Factors influencing Purchasing Decision and Stock Market Performance in Tanzania

This study investigated factors influencing purchasing decision and stock market performance in Tanzania specifically in Dar es salaam where the stock market exchange is located. The study intended to examine factors that influenced investors purchasing decision by focusing on the most identified factors from literature, which are stock market information accessibility, brokers recommendation and management initiatives. The study employed quantitative research approach to assess factors influencing purchasing decision that may also influence DSE performance in Tanzania. Simple random sampling procedure was employed to get respondents. Thus 80 respondents were randomly selected respondents were staff at DSE while 40 respondents were the customers/ investors at DSE. Findings from the study revealed that there was lack of information flow that would make interested investors to get comprehensive knowledge regarding DSE. Such patterns create lack of understanding of DSE operations such that activities were carries out of the center. Commonly pointed factors regarding access to sufficient information included lack of ICT and advanced technology in trading securities limited number of brokers, lack of reliable internet services and lack of sufficient and reliable information about the market. It was revealed that strategies applied by DSE were good but unable to attract a huge number of investors. Lack of competent experts such as brokers in financial markets was one of the challenges faced by DSE. It was revealed that most investors were not extemally influenced by the management of DSE. Instead, they were self-motivated and they were motivated by senior investors includes friends. The study has implications on policy formulation and management. It was recommended that the DSE Management in collaboration with CMSA should provide more training and seminars to service providers such as brokers and employees who deal with capital market to enable them be experts in their work.