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INVESTIGATING A POSITIONING STRATEGY
FOR A CAR WASH BUSINESS IN PORT ELIZABETH:

A CASE STUDY
__________________________________________
MALANIE NAIDOO KURUP
2012
INVESTIGATING A POSITIONING STRATEGY
FOR A CAR WASH BUSINESS IN PORT ELIZABETH:
A CASE STUDY
By
MALANIE NAIDOO KURUP
Submitted in partial fulfilment of the requirements for the degree:
MASTERS IN BUSINESS ADMINISTRATION
in the Faculty of Business and Economic Sciences
at the Nelson Mandela Metropolitan University
PROMOTER: DR J.M. BURGER
NOVEMBER 2012
DECLARATION
I, Malanie Naidoo Kurup, hereby declare that:
- the content of this treatise is my own original work;
- all sources used or referenced have been documented and recognised; and
- this treatise has not been previously submitted in full or partial fulfilment
of the requirements for an equivalent or higher qualification at any
other recognised educational institution.
……………………………
Malanie Naidoo Kurup
Port Elizabeth
November 2012
ACKNOWLEDGEMENTS
The completion of this work would not have been possible without the direct and
indirect support and contributions from various individuals. I wish to convey my
sincere gratitude to all who have provided me with advice, guidance and
encouragement towards achieving this goal.
I wish to specifically acknowledge the following:
My deepest gratitude and appreciation go to Dr John Burger, my research supervisor

for his invaluable guidance, careful critique, scholarly insight and moral support.
I would like to express my appreciation to the management of the car wash business
for their valuable support as well as the respondents for their time and contributions
without which this study would not have been possible.
I wish to convey my deep appreciation to my sisters, Sarala and Rosh, as well as my

friends Nazneen, Anu and Ruwaida and my fellow student friends Nandipha and
Cherwin for their enduring support.
I deeply value the unconditional support, understanding, encouragement and love

through my MBA journey from my husband and best friend, Rajan without which it
may not have been possible for me to have progressed to this stage of my journey.
To my late mother, whose memory has provided me with the courage to persevere.
To God for walking beside me and ensuring that I did not at any stage feel
discouraged, despondent and alone.
ABSTRACT
The aim of this study was to determine an appropriate positioning strategy for a car
wash business in Port Elizabeth to promote its competitive advantage in the market
place. To meet this aim the customers‟ perceptions of the business were examined.
It has been widely acknowledged by researchers and development agencies that

