A research report submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Management in the field of Strategic Marketing Johannesburg, 2017 / Sales promotions are ever-present occurrences in modern day markets with companies using them as part of their marketing mix (Blattberg & Neslin, 1990). They also have the ability to effect customer satisfaction and in turn the brand loyalty for that consumer (Li-Xin & Shou-Lian, 2010). Bawa and Shoemaker (2004) found links between non-monetary sales promotions and the brand loyalty of a consumer. Consumers exposed to sales promotions usually had increased purchasing probability and enhanced loyalty to the brand, compared to consumers that were not exposed to the promotion. This study set out to establish the effects on the attitudinal loyalty of consumers who missed the opportunity to partake in a free premium sales promotion. Utilizing a quantitative research methodology, data was collected by means of a structured questionnaire from respondents in South Africa. Internal factors such as the consumers experience of cognitive dissonance; emotion showed towards the brand; and their attitudes towards the brand, were measured and analysed through factor analysis. The most notable finding from the study was that the effect on a consumer’s attitudinal loyalty was contained to the attitude they have towards the brand, irrespective of the level of dissonance that might appear or even the emotional feelings they might have for the brand. Missing the sales promotion would almost certainly alter their perception of the brand and change the internal factors a consumer turns to when searching for information and evaluating their post-purchase consumption. Ultimately, a missed free premium sales promotion will do very little to destroy any brand loyalty that is already present with that consumer. / MT2017

In times of economic recession, retailers tend to focus particularly on creating consumer loyalty. Consumers with limited resources search for the best possible alternatives to save money. The latter makes it very difficult for retailers to keep consumers loyal. Marketers claim that successful loyalty programmes can assist retailers in creating consumer loyalty. Based on their structural similarities, Pick 'n Pay adapted the Smart Shopper loyalty programme from Tesco in the United Kingdom in May 2011. This study examined the influence of members' perceptions of the Smart Shopper loyalty programme on their loyalty to the Pick 'n Pay Family Store in George. It also investigated the relationship between consumers' sociodemographic characteristics and their loyalty to the store and to the Smart Shopper loyalty programme. The empirical data were collected by means of questionnaires distributed to Smart Shopper loyalty programme members who patronise the Pick 'n Pay Family Store in George. Three hundred and fifty usable questionnaires were received. Members' perceptions of the Smart Shopper loyalty programme had an significant relationship with their loyalty towards the store. Their perceptions were influenced by the Recognition, Convenience, Savings and exploration and Entertainment they experienced with the Smart Shopper loyalty programme. True and latently loyal consumers regarded Convenience as the most important Smart Shopper benefit, followed by Entertainment, Savings and exploration and Recognition. The distance members resided from the store and their ethnicity were two demographic characteristics that had a significant influence on their loyalty towards the store. However, it has to be pointed out the 58 percent of the respondents were coloured and could have skewed the results. The distance members resided from the store also influenced their loyalty to the Smart Shopper loyalty programme.

A research report submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Management in Strategic Marketing, Johannesburg 2019 / Consumer brand identification is a concept that helps us to understand the reasons behind brands helping consumers to express their identities and find the true meaning of themselves through brands. Brands are used by consumers to construct their self-image and to fulfil self-verification needs. This study sought to test the six drivers of Consumer Brand Identification, (CBI) as identified by Stokburger-Sauer, Ratneshwar and Sen (2012) and their impact on brand loyalty. The six drivers/antecedent are; brand-self similarity, brand distinctiveness, brand prestige, brand social benefits, brand warmth and memorable brand experiences. These drivers were tested on the five South African commercial banks, namely, Standard bank, First National Bank (FNB), Amalgamated Banks of South Africa (ABSA), Capitec and Nedbank. A quantitative cross-sectional research design was used. A non-probability sampling method was employed with 244 respondents dispersed throughout South Africa who completed a self-administered questionnaire. The results confirmed the influence of four of the six drivers, being brand distinctiveness, brand prestige, brand social benefits and memorable brand experiences. Further to that, it was found that brand distinctiveness has a stronger causal relationship with CBI when consumers have lower involvement in the brand’s product category. Brand social benefits had a stronger relationship with CBI when consumers have a higher involvement in the brand’s product category. CBI was found to have a positive consequence on brand loyalty which further lead to brand advocacy. The findings also revealed that FNB was the most popular bank, with ABSA being the least popular bank. From the findings, it was recommended that banks should focus on driving an emotional connection with the brand and the consumer which can be through socially lead events that make them feel like they belong and taking consumers through memorable brand experiences. Through this, brand distinctiveness can be further enhanced. / XL2019

