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AFTERMARKET DISC BRAKE PADS: FACTORS DRIVING DEMAND

Mrs Shamola Pramjeeth

MANCOSA

Academic Lecturer

26 Samora Machell Street, Durban, KwaZulu Natal, South Africa, 4000

Tel: +27 31 3007200

Email: shamola.pramjeeth@mancosa.co.za

and

Mr Vikash Rajkumar

Federal-Mogul Corporation

Sales and Supply Chain Manager OE/OES/Exports

Friction Products (Pty) Ltd

Prospecton, Durban, KwaZulu Natal, South Africa

Tel: +27 31 9133557

Fax: +27 31 9025168

Email: vicky.rajkumar@federalmogul.com

KEY WORDS: Price, Branding, Advertising, Social-cultural, Corporate Image

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ABSTRACT

The purpose of this paper is to identify the factors which influence buying behaviour and consequently

demand for aftermarket disc brake pads in KwaZulu Natal, South Africa. A cross sectional causal ex post

factor research design survey was undertaken, in KwaZulu Natal, to explain the effect the independent

variables of pricing, advertising, brand characteristics, manufacture / consumer relationships and social

cultural factors had on the dependant variable, demand. The results of the study indicate that corporate

image, brand characteristics and social cultural factors had the largest and most significant influence on

consumer behaviour. Advertising, in particular, word-of-mouth was singled out as being the most

dependable source of information acquisition and had the greatest influence in the consumer‟s decision-

making process when compared to the other advertising mediums such as television, magazines and

newspapers. The effect of country of origin and manufacturer / consumer relationships on the consumer‟s

decision to purchase produced a neutral bias, while price had little or no significant effect on the purchase

decision.

INTRODUCTION

Given the current industry and economic environmental conditions where opportunities are in

abundance and threats real, companies will need to take cognisance of factors that influence consumer

decision making. Upon researching, it was ascertained that the local management at Smartbrake had limited

knowledge of the actual factors influencing sales and affording them market leadership and formulate

strategies to take advantage of the opportunities and protect it against the threats. When management was

consulted to establish the reasons for this phenomenon, no convincing or substantiated answers were

forthcoming, citing the brand, quality and good sales force as the reasons for market dominance. One way

to perhaps achieve sustainability and market leadership is to begin to fully understand the decision making

process that underlies the purchase of aftermarket disc brake pads, by its target market. The above insights

could be lacking in the friction industry because the majority of the firms, including SmartBrake, are of the

opinion that the target market, in most segments, purchase the cheapest pad on offer. It is paramount for

management to understand the factors that influence successful decision making for attaining future growth

and competitive advantage. Research undertaken by Aftermarket Business (2005 & 2006), established that

65% -75% of vehicle owners preferred to handle their own vehicle repairs, purchase their own service parts

and have these service parts fitted by service centres.

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OBJECTIVES OF THE STUDY

The objective of the research was to identify the significant characteristics of the consumer, which

influenced buying behaviour and consequently the demand for aftermarket disc brake pads in South Africa.

The following factors were examined to ascertain the impact it had, in influencing purchase behaviour.

To establish if price, advertising, corporate image, country of origin, brand

characteristics, social cultural factors and manufacturer/consumer relationships plays a

significant role in a consumer‟s decision to buy a set of disc brake pads.

HYPOTHESIS

H1: It is hypothesised that the independent variables described in the objectives

play a significant role in the demand for aftermarket disc brake pads.

LITERATURE REVIEW

Salvatore (2004) advocates that a firm‟s demand for its commodity is based on the price of the

commodity, the size of the market, consumer‟s income, the price of related commodities, tastes, price

expectations, the promotional efforts of the firm and competitors (Salvatore, 2004).

PRODUCT PRICE AND PRICING

Nisel (2001) in his study on consumer characteristics and their influence on buying behaviour

confirmed that price was one of the three major determinants for consumer purchases, the other two being

product availability and quality. The results of the study revealed that availability and quality of a commodity

was revered as the most significant factors for their decision to purchase. Surprisingly, price was found to be

less significant as a source of the buying decision (Nisel, 2001). These findings could support SmartBrake‟s

pricing structure, which is possibly based on the perceived value and psychological pricing models by Kotler

and Keller (2005). This is particularly relevant to the friction industry, as premium brands tend to suggest an

assured quality and performance guarantee, which then permits it to command a premium price, inferring a

higher quality product. This trend was confirmed by research conducted by an independent market

researcher, which revealed that SmartBrake‟s products were well received in the taxi market segment, and

most consumers agreed that the company‟s brands are of an excellent quality (intrinsic) and were prepared

to pay the premium price for the perceived higher quality product (intrinsic value) (Naidoo, 2004). Kotler and

Keller (2006) indicates that the relationship between, price and demand is normally inversely related but

concurs that on luxury and safety critical items, consumers sometimes correlate higher prices with a

significantly higher quality product.

