Factors driving customer equity in the green vehicle market in Johannesburg, South Africa

Abstract

ABSTRACT This research aims to clarify drivers of customer equity within the green vehicle market in Johannesburg, South Africa. According to Rust, Zeithaml, and Lemon (2001) there are three main drivers of customer equity, namely value equity, brand equity and retention equity. Each of these main drivers has its own unique set of sub-drivers which are identified in chapter 2. The conceptual framework around the research was to clarify the success of passenger green vehicle sales and the reason for their relative success. The research methodology chosen for this study is qualitative. Key industry experts were approached and data was collected. From the data, themes and categories were identified and elaborated upon. Proposition 1 is stated as follows: The main drivers of customer equity within the green passenger vehicle market in Johannesburg South Africa is value and brand equity drivers. From the data collected, it is apparent that both value and brand equity are significant drivers of customer equity in the green vehicle market, however they do not act alone, retention equity is present but to a lesser degree. Proposition 2 stated: Efficiency and Price will be the strongest sub-drivers of value equity. The value equity sub drivers of efficiency and price are influential in driving customer equity, however range and performance sub-drivers are also significantly influential. Therefore the research paper concludes that all three drivers of customer equity are present in the sales passenger of green vehicles, however the most influential are brand and value. From value equity, both price and efficiency are strong sub-drivers but so too are range and performance.