Factors Influencing Tile Consumers' Willingness to Pay for Breweries Products in Moshi Municipality, Tanzania

Abstract

This study sought to assess factors influencing consumers' willingness to Pay for Brewery Products in Moshi Municipality, Tanzania. A cross-sectional survey of 80 respondents both male and female was conducted. Multistage sampling procedure was adopted in selection. Data were collected using questionnaires on survey, and breweries' reports were used for secondary data review. Data were analyzed through, prior and after analysis, descriptive statistics cross tabulation analysis as well as regression models. The findings show that Price Change adversely affects willingness to, since a change in price from high to low resulted into an increase in sales revenues and market share. The study concludes that customers are more willing to pay for a beer in bars rather than hotels or restaurants, however not quite specific. Consumers' Willingness to Pay for SBL and TBL products were 71% and 82% respectively. The socio-economic factors that influenced willingness to pay included sex, age, household size, education level, income as well as marital status. The results of the regression analysis were tested at p<0.05. The recommendations include, beer companies ought to mark prices of their products as the most outstanding factor that influences consumers' willingness to pay for products. Companies pricing strategies should adhere to economic conditions as well as competitive activities in the area. Consumers' moderate drinking is highly recommended. Finally, the government should ensure a fair and profitable playground for competing companies of the same product using the respective ministry and regulatory authorities. The government ought to ensure that companies' dues are paid, and advanced technologies are used in the course of production. Most importantly the environment is protected creating a better world. Policy makers should ensure a fair play ground for investors.