Faculty of Management Sciences
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Item The influence of electronic word-of-mouth communication on online consumer buying behaviour in South Africa(2023) Tinonetsana, Faith; Rawjee, Veena P.; Govender, Jeevarathnam ParthasarathyThe growth of active users on online interactive media (OIM) platforms has led to the spread of information faster and broader and this has had a great impact on marketers. Consumer behaviour towards Electronic Word of Mouth (e-WOM) is complex, and not all user-generated content posted online will have the same effect on consumers. A consensus on what makes certain online reviews more influential than others and how they influence consumer behaviour is yet to emerge. The lack of knowledge hinders marketers efforts in designing effective marketing strategies for online retailers. The study was quantitative in nature. Self-administered questionnaires were used to collect primary data. The study targeted Generation Z and millennials, and the sample was drawn from students and staff members at the Durban University of Technology (DUT). The analysis was done using the latest version of the Statistical Package for Social Sciences (SPSS). Relevant ethical implications with regard to this study were considered. The structural equation model (SEM) results indicated that valence is the most influential factor of e-WOM during consumer buying decision. Further, there is a significant relationship between e-WOM and consumer buying behaviour. The study recommends that marketers come up with strategic ways to boost the chances of their brands generating positive e-WOM and take advantage of the influence of any good reviews and testimonials they receive. The need to pay close attention to negative e-WOM, keep an eye on unfavourable evaluations on some of the most popular e-WOM communication platforms and use negative feedback to improve product and service quality. Based on the findings this study proposed a framework for an e-WOM strategy towards influencing online consumer buying behaviour. The framework highlights the best approaches to influence consumer behaviour through e-WOM valence and the implementation thereof. Future studies could use a more qualitative approach to build on the existing study and so gain a deeper understanding of Generation Z and millennials consumers' perceptions of e-WOM and consumer buying behaviour.Item Using consumer behaviour theories to analyse the relationship between green technology and customer expectations(2021-11-17) Manqele, Mxolisi BongumusaGreen technology has become a welcome and popular development in most parts of the world, possibly due to the wide belief that green technology is a concept whereby nature and the environment are protected, retaining the environment’s ecosystem. Various actions exist that may lessen environmental impact, yet much difficulty is encountered in converting customer intentions to action, highlighting the importance of bridging the existing gap between customer intent and action; not only in safeguarding the environment but also for business to meet sustainability goals. In this regard, literature highlights a fast-growing interest in innovation for sustainability, while studies draw attention to the development of green industries and green jobs, suggesting that “green” will grow into an important measure for companies and brands, with commendations based on environmental references featured strongly in consumer decision-making. Within this context, the current study hopes to examine green technology-based products, in terms of customer expectations in the KwaZulu-Natal (KZN) province of South Africa (SA). Research shows customer expectations as the desires or wants of consumers, in terms of what they feel a service provider should offer, while customer expectations of service have been further presented as subjective and based on the needs and desires customers expect to fulfil in using the service. This study concedes that green technology-based products can contribute effectively to achieving customer expectations. The mode of green technology-based products could be used to achieve this objective thus becomes the key thrust of this research. Using a quantitative methodology, this study is predicated on the assumption that because green technology preserves the environment, it is an interesting and effective method of achieving customer expectations.Item Consumer decision-making styles of generation Y cohorts : validation of the Consumer Styles Inventory (C.S.I) in South Africa(2020-05) Musasa, Tinashe; Moodley, PThe aim of this study was to assess the applicability of the Consumer Styles Inventory (CSI) proposed by Sproles and Kendall (1986 cited by Azizi 2012:91) in determining consumer decision-making styles within South Africa. Likewise, the major problem of this study revolved around generalisability of US and European based data of consumer decision-making styles in an African context. Moreover, generational evolution necessitated the need for current introspection within an African context. Accordingly, objectives of this study included determining consumer decision-making styles of millennial South Africans, determining additional dimension(s) of the CSI model characteristic of a multi-cultural society, ascertaining an updated consumer decisionmaking style model and explore the implications associated with cohorts identified as recreational shoppers. The study adopted a quantitative survey in gathering data from millennial consumers. Structured questionnaires with Likert scales were