Drivers of customer equity within the smartphone market in South Africa.
Date
2014-08-01
Authors
Larkan, Robert John.
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Abstract
ABSTRACT
The speed at which technology is progressing forces organisations to constantly evaluate their marketing approach to become or remain successful. The multitude of smartphone options available to the consumer when selecting a device encourages manufacturers to move away from marketing a product and instead adapt their approach to market to the customer. Customer equity led marketing strategy concentrates an organisation’s attention on the core drivers that increase a firm’s profit earned from customers over their lifetimes.
The purpose of this study is to assess the customer equity performance of smartphone manufacturers in South Africa. The objective is to determine the drivers and sub-drivers of customer equity, measure their relative importance and evaluate the manufacturers performance against these drivers.
Literature and qualitative interviews with local industry experts were used to determine the drivers and sub-drivers for South Africa specifically. This formed the basis for the quantitative measurement instrument in a mixed methodology approach. A sample of 136 respondents, who purchased a smartphone in the last 2 years, completed the online survey. Data was collected on the importance of the drivers and sub-drivers and the relative performance of the smartphone brands against the customer equity drivers.
Descriptive statistics were used to analyse and interpret the data qualifying the drawn conclusions. The main drivers of customer equity were determined as value equity, brand equity and relationship equity, with value equity broken down into quality and price. Quality carries the highest importance for customers. The results of the individual sub-drivers and the brands performance therein are further explored. Recommendations were made thereafter to the smartphone manufacturers to improve their performance in the South African smartphone market.
Description
MBA 2014
Keywords
Customer equity -- Management,Smartphones