Thesis (MBA)--Stellenbosch University, 2012. / ENGLISH ABSTRACT: The medical scheme industry of South Africa has been exposed to fundamental changes during the last decade. We have been witness to various amalgamations and scheme closures as a result of financial pressure and changes to legislation. Never before has it been more important for medical scheme administrators to become more customer focused and find solutions for medical schemes to stay viable into the future. Relationship marketing, a widely acknowledged concept, has been recognised as an appropriate tool to manage relationships and improve customer loyalty over a long-term period. A number of studies have investigated the viability of relationship marketing strategies across different industries. No such studies have however been performed for the medical scheme industry of South Africa. The study therefore aims to investigate how loyalty between medical schemes and their respective administrators is currently maintained. It further aims to determine if the medical scheme industry would benefit from relationship marketing initiatives to encourage long-term loyalty. An in-depth literature study was performed. The underlying aspects under investigation include relationship marketing, customer relationship management (CRM) and customer loyalty. It is thus important to investigate the influence of these three components on the strength of relationships and customer retention. The second phase of the study consisted of in-depth semi-structured interviews with various scheme representatives from the industry. This study is based on an exploratory case and the qualitative data was analysed using pattern finding techniques and qualitative content analysis. The study investigated the factors that have an impact on loyalty in the medical scheme industry. It was determined that relationships between administrators and medical schemes are multilevel and although relationship marketing literature indicates that key account managers are essential for the successful use of relationship based strategies, it was evident that expertise needs to extend beyond only those in key customer management positions. It is evident from the findings of this study that the medical scheme industry of South Africa could benefit hugely from correctly implemented and well researched relationship marketing strategies. This study may therefore be useful to the medical scheme industry in that it provides insight into relationship marketing in the South African context.

Thesis (M. Tech. (Business Administration )) - Central University of Technology, Free State, / Traditionally, commercial banking in South Africa has been dominated by the big four namely Amalgamated Banks of South Africa (ABSA), First National Bank (FNB), Nedbank, and Standard Bank. Although still dominated by the big four, other smaller banks such as Capitec and African Bank have made inroads into retail banking. This situation arose due to liberalization of the financial services sector since democratisation in South Africa in 1994 which has paved the way for proliferation of the banking industry. This has in turn led to intense competition among banks for customers. Banks in South Africa therefore have the uphill task of retaining their existing customers whilst acquiring newer ones. As a result, South African banks are being compelled to become more customer focused/ oriented. Meanwhile, a key component of most initiatives to become more customer-oriented is the successful implementation of customer relationship management (CRM). A compelling view of CRM is that organisations generate a great deal of data about customers that they can use to build customer profiles in order to serve them better. South African banks therefore need to adopt and implement innovative CRM strategies to maintain a competitive edge in the marketplace. Most banks have a section that only deals with business clients. This is referred to in banking parlance as Business Banking. One of the critical elements of Business Banking is the high level of relationship banking – a service designed to meet the financial needs of clients through the development of a long-term relationship. This type of service delivery is unique and expensive compared to the traditional retail bank delivery system. As a result, the bank must be in position to monitor the profitability of each relationship to ensure that the right clients are serviced in the right way and are meeting the required value proposition. Therefore, if the South African banks in general need to adopt and implement effective CRM strategies, then the need is even greater for the Business Banking section in order to survive in the marketplace. Absa Business bank went through an operating model change in 2011 which necessitated some structural changes including changes in its CRM practices. Mindful of the value of retaining existing customers and attracting new ones, Absa would want to know whether its current CRM practices are effective in ensuring that customers become more loyal to Absa business bank. In general terms, this study investigated the concept of CRM and its influence on customer loyalty and retention. Specifically, the study investigated Absa Business Bank’s CRM practices in relation to customer loyalty and retention using primary data from employees, management, and customers from the Eastern Cape Region in South Africa. The results of the study are very revealing. Among others, the study shows that bank staff commitment to offering excellent service; building trust with customers; communicating with customers in a timely manner; and proactive conflict handling are important for bank image, customer word-of-mouth behaviour towards the bank and these ultimately influence bank customer retention and loyalty. On the basis of evidence from the study it is safe to conclude that customer loyalty can be attributed to CRM and more specifically those aimed at building trust, demonstrating commitment to service, communicating with customers in a timely, reliable and proactive fashion, and handling conflict efficiently. This report contains the major findings of the study alongside recommendations for practice and further research.

