THE IDENTIFICATION OF FACTORS THAT INFLUENCE FARMERS' BUYING BEHAVIOUR OF NEW AGRICULTURAL TRACTORS

C. A. Bisschoff, A. de K. Marais and M. J. van Reenen

Agrekon, 1994, vol. 33, issue 2

Abstract: The purchase of tractors by the participants in the various agricultural sectors continues to be problematic due to the high price of tractors and its accompanying implements. The purchase is thus a.. substantial capital investment in equipment that results in a thorough pre-purchase examination of the various alternatives and the choice of a manufacturer. Since the average age of agricultural tractors is constantly increasing, the probability of replacement purchases of tractors is also increasing. This scenario demanded a study in buying behaviour that examined what factors are deemed to be important by the buyers of tractors for agricultural use. Eight factors were identified by means of principle varimax factor analysis. These factors are: Product and service qualities, Operational qualities, Pre-purchase planning, After-sales service, Ergonomics, Ease of operation, Cost of credit and Potential savings. These factors declare a cumulative variance of 55,65 per cent. Three major groups could benefit from the results. First, the buyers of agricultural tractors since it could increase their level of understanding of the important considerations that are connected to the replacement of old tractors. Secondly, agricultural economists and advisors should be able to increase the quality of their advice if they have a better understanding of tractor buying behaviour. Thirdly, financial institutions may benefit by a more in-depth knowledge why a farmer applies for a loan to buy a new tractor.

Keywords: Farm Management; Research Methods/Statistical Methods (search for similar items in EconPapers)
Date: 1994
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Persistent link: https://EconPapers.repec.org/RePEc:ags:agreko:267709

DOI: 10.22004/ag.econ.267709

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