Brand positioning in the remarket automotive industry

Abstract

The South African motor industry is currently at the height of competitiveness, whether referring to new or pre-owned vehicles. The sale of new vehicles is at an all time high, and this phenomenon flows through to the remarket sector in the industry. The prices of new vehicles increased by very small margins over the past few years, and in some instances it has decreased. This leads to even more intense competition in the remarket sector, because consumers would rather purchase a new vehicle, than paying a very similar price for the exact pre-owned model. This study was conducted to determine on which factors a remarket dealership should focus in order to remain successful in the current fierce competitive market conditions. A literature study forms part of this study. Questionnaires were used as the measuring instrument and also filled out by 140 participants in an attempt to determine which factors the consumer considers as important when purchasing a pre-owned vehicle. Data analysis was done by means of a factor analysis, and the data reliability verified by means of determining Cronbach's Alpha coefficient. A total of seven factors were identified of which "Value for money” and "Reassurance” was the most important ones. Cumulatively the factors explained 61 % of the variance.