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WORD-OF-MOUTH (WOM)

Research has consistently shown the importance of consumer word-of-mouth in a purchase

decision-making context. It has largely been recognised as a powerful force affecting consumer choice,

loyalty and switching behaviour. Further studies have also illustrated the influence it has to enhance and

reduce the risk associated with the buying decision (Wangenheim and Bayόn, 2004). These inferences are

consistent with surveys conducted by the Aftermarket Business Research Company where it was found that

WOM to be the number one reason given by the target market for purchasing a particular commodity. This

behaviour is also positively correlated with research conduct by Naidoo (2004) where it was established that

the mode of information acquisition, in particular WOM, was significantly correlated to the decision to

purchase the commodity in question, taxi disc brake pads.

SOCIO – CULTURAL FACTORS

Kotler and Keller (2005) established that purchase decision is influenced by social factors such as

reference groups, family and social roles/status and individuals rely a great deal on society to shape their

beliefs, values and norms and ultimately their behaviour. This behavioural characteristic maybe pertinent in

the purchase decision for disc brake pads as this product is regarded by society to be a safety critical

component and stopping a moving vehicle when the need arises could be life saving such that interpersonal

influence can greatly affect the purchase decision for this commodity. This statement is consistent with a

study conducted by Naidoo (2004) on the buying behaviour of taxi disc brake pads in South Africa, which

revealed that 39.9% of the respondents agreed and 42.5% of the respondents strongly agreed that they

would be influenced by their social groups and community leaders to purchase a certain brand of product if it

is recommended by them.

RELATIONSHIP MARKETING

Researchers have continually confirmed the correlation between satisfaction and repeat buying, greater

brand loyalty and spreading a positive opinion of the product (Dubrovski, 2001). This construct of

relationship marketing may play a significant role in the friction industry as recent focus group studies

conducted by SmartBrake revealed that the consumer held customer value at a higher cognition level than

first believed by the organisation (Nainaar, 2006). It was discovered that consumers used this construct

greatly in their decision to buy. It was revealed that the company‟s brand, when compared against the

competitor‟s brand, in the same market segment, offered no extra peripheral or extrinsic benefit for the

premium price that it commanded. Participants of the focus group stated that the competitors‟ brands offered

more tangible value for a considerably lower price (Nainaar, 2006).

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CORPORATE IMAGE

According to Ricks Jr (2005) research by Keller and Aaker (1995) revealed that corporate image has

a direct effect on perceptions of product quality, while Brown and Dacin (1997) confirmed that corporate

associations, which includes corporate ability and corporate social responsibility, also affects a products

evaluation, which may subsequently result in changes to a consumers buying actions (Abratt and Mofokeng,

2001). This is consistent with the findings of Netemeyer et al., (2001), which established a positive

correlation between the organisational association of being a “good corporate citizen” and the consumer‟s

related willingness to pay a price premium for a related brand.

COUNTRY OF ORIGIN

Wang and Chen (2004) found that products from developed countries are perceived as more

superior to products from undeveloped and developing countries. The existence for this phenomenon could

be attributed to consumers societal group influence, “country of origin image”, WOM etc (Laroche, et al.,

2005). It was found that for both well-known and unknown brands, unfavourable country-of-manufacture

information produced a significant effect on both product beliefs and global product evaluations (Hui and

Zhou, 2003).

BRAND CONSTRUCTS

Brands signal quality levels to consumers, and can be effectively used to gain a competitive

advantage and secure financial returns (Grace and O‟Cass, 2002). To the consumer, a brand identifies the

source of the product, which in turn, assigns responsibility to the product maker and provides a promise or

bond with the maker of the product. In addition, brands reduce consumer search costs and the consumer‟s

perceived level of risk. It also signals the quality of the product. The brand, therefore, becomes the purveyor

of advantages to the consumer, in terms of both economic and symbolic value (Grace and O‟Cass, 2002). In

respect of brake pads, a survey by Naidoo (2004) revealed that 78.6% of the respondents strongly agreed

that they would be willing to purchase a brake pad brand that demonstrated the products acclaimed benefits

and their defined image.

