MAKERERE UNIVERSITY

MAKERERE UNIVERSITY BUSINESS SCHOOL

THE IMPACT CORONA VIRUS ON IMPORT PERFORMANCE A CASE STUDY OF
BUSINESS MEN IN NAKAWA DIVISION

NJAGALA NAJIB

REG 17/U/16571/EVE

SUPERVISED BY

MR…………………………….

A RESEARCH REPORT SUBMITTED TO MAKERERE UNIVERSITY BUSINESS

SCHOOL IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE

AWARD OF A BACHELORS DEGREE OF INTERNATIONAL

BUSINESS OF MAKERERE UNIVERSITY

Dec, 2020
 DECLARATION

I NJAGALA NAJIB hereby declare that this report titled “the impact corona virus on import
performance a case study of SME’s in Nakawa Division” is my original work and it has never
been submitted to any University or Institution of Higher Learning for any award.

Signature ………………………………. Date………/…………/………….

NJAGALA NAJIB
17/U/16571/EVE
 APPROVAL

This report by NJAGALA NAJIB has been compiled under my supervision and it’s now ready
for submission.

Signature ………………………………. Date………/…………/………….

MR….…………………….

(SUPERVISOR)
 DEDICATION

I dedicate this report to my beloved parents who struggled so much since I joined school up to
where I have reached. May God reward them!
 ACKNOWLEDGEMENT

My sincere thanks go to the Almighty God for his mercy upon me, protection and provisions to
enable me accomplish this work.

I also extend my sincere gratitude to my supervisor ……………… whose guidance and

assistance enabled me to successfully go through this study.

I also thank the management and the staff of Makerere University of Business School for the
knowledge and skills given to me.

I would like in addition to acknowledge the Administration and staff of several SME’s I
contacted during my study in Nakawa for their willingness to participate in the study.

My gratitude too goes to my parents for their dedication and commitment towards my education
up to the university.

Finally, I acknowledge the assistance rendered to me by whoever I have not been able to mention
by Name. Your support, advice and encouragement is highly appreciated
List of Acronyms

CARES……………………..Coronavirus Aid, Relief, and Economic Security

COVID-19…………….……Coronavirus Disease 2019

EPRC ………………………Economic Policy Research Centre

FDI ………………….…….Foreign Direct Investment

IMF…………………………International Monetary Fund

MoFPED…………………...Ministry of Finance Planning and Economic Development.

MSMEs …………………….Micro, Small, and Medium Enterprises

WHO ……………………... World Health Organization

GDP……………………….. Gross Domestic Product

GoU………………………...Government of Uganda

UBOS……………………….Uganda Bureau of Statistics

UIA…………………………Uganda Investment Authority

UMA ……………………….Uganda Manufacturers Association

 Abstract

In addition to its impact on public health, coronavirus disease 2019 (COVID-19) has caused a
major economic shock. In this report, the researcher explored the impact of COVID-19 on the
small business landscape in the Nakawa division Kampala district, focusing on three questions.

To explore the impact of coronavirus disease 2019 (COVID-19) on small businesses, we

conducted a survey of more than 5,800 small businesses between March 28 and April 4, 2020.
Several themes emerged. First, mass layoffs and closures had already occurred—just a few
weeks into the crisis. Second, the risk of closure was negatively associated with the expected
length of the crisis. Moreover, businesses had widely varying beliefs about the likely duration of
COVID-related disruptions. Third, many small businesses are financially fragile: The median
business with more than $10,000 in monthly expenses had only about 2 week of cash on hand at
the time of the survey. Fourth, the majority of businesses planned to seek funding through the
Coronavirus Aid, Relief, and Economic Security (CARES) Act. However, many anticipated
problems with accessing the program, such as bureaucratic hassles and difficulties establishing
eligibility. Using experimental variation, we also assess take-up rates and business resilience
effects for loans relative to grants-based programs.

The results suggest that the pandemic had already caused massive dislocation among small
businesses just several weeks after its onset and prior to the availability of government aid
through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Across the full
sample, 43% of businesses had temporarily closed, and nearly all of these closures were due to
COVID-19. Respondents that had temporarily closed largely pointed to reductions in demand
and employee health concerns as the reasons for closure, with disruptions in the supply chain
being less of a factor. On average, the businesses reported having reduced their active
employment by 39% since January.

Our results also highlight the financial fragility of many businesses. The median firm with
monthly expenses over $10,000 had only enough cash on hand to last roughly 2 wk. Three-
quarters of respondents only had enough cash on hand to last 2 more or less. Not surprisingly,
firms with more cash on hand were more optimistic that they would remain open by the end of
the year.
 Table of contents

