Faculty of Management Sciences

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Customers perceptions on competitiveness of ABSA Bank in South Africa
(2018) Chitamba, Anos; Mutambara, Emmanuel
The purpose of this study was to determine customer perceptions of the competitiveness of Absa Bank in South Africa. To address the main research question, the study was divided into three sections which then become the objectives of the study. The first objective was to determine customer perceptions of the level of bank competition in South Africa. The second objective was to determine the factors that customers consider when they choose a bank and the last objective was to determine customer perceptions of the competitiveness in the South African banking sector. An Absa Bank communiqué indicated that its major shareholder, Barclays Bank, is pulling out of Absa due to continued uncertainty in the African market. The market has mixed feelings over the matter. Customers and various stakeholders are sceptical whether the departure will affect the performance of the bank. The study was conducted in Durban. The branch has an estimated of 150 000 Customers who use Absa and subsequently who become the target population of the study. Four hundred walk-in customers at the branch made up the sample. They were selected using a non-probability sampling technique in the form of convenience sampling. In total, 400 questionnaires were distributed to the walk-in customers. Thirteen questionnaires were discarded because the majority of the questions were not answered. Hence a total of 387 questionnaires were returned to the researcher, giving a response rate of 96%. Data was analysed using the latest computerised Statistical Package for Social Sciences version 24.0. Pearson’s Chi-Square and Spearman’s Correlation tests were conducted to determine whether there were statistically significant relationships between the variables. The findings from the study revealed that there is competition in the banking sector and banks compete for customers using pricing strategies. The study also revealed that Absa customers consider the image of the bank and the level of product knowledge by bank employees when they choose a bank. The study also revealed that the majority of customers’ view Absa Bank as competitive in the market. The researcher recommended that the branch management should regularly conduct customer surveys as a method to engage customers and to identify the factors that they want to be improved and incorporated into the branch. After the study was completed, the researcher solicited the services of the post graduate librarian to run the turnitin programme to test the entire thesis for plagiarism. A similarity index of 12% was recorded.
The influence of customer service on consumer buying behaviour at selected supermarkets in the greater Durban area
(2016) Musasa, Tinashe; Moodley, Padhma
Customer service has been identified as a crucial aspect of the retail mix that can pose great significance in the creation of a store image. The modern retail sector has become highly competitive, with consumers demanding exceptional service that surpasses the expectations of service such that, comprehensive service strategies remain crucial for retailers to succeed (Timm, 2008:110). Furthermore, the increasing sameness of merchandise among supermarkets has induced retail giants in South Africa to rely on offering high quality service to remain competitive and build some source of differentiation (Beneke et al., 2012:173). Comprehensive service strategies are a requirement for retailers to remain competitive as they positively influence consumer perception of service that ultimately creates a store image (Harris 2010:17). Failure of service delivered to meet or exceed consumer expectation results in negative perception among consumers and customers end up deserting that particular retailer in search of better service elsewhere (Johnston and Marshall 2010:173). The main aim of this study was to determine the influence of customer service on consumer buying behaviour at selected supermarkets within the greater Durban area. To accomplish the objectives of this study, a quantitative study was conducted in the form of a descriptive survey. A sample of 400 respondents was questioned. Self- administered questionnaires were distributed amongst participants. Non-probability sampling was used in selecting respondents in the greater Durban area. Reviewed literature and findings of the study made the basis for conclusions and recommendations of this study. Results of this study indicate the following: • There is a positive perception towards service delivery in most Durban supermarkets and the majority of respondents indicated their willingness to continue visiting specific stores and recommend them to others. • There is a relationship between customer service and consumer buying behaviour. It is therefore recommended that supermarket management continue to uphold service quality as it not only ensures customer retention but also generates positive attitudes towards the stores.