Small, Medium and Micro Enterprises (SMMEs) and entrepreneurs play a crucial role
in the economic development of a nation. This is particularly significant for a
developing nation such as South Africa to address its critical challenges of
unemployment and poverty which impact on social stability. Research reveals that
the failure rate of SMMEs in South Africa is an alarming 75%. In this context, the
need to explore innovative strategies to support and sustain the SMME sector has
become increasingly important.
A detailed survey of relevant literature revealed that the attributes of a firm that relate
to the quality of service, pricing, attitudes of staff, image of the firm etc. can be
considered as important variables which customers use to differentiate a business
from its competitors. It is suggested that the success of a firm largely depends on its
ability to position itself in a competitive environment by focusing on attributes which
customers value the most in relation to similar businesses.
This case study was approached from a positivist paradigm and data from 61
customers of the car wash were collected. The quantitative data were statistically
analysed to examine the attributes of the business which the respondents of the
survey perceived as offering the most value to them when compared to other car
washes in the area. These attributes were then used to develop a positioning map
for the business. The results showed that the attribute of the business which was
most valued by the respondents was the manual washing of vehicles. A positioning
strategy for the car wash based on this finding is suggested.
Keywords: Car wash; Differentiation; Positioning; SMME
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TABLE OF CONTENTS
Page
CHAPTER ONE……………………………………………………………………. 1
INTRODUCTION, RATIONALE AND SCOPE OF THE STUDY……………... 1
1.1 SETTING THE SCENE…………………………………………. 1
1.2 RATIONALE FOR THE STUDY………………………………... 3
1.3 RESEARCH OBJECTIVES…………………………………….. 6
1.3.1 Primary research objective…………………………..... 6
1.3.2 Secondary research objectives……………………… 6
1.4 RESEARCH DESIGN AND METHODOLOGY OF THE
STUDY……………………………………………………………. 7
1.4.1 Research design……………………………………….. 7
1.4.2 Methodology…………………………………………….. 8
1.4.3 Sample…………………………………………………... 9
1.4.4 Measuring instrument………………………………….. 9
1.5 DELIMITATIONS………………………………………………… 10
1.6 ASSUMPTIONS………………………………………………….. 10
1.7 OUTLINE OF THE STUDY……………………………………... 10
CHAPTER TWO……………………………………………………………………. 12
LITERATURE STUDY…………………………………………………………...... 12
2.1 INTRODUCTION………………………………………………… 12
2.2 PRODUCTS AND SERVICES…………………………………. 13
2.3 NATURE OF POSITIONING…………………………………… 14
2.4 THE IMPORTANCE OF POSITIONING……………...……….. 15
2.5 COMMUNICATING THE POSITIONING STRATEGY………. 16
2.6 REPOSITIONING………………………………………………... 17
2.7 DIFFERENTIATION……………………………………………... 19
2.7.1 Product differentiation…………………………………. 20
2.7.2 Services differentiation………………………………… 22
2.7.3 Personnel differentiation………………………………. 24
2.7.4 Image differentiation…………………………………… 25
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2.7.5 Evaluating differentiation variables…………………… 26
2.8 POSITIONING STRATEGIES………………………………….. 28
2.9 POSITIONING IN SERVICE BUSINESSES………………….. 31
2.10 GREEN BRAND IDENTITY…………………………………….. 32
2.11 THE POSITIONING PROCESS………………………………... 33
2.12 POSITIONING ERRORS ………….…………………………… 39
2.13 CONCLUSION…………………………………………………… 40
CHAPTER THREE…………………………………………………………………. 42
RESEARCH METHODOLOGY…………………………………………………... 42
3.1 INTRODUCTION………………………………………………… 42
3.2 DEFINITION OF RESEARCH………………………………….. 42
3.3 SCIENTIFIC RESEARCH ETHICS……………………………. 43
3.4 RESEARCH DESIGN…………………………………………… 44
3.5 QUANTITATIVE AND QUALITATIVE RESEARCH………….. 45
3.6 FOCUS OF THE RESEARCH STUDY…………………...…… 48
3.7 DESIGN AND STRUCTURE OF THE MEASURING
INSTRUMENT……………………………………………………. 49
3.7.1 Layout and content of the questionnaire…………….. 50
3.7.2 Scaled-response questions…………………………… 51
3.7.3 Testing the questionnaire……………………………… 52
3.7.4 Validity and reliability considerations………………… 52
3.8 DATA COLLECTION……………………………………………. 55
3.8.1 Sample and sample size………………………………. 55
3.8.2 Administration of the questionnaire…………………... 55
3.9 DATA ANALYSIS AND COMMUNICATION OF FINDINGS... 56
3.10 CONCLUSIONS…………………………………………………. 56
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CHAPTER FOUR…………………………………………………………………... 58
RESULTS…………………………………………………………………………… 58
4.1 INTRODUCTION………………………………………………… 58
4.2 FINDINGS OF SECTION ONE………………………………… 59
4.3 FINDINGS OF SECTION TWO………………………………… 67
4.4 CONCLUSION…………………………………………………… 77
CHAPTER FIVE…………………………………………………………………..... 78
DISCUSSION OF RESULTS, CONCLUSIONS AND
RECOMMENDATIONS................................................................................... 78
5.1 INTRODUCTION………………………………………………… 78
5.2 DISCUSSION OF THE DEMOGRAPHIC PROFILE OF THE
CUSTOMERS……………………………………………………. 78
5.3 OVER-ALL IMPRESSIONS OF THE DATA IN SECTION
TWO…………………………………………………………….... 81
5.4 DISCUSSION OF RESULTS IN THE POSITIONING
STRATEGY CATEGORIES…………………………………….. 82
5.4.1 Price-quality positioning……………………………….. 82
5.4.2 Benefit positioning……………………………………… 83
5.4.3 Competitor positioning…………………………………. 84
5.4.4 Attribute positioning……………………………………. 85
5.5 STRENGTHS AND WEAKNESSES OF THE BUSINESS….. 86
5.6 POSITIONING MAP……………………………………………... 87
5.7 CONCLUSIONS…………………………………………………. 89
5.8 LIMITATIONS OF THIS STUDY……………………………….. 90
5.9 RECOMMENDATIONS…………………………………………. 91
5.9.1 Suggestions for future research………………………. 91
5.9.2 Recommendations for the car wash business……… 91
LIST OF SOURCES……………………………………………………………….. 93
ANNEXURES………………………………………………………………............ 100
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LIST OF ANNEXURES
ANNEXURE A Covering Letter……………………………………………… 100