.................................................................................................................................................................... 1
DECLARATION..............................................................................................................................................2
APPROVAL...................................................................................................................................................3
DEDICATION................................................................................................................................................4
ACKNOWLEDGEMENT.................................................................................................................................5
List of Acronyms..........................................................................................................................................6
Abstract.......................................................................................................................................................7
Table of contents.........................................................................................................................................9
List of tables..............................................................................................................................................11
No table of figures entries found...............................................................................................................11
List of figures.............................................................................................................................................12
CHAPTER ONE............................................................................................................................................13
INTRODUCTION.........................................................................................................................................13
1.0 Introduction...................................................................................................................................13
1.1 Background of the Study...............................................................................................................14
1.3 Purpose of the study......................................................................................................................16
1.4 Objectives of the Study..................................................................................................................17
1.5 Research Questions.......................................................................................................................17
1.6 Scope of the study.........................................................................................................................17
1.6.1 Conceptual scope.......................................................................................................................17
1.6.2 Geographical scope....................................................................................................................17
1.6.3 Time scope.................................................................................................................................17
1.7 Significance of the study................................................................................................................18
1.7 Structure of the report..................................................................................................................18
1.8 Conceptual framework..................................................................................................................19
CHAPTER TWO...........................................................................................................................................19
LITERATURE REVIEW..................................................................................................................................19
2.0 Introduction...................................................................................................................................19
2.1 Definition of key concepts.............................................................................................................19
2.1.2 Consumer Purchasing Decisions................................................................................................20
2.2 Effects of Covid-19 Pandemic on Businesses.................................................................................21
2.3 Impact of coronavirus (COVID-19) pandemic on Uganda’s businesses..........................................25
CHAPTER THREE........................................................................................................................................26
METHODOLOGY.........................................................................................................................................26
3.0 Introduction...................................................................................................................................26
3.1 Research design.............................................................................................................................27
3.2 Study population...........................................................................................................................27
3.3 Sampling design.............................................................................................................................27
3.3.1 Sampling Methods.....................................................................................................................27
3.3.2 Sample size................................................................................................................................27
3.3.3 Sampling procedure...................................................................................................................28
3.4 Data sources..................................................................................................................................28
3.4.1 Primary sources.........................................................................................................................28
3.5 Data collection tools......................................................................................................................28
3.5.1 Questionnaires...........................................................................................................................29
3.6 Data processing, analysis and presentation...................................................................................29
3.6.1 Data processing.........................................................................................................................29
3.6.2 Data analysis..............................................................................................................................29
3.6.3 Data presentation......................................................................................................................29
3.7 Data reliability and validity............................................................................................................29
3.7.1 Validity.......................................................................................................................................29
3.7.2 Reliability.......................................................................................................................................30
3.8 Limitations of the study.................................................................................................................30
3.10 Ethical considerations...................................................................................................................31
CHAPTER FOUR..........................................................................................................................................31
PRESENTATION, INTERPRETATION AND ANALYSIS OF FINDING................................................................31
4.0 Introduction...................................................................................................................................31
4.1 Questionnaire Response Rate........................................................................................................31
4.1 Social demographic characteristics................................................................................................32
4.1 Characteristics of respondents......................................................................................................32
4.1.1 Gender of Respondents in Percentages.....................................................................................32
4.1.2 Age Groups of Respondents in Percentages..............................................................................33
4.1.3 Education level of respondents in percentages.........................................................................33
4.1.4 Work Experience respondents...................................................................................................34
4.2 Different types of social media marketing used by SME’s Uganda................................................34
4.3 Factors that influence consumer buying behavior on social media at SME’s Uganda...................36
4.4 The relationship between social media on consumer buying decision process of SME’s Uganda. 37
CHAPTER FIVE:...........................................................................................................................................39
SUMMARY, CONCLUSION AND RECOMMENDATIONS..............................................................................39
5.0 Introduction...................................................................................................................................39
5.1 Summary of Findings.....................................................................................................................40
5.1.1 Types of social media marketing used by SME’s Uganda...........................................................40
5.1.2 Factors that influence consumer buying behavior on social media at SME’s Uganda...............40
5.1.3 Relationship between social media on consumer buying decision process of SME’s................40
5.2 Conclusion.....................................................................................................................................41
5.3 Recommendations.........................................................................................................................41
5.6 Areas for Future Research.............................................................................................................43
APPENDIX 1: QUESTIONNAIRE...................................................................................................................48
Section B: Factors that influence consumer buying behavior on social media at SME’s Uganda..........50
Where; 1-strongly agree. 2-Agree. 3 - Neutral. 4-Disagree 5-strongly disagree....................................50
Section C: Relationship between social media on consumer buying decision process..........................50
Respond by using this scale of 1-5.........................................................................................................50
Appendix II Morgan’s table for sample size..........................................................................................51
 List of figures

Figure 1:Conceptual framework................................................................................................................19

 List of figures

CHAPTER ONE
 INTRODUCTION

1.0 Introduction

This chapter represents the background of the study, problem statement, purpose of the
study,

1.1 Background of the Study

Knowledge of the devastating impact of Covid-19 and its relatively quick mode of
transmission within the population prompted the Ugandan government to take serious
mitigation measures, even before registering a single case in the country (EPRC ,2020).
These initial measures were announced on the 18 March 2020, and included closure of all
primary and secondary schools, universities and other institutions of learning, suspension
of religious gatherings across the country, and the banning of public rallies and cultural
meetings. They also included a travel ban for Ugandans to high-risk countries and strict
quarantine measures for all returning Ugandans at their personal cost. These restrictions
not only affected businesses domestically but also affected import and export businesses
in unimaginable measures.

The restrictions on the movement of people, goods and services, and containment
measures such as factory closures in China, is creating a lot of uncertainty on the global
economy (Goobi, 2020). In today’s technology driven world, globalization has become
an avenue where business men can extend their marketing campaigns to a wider range of
consumers hence border closures impede business operations in greater magnitude.
Evans, Jamal and Foxall (2009) observe that the growth of trade has become important to
the indigenous channels and virtual communities have emerged that may never meet in
the physical world but nevertheless can affect behavior including purchasing decisions.

With China having shut down its manufacturing centers and closed its ports, there been a
resultant decrease in demand for Uganda’s commodities (Mutegeki, 2020). Importers in
China cancelled orders from Uganda due to port closures and as a result of reduction in
consumption in China (Goobi, 2020). This resulted in a reduction in the demand for the
country’s exports which were mainly agricultural commodities and natural resources.
 Businesses all over the world including here in Uganda are suffering from lost revenue
and disrupted supply chains due to many of China’s factory shutdowns (Mutegeki, 2020
). China’s rising importance in the global economy is not only related to its status as the
leading global manufacturer and exporter of consumer products, but it is also the main
supplier of intermediate inputs for many manufacturers elsewhere in the world
( Mutegeki, 2020 ).

Several SME’s have considered entire departments scaling down to meet the pandemic
effects of slow businesses operations (Belch & Belch, 2003). Also Mangold and Faulds
(2009) further argues that because of global competition, businesses have gone beyond
the traditional boundaries of purchasing, selling or other commercial transactions and
consequently, the boundaries of national markets have disappeared and become
indistinct. Therefore, the outbreak of the global pandemic has become very fundamental
in outlining a new way of business operations not only in the country alone but even for
importers and exporters. However, more recently, concern has been raised over the
influences of the pandemic on consumption habits and its possible influence in the
advancement of communication and marketing strategies (Belch & Belch, 2003).

In order for organizations such as SME’s Uganda to be more competitive it is important

to understand how young online consumers perceive the factors that influence their
attitudes, as this determines social media marketing communications content, and also
assist in improving the effectiveness of online strategies of various social media platform
other than use of face book only in order to influence a positive buying behavior.

Nakawa being an area with a number of SME’s has also faced these challenges in great
folds and has not been immune to the effects of the pandemic. This has been witnesses in
reduced output due to less supply of some capital goods and other inputs into
manufacturing.

