African Market Research Articles

Generation Y consumers' wearable activity-tracker adoption intention: applying the theory of planned behaviour

The growing demand for wearable activity-tracking devices with an increasing number of manufacturers entering the industry has led to a progressively competitive global WAT market. The emerging South African market is manifesting as an important target market, particularly the sizable Generation Y consumer segment with their known affinity for technological devices. Appealing to this segment necessitates having a clear understanding of their adoption intentions of such devices. In addressing this, this study applied an adapted version of the theory of planned behaviour to determine the influence of subjective norms, perceived behavioural control and attitudes on South African Generation Y consumers' WAT adoption intentions. A descriptive research design guided the study and the results obtained from a sample of 462 respondents indicate that this adapted version of the theory of planned behaviour is an effective forecasting tool for their behaviour. This, in turn, gives rise to several managerial and theoretical implications.

Exploring the precursors and outcome of trust in a retail banking context: An emerging African market perspective

Exploring the precursors and outcome of trust in a retail banking context: An emerging African market perspective

Demystifying Customer Perception of Electric Vehicle Adoption in South Africa Using the Technology Acceptance Model

Electric vehicles are becoming increasingly popular and mainstream in today's world. One reason for this is the demand for vehicles with zero carbon footprint. Fossil fuels are extremely harmful as they endanger the planet and produce much toxic pollution. Therefore, using the Technology Acceptance Model, this study analysed customers' perceptions of electric vehicle adoption in South Africa. The Technology Acceptance Model has evolved into a critical model for understanding predictors of human behaviour towards potential technology acceptance or rejection. The first determinant is perceived usefulness, followed by perceived ease of use, cost and user attitude toward electric vehicles. Because EVs are new in the South African market, this study adapted this model to understand the customers' attitudes, perceptions, and benefits that EVs bring. The findings of this study show that most prospective customers had significantly agreed that perceived ease of use, perceived usefulness, attitude, and cost influence their intention to buy electric vehicles. This study's findings could benefit automobile industries, fleet purchasers, and private owners considering transitioning to low-emission vehicles. Electric vehicles will play a significant role in the future, and their adoption can help reduce dependence on fossil fuels. By understanding South African customers' perceptions, attitudes, and the barriers they face in adopting electric vehicle technology, this study could provide valuable insights to stakeholders in the automotive industry by enabling them to make informed decisions and develop strategies for promoting electric vehicle adoption.

Asset pricing models in South Africa: A comparative of regression analysis and the Bayesian approach

<abstract> <p>This study investigated the risk-return relationship using the Capital Asset Pricing Model (CAPM), Carhart four-factor Model (C4FM) and Fama and French Multifactor Models (FFMMs): F3FM and F5FM. This study analyzed the JSE ALSI returns of the South African market, in relation to the risk factors constructed by the data of twenty-six emerging markets, over the sample period from October 2000 to October 2021. The methodology employed was a comparison of the conventional regression analysis and novel Bayesian approach. Regression analysis estimated by Ordinary Least Squares (OLS) is one of the foremost methods used in South Africa. However, such an approach does not take into account the properties of the price data, namely, the asymmetric, volatile and random nature. While the Newey-West adjustment is one way to assist in capturing autocorrelation and volatility, it fails to consider asymmetry. The Bayesian approach accounts for all the aforementioned properties, overcoming the fundamental flaws of regression analysis. The additional model diagnostics highlighted in this study improved the Bayesian approach' robustness. The risk factors of the FFMMs estimated by regression analysis, with and without the Newey-West adjustment, were insignificant, whereas the Bayesian test results were significant. This finding clearly highlighted that model choice impacts the significance of parameter estimation and the financial decisions of investors, firms and policymakers. Jensen's alpha revealed CAPM to be optimal but none of the asset pricing models fully captured the risk premia. Thus, returns should be investigated with different risk measures for future research purposes.</p> </abstract>

The Leadership approach of Chinese Entrepreneurs in Africa: A Case Study of TECNO

