Factors Influencing The Type Of Vehicle Purchase Decisions In Kenya : A Case Of New Motor Vehicle Buyers In Nairobi City County.

Abstract

The general objective of the study was to examine factors influencing the type of vehicle purchase decisions in Kenya’s motor vehicle industry. Descriptive research design was employed in the study. Simple random sampling techniques were employed while data collection was conducted with the help of a questionnaire. The data was analyzed using descriptive and inferential statistics with the help of the Statistical Package for Social Sciences (SPSS) version.2.0. The results were then presented in tables, charts and figures. The study revealed that there was a positive significant relationship between economic factors and purchasing decision. The study further revealed there was a positive significant relationship between psychological factors and purchasing decision. Finally the study revealed that there was a positive significant relationship between demographic factors and purchasing decision. The study concludes that psychological factors, social-cultural factors, economic factors, as well as demographic factors influence the type of vehicle purchase decision in Kenya. The study recommends that firms dealing with motor vehicle need to consider the various economic factors that influence consumer decision making such as interest rates, income as well as rising fuel prices. In this regard they need to design motor vehicle for different categories of customers in different income brackets in Kenya. There is a need to make sure that investments in quality occur in areas that will resonate with consumers.