Effects of consumer bargaining power on price flexibility of gari in Imo State, Nigeria
The study examined the effect of consumer bargaining power on price flexibility of gari in Imo State, Nigeria. Data were drawn from the three agricultural zones in the state. A functional market in each of the zones was randomly selected. Primary data were obtained by means of interview schedule (questionnaire) administered to consumers of gari at retailers’ shops. Data were analyzed using descriptive techniques and ordinary least square (OLS) multiple regression analysis. The result showed that mean weekly consumers unit price of gari was ₦47.340/kg with a mean weekly purchase of 5.5 kg/week. About 53.33% of gari consumers have a weak bargaining index of 18.09, while the mean bargaining power of gari is 64.09% and this gave a baseline for gari retail price. The result of multiple regressions showed that the co-efficient of price of substitute (X1) household size (X6) and consumers income (X7) are positive and have significant relationships with consumers’ bargaining power. Consumers’ awareness of their bargaining power and good understanding of marketing system and its modus operandi, price trends, formation and fixing could help them take their proper place as price givers and kings in the market place hence, this study recommends the need for consumers’ to improve their level of education in order reposition themselves to make good use of market information to their advantage in bargaining. Consumers should form co-operative societies through which they can share market information, buy gari in bulk to reduce retail prices and at the same time play a key role in price formation. Keywords: Bargaining power, consumers, retailers, price flexibility, gari commodity.