- Title
- The influence of customers’ culture on sales promotions and store equity for pick n pay stores South Africa and Zimbabwe
- Creator
- Musekiwa, Albert
- Subject
- Consumer behaviour
- Date Issued
- 2019
- Date
- 2019
- Type
- Thesis
- Type
- Doctoral
- Type
- PhD
- Identifier
- http://hdl.handle.net/10948/44565
- Identifier
- vital:38144
- Description
- The store industry is globally the main distribution channel for grocery items to reach final consumers. Specifically for South Africa and Zimbabwe the store industry greatly contributes to the countrys economic growth. However, increasing competition in developed countries has forced store chains with a competitive edge in terms of promoting their brands and building market share such as Walmart and Spar to expand into the growing African market. Concomitantly, growing African store chains such as Choppies of Botswana are moving into new African markets such as South Africa and Zimbabwe. Following this increasing competition, Pick n Pay a leading store chain in South Africa has responded by opening stores in African townships and other African countries such as Zimbabwe. This has resulted in Pick n Pay customers’ cultural diversity, and how to build and maintain market share through effective promotional and brand building strategies being areas of concern. Therefore the primary objective of this study is to determine the influence of Pick n Pay customers’ cultural orientations on their buying behaviour towards monetary- and non-monetary sales promotions and store equity in South Africa and Zimbabwe. From a comprehensive literature review, a hypothesised model was developed to determine the customers’ cultural orientations that might influence the buying behaviour towards monetary- and non-monetary sales promotions and Pick n Pays store equity in South Africa and Zimbabwe. Four customers cultural orientations were investigated namely, ubuntu/unhu, power distance, uncertainty avoidance and status consumption. This quantitative research approach study sought the perceptions of Pick n Pays customers on their cultural orientations, buying behaviour towards monetary- and non-monetary sales promotions and on store equity in South Africa and Zimbabwe. A survey was conducted with the aid of a structured hardcopy questionnaire, distributed via fieldworkers in both countries using a combination of convenience- and snowball sampling. A final usable sample of 500 respondents was obtained. The items in the questionnaire were validated by conducting exploratory factor analysis, where after the Cronbachs alpha values were calculated for each of the valid constructs to confirm inter-item reliability. Descriptive statistics in the form of frequency distributions was used to summarise the demographic profiles of the respondents and to describe the means and standard deviations of the valid constructs. The Pearsons product moment correlations revealed moderate correlations between monetary- and non-monetary sales promotions as well as non-monetary sales promotions and store equity in the full sample, and for the South African and Zimbabwean samples. Moderate correlation was also found in South African sample between Ubuntu ubuntu/unhu cultural orientation and non-monetary sales promotions. Multi-collinearity diagnostics testing was conducted prior to multiple regression analysis to confirm that there is no evidence of collinearity between the independent-, mediating- and dependent variables. The multiple regression analysis revealed eight statistical significant relationships between the independent-, mediating- and dependent variables for the full sample while for the South African and Zimbabwean samples four and nine were found respectively. Although the full sample and Zimbabwean sample had similar statistically significant relationships, the relationship between an uncertainty avoidance cultural orientation and store equity was unique to the Zimbabwean sample only. There was only a statistically significant relationship between a power distance cultural orientation and store equity for the South African sample. Structural equation modelling was used as the main statistical procedure to test for mediation in the study. Only two relationships found in the multiple regression analysis were not confirmed in the structural equation modelling results, namely the relationships between an confirmed in the structural equation modelling results, namely the relationships between an uncertainty avoidance cultural orientation and monetary sales promotions, as well as with non-monetary sales promotions. Six path relationships were confirmed in the structured equation modelling. These statistical significant path relationships were between an ubuntu/unhu- cultural orientation with monetary- and non-monetary sales promotions, as well as with store equity. A statistical significant path relationships were also found between a status consumption cultural orientation with non-monetary sales promotions and store equity. The sixth statistical significant path relationship was between non-monetary sales promotions and store equity. Furthermore, SEM confirmed full mediation of monetary sales promotions in the relationship between a status consumption cultural orientation and store equity. On the other hand, there were partial mediations of non-monetary sales promotions in the relationships between an ubuntu/unhu and status consumption cultural orientations with store equity. The SEM results also confirmed that the data fits the complete model. Multi-variant analysis of variance was carried out to determine if respondents’ demographic profiles influenced their cultural orientations and buying behaviour towards monetary-and non-monetary sales promotions. Post-hoc Scheffe tests identified sixteen statistically significant mean differences between the demographic data groups and the cultural orientation and sales promotions variables. Subsequently, the Cohens d analysis confirmed thirteen practical significant relationships, of which only three had large practical significance. Based on the MRA and SEM confirmed relationships, several suggestions are made. Ubuntu/Unhu and status consumption cultural orientations influenced buying behaviour towards non-monetary sales promotions. For ubuntu/unhu orientated customers, it is suggested that Pick n Pay keeps its non-monetary sales promotions open and accessible to most customers and sponsor more popular events such as competitions for baking, cooking and soccer. To target status consumption orientated customers, Pick n Pay should position its non-monetary sales promotions in line with their expectations such as promoting healthy living to appeal to its healthy conscious customers. Pick n Pay should also avoid making price the focal point when communicating to status consumption orientated consumers but rather focus on image building selling points such as store service. For ubuntu/unhu orientated customers, Pick n Pay should underscore the interdependence value in its communication of monetary sales promotions by offering monetary promotions with benefits for all family members. To entrench brand equity, Pick n Pay should engage ubuntu/unhu brand ambassadors from influential family members, friends and community groups such as church groups and provide after-sales service using 24hr customer service hotlines and social media to promote customer interaction any time of the day. Pick n Pay must consider entrenching the status consumption health conscious customers into interaction between themselves or the store through chatrooms or clubs to make sure they remain loyal to the store. It is recommended that Pick n Pay conduct non-monetary sales promotion by creating awareness campaigns for its organic and finest private brands in their Fresh Living Magazine so that customers have product knowledge and encourage them to become regular buyers. In-store distribution of product samples can also help build interest in the brands. Furthermore, employing data mining techniques on customer databases provided in Smartshopper and Rich Rewards loyalty programmes can help understanding specific target customer groups and developing target marketing campaigns. For status consumption orientated customers, Pick n Pay can incentivise the adoption of online shopping through sales promotions such as free delivery for first time shoppers. The store can also have personalised free rewards for its most loyal customers. For ubuntu/unhu orientated customers, it is recommended that Pick n Pay engage in corporate social responsibility that target the needy in the society such as donating to elderly and orphanages and request their customers to donate their loyalty points to charities of their own choices. It is suggested that Pick n Pay promote excellent service and a wide variety of quality products to ensure their status consumption orientated customers remain loyal to the store. They can also offer a suggestions box for these customers to make them feel heard. Their employees should be selected based on contemporary skills such as digital- and green marketing and healthy living product knowledge and they should train their current employees on these areas to enable addressing customers’ queries confidently. This study has added to scarce academic literature on customers’ cultural orientations, sales promotion buying behaviour and store equity in Africa in general. From the hypothesised model developed in this study, a significant contribution has been made in the body of knowledge on the influence of customers’ culture on buying behaviour towards sales promotions and store equity, especially in the retail field for stores such as Pick n Pay. This study was also the first to identify the major role demographics can play in customers’ cultural orientations and sales promotion buying behaviour. The recommendations can be useful to assist with developing marketing strategies suitable for any retail store such as Pick n Pay which wants to venture into African markets.
- Format
- xxix, 568 leaves
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Business and Economic Sciences
- Language
- English
- Rights
- Nelson Mandela University
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