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ABSTRACT

Marketing concept starts with consumers’ needs and their behavior in meeting their needs. In order to

satisfy their needs consumers make many buying decisions every day. And marketers need to study

these consumer purchase decisions in order to find answers to questions about what, why, where and

how much they buy and align their marketing program to that effect.

For making a successful marketing program it is necessary for marketers to study the consumer

behavior so that they would know the psychology of consumers. Consumer psychology has various

components such as perceptions, knowledge, attitude, intention, motive and the like. This research

paper is done particularly on the two components of consumer psychology namely perception and

attitude.

The purpose of this study is to survey the perception and attitude of Ethiopian consumers towards St.

George Beer. St. George Beer is the pioneer and still the dominant beer brand in Ethiopia. And in

recent days the Brand’s market share has significantly increased and it is becoming a synonym of beer

in some areas especially in Addis Ababa. This wide acceptance and dominance in Ethiopian’s beer

industry, indirectly signifies a positive consumer attitude towards the brand. But the actual attitude of

beer consumers towards St. George beer, the reason behind the attitude and its implication on the

behavior or consumption of the beer is the rationale of this research.

The study based itself on the information collected from primary source by taking a sample of 80 beer

consumers from bars and restaurants around Mexico and Stadium areas in Addis Ababa and

distributing self administered questionnaires. Secondary sources such as books, journals and research

papers written on similar topic are also reviewed. Appropriate statistical analysis such as frequency,

ANOVA and correlation analysis are used according to respective objective and descriptors.

Based on the findings of this research, it can be concluded that most beer consumers have positive

attitude towards the beer St. George Beer and this is resulted due to its product quality and

promotional activities. The St. George Beer’s taste, aroma, foam and thirst quenching attributes are

found to be very satisfactory. And the advertisements are also different from the other competing beer

brands in a way that they are creative, seasonal, cultural (Ethiopian) and entertaining. With regard to

other promotional mix, the public relation efforts such as participating and sponsoring sports and

supporting other programs and festivals are positively perceived by the respondents which in turn

contribute to the increase in sales volume and market share of the Brand.

One important point pointed out is the intention to switch, even though most of the respondents like

and consume St. Gorge Beer, still 50% of them want to switch to other brand only half of them are

loyal, and this is an assignment for St. Gorge Beer because it requires it more work not only to attract

but also maintain its consumers. In other words it should catch the hearts of its consumers and create

loyalty.

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OPERATIONAL DEFINITIONS

1. Attitude: a learned predisposition to behave in a consistently favorable or unfavorable

way with respect to a given product, product category, brand, service,

people, advertisement, internet site, price, medium or retailer.

2. Beer: alcoholic beverage made from cereal grains, usually barley, but also corn,

rice, wheat, and oats.

3. Beer foam: a mass of bubbles of gas or air on the surface of the beer.

4. Consumer: is one who buys good or uses a service.

5. Hangover: illness after drinking with a set symptoms including headache, nausea, thirst,

and sickness that result from drinking too much alcohol

6. Marketing stimuli: any communications or physical stimuli that are designed to influence

consumers.

7. Perception: process of receiving, organizing and assigning meaning to information or

stimuli detected by our five senses.

8. Stimulus: any physical, visual or verbal communication that can influence an

individual's response.

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CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

In order to stay profitable and competitive in today’s market, satisfying customers is vital. So as to

meet this goal, understanding the customers’ behaviors should be given a top priority.

These days, organizations are expected to perform more than producing products and delivering

services. Before producing products or delivering services, there is a need to do customer research.

The customer research enables to answer questions like what the market buys, why the market

buys, who participate in the buying, how the market buys, when the market buys, where the market

buys and the like. But learning about the whys of consumer buying behavior is not so easy the

answers are often locked deep within the consumer’s head.

Marketing is the art of creating, attracting and keeping profitable customers, in order to convert

occasional purchasers into brand loyalists; habits must be reinforced by appealing to the factors

that shape consumer behaviors which include the cultural, social, personal and psychological

characteristics; because they hold the key to success or failure of any product.

Among the aforementioned factors which influence consumer purchases, this research focuses on the

psychological factors particularly attitude and perception. Consumer’s attitude towards a product

according to Kotler and Armstrong (2006) is being shaped and influenced by psychological factors

such as motivation, perception, learning, personality, attitude and belief.

Perception is the process by which an individual selects, organizes and interprets stimuli into a

meaningful and coherent picture of the world. Two individuals may be exposed to the same stimuli

under the same apparent conditions, but how each person recognizes, selects, organizes and

interprets these stimuli is a highly individual process based on each person’s own needs, values and

expectations. (Schiffman and Kanuk: 2000)

Attitude is a learned predisposition to behave in a consistently favorable or unfavorable way with

respect to a given object (specific consumption or marketing related concepts, such as product,

product category, brand, service, possessions, product use, causes or issues, people, advertisement,

internet site, price, medium or retailer). Attitudes have motivational quality that propel a consumer

toward a particular behavior or repel the consumer away from a particular behavior. (ibid)

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This research paper analyzes the consumers’ perception and attitude taking the case of St.

George Beer.

Beer is an alcoholic beverage made using a process called fermentation, in which microscopic

fungi called yeast consume sugars in the grain, converting them to alcohol and carbon dioxide gas.

This chemical process typically produces beer with an alcohol content of 2 to 6 percent. Over 70

styles of beer are available today. Each style derives its unique characteristics from its ingredients

and subtle differences in its brewing process. (Encarta: 2008)

Beer is believed to be over 10,000 years old. Although no one knows its exact origins, some

agricultural historians believe that the first beer may have been produced accidentally when a stash

of grain was soaked by rain and then warmed by the sun. If this mixture were spontaneously

fermented by wild, airborne yeast, which thrives in just these warm, moist conditions beer would

have been produced.

Early beer makers used a very simplistic brewing process and fermented beer for only a brief

period, one to two days at most. By around 1100 AD, brewing techniques had become more

sophisticated. In Europe brewers banded together to form guilds societies that protected their trade

while setting standards for beer making. Hops were introduced to the brewing process around

1300. While many European brewers embraced the use of hops in making beer, English beer

makers refused to add the bitter tasting plant to their brews until the 16 th century. The first beer

brewed with hops in England was bitter ale.

For centuries brewers heated grain over open fires, resulting in dark, smoky malt that produced

equally dark beer. With the advent of the industrial revolution in the mid-1800s, brewers invented a

way to dry malt in large rotating heated drums that left the grain light in color and produced a pale,

golden beer. The next major technological development occurred in the late 19th century with the

invention of compressed gas refrigeration. Brewers no longer had to schedule the various heating

and cooling phases of the brewing process according to seasonal outdoor temperatures.

Refrigeration also meant that beer could be shipped greater distances without spoiling. This

innovation paved the way for the proliferation of today’s large brand beers.

With technological developments, some breweries turned to mass production, employing large-

scale, and state-of-the-art brewing equipment to produce large quantities of beer. (ibid)

In Ethiopia, the introduction of capitalist economy system brings enormous investment opportunity

to different economic sector of the economy in the form of private and foreign direct investment.

The brewery factory is not an exception. There were three beer factory owned by the state during

the Derge regime; St. George Brewery, Harare Brewery and Meta Abo Brewery. But currently the

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Ethiopia beer industry is comprised of five major breweries which include three state owned

enterprises, foreign investor and local private producers. These are BGI Ethiopia, Dashen, Harar,

Meta Abo and Bedele. The other brewery; Habesha brewery, Raya Brewery and Kangaroo

Brewery are underway to join the industry soon.

Beer consumption in developing countries is often seen as one revealing (if crude) proxy for

gauging the strength of economic activity. Economic growth, rising incomes and a growing share

of disposable income all tend to drive the consumption of beer in a country. (Access Capital: 2010)

According to News Business Ethiopia report (2010), even though beer consumption in Ethiopia has

grown fast over the past few years, Ethiopian still consume less as compared to the neighboring

counties. With estimated consumption of 3.1 million hectoliters and a population of nearly 80

million, annual beer consumption per head is only around 4 liters, which is a third of that in

neighboring countries and roughly one twentieth of the consumption levels seen in South Africa.