1.2 Problem statement

Beyond the public health impacts of regional or global emerging and endemic infectious
disease events lay wider socioeconomic consequences that are often considered in risk or
impact on import performance (World Bank, 2014). Last year in December 2019 and
 before, importers in Uganda confidently ordered for goods and raw materials from China
for the production of goods for some clients. Under normal circumstances, it would take
about a month for a consignment to dock at Mombasa and a few days on transit to
Kampala. (Kikabi, 2020) Two months later after the brake up of Covid 19 (corona virus)
in china, no goods nor materials have been delivered because Asia (China), Europe and
the Middle East is grappling with the deadly coronavirus. As China struggles to cope
with this health crisis, importers in Kampala are not certain of when their products will
eventually be shipped to Uganda since Imports from China fell in January 2020, forcing
through a drop of Shs6b in Uganda’s import bill from the world’s second largest
economy. This is a breakaway from decades of a growing import bill from China, mainly
supplemented by other parts of Asia and the Middle East.
According to details released by the central bank, (2020) Uganda’s trade with leading
imports source, China, stood at $108.14m (Shs400b) in January 2020 the month under
review from $109.82m (Shs406b) in December 2019. The drop is expected to worsen due
to the threat of Corona virus that is buffeting global markets and trade. Imports from
other regions such as Europe, and the rest of Africa, also registered declines. In the period
under review, Uganda’s import bill from Europe stood at $41.7m (Shs154b) down from
$44.8m (Shs165b) in December. 2019. (Nakaweesi, 2020). According to the Bank of
Uganda report (2020), in January Uganda imports from the Middle East stood at $107m
(Shs395b) up from $89m (Shs329b) in December while imports from Comesa stood at
$98m (Shs362b) from $84m (Shs310b) in the period under review. Without proper
control of this infectious disease (Corona virus) importers in Uganda are expected to go
out of business therefore there is a need to study the impact corona virus on import
performance with a case study on Uganda Business Men so as to find the alternative
solution in increasing the imports performance.

1.3 Purpose of the study

The main aim of the study is to establish the impacts of Covid-19 on the import
performance on SME’s In Nakawa.

1.4 Objectives of the Study

 i. To establish factors that influence import business operations in Nakawa
ii. To identify the relationship between Covid-19 and import business performance
iii. To establish the coping mechanisms of some SMEs in the Corona Pandemic period

1.5 Research Questions.

i. Which are the different types of import business common in Nakawa?

ii. What is the relationship between imports and the pandemic?
iii. How are Importing businesses adjusting to the economic disruptions resulting from
COVID-19 in Nakawa?

1.6 Scope of the study

1.6.1 Conceptual scope

The study concentrated on establishing the impact of Covid-19 on the business in

Nakawa division Kamapala district

1.6.2 Geographical scope

This research was carried out in Nakawa Divison at various import business the division
majorly manufacturing

1.6.3 Time scope

The study was conducted between March 28 and November 2020. The timing of the
study allowed the understanding and expectations of business owners at a critical point in
time when both the progression of COVID-19 and the government’s response were quite
uncertain

1.7 Significance of the study

i. The research acts as a valuable tool for academicians, institutions and other individuals
who would want to learn more about the impact of any pandemic on business operations.
ii. The findings of the research can assist Ugandan businesses dealing in imports to know
which avenues to take when any other pandemic strikes again.
 iii. The study can improve the researcher’s scope of understanding of the COVID-19 Global
pandemic.
iv. The research can also enable the researcher be awarded a bachelor’s degree in business
international business.

1.7 Structure of the report

Chapter one: Background

This chapter contains the back ground of the study, statement of the problem, purpose of
the study, objective of the study, research questions, scope of the study, significance of
the study as well as the conceptual frame work.
Chapter two; Literature review
This contains the review of the relevant literature that has been advance by different
authors in line with the topic under study.
Chapter three: Methodology
This chapter involves the description of how the study will be conducted that is the
research design, sampling design, population study, Sampling techniques, sources of
data, data collection techniques, data processing and analysis and limitations of the study.
Chapter Four:
Presentation, Analysis and Interpretations of Findings, This present the presentation,
analysis and interpretation of findings from the field study. The tools to be used for
analysis include frequency distribution tables and percentages.

Chapter five:
This involves the introduction, summary of findings, conclusion and recommendations.
1.8 Conceptual framework.

Independent variable Dependent Variable

COVID PANDEMIC IMPORT PERFORMANCE

Supply chain
Low imports and exports
Increased lead time for some
Restricted Mobility
god
Less sales
Information Factors
Low disposable income
Design Factors
Fear
Psychological Factors
Increased deaths
Cultural Factors:
Reduced imports

Figure 1:Conceptual framework

CHAPTER TWO
 LITERATURE REVIEW

2.0 Introduction

This chapter reviews the existing literature put forward by different scholars on social
media on consumer buying decision process.

2.1 Definition of key concepts

2.1.1 Consumer Buyer Behavior
Consumer Buyer Behavior: “the buying behavior of final consumers; individuals who
buy goods, and services for personal consumption. All of these final consumers combine
to make up the consumer market” (Armstrong & Kotler, 2003).

2.1.2 Consumer Purchasing Decisions

Consumer Purchasing Decisions: the researcher defines the consumer purchasing

decisions as the decisions made about purchasing either products or services from a pet
retailer. “Consumer purchasing decision process intervenes between the market strategy
and the outcomes. The firm can succeed only if consumers see a need that its product can
solve, become aware of the products and its capabilities, decide that it is the best
available solution, proceed to buy it, and become satisfied with the result of the purchase”
(Hawkins, Best, & Coney, 2001, p. 22).

Consumers today are progressively utilizing technology and particularly Social Media as
an effective tool in their online shopping process. This process can be defined as is an
electronic process that allows consumers to deal with business people and meet their
purchases' needs. Social Media have played important role in spreading this phenomenon
faster (Hennig-Thurau et al., 2010).
Nowadays, consumers are playing a significant role on the marketplace phase. Simply,
they can be defined as actors on the marketplace phase or individuals who purchase or
consume products and services either online or offline. One of the variables that have
been reported as significant variables influencing consumers is demographic variables.
For example, the number of male and female users has dramatically increased during the
last years (Park and Jun, 2003). In term of online segmentation, there is a slight
 difference. This is because there are two main online segments we can refer to which are
"Online Insiders" and "Social Clickers" (Riegner, 2007).

The World Health Organization (WHO) declared COVID-19 a global pandemic on the
11th March 2020. Given its geographical spread, the pandemic is projected to have
devastating effects on the global economy. According to the IMF global economic
Outlook, the world economy is projected to contract sharply by 3% in 2020 as a result of
the pandemic.2 In the same vein, the Sub-Saharan African economy is expected to
contract by 1.6%. UNECA (2020) shows that African businesses are being severely
impacted by the COVID-19 crisis. Four out of five business in Africa are significantly
affected by the current COVID-19 crisis, rating the effect as highly severe or severe.3
The proportion of severity is relatively uniform across the size of enterprises and the
sector of business.

2.2 Effects of Covid-19 Pandemic on Businesses

Importing business adjusting in the Covid-19-pandemic adjusting to the economic

disruptions resulting from COVID-19

There’s has been a global decline in business operations particularly sharp in the Mid-
Atlantic region of United States (which includes New York City), where 54% of firms
were closed and employment was down by 47% ( ). Impacts also varied across
industries, with retail, arts and entertainment, personal services, food services, and
hospitality businesses all reporting employment declines exceeding 50%; in contrast,
finance, professional services, and real estate-related businesses experienced less
disruption, as these industries were better able to move to remote production.