ADVERTISING

Consumers canvassed, revealed that from the eight main communication mediums used for

advertising, television, magazines and the press were perceived to be most effective in communicating

corporate and brand image. The Web was perceived to be the most reliable source for brand information,

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product information and two-way communication, while radio advertisements was alleged to be the most

annoying and deceiving (Calisir, 2003). Researches have also investigated other factors that may have an

influence on the advertising effect. Namely: relationship marketing and attraction programmes, social-

cultural influences - country specific, execution style, consumer involvement and standardisation across

borders. In line with the above statement, a study on consumer involvement and advertising effectiveness in

the automotive components industry, Wu (2001) according to Naidoo (2004) found that: There is a positive

relationship between the degree of consumer involvement and advertising content importance and there is a

positive relationship between the degree of consumer involvement and the advertising effect.

OVERVIEW OF THE RESEARCH METHODOLOGY

A formal research design approach was adopted, incorporating a causal ex post facto design format

(Cooper and Schindler (2005). Subjects‟ responses were acquired by using a structured questionnaire so

that the proposed hypothesis could be empirically and statistically explained. To ensure a 95% level of

statistical confidence and to eliminate non-response, 426 questionnaires were distributed to the 5 spares

outlet identified in the sample frame and a total of 221 were completed and returned for analysis. A cluster

sampling technique was chosen to collect data from the target population, i.e. the do-it-yourself (DIY) market

segment and the professional mechanic of KwaZulu Natal. The province was divided into 3 regions - North

Coast, South Coast and Inland. The 3 regions were further divided into 5 sub-regions and the busiest spares

outlet from each of the 5 sub-regions was chosen so that data could be collected in a relatively short space

of time. The instrument was pilot tested and feedback produced was used to amend and include questions

to ensure greater content validity and collected data reliability. Factor analysis (KMO Measure of 0.714) and

Cronbach‟s coefficient alpha, measuring 0.823, indicated that the measuring instrument employed, was both

statistically valid and highly reliable. The data was analysed using SPSS computer programming. Both

descriptive and inferential statistics were used to analyse the data to determine the objectives.

RESULTS OF THE STUDY

THE IMPACT OF PRICE ON PURCHASE BEHAVIOUR

From Figure 1 below, it is evident that 49% disagreed and 28% strongly disagreed, while 16.3%

were undecided, 1.3% strongly agreed and 4.6% agreed. Hence, there is strong evidence that the cheapest

brake pad was not usually purchased. Also, according to the beta coefficients obtained in the multiple

regression analysis Table1 below, product price attained the lowest value. This implies that, relative to the

other variables, respondents deemed product price to have the lowest influence on their willingness to

purchase disc brake pads. This is consistent with the findings of the Aftermarket Business Research

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Table 1 Stepwise Multiple Regression

Multiple R

Multiple R Square

Adjusted R Square

Std. Error of the Estimate

VARIABLE BETA p

Brand Characteristics 0.364 0.000

Advertising 0.274 0.000

Social Cultural factors 0.271 0.000

Corporate Image 0.211 0.000

Manufacturer / Consumer relationships 0.179 0.000

Country of Origin 0.150 0.000

Price 0.089 0.000

0.9960

0.9930

0.9930

0.0311

Company (2006), which listed price as being a marginal determinate for the purchase of brake pads. From a

list of 5 factors; price was listed as the 4th most important determinant for the purchase of a particular

manufacturers brand, while recommendation (WOM) was revered as the most important factor (Aftermarket

Business, 2005 & 2006). The above finding is compatible with that of Agarwal and Teas (2002) and Naidoo

(2004) where, research has revealed that consumers are willing to pay a higher price for a commodity if it is

deemed to be a safety critical item or for its inherent perceived quality – price sacrifice (value for money).

These surveys by Aftermarket Business Research Company and findings by Agarwal and Teas (2002) and

Naidoo (2004) support the findings of this study that price does not play a significant role in the consumers

decision to buy a set of aftermarket disc brake pads.

THE IMPACT OF ADVERTISING ON PURCHASE BEHAVIOUR

In response to questions based on the advertising media (Figure 2), 67.3% and 66.7%, of

Figure 2 The Impact of Advertising

0

10

20

30

40

50

60

Perc

enta

ge

Res

pons

e

Television Auto Magazines /

New spapers

Any Magazine /

New spaper

Medium

Impact of Advertising Media

Strongly Disagree Disagree Neither Agree Strongly Agree

Figure 1 The Impact of Price

28.8

49

16.3

4.61.3

0

10

20

30

40

50

Perc

enta

ge (%

)

Res

pons

e

STRONGLY

DISAGREE

DISAGREE NEITHER AGREE STRONGLY

AGREE

Measurement Scale

Impact of Price - Percentage (%) Response

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respondents agreed that they would be persuaded to buy a certain manufacturer‟s brand if it were advertised

on television, automotive magazines and newspapers. With respect to advertisements in any newspaper and

magazine, respondents had a relative equivalent purchase bias. The results generated indicate that, 40% of

the respondents will not be persuaded to buy a manufacturer‟s brand advertised in any magazine or

newspaper, 31.2% indicated that they would be persuaded, while the remainder (28.8%) were undecided.