This study proposes a loyalty segmentation model for the South African men's retail credit fashion industry. Retailers operate in a highly competitive market where competitors strive for share-of-wallet of the same customer. The likely victor in this battle is the retailer who best understands customer needs, purchase behaviour and utilises this information to influence customer's spending patterns. The research method comprised a postal survey to randomly selected customers. The process included the construct of the loyalty model which comprised four input models, namely the Competitiveness, Brand experience, Referral and Credit appeal models as well as a number of customer demographics. The Desert scenario, where extreme conditions exist, is used as the analogy for the Segmentation model, with four macro segments (Desert, Oasis, Sand Storm, Rain clouds) being used to categorise respondents along two criteria, namely that of value and relative risk. Segment characteristics are used to segment the retailer's database. / Business Management / MCom (Business Management)

This study proposes a loyalty segmentation model for the South African men's retail credit fashion industry. Retailers operate in a highly competitive market where competitors strive for share-of-wallet of the same customer. The likely victor in this battle is the retailer who best understands customer needs, purchase behaviour and utilises this information to influence customer's spending patterns. The research method comprised a postal survey to randomly selected customers. The process included the construct of the loyalty model which comprised four input models, namely the Competitiveness, Brand experience, Referral and Credit appeal models as well as a number of customer demographics. The Desert scenario, where extreme conditions exist, is used as the analogy for the Segmentation model, with four macro segments (Desert, Oasis, Sand Storm, Rain clouds) being used to categorise respondents along two criteria, namely that of value and relative risk. Segment characteristics are used to segment the retailer's database. / Business Management / MCom (Business Management)

