Willingness to Pay for Imported Versus Locally Made Furniture in Dar Es Salaam and Arusha Regions, Tanzania

Abstract

There is little understanding of consumers’ willingness to pay for imported versus locally-made furniture. This
study assessed the amount of money and factors influencing consumers’ willingness to pay for imported and locally made
furniture in Dar es Salaam and Arusha cities in Tanzania. A cross-sectional design was employed, and data were collected from
furniture consumers in the study area. A multistage sampling method was used to sample a total of 134 furniture consumers out
of which 87 and 47 were for Dar es salaam and Arusha, respectively. Descriptive statistics as well as ordinary least squares
(OLS) regression analysis was used to analyze data. The study found significant differences in the level of willingness to pay
for furniture items (t = -10.76; at p<0.05). Imported furniture seemed to be far ahead of the locally made one. The mean
amount was TZS 858 475 and TZS 1 174 517 for locally made and imported furniture, respectively. The amount that
consumers are ready to pay for imported furniture is a bit higher in Dar es Salaam than in Arusha. The major differences in
consumers’ willingness to pay for imported furniture against locally made furniture were due to the quality, design and brand of the
furniture products. It is concluded that consumers are willing to pay more for imported furniture because of the quality and
design. Small-scale furniture manufacturers need to come out with innovative designs and improve finishing and quality to
respond to changes in consumer willingness to pay.