ANNEXURE B Draft Questionnaire…………………………………………. 102
ANNEXURE C Final Questionnaire…………………………………………. 105
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LIST OF FIGURES
Figure 2.1 Comparison of the marketing research process to the

positioning process…………………………………………… 34
Figure 2.2 Proposed positioning process………………………..……... 35
Figure 4.1 Graphic representation of customers with regard to

gender………………………………………………………….. 59
Figure 4.2 Graphic representation of customers with regard to age
group…………………………………………………………… 60
education………………………………………………………. 61
employment…………………………………………………… 62
income group………………………………………………….. 63
frequency of use…………………………………..………….. 64
Figure 4.7 Graphic representation of customers‟ willingness to
recommend the car wash business………………...………. 65
Figure 4.8 Graphic representation of customers‟ opinion on the car
wash name being easy to remember…………………….… 66
Figure 4.9 Responses to item 14………………………………………… 71
Figure 4.11 Responses to item 2………………………………………….. 73
Figure 4.12 Responses to item 20.……………………………………….. 74
Figure 5.1 Perceptual map of respondents‟ views…………………….. 89
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LIST OF TABLES
Table 1.1 Total number of liquidations: 2005 to 2010………..……… 4
Table 2.1 Differentiation variables……………………………………… 20
Table 2.2 Summary of studies on positioning strategies…………….. 29
Table 3.1 Differences between qualitative and quantitative research 47
Table 4.1 Customers according to gender…………………………….. 59
Table 4.2 Customers according to age………………………………… 60
Table 4.3 Customers according to education…………………………. 61
Table 4.4 Customers according to employment………………………. 62
Table 4.5 Customers according to monthly net income……………… 63
Table 4.6 Customers according to frequency of use…………………. 64
Table 4.7 Customers according to willingness to recommend the car

wash business………………………………………………… 65
Table 4.8 Customers‟ opinion on the name of the car wash being
easy to remember…………………………………………….. 66
Table 4.9 Descriptive statistical scores of questions in section two… 68
Table 4.10 Responses to item 14..………………………………………. 71
Table 4.11 Responses to item 17…………………..……………………. 72
Table 4.12 Responses to item 2………………..…..……………………. 73
Table 5.1 Summary of demographic details of the customers………. 79
Table 5.2 Attributes for which a quarter or more of the respondents

chose the strongly agree option…………………………….. 88
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CHAPTER ONE
INTRODUCTION, RATIONALE AND SCOPE OF THE STUDY
1.1 SETTING THE SCENE
The economic prosperity of a nation is generally perceived to be dependent on the

strength of large businesses such as the manufacturing sector, construction industry,
transportation etc. Although it is true that big businesses play an important part
towards economic stability, the role of Small, Medium and Micro Enterprises
(SMMEs) in nurturing entrepreneurship to contribute towards a vibrant economy for
sustainable development cannot be ignored (National Skills Research Agency,
2008). A variety of service businesses such as hair salons, laundry services, printing
and photocopying, family owned restaurants, car washes and many others form an
integral component of the SMME sector. In this context, this study aims to determine
customers‟ perceptions about a car wash business in Port Elizabeth with a view
towards suggesting a positioning strategy to improve the firm‟s competitive
advantage.
The crucial role of SMMEs in addressing the socio-economic challenges faced by

the new South African government had been noted by the National Credit Regulator
(NCR) as early as 1995 (NCR, 2011). The White Paper on National Strategy for the
Development and Promotion of Small Business in South Africa (1995) as cited NCR
(2011) emphasised and strongly motivated the government to support SMMEs as a
means to stimulate job creation, economic growth and to assist in addressing
poverty and equity challenges present in the country.
The perspective above is shared globally by policy makers, economists, and

