| dc.description.abstract | The Kenyan industries are facing a growing number of complex challenges that threaten their
growth and prosperity. These challenges are due to the great dynamism in both the local and
global environments. The local network cabinet manufacturers have not been spared and
have to operate within the challenges of poor infrastructure, high and rising steel prices, high
cost of doing business in Kenya, more demanding customers and stiff competition amongst
themselves, not to mention offshore manufacturers. To survive they need to manage these
challenges. Key to this management is an understanding of what the buyer considers as
important in their purchase criteria, so as to provide network cabinets that are competitive
enough to attract sufficient customer numbers and order volumes.
This study was conducted to determine the criteria which organizational buyers consider in
the purchase of network cabinets, assess the relative importance of the factors in the criteria
to the buying organizations and to establish the key factors that affect the buyers' preference
for PTL's network cabinets.
The study was based on a descriptive design; the population included all the organizations
that purchased network cabinets from Power Technics Ltd. (PTL) between January 2003 and
March 2005. A census study was conducted, for the eighty-three customers who could be
contacted. Seventy-three responses were received. Primary data was collected using a semistructured
questionnaire, which was divided, into three parts. Part A collected biodata on the
organizations while Part B contained Likert type questions that collected data on the extent of
consideration of factors in a purchase criteria. Part C had open-ended questions that sought
the factors that influenced the buyers' preference for PTL network cabinets. Some of the
questionnaires were administered personally, on email while others were administered
through the drop and pick later method. The questionnaire was pre-tested to confirm clarity
of questions.
The network cabinets buyers were categorized into three; 46% were industrial buyers who
used the network cabinets in their own organizations network, 40% were contractors who
installed the cabinets for their clients as part of a project, while 14% were traders who resold
the network cabinets without any reprocessing.
An operational definition of factors gathered from the literature review on the purchase
criteria was used. The factors were grouped as place (supplier), product, price, buying center
and other influences. This research revealed that all companies that buy network cabinets
consider a purchase criterion. The network cabinet buyers consider the factors in each group
to different extents. The levels of consideration were large, moderate or small extent. The
product related factors were consistently considered to a large extent, while the buying centre
factors, the layout and atmosphere of the suppliers firm were considered to only a low extent.
The price of the cabinet was given a high consideration in the purchase criteria. The relative
importance of some factors in the purchase criteria differed between the traders, contractors
and industrial users. These differences could be attributed to the varied uses of the cabinets
and circumstances under which each category normally operates.
The study revealed that many buyers consider quality and price as the strongest influencing
factor in the choice of the place to buy cabinets from. It also showed that the quality of the
PTL cabinets is one major factor the majority of the buyers appreciated most, and would like
it maintained. However, many buyers stated that lower prices would be the main reason to
prefer other suppliers' cabinets to Power Technics cabinets. They cited wrong specifications
and delayed delivery as the main cause of dissatisfaction with the cabinets already purchased
this far, and suggested structural design and delivery as major areas that should be improved.
As a future recommendation, the researcher suggest that a study could be carried out to
establish the extent to which buyers in other towns, and those who frequently purchase
network cabinets from other suppliers, consider as essential factors in their purchase criteria.
An additional study could be conducted to determine the customer value analysis for Power
Technics Ltd cabinets against those from other suppliers. | en |
