| Abstract: | The main objective of this study is to examine factors affecting consumer price perception of
used car in Ethiopia: in the case of Addis Ababa. It attempted to examine the effect of perceived
value, perceived benefits, perceived quality, reference group influence and perceived risk on
price of used car. Four independent variables were included in this study. The dependent
variable in this study is price of used car and independent variables are perceived value,
perceived benefits, perceived quality, reference group influence and perceived risk. In this
study, descriptive and explanatory research design was used. The study applied quantitative
research approach. Primary data, through structured questionnaire, was collected from
samples of 167 respondents. Purposive sampling method was used to draw the sample from the
total population. Data were analyzed using both descriptive and inferential statistics with the
help of SPSS version23. The result shows that perceived value, perceived benefits, perceived
quality, reference group influence and perceived risk has significant and positive effect on price
of used car at 5% level of significance. Hence, the customers should purchase the used cars
based on the requirements and conveniences; government may interfere and restructure the
existing car market that must be re-shaped again to maintain consumers’ rights and
consumerism protection to get trust-able car market in the city; and the buyers should evaluate
the value of things in their minds when consumers consider buying used cars and evaluate the
value of things in their minds. The consumers should gather all information about the cars. |