The above results are consistent with research conducted by Goldsmith and Lafferty (2002), where it was

established that from the eight main communication media used for advertising; - television, magazines and

newspapers were perceived to be the most effective means of communicating the desired brand message,

which consequently led to influencing the purchases decision. The Web was perceived to be the most

reliable source for brand information, product information and two-way communication, while radio

advertisements were alleged to be the most insipid advertising format.

The preceding findings according to the marketing experts could be based on the link between

advertising and building brand value via its positioning and the medium in which it is advertised (Baca, et al.,

2005). Baca, et al., (2005) established that the purchase decision could be significantly influenced for a

particular brand if it creates mental and emotional associations, as well as perceived brand quality, with the

target market. This could infer that the medium used to convey brand value could be vital in creating the

desired brand image and therefore societal image, which could account for the results obtained in this study.

These statements are corroborated by the research findings of Goldsmith and Lafferty (2002), where it was

establish that commodities advertised on TV, in magazines and in newspapers produced more sales and

awareness than other advertising mediums. These mediums (TV, magazines and newspapers) were also

deemed to portray a higher hierarchical brand and societal image. The other important medium that also

needs to be validated for its contribution to influencing the purchase decision is word-of-mouth (WOM), as it

produced the highest agreement score for the factor - advertising.

WORD-OF-MOUTH AND ITS EFFECT ON INFLUENCING PURCHASE BEHAVIOUR

Figure 3 below indicates that 61.75% of respondents agreed that they would be willing to buy brake

pads recommend by friends and the sales assistants. A study by Naidoo (2004) produced similar results,

where 92.4% of respondents indicated that their brand choice was acquired by WOM. This is consistent with

results produced by the Aftermarket Business Research Company (2006), where WOM was listed as the

number one reason for purchasing aftermarket brake pads.

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Research within this filed supports the above statements. Several researchers have discovered that

people are more likely to trust ideas that come to them through their immediate circle of friends, family and

colleagues (Wangenheim and Bayo´n, 2004:1177). From the above-presented literature and survey results,

it can be concluded that advertising and in particular, its mediums, play a significant role in persuading the

consumer to buy a certain manufacture‟s brand of disc brake pad.

THE IMPACT OF CORPORATE IMAGE ON PURCHASE BEHAVIOUR

Results generated from the analysis of this factor (corporate image) indicated that it was considered

as the most important factor in their final decision to purchase a particular manufacturers‟ brand of disc

brake pad. Eighty nine point three percent (58.5 % + 30.8%) of the respondents agreed that the constructs of

corporate image would influence their purchase decision. There is ample evidence in the literature that

supports the effect of corporate image on consumers purchase behaviour. Abratt and Mofokeng (2001)

identified social responsibility, ethical behaviour and involvement in community affairs as the major

constructs in developing and managing corporate image in South Africa. A study by Christensen and

Askegaard (2001) complimented the above finding by discovering that an organisation‟s identity and its

reputation in society are of utmost importance in building positive corporate image. Finally, Singhapakadi, et

al., and Singhapakadi, et al., (1999), in comparing perceptions between Australian, Malaysian, South African

and American markets research findings revealed that ethics and social responsibility of organisations were

of critical importance to South African consumers.

Figure 4 The Impact of Corporate Image

0.9 2.57.4

58.5

30.8

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Per

cen

tag

e (%

)

Res

po

nse

STRONGLY

DISAGREE

DISAGREE NEITHER AGREE STRONGLY

AGREE

Scale

Response Percentage (%) for Corporate Image

Figure 3 The Impact of Word-of-Mouth (WOM)

4.910.15

23.2

48.7

13.05

05

101520253035404550

Perc

etag

e (%

)

Resp

onse

STRONGLY

DISAGREE

DISAGREE NEITHER AGREE STRONGLY

AGREE

Scale

Response % for WOM Influence

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Hui and Zhou (2003) and Ricks Jr (2005) determined that corporate associations, which includes

corporate ability and corporate social responsibility, also affects a products evaluation, which may

subsequently result in changes to a consumers buying actions. Hence based on the literature findings, a

significant amount of a consumer‟s purchase behaviour and their decision to purchase is reliant on the

image portrayed by the respective organisations. This is consistent with the results generated from the

analysis of survey, as illustrated in Figure 4, above.