business experts (NCR, 2011). The Organisation for Economic Co-Operation and
Development (OECD) (2009) based on a survey of 29 countries advocates SMMEs
and entrepreneurs as key generators of employment, significant contributors to
income and growth as well as important drivers of innovation in a country. In
addition, the Global Entrepreneurship Monitor (GEM) report released in 2010 attests
to the critical importance of SMMEs to a nation‟s economy when it states that there
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is an association between the level of entrepreneurial activity and the economic
growth of a country (Herrington, Kew and Kew, 2010).
The OECD (2009) report considers SMMEs as the engines which could assist
developing nations to attain developmental objectives such as reducing poverty,
improving the standard of living of its citizens and improving the socio-political and
economic stability of the country. Similar views are expressed by NCR (2011) who
emphasise a healthy SMME sector as being fundamental to achieving the goals of
developing countries. Economic growth objectives such as greater employment
opportunities, higher production volumes, increased exports, greater innovation and
increased entrepreneurial spirit much needed in developing countries may
accordingly be realised through a vibrant and successful SMME sector.
Herrington, Kew, Simrie and Turton (2011) while acknowledging the efforts and
advances South Africa have made over the last decade, consider the country‟s
poverty levels to be unacceptably high. Poverty is defined by the organisation,
Alliance for Children's Entitlement to Social Security (ACESS), as the “inability of
individuals, households or communities to command sufficient resources to satisfy a
socially acceptable minimum standard of living” (Clacherty, n.d.). Compared to the
progress of other emerging economies, improvements in South Africa have been far
below par (Herrington et al., 2011). South Africa is described as an economy
grappling with a high poverty index, a comparatively low GDP per capita and the
average South African household income having decreased considerably between
the period 1995 and 2000. In this context it is significant to note the perspective of
the United Nations (2012) that South Africa faces challenges of “high unemployment
with growth in labour force outstripping the growth of the economy, spatial poverty
and accelerating inequality”.
Economic disparities among the majority of South Africa‟s population have largely
arisen on account of the apartheid system of governance prior to 1994. To alleviate
the economic disparities among the majority of South Africa‟s population, the
government has instituted affirmative action policies. However, these well intended
policies have failed to make significant improvements towards correcting the
imbalances. Policies such as Black Economic Empowerment contribute to increased
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wealth among a few members who are associated with the government but fail to
address the income challenges faced by the large majority of previously
disadvantaged individuals (Herrington et al., 2010).
The success of SMMEs can be appreciated as being vital to the socio-economic

development of South Africa and the stability of the country. SMMEs such as car
wash businesses, beauty salons and home industries may be viewed as realistic
means of decreasing unemployment, stimulating economic growth, increasing the
country‟s Gross Domestic Product (GDP), encouraging innovative thinking and
increasing the disposable income of households. However, despite these prospects
to address the development challenges, the 2011 GEM report identifies South Africa
as a poorly-performing economy with respect to entrepreneurial activity (Herrington
et al., 2011). It has therefore become increasingly important that the SMME sector in
South Africa be scrutinised closely with a view towards making concrete suggestions
for improvement.
1.2 RATIONALE FOR THE STUDY
The survival rates of SMMEs in South Africa are one of the lowest in the world
(Herrington et al., 2010). According to Olawale and Garwe (2010) the country has an
alarming new SMMEs failure rate of 75%, which suggests that three out of four new
businesses may be expected to fail. Few businesses were observed as still being in
existence after three and a half years (Herrington et al., 2011). The 2011 GEM report
accordingly ranked South Africa 52nd out of 54 countries in the category of existing
business activity (category of businesses in existence for a period of more than three
and a half years).
A report by Statistics South Africa (STATS SA, 2011) on the liquidations and
insolvencies in the country stated that 20 827 liquidations took place in South Africa
from 2005 to 2010. This accentuates the existence of an unstable SMME sector in
the country. The statistical results of the monthly liquidations over the period 2005 to
2010 are presented in Table 1.1 below.
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Table 1.1 Total number of liquidations: 2005 to 2010
Month 2005 2006 2007 2008 2009 2010
January 328 171 176 160 270 206