As the world grapples with the coronavirus, public health of course must be the first level
of concern, with focus being on preventative and containment measures as well as
equipping and preparing the global health care systems’ capacity to confront the
pandemic. However, the negative impact of the virus on the global economy is increasing
every day ( ). The restrictions on the movement of people, goods and services, and
containment measures such as factory closures in China, is creating a lot of uncertainty
on the global economy especially sub-Saharan Africa which views china as its factory
( Kamulegeya , 2020).

Global economies like China which is the second biggest economy in the world any
disruption of China’s manufacturing output and supply of intermediate inputs has had
negative effect on the productive capacity of the global economy (Kamulegeya, 2020).
The closure of factories in China is being felt around the world, reflecting the key and
rising role China has in global supply chains, travel and commodity markets. Businesses
all over the world including are suffering from lost revenue and disrupted supply chains
due to overseas factory shutdowns.

Uganda’s like any other third world country and worse still landlocked, its economic
performance is influenced by developments in the global economic environment.
Therefore, a slowdown in the global economy as a result of coronavirus has had a
negative impact on the country’s economy. This impact has been evidenced in many
ways.

Supply chain disruptions

The west and china have been is Uganda’s major trading partner, and the effects of
coronavirus are already being felt in Uganda. With China having shut down most of its
manufacturing centers and closed its ports, there has been a resultant decrease in demand
for Uganda’s commodities. Importers especially in China canceled orders from Uganda
due to port closures and as a result of reduction in consumption in China. This resulted in
a reduction in the demand for the country’s exports which are mainly agricultural
commodities and natural resources ().

According to Goobi (2020), the impact of coronavirus has also been witnessed by the
manufacturing sector where by the time factories closed in china resulted in supply chain
disruptions for manufacturers in Uganda, with delays, raw material shortages, increased
costs and reduced orders. With the widespread nature of the virus, it is difficult to
envisage how supply chains could be adjusted rapidly to meet demands
(Mutegeki,2020).
The disruption in global supply rom imports as a result of factory closures in China and
other countries which export extensively to Uganda has had a negative impact on small
and medium enterprises in Uganda ( ). These are the enterprises that traded mainly with
the outside world and were in the trade and retail sector .This sector constitutes 13% of
Uganda’s economy. Nearly 20% of all the goods traded in this sector are imported from
China. The main imports from China are textiles and apparels, electronics, building and
construction material, pharmaceuticals, heavy machinery, raw materials, iron and steel, as
well as household consumer goods.

China which is the second largest recipient of foreign direct investment (FDI) in the
world. There has been a significant decline in FDI inflows into China as a result of the
coronavirus (Mutegeki, 2020) . A decline in FDI into China together with lost revenue,
lower profits which will translate into lower earnings has inturn affected China’s ability
to continue making huge investments elsewhere in the world ( ). For example, in the last
financial year, China topped the list of planned investments in Uganda. According to the
data from the Uganda Investment Authority (UIA) 45% percent of all the planned FDI
into Uganda was to come from China (Goobi, 2020). The investments were mainly in
capital infrastructure projects and manufacturing. This means that we should expect a
slowdown in FDI as a result of the coronavirus.

Economic performance

There also has been a decline in the foreign currency inflows and remittances from
diaspora as a result of the disruption in the business and economic activities in many of
the countries where the majority of Uganda diaspora live and work.

Mutegeki (2020), urges that Uganda’s economic performance is influenced by

developments in the global economic environment. Therefore, a slowdown in the global
economy as a result of coronavirus has had a negative impact on Uganda’s economy.

A recent rapid survey of businesses by the Economic Policy Research Centre (EPRC) in
Uganda revealed that three-quarters of the surveyed businesses have laid off employees
due to the problems presented by COVID-19 and subsequent containment measures
(EPRC , 2020). The results suggested that lockdown measures had reduced business
activities more than half. In terms of sectors, the study found out that businesses in
agriculture had experienced the largest constraints in access to both inputs and markets
for outputs due to control measures such as transport restrictions, quarantine, social
distancing, and bans on weekly markets and closure of the airport (EPRC, 2020).

Small scale businesses experienced a larger decline in businesses activity compared to

medium and large firms an unsurprising finding since most of the country’s micro and
small businesses halted operations due to their inability to implement preventative health
measures such as provision of on-site lodging for employees, and sanitizers and
handwashing equipment for customers.

High business operation costs

The prevent measures against Covid-19 resulted in an increase in operating expenses for
businesses that continued to stay open ( ). Consequently, a majority of micro and small
businesses, particularly in the service sector. On the other hand, the majority of the
medium and large firms didn’t foresee closure.

Lessened production and productivity, reduced supply of inputs, and credit and liquidity
constraints have exacerbated preexisting credit and liquidity constraints among micro,
small, and medium enterprises (MSMEs). Indeed, 69% percent of businesses surveyed
reported a decline in access to credit, with 34 percent experiencing severe decline (a more
than 50 percent decline in credit.

Notably, a relatively high percentage of small and medium businesses in the services
sector in particular reported a decline in access to credit and financial liquidity compared
to large businesses. This trend may be because lending institutions already consider them
highly risky, and those businesses are more likely to become insolvent if COVID-19
persists and restrictions are maintained. On a sectoral level, high percentages of import
businesses especially in manufacturing and services reported a decline in ability to repay
outstanding debts due to the outbreak of COVID-19.

Our analysis also shows that the majority of small and medium businesses, particularly in
manufacturing, have experienced a severe decline in access to inputs, alluding to the risk
 of overreliance on international rather than regional or domestic supply chains for raw
materials and intermediates. This finding calls for firms, especially MSMEs, to explore
the possibility of regional or domestic value and supply chains to stabilize their sources
of inputs, while also saving on scarce foreign exchange.

Specifically, nine out of ten businesses report experiencing an increase in operating

expenses due to preventive measures instituted by government to curb the spread of the
virus. Agriculture enterprises have been worst hit due to challenges of accessing inputs
arising from transport restrictions and the ban on weekly markets. In addition, prices of
agricultural outputs have declined due to lost demand and the shift from consumption of
fresh agricultural produce to dry rations.

2.3 Impact of coronavirus (COVID-19) pandemic on Uganda’s businesses

This could be largely attributed to COVID-19 containment measures such as transport

restrictions, quarantine, social distancing and ban on weekly markets, which have
hindered farmers’ access to input and output markets, thus undermining their productive
capacities (Mutegeki, 2020).6 Micro and small businesses reported experiencing a larger
decline in businesses activity compared to medium and large firms. This is not surprising
since most of the micro and small businesses halted operation due to inability to
implement Standard Operating Procedures (SOPs) such as the provision of on-site
accommodation for employees. In addition, employees of SMEs use public transport—
which was banned on 25th March 2020.