COUNTRY OF ORIGIN (COO)

The influence of this aspect on the study‟s objective was small, as 58.3% of the respondents were

undecided if brake pads manufactured in other countries will persuade them to buy. However there was a

higher inclination towards COO effect than against, 26.8% versus 14.3%.

Supporting the first statement above, research by Ahmed, et al., (2004) revealed that in the presence of

other extrinsic product cues, the influence of COO is expected to be less pronounced than that of brand,

price, corporate image etc., this is because brand price and corporate image have been found to have a

greater influence than COO for high involvement consumer products. Brake pads are deemed to fall within

this category, as discussed in the literature review. To support the later statement, research by Hui and Zhou

(2003) have established that the COO concept does have an effect on a consumer‟s perception of products

and hence consumption. Ahmed et al., (2004) believe that this can be accredited to the fact that consumers‟

use COO as an attribute in products, typically to infer the quality of the product. These conclusions are

corroborated by (Balabanis, et al., 2002) where it was determined that the image of a COO has a significant

impact on consumers‟ judgements of product quality and therefore their willingness to buy a particular brand

of product (Speece and Nguyen, 2005 and Laroche et al., 2005).

BRAND CHARACTERISTICS

Figure 5 The Impact of COO

1.7

12.6

58.8

22.9

3.9

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Percentage (%)

Response

STRONGLY

DISAGREE

DISAGREE NEITHER AGREE STRONGLY

AGREE

Scale

Response Percentage (%) for Country of Origin

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Brand characteristics in this study incorporate the following constructs; - brand equity, brand image, brand

awareness, perceived quality, brand loyalty and brand identity. Figure 6 highlights that 69.8% (51.3 + 18.5)

of respondents indicate that brand characteristics played a major role in the decision to purchase aftermarket

brake pads. Research by Sui and Wong (2002) on perceived product safety concluded that products with

familiar brand names are perceived as having a higher level of product quality and safety than those with

unfamiliar brand names, which inadvertently influences the consumer‟s purchase behaviour (brand identity).

Naidoo (2004) corroborates this finding with results form his survey, revealing that that 78.6% of the

respondents strongly agreed that they would be willing to purchase a brake pad brand that demonstrated the

products acclaimed benefits and their defined image. According to the Annual Consumer Attitude Study

(2003, 2004, 2005) on brakes and buying habits, 68% to 70% of respondents indicated that they would be

likely to purchase a brand of brake pads based on its long lasting reputation and performance (perceived

quality). Also, results from a brake brand importance survey, conducted in the USA (Hampshire, 2004)

indicated that when a desired brake pad brand is unavailable, 35% of respondents revealed that they would

go elsewhere to look for it and 26.8% of respondents replied that they were willing to wait for it (Brand image

and Brand loyalty). The literature and independent surveys therefore support the findings of this study where

51.3% of respondents agreed and 18.5% strongly agreed that brand characteristics play a significant and

influential role their purchase behaviour and ultimately their willingness to purchase particular manufactures‟

brand of aftermarket disc brake pads.

SOCIAL CULTURAL FACTORS

According to Figure 7, the impact of social cultural factors, positively accounts for 64% of the variance in the

consumers‟ decision-making process, to purchase a certain manufacturer‟s brand, of disc brake pads.

A study conducted by Naidoo (2004) on the buying behaviour of taxi disc brake pads in South Africa, which

revealed that 39.9% of the respondents agreed and 42.5% of the respondents strongly agreed that they

would be influenced by their social groups and community leaders to purchase a certain brand of product if it

Figure 6 The Impact of Brand Characteristics

4.810.5 14.9

51.3

18.5

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Percentage (%)

Response

STRONGLY

DISAGREE

DISAGREE NEITHER AGREE STRONGLY

AGREE

Scale

Response Percentage (%) for Brand Caharcteristics

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is recommended by them. This is supported by Kropp, et al., (2005), who revealed that this interpersonal

influence could be used to shape consumer behaviours and ultimately their decision to purchase. Kotler and

Keller (2006) share similar opinions and believe that this influence exists because individuals rely a great

deal on society to shape their beliefs, values and norms. The literature and independent surveys therefore

confirm the effect of social cultural factors on the willingness to purchase disc brake pads.