South African consumers' perceptions of and attitudes towards a Jamaican restaurant : country of origin effect
(2016) Neshehe-Mukhithi, Fhelani; Lekhanya, Lawrence Mpele
This study is aimed to explore the perceptions and attitudes of South African towards products or services of foreign origin, in particular a Jamaican restaurant in Pretoria. The study objectives were to explore that perceptions and attitudes of South Africans toward products and services of foreign origin, investigating the various factors influencing the consumer buyer behaviour towards products including foreign products and services, and to make recommendations regarding the marketing of foreign products and services. A literature review was conducted which detailed the factors influencing consumer buyer behaviour and the various components of the country of origin effect that has consequences on the marketing of products of foreign origin. The study was a quantitative study where a sample of 231 participants between 18 and 65 years of age were selected using availability sampling at a shopping mall in Pretoria. Questionnaires were given to selected participants who completed and returned the completed questionnaire to the researcher. All the selected participants completely filled the questionnaires. The data from the questionnaires was collated using Microsoft Excel spreadsheets. The data was then presented as pie and bar charts generated from the frequency tables. Data was analysed using simple descriptive statistics, interpreting the meaning of the data and discussing the data in line with the findings of the literature review. The results showed that the participants’ responses displayed significant phenomena that relates to the perceptions and attitudes of citizens towards foreign products and services. The results demonstrated that many of the participants displayed a significant degree of animosity against foreign products, with ethnocentrism and patriotism. There was also a display of a degree of protectionism of the local industry from the influx of foreign products and services. A significant number of participants also stated that foreign goods must be regulated through higher taxation to protect the local manufacturing industry and prevent further unemployment. However, the results also showed that a significant number of participants do not display animosity towards foreign goods, and neither do they feel bound by ethnocentrism and patriotism, hence they perceive that buying foreign goods is an option. Participants also noted that they consider the country of origin of the products so as to determine the perceived quality, price and utility, often from the perceived country image.
Consumer protection and service delivery by the retail industry in the greater Durban area : the legal implications of the Consumer Protection Act 68 of 2008
(2017) Govender, Vasantha; Govender, Jeevarathnam Parthasarathy; Pillay, M.A.
As a result of weaker bargaining power, consumers are often exploited or treated unfairly in the business arena. Whilst consumer abuse is a global problem, South African consumers are more vulnerable due to various socio-economic conditions that affect their ability to negotiate equally in the marketplace. Factors such as poverty and illiteracy contribute to consumer abuse and is perpetuated by the discrimination which was inherent in the apartheid era. Accordingly, the Consumer Protection Act, 2008 (CPA) was promulgated to promote the respect for consumer rights, create awareness, enhance consumer protection and eliminate unfair and dishonest business practices which were prevalent at the time. This study aims to investigate the implications of consumer rights for service delivery within the retail sector. The main objective of this research was to explore the levels of awareness of consumer rights and to identify consumers’ expectations and perceptions of service delivery in relation to the CPA. The research design was quantitative in nature. A questionnaire was designed to assess the levels of awareness of rights and consumers’ expectations and perceptions of the service delivered by retailers, in relation to the service quality dimensions. Using convenience sampling, data was obtained from 337 respondents in the greater Durban area. Data was analysed using SPSS version 24.0 and interpreted using descriptive and inferential statistics. The findings of the gap analysis revealed that the respondents’ perceptions of service quality was consistently lower than their expectations, in respect of several dimensions of service quality. These negative gaps indicate that the level of the delivered service had fallen below the respondents’ expectations of service quality amongst retailers. This implies that respondents’ were dissatisfied with business compliance with provisions of the CPA. Businesses are hence encouraged to take steps to ensure legal compliance, thereby enhancing customer satisfaction and attaining higher levels of service excellence.