February 296 213 192 230 391 328
March 240 241 241 297 347 410
April 279 198 236 247 349 358
May 265 311 273 265 283 384
June 265 262 181 233 311 379
July 318 261 272 320 428 281
August 273 333 387 285 264 243
September 297 238 507 328 334 341
October 234 219 286 348 287 393
November 234 313 194 240 487 344
December 196 266 206 347 382 325
Year Total 3225 3026 3151 3300 4133 3992
Source: STATS SA (2011)
The large number of liquidations over the five year period suggests a need to
support entrepreneurs in their efforts towards earning an income and achieving an
acceptable business performance. The 2009 Survey of Employers and the Self-
employed identified that 68.6% of persons involved in business ventures had taken
the decision to become self-employed as a result of being unemployed and for
economic survival (STATS SA, 2010). This alludes to a need to offer knowledge and
training on business management to new business owners.
According to STATS SA (2012: 3) “approximately 4,5 million persons were looking

for work in the 2nd quarter of 2012, of which 3,0 million (or 67,8%) have been
looking for work for a period of 1 year or longer”. In addition to those actively seeking
employment the survey reflects another 2,3 million persons who had become
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disillusioned and had given up the quest for employment. South Africa‟s expanded
unemployment rate stands at 36.2%. This accounts for persons actively seeking
employment and those who are discouraged and had given up on the search for
work in the formal sector. The expanded unemployment rate for the Eastern Cape,
the province in which the selected car wash business is based, posts an
unemployment rate of a worrying 42.4%.
The 2010 GEM South African Report highlights the significant role the services
sector can play in redressing the unemployment issue in South Africa (Herrington et
al., 2010). This sector is responsible for one-third of global employment, two thirds of
global output and nearly 20% of global trade (Botswana Gazette Online, 2008 cited
in Herrington et al., 2010, p.56). The services sector is described as being one of the
fastest growing sectors in numerous African economies and highlighted as
contributing to 70% of employment in South Africa.
From a study of SMME activities in various countries, Herrington et al. (2010)

described some of the key challenges experienced by more than 50% of SMME
respondents as follows:
 operating in a market in which there are too many competitors
 customers not viewing products or services offered as new and unfamilair
 a large number of „me-too‟ businesses operating in the same market which
compromises the sustainability of the business
In addition to an awareness of the competitive environment, SMMEs thus need to
carve out a niche strategy to position and differentiate themselves if they are to be
sustainable.
Olawale and Garwe (2010) promote the use of strategic planning to gain an insight
into the nature of the competition as well as the ways in which to effectively position
the business to stimulate demand for the products and services offered and ensure
business success. To survive new firms are encouraged “to understand the
dynamics of competition in their industry and develop skills and competencies that
give them a competitive advantage” (Olawale and Garwe, 2010: 732). This view is
further supported by Herrington et al. (2010) who believe that new, creative and
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novel business ideas need to be explored in the services sector to avoid replication
and „me-too‟ businesses. The use of unique and innovative ideas are proposed to
enable businesses to flourish.
It is against this background that this study engages in an investigation with the goal
of proposing a positioning strategy for a car wash business. The purpose of this
research is nevertheless twofold. The researcher strives to make a contribution to
the success of a specific SMME as well as seeks to invoke and renew interest
among other SMMEs, government strategists and corporate social responsibility
project leaders in the use of positioning to improve SMME business performance. By
means of a literature review and an empirical investigation the researcher strives to
offer knowledge and insight into the „why‟ and „how to‟ aspects of positioning.
1.3 RESEARCH OBJECTIVES
1.3.1 Primary research objective
The main objective of this research study had been to make a contribution towards
increasing the market share and sales of a car wash business in Port Elizabeth
through the investigation of an appropriate positioning strategy.
1.3.2 Secondary research objectives
In striving to achieve the primary objective of the study, an analysis of the main
problem and a review of the literature on positioning resulted in the following
secondary research objectives being identified:
1. What is the demographic profile of the customers of the car wash business?
2. What are the attributes of the business most valued by its customers?
3. Does an ideal template for positioning emerge?
An understanding of the secondary issues described above assisted the researcher

