Relationship between consumer choices and marketing decisions:

Abstract

This study aimed at assessing the effect of consumer choices on marketing decisions of fresh tomato retailers in Soroti City. It was observed that tomato retailers in Soroti city register low gross margins and this could be attributed to insufficient use of consumer choices in their marketing decisions. The study objectives were; to characterize marketing decisions of tomato retailers in the study area; to determine the relationship between consumer preference and marketing decisions of tomato retailers; and to determine the relationship between of consumer prices and marketing decisions of tomato retailers in Soroti city. A cross sectional survey was conducted on 100 fresh tomato retailers using semi-structured questionnaires of which qualitative and quantitative data was collected. The study area was purposively selected since it is a central business city for Teso-sub region of which tomato marketing is a key economic activity. The study was conducted in all daily markets in the city center and the surrounding suburbs. The study sample was determined using proportions for each market and simple random sampling technique was used to select the retailers that were interviewed. The study findings indicate that tomato retailing in Soroti city is characterized by; most retailers selling hybrid tomato varieties, obovoid in shape, dark red in color, firm in consistency, and inorganically produced; in addition, tomato safety from the fugaris of weather was key in determining where stall was located; the selling price was determined using cost-plus strategy; and finally, consumers were motivated to buy tomatoes by giving bonuses and customer care services. The study further found that, the relationship between consumer utility and marketing decisions was moderate and positive (r=0.555); there is a significant relationship between consumer utility and marketing decision (p= 0.000) at 5%. This indicates that, an increase in consumer utility results to a moderate increase in marketing decisions by tomato retailers. Finally, the study revealed that, the relationship between consumer prices and marketing decisions is negative and weak (r= -0.104); the p-value of 0.305 indicates that there is a no significant relationship between consumer prices and marketing decisions and this suggests that an increase in consumer prices leads to a marginal decrease in marketing decisions of tomato retailers. In conclusion, tomato retailers use some aspects of the 4ps of marketing in making marketing decisions; consumer preferences have a positive relationship on marketing decisions and consumer prices have a negative relationship on marketing decisions of tomato retailers.