Service quality at selected health and fitness centres in townships in the greater Durban area
(2017) Ngceba, Asiphe; Penceliah, Soobramoney
The increasing interest in people’s wellbeing has seen the growth of health and fitness centres (HFC) all across South Africa. It has been a decade since Virgin Active and Planet Fitness expanded their business into townships, with this endeavour resulting in the opening of HFC in Khayelitsha and Soweto. The motivation behind this study is therefore to examine the effect of service quality on customer satisfaction in the HFC industry in Ntuzuma, Umlazi, Kwa-Mashu, Clermont, and Phoenix, all townships in the greater Durban Area. Thus, the main purpose of this research is to ascertain service quality at selected HFC in townships within the greater Durban area. Interest in service quality has grown over the last decade due to increasing competition, which has led managers to finding ways of improving profitability. One area of interest is service quality and how it affects customer satisfaction and its impact on the bottom line, which is why ascertaining service quality at selected HFC in the greater Durban area’s townships is significant. The study was descriptive, quantitative and cross-sectional in nature, probing the effect of service quality on clients’ customer satisfaction. From these findings the Health and Fitness Centres can identify more specifically the failures in its service quality and seek to improve upon them. Service quality dimensions that are deemed to be good predictors of service quality for members of the HFCs offering have been related to factors such as the “Tangibility”, Reliability”, “Responsiveness”, “Assurance” and “Empathy. It is hoped that the results obtained will aid to support these centres in adopting practical customer service quality measures that will assist them to succeed in the highly competitive health and fitness industry.
Customer service as a strategic tool amongst independent retail food chains in KwaZulu-Natal
(2017) Tlapana, Tshepo Peter; Govender, Jeevarathnam Parthasarathy
This study aimed at determining and evaluating customer service in independently owned retail food chains within the province of KwaZulu-Natal in South Africa. Furthermore, it included assessing the level of retail service quality, current customer service tools employed by independent food chains in KwaZulu-Natal and the extent to which customer service tools are being used. The study was also about establishing whether there was a significant relationship between retail service quality and customer satisfaction. The study targeted both customers and managers of independent food chains in KwaZulu-Natal from whom a sample of four mangers were interviewed and 444 customers were conveniently selected to participate in the study. Both qualitative and quantitative methods were employed in the collection of data. The findings revealed that majority of the customers were generally dissatisfied with the quality of services offered by independent food chains owing to a lack of complementary services (ATM terminals, parking and toilets), facilities for shoppers with special needs (physically handicapped, wheel chaired or translators), inability to offer customers credit, failure to provide a wide product assortment, short operating hours and general appearance of store (cleanliness, good product display, presentation on how to use merchandise and availability of shopping trolleys, signage to locate and identify merchandise). The results, however, revealed that there is a relationship between customers’ expectations and their perceived satisfaction. Equally significant, the results showed that customers were satisfied with accessibility and safety of the stores, and that they will be considering independent food chains in KwaZulu-Natal as their primary stores. The study concluded by recommending that: independent retail food chains study their customer profiles as it was evident during interviews that customer profiling or segmentation was not being undertaken in detail; retailers are urged to identify and establish customer service needs and requirements so as to facilitate proper product and service mix design; retailers are also recommended to keep regular communication with customers to inform them about promotions or any new developments taking place; retailers should introduce customer loyalty programmes; provide regular staff training on customer service through workshops and follow-up refresher courses; retailers should offer quality merchandise and incorporate latest technological innovations; handle and process third party payment; meet and exceed customer service expectations of customers; upgrade their facilities to accommodate customers with disabilities; and finally retailers should have well-defined returns policies, parking facilities, rest rooms and introduce trolleys with baby-seating facilities.
Investigating internal service quality at Durban University of Technology Writing Centres
(2017) Nhari, Sibongile Ruth; Nzimakwe, Thokozani Ian
This research investigated internal service quality perceptions held by DUT Writing Centre tutors. This research is important because literature is indicative of the fact that internal service quality is a precursor to external service quality. The study employs a mixed method approach. An adapted SERVQUAL Battery termed by Frost and Kumar (2000) as INTSERVQUAL was used to gather the quantitative data. The qualitative data was from a secondary source which was focus group discussions and was analysed using thematic analysis. This study utilised the survey method and a census was conducted to investigate the service quality dimensions. The quantitative results were analysed by use of descriptive and inferential statistics by SPSS 24 program. Five dimensions being reliability, responsiveness, assurance, empathy and tangibles were measured by the instrument and a GAP analysis of the expectation and perception scores was done. It was found that the highest gap was in the tangibles dimension and the lowest gap in the reliability dimension. The research objectives were as follows: • To determine Writing Centre tutors’ expectations of internal service quality at DUT writing centres; • To evaluate Writing Centre tutors’ perceptions of internal service quality at DUT writing centres; • To identify gaps between expectations and perceptions of internal service quality at DUT writing centres; and • To identify customer service expectations and perceptual differences in relation to biographical variables in the population.
