Factors influencing customers in switching from local products to imported products in the beverage industry in Tanzania

The demands for import supply are greatly influenced by trade policy which may encourage or discourage the country’s participation in international trade. Trade policy is the fundamental determinant of economy performance. The aim of this study was to examine factors influencing customers switching from local to imported products in Masaki Kinondoni district. Data were collected by interviewing from 70 respondents who were top managers and their subordinates; Heineken customers as well as local beer customers. Data was captured using a semi-structured questionnaire as the main tool with closed and open ended questions. Observation was also used. Descriptive analysis using Statistical Package for Social Sciences was used for data analysis to assess factors influencing customers in switching from local to imported product. Results revealed that quality was one of the factors considered by customers on their purchasing decision, it was perceived that the products that come from outside the country has good quality as compared to locally produced product. Through this notion most of the customers preferred imported beer (Heineken) as compared to local beer. Findings of this Study revealed that packaging and labeling was another factor influencing customer’s purchasing decision and packaging was associated with quality of the product. It was found out that aesthetic aspects of products’ packaging influenced customers’ buying decision. It was also revealed that social factors contributed into customers buying behaviour on the brand where by consumer preference was driven by complex social behaviors which had both rational and subjective influence on customer choice of the product. This study recommends that to avoid challenges leading to customers’ switch from local beer to imported beers, internal manufacturers increase their sales by designing more visually attractive packaging, labeling and increasing product quality that will attract customers’ attention to their products. And thus influence the buying decision. Moreover, both policy-makers from government and Tanzania Breweries Limited are urged to enhance effective customer relations strategies in particularly cost leadership as well as market expansion for improving company’s’ profit and customers loyal