MANUFACTURER / CONSUMER RELATIONSHIPS

Figure 8 below indicates that there is a fairly equivalent consensus on the part of the consumer with respect

to manufacturer / consumer relationships and the influence it has in their overall buying decision of

aftermarket disc brake pads. Thirty-nine point two percent (39.2%) is uncertain whether this factor plays a

significant role in their decision to purchase. While 41.5% of the respondents agree that these factors will

strongly influences their purchase behaviour, (19.4%) disagree with the majority. Research has continually

shown that, the potential benefits for both, the manufacturer and consumer are greater, with the

development of direct relationships. The benefits exhibit its self as, reduced waste; increased profitability and

greater customer satisfaction, with the final outcome being repeat purchases (Endo and Kincade, 2005).

Supporting the above findings, research by Wirtz and Chew (2002) ascertained that companies who

adopt this proactive stance on forming and managing customer relationships, produce positive influences

towards their brand. This was confirmed by a study conducted by Naidoo (2004) where the relationship

Figure 8 The Impact of Manufacturer / Consumer Relationships

5.2

14.2

39.233.4

8.1

0.05.0

10.015.0

20.025.030.035.040.0

Percentage (%)

Response

STRONGLY

DISAGREE

DISAGREE NEITHER AGREE STRONGLY

AGREE

Scale

Response Percentage (%) for manufacturer / Consumer Relationships

Figure 7 The Impact of Social Cultural Factors

3.09.3

24.2

51.8

11.8

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Percentage (%)

Response

STRONGLY

DISAGREE

DISAGREE NEITHER AGREE STRONGLY

AGREE

Scale

Response Percentage (%) for Social Cultural Factors

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between manufacturer and end user was defined as being one where the manufacturer consults the end

user to discuss likes and dislikes of the product, arranges demonstrations of brake pad performance and

involves the end user in free brake pad testing. The following statistics were extracted from his survey of 330

taxi owners. Thirty point eight percent (30.8%) agreed and 64.9% strongly agreed that this defined

relationship would persuade them to purchase the participating manufacturer‟s brand of disc brake pads.

From the above-presented literature and survey results, it can be concluded that manufacturer / consumer

relationships plays a significant role in persuading the consumer to purchase a certain manufacture‟s brand

of disc brake pad.

Table 2, below, concurs that respondents considered the chosen variables to be significant with

respect to the overall purchasing decision for aftermarket disc brake pads in South Africa. This is evident,

because of the „mean‟ values, for the key variables, being in line with their individual descriptive statistics.

For the price variable, the mean value tends towards the „disagree‟ option in the likert scale, while the mean

values for other 6 factors, tends towards the „neutral‟, „agree‟ and „strongly agree‟ option in the Likert scale,

confirming that country of origin and to a lesser extent, manufacturer / consumer relationships is held, at

neutral bias towards it‟s effect on the decision making process, while price is still not considered to

significantly contribute to the consumer‟s decision to purchase. These statistics indicates that corporate

image followed by social cultural factors, brand characteristics, and advertising, play an important role in

persuading the consumer to purchase a certain manufacturers‟ brand of disc brake pad, while price was

deemed to have a limited effect in influencing the consumer‟s purchase decision. Finally, these statistics

provide evidence of a clear stand taken by respondents in terms of agreement or disagreement to questions

posed in respect of aftermarket disc brake pad purchases. To further corroborate this statement, inferential

statistical techniques were employed to the key variables to test the stated hypothesis.

INTER-CORRELATIONS AMONG KEY VARIABLES

Table 2 Statistical Representations of the Key Variables Impacting on Consumer Buying Behaviour.

VARIABLE MEANSTANDARD

DEVIATIONMINIMUM MAXIMUM

CRITICAL

RANGE

Price 2.01 0.87 1.00 5.00 1.87 - 2.15

Advertising 3.30 0.67 1.50 5.00 3.19 - 3.41

Corporate Image 4.16 0.52 2.50 5.00 4.07 - 4.24

Country of Origin 3.15 0.49 1.00 4.67 3.06 - 3.22

Brand Characteristics 3.41 0.43 2.13 4.50 3.34 - 3.48

Social Cultural factors 3.60 0.66 1.75 5.00 3.49 - 3.71

Manufacturer / Consumer

relationships 3.25 0.59 1.00 4.33 3.15 - 3.34

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The analysis of the study concentrated on defining the individual relationship of the respective key variable

and its effect on the consumer‟s willingness to purchase. However, a study by Naidoo (2004), investigating

the impact of similar key variables on the purchase behaviour for taxi brake pads, revealed that besides the

typical individualistic relationship, inter-correlations between the key variables also existed, which may as

well significantly account for the variance in the consumers willingness to purchase a certain brand of disc

brake pad, hence, an inter-correlation analysis was conducted on the key variable of this study to verify the

above statement.