The definition of leadership, as popularly conceived, comes from the West. In Chinese culture, the term ‘leadership’ is mainly reflected in the Chinese ‘Confucian culture’. Based on the analysis of the African market of Chinese enterprise ‘TRANSSION’ and its subsidiary TECNO, this article examines entrepreneurial leadership on the basis of Confucian culture. This article discusses the differences in entrepreneurial leadership in the context of traditional Chinese leadership culture vis a vis Western leadership approaches. It argues that the success of Chinese multinationals lies in a unique oriental wisdom that combines modern entrepreneurial ideas with traditional Confucian culture, and continuous improvement and upgrade of corporate practice. Through an analysis of the activities of TECNO and the company’s engagement with the African societies where it operates, this paper sheds light on the leadership of multinational companies in different contexts and the outcomes of their activities.

Speculative ratios and returns volatility in the South African white maize futures market

Speculative ratios and returns volatility in the South African white maize futures market

Anti-selection in voluntary health insurance markets: A focus on medical schemes in South Africa

This paper discusses the role of voluntary health insurance (VHI) in relation to public healthcare systems and universal health coverage (UHC). The paper explores why VHI markets are particularly susceptible to anti-selection. As the largest VHI market globally, the South African medical scheme market is then examined in detail. An overview of the history of the South African healthcare system provides insight into the development of the medical scheme market. Thereafter, an analysis on the impact of anti-selection on medical schemes is conducted using the experience from the largest open medical scheme in the market. The results demonstrate how existing risk mitigation measures are ineffective at protecting medical schemes from the effects of anti-selection, and the subsequent negative impacts of this phenomenon on the industry and the healthcare system as a whole. The paper discusses alternative mechanisms for addressing anti-selection risks and concludes that mandatory membership in some form has the potential to improve the sustainability of medical schemes in South Africa, which will in turn support the country’s transition towards UHC.

Comparison of Multifactor Asset Pricing Models in the South African Stock Market [2000–2016

The quest for parsimonious models has been a key objective in asset pricing. However, there appears to be no consensus on the most successful asset pricing strategy in the literature, especially for the South African Market. Using financial statements from January 2000 to December 2015, this article explores how market anomalies affect the performance of securities in the Johannesburg Stock Exchange’s (JSE’s) resources, industrial, and finance sectors. We investigated the efficacy of several asset pricing models and their capacity to account for market anomalies in the JSE’s resources, industrial, and financial sectors, as well as the applicability of the Fama and French five-factor model. The study used multiple regression techniques and applied stationarity and cointegration methods to ensure robust results. Results also suggest that when the FF5FM is implemented, there is statistical significance at the 10% level for the CMA in the resources sector as the value factor disappears. The FF5FM results in the industrial sector show a significance level of 5% in the SMB. The financial sector seems to have the majority of the style-based risk factors as the SMB is positively significant at a 5% level, the HML is significant at a 1% level, and the CMA is negatively significant at a 10% level of significance. The results suggest that the Carhart Four Factor model is the best to use in all market conditions. Results also show that value becomes redundant in a bullish market, but the opposite holds in a bearish market for a model with operating profitably and investing factors. These findings highlight the necessity for investors to determine which investment risk elements produce abnormal returns in both bearish and bullish market circumstances before investing.

Emergence of Milk Dispensing Machines as a Retail Innovation in Kenya: Trends and Consumer Patterns

African food systems are transforming due to rapid urbanization, growing food demand, and shifting dietary patterns reflected in increased consumption of processed foods. In the informal–formal African market system, shifting consumption trends are linked to various food marketing innovations. This study investigated the emergence of processed milk dispensing machines (“milk ATMs”) in Kenya as a marketing innovation and their effect on consumption trends. Data was collected through surveying 162 ATM operators and 352 consumers and interviewing key informants. Findings indicate exponential growth of milk ATM enterprises, most (79%) of which are small, sole proprietorships. ATM milk is mostly purchased by low- and middle-income consumers, driven by affordability and convenience. ATM milk is 46% cheaper than packaged milk, but 15% more expensive than raw milk. However, perceived safety concerns deter some consumers from buying ATM milk. The study recommends scaling this inclusive business innovation but ensuring it delivers quality milk.