In terms of regions, businesses from the western and northern region report experiencing
the largest decline in business activity, while the central region experienced the least
decline in business activity followed by Kampala. Specifically, 26% of businesses in
central region and 16% in Kampala reported an initial increase in business activity, most
of which are in trade, and industry sub sectors.

services have become slightly expensive. Overall, 55% of the businesses reported to have
experienced moderate increase in the price of inputs. Its notable that majority of the
businesses in agriculture (43%) reported having experienced a decline in the price of
input during the period. This could have been as a result of a fall in demand, which
coincided with a buildup of inventory. On the other hand, inputs of manufacturing
businesses have become relatively expensive largely due to disruption in the global
supply chains, owing to closure of factories abroad (Goobi, 2020).

It also should be noted that the pandemic has not affected prices of Inputs in the northern
region, but drove up prices in the western region, particularly for businesses in food and
recreation and mechanical services ( ). Kampala and central region have only
experienced an increase in the price of inputs, particularly for mechanical services and
industry for the case of Kampala, and trade and social services, such as health, for central
region (). On the other hand, majority of the businesses in the eastern region reported a
decline in input price, particular for agriculture, industry, and mechanical services (
). The index of input price changes shows that price of inputs increased by close to one-
third (31%), with small and medium businesses experiencing higher increment compared
to micro and large businesses. Furthermore, businesses in the western region have
experienced the highest increment in input prices followed by those in central region.

CHAPTER THREE

METHODOLOGY
3.0 Introduction

This chapter describes the research design, study population, the sampling design,
sources of data and the various data collection methods and analysis that will be used in
the research. The limitations of the study were also presented.

3.1 Research design

According to Mugenda & Mugenda, (2003), “Research design refers to the way the
research is organized/developed i.e. the technique used to carry out the research”. A
across sectional research design was used where quantitative methods of data collection
and analysis were used. The design was selected because it is a method of investigation in
which data was got from selected samples whose response representation respectively
gave a clue to the view of the population. This option was made because it is relatively
convenient in expressing the people opinions in a coherent manner.

3.2 Study population

According to Kothari (2003), population refers to the, “entire group of individuals, events
or objects that have a common observable characteristic. The study population was
comprised of 150 representatives of SME’s Uganda including managers, top managers
and employees of SME’s Uganda.

3.3 Sampling design

3.3.1 Sampling Methods

Sampling is the process of selecting items representative of the population as a whole for
research study. This study employed both simple random sampling and purposive
sampling methods to choose a population of members from SME’s Uganda. The study
considered sampling because it is difficult to get the information from the entire
organization as a whole taking on all administrators, managers and employees.
Then simple random sampling was used to get the specific members to be interviewed
from each stratum until the required population was achieved.
 Purposive sampling was used to get population members from SME’s Uganda who gave
information concerning sales trends and how they have been affected by social media
marketing.

3.3.2 Sample size

The study population of about 150 people was considered which comprised SME’s
Uganda staff from different departments in the company. The krejcie and Morgan
formula for estimating the sample size was used to determine the needed sample size that
was representative enough. From the total population of 150 members, a sample of 108
respondents was picked to get a general view with as little bias as possible using the
Morgan’s table for sample size attached on Appendix II.

3.3.3 Sampling procedure

First, the required population was established, that is SME’s Uganda managers and staff
then the sample size was determined using the Krejcie and Morgan formula. Once the
sample size was determined, stratified sampling was used to classify the population in
different strata of age then simple random sampling was used to get the needed
respondents. Purposive sampling was used to select SME’s Uganda staff. Eventually,
questionnaires were administered and an interview was conducted to get the desired data
from the selected respondents.

3.4 Data sources

There are two sources of data and they include primary sources and secondary sources.
The primary sources include data that has never existed while secondary sources refer to
data already in existence.

3.4.1 Primary sources

Primary data is original data collected by the researcher for the research problem at hand
(Yin, 2003). Since not all information was available through secondary sources, it was
necessary to venture into primary data sources to get the opinions of selected members of
the population. Primary data was obtained through personal interviews and administered
questionnaires.
3.5 Data collection tools
Data collection tools that were used are presented below.

3.5.1 Questionnaires

A questionnaire refers to a set of questions arranged logically and systematically to

achieve specific research objectives; some questions were open ended while others were
closed ended (Sekaran, 2003). The researcher used close end structured questionnaires as
the main data collection method. This instrument was administered to respondents to
solicit for information from within the organization.

3.6 Data processing, analysis and presentation

After collecting data, it was processed, analyzed and presented to come up with the
necessary results

3.6.1 Data processing

Data processing involves editing, coding, classification and tabulation. After data
collection, the data was edited using SPSS to eliminate errors. Then it was coded to
reduce the data into fewer categories this was done using numbers and other symbols in
frequency distribution tables, bar graphs and pie charts. After, classification of the data
was done; this is the arrangement of the data in groups or classes on the basis of common
characteristics. Tabulation means that the data was transferred to tables to make
interpretation of data easy.

3.6.2 Data analysis

The data was then analyzed using SPSS was used to get the relationship between Social
media marketing and consumers buying behavior.

3.6.3 Data presentation

The analyzed data was then presented through tables and pie charts.

3.7 Data reliability and validity

3.7.1 Validity

The researcher ensured content validity of the said instrument by ensuring that questions
or items in it conform to the study. Items in the instruments were subjected to content
validity by the supervisor. The researcher computed the content validity index. The
instrument was revised until the content validity index was at least 0.7. This was because
0.7 is the least content validity index recommended in survey studies (Amin, 2005).
Content validity index was computed

Content Validity Index (CVI) = Number of judges declared item valid

Total number of judges

3.7.2 Reliability
Reliability of the instrument on multi-item variables (i.e. Social Media Marketing and
Consumer Buying Decision) was tested via the Cronbach Alpha Method provided by
Statistical Package for Social Science, SPSS (Foster, 1998 cited in Bakkabulindi, 2008).

Table 1: Validity and Reliability Results

Variables Content Cronbach's
Validity Index Alpha
Types of Social Media Marketing 0.759
0.750
Factors 0.798
0.875
Relationship 0.826
0.860

The content validity index and Cronbach’s alpha coefficients above the acceptable
threshold of 0.70 for social sciences suggesting that the instrument was valid and reliable.

3.8 Limitations of the study

One of the biggest challenges the researcher went through is getting accurate information,
some of the respondents gave false information and getting information from the
organization was very difficult.

Another limitation the respondent encountered is that the company under study was not
willing to give out some information; in addition, getting the information on time was a
problem this was a big obstacle the researcher.
3.10 Ethical considerations
The principles of research ethics tasks the researchers to uphold the values and moral
standards, act in a professional manner, protection and respect for the participants welfare
(Kvale & Brinkmann, 2009). For a quantitative research like this one where participants
might even share sensitive information (Creswell, 2009), ethical consideration is vital.
The researcher thus maintained a high level of respect for persons and communities and
confidentiality.