In addition to economic factors, marketing activities like promotion, product innovation and

consumer preference has contributed for the growth of market share of major breweries.

Consumers have got lots of brand to choose. Report from the sector revealed that the market is

currently dominated by BGI Ethiopia Castel Group, which is owned by French investor and

produces St. George (Giorgis) brand with a share around 50 percent nation-wide and even higher in

Addis Ababa. Its current production level is around 1.5 million hectoliters, having two large plants

in Addis Ababa and Kombolcha. (Access Capital, 2010) It goes without saying that consumer has

developed positive attitude towards the brand, which is reflected by the company dominancy of the

market over the last ten years.

Ethiopia's oldest brewery Saint George, founded in 1922 is located in central Addis Ababa. The

brewery was set up with modest premises to produce the country’s first bottled beer. It is situated

near the Mexico Square, Addis Ababa, and occupies an area of 20,000 Sq. meters of land.

The founder of St. George Brewery, according to some sources, is Mussie Dawit Hale who is a

Belgian and later he sold it to German company. When the brewery began operation, the

machineries were manually operated and not more than 200 bottles (half liter size) were produced

daily. Transporting of the raw material to the silo, fermenting of the malt, boiling the barely,

filtering the beer, filling the materials, etc. were done manually. Basic raw materials like barely

and hops were imported from Europe. The management staff of the factory and the leading

technicians who controlled the Brewery’s activities were all foreigners.

In those, days liquor houses were not many and people had no choice apart from drinking the

traditional ‘tella’ and ‘tejj’. At that time, going bars, in the manner that people are doing now, was

not practiced by most people. 5

Some unauthentic sources say that the Brewery was closed during the five years of Italian

occupation. The factory resumed its work after the occupation and according to some reports there

arose problems of ownership. The exact nature of the argument stood unclear. Eventually,

however, an Ethiopian company took over the Brewery in 1952/53. This company was said to have

been organized as a share holding entity, the larger share of which was owned by Emperor Haile

Sellassie.

Generally, St George Brewery could be said as having scored good results in the 1940s and 1950s.

Towards the end of the 1950s the annual production of the Brewery had reached 50,000

Hectoliters.

In the years of the 1970s the Brewery was in good shape in terms of its machineries, physical

buildings, vehicles, marketing network, etc. It even had a plan to open a new plant for the

production of soft drinks. In 1974 the Brewery was nationalized. Even though this created some

obstacles the improvements particularly with some manpower development and betterment in

workers management, it also started to produce draught beer that enjoyed popularity and big sales.

On the other hand the Brewery was lacking the finance it needed to introduce new technologies

that came in the 1970s. The name of the Brewery was also changed as “Pilsner Brewery” and later

as “Addis Ababa Brewery”.

Most of all, the workers showed great commitment and dedication to keep the Brewery and its

product popular. The role played by the Brewery was significant in supporting and promoting other

social activities including St. George Sport club.

St. George Brewery is once again privatized. The factory is now owned by BGI, an internationally

acclaimed Brewing Company that operates in many countries. It has excellent reputation in

producing quality beer and brought St. George to the same standard.

Today, St. George is the oldest beer in Ethiopia and is certainly also the youngest with fresh

dynamism. (Adey Public Relations Consultancy for BGI Ethiopia: 2010)

Ever since it became privatized, and along with the opening of a sister company in Kombolcha, St.

George Brewery bas played an important role to improve the supply of the beer and promote

modern marketing in the country.

In this connection, St. George Brewery has done a lot with regards to marketing its products. These

includes: the improvement of the type, quality and quantity of the product; advertising the product

by erecting artistic notice boards in towns, at main public squares, sight-catching places, major

outlets and inlets, public service stations and on vehicles; contributing to popular events by means

of sponsoring various exhibitions, music festivals, public gatherings, religious events, research 6

forums, sport events, mass media programs; using modern distribution network to sufficiently

supply its products to all parts of the country at an affordable price; providing training in the

country and abroad, to production, technical and marketing personnel and thus importing their

capability and capacity; supporting retailers by providing refrigerators , Co2 gas for draught beer,

signboards and maintenance and cleaning services without charge.

In addition, the Company carries out social responsibilities with regard to health, sport, art, urban

sanitation, road construction and supporting war victims. (ibid)

These improvements in the Company’s production as well as marketing activities are paying off,

since the Company’s market share has grown significantly in the past few years.

According to the Current market share of Ethiopian Breweries, BGI Ethiopia has 48%, Meta 16 %,

Dashen 13%, Harar 11% and Bedele 10 % of the national market share of beer. BGI claims almost

half of the Country’s market share and has a particularly dominant share (of nearly two thirds) in

Addis Ababa. (Access Capital: 2010)

Until 2004/2005, Meta was the leading brewery having the lion’s share of the market, followed by

Dashen and BGI Ethiopia respectively. However due to promotional activities, production

innovations and consumer preferences; market shares have shifted markedly in the recent years.

The point that the St. George has gained wide acceptance and preference become the leading brand

in the Ethiopian beer market, induced the researchers to survey on the underlying factors that

resulted in this positive attitude among the Ethiopian beer consumers.

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1.2 Statement of the problem

In today’s highly competitive, dynamic and challenging business environment, the level of

consumer product acceptance and preference are critical to survival of business. Each day

consumers are becoming more rational and speculative in their spending, willing to spend their

hard earned money on product they believe will give them value and maximize their utility. This

dynamic nature of consumers’ attitudes towards a product or a brand is clearly exhibited in

Ethiopian beer industry for the past ten years. According to Access Capital research (2010) until

2004/2005, Meta was the leading brewery having the lion’s share of the beer market in Ethiopia,

followed by Dashen and BGI Ethiopia respectively. However, market shares have shifted markedly

in recent years, in which BGI claims almost half of the country’s market share and has a

particularly dominant share (of nearly two-thirds) in Addis Ababa.

And this consumers’ attitude and preference shift towards St. George beer which is the dominate

product of BGI Ethiopia in the past few years, is the rationale for undertaking this research. The

study reveals the underlying factors which helped this brand to overtake its competitors’ market

share and win the mind and hearts of the majority of the Ethiopian beer consumers.

1.3. Objectives

1.3.1 General objectives

Broadly, this study plans to examine current consumers’ attitude and perception towards St.

George beer. And, hence, draw a significant and feasible suggestion based on the findings.

1.3.2 Specific objectives

To identify the reasons for consumers wide acceptance and preference of St. George beer

against other competing brands in the past few years

To identify the specific marketing factors that contributed for in the formation, change

and maintenance of these acceptance and preference of St. George beer

To point out the opportunities and challenges of St. George beer with regard to the

psychology of its consumers

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1.4 Research Questions

The research intends to give answers to the following questions:

Why consumers choose St. George beer over the other brands?

Does the quality and taste of St. George beer contribute for the building positive attitude?

Do the Company’s promotional activities contribute for the building positive attitude?

What are the other factors that helped the brand to get wide acceptance in Ethiopian beer

market?

1.5 Scope of the Study

This research covers the issue of consumer perception and attitude taking the case of St. George

beer in Addis Ababa with particular emphasis on consumer around Mexico and Stadium areas.

1.6 Significance of the Study

The research provides a clear picture of the consumers’ attitudes towards St. George beer, factors

that contributed in the formation of these attitudes, the opportunities and challenges to the brand

with respect to understanding, improving and preserving its image. And the study apparently

presents how St. George beer could improve or maintain its consumer’s attitudes and get the

maximum out of it.

The study enhanced the knowledge of the researchers with regard to the concept of consumer

perception and attitude, and their importance for the success of a business.

The research also benefits new companies who are under formation to join the beer industry by

providing information pertinent to attitude of beer consumers.

Furthermore, the research lays a ground for further studies on similar topics.

1.7 Limitation of the Study

The major constraint in the course of the study was time which prevented the researchers from

undertaking in depth study and analysis on the topic as planned.

