The Retail and Marketing Review - Volume 11, Issue 1, 2015
Volume 11, Issue 1, 2015
Author Michael CantSource: The Retail and Marketing Review 11, pp I –III (2015)More Less
The challenges facing businesses are not becoming easier but rather more complex in nature. All over the world businesses are struggling with an economy that is not showing signs of recovery and with customers still unwilling to spend their hard earned cash. Larger companies are battling to generate more jobs and small business are finding it harder and harder to compete and many are barely surviving. This phenomenon is however not unique to a select few countries but rather to a wide range of businesses on all continents.
Author R.G. DuffetSource: The Retail and Marketing Review 11, pp 1 –22 (2015)More Less
The advent of digital and social media has resulted in noteworthy changes in the advertising and marketing environment, which have required companies to approach young consumers in a different manner. Gen Y (young adults) consumers are dependent on the Internet, social network sites, instant messaging and mobile devices to search, organise and transmit information, as well as for entertainment purposes. Marketers are, therefore, compelled to communicate with these digital savvy consumers on social platforms, which they frequent on a regular basis. While organisations have constructed social network profiles and buy online advertising space to promote their brands, many still do not fully comprehend how to successfully integrate social media into their marketing communication strategies. Research on social media marketing communications and the perceptions of users are somewhat limited in a developing country such as South Africa. Mxit is a large social network site in South Africa that mainly uses a mobile platform for users to text each other at a low cost. The inquiry's main aim was to ascertain Gen Y's affective attitudinal responses to Mxit marketing communications. The survey design was utilised to sample 1 185 Gen Y participants. These Gen Y respondents demonstrated positive perceptions to Mxit marketing communications in terms of liking and preference hierarchy response levels with several usage and demographic characteristics also having a noteworthy impact. This research serves as a clear indication that marketers should commence or continue to use Mxit as an effective online marketing communication tool, and makes contributions in terms of the application of cohort and attitude theories in the context of Gen Y respondents' attitudes towards SNA in a developing nation.
Source: The Retail and Marketing Review 11, pp 23 –43 (2015)More Less
Functional e-fashion shopping risks induce the reluctance to e-fashion shop that directly influences the intention to shop for fashion online. Using the Theory of Planned Behaviour as the theoretical framework, the study aimed to develop a conceptual framework of e-shopping intent by exploring attitudinal (rational and emotional) and the perceived behavioural control elements (functional risks) when e-fashion shopping for the first time. A qualitative, exploratory study was designed of which 15 purposefully chosen participants took part in a practical fashion web-site exercise followed by in-depth interviews. Content analysis of the findings revealed that consumers experienced both positive and negative emotional and rational attitudes that could act as indicators of e-fashion shopping intent. Control and lack of control were also experienced through the functional risks consumers were exposed to, that are also potential indicators of e-fashion shopping intent. The newly proposed conceptual framework related to the TPB for e-fashion consumers is discussed. These findings are useful to e-retailers when developing e-fashion shopping websites if reduction in e-fashion shopping functional risk is to be addressed which may positively influence the intent to shop online. The study has identified the functional risks e-shoppers have control over when shopping for fashion online and those they do not have control over, which can assist in the development of the online offering to e-fashion shoppers.
The interrelationship between service quality, relational benefits, customer satisfaction and behavioural intentions in the South African short-term insurance industrySource: The Retail and Marketing Review 11, pp 44 –60 (2015)More Less
South African short-term insurers operate in a highly competitive market but do not successfully differentiate themselves from competitors. One way differentiation can be achieved, is to adopt a customer-focused approach where short-term insurers engage in CRM initiatives such as providing quality services and relational benefits to satisfy customer needs and subsequently retain customers over the long term. This study investigates the effect of service quality and relational benefits on customer satisfaction, as well as the effect of customer satisfaction on behavioural intentions in the short-term insurance industry. A quantitative, descriptive research design was followed and convenience sampling was used to select respondents. Data was collected by means of self-administered surveys from short-term insurance customers in Gauteng, South Africa. The results of the structural equation model indicate that service quality and relational benefits have a significant effect on customer satisfaction, which in turn has a significant effect on customers' behavioural intentions. The paper also offers several managerial implications.
Author M. MpinganjiraSource: The Retail and Marketing Review 11, pp 61 –75 (2015)More Less
The website is the main place of interface between online retailers and their customers. As a place of interface it can be an important source of environmental stimuli on customers. This paper empirically examines the influence that factors associated with the online servicescape have on customers' hedonic shopping experience. Data used was collected using a structured questionnaire. Responses from 149 online customers who were found to be hedonic in their shopping orientation were used in the analysis. Version 21 of SPSS/AMOS statistical package was used to analyse the data. The findings show that web site usability, mass customisation and web aesthetic appeal play a significant positive role in influencing online customers' level of hedonic shopping experience. Website informativeness was however not found to have significant influence on customers' level of hedonic shopping experience. The findings also show that customers' level of hedonic shopping experience significantly influences commitment to online stores. The findings in the paper have wider implications on management of online stores. In general the study identifies factors that managers of online stores can focus on in order to appeal hedonic shoppers by bringing enhanced pleasure to the online shopping experience.
Author D. TustinSource: The Retail and Marketing Review 11, pp 77 –91 (2015)More Less
The diverse landscape and physiognomies of the small, medium and micro-enterprise (SMME) sector have caused immense challenges regarding reliable and comprehensive knowledge accumulation for this segment of the South African economy. This restraint has caused grave credibility concerns among many data users regarding the exactitude of SMME data, rendering such data largely unsuitable for policy and SMME business development purposes. Consequently, entrepreneurial aspirations and the vision to cultivate economic growth through sustainable small business development in South Africa, remain a pipedream. To provide specific direction to alleviate the undesirable state of affairs, this critique makes a case for SMMEs as an ingenious pathway to create jobs, increase levels of subjective well-being and improve standards of living. Consequently, the article presents a detailed review of features of and challenges facing SMMEs in an attempt to identify future strategies that are most likely to support the transformation of the SMME sector into a growth engine, ideally suited to address key development issues (poverty, income inequality and unemployment) hampering prospective overall economic growth in South Africa. Owing to the fact that the retail sector dominates the small business sector of South Africa, the endorsed strategy presents an equivalent reference framework for future small retail business development, growth and sustainability.
Levels of customer loyalty and perceptions of loyalty programme benefits : a South African retail exampleSource: The Retail and Marketing Review 11, pp 92 –105 (2015)More Less
Organisations use loyalty programmes to stimulate customer loyalty, and consumers presumably join these programmes to obtain a number of benefits or rewards arising from their membership. While consumer loyalty and loyalty programmes have been popular research topics, research which investigates customers' perceptions of loyalty programme benefits relative to their level of loyalty to the organisation have been largely neglected. To address this void, our research assessed the members' loyalty to a South African grocery retailer, clustered them into four groups (true, spurious, latent and low loyalty) based on their level of loyalty and examined their perceptions of the benefits offered by the retailer's loyalty programme. Four latent dimensions of perceived benefits (Convenience, Recognition, Entertainment, and Savings and exploration) resulted from the factor analysis. Significant differences were found to exist in the case of all these dimensions relative to the four loyalty levels.