utilised in data collection. These encompassed four aspects of research: demographic profile of sample, decision-making styles of sample, psychological orientation of sample under study and innovativeness thereof. The targeted population comprised of 400 generation Y South African consumers in which 320 were successfully selected and tested through convenience sampling. The Statistical Package for Social Sciences (SPSS) version 22 was utilised in data analysis. Factor analysis and bivariate correlation analysis were used in determining hypothesis, testing the tenability of the exploratory framework and ascertaining consumer decision-making styles characteristic of South African millennials. Empirical findings of this study were linked to literature in the latter chapters of this study. Suggestions for future research work concluded this study.Item Sustainable growth of Clover's premium product portfolio in South Africa's lower income market segment(2018-10) Pillai, Anban; Bayat, Mohamed SaheedClover Industries Limited has a long and successful history in South Africa whilst playing a definitive role in the development of the local dairy and FMCG industries. The organisation has been a household name in South Africa for over 100 years with roots stemming as far back as 1898. On the 14th of December 2010, Clover listed on the main board of the local Johannesburg Stock Exchange (JSE) and continues to be a prominent company in the South African dairy market. The South African Audience Research Foundation (SAARF) introduced the Living Standards Measure (LSM) as a marketing research tool in South Africa which groups people by living standards, using criteria that cuts across conventional groupings such as race, and instead evaluates specific criteria such as the level of urbanisation and ownership of motor vehicles and appliances. An increase in both population and income in Africa have resulted in rapid urbanization making Africa an attractive target market for global businesses. According to SAARF, lower income groups (LSM 1–6) account for 63% of the South African population (SAARF 2014) and it is against this backdrop that an opportunity for exploratory research about consumer behaviour has emerged. This study focused on business strategies and aimed to investigate whether Clover’s premium product portfolio can grow sustainably in the LSM 1–6 segments. The justification for this study is based on the paradoxical nature of the LSM 1–6 segment that has income constraints, aspirational attributes and brand attraction. The main objective of this research study is to understand the key factors affecting consumer purchasing habits in this segment of the market. The findings could potentially provide direction for Clover’s business strategy to achieve its growth ambitions in the local market. Objectives have been classified into four categories to assist in answering research questions that lead to a better understanding of the salient factors affecting the purchasing decisions. These insights led to the development of recommendations that will help improve the per capita consumption by making Clover’s premium beverages more attractive across the affinity groups defined as LSM 1-6. To achieve the objectives, the research methodology took the form of a mixed method approach to ensure that the qualitative detail is captured in order to supplement the quantitative research data. The literature review provided detailed insight into global trends pertaining to the beverage industry. A cross-industry analysis was carried out to explore innovative trends and developments that could provide direction for the research project. The literature review, at both the local and global level, provided the foundation for the research questionnaire and the SME interview questions. Based on the findings from the qualitative SME interviews and the quantitative surveys that were carried out, specific themes have emerged. These themes have been categorised and have helped provide clarity on the existing gaps in literature. There are specific factors that influence how business can be carried out responsibly within the LSM 1–6 segments without having an undertone of being exploitive. There are trends that have emerged which profile the typical LSM 1–6 consumer and businesses need to understand these specific needs and behaviour. This study aimed to contribute to the body of knowledge by providing business organisations with insight into LSM 1–6 and how to succeed responsibly in this segment.Item Consumer perceptions of green products, purchasing behaviour and loyalty(2018-06-14) Chikosha, Felix; Potwana, NobubeleGreen products have gained prominence on the market largely due to their perceived benefits of environmental sustainability. In view of the growth in influence of green products, the objectives of the study were to determine the impact of product quality on purchase intention for green products; ascertain the influence of environmental concerns on purchase intention for green products; establish the influence of situations affecting green product purchase on purchase intentions for green products; establish the impact of preference for green products on purchase intention and to assess the impact of purchase intention on re-purchase intention of green products. To establish these facts the study adopted a quantitative methodology, which made use of a self- reporting questionnaire which was administered to consumer households as the target population. For the suburban areas and locations, simple random sampling was done by arbitrarily picking out a