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1.8 Organization of the Study

This paper has five chapters, in which the first is the introduction part containing background of the

study, the statement of the problem, research questions, objective, significance, scope and

limitation, budget, research schedule and organization of the study. The second chapter is all about

reviewing literatures written on consumer perception and attitude. In chapter three the research

methodology used to gather, analyze, interpret and present the data are discussed. In chapter four,

the data gathered and analyzed on the perception and attitude of consumers of St. George beer is

presented. And finally, conclusion and recommendations are given based on the findings of the

research. References used for the study are listed at the end of the research report. In addition

supplementary documents are attached to the report as appendices.

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CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

The theoretical framework of this study focuses on customer attitude and perception with regard to

the meanings of core concepts, their importance for the success of a business and the challenges for

marketers to set marketing plans and programs inline with these concepts.

First, this chapter discusses the concepts of attitude and perception. And in the subsequent section

the researches previously done on similar topics are reviewed.

2.2 Perception and Attitude

Perception

One of the key elements of a successful marketing strategy is the development of product and

promotional stimuli that consumers will perceive as relevant to their needs. (Henry Assael: 2001)

Perception is the process of sensing, selecting and interpreting the stimuli of the external world into

an internal (mental) world. In other word, perception is the process by which the brain attempts to

describe objects and events in the external world based on sensory inputs and knowledge.

(Schiffman and Kanuk: 2000)

Kotler (2005) states that the process of perception formation passes through four steps: in the first

step, consumer receives information from outside; in the second step, he/she selects the

information; in the third step information is organized and in the last step the information is

interpret. Perception is regarded as the keystone of building knowledge, not just about products but

about everything else in the world. People have their own perception of products and everything

else. The way people select and interpret products will be very different from the way someone

else selects and interprets them.

Perception plays a major role in the stage of buying decision making where alternatives are

identified. What we perceive depends on the object and our experiences. Every day we come in

contact with an enormous number of marketing stimuli. The product and its components (package,

contents, and physical properties) are primary (intrinsic) stimuli. Communications designed to

influence consumer behavior are secondary (extrinsic) stimuli that represent the product either

through words, pictures and symbolism or through other stimuli associated with the product (price,

store in which purchased, effect of salesperson). (Henry Assael: 2001)

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Two key factors determine which stimuli consumers will perceive and how they will interpret

them: the characteristics of stimulus and the consumers’ ability to perceive the stimulus. These two

influences interact in determining consumer perceptions. Stimulus characteristics affecting

perception can be divided into sensory elements and structural elements. Both have implications

for product development and advertising. Sensory elements are composed of color, smell, taste,

sound and feel. The structural elements applied primarily to print advertising, such as size,

position, contrast, novelty of the ad.

Consumer characteristics affecting perception are ability to discriminate between stimuli and

propensity to generalize from one stimulus to another.

One of the basic questions regarding the effect of marketing stimuli on perceptions is whether

consumers can discriminate among differences in stimuli. Do consumers perceive differences

between brands in taste, feel, price and shape of the package?

The ability to discriminate among stimuli is learned. Generally, frequent users of a product are

better able to notice small differences in product characteristics between brands. However, in many

cases, the consumers’ ability to discriminate sensory characteristics such as taste and feel is small.

As a result marketers rely on advertising to convey brand differences that physical characteristics

alone would not impart. They attempt to create a brand image that will convince consumers that

one brand is better than another.

Consumers develop not only a capacity to discriminate between stimuli but also capacity to

generalize from one similar stimulus to another. The process of stimulus generalization occurs

when two stimuli are seen as similar (contiguous), and the effects of one, therefore, can be

substituted for the effect of another.

Brand loyalty is a form of stimulus generalization. The consumer assumes that positive past

experiences with the brand will be repeated. Therefore, a consumer does not need to make a

separate judgment with each purchase.

Perceptual categorization is also a form of stimulus generalization. As new products are

introduced, consumers generalize from past experience to categorize them. (ibid)

When the individual constructs a perception, he or she assembles information to map what is happening

in the outside world. This mapping will be affected by the following factors (Blythe: 2008):

Subjectivity: This is the existing world view within the individual, and it is unique to that

individual. For example, the information is subjective in that the consumer will base

decisions on the selected information. Each of us selects differently from environment and

each of us has differing views.12

Categorization: This is the “pigeonholing” of information, and the prejudging of events and

products.

Selectivity: This is the degree to which the brain is selecting from the environment. It is a

function of how much is going on around the individual, and also of how selective

(concentrated) the individual is on the current task. It will depend on the individual’s interest

and motivation regarding the subject area.

Expectations: It leads individuals to interpret information in a specific way later.

Past experience: Sometimes sights, smells or sounds from our past will trigger appropriate

response. If the consumer has had bad experiences of purchasing products, this might lead to

a general perception that these products are of poor quality.

Attitude

After consumers perceive and process information, they develop beliefs about and preferences for the

brands based on the information they have processed. These beliefs and preferences define consumer

attitudes toward a brand. In turn, their attitudes toward a brand often directly influence whether they

will buy it or not. (Henry Assael: 2001)

Attitudes are not directly observable but must be inferred from what people say or what they do.

Consistency of purchases, recommendations to others, top rankings, beliefs, evaluations and

intentions are related to attitudes. (Schiffman and Kanuk: 2000)

Attitudes may be positive, negative, or neutral (valence); may vary in intensity (extremity); can be

more or less resistant to change; and may be believed with differing levels of confidence or

conviction. (Keith Walley et al.: 2009)

According to Schiffman and Kanuk (2000), attitude consists of three major components: a cognitive

component (belief), an affective component (feelings or emotions) and a conation component

(behavioral intention).

The cognitive component is related to knowledge and perceptions that are acquired by a

combination of direct experience with the attitude object and related information from various

sources. This knowledge and resulting perceptions commonly take the form of beliefs, i.e. the

consumer believes that the attitude object possesses various attributes and that specific will lead to

specific outcomes. And affective component of an attitude constitute the emotions and feeling of a

consumer about a product or brand. And this component indicates the extent to which the

individual rates the attitude object as ‘favorable’ or ‘unfavorable’, ‘good’ or ‘bad’. The conation

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component is concerned with likelihood or tendency that an individual will undertake a specific

action or behave in a particular way with regard to the attitude object.

Figure 1: Three components of attitude

Source: Henry Assael (2001)

The formation of consumer attitudes is strongly influenced by personal experience, the influence of

family and friends, direct marketing, mass media and internet. (Schiffman and Kanuk: 2000)

A primary means by which attitudes toward goods and services are formed is through the

consumer’s direct experience, marketers frequently attempt to stimulate trial of new products by

offering cents-off coupons or even free samples.

The family is an extremely important source of influence on the formation of attitudes, for it is the

family that provides us with many of our basic values and a wide range of less central beliefs.

Impact of advertising messages on attitude formation is the level of realism that is provided.

Attitudes that develop through direct experience (e.g. product usage) tend to be more confidently

held and more enduring.

Attitudes are relatively consistent with behavior they reflect. However, despite their consistency,

attitudes are not necessarily permanent they do change. One method for changing motivation is

known as functional approach. According to this approach, attitudes can be classified in terms of four

Cognitive Component

Brand beliefs

Affective Component

Brand evaluation

Conative Component

Intention to buy

Behavior

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functions: the utilitarian function, the ego defensive function, the value expressive function and the

knowledge function. (ibid)

The utilitarian function

When a product has been useful or helped us in the pat, our attitude toward it tends to be

favorable. One way of changing attitudes in favor of a product is by showing people that it can

serve a utilitarian purpose that they may not have considered.

The ego defensive function

Most people want to protect their self images from inner feelings of doubt. They want to replace

their uncertainty with a sense of security and personal confidence.

The value expressive function

Attitudes are an expression or reflection of consumer’s general values, lifestyle and outlook.

The knowledge function

Individuals generally have a strong need to know and understand the people and things they

encounter. The consumer’s ‘need to know’, a cognitive need, is important to marketers concerned

with product positioning. Indeed, many product and brand positioning are attempts to satisfy the

need to know and improve the consumer’s attitudes toward the brand by emphasizing its

advantages over competitive brands.

