The influence of customer touch-point digitalisation on customer perceived value in the South African vehicle and asset finance market
Date
2022-02
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Abstract
This research undertook to address the lack of clarity on whether customer touch point digitalisation influences the formulation of CPV in the context of a VAF product and employed a conceptual framework based on the PERVAL scale. Customer touch-point digitalisation was hypothesised to have a significant positive influence on all three dimensions of CPV, namely functional (price), functional (quality) and emotional.
The population studied was South African residents who were 18 years or older and had purchased a VAF product in the past, the total population size was approximated at 2,3 million. Convenience sampling was used and a final sample size of 281 was attained. A quantitative research methodology was adopted for this study. Data was collected by means of a self-administered online questionnaire and SmartPLS 3 and IBM SPSS Statistics 27 were used for analysis.
The study found that customer touch-point digitalisation has a significant positive influence on all the dimensions of CPV, this influence being the strongest on functional value (quality) and weakest on functional value (price). Moreover, the study found that age and gender do not significantly moderate the relationship between customer touch-point digitalisation and CPV.
This study found that the higher a VAF provider’s level of customer touch-point digitalisation the more favourably customers will perceive the VAF provider’s value propositions. Some recommendations emanating from this study are that VAF providers should aim to increase their level of customer touch-point digitalisation to gain a competitive advantage, they should also incorporate customer touch-point digitalisation into how they prioritise initiatives for investment. VAF providers with high levels of customer touch-point digitalisation should incorporate this into their integrated marketing communication plans and messaging to customers. VAF customers should take a VAF provider’s level of customer touch-point digitalisation into account when deciding on which VAF provider to use.
Description
A research report submitted in partial fulfilment of the requirements for the degree of Masters of Management (in the field of Digital Business) to the Faculty of Commerce, Law and Management, University of the Witwatersrand, Johannesburg, 2022
Keywords
Customer touch-point digitisation, Consumer perceived value, Vehicle and asset finance, UCTD