The following results were obtained, confirming the previous statements. Table 3 illustrates that

there is a negative association between price and corporate image at 5% level of significance but a positive

relationship with price and brand characteristics at a 1% level of significance. Similarly, relationships exist for

the following variables at a 1% and 5% level of significance:

Advertising and Corporate Image, Country of Origin, Brand Characteristics, Social Cultural

factors and Manufacturer / Consumer relationships

Corporate Image and Country of Origin, Brand Characteristics and, Social Cultural factors

Country of Origin and Brand Characteristics, Social Cultural factors and Manufacturer /

Consumer relationships

Brand Characteristics and Price, Corporate Image, Country of Origin, Social Cultural factors

and Manufacturer / Consumer relationships

Social Cultural factors and Manufacturer / Consumer relationships

Pri

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Ad

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Co

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Ori

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Bra

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Ch

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So

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tors

Ma

nu

fac

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rela

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s

Pearson Corrrelation (r) 1 0.157 -0.178* 0.100 0.227** 0.118 0.014

p 0.053 0.028 0.217 0.005 0.145 0.864

Pearson Corrrelation (r) 0.157 1 0.329** 0.211** 0.397** 0.636** 0.322**

p 0.053 0.000 0.009 0.000 0.000 0.000

Pearson Corrrelation (r) -0.178* 0.329** 1 0.274** 0.582** 0.354** 0.143

p 0.028 0.000 0.001 0.000 0.000 0.077

Pearson Corrrelation (r) 1 0.211** 0.274** 1 0.310** 0.190* 0.185*

p 0.217 0.009 0.001 0.000 0.019 0.022

Pearson Corrrelation (r) 0.227** 0.397** 0.582** 0.31** 1 0.397** 0.213**

p 0.005 0.000 0.000 0.000 0.000 0.008

Pearson Corrrelation (r) 0.118 0.636** 0.354** 0.190* 0.397** 1 0.171*

p 0.145 0.000 0.000 0.019 0.000 0.034

Pearson Corrrelation (r) 0.014 0.322** 0.143 0.185* 0.213** 0.171* 1

p 0.864 0.000 0.077 0.022 0.008 0.034

Country of Origin

Price

Advertising

Corporate Image

** Correlation is significant at the 0.01level (2-tailed)

* Correlation is significant at the 0.05 level (2-tailed)

Brand Characteristics

Social Cultural factors

Manufacturer / Consumer

relationships

Table 3 Inter-Correlation Amongst the Key Variables of the Study

15

Therefore, it would be advisable to conduct a full review of the above relationships and ascertain if

these inter-correlations between the key variables of the study, is supported by academic evidence, which

accounts for the variance in the consumer‟s willingness to purchase a certain manufacture‟s brand of disc

brake pad in South Africa.

Multiple regression analysis was used to test for statistical significance, that the key variables of the

study, played a significant role in affecting demand, for aftermarket disc brake pads. The information

presented in Table 1, earlier, indicates that 99.3% of the variance in the factors influencing demand for

aftermarket disc brake pads in KwaZulu-Natal (KZN) can be attributed to the 7 key variables of the study.

The negligible difference of 3.11 % is due to factors that are not part of the jurisdiction of this study.

The beta loadings are graphically represented in Figure 9; to illustrate the relative impact that each of key

variables has on demand for aftermarket disc brake pads (AMDBP) in KZN and possibly South Africa. It is

evident from the beta values in Figure 9 below that brand characteristics impacts the most on demand,

followed by advertising, social cultural factors, corporate image, Manufacturer/Consumer relationships,

Country of origin and lastly, price. The 6 factors as illustrated in Table 4 below are comprised of the following

items because of their significant loading for each of the factors. These 6 extracted factors; accounts for

59.49% of the total variance in the measuring tool, as reflected by the cumulative % in Table 5 below.

Table 4 Varimax Rotation with KMO Normalisation

FACTOR VARIABLE QUESTIONS

1 Brand Characteristics 8, 9,10, 12,14,16

2 Corporate Image 18,20,27,28

3 Social Cultural Factors 1,6,11,15

4 Advertising 2,3,4,17

5 Manufacturer/Consumer Relationships 5,13,14

6 Advertising and Brand Characteristics 7 & 25

Figure 9 Impact of each Variable on Demand for AMDBP

0.364

0.274 0.271

0.2110.179

0.150

0.089

0.00

0.10

0.20

0.30

0.40

0.50

Brand

Characteristics

Advertising Social Cultural

factors

Corporate

Image

Manufacturer /

Consumer

relationships

Country of

Origin

Price

Key Variable

BETA LOADINGS COMPARED BY KEY VARIABLES

Brand Characteristics Advertising Social Cultural factors Corporate Image Manufacturer / Consumer relationships Country of Origin Price

16

From the Table 5 below, it is evident that 7 items loaded significantly on Factor 1, which accounts for

14.067% of the total variance. As illustrated in Table 5 below, five of these items relate to Brand

Characteristics, therefore Factor 1 maybe categorized as the component assessing Brand Characteristics.

