Vehicle related crime and future sales in the South African automotive industry

Abstract

This research was a cross-sectional study aimed at discovering the impact of vehicle related crime on future sales in the South African automotive industry. The product was a framework to help managers and marketing practitioners in the automotive industry to realise that vehicle related crime was an aftermarket experience of their customers. The research suggested initiatives that can be used to mitigate against potential negative consequences of vehicle related crime on future vehicle sales. From extant literature and the theory of planned behaviour, hypotheses were developed about the relationship between vehicle related crime and future sales. Measurement scales were developed and used to design a self-administered online survey for collecting experiential data from the industry’s customers. Constructs of interest were analysed using structural equation modelling. Structural equation modelling was a parametric statistical technique that was executed using statistical software such as SPSS Amos Version 26, SPSS Statistics Version 25 and R-Studio. Maximum likelihood estimation was chosen in the software packages during analysis to generate statistical parameters that were used to make inferences about the collected experiential data. There were some insights gleaned from the research results. Confirmatory evidence was found which showed that vehicle related crime induced trauma in individuals. It was estimated that 34.5% of the trauma symptoms present in economically active South Africans could be attributed to vehicle related crime. The results showed that trauma drove an inclination towards substituting the use of motor vehicles with alternative means of transportation. It was also deduced from statistical parameters and the current state of various transport modes in South Africa that users of automobiles did not yet see a viable, safe and flexible alternative. This became a constraining factor on their ability and perceived control with respect to switching or reducing their intention to purchase motor vehicles in the short to medium term. However, managers in the automotive industry were advised to commission further and more granular research to understand the impact of crime on their brands and the individual models within their portfolios. The contribution of this research was a framework for further research and a tool to help managers, marketing practitioners and planning professionals in the South African automotive industry to become aware of the potential threat of vehicle related crime to their future business.