An investigation into the challenges faced by a mobile service provider in meeting customer needs
(2017) Govender, Omashan Vaughn; Govender, S.
The term “wireless network” pertains to a very comprehensive field and at different points in history, meant different things. For example, in 1901 it would have meant Marconi’s first transatlantic communication and later, to the walkie-talkie in the Second World War. Since the late 1940’s, large companies and emergency services have used wide area private networks which could also be catergorised as wireless networks. However, public consciousness of wireless networks only arose in the 1980’s through the commercial distribution of cellular mobile radio. The telecommunications industry is experiencing a phenomenal revolution in which; the driving factors are innovative technologies, deregulation and globalization. Innovative technologies introduce dynamic changes in the way that telecommunication business is conducted. Deregulation is the liberalization of telecommunications which significantly increases the telecommunications market, while also allowing for strong competition amongst mobile service providers. Globalisation is the breakdown of legacy barriers which forces monopolistic service providers to compete in the international arena. With service delivery being identified as one of the key components for a successful telecommunications service provider, along with the Quality of Service of their network, both components are evaluated to determine how efficient the organisation is within the mobile telecommunications industry. Telecommunications service delivery is a way of ensuring the Quality of Service delivered for outsourced and retained services. The responsibilities of the mobile operator include monitoring, analyzing and reporting on service delivery performance in order, to ensure that customer satisfaction is met or even exceeded by the mobile operator. The South African mobile telecommunication industry is experiencing phenomenal growth, just like the rest of the world. Over the last two decades, the South African mobile telecommunications industry has experienced dramatic changes. Fixed line service providers have expanded into the mobile arena. Mobile operators are trying to form mergers and purchase fixed line companies. This study investigates the challenges faced by a mobile service provider in meeting internal customer needs. The Quality of Service (QoS) of the mobile network was evaluated and the various elements which contribute to challenges experienced by the service provider were identified. A mixed methods data collection method was employed for this study. To obtain the qualitative data, semi-structured interviews were conducted with management staff. Quantitative data was obtained through the use of questionnaires and an existing discourse analysis was conducted to identify characteristics on existing reports which were generated from within the organisation, for data collection. The results showed that the mobile operators had to be innovative and competitive simultaneously. Mobile operators face various challenges. The increased level of competition amongst service providers ensured improved QoS and service delivery to consumers. The mobile operator’s network foot print has to increase to provide its own network availability to clients. In order to avoid or reduce network sharing or roaming of network services as this comprises the client network coverage on the network. The mobile service provider should actively analyse network traffic to avoid potential disruptions and, to ensure that customers have a seamless connection. This study concludes that the changing environment of communications forces organizations to consistently re-evaluate their strategies and necessary re-align their strategies to the business needs of the organisation. The initial planning entails making technology choices to meet the overall business goals. However, technology is changing at an exponential rapid rate; therefore the organization should reach the completion of the product life cycle to ensure that this product is still required in the market. The main finding of this study reinforced the contention that planning is the most critical part of mobile network strategy. The organisation’s strategy may change to accommodate environmental changes. However, these changes should not affect the life cycle of the blueprint design.