The maritime sector plays an important role in economies across the globe. Ports in particular are the backbone of the economy of countries endowed with shorelines as they facilitate foreign trade through the importation and exportation of goods to and from their domestic markets. South Africa’s latest addition to its complimentary ports system, the Port of Ngqura, is positioned as a container transshipment hub and a gateway port to Africa with its world-class infrastructure and deep-water container berths at 18 metres, the deepest on the African continent. Ports, whose main mandate is the container commodity, struggle to retain customers as the container industry is a fickle one. As a result, the retention of transshipment container cargo customers remain a challenge for ports. In recent years, ports have to compete more aggressively for their participation in major logistics networks and these days, the ports of the same region are increasingly competing with each other. There are clusters of ports with the same type of supply located within a region competing with other clusters of ports in other regions. The main objective of this study was to propose a customer retention framework for the Port of Ngqura to be used as part of the marketing strategy to possibly retain customers, grow market share and to increase profits. The study focused on the effect of components such as value proposition, customer service quality, customer satisfaction, customer relationship management and customer loyalty on customer retention. After the exercise of testing statistical reliability, the researcher established that the measuring instrument for the component of value proposition was deemed unreliable and therefore, does not necessarily lead to customer retention for the Port of Ngqura. Nunnally (1978) recommends that instruments used in basic research have reliability of 0.70 or higher. The Cronbach Alpha score for the value proposition measuring scale was 0.41, which is below the recommended 0.70. The measuring instruments of the remaining four components of customer service quality, customer satisfaction, customer relationship management and customer loyalty as influencers of customer retention proved to be reliable due to the Cronbach Alpha score being above the recommended 0.70 for all four measuring instruments. In conclusion, this study showed the importance of customer retention and more importantly, how the mentioned reliable four components affect customer retention at the Port of Ngqura. Recommendations were presented by the author on how to integrate the components of customer retention into a retention framework that can contribute to the profitability of the port. The findings of this study led to the recommendation of the need for the Port of Ngqura to firstly, incorporate customer retention into overall marketing strategy and to thus be aggressive as customer relationship building is crucial in retaining customers and growing market share in today’s competitive port environment. Secondly, the port needs to segment its target customers, it is recommended that the target market be well defined, understood and segmented based on industry (shipping line, clearing and forwarding agency, fruit, automotive or wool) and amount of volumes and revenue brought to the Port of Ngqura. Thirdly, leadership involvement as at the strategic level of Transnet Group and Transnet National Ports Authority, executive leaders need to be involved in the implementation of customer retention for marketing of the port as they are the ones that have a high delegation of authority when it comes to decision making. It is also recommended that the measurement of success be clearly defined and linked to the objectives for the implementation of customer retention. The marketers and the Port of Ngqura, using customer relationship strategies, should devise ways of measuring loyalty to the port and the brand, the reputation of the port, service quality and customer satisfaction. Employee training is the most critical recommendation as they must be well trained and equipped to execute their duties, they must be knowledgeable about the maritime industry as well as the business of their customers, fully understand their customers’ needs and have customer empathy. Ports can also improve service quality by focusing on port and terminal efficiency by conducting benchmark studies with high ranked ports like the Port of Singapore as they are known for high levels of efficiency in the market. By improving service quality, the port will improve customer satisfaction and achieve customer loyalty and ultimately, retention.

Submitted in compliance with the requirements for the Doctorate in Philosophy: Management Science (Marketing), Durban University of Technology, Durban. South Africa, 2017. / 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. / D

Submitted in fulfillment of the requirements of the Degree of Master of Technology: Marketing, Durban University of Technology, 2012. / The aim of this study is to investigate service quality at retail banks, such as Standard Bank, ABSA Bank, First National Bank and Nedbank in Durban. The four objectives of this study are set as: Firstly, to identify the level of satisfaction with customer service received from different retail banks in Durban; Secondly, to identify customers’ expectations in terms of quality services provided by retail banks; Thirdly, to ascertain the perceptions of customers towards the service provided by retail banks in Durban; Fourthly, to measure the gaps between customer expectations and perceptions of service quality, using a modified version of the SERVQUAL model. The instrument used to assess the retail bank customer’s expectation and expectations of service quality, was the SERVQUAL questionnaire, measuring expectations and perceptions according to five quality dimensions. A total of 448 students were surveyed. Quota sampling was used in this study, in order to improve representativeness. Using quota sampling involves selecting the characteristics that are required in the sample and then sampling until enough representatives of each category are achieved. Although this is a form of non-probability sampling, a quota sample can provide a good approximation to a probability sample. It means that distributing questionnaires to a certain group would be stopped after the prescribed quota is reached. Data were analysed using descriptive and inferential statistical techniques. Conclusions and recommendations were thereafter drawn from the literature and the findings of the study. The study shows that retail bank customer expectations of service quality exceeded their perceptions in the five service quality dimensions used in the SERVQUAL questionnaire. This study is also important because it will assist bank managers to convert negative perceptions to positive impressions. Consequently, customers will benefit from the improved, outstanding customer service.