DETERMINANTS OF CONSUMER CHOICE IN THE UPTAKE OF CONTAINER FREIGHT STATION (CFS) PRODUCTS IN KENYA: A CASE STUDY OF SELECTED CONTAINER FREIGHT STATIONS IN MOMBASA

ABSTRACT Maritime freight volumes fluctuate with changes in consumer demand and global economies. In response to increasing container volumes, congestion and capacity constraints; ports have embarked on implementation of inland container depots (ICDs) as capacity enhancement strategy. Determination of optimal pricing strategies and demand intensification has become the biggest challenges for privately owned Container Freight Stations. This paper analyzes the greater influences of consumer demand in this industry marred by intense competition and increased regulation from industry stakeholders. The research evaluates factors which determine competitiveness of each CFs with a view to understanding the drivers to consumer choice. It also reviews the nature, characteristics and operational modalities for driving consumer demand and highlight strategies that will help improve operational efficiency, drive demand and increase company profit margins. The study aims at establishing the relationship between choice of a particular CFS to its physical location, the effects of marketing strategies used by various firms, the regulatory framework affecting the operations of CFSs and the products characteristics. A descriptive research design approach was used to describe phenomena under study. Data analysis was done through S.P.S.S program through approaches such as means, modes and correlation techniques to show how each independent variable affect the dependent variable. The findings are presented through percentages, pie charts, tables and graphs