Retail loyalty programmes : relationship quality and customer loyalty between the card-holder and the retailer in South Africa
(2017) Corbishley, Karen Margaret; Meintjes, Corné; Mason, Roger Bruce
Loyalty programmes have become a popular marketing tool in marketplaces that are highly competitive and where differentiation is difficult. Although they are not new anymore, they continue to grow in popularity, particularly in South Africa where numbers are steadily increasing. The main aim of this study was to determine the influence of various types of perceived benefits from loyalty programmes in the South African fast moving consumer goods (FMCG) market with respect to their impact on relationship quality and loyalty towards the retailer concerned. The study reveals three forms of perceived benefits which are named as consumeristic, altruistic and egoistic benefits. In addition, the influence of socio-demographic characteristics are examined to ascertain any differences that might occur in the results. The study design was based on an exploratory sequential mixed methods approach and began with qualitative research before proceeding to quantitative data collection and analysis. The qualitative section of the research involved two in-depth interviews with managers of loyalty programmes at major retailers and two focus groups aimed at loyalty programme members. These assisted in the design of the quantitative data collection instrument. The quantitative data collection was aimed at a consumer database which incorporated those who were actively employed in the economy, resulting in a sample of 559 respondents. The initial findings of the study, revealed by means of regression analysis, were that all three forms of perceived benefits lead towards the three constructs that make up relationship quality, namely trust, satisfaction, and commitment with the retailer concerned. In addition, the same benefits were found to contribute towards customer loyalty. However, once structural equation modelling was employed, the results evolved. Firstly, the constructs of trust and satisfaction cross loaded onto each other and were therefore treated as a single construct named trust/satisfaction. Secondly, egoistic benefits were absorbed into consumeristic benefits and were therefore no longer featured as a separate item. Explanations are offered for this phenomenon. Consumeristic benefits still had a positive and significant relationship with trust/satisfaction, as did altruistic benefits. However, it was found that although altruistic benefits still enjoy a significant relationship with commitment, consumeristic benefits did not. A suggestion for this is that the perception of altruistic benefits has a greater attitudinal impact than consumeristic benefits do. Finally, neither altruistic nor consumeristic benefits showed a direct relationship with loyalty. The introduction of demographic variables established that only age affects the results, with older consumers being more receptive than others to altruistic benefits. However, findings revealed that a pathway to loyalty remains through the constructs of trust/satisfaction and commitment. This emphasises the importance of achieving trust and satisfaction first by means of the benefits offered. Finally, a new structural model is developed in line with the results of the structural equation model. The results from this study add to the body of research in the field, yielding both significant theoretical and practical contributions to the field of loyalty programmes, relationship quality and loyalty research, particularly in the South African FMCG retail marketplace. Retailers are advised to continue offering both altruistic and consumeristic benefits to customers, despite consumeristic benefits not necessarily creating a direct route towards loyalty. This is because once trust and satisfaction is achieved, loyalty will follow. In addition, loyalty programme providers should ensure that offerings provide both simplicity and transparency in order to create a positive relationship with trust and satisfaction.
The influence of service quality on the post-dining behavioural intentions of customers at Cargo Hold, Ushaka Marine World
(2017) Nxumalo, Thobelani; Mnguni, Erasmus M.; Dorasamy, Nirmala
The purpose of this research study was to investigate the influence of service quality on the post-dining behavioural intentions of customers in a fine dining setting. The National Restaurant Association (2014 as cited in Ruggless 2014: 20 stated that the fine dining restaurant segment is constantly losing out on the restaurant industry market share. In order to remain competitive, restaurants need to tender service that meets the expectations of customers, as perceived service quality affects post-dining behavioural intentions (Prayag, Khoo-Lattimore and Sitruk 2015: 27). In an attempt to devise strategies to rescue the sinking fine dining restaurant segment, this research study developed a conceptual framework model and tested its paths through path analysis, using structural equation modelling. The research study modified a DINESERV scale to obtain primary data from respondents. The modified DINESERV attained a high reliability and validity score. It was further subjected to confirmatory factor analyses and all the KMO and Bartlett’s requirements for factor analysis were satisfied. Data was collected by means of self-administered questionnaires at Cargo Hold restaurant after agreement was reached with the management team. The convenience sampling method of data collection was applied. Diners were only given the questionnaire upon receipt of their consent to participate in this study. A total of 400 survey questionnaires were distributed. However, only 361 were deemed suitable for analysis. These 361 usable survey questionnaires represent a 90.25% response rate for this research study. Hypotheses were tested on a hybrid of structural equation modelling path analysis and Spearman’s correlation coefficients. The results showed a positive correlation between service quality and behavioural intentions, with customer satisfaction indirectly exerting a significant effect between these constructs. The research study concludes with implications and direction for future research.

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