CHAPTER FOUR

PRESENTATION, INTERPRETATION AND ANALYSIS OF FINDING

4.0 Introduction

This chapter presents the research findings and their interpretations. Distribution tables
and percentages were used to present the findings. The findings were presented in
relation to the research objectives.

4.1 Questionnaire Response Rate

 The study response rate was 72% as shown in table 1 below majority of the completely
filled questionnaires were by the respondents under the conventional study mode; only
42% of the completely filled questionnaires were by the employees of SME’s.
Table 2: Questionnaire Return Rate
Location Response Rate

Frequency Percent Valid Percent

Top managers 8 7.4 8
Mangers 24 22.2 22

employees 76 70.4 70

Total 108 100.0 100.0

4.1 Social demographic characteristics

The objectives of the study were; to identify the different types of social media marketing
used by SME’s Uganda, to establish factors that influence consumer buying behavior on
social media at SME’s Uganda, to find out the relationship between social media on
consumer buying decision process of SME’s Uganda. The research findings for each of
these objectives are presented and discussed below;

4.1 Characteristics of respondents

This section shows the percentages of the various specifics of the respondents that were
used and contacted by the researcher during the process of the study.

4.1.1 Gender of Respondents in Percentages

 Table 3: Gender of respondents
Gender Number Percentage (%)

Male 70 64.8

Female 38 35.1

TOTAL 108 100%

Source: Primary Data, (2020)

The results in the table above highlights the distribution of the respondents across gender
lines. It shows the population of the respective respondents who participated in answering
the research questions. The findings from table 2 above show that 64.8% were Males
respondent’s whiles as the remaining 35.1% were female respondents. This shows that
study was not gender balanced.

4.1.2 Age Groups of Respondents in Percentages

Table 4: Age bracket of respondents

Age Group Frequency Percent
18-20 0 0
20-25 40 37
26-30 60 55.5
+30 8 7.4
Total 108 100.0
Source: Primary Data, (2019)
From the table above, it shows that most of the respondents representing 55.5% were
between 26 - 30 years followed by those with 20-25 with 37% and those with 30+ who
had 7.4%. This shows that the research had respondents of relatively young age.

4.1.3 Education level of respondents in percentages

 Table 5: Level of education of respondents
Level Frequency Percent
Certificate 8 7.6
Diploma 20 18.5
Bachelor’s 65 60.1
Master’s Degree 15 13.8
Total 108 100.0
Source: Primary Data, (2019)
According to table 3 above, it is seen that 60.1% of the respondents were educated up to
Bachelors level, followed by those with 18.5% with Diplomas and lastly 13.8% with
master’s degree this means that the researcher considered the level of education when
selecting respondents to participate in the survey. This was a key factor given the fact that
the survey was to be administered through the questionnaires besides obtaining quality
data.

4.1.4 Work Experience respondents

The respondents were asked to state their work experience and below are the responses;
Table 6: Work experience of respondents
Work experience Number Percent
Less than a year 5 4.6
3-4years 60 55.5
4-6 years 28 25.9
Over 6 years 15 13.8
Total 108 100.0

Source: Primary Data, (2019)

Table 4 above clearly indicates that majority of the consumers of the SME’s Uganda at
55.5% were between 3-4years, followed by those with 4-6 years the 25.9% and 13.8%
who were over 6 years and lasts 4.6% were less than a year. This implies that majority of
the respondents had not stayed at the organization for a long time.

4.2 Different types of social media marketing used by SME’s Uganda

The objective one of the research was to identify the different types of social media
marketing used by SME’s Uganda. Different methods of social media marketing were
assessed using 8 items related to constructs and table below shows the response (%)
from each respondent in respect with the items and also shows the average index.
 Table 7: Descriptive summary of items on social media marketing used at SME’s

Responses (%)
Items SA A N SD D
We use Facebook to share information about N 23.9 57.5 12.4 2.7 3.5
SME’s products and services
We use twitter to communicate to our clients 108
19.5 50.4 20.4 2.7 7.1
about services and product updates
YouTube videos help us to distribute 108 12.4 30.1 30.1 4.4 23
multimedia messages to clients
Instagram pictures has been of importance in 108
15.9 39.8 30.1 3.5 10.6
changing our customer buying behaviour
Linkedin has helped our staff members to 108
22.1 31.9 33.6 0.9 11.5
network with our clients
Positive comments about our brand on social 108
22 58 10 4 6
medial influences the purchasing choice on
Facebook
Myspace has been used to market our 108
12 33.4 22.5 20.7 11.4
products and services
we trust views and comments about our 108
21.5 48.5 20.4 2.5 7.1
brands from other people on Facebook

Average index of items on social media marketing =3.6

Note. SA. Represents Strongly Agree, A. Agree, N. Neutral, D. Disagree, SD. Strongly
Disagree

A mean estimate of 3.6 in the result according to table 4.3 shows a moderate level of
facebook marketing at SME’s Uganda limited. Facebook marketing was considered highly
in aspects like the role played by the social media platform (79%) followed by the way
the message is delivered and organized for a session (53%), the evaluation of the given
platform during and after the marketing (51%). It was then seen to be low in visual aspects
and timely deliveries of the messages to consumers (39%).
4.3 Factors that influence consumer buying behavior on social media at SME’s Uganda

The factors which influence consumer buying behaviours on social media at SME’s
was assessed using 8 items as shown in table 4.4, the response is in percentage per item
and shows the average index too.
Table 8: Descriptive summary of items on social media on consumer buying decision

Items N Responses (%)

SA A N SD D
Consumers will be willing to buy online if variety of 108 24.8 54.0 9.7 2.7 8.8
products and information are provided sufficiently
Usually consumers are affected by the design 108 22 58 10 9 1
characteristics of a Social media page.
Psychological Factors affect consumers' attitude 108 13 37 20 22 8
towards Social media buying
Consumers can be affected by other cultures in 108 8.8 44.2 34.5 0.0 12.4
choosing and making decisions about certain products
or services
The questioning and answering methods on social 108 14.2 36.3 31.0 1.8 16.8
media creates my development on problem solving.
Negative comments dissuade buyers from our brand 108 10.6 40.7 25.7 3.5 19.5

Positive reviews on social media promote our brand 108 11.5 27.4 23.0 10.6 27.4

Attitudes of consumers on social media influences the 108 13.3 38.1 26.5 5.3 16.8
way consumers buy our products
 Average index of factors influencing consumer buying behavior = 3.4

Note. SA. Represents Strongly Agree, A. Agree, N. Neutral, A. Agree, and SD. Strongly
Disagree

A mean estimate of 3.6 according to the results in table 4.4 shows a moderate level of
influence of social media on the influence consumer buying behavior on social media
at SME’s. Particularly buying behaviour was highest in aspects such as the way
consumers follow what is posted on social media (81%), the way consumers follow their
buying budgets (70%), how consumers prepare for buying well in advance (56%) and
how consumers organize purchasing and leisure time (54%). The least item was the
way how consumers find it appealing to watch the messages whenever they are
broadcasted on social media to study on regular basis (42%).

