Abstract:
Consumer cooperatives are businesses that are owned and democratically managed by
their members, focusing on meeting the needs and aspirations of consumers.
Understanding the factors that influence participation in these cooperatives is crucial for
economic development. This study examines the determinants of consumer cooperative
membership in Jimma Town, utilizing both qualitative and quantitative data gathered
through structured interviews, focus group discussions, and key informant interviews from
various sources. Data collection involved a random sampling of 155 respondents from
four kebele households. The analysis employed two main approaches: descriptive
statistics (mean, standard deviation, frequency, and percentage) and econometric models,
specifically logit regression. STATA version 14 was used for data analysis. The results
showed that 62.6% of households participated in consumer cooperatives, while 37.4% did
not. An independent t-test was applied to continuous variables, and a chi-square test was
used for categorical variables, complemented by a Likert scale to evaluate perceptions of
consumer cooperatives. The analysis revealed statistically significant differences across
most variables. Challenges to membership identified includes lack of awareness,
reluctance to join, insufficient knowledge, limited availability of goods, inadequate
training, delayed delivery, and government intervention. The logit model identified three
significant factors influencing membership: the educational level of households, access to
market information, and knowledge about cooperative services, all of which positively
affected participation in consumer cooperatives. In general, consumer cooperatives
membership were found to have a paramount importance in availing goods and services
in a fair price and enable members to gain double advantage through redistributing
benefit dividends. Therefore, addressing membership challenges through better supply
chain management, increasing awareness, enhancing service quality, and ensuring
transparent governance deserves special attention. Additionally, promoting fair pricing,
upgrading infrastructure, encouraging democratic practices, and providing financial
incentives are essential for strengthening cooperative membership and engagement in the
study area.
