Factors influencing the selection of environmental inpact services in South Africa
Date
2011-03-10
Authors
Simpson, Ainsley
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Abstract
The environmental consulting industry in South Africa is still in a growth phase, and
the dominant service offering is that of Environmental Impact Assessments (EIA).
Understanding consumer behaviour in the purchase process of environmental
services will enable service providers to effectively target and service their desired
markets.
This research examined factors influencing the selection of EIA Consultants in South
Africa, specifically in the pre-purchase phase. This included determining the nature of
the service offering and the related perceptions of risk as well as the information
sources consulted and criteria used as risk reducing strategies. The research was
conducted by means of a structured written survey, which was completed by 77
respondents across South Africa.
The research revealed that EIA’s are experience offerings, that is, they are easy to
assess after the service has been rendered. It was also determined that the major
factor contributing to the selection process is the multi-faceted nature of the service,
as this can lead to negative reputation-based consequences. One such facet of EIA’s
is the length of time required to complete the process. Temporal risk was found to be
the most dominant concern, followed by financial risk, specifically the incurrence of
unforeseen costs. It was established that consumers consult personal non-marketer
controlled information sources as a method of reducing risk; most notably,
consultants known to the developers through previous experience. Reliability,
represented largely by tangible criteria, and reputation, comprising less tangible
criteria, were found to be the factors underlying the evaluation of environmental
consultancies.
The research highlighted the need for EIA Consultants to understand the buying
behaviour of their target market to effectively understand and manage perceived
risks. Tangible indicators of reliability and reputation that address these risk areas
must be a central theme in any direct marketing strategies developed. Furthermore,
continuous improvement of processes and systems is essential such that a healthy
reputation, based on sound experience, can be developed and maintained well into
the future.
Description
M.B.A. - WBS
Keywords
Environmental impact services, South Africa