4.4 The relationship between social media on consumer buying decision process of
SME’s Uganda

The relationship between social media and buying decision of customers at SME’s
Uganda was assessed using 8 items related to constructs and this section gives the
average index, number of respondents per item and percentage frequencies of each
response made by all the 108 respondents for this study. This is discussed as seen in
the table 9.
Table 9: Descriptive summary of items on social media on consumer buying decision

Responses (%)
Items N
SA A N SD D

Social Media usage by both consumers and companies 108 56.6 33.6 1.8 4.4 3.5
seem to affect consumer behaviour.
Interacting with consumers on Social Media may result in 108 15.9 46.0 24.8 2.7 10.6
increasing potential consumers
Social Media has changed the way consumers buy in their 108 14 36 22 18 10
consumption
Consumers buy more after reading a positive comment on 108 22.3 33.7 20 10 10
social media
consumers buy less after reading a negative comment on 108 32.1 11.9 30 16 10
social media
Social media plays a final role in consumers decision to buy 108 20.4 43.4 22.1 3.5 10.6

108 33.6 49.6 11.5 1.8 3.5

Social Media appear to be influential on the consumers at
their Evaluation of Alternatives.
Consumers can get more information about products and 108 14.2 34.5 17.7 11.5 22.1
services by directly engaging with brands on Social Media.
Average index of social media on consumer buying decision = 3.8

Note. SA. Represents Strongly Agree, A. Agree, N. Neutral, D. Disagree, and SD.
Strongly Disagree

A mean estimate of 3.8 according to the results in table 4.5 shows a moderate level of
influence between the social media and the consumer buying decisions at SME’s Uganda
limited. The buying tendencies of consumers buying tendencies was seen highest in items
like how important promotions on social media (90%), using celebrities during
advertising this enables the consumers relate what want to obtain important information
about the products (83%), and wanting to win any offers at the time not (64%).
Frequency of the adverts was seen low in encouraging and influencing the buying
behaviours of the consumers (49%).

Table 10: Showing correlation between social media marketing and consumer decision
process

Variable Social Media Consumer Buying

Marketing Decision Process
Consumer Buying Pearson Correlation 1.000 0.721
Decision Process
consumer buying Pearson Correlation 0.721 1.000
decision process
 Source Primary data 2020

The results in table 20 show a correlation of 0.721 which indicates that the two variables
are strongly and positively correlated. This implies that rise in Social Media Marketing
can lead to raise in Consumer Buying Decision, all other factors constant. The findings
are consistent with evidence in the literature by Wheat and Dodd, (2009) that the two are
positively correlated.

CHAPTER FIVE:

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.0 Introduction

The chapter considers the findings of the study done with specific reference to the
objectives and research questions being used as units of analysis. Data was interpreted
and the results of the findings were correlated with both empirical and theoretical
literature available. The conclusion relates directly to the specific objectives/research
 questions. The recommendations were deduced from conclusion and discussion of the
findings.

5.1 Summary of Findings

The study sought to establish the effect of social media on consumer purchasing decision
process a case study of SME’s Uganda.
The specific objectives of the study were: to identify the different types of social media
marketing used by SME’s Uganda, to establish factors that influence consumer buying
behavior on social media at SME’s Uganda, to find out the relationship between social
media on consumer buying decision process of SME’s Uganda.

The study was a case study of the Social Media Marketing of SME’s Uganda where
employees and customers were targeted. This research relied on primary data which was
collected using a semi-structured questionnaire which contained open ended and close
ended questions. The findings of the study were arranged in their objectives as shown
below;

5.1.1 Types of social media marketing used by SME’s Uganda

Findings from chapter four revealed that SME’s Uganda uses Facebook, twitter and
YouTube mostly as the social media platforms for marketing its products and service
however at a small extent LinkedIn was used by staff members to network with their
clients and MySpace was not used.

5.1.2 Factors that influence consumer buying behavior on social media at SME’s Uganda

When finding the factors that influence consumer buying behavior on social media at
SME’s Uganda the findings reveled that Consumers will be willing to buy online if
variety of products and information are provided sufficiently and also there were
Psychological Factors affect consumers' attitude towards Social media buying which the
management of SME’s has to first understand in order to influence the consumers’
attitude towards Social media buying.

5.1.3 Relationship between social media on consumer buying decision process of SME’s
 Using the correlation analysis, the study established a significant positive relationship. It
showed a correlation of 0.721 which indicates that the two variables that is to say Social
Media Marketing and Consumer Buying Decision are strongly and positively correlated.
This implies that rise in Social Media Marketing can lead to rise in Consumer Buying
Decision, all other factors constant. The findings are consistent with evidence in the
literature by Wheat and Dodd, (2009) that the two are positively correlated.

5.2 Conclusion

From the research findings and the answers to the research questions, some conclusions
can be made about the study. We conclude that social media marketing as a positive
relationship on consumer buying decision process of SME’s Uganda.
The study findings indicate that there is a significant positive effect on products
awareness as a result of adopting various strategic social media factors namely: cost of
media usage, availability of network, business exposure and access to social media
information.
This concurs with the findings of Cheung (2008) who argues that more and more
consumers use social media plate forms tools such as online discussion forums, consumer
review sites, weblogs, and social network sites to exchange product information.
The study concluded that the adoption of social media marketing in SME’s Uganda had
significant impact on customer buying behaviour. This relationship if properly harnessed
could be used to ensure increased customer buying decision.