number from the housing list secured from the Municipality. In the city center, convenience sampling was done by arbitrarily approaching consumers buying in shopping malls. The 497 responses received were accepted as the sample size of this study. Data collected was captured and analysed on Statistical Package of Social Sciences (SPSS) v22.0 and Analysis of Moment Structures (AMOS) v 24.0 to yield descriptive and inferential statistics. Structural Equation Modelling was then used to provide estimates of the strength of all the hypothesised relationships. The key findings of the study were that green purchase intention was significantly and positively influenced by product quality, environmental concern, preference for green products, environmental responsibility and selection attributes, but not by situations affecting purchase behaviour. Purchase intention has a strong correlation with re- purchase intention. The implications of the findings to marketers are that they need to formulate and implement green marketing strategies to improve consumer perceptions of green products. It is also suggested that marketers drop deceptive marketing practices that cause consumers to be skeptical about green products. Future research may need to be directed at green marketing practices to see what business is doing to enhance the adoption of green products by consumers.Item Influence of convenience goods package on consumer buying behaviour : an international student's perspective(2017) Tinonetsana, Faith; Penceliah, SoobramoneyThe role of packaging has changed with the move to self-service retail formats. Marketers have transformed packaging to become one of the major promoting tools of products, which in turn gets the attention of potential customers and communicate the brand value to the target market. Thus, there is a necessity to explore packaging and its elements in more detail, in order to understand which of these elements are the most important factors influencing the consumer’s purchase decision. This study seeks to reveal the influence of visual and verbal packaging elements on international students buying decision of convenience goods specifically fruit juice which is popular among students. A quantitative, non-probability research approach was employed and convenience sampling was used to identify and select study participants constituting 397 students. In the study the visual and verbal elements are both found to influence consumer buying behaviour. The visual elements that influence consumer buying behaviour are colour, graphics and packaging technology. The verbal elements that have an influence on consumer buying behaviour for convenience goods are label information and brand name. The factor analysis shows that the most important factors during buying decisions are label information, brand name, graphics, colour and technology. The regression analysis reveal a significant relationship between consumer buying behaviour and seven predictor variables; colour, graphics, packaging technology, label information, brand name, level of involvement and time-pressure. The results also reveal that when consumers are under time-pressure, they consider visual elements when they make their purchase decisions. On the other hand, the consumers consider verbal elements when they are not under time-pressure. The results also show that consumers regard convenience goods as low involvement products. Thus it is the duty of marketers to utilise packaging as a marketing tool and weapon against competitors. This study recommends that marketers must consider all packaging elements when designing a package because all packaging elements are significant in drawing interest and attention of consumers. If these elements are properly combined the package will be more attractive and attention-grabbing.Item Consumer behaviour towards cause related marketing in the greater eThekweni region(2007) Corbishley, Karen Margaret; Mason, Roger BruceCause related marketing (CRM) is becoming a popular marketing strategy used by brand managers, retailers and service companies. It can be described as a marketing strategy that links charities or ‘causes’ with the sales of a product, brand or service. The charity is mentioned in promotional campaigns and a certain percentage is donated to the cause in accordance with unit sales or turnover. A study was conducted in the eThekweni region of Kwazulu Natal, South Africa to gather information on this issue. The study was a quantitative survey and data was collected by means of an interview process. The overall objective of this study was to gain an understanding of consumer behaviour towards companies using CRM in the greater eThekweni region. This objective was made up of three sub-objectives. The first subobjective was to identify whether eThwekeni consumers would switch brands to a company involved with CRM, if price and quality were equal. This was followed by subobjective two, which was to establish whether particular socio-demographic characteristics of consumers would be related to their evaluation of a CRM offer. Finally, sub-objective three was to establish whether those same socio-demographic characteristics would be related to the selection of specific causes.Item An investigation into the residual effects of a change in sponsorship of a sports event on consumer perceptions of, and attitudes towards the original sponsor and the event itself(2007) Cochetel, FabriceThis study examined brand awareness after a change in sponsor and audience perceptions about the sponsors and the event before and after the change.