Nadine Cynthia Sonnenberg

The Influence of Well-Being on Consumers’ Future Discounting Practices in the South African White Goods Industry: An Abstract

This study explores the distinctive South African marketplace in focusing on satisfaction of life (SOL), social well-being (SWB) and environmental well-being (EWB) as determinants of consumers’ willingness to forego immediate gratification and consider the long-term implications of their prepurchase evaluation and selection of major household appliances. Household appliances (collectively referred to as “white goods”) impact on the use of natural resources from the initial production throughout the entire lifespan of the product. In recent years, the local white goods industry has shown substantial growth as more households attain economic well-being and converge into an aspiring middle-class segment. As an emerging economy, South Africa is distinguished by economic growth potential, increasing consumption and an ecological footprint that matches high income industrialized countries. Yet, it also differs from more developed nations in terms of extreme levels of income inequality and diverse living standards, which provide impetus for the pursuit of well-being among local consumer populations. It is postulated that consumers who have attained economic well-being, affluence and SOL with high levels SWB (i.e. an appraisal of circumstances and functioning in society) and EWB (i.e. a lifestyle that reveres environmental harmony) will be less likely to engage in future discounting practices (FDP) whereby they prioritize more immediate concerns such as cost of the appliance as opposed to features such as energy consumption that has long-term consequences for the environment, larger population and future generations.

Consumers’ Eco-Friendly Choices in the South African White Goods Industry: An Abstract

As an emerging economy, South Africa (SA) is characterized by a growing economy and increased consumption levels that have harmful environmental consequences. Currently, SA produces among the highest greenhouse gas emissions per unit of gross domestic product (GDP) in the world (OECD 2013), and its energy needs surpass that of several developing countries. This has in part stemmed from the government’s continued service delivery and public housing schemes that transferred an estimated 11 million people from informal settlements into approximately 3 million homes that were built between 1994 and 2010. Efforts are ongoing, which offers substantial growth potential in the SA white goods industry (PwC & Economist Intelligence Unit 2012). Yet, as many households converge into an aspiring middle-class segment and acquire appliances for the first time, efforts are needed to endorse energy efficiency and environmental sensitivity in consumers’ choice of product. Based on the aforementioned arguments, this study was focused on determining consumers’ prioritization of eco-friendly attributes in their evaluation and selection of appliances in the SA white goods market. A structured questionnaire comprising various sections was developed and pretested for this study. Sawtooth conjoint software was used to create trade-off tasks whereby respondents could jointly compare several product attributes in order to select the best possible option. Washing machines served as an appropriate product for these tasks, because they require more resources for production but include state-of-the-art technology to ensure optimum eco-efficiency (Euromonitor International 2013). Apart from energy, these appliances require the use of water and chemicals that have severe implications for SA’s critically strained water resources. The choice set for the trade-off tasks (i.e., attributes and attribute levels) was guided by an extensive review of catalogues, brochures and websites of appliance manufacturers/ retailers. A non-probability sampling approach based on judgement and convenience was used to recruit 648 consumers who were in the process of shopping for appliances in prominent retail outlets within the geographical scope of Tshwane. The aggregate conjoint results indicate that consumers across various age, income and educational levels prioritize brand and price, notwithstanding the lasting financial and environmental repercussions of eco-friendly features. Respondents’ prioritization of attributes formed the basis of four clusters that were labelled as brand buyers (n = 114), price punters (n = 178), energy investors (n = 104) and the indecisive shoppers (n = 252). Brand buyers prioritized brand (39 %) and price (21 %), whereas price punters regarded price as notably more important (40 %) than any other attributes. The energy investors prioritized energy ratings (25 %), although they regarded price almost equally important (22 %), which suggests the importance of cost implications in their decision making. These findings indicate that marketers cannot exclusively rely on consumers’ willingness to compromise on non-environmental product attributes for the sake of the environment. Indecisive shoppers were less confident in their prioritization of product attributes as none of the attributes seemed particularly important (<20 % importance rating). Campaigns that are focused on increasing environmental awareness and the benefits of pro-environmental alternatives may benefit this cluster in particular.