An attitude can serve more than one function, but in many cases a particular one will be dominant.

By identifying the dominant function a product serves for consumers (i.e. what benefits it

provides); marketers can emphasize these benefits in their communications and packaging. Ads

relevant to the function prompt more favorable thoughts about what is being marketed and can

result in a heightened preference for both the ad and the product. (Michael Solomon et. al.:2006)

The Fishbein model

The most influential multi-attribute model of attitude is the Fishbein model, named after its

primary developer. The model measures three components of attitude:

1. Salient beliefs: people have about an attitude object (those beliefs about the object that are

considered during evaluation).

2. Object-attribute linkages: or the probability that a particular object has an important attribute.

3. Evaluation: of each of the important attributes.

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Note, however, that the model makes some assumptions that may not always be warranted. It

assumes that we have been able to specify adequately all the relevant attributes that, for example, a

student will use in evaluating his or her choice about which college to attend. The model also

assumes that he or she will go through the process (formally or informally) of identifying a set of

relevant attributes, weighing them and summing them.

Although this particular decision is likely to be highly involving, it is still possible that his or her

attitude will be formed by an overall affective response (a process known as affect-referral).

The extended Fishbein model

The original Fishbein model, which focused on measuring a consumer’s attitude towards a product,

has been extended in a number of ways to improve its predictive ability.

The revised version is called the theory of reasoned action. The model is still not perfect, but its

ability to predict relevant behavior has been improved. Some of the modifications to this model are

considered here.

Intentions vs. behavior

Many factors might interfere with actual behavior, even if the consumer’s intentions are sincere.

He or she might save up with the intention of buying a stereo system. In the interim, though, any

number of things – being made redundant or finding that the desired model is out of stock – could

happen. It is not surprising, then, that in some instances past purchase behavior has been found to

be a better predictor of future behavior than is a consumer’s behavioral intention.49 The theory of

reasoned action aims to measure behavioral intentions, recognizing that certain uncontrollable

factors inhibit prediction of actual behavior.

Social pressure

The theory acknowledges the power of other people in influencing behavior. Many of our

behaviors are not determined in isolation. Much as we may hate to admit it, what we think others

would like us to do may be more relevant than our own individual preferences. (ibid)

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2.3 Review of previous researches

Behavior is determined by intentions, which are in turn determined by attitudes and subjective

norms (Ajzen and Fishbein et. al, 1980 cited in Huang, Lee and Ho: 2003). Most behavioral

models trace causal links from attitude, through intentions, to actual behavior, implying that

behavioral intentions must be understood to predict behavior from attitudes. (Kim and Hunter,

et.al, 1993 cited in Huang, Lee and Ho, 2003). And according to Fishbein model, an attitude is a

function of strength of belief that an object has an attribute, evaluation of the product on the

attribute, and the number of attributes valued by the consumer. (Keith Walley et. al: 2009)

Implicit in most attitudinal research in both social psychology and consumer behavior is the notion

that individual attitudes are significant determinants of both behavioral intentions and specific

behaviors (Ajzen and Fishbein, 1973; Norman, 1975). Overall affect toward a multi-attribute

object as a measure of attitude is posited to reflect the individual's belief structure as to the degree

to which individual brands possess certain attributes weighted by the evaluation of each attribute

(Wilkie and Pessemier, 1973). (Cited in Woodside and Bearden: 1977)

A research developed by Karjaluoto, Mattila and Pento (2002) attempted to explore the factors that

influence consumer attitude formation and affect towards online banking. The authors gave major

emphasis for three factors that affect attitude: consumer demographics and personality treat, prior

experience and reference group influence. The study hypothesized that consumer attitude explains

consumer behavior. The more favorable attitude a person has towards a product/ service, the more

likely that person is to buy that product/service. The overall attitude towards an object is expected

to be related to behaviors towards an object.

The researchers developed questionnaire that was mailed to 2000 - 3000 individual bank customers

in Finland. The demographic characteristics of the respondent were analyzed separately to see their

relationship with attitude and behavior. Correlation and factor analysis is used to explain the

relationship between reference group and experience.

Result from the study showed that prior experience of a product influences both attitude towards a

product and actual behavior. Demographic factors, specifically house hold income and occupation

were significant variable that affect behavior towards online banking.

Another longitudinal research conducted by Woodside and Bearden (1977), investigated the

attitude, behavioral intention, and reported behavior of brand choice among 105 beer consumers.

In the study consumer beliefs, attitudes, intentions, and reported behavior for four brands of beer

were collected from male household heads of a regional consumer panel in the southeastern United

States in February 1975. A second mailing to the 172 respondents answering all questions for each

17

brand was made in February 1976. The results of the study were based on the response of the 105

consumers of beer answering all questions in both mailings. Panel members were selected on a

quota basis and were representative of the population characteristics of the regional area.

Budweiser, Pabst, Old Milwaukee, and Schlitz were the beer brands examined in this survey. The

combined sales volume of these brands accounted for over 60% of all beer sold in the consumer

panel area during the periods of the study.

Product attributes were selected on the basis of previous in depth interviews and taste studies of

informal consumer groups conducted by an independent marketing research firm. Beliefs and

evaluations were obtained for 11 product attributes. The summated belief score was based on 7 of

these attributes selected on the basis of factor analysis.

The results of the longitudinal survey showed that previous attitudes, previous behaviors and

current attitudes influence the behaviors and beer brand choices of the consumers of the four

brands under study.

It also indicated the relationship between the level of involvement of consumers with the products

and brands; when individuals are highly involved with a particular choice object, attitude change

may precede behavior change. However, when low involvement is characteristic of the purchase

situation; behavior change may precede attitude change. This may be particularly relevant when a

low-priced convenience brand is purchased on the basis of limited information search, e.g., such as

a purchase on the advice of a friend or an individual impulse purchase.

Situational factors may also intervene between attitudes and behavior in an unexpected sense.

These may include factors such as temporary economic conditions, organizational changes, and

changes in the market place (e.g., promotional efforts, new product introductions, and price

changes) may also intervene and affect industrial and durable good buying processes.

The research underscored the ability of previous behavior to predict both subsequent individual

affective tendencies and behavioral intentions. Post-choice attitude change may be attributed to

either additional information or cognitive dissonance. However, for low-priced convenience

products, modifications in existing attitudinal structure are likely to occur in the form of either

changes in existing attitudes or further refinement of less developed currently held beliefs on the

basis of additional information acquired from trial usage.

Previous brand choice behavior is directly influencing the formation of intentions and ensuing

brand choice decisions. The purchase of many convenience items may not involve decision

processes which are based upon well-founded belief systems and attitudes of high centrality. The

18

perspective of "low-commitment" consumer behavior suggests that consumers for many products

may not be particularly committed in their brand selection processes.

When commitment is low and beliefs are not strongly held, brand purchase may reflect only the

convenience inherent in repeat purchases rather than commitment to the brand purchased based on

a well-developed attitudinal structure (Robertson, 1976 Cited in Woodside and Bearden: 1977).

When individuals engage in purchase situations characterized by low-involvement (e.g. the

purchase of many low-priced convenience goods), behavior may take precedence over attitudinal

influences. Consequently, the initial behavioral measure is depicted as influencing current

intentions and subsequent attitudes and brand selections.

A study by Nattakarn Ramasut and Suteera Saranpattranon (2009), tried to identify the different

demographic features which affect consumer’s attitudes towards beer products. Since attitudes are

opinions or feeling and evaluation of knowledge towards the products; demographic features play

an important role in understanding the consumers’ need and influences to the consumers’ thinking.

The result of this research should that marketers need to adapt their strategy to response

consumers’ need in different target group suitably.

The study was conducted on attitudes of different consumer groups towards beer products taking

395 sample size in Bangkok. And using different statistical methods the researchers come up with

a conclusion that the diversifications of gender and income levels have different attitudes towards

beer product. But at different age, occupation, and education have no different attitudes towards

beer product. Manufacturers should focus on female as new target group and also adapt the product

to the right requirement of consumer to persuade people to consume the product.

