marital status How much do you usually drink beer at once Totalless than 2

bottles2-4

bottles5-7

bottles8-10

bottlesmore than 10 bottles

single 36 121 39 12 3 211married 8 53 35 2 0 98divorced 0 15 17 20 4 56widowed 0 5 8 0 4 17

Total 44 194 99 34 11 382

Source: survey data (2019)

Table 4.11 shows that majority of single respondents 121(57.3%) drinks 2-4 bottles at once,39(18.5%)drinks5-7bottles at once,36(17.1%) drinks less than 2 bottles at once,12(5.7%) drinks 8-10 bottles at once,3(1.4%) drinks more than 10 bottles at once. Of the married 8(8.2%)drinks less than 2 bottles at once,53(54.1%)drinks 2-4 bottles at once, 35(35.7%)drinks 5-7 bottles at once,2(2%)drinks 8-10bottles at once and no married respondents consume more than 10 bottles at once. Divorced and widowed respondents drink from 2up to more than 10 bottles at once. So this implies single, divorced and widowed respondents consume more bottles at once than married respondents. This is because married individuals are more responsible to spend their income in a responsible way. Findings are consistent with (tsegaye fereja, 2017).

Correlation analysis

H1, H2, H3, H4 the relationship between quality, price, advertising, group influence and beer brand preference

H1: There is no significant relationship between quality and beer brand preference

H2: There is no significant relationship between price and beer brand preference

H3: There is no significant relationship between advertising and beer brand preference

H4: There is no significant relationship between group influence and beer brand preference

In this study, a Pearson correlation test (r, correlation coefficients) was applied to investigate the strength and direction of the relationships and the significance level in the results obtained. Thus, to test the hypotheses (H1, H2, H3, H4), the result of the correlation was analyzed to establish whether the correlation coefficient is significant. Table 4.12 below illustrates the inter correlation between quality, price, advertising, group influence and brand preference. Among the four variables, group influence has the strongest positive correlation with brand preference (r=.441, P<0.01).

Table 4. 9: Correlation AnalysisBeer Brand preference

quality impact

price impact Advertising impact

Group influence

Beer Brand preference

Pearson Correlation 1 .

Sig. (2-tailed)

N 382

quality impactPearson Correlation .381** 1

Sig. (2-tailed) .000N 382 382

price impactPearson Correlation .430** .270** 1

Sig. (2-tailed) .000 .000N 382 382 382

Advertising impact

Pearson Correlation .348** .392** .405** 1

Sig. (2-tailed) .000 .000 .000N 382 382 382 382

Group influence

Pearson Correlation .441** .094 .137** .142** 1

Sig. (2-tailed) .000 .067 .007 .005

N 382 382 382 382 382**. Correlation is significant at the 0.01 level (2-tailed).

The Pearson correlation coefficient in Table 4.12 above indicates that there is significant and positive relation between group influence and brand preference (r=.441, P<0.01), price impact and brand preference (r=.43, P<0.01), quality and brand preference (r=.3.81, P<0.01), advertising and brand preference (r=.348, P<0.01) and the result implies quality, price, advertising, group influence and brand preference have great relationship. So H1, H2, H3, H4 are Rejected.

Conclusions This research has tried to Assess Beer Brand Preference in the Brewery Industry In the Case of Mekelle City beer consumers. The following conclusions are given based on the objectives and findings.

The result of the research indicated that the majority beer consumers are self employed younger males

The result also shows that majority of the respondents consumes beer one day per week and pub is mostly preferred area for beer consumers, and majority of consumers consumes 2-4 bottles at one time consumption. The respondents further indicated that the first preferred beer by respondents is walia beer which is followed by castel beer and dashen beer respectively.

Regarding the responses about quality impact on beer preference on each of the quality subscales consumers prefer beers that have good test, low and moderate alcoholic content, beers that are free from hangover, beers that have attractive bottle design, style and label and beers that have good color.

The result of the correlation was analyzed to establish whether the correlation coefficient is significant or not. Result of the study illustrates the inter correlation between quality, price, advertising, group influence and brand preference. Among these four variables, group influence has the strongest positive correlation with brand preference (r=.441, P<0.01).The Pearson correlation coefficient indicates that there was significant and positive relation between group influence and brand preference (r=.441, P<0.01), price impact and brand preference (r=.43, P<0.01), quality and brand preference (r=.3.81, P<0.01), advertising and brand preference (r=.348, P<0.01) and the result implies quality, price, advertising, group influence and brand preference have great relationship with brand preference. RecommendationsThe following recommendations are forwarded based on the findings discussed above.

Beer companies must stay close to the customers and know demographic characteristics of beer consumers.

Beer factories should conduct a research to know what type of beer test, design of bottle, label, beer color and bottle design will be preferred by customers.

Beer factories should produce a beer that has preferable level of alcohol and they should assure that their beer is free of hangover

Quality, price, advertising and group influence have significant relationship with beer preference. Therefore, the brewery industries should focus on developing best strategies which can help them to achieve competitive advantage, To achieve this, focused group discussion should be used to see real customers’ problems, managers should meet with customers to find out their concerns, and customer contact must be encouraged so that signals are sent to both the organization and the customers that the latter is valued.

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