Determinants Of Consumer Cooperatives Membership: The case of in Jimma Zone Town, Oromia Regional state, Ethiopia

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