Similarly, this paper undertakes a cross sectional survey on the consumers perception and attitude

towards St. George Beer by taking 80 beer consumers from Addis Ababa. The study investigates

the current consumers’ attitudes towards the brand and factors that contribute to the formation of

these attitudes.

19

CHAPTER THREE

RESEARCH METHODOLOGY / RESEARCH DESIGN

3.1. Introduction

The purpose of this chapter is to describe the methodology used to achieve the research objectives

of this study. This includes the type of the research, target population, the sampling techniques, the

data collection and data analysis procedures.

3.2 Type of Research

In order to identify the consumer perception and attitude towards St. George beer, the researchers

used descriptive study through cross sectional survey method of data collection.

3.3 Population of the Study

The targeted population for the purpose of this study comprised of Bars and Restaurants which are

mainly St. George Beer dealers. And individual consumers of St. George beer were randomly

taken from the sampled bars and restaurants. Considering the time and resources available, the

targeted population was only limited to Mexico and Stadium areas in Addis Ababa.

3.4 Sampling Designs and Sampling Procedures

The researchers used both probability and non-probability sampling techniques. From the non-

probability sampling technique, convenience sampling is used to select the locations for the study,

which are Mexico and Stadium due to their accessibility to the researchers. And a simple random

method is used from the probability sampling technique to select the bars and restaurants from

these areas and also to pick the individual beer consumers from each sampled bars and restaurants.

3.5 Sources of Data

Information is gathered from both primary and secondary data sources. From the primary data

sources survey questionnaires; and from the secondary sources books, journals, and research

papers are used.

3.6 Data Collection Method

Self administered questionnaires are distributed to 80 final beer consumers in order to find out the

beer consumers’ perception and attitude towards St. George Beer and the factors that positively

contributed for the formation, change and maintenance of these attitudes.

20

3.7 Data Analysis and Interpretation Plan

After collecting and sorting the questionnaires, data are coded, computed, and analyzed using the

Statistical Package for Social Sciences (SPSS) software.

Appropriate statistical analyses such as frequencies, descriptive, correlation analysis and Analysis

of Variance (ANOVA) are used according to respective objectives and descriptors.

The analyzed data is presented using tables, graphs and pie-charts.

21

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 Introduction

This chapter is divided into three major sections. The first section provides the demographic

characteristics and of the respondents. The second section presents results on the respondents’

perception, attitude and preference of the different Ethiopian beer brands. Finally, the last section

addresses the results of correlation analysis and Analysis of Variance (ANOVA) on the factors

contributing for choosing St. George Beer.

4.2 Respondents

Out of the 80 questionnaires distributed 65 of them were filled out and returned of which all were

usable. Therefore, the data from 65 respondents were analyzed in this study. As stated in Chapter

Three, the respondents were beer consumers selected from the bars and restaurants in the area

around Stadium up to Mexico square in Addis Ababa.

4.2.1. Demographic characteristics of the respondents

The demographic characteristics of the respondents are shown in Table 1. The gender

distribution of the respondents was not proportional, with 12.3% female respondents and

87.7% male respondents. With regard to martial status, 58.5% were single, 38.5% married

and 3.1% divorced. The dominant age group of the respondents was 25-30 years (41.5%),

followed by 31-36 years (27.7%), 36 and older years (20%), and 18-24 years (10.8%) made

up the smallest group of the respondents.

In terms of level of education, 38.5% of the respondents had a Bachelor Degree; 27.7% of

the respondents had a secondary school education, and 26.2% of the respondents had a

College Diploma.4.6% of the respondents were above Bachelor Degree and 3.1% were

primary school complete. The result shows the relatively high educational attainment of the

respondents.

With regard to respondents' monthly income, the largest group included those with an

annual household income of ETB 3551 and above (41.5%), followed by ETB 2351-3550

(21.5%), ETB 1401-2350 (20%), and ETB 651-1400 (12.3%). Only 4.6% of the

respondents had a monthly income of ETB 150-650 (See Table 1).

22

Table 1. Demographic characteristics of the respondents

Frequency PercentGender Male 57 87.7 Female 8 12.3Martial Status

Single 38 58.5Married 25 38.5Divorced 2 3.1

Age18-24 7 10.825-30 27 41.531-36 18 27.7>36 13 20.0

OccupationGovernment employee 19 29.2Private employee 40 61.5Business person 5 7.7Other 1 1.5

Educational BackgroundPrimary school complete 2 3.1Secondary school complete 18 27.7College Diploma 17 26.2Bachelor Degree 25 38.5Above Bachelor Degree 3 4.6

Monthly income (in Ethiopian Birr)150-650 3 4.6651-1400 8 12.31401-2350 13 20.02351-3550 14 21.5>3551 27 41.5

4.2.2 Consuming habits of respondents

Beer consuming characteristics of respondents includes the brand choice and the frequency

of drinking which is summarized in Table 2 below.

Table 2. Beer consuming characteristics of respondents

Frequency PercentFrequency of drinking beer

Daily 16 24.6 Weekly 18 27.7 Monthly 2 3.1 Sometimes 24 36.9 Occasionally 5 7.7Beer brand Choice

Bedle 6 9.2 Dashen 9 13.8 Harar 3 4.6 St. George 45 69.2 Meta 2 3.1

23

In the frequency of drinking category, 36.9% of the respondents drink Sometimes, 27.7%

Weekly, 24.6% drink Daily, 7.7% Occasionally and the rest 3.1% Monthly.

With regard to the beer brand choice 69.2% of the respondents prefer to drink St. George

beer, followed by Dashen beer of which 13.8% of the respondents selected it as their number

one choice. Where as, 9.2% prefer to drink Bedle beer, 4.6% choose Harar and only 3.1% of

the respondents prefer Meta. It can be concluded that St. George beer has dominated the

majority of the respondents’ heart and mind constituting around 70%.

4.3 Attitudes of respondents towards St. George Beer

The respondents attitude towards St. George beer is evaluated using the three attitude components;

cognitive, affective and conation. With regard to the cognitive part respondents were asked about

the specific product attributes of St. George Beer so they rated the product attributes using a

semantic differential scale ranging from 5 on the positive side to 1 on the negative side.

Accordingly, it can be summarized that 42 of the respondents believe that St. George has a Very

Good Taste (Mean = 4.11) and 5 respondents rated the taste of St. George Beer as Very Bad

(1.20). The same goes to color, aroma and foam product attributes. In the case of hangover, 25

respondents rate St. George Beer as a Very low hangover beer (Positive beer attribute) with

(Mean=4.24) and 17 rate it as low hangover beer. Whereas, 5 of the respondents believe that St.

George Beer has a higher hangover (Mean=3.20). In Alcoholic percentage, St. George is rated as

an average alcoholic beverage by 27 of the respondents (Mean=4.11) and 16 respondents believe

that it has a higher alcoholic content. In the contrary 8 respondents believe that St. George‘s

alcoholic content is lower (Mean =3.88) and 9 respondents rated it with a Very low alcoholic

(2.89). With respect to thirst quenching attribute, St. George is rated as Very high thirst quenching

beer by 37 respondents (4.65) and 13 respondents said High thirst quenching beer with 4.46 mean.

(See Table 3)

From this analysis it can be concluded that, the respondents believe that St. George beer is has

premium or good qualities in attributes taste, color, aroma, foam, and thirst quenching. But there is

a lesser grading with regard to the attributes hangover and alcoholic content which needs a due

attention since these types of signals are helpful to identify the potentials for improvement.

