4. Electronic Theses and Dissertations (ETDs) - Faculties submissions

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    Determinants of User Growth in B2C E-Commerce Platforms in South Africa
    (University of the Witwatersrand, Johannesburg, 2024) Viljoen-Nel, Liesl; Ochara, Nixon
    Globally, e-commerce has grown exponentially, especially during the COVID-19 pandemic, since people were forced to stay at home and shop online. South Africa has also experienced e-commerce growth, and the e-commerce penetration rate is forecasted to accelerate from 27 million registered e- commerce users in 2022 (43.5%) to 39.7 million registered e-commerce users by 2027 (64%). These statistics show that retailers will need targeted activities to ensure user growth in their e-commerce platforms since the competition between retailers to obtain e-commerce customers will intensify as it becomes a dominant sales channel in South Africa. This exploratory study investigated the "Determinants of User Growth in business-to-consumer (B2C) e-Commerce Platforms in South Africa" through the unique application of an academic (UTAUT2) and a practitioner model (AARRR). This study is the first South African study on e-commerce user growth. It is exclusive as existing literature mainly studies behavioural intention to use and use behaviour of information systems. However, it fails to address user growth, a critical component of information systems' retention and continuous use intention. This aim of this study was to understand the factors that impact use behaviour from a consumer perspective and, ultimately, user growth on e- commerce platforms in the fast-moving consumer goods industry specific to South Africa. A quantitative survey was conducted through a non-probability convenience sampling process from March to July 2023. Electronic survey links were distributed via e-mails, social media posts and online messaging services to reach a sample frame of 7,386 prospective respondents. Completed questionnaires were received from 743 respondents. After a data cleansing and rescaling procedure, the data from 550 respondents were analysed in a phased approach using exploratory factor, regression, correlation and moderation analyses. ii The independent variables accounted for 65.12% of the total variance in the UTAUT2 model, and performance expectancy and facilitating conditions emerged as the strongest predictors of behavioural intention. Neither age, gender, nor experience had a moderating impact on the independent variables and behavioural intention. Behavioural intention, however, significantly influenced user growth, as the customer transitioned from activation to retention to referral and the revenue phases of the user growth construct. Retention was the dominant factor in the user growth construct, explaining 18.66% of the total variance in the data. Revenue showed the highest correlation with behavioural intention, demonstrating that consumers will use a platform if they benefit from the transaction. Customer satisfaction moderated the relationship between behavioural intention and user growth, and facilitating conditions and user growth. This result demonstrates that customer service and support are instrumental in promoting user growth in B2C e-commerce platforms. South African customers have adopted B2C e-commerce platforms and have transitioned from the acquisition to the retention phases of the customer life cycle. However, shopping online in South Africa has not become a habitual activity or a necessity, which could be attributed to the availability of plenty of shopping malls with brick-and-mortar retailers throughout the country. It is recommended that retailers use data-driven insights to design targeted marketing activities for each phase of the purchase life cycle to strengthen behavioural intention and trigger user growth in B2C e-commerce platforms. The study makes a meaningful contribution to the South African digital commerce literature by concluding with practical recommendations that managers can apply to designing, implementing, and managing B2C e-commerce platforms in the fast-moving consumer goods or other consumer packaged goods industries.
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    The impact on brand product sales of transitions from traditional to digital marketing solutions
    (University of the Witwatersrand, Johannesburg, 2023) Sekati, Moseki
    A lot of FMCG companies have been investing money in marketing activities with the aim of improving their business sales turnover, and this has been seen in both traditional marketing and digital marketing. However, literature show that there has been lack of knowledge on which strategy, digital or traditional, to invest in and what their benefits are. This study serves to address the identified research gap with regards to FMCG companies in South Africa. The main objective of this study is to investigate the positive effect of investment, implementation and understanding of digital marketing on financial performance. This study engages a quantitative research approach and collection of data through a research questionnaire that was constructed to answer the research questions. A causal design with a purposive sampling technique was used to collect data from a sample size 100 participants. The data was analysed using SPSS. The research findings had 4 out of 5 the hypotheses that were found to be significant, and another 6 th additional hypothesis that was computed. These hypotheses proved that investment in digital marketing; implementation and utilization of digital marketing have a positive impact on financial performance; and utilization of traditional marketing has a positive impact on financial performance. The 6 th computed hypothesis test showed that financial performance has an impact on preference for digital marketing. Companies in the FMCG and students in marketing can benefit from the finding of this study. This study makes recommendations for future research for understanding or knowledge of digital marketing, and what other important operations are a benefit of digital marketing
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    Marketing strategy and business profitability in the South African FMCG industry
    (University of the Witwatersrand, Johannesburg, 2023) Lephoko, Thembelihle Philladelphia; Quaye, Emmanuel
    This paper reviews the lay of the land of the FMCG Industry and identified technological challenges, intense competitor rivalry, and evolving consumer needs and demands as contributors that need to be considered during decision-making and marketing strategy development; an important force behind companies delivering profits. Big data analytics has gained widespread recognition as a revolutionary technology in both the academic and business arenas. With more companies launching initiatives dedicated to its implementation, there is still a lot of doubt regarding its potential to transform its operations. Through a literature review, the study revealed key factors of big data analytics and marketing strategy that influence profitability for South African FMCG companies, and it was furthe underpinned by a conceptual framework to test the relationship between the identified factors and profitability, all in the effort to implement the identified factors and constructs effectively. A cross-sectional quantitative study was executed to establish whether big data analytics has a significant relationship to profitability, furthermore, the study tested the usefulness of big data on marketing strategy as well as the rate at which it impacts profitability. The study was conducted on 150 individuals, with 88.1% of them being marketing professionals. SPSS was used as a statistical tool to test the hypotheses that were identified through the literature review. The key findings of this study recommends that FMCG companies focus their efforts on adopting an organizational culture that supports the usage and adoption of big data in decision-making, underpinned by the right technical and managerial skills to extrapolate actionable insights from the data, and forming them part of the marketing strategy process. The findings of the study will open South African FMCG companies’ eyes to the capabilities and benefits of big data and how their marketing strategies can be enhanced for greater organizational impact
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    Effectiveness of cause-related marketing strategies within the fast-moving customer goods (FMCG) industry in South Africa
    (University of the Witwatersrand, Johannesburg, 2022) Moeti, Louwella
    It has become incumbent upon businesses to make a difference in society and their communities. To fill this requirement, many businesses associate themselves with a cause that makes a difference in society, resulting in cause-related marketing (CRM). This study sought to investigate the effectiveness of CRM strategies within the South African fast-moving consumer goods (FMCG) sector. More specifically, the study sought to examine the attributes that lead to the successful implementation of CRM in the South African FMCG sector, to determine the factors which lead to favourable responses towards CRM in the South African FMCG sector and to develop a framework for successful implementation of CRM in the South African FMCG sector. The research was conducted through a quantitative approach, where data collection was done through a web-based survey. The target sample size was 300 consumers aged 21 to 45, after which 150 responses were deemed useful. The sampling method adopted by the study were the convenience and snowballing sampling where every available subject was asked to complete the survey. The study established a strong and definite correlation between the type of product and customer support, duration of a partnership and customer support, donation amount and customer support, and the product's price and customer support. The study's findings offer knowledge and insights into the factors that drive effective CRM strategies within the South African FMCG sector. Based on the findings, it is recommended that companies be strategic on the type of product used in CRM initiatives; keep product price at a minimum; double the donation amount and support the same cause for longer.