in accomplishing the main goal of the research study. The answers to questions one
and two were determined by way of a customer survey while question three was
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solved through a comprehensive analysis of the empirical data collected from the
study.
1.4 RESEARCH DESIGN AND METHODOLOGY OF THE STUDY
1.4.1 Research design
According to Mouton (2001), the research design of a study outlines the logic of the
research that is to be conducted. In essence it describes the plan of how the
researcher intends to achieve the objectives of the research initiative. The strategy
established to meet the objectives of this research was as follows:
a. A literature review of articles, research reports and texts on marketing which
focus on positioning was conducted. The relevant material was sourced
through the Nelson Mandela Metropolitan University (NMMU) library facilities
and the internet. The existing literature on the topic was examined with the
aim of identifying arguments and findings that guided the researcher‟s
approach to achieve the primary objective of the study. The review covered
elements such as:
 the importance of positioning
 effective communication of the positioning strategy
 repositioning
 positioning in service businesses
 the constructs of differentiation
 the different positioning strategies and
 methods that may be used in positioning efforts
b. Based on the literature study, a structured survey questionnaire to measure
customer responses through the use of a four-point Likert scale, was
developed (Annexure C). The measuring instrument was used to assist the
researcher to collect the primary data inputs needed for analysis to achieve
the main purpose of the research initiative. A forced differential was used to
avoid neutral responses.
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c. Because of the organic nature of the measuring instrument as well as to
validate the questionnaire items, the questionnaire was subjected to pilot
testing.
d. Suggestions to improve the questionnaire were incorporated into the
document and the final questionnaire was thereafter administered to random
customers present at the car wash business.
e. An assurance of anonymity and confidentiality and a commitment to make the
findings of the research study available to the business was provided.
f. The responses received was captured and organised through the use of
Microsoft Excel.
g. A professional statistician assisted with the data reduction with the use of the
statistical analysis program Statistica.
h. Finally, the results of the analysis were interpreted, the findings reported and
recommendations regarding an appropriate positioning strategy for the car
wash business presented.
1.4.2 Methodology
The methodology of a research study is described by Mouton (2001) as the segment

of the study which sets forth the details of the key individual steps adopted in the
study. Babbie and Mouton (2001) further explain research methodology to be an
outline of „what‟ and „whom‟ will be studied; along with the details of the ways in
which the data required will be collected for the successful completion of a research
initiative.
A quantitative research framework was used for this study. The main purpose was to
identify an appropriate positioning strategy for the selected car wash business.
According to Locke, Silverman and Spirduso (2010) a quantitative approach is most
suitable for research which seeks to identify the quantity or degree of variation that
exists. This perspective was underscored by the quantitative research approach and
grounded in the positivist paradigm which involved collecting data that could be
quantified and analysed using statistical methods (Collis and Hussey, 2009).
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1.4.3 Sample
The population of interest consisted of the customers of the car wash business. On
account of there being no customer contact details recorded by the car wash
business and there being limited time available to complete the research study, a
target sample of 100 customers had been envisaged to participate in the project.
This is in harmony with Gravetter and Wallnau (2011) who advocated minimal
parameters to allow for some form of statistical analysis. Convenience sampling was
adopted where random customers present at the car wash were requested to
complete questionnaires while waiting for the cleaning of their cars to be completed.
Data concerning customer beliefs and attitudes were collected by means of the
questionnaire and the respondents participating in the study had been assured of
confidentiality and anonymity
1.4.4 Measuring Instrument
A self-constructed questionnaire was used in this study. The questionnaire was

based on the literature review conducted by the researcher and guided by aspects
featured in the measuring instruments developed and validated by Johnson,
Gustafsson, Andreassen, Lervik and Cha (2000) and Jirachaisingh (2007).
Caution was taken not to include vague items, double-barrelled questions, fictitious
constructs and negatively phrased or threatening questions (Mouton, 2001: 104).
The questions had largely been constructed with the aim of investigating the
prevalence of aspects related to the following positioning strategies:
 Price-quality positioning
 Benefit positioning
 Competitor positioning and
 Attribute positioning
The aim of the questionnaire was to determine the magnitude of variation in

customer perceptions with respect to aspects such as value for money (price-quality
positioning), customer benefits (benefit positioning), uniqueness (competitor
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positioning) and attractiveness (attribute positioning) through the use of a set of six
scaled-response questions in each category. A four-point Likert scale had been used
and was anchored by the rating scale stated below:
1. strongly disagree
2. disagree
3. agree and
4. strongly agree
1.5 DELIMITATIONS
This study focused on a particular car wash business situated in the Walmer suburb
of Port Elizabeth, Eastern Cape Province. The literature review indicated positioning
strategy as one of the key factors which contributes towards the sustainability of
such an SMME. Consequently the focus of this study is principally on this aspect of
strategy development.
1.6 ASSUMPTIONS
The positioning strategies which form the focus of