24

Table 3. Relationship of attitude and product attributes

Attitude towards St. George Beer * St. George Beer: TasteSt. George Beer: Taste Mean N Std. DeviationVery bad 1.20 5 .447Bad 2.00 4 1.414Fair 2.80 5 .447Good 4.00 9 .866Very Good 4.83 42 .437Total 4.11 65 1.324

Attitude towards St. George Beer * St. George Beer: ColorSt. George Beer: Color Mean N Std. DeviationVery bad 1.20 5 .447Bad 2.50 2 2.121Fair 2.33 6 .816Good 4.10 10 .876Very Good 4.79 42 .520Total 4.11 65 1.324

Attitude towards St. George Beer * St George Beer: AromaSt George Beer: Aroma Mean N Std. DeviationVery bad 1.20 5 .447Bad 2.50 2 2.121Fair 2.78 9 1.093Good 4.22 9 .833Very Good 4.83 40 .446Total 4.11 65 1.324

Attitude towards St. George Beer * St. George Beer: FoamSt. George Beer: Foam Mean N Std. DeviationVery Low 1.20 5 .447Low 2.00 3 1.732Fair 3.00 8 .926High 4.09 11 .831Very High 4.89 38 .311Total 4.11 65 1.324

Attitude towards St. George Beer * St. George Beer: HangoverSt. George Beer: Hangover Mean N Std. DeviationVery High 3.20 5 1.483High 4.75 4 .500Fair 3.50 14 1.401Low 4.53 17 1.068Very Low 4.24 25 1.363Total 4.11 65 1.324

Attitude towards St. George Beer * St. George Beer: Alcoholic percentageSt. George Beer: Alcoholic percentage Mean N Std. DeviationVery Low 2.89 9 1.764Low 3.88 8 1.553Fair 4.11 27 1.121High 4.63 16 1.025Very High 5.00 5 .000Total 4.11 65 1.324

Attitude towards St. George Beer * St. George Beer: Thirst quenchingSt. George Beer: Thirst quenching Mean N Std. DeviationVery Low 2.00 9 1.500Low 3.67 3 1.155Fair 2.67 3 .577High 4.46 13 .660Very High 4.65 37 .857Total 4.11 65 1.324

25

While reviewing other marketing stimulus that trigger consumers to choose St. George Beer

among others, it is found that out of the 61 respondents who drink St. George 43 of them (66.2%)

choose taste as a major marketing stimulus for choosing St. George Beer. 7 of the respondents

(11.5%) said promotion and another 7 respondents (11.5%) said availability and 4 of the

respondents choose St. George because of the influence of other such as friends and families. Out

of the total 65 respondents 4 of them (6.2%) don’t want to drink St. George Beer unless and other

wise there is no other option or beer brand alternative. They believe that St. George Beer has less

alcoholic content, sour taste, watery, lesser quality in general.

Table 4. Marketing stimuli for choosing St. George Beer

Frequency Percent Valid PercentTaste 43 66.2 70.5

Promotion 7 10.8 11.5 Influence of others 4 6.2 6.6 Availability 7 10.8 11.5 Total 61 93.8 100.0Missing No Response 4 6.2Total 65 100.0

In order to identify the other components of attitude which is affective; respondents were asked

to evaluate St. George Beer in general by rating their liking and attitude towards St. George Beer

using a semantic differential scale. As per the result of this analysis output, 60% of the

respondents have Very good attitude towards St. George Beer, 13.8% have Good and 12.3%

have and average attitude towards this beer brand. 6 respondents have Very bad and 3

respondents have Bad attitude towards St. George Beer which requires further study by taking

larger and more representative sample.

Very GoodGoodFairBadVery bad

Attitude towards St. George Beer

40

30

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Bar Chart 1 Attitude towards St. George Beer

26

On the same token, the likeability of the respondents was measured which resulted in 47.7% of

respondents Very good, 24.6% Good, 15.4% Fair, 3.1% Bad and 9.2% Very bad.

Very GoodGoodFairBadVery bad

Likeability of St. George Beer

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Bar Chart 2 Likeability of St. George Beer

The percentage of both attitude and likeability is higher on the positive side, even though there

are extreme negatives which needs a special attention to find out their reasons for their dislike or

unfavorable attitude towards St. George Beer.

In the case of the third attitude component which is conation, respondents were asked about their

intention to buy or choose St. George Beer, by which 50.8% of respondents answered definitely

will buy, 24.6% probably will buy, and 10.8% said might buy. Whereas 9 respondents said will

not buy of which 6 of them (9.2%) said definitely will not buy and the rest 4.6% said probably

will not buy.

Definitely willbuy

Probably willbuy

Might buyProbablly willnot buy

Definitley willnot buy

Intention to buy St. George Beer

40

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Bar Chart 3 Intention to buy St. George Beer

27

In order to determine the function of attitude the respondents towards St. George beer, they

were also asked about their feeling when they drink St. George beer. Out of the 65 respondents

13 of them either could not explain their feeling or don not drink St. George beer at all.

Considering the rest 52 respondents, 24 of them feel satisfied, 25 respondents said relaxation, 2

respondents said acceptance from others and 1 respondent said confidence. From this it can be

concluded that St. George consumers drink the Beer for utilitarian function by they try to achieve

the desired benefits of relaxation and satisfaction from the beer.

Table 5. Feeling when drinking St. George beer

Frequency Percent Valid PercentValid Satisfaction 24 36.9 46.2 Relaxation 25 38.5 48.1 Acceptance from others 2 3.1 3.8 Confidence 1 1.5 1.9 Total 52 80.0 100.0Missing No response 13 20.0Total 65 100.0

In connection to the probability of switching to another brand, respondents were asked if they

want switch from St. George to another and if so the reason behind their intention for switching.

Surprisingly, 50% of the respondents want to switch to another brand, this is what makes it

difficult to understand the consumer black box and their reason behind every action they made.

Even though, most of the respondents expressed their attitudes and consuming habits in favor of

St. George in the first few questions, they still want something better.

Out of the 65 respondents 32 wants to switch and the rest 32 are loyal consumers of the brand

and 1 respondent said that he has recently switched to another due to decline of the St. George

Beer quality. This is one major red light for St. George Beer in the future. The major reasons for

switching stated by the respondents are recently declining quality with regard to taste, lower

alcoholic content of the beer and if a new better beer brand is introduced to the market

respondents are very willing to switch.

28

4.4 Influence of advertisement towards attitude formation using Pearson correlation

A correlation coefficient measured the strength of a linear between two variables. In the study, a

correlation coefficient measured the strength of a linear between five advertisement attributes

(Seasonal, Entertaining, Influential, Repetitive, and Attractive) and attitude towards St. George

Beer.

The correlation between attitude towards St. George Beer and Seasonal advertisement is positive

and is significant at the 0.01 level (2-tailed). The correlation is 0.371 (p=0.02). Entertaining

advertisement is also positively correlated and is significant at the 0.05 level (2-tailed). The

correlation is 0.307 (p=0.13). Creativity of the ad is also positively related- Correlation is

significant at the 0.05 level (2-tailed) with 0.257 (p=0.039). Attractiveness of the ad has a week

positive correlation with attitude towards St. George Beer, whereas repetitive and influential

advertisements have a weak negative correlation with attitude towards St. George Beer.

Table 6 Pearson correlation of advertisement attributes and attitude

Advertisement attributes

Seasonal Entertaining Creative Attractive Repetitive Influential

Attitude

towards St.

George Beer

Pearson Correlation .371(**) .307(*) .257(*) .188 -.050 -.098

Sig (2-tailed) .002 .013 .039 .135 .691 .435

N 65 65 65 65 65 65

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

* Correlation is significant at the 0.05 level (2-tailed).

In addition, respondents have indicated that ST. George Beer advertisements have a unique or

differentiated characteristics from the other competitor beer brands in a way that;

The advertisements of St. George are entertaining

Seasonal ads in relation to Ethiopian cultural and religious festivals

Creativity

Ethiopian – the creative is done based on the real Ethiopian culture in return makes the

audience feel closer and attracted to message

Simple and to the point advertisement message.

Sponsoring sports and participating and supporting other special programs and festivals

29

With regard to the regard to the repetition of advertisement 53.8% of the respondents believe that

St. George’s advertisements are repetitive and the rest 46.2% do not agree with.

Table 7 St. George beer advertisement repetition

Frequency Percent Valid PercentCumulative

PercentValid Yes 35 53.8 53.8 53.8

No 30 46.2 46.2 100.0

Total 65 100.0 100.0

The repetition of the ads of St. George Beer resulted in sensory adaptation which is clearly

presented by the person correlation result presented below in Table 9, by which the correlation of

advertisement repetition of St. George beer is positively correlated and is significant at the 0.01

level (2-tailed). The correlation is 0.418 (p=0.007). This requires the company to review the

number and frequency of advertisement repetition so that it can transmit its message with limited

number in an efficient and effective timing.