5.3 Recommendations

Some of the recommendations that can be made as results of the findings of this study
and the following are some of the recommendations.

a) Managers of the SME’s Uganda should employ social media monitoring tools to manage
social media adequately to cater for social media consumers. This will go a long way in
enhancing customers‟ access to information as indicated in the findings that reveal a very
strong relationship between access to social media information and products awareness.
b) The management of SME’s Uganda to consider scheduling their posts at the right time in
order to have captive audience, when they are likely to be available in the network
 especially the busy professionals as indicated in the positive relationship between
availability of networks and products awareness.
c) Take advantage of the cost effective platform of social media to invite their audience to
share their thoughts and engage with the brand as found out in the study.
d) Consider concentrating on improving their mobile apps to expose the business more to
different customer segments in order to address the rising demands for their products as
indicated by the positive relationship between business exposure and products awareness.
e) Increase brand awareness by interacting and knowing their audience on their terms and
making engagement easy and attractive, this will drive more sales and revenue as found
out in the study.

f) If you are in the trade and retail sector, review your current stock levels and assess how
long they are likely to last. Carry out a robust and regular review of your cash flow.
Assess what impact a reduction in sales will have on your ability to pay suppliers,
creditors, your staff as well as repayment of your bank loans. If you foresee any cash
flow challenges, consider renegotiation of payment terms with suppliers and creditors,
and even your landlord. Most importantly, talk to your bank early enough if you foresee
any challenges with keeping up with your regular loans. This is a time to look very
critically at all your business costs and scale back on non-critical costs and expenses to
preserve cash flow.

g) Do not lay off staff instead consider flexible working arrangements at reduced pay. Have
an open and honest discussion with your staff. They also see what is happening to the
business and they will understand.

h) Review your business contingency plan if you have one, if you do not have one, this is
the time to develop one. Get professional help with this. Check your business risks
insurance policy. Does it cover these losses? If it does, talk to your insurance broker for
assistance on making a claim for loss compensation from your insurer. If you do not have
a business risk insurance policy, again this is the time to consider getting one.

i) Do not sit back and lament and hope it will go away. Take action. This is not one of those
“Government Etuyambe” situations, you will need to be proactive to protect your
business. You may even want to start exploring alternative sources for your goods and
 merchandise now that China is still closed. Countries such as Turkey, Indonesia,
Thailand and Vietnam may be worth looking at. In fact, over the last two years, the value
of goods imported into Uganda from these countries have doubled, which confirms that
these countries are now credible alternative sources of imports to China.

j) Government must be commended for the way it is currently responding to the

coronavirus pandemic. It has kept the citizens updated on the current state in the country
and providing advice to the public on what they need to do to stay safe. However, more
needs to be done. In order to keep the citizens safe from this pandemic, there is need for
coherent, coordinated, and credible policy responses in all the Government’s ministries,
authorities and directorates, to ensure that the virus does not result into a public health
and economic tragedy in our country.

k) There should be continuous and consistent advocacy and sensitization for all government
ministries and agencies as well as international NGOs and development partners, faith
based institutions and communities at large. There should also be a large-scale
distribution of information, in all the local languages, to the general public with
guidelines on how to stay safe, what signs and symptoms to look out for and how to
respond in case of suspected infections.

l) There is need for very clear protocols to community leaders, health workers and the
general public with regards to case detections, contact tracing as well as surveillance
guidelines. The public should be provided with advice and guidelines on how to contact
the medical surveillance teams and rapid responders at both national and local municipal
levels.

m) Coronavirus has been declared by the WHO as a pandemic. Which means it is now a
global emergency. Scientists have explained that they do not yet have a clear
understanding of the virus’s behavior, transmission rate, and the full extent of contagion.
This means there is still a lot to learn about the virus. The good news is that scientists all
over the world have been working day and night to find both a cure and a vaccine for the
virus. As you patiently wait for the cure and vaccine for this Pandemic do whatever is in
your powers to protect your business, your livelihood and your family from this
Pandemic.
5.6 Areas for Future Research

This study is a milestone for future research in the strategic social media marketing which
is quite a new and advancing area due to advancement of ICT. First, this study focused on
strategic social media factors at SME’s Uganda online shopping and therefore,
generalization can extend to other players in the market especially upcoming small scale
traders. It is recommended that a broad based study covering all players in the online
business be done to find out the effect of strategic social media factors on products
awareness. It is also suggested that further research should focus on online social media
business communities especially Facebook groups.
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Paper Commissioned by Friedrich-Ebert-Stiftung (FES) Uganda
 APPENDIX 1: QUESTIONNAIRE

MAKERERE UNIVERSITY BUSINESS SCHOOL

SURVEY QUESTIONNAIRE

Dear respondent;
I am Lugonvu Allan, a student from Makerere University Business School pursuing a bachelor’s
degree of international business. I am currently carrying out a research on the effect of social
media on consumer purchasing decision process a case study of SME’s Uganda.

The information obtained from you will be confidential and will only be used for academic
purpose only. I therefore kindly request you to answer the following questions. Thank you in
advance.

SECTION A: GENERAL INFORMATION

A1: Gender

Male Female

A2: Age group

Code 1 2 3 4
Age group 18-20 20-25 26-30 +30
Tick

A3: Level of Education

Code 1 2 3 4 5
Level Certificate Diploma Bachelor’s Master’s PhD
Degree Degree

Tick

A4: For how long have you worked with SME’s Uganda ?

Status Less than a year 3-4years 4-6 years Over 6 years

Tick
Please take a few moments to let us know about service quality and business performance
at SME’s Uganda
Section B: Different types of social media marketing used by SME’s Uganda
Statement 1-SA 2-A 3-N 4-D 5-SA
We use Facebook to share information about SME’s 1 2 3 4 5
products and services
We use twitter to communicate to our clients about 1 2 3 4 5
services and product updates
YouTube videos help us to distribute multimedia 1 2 3 4 5
messages to clients
Instagram pictures has been of importance in changing our 1 2 3 4 5
customer buying behaviour
Linkedin has helped our staff members to network with 1 2 3 4 5
our clients
Myspace has been used to market our products and 1 2 3 4 5
services

Section B: Factors that influence consumer buying behavior on social media at SME’s
Uganda
Indicate the extent to which the following statements apply to SME’s Uganda Respond by using
this scale of 1-5.

Where; 1-strongly agree. 2-Agree. 3 - Neutral. 4-Disagree 5-strongly disagree

 Statement 1-SA 2-A 3-N 4-D 5-SA
Consumers will be willing to buy online if variety of 1 2 3 4 5
products and information are provided sufficiently
Usually consumers are affected by the design 1 2 3 4 5
characteristics of a Social media page.
Psychological Factors affect consumers' attitude towards 1 2 3 4 5
Social media buying

Consumers can be affected by other cultures in choosing

and making decisions about certain products or services

Section C: Relationship between social media on consumer buying decision process

Indicate the extent to which the following statements apply to at SME’s Uganda
Respond by using this scale of 1-5.

Statement 1-SA 2-A 3-N 4-D 5-SA

Social Media usage by both consumers and companies 1 2 3 4 5
seem to affect consumer behaviour.
Social Media has changed the way consumers behave in 1 2 3 4 5
their consumption
Social Media appear to be influential on the consumers at 1 2 3 4 5
their Evaluation of Alternatives.
Consumers can get more information about products and 1 2 3 4 5
services by directly engaging with brands on Social
Media.
Interacting with consumers on Social Media may result in 1 2 3 4 5
increasing potential consumers

Thank you for your time.

Appendix II Morgan’s table for sample size