Hence, as a measure of construct validity, the use of factor analysis, has established that the research

instrument identifies and measures the responses to the key variables of the study, as intended. The validity

test, hence demonstrates success for six of the seven key factors, implying that each variable, within a

scale, does not measure unrelated constructs.

RECOMMENDATIONS

The sample that was utilized to conduct this study was drawn out of only one geographic region in

South Africa, i.e. KwaZulu-Natal, hence this may render the results biased. It is therefore recommended that

a similar study be conducted in each of the other 8 provinces, to ascertain if consumers exhibit similar

behavioural characteristics and if the key variables account for similar variances in their decision to purchase

a particular manufacturer‟s brand of disc brake pad.

There exists significant inter-correlations amongst the key variables of the study, it is therefore

recommended that a full review of the relationships be investigated to ascertain if these inter-correlations

between the key variables of the study, are supported by academic evidence, which accounts for the

Table 5 Instrument Validity Test: Principal Component / Factor Analysis

1 2 3 4 5 6

Q14 0.689

Q12 0.672

Q16 0.666

Q9 0.661

Q10 0.660

Q19 0.569

Q8 0.563

Q27 0.769

Q28 0.722

Q18 0.572

Q20 0.569

Q15 0.710

Q6 0.706

Q1 0.700

Q11 0.568

Q4 0.788

Q2 0.772

Q3 0.702

Q17 0.465

Q13 0.735

Q24 0.489

Q5 0.438

Q25 0.683

Q7 0.631

Eigen Value 3.376 2.697 2.626 2.533 1.530 1.517

% of Varience 14.067 11.236 10.941 10.553 6.374 6.323

Cumulative % 14.067 25.304 36.244 46.797 53.171 59.494

COMPONENT / FACTORSQUESTION

17

variance in the consumer‟s willingness to purchase a certain manufacture‟s brand of disc brake pad in South

Africa.

Having determined that word-of-mouth (WOM) has had the greatest influence on the target markets‟

decision to purchase (48.7% agreed, and 13.05% strongly agreed that WOM influenced their decision to

purchase); the organisation should therefore aggressively peruse this medium to leverage its brand

characteristics. Currently, SmartBrake positions its brands as being the most effective in stopping a vehicle,

inferring the safety characteristic of its products, which was discovered to be held in high esteem by its target

market, as a reason for purchasing a particular manufacturer‟s brand of product (57.5% agreed, and 38.6%

strongly agreed that a reputation for safety will influence their decision to purchase). This characteristic is

currently only conveyed by means of the print media, which could account for the marginal sales growth, as

discussed in the literature review. To leverage the effects of WOM, it is suggested that the organisation

actively involve its target market by having open days where the public and its distribution network is invited

to tour its manufacturing plant, where the organisation details its policies in respect of its research and

development facilities, its brake pad manufacturing process and associated approved global quality system.

This type of initiative is more likely to create greater brand identity and equity than the current marketing

programmes, which focuses on advertising in the print mediums (magazines, billboards and newspapers).

CONCLUSION

The findings revealed that corporate image, brand characteristics and social cultural factors had the

largest and most significant influence on consumer behaviour. Advertising, in particular, word-of-mouth was

singled out as being the most dependable source of information acquisition and had the greatest influence in

the consumer‟s decision-making process when compared to the other advertising mediums such as

television, magazines and newspapers. Response to questions testing the effect of country of origin and

manufacturer / consumer relationships on the consumers‟ decision to purchase produced a neutral bias,

while price had little or no significant effect. Finally to empirically and statistically prove the hypothesis (H1),

multiple regression analysis proved unequivocally that 99.3% of the variance in the factors influencing

demand can be attributed to the 6 key variables of the study and it is statistically significant at the 1% level.

Brand characteristics, advertising, social cultural factors, corporate image, country of origin and

manufacturer / consumer relationships respectively, had the greatest impact on demand, while price was

found not to have a significant impact. Hence, the findings of this study, with the aid of the descriptive and

inferential techniques clearly identify the significant characteristics of the consumer, which influences their

buying behaviour and ultimately demand for aftermarket disc brake pads in South Africa.

18

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