Table 8 Advertisement repetition and sensory adaptation

St. George beer

advertisement repetitionSt. George beer advertisement

sensory adaptationSt. George beer advertisement repetition

Pearson Correlation1 .418(**)

Sig. (2-tailed) .007 N 65 40St. George beer advertisement sensory adaptation

Pearson Correlation.418(**) 1

Sig. (2-tailed) .007

N 40 40

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

4.5 Demographic factors and consumer attitude towards St. George

The difference among various demographic groups with regard to their attitudes towards St.

George beer is analyzed using cross tabulation and ANOVA statistical methods.

Table 9 presents the cross tabulation of demographic factors and attitude towards St. George

beer. And Table 10 presents the ANOVA analysis of demographic factors and attitude towards

St. George beer.

Table 9 Demographic factors and attitude towards St. George Beer -Cross tabulation

30

Gender * Attitude towards St. George Beer Cross tabulation

Attitude towards St. George Beer Total Very bad Bad Fair Good Very Good

Gender male 6 3 8 8 32 57 female 0 0 0 1 7 8Total 6 3 8 9 39 65

Age * Attitude towards St. George Beer Cross tabulation


Age 18-24 0 0 0 2 5 7 25-30 0 0 3 5 19 27 31-36 2 0 3 2 11 18 >36 4 3 2 0 4 13Total 6 3 8 9 39 65

Marital Status * Attitude towards St. George Beer Cross tabulation


Marital Status Single 1 0 3 6 28 38 Married 5 3 4 2 11 25 Divorced 0 0 1 1 0 2Total 6 3 8 9 39 65

Monthly Income * Attitude towards St. George Beer Cross tabulation


Monthly Income 150-650 0 0 0 1 2 3 651-1400 0 0 0 1 7 8 1401-2350 1 0 1 2 9 13 2351-3550 2 1 1 3 7 14 >3551 3 2 6 2 14 27Total 6 3 8 9 39 65

Educational Background * Attitude towards St. George Beer Cross tabulation

Attitude towards St. George Beer Total

Very bad Bad Fair Good Very Good Educational Background

Primary school complete0 0 0 0 2 2

Secondary school complete3 0 3 1 11 18

College Diploma 2 0 1 5 9 17 Bachelor Degree 0 3 4 3 15 25 Above Bachelor Degree 1 0 0 0 2 3Total 6 3 8 9 39 65

Occupation * Attitude towards St. George Beer Cross tabulation

Attitude towards St. George Beer Total

Very bad Bad Fair Good Very Good Occupation Government employee 1 0 2 1 15 19 Private employee 5 3 3 7 22 40 Business person 0 0 3 1 1 5 Other 0 0 0 0 1 1Total 6 3 8 9 39 65

From Table 9, it can be concluded that in the gender category even if the female respondents are few

compared to that of males all of them have a positive attitude towards St. George beer. In the age

31

category age group 25-30 have good and very good attitude towards St. George beer. With respect to

martial status, the single respondents have better attitude towards St. George beer. In the case of

monthly income level group most of the respondents with income level 651-1400 and 150-650 have

positive attitude towards St. George beer. In the educational background, respondents with bachelor

degree have good and very good attitudes, the same goes to private employees in the occupation

demographic group.

In order to explain the difference among and between groups, ANOVA analysis is done which is

presented below In Table 10 below.

Table 10 Demography and attitude towards St. George Beer - ANOVA

Attitude towards St. George Beer Gender

Sum of

Squares df Mean Square F Sig.Between Groups 5.371 1 5.371 3.166 .080Within Groups 106.875 63 1.696Total 112.246 64

Attitude towards St. George Beer Age

Sum of


Attitude towards St. George Beer Martial status

Sum of


Attitude towards St. George Beer Income

Sum of


Attitude towards St. George Beer Educational background

Sum of

Squares df Mean Square F Sig.Between Groups 2.870 4 .718 .394 .812Within Groups 109.376 60 1.823Total 112.246 64

Attitude towards St. George Beer -Occupation

Sum of


According to the one-way ANOVA results of the mean difference of attitude towards St. George

Beer by the demographic characteristics, no significant difference in the attitude towards St.

George Beer of the respondents was found by gender, educational background, monthly income

32

and occupation. Significant difference in the overall satisfaction of the respondents was found only

by age (F=8.184 and p=.000) and martial status (F=6.983 and p=.002). Since the F ratio value of

age and martial status is significant, there is a difference between groups on age and martial status

demographic variables.

After determining the existence of the mean difference the Post Hoc Tests was done in order to

determine which means differ for the age and martial status demographic characteristics.

Table 11 Post Hoc Tests for Age

Multiple Comparisons

Dependent Variable: Attitude towards St. George Beer

LSD

.122 .486 .803 -.85 1.09

.603 .510 .242 -.42 1.62

1.945* .537 .001 .87 3.02

-.122 .486 .803 -1.09 .85

.481 .349 .172 -.22 1.18

1.823* .387 .000 1.05 2.60

-.603 .510 .242 -1.62 .42

-.481 .349 .172 -1.18 .22

1.342* .417 .002 .51 2.18

-1.945* .537 .001 -3.02 -.87

-1.823* .387 .000 -2.60 -1.05

-1.342* .417 .002 -2.18 -.51

(J) Age25-30

31-36

>36

18-24

31-36

>36

18-24

25-30

>36

18-24

25-30

31-36

(I) Age18-24

25-30

31-36

>36

MeanDifference

(I-J) Std. Error Sig. Lower Bound Upper Bound

95% Confidence Interval

The mean difference is significant at the .05 level.*.

From the multi comparison of mean differences of the attitude towards St. George Beer by age

respondents, the age group 36 and above has difference with all the rest of the age groups in the

attitude towards St. George Beer which indicates that this age group of respondents has a lesser

attitude towards this Brand.

Table 12 Post Hoc Tests for Martial status

33

Multiple Comparisons

Dependent Variable: Attitude towards St. George Beer

LSD

1.139* .314 .001 .51 1.77

1.079 .883 .227 -.69 2.84

-1.139* .314 .001 -1.77 -.51

-.060 .895 .947 -1.85 1.73

-1.079 .883 .227 -2.84 .69

.060 .895 .947 -1.73 1.85

(J) Marital StatusMarried

Divorced

Single

Divorced

Single

Married

(I) Marital StatusSingle

Married

Divorced

MeanDifference

(I-J) Std. Error Sig. Lower Bound Upper Bound

95% Confidence Interval

The mean difference is significant at the .05 level.*.

From the multi comparison of means of marital status of respondents, the difference in the attitude

towards St. George Beer lies in the married respondents which indicate that this group of

respondents has a lesser attitude towards the Brand.

4.6 Comparison of St George Vs Dashen and Meta

The product attributes of major competitor beer brands of Ethiopia which are St. George, Dashen

and Meta Abo are compared using mean and standard deviation. Accordingly, St. George Beer has

above average means for taste, color, aroma, foam and thirst quenching attributes and average

mean for hangover and alcoholic percentage. While Dashen scored average means for all the

attributes by which it exceeds St. George in alcoholic content (Mean St. George=3.00 and Mean

Dashen=3.44). Whereas, Meta Abo is below average for all the attributes except for thirst

quenching and alcoholic percentage which have average means.

This shows that the quality of St. George Beer’s attribute helped it to win the consumers mind and

larger market share in the Ethiopian Beer industry.

