This study set out to identify what relationship exists between vehicle pricing and market size in a South African context. The research project’s design revolves around a quantitative method, consisting of a non-experimental strategy, with a longitudinal retrospective time horizon. The Box-Jenkins Method was used with auto regression and autocorrelation and partial autocorrelation functions for testing stationarity. The test involved the Rand’s changes against major currencies being related to increases in the advertised new vehicle price. The results of these tests showed weak correlations for the period 2008 to 2016. The conclusion was that no significant correlation exists between the Rand’s exchange rate against major currencies, influencing the increase in new vehicle pricing. No significant correlation exists between the changes in the new pricing of vehicles and the new vehicles sold. Certain limitations have been identified and recommendations have been made for future studies regarding the project.
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This work is licensed under a Creative Commons Attribution 3.0 License.
Plekker, Keith and Haan, Perry, "An Evaluation of South African Vehicle Prices and Domestic Market Size" (2018). Association of Marketing Theory and Practice Proceedings 2018. 14.
About the Authors
Keith Plekker (Master of Science, University of Salford) worked for Deloitte and then the diamond mining and exploration industry, holding senior financial and administration roles. He is currently a senior regional director for a public listed motor group in South Africa.
Perry Haan (DBA, University of Sarasota) is Professor of Marketing & Entrepreneurship at Tiffin University in Tiffin, Ohio. His research interests include entrepreneurship, international business, ethics, sales and sales management, education marketing, sports marketing, and leadership.