Digital Financial Services and Strategic Financial Management: Financial Services Firms and Microenterprises in African Markets

This study highlights the impact of digital financial services as enhancing the capacity of development goals as well as social sustainability. The selected emerging markets are Ghanaian financial service providers (FSP)s and microenterprise customers (CME)s, where we examine how “Ubuntu”, an African philosophy of humanism, legitimizes spaces for a more democratic, egalitarian, and ethical engagement of human beings. This study adopts a grounded theory methodology for investigation of the phenomena with a sample size of 70 relationship managers. The findings further existing sustainability literature pertaining to social sustainability and consumer wellbeing. We contribute to theory by presenting a psychological perspective which be leveraged for digital financial services branding to expand usage within communal systems. This leverage of Ubuntu becomes especially relevant when there is the need to compensate for deficits in weak business infrastructures in low-income but expanding markets. Our study highlights digital financial services can be used to improve the emotional and psychological consumer wellbeing and to strengthen business relationships, meeting joint goals of market share expansion, brand image enhancement and profitability. This perspective also contributes to social sustainability on a global scale since the Western world depends on quality products from emerging markets.

Assessment of the market potential of African countries

The aim of the article. The purpose of the article is to development of a methodology for assessing the attractiveness of the market of African countries for domestic enterprises. The results of the analyses. The reasons that prevent the development of the African sales market have been identified: the opposition of world power centers; non-transparency of funding and total corruption at all levels of government; low level of technology development; cultural, religious and social contradictions in many countries; complex epidemiological situation; lack of necessary transport infrastructure; low level of population urbanization; low level of literacy. A methodology for assessing the attractiveness of the market of African countries is proposed based on the use of five criteria: potential market capacity, dynamics of market sales, complexity of marketing efforts for the enterprise, project payback terms, product complementarity to the enterprise's current business. Conclusions and perspectives for further research. For successful work in the African market, it is necessary to perform the following actions: make more significant efforts in studying the foreign market and carefully adhere to the principles of marketing; set high requirements for the quality, knowledge, technical level of goods, service, advertising, packaging, design; strictly take into account the requirements of foreign markets, their conditions, potential, opportunities for diversification on it; use close direct relations with foreign consumers, intermediaries, brokers, participate in auctions, fairs and exhibitions, use leasing and other methods that would contribute to the expansion of foreign economic relations; take into account the peculiarities of the global market: the presence of competitors, their prices, terms of sale of goods, volume of sales, advertising, methods of distribution and promotion of goods and services

Eden All Natural peanut butter: A small enterprise competing in a saturated South African market

Subject area of the teaching case: The case is particularly well suited to courses in marketing, promotion, integrated marketing communication, or marketing for small and medium enterprises. Student level: This teaching case is aimed at postgraduate students in management or business programmes. Brief overview of the teaching case: This case focusses on the growth direction and product promotion decisions of Debbie Ncube, cofounder and managing director of Eden All Natural (Eden) - an award-winning small enterprise that competes in the peanut butter category - in 2021. Conservative with the use of the company’s financial resources, Ncube has to reconsider Eden’s reliance on word-of-mouth, social media, and network marketing for promoting her range of natural peanut and other nut-based products. The case requires students to identify and evaluate the growth options available to Eden, to consider the strategy decisions around product line management and brand development, and to explore the role of packaging in effective product promotion. Expected learning outcomes: To develop strategic product-market growth options (using the market diversification matrix) for a growing enterprise To recommend what product line management and brand development strategies can be employed as the product mix gets bigger To explore how packaging could continue to be leveraged to grow sales

