Wits Business School (ETDs)

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    Customer retention strategies for the prepaid mobile telecommunications sector in South Africa
    (University of the Witwatersrand, Johannesburg, 2010) Flynn, Teresa; Peters, Mark
    This study will propose ways in which companies can focus retention strategies in the local prepaid mobile telecommunications sector. Currently there is little academic literature on this topic, even though in-house marketing research has been done by the operators. The purpose of this research is to investigate the customer retention strategies in the prepaid mobile telecommunications sector in South Africa. This will be done by triangulation of what consumers believe is important in their retention, what the organisations deem as paramount, and what retention experts state are the motivators of retention. Data was collected using both a survey questionnaire for consumers, and through face to face interviews with marketing management at mobile telecommunications operators, as well as independent expert consultants on the topic of customer retention. The findings from this study were that the consumers want to keep the same cell phone number as it is part of their identity. The customer looks at the total offering when considering pricing, and not just certain costs, and prefers a prepaid model as spending is controlled in this manner. Both consumers and management agree that rewards and loyalty programs are seen as a value add, especially where they offer instant gratification. A reliable product is necessary for a consumer to stay with the company, as is accessibility to support and other products. Management realises that the total customer experience across all touch points is a retention enabler, with one really bad experience being enough cause for a customer to churn. The consumer survey indicated that customer service is a driver that all market players need to improve on. An organisation's brand allows a consumer to identify with the firm, and is more a pull factor than a push factor, unless it is perceived as dishonest or unethical. The only time a consumer's demographics came into play regarding customer behaviour was age making a difference was when using a cell phone to access the internet -older age brackets use it sparingly if at all. Although other value added services such as SMS and MMS are used across the board. Companies model consumer behaviour, and base it on data from previous churners to identify possible churners. Of these, only profitable churners are then recognised for retention campaigns. Retention campaigns are measured for success. The prepaid market makes up 80% of the mobile telecommunications market in South Africa, and the revenue they contribute is approximately 35% of the total. Therefore this customer base should not be neglected or ignored. Due to the demographics of emerging markets, prepaid offerings are the way of the future. The research paper finishes with several recommendations on how to enrich customer retention strategies for the prepaid mobile communication market.
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    The influence of Entrepreneurial Capital on the performance of subcontracting SMMEs in Gauteng, South Africa
    (University of the Witwatersrand, Johannesburg, 2019-03) Rampa, Mmatsatsi; Galawe, Jabulile
    This study explores the prospect of entrepreneurial capital in stimulating SMME performance. It seeks to investigate the use of non-financial capital (entrepreneurial capital) in SMMEs registered under the CIDB, in the general building sector, and its influence on SMME performance. It unpacks the two dimensions of entrepreneurial capital which are entrepreneurial commitment and entrepreneurial competence. This study is a quantitative research, based on a positivism research paradigm. The survey structured research instrument was collected using Qualtrics. The primary data, with a sample size of 377, was distributed using emails and was consolidated via Qualtrics. The data analysis and interpretation was based on descriptive analysis, correlation analysis, exploratory analysis and multiple linear regression analysis. The study was initially designed to analyse the two dimensions (entrepreneurial competence and commitment) collectively with their antecedents (opportunity, relationship, conceptual, organising and strategic competencies); and (normative, continuous and affective commitment) respectively. The survey findings could not converge into a clear multi-dimensional factor structure for each construct. Hence the analysis could only be undertaken at the dimensions level without breaking them down any further into their sub-sets. Entrepreneurial competence was the only one of the two that emerged as the statistically significant predictor of SMME performance. However, both dimensions had a positive influence with business performance, though entrepreneurial commitments’ influence was weak and not statistically significant. SMME owners/managers should continuously advance and assess their specific entrepreneurial competence in order to positively influence their business performance. Policy makers, training and support programmes should align content to specific entrepreneurial competence.