34

Table 13 Product attributes comparison among various Ethiopian beer brands

Product attributes’ means- Dashen Beer N Minimum Maximum Mean Std. Deviation

Dashen Beer: Taste 52 1 5 3.48 1.163

Dashen Beer: Color 52 1 5 3.44 1.018

Dashen Beer: Aroma 52 1 5 3.44 .978

Dashen Beer: Foam 52 1 5 3.44 .978

Dashen Beer: Alcohol percentage 52 1 5 3.44 1.018

Dashen Beer: Hangover 52 1 5 3.77 1.366

Dashen Beer: Thirst quenching 51 1 5 3.20 1.184

Valid N (listwise) 51

Product attributes’ means -Meta Abo Beer N Minimum Maximum Mean Std. Deviation

Meta Abo: Taste 51 1 5 2.92 1.163

Meta Abo: Color 51 1 5 2.88 .931

Meta Abo: Aroma 51 1 5 2.98 .860

Meta Abo: Foam 51 1 5 2.96 .871

Meta Abo: Alcohol percentage 51 1 5 3.10 1.153

Meta Abo: Hangover 51 1 5 2.92 1.369

Meta Abo: Thirst quenching 51 1 5 3.04 1.113


Product attributes’ means -St. George Beer N Minimum Maximum Mean Std. Deviation

St. George Beer: Taste 65 1 5 4.22 1.281

St. George Beer: Color 65 1 5 4.26 1.228

St George Beer: Aroma 65 1 5 4.18 1.249

St. George Beer: Foam 65 1 5 4.14 1.261

St. George Beer: Alcoholic percentage 65 1 5 3.00 1.118

St. George Beer: Hangover 65 1 5 3.82 1.236

St. George Beer: Thirst quenching 65 1 5 4.02 1.441


4.7 Beer brand choice of respondents

The respondents were asked to rank the five Ethiopian beer brands; Bedle, Dashen, Harar, Meta

Abo and St. George, with respect to their preference. Accordingly, St. George is the leading brand

in which 44 respondents choose it as their number one choice, followed by Dashen with 9

respondents, Bedele with 7 respondents, Meta Abo with 3 respondents and Harar 2 respondents

choosing them as their first choice.

Table 14 Bedele Beer rank35

Frequency Percent Valid PercentValid 1st choice 7 10.8 11.9 2nd choice 12 18.5 20.3 3rd choice 13 20.0 22.0 4th choice 17 26.2 28.8 5th choice 10 15.4 16.9 Total 59 90.8 100.0Missing No response 6 9.2Total 65 100.0

5th choice4th choice3rd choice2ndchoice

1st choice

Bedele Beer

20

15

10

5

0

No.

of R

espo

nden

ts

Bar Chart 4 Bedele Beer Rank

Table 15 Dashen Beer rank


PercentValid 1st choice 9 13.8 14.5 14.5

2nd choice 17 26.2 27.4 41.93rd choice 12 18.5 19.4 61.34th choice 10 15.4 16.1 77.45th choice 14 21.5 22.6 100.0Total 62 95.4 100.0

Missing No response 3 4.6Total 65 100.0

5th choice4th choice3rd choice2nd choice1st choice

Dashen Beer

20

15

10

5

0

No

. of

Res

po

nd

ents

Bar Chart 5 Dashen Beer Rank

Table 16 Harar Beer

36



2nd choice 7 10.8 11.5 14.8

3rd choice 17 26.2 27.9 42.6

4th choice 17 26.2 27.9 70.5

5th choice 18 27.7 29.5 100.0

Total 61 93.8 100.0Missing No response 4 6.2Total 65 100.0


Harar Beer

20

15

10

5

0

No

. of

Res

po

nd

ents

Bar Chart 6 Harar Beer Rank

Table 17 Meta Abo Beer



2nd choice 19 29.2 31.7 36.7

3rd choice 14 21.5 23.3 60.0

4th choice 12 18.5 20.0 80.0

5th choice 12 18.5 20.0 100.0

Total 60 92.3 100.0Missing No Response 5 7.7Total 65 100.0


Meta Abo Beer

20

15

10

5

0

No

. o

f R

es

po

nd

en

ts

Bar Chart 7 Meta Abo Beer Rank

37

Table 18 St. George Beer



2nd choice 9 13.8 13.8 81.5

3rd choice 4 6.2 6.2 87.7

4th choice 3 4.6 4.6 92.3

5th choice 5 7.7 7.7 100.0

Total 65 100.0 100.0


St. George Beer

50

40

30

20

10

0

No

. of

Res

po

nd

ents

Bar Chart 8 St. George Beer Rank

Even though it is difficult to draw conclusion from this small survey, this is a great success for St.

George Beer but it is also an assignment for the Company to maintain and increase its number one

preference rank.

38

CHAPTER FIVE

CONCLUSION AND RECOMMENDATION

5.1 Conclusion

In the preceding sections of this paper, the issue of consumer perception and attitude is thoroughly

discussed taking the case of St. George beer

This study is undertaken by reviewing secondary data written on related topics and collecting and

analyzing primary data through a survey questionnaire distributed to 80 beer consumers around

Mexico and Stadium area in Addis Ababa; of which 65 were filled out and returned.

The objective of the research is to determine the current perception and attitude of consumer St.

George beer. To this end the study surveyed the perception and attitude towards this Brand, and

also assessed the factors contributing to the current level of attitude and the resulted behavior.

Accordingly, the data analysis performed in frequencies, ANOVA, and correlation analysis

methods show that most respondents have a positive attitude towards St. George beer and most of

them prefer it as their first choice. This is resulted due to the product attributes especially taste,

aroma, color, foam, and thirst quenching ability of the Beer. With regard to the perception of the

marketing efforts in promotion, the St. George Beer advertisements are perceived positively by

most of the respondents due to their creativity, entertaining ability, cultural perspective, and

seasonality. The repetition of the ads created a sensory adaptation in one third of the respondents.

The public relation aspects such as supporting and sponsoring sports and other programs are also

positive perceived by the respondents.

The demographic characteristics such as gender, age, martial status, educational back ground,

monthly income, and occupation were analyzed with regard to their difference in attitude towards

St. George Beer. But only age and martial status have significance difference among the groups.

The age group of 36 and above (from the age demographic characteristics) and married (from

martial status demographic characteristics) respondents have lesser attitude towards St. George

Beer.

The intention to switch result was surprising that out of the current St. George beer consumer

respondents half of them have the intention switch to other brands.

39

5.2 Recommendation

Companies depend on their customers and therefore should understand current and future customer

needs, meet these needs and strive to exceed customer expectations. For any business, which

depends for its ultimate survival on satisfying a market, meeting customer requirements is clearly

vital.

The company that really understands how consumers will respond to different product features,

prices, and advertising appeals has a great advantage over competitors. So as to understand

consumers’ responses or behaviors, the consumer psychology which results these responses need to

be identified.

Among others perception and attitudes are important components of the consumer psychology in

which this research paper has fully focused on.

St. Gorge Beer is the pioneer and still the dominant beer brand in Ethiopia. The Brand increased its

market share significant in the past few years. The Company of this Beer Brand has given a due

attention to the marketing mixes especially the product and the promotion which resulted in

positive attitudes of beer consumers which in return resulted in positive behavior or preference of

the Brand. The researchers believe that this point should also be shared by other competitive

brands since the market share of the rest of competing brands is way below average.

With regard to St. George, it has to maintain and improve its current positive perception and

attitudes by Ethiopian beer consumers. It has to always strive to exceed the consumers’ expectation

by offering better quality products, addition product lines which could meet the needs of different

group of consumers, continue to improve its promotional activities and diversify its distribution

channel not only in Ethiopia but also to the international market.

The question about the intention to switch is answered “yes” by half of the respondents, which is a

red light to the Brand and requires it not to be fully confident by its current huge market share in

Ethiopian beer industry. Since today’s market is very dynamic, St. George beer should undertake a

continual improvement, because new beer brands are going to enter the market from domestic as

well as international beer manufacturers. There is a saying that the largest room in the world is the

room for improvement.

It is difficult to generalize the perception and attitude of the beer consumers towards St. George

Beer in Ethiopia based on the findings of this very small scaled research, this study only gives the

insight of the current situation with regard to this issue. So a better in depth study need to be

undertaken on this topic in the future.

40

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41

http://www.capitalethiopia.com/index.php

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http://www.acrwebsite.org/volumes/display.asp?id=5688

APPENDICES

42