WHY SHOULD THE STATE INTERVENE IN THE LABOUR MARKET: THE CASE OF SOUTH AFRICA

Labour remains at the centre of political, social, and economic discourse in South Africa. Two broad perspectives dominate the political discourse as to why the state should intervene in the labour market. The first is the laissez-faire, free-market model,and the second, known as ‘social justice’ –a concept generallyused to justify government intervention and the distribution of resources –is a perspective that stresses the need for social justice in the workplace in a variety of ways. This article explores which of these views will best protect workers –referred to in the context of the inadequacy of the contract as a mechanism to regulate the employment relationship –in an ever-changing South African labour market characterised by poverty, unemployment, inequality, the growth of the informal economy, an inflow of migrants, the digitalisation of the economy, and the impact of the Covid-19 pandemic. The author concludes by supporting the view that upholds social justice in the workplace.

Linking resource slack to operational resilience: Integration of resource-based and attention-based perspectives

With limited empirical evidence, prior research suggests resource slack as a fundamental feature of resilient operations and supply chains. This study draws insights from the resource-based theory to empirically examine the relationship between resource slack and operational resilience. The attention-based view of the firm is then used to argue that while resource slack may be an essential feature of operational resilience, its effect is mediated by organizational attention under varying conditions of strategic mission rigidity. These arguments are tested on primary data from 259 firms in a sub-Saharan African market, Ghana. Contrary to conventional wisdom, findings show that resource slack is not directly related to operational resilience. Rather, the study finds that the contribution of resource slack in driving operational resilience is channeled through organizational attention. Results further show that this indirect path is strengthened under conditions of low strategic mission rigidity. In expanding and clarifying extant literature on the resilience implications of resource slack, therefore, this study explains how operations and supply chain managers can combine organizational attention with low strategic mission rigidity conditions to convert resource slack into enhanced operational resilience outcomes. • Resource slack is not directly related to operational resilience. • Resource slack improves operational resilience through organizational attention. • Strategic mission rigidity weakens the organizational attention-resilience link.

Central bank policy rate announcements and high-frequency intra-day benchmark stock returns reaction dynamics: Evidence from South Africa

ABSTRACT This paper investigates the chronological impact of South African Reserve Bank (SARB) repo rate announcements on the Financial Times Stock Exchange/Johannesburg Securities Exchange (FTSE/JSE) All Share Index (ALSI) returns and returns volatility. Covering the period 2012–2021, the study employs the ‘event study’ approach, a risk augmented generalised autoregressive conditional heteroscedasticity (GARCH-in-mean) model, and high-frequency intra-day 1-minute stock quotes during narrow windows to avert (or minimise) data contamination problems – endogeneity bias and coinciding effects of other exogenous variables on the stock market around the repo rate announcement time. In line with a priori expectations, there is an inverse relationship between stock returns and repo rate surprises (or unexpected repo rate changes). And consistent with findings in developed economies, our econometric results show that the reaction of the South African (SA) stock market to repo rate surprises is swift, indicating a high degree of ‘mechanical efficiency’ in respect to central bank policy rate surprises. But the delayed returns volatility response mirrors that of findings in the scant empirical literature on emerging markets. Evidence of both time-varying risk-return and time-varying degree of ‘informational efficiency’ is consistent with the adaptive market hypothesis (AMH).

Tracking the Performance of Listed Shares: A Comparison Between JSE Single- and Dual-listed Shares

The measurement of a stocks return over a time period is analysed for several reasons. The most obvious and most important one is to inform investors’ expectations regarding future earnings potential. Therefore, the study made a comparison using the financial performance of single-listed shares versus dual-listed shares that trade primarily on the South African stock market (JSE). The time-period for the comparison of financial performance of single- and dual-listed shares was from 2005 to 2020 to confirm or refute the general perception surrounding superior returns of dual-listed companies as opposed to single-listed companies. Utilising financial ratios can be imperative when making informed judgments about investment portfolios. Seven of the most important financial ratios were used to measure the performance of company shares within nine specified industry sectors in South Africa. These included the earnings per share ratio (EPS), price-earnings ratio (P/E), market to book value ratio (M/B), current ratio (CR), debt to equity ratio (DER), and the return on equity ratio (ROE). The nine identified industries included the transport, consumer staples, printing, pharmaceutical, mining and manufacturing, technology, luxury goods and services, financial services, and real estate industries. The results indicate that the dual-listed companies do indeed outperform single-listed companies on the JSE for the majority of the financial ratios over the specified period. This study contributes to portfolio management by informing equity allocation in the short-term and long-term.

