The Retail and Marketing Review

Exploring customer retention strategies implemented by managers in the fast-food industry: A post-pandemic perspective

Leon Paul du Preez, Marthinus Jacobus Botha — Thu, 12 Dec 2024 00:00:00 +0000

The fast-food industry is one of the most competitive industries in South Africa and is challenged by various factors such as fierce competition, high inflation rates, decreased customer spending, constant load shedding, and the detrimental effects of the COVID-19 pandemic. Against the backdrop of increasing challenges, it is concerning to note that customer loyalty within the industry is declining, which poses a problem for retaining customers. Consequently, managers in the industry are tasked with finding new or alternative ways to retain their customers. This article focuses on exploring the strategies that managers implement to improve customer retention in the fast-food industry.

A qualitative exploratory research design was implemented, and semi-structured in-depth interviews were used to collect the empirical data from 13 managers in the South African fast-food industry. Participants were selected using a combination of non-probability convenience and judgement sampling techniques. Atlas.ti was used to code the data, and the Morse and Field approach uncovered the strategies implemented by managers in the fast-food industry through categorical and thematic analysis.

The results indicate that for customers to be retained in the fast-food industry, the business should provide a differentiated experience to customers. Based on the results, it can be advised that to retain customers, fast-food restaurants should employ a differentiation strategy so that customers perceive their product offerings as more valuable or unique compared to competitors’ offerings. Fast-food restaurants can do so by using high-quality ingredients, providing regular customer service training to employees, offering flawless service, and implementing a specialised menu as well as unique or personalised offers. Additionally, fast-food restaurants should also invest in the design of an attractive loyalty programme, alternative means of generating electricity (considering load shedding), and invest in their own delivery services. Implementing these strategies can help fast-food restaurants thrive in a highly competitive and challenging environment. In conclusion, the contribution of this research lies in the novel recommendations made to fast-food managers to employ a differentiation strategy to enhance customer retention in their industry after the COVID-19 pandemic.

Are the functionality of website and logistics systems driving e-customer satisfaction in South Africa

S. Perks, Tariro Shumba — Thu, 12 Dec 2024 00:00:00 +0000

Although online shopping has increased globally, South Africa (SA) still lags behind developed countries in the adoption of online shopping. This study aimed at determining which online shopping system functionalities drive e-customer satisfaction in SA. Specifically, the study examined if website and logistics system functionality can predict e-customer satisfaction. A positivistic quantitative approach was adopted to collect data using a structured self-administered questionnaire. A final usable sample of 237 South African online shoppers older than 18 years was obtained in the online survey. Convenience and snowball sampling was used to collect data and analysed using descriptive and inferential statistics. The study concludes that only website system functionality augments e-customer satisfaction, while logistics system functionality is an element of the shopping experience that falls outside the scope of this article. Online shops should thus carefully plan the design of their website to ensure it is functional and meets or exceeds customers’ expectations. The website must perform in the manner for which it is designed and guide customers to product categories with relative ease and enable quick product image downloads. The website landing page should provide all product and delivery information, product availability status and stock-out conditions.

Exploring the factors behind entrepreneurial success: A thematic analysis

Shweta Tewari, Nisha Goyal, A Nagaraj Subbarao — Thu, 12 Dec 2024 00:00:00 +0000

An individual’s intention and decision to become an entrepreneur is based on intrinsic motivational factors. It is believed that entrepreneurs are driven by intrinsic motivational factors. The factors influencing entrepreneurial motivation is used to understand and explain entrepreneurial behaviour. The present study is an attempt to find factors that empower entrepreneur heuristics towards entrepreneurial action. For this purpose, a qualitative research study based on thirty interview transcripts has been conducted. The findings of the study add value by offering a methodological framework by adopting the content analysis technique around themes like personality, strategy teambuilding etc. The identified analytical tool and capabilities of the entrepreneur in the growth of entrepreneurs will be utilized for adding to the existing literature on the intent and intrinsic motivational factors of entrepreneurs.

Conscious cleaning products: The influence of green marketing on consumer buying behaviour

Nina Rossouw, Aidan Boon — Thu, 12 Dec 2024 00:00:00 +0000

Society’s interest in environmental issues and sustainability has made green marketing a priority for organisations globally. Consumer behaviour has a significant influence on climate change, and alterations in consumer behaviour have the potential to reduce the carbon footprint of consumption by up to 25%. A substantial portion of this can directly be attributed to consumers selecting products with a lower carbon footprint. Traditionally, household cleaning products have had a detrimental effect on the environment but they have more recently made extensive use of green marketing strategies. This study aimed to investigate the influence that the green marketing of cleaning products has on the buying behaviour of consumers. Consumer insights were gathered using an interpretivist, qualitative, exploratory approach with a focus group methodology to determine how their perception of green marketing and its influence on their buying behaviour might be affected. Findings revealed that although participants have a positive attitude towards green marketing and green cleaning products, their buying behaviour is influenced by factors such as price, quality, convenience, and health. Factors such as eco-labelling, social media, and product attributes are important factors that influence their decision-making process. Also noted was the lack of awareness of green cleaning products and their limited availability. This study aids in understanding the effectiveness of green marketing and highlights the need for greater awareness in the promotion of the benefits and availability of green cleaning products. This study provides a deeper understanding of green marketing’s influence on consumer behaviour and can be used to guide in the development of future practices for the promotion of ecofriendly products. Consequently, it is recommended that more research studies be conducted on the effectiveness of green marketing, so that we can better understand whether these campaigns are successful, and whether they actually influence consumer purchasing decisions. Furthermore, there is a need to understand the consumer decision making process with different products, as factors that influence buying behaviour might differ within different products.

Perceived convenience as a driver of South African Generation Y consumers’ online repurchase intentions

Mbali B. Selemela, Rita Klonaridis, Heleneze T. Lues, Chantel Muller — Thu, 12 Dec 2024 00:00:00 +0000

The digital transformation and technological advancements resulting from the fourth industrial revolution (4IR), paired with other external factors including the ramifications of the COVID-19 pandemic, have led to the South African online retail market increasing by 66% in 2020 and surpassing a market value of R55 billion in 2022. While online shopping continues to increase steadily, reports of the factors impacting consumer repurchase intentions are vague in the literature, specifically from a consumer convenience perspective and in the South African context. As such, this study provides a departure point and employed the SERVCON (service convenience) model to investigate whether access, search, transaction, execution and post-service convenience had a statistically significant direct influence on South African Generation Y consumers’ online repurchase intentions. Following a descriptive research and cross-sectional design, this study collected quantitative data from 400 Generation Y university students, using a self-administered questionnaire. While all five factors were significant, access convenience had a negative impact and execution convenience had no statistically significant influence on repurchase intentions. Nonetheless, the findings will guide academic and industry stakeholders in understanding consumers’ perceived convenience and how to optimise every aspect accordingly.

Exploring the dynamics of influencer marketing in shaping generation-y consumers’ brand perceptions and purchase intentions

Padhma Moodley, Paballo Patience Ntobaki — Thu, 12 Dec 2024 00:00:00 +0000

Influencer marketing has emerged as a powerful strategy in shaping brand perceptions and purchase intentions, particularly amongst Generation-Y consumers who are highly engaged with social media. This study investigated the impact of influencer marketing on the brand perceptions and purchase intentions of Generation-Y consumers in South Africa, a rapidly growing market for digital engagement. Through a quantitative approach, data were collected from 475 online respondents using a structured survey. The findings reveal that influencers significantly influence brand perceptions, enhancing brand reliability and appeal, which in turn increases purchase intentions. However, the study also identifies gaps in the integration of trust and authenticity in influencer content, which are critical factors driving consumer decisions. By examining the role of Social Learning Theory, the Elaboration Likelihood Model and para-social relationships, this research provides insights into the dynamics of consumer-influencer interactions. The study contributes to existing literature by offering a South African perspective on the effectiveness of influencer marketing as a strategic tool for brands aiming to engage with digitally savvy consumers. Future research should explore the long-term effects of these interactions on brand loyalty and the evolving landscape of influencer marketing.

Beyond convenience: Understanding the multifaceted appeal of online grocery shopping applications

Nombulelo Dilotsotlhe, Tatenda T. Chabata — Thu, 12 Dec 2024 00:00:00 +0000

Online consumer shopping patterns have changed significantly due to technological innovations. This current study examines the interplay between hedonic and utilitarian value and the role of perceived usefulness in determining consumers’ trust in shopping, mainly through online grocery delivery applications. Trust in technologyoriented devices is of great interest, and this study adds new knowledge to the extant literature. A total of 462 online grocery delivery application users completed the online survey. A convenience sampling method was used. Online questionnaires were analysed using the structural equation modelling software AMOS. Empirical findings established that the perceived usefulness of online grocery delivery apps positively and statistically influenced perceived trust. Utilitarian benefits were found to have a stronger predictor of perceived usefulness than hedonic benefits. Scholarly contributions were provided to those in the grocery retail industry and academics in related scholarly fields, specifically regarding novel research on trust building anchored in perceived usefulness among consumers. The study further provides guidelines for future research that will ideally benefit the online grocery retail sector.

Can Spaza shops survive in township competition with large Nationals? What does the future hold

M.C. Cant, J.A. Wiid, T. Hermanus — Thu, 12 Dec 2024 00:00:00 +0000

It is a known fact that worldwide there is a high failure rate amongst Small, Micro and Medium Entreprises (SMMEs), and this also applies to SMME’s located in South African townships. The township economy in South Africa has gained significant attention in recent years due to its potential to drive inclusive economic growth and reduce inequality. As more than 40% of South Africa’s population resides in the townships, the development of township economies via formal and informal business development is crucial for employment creation as well as the alleviation of poverty. In order to achieve this, a thorough analysis of the state of retail networks in townships in South Africa is needed. Despite their access to huge markets in the townships, most of the SMMEs do not grow to become established large and formal businesses. The purpose of this study is therefore to develop a growth and development framework to guide and support the development of spaza shops to become large, self-sustainable and profitable businesses operating in the township economy.

To obtain empirical data, 500 spaza shop owners were asked to complete a questionnaire. A total of 196 useable response were received back which represents a response rate of 39,2%.

It can be concluded from the research that marketing plays a vital role in the growth and sustainability of a SMME although 97% indicated they do nothing to market their spaza shop. The majority of spaza shop owners (97%) indicated that they buy their stock from wholesalers while 13,3% bought their stock from Shoprite, a retailer in the area. A total of 75,5% of respondents indicated that there are too much competition in the township and this competition is primarily from other spaza shops in the area (88,2%). It was interesting to note that 73,7% of spaza shop owners believed the township is big enough to sustain their business. A total of 63,7% of respondents indicate a propensity to work together with national brands. Based on the findings there is a need to work together with national brands on a more formal level in order to be more competitive and sustainable.

Examining the impact of the 3Cs: Content, collaboration and customisation of social media marketing on luxury fashion brand perception

Richa Misra, Ekta Aggarwal, Chhavi Taneja — Thu, 12 Dec 2024 00:00:00 +0000

The rise of the internet and digitalisation, interconnected global markets, increasing income levels, and heightened consumer awareness about global luxury brands have largely propelled the demand for luxury goods. Social media has emerged as the predominant channel for generating awareness, persuasion, and purchase intent for luxury brands. There exists a notable gap and dearth of empirical evidence in the existing body of literature on the impact of Social Media Marketing (SMM) on customer’s loyalty and attachment to the brand. The purpose of this study is to investigate the impact of the 3 Cs of social Media Marketing (content, collaboration, and customisation) on the customers’ loyalty and attachment to luxury fashion brands, in turn impacting their willingness to pay for them. The study employed a structured questionnaire to gather data from 597 Gen Z customers who were actively engaged with luxury apparel brands; selected through convenience sampling. Partial least squarestructural equation modelling (PLS-SEM) was used to analyse the conceptual model. The results indicated that while all the three Cs were found to be significant determinants of brand attachment and loyalty; content had the greatest impact, followed by collaboration and customisation. It was further observed that SMM had a more significant positive impact on brand attachment rather than brand loyalty. The study further revealed that brand loyalty had a greater impact on the customer’s willingness to pay a premium price, than brand attachment.