The Responsiveness of Liquid Fuel Price towards COVID-19 and Exchange Rate Fluctuations

The petrol price plays an important role in all types of business and economic activities, especially in South Africa. The outbreak of the COVID-19 pandemic and the volatility of the exchange rate are some of the current challenges in the South African economy and these factors might have significant implications on domestic petrol fuel prices. In the last two years, the petrol price has experienced a drastic increase in the South African commodity market. The current study investigated the effect of the COVID-19 pandemic and exchange rate fluctuations on petrol prices in South Africa for the period between March 2020 and June 2022. The autoregressive distributed lag (ARDL) model was employed to establish the long-run and short-run relationship between COVID-19 new infections, exchange rate and petrol price in South Africa. The result revealed that both exchange rate and COVID-19 infections negatively influence the petrol price in the long run. However, in the short-run exchange rate has a positive impact on petrol price while the latter is negatively affected by increases in COVID-19 new cases of infection. To maintain a steady state of petrol prices and reduce the impact of petrol price fluctuations, the study recommends the implementation of monetary policies that strengthen the domestic currency accompanied by social awareness programmes on COVID-19 management.

Using Formative Evaluation Research in the Development of Electronic Media Programmes

TELEVISION producers have specific demands when asked about the types of insight they would like to gain from media research. In this paper an overview of the literature on "pilot programme testing" is given, and the technique of formative evaluation research on educational television is discussed. The latter technique was adapted for programme research on entertainment program ming in South Africa to address the specific needs of television and radio producers. Using three different methodologies, including measur ing audience reaction second by second, and "focus group" discussions, valuable insight In audience response have been gained. The results of this research suggest immediate practical implementation thereof, bringing the media researcher and media practitioner closer together. Dr D.P. van Vuuren is Head: Broadcasting Research at the SABC and Dr J.J. de Beer is Head: Media Effects Research of the Institute for Communication Research of the HSRC. The article was presented at the ninth Conference of the South African Marketing Research Association, Vanderbijlpark, November 1987.

Penthouse, Hustler & Playboy in South Africa’s neoliberal nineties

ABSTRACT The nineties saw the lifting of sanctions in South Africa which implied an influx of brands that needed appropriate spaces to advertise their wares. For this reason, and the virtual end of censorship, this was the ideal context for international men’s magazines to enter the South African market. Hustler, Penthouse and Playboy all started South African editions as the country transitioned into democracy, manifestly contributing to a globalising of the local, sexual imaginary. The origin story of each publication is told here as a documentation of the “Americanisation” of sex in nineties South Africa, meaning, the way sexual representation was standardised via print capitalism and a postfeminist ethos. The article investigates the ways in which these publications engaged with psycho-affective discourses of progress in order to further and normalise a nationalism caught between the dream of decolonisation and the reality of globalisation.

Situation of Earning Management After Revision of the Ohada Accounting Standards Adopted on January 26, 2017

Following the mandatory adoption of the revised OHADA Accounting Standards that have moved closer to the International Financial Reporting Standards (IFRS), this study examines whether the level of Earnings Management of Companies making public offers or listed firms, in the West African Stock Exchange Market Abidjan-Ivory Coast (BRVM) has reduced. The study avails of Financial Statement figures during pre-adoption (2014–2017) and post-adoption (2018–2021) periods, for 26 selected listed firms in the BRVM. Findings suggest that firms in the post-adoption period of the revised OHADA Accounting Standards (2018–2021) are less likely to smooth earnings compared to the pre-adoption period (2014–2017). This indicates that adopting accounting standards of higher quality can bring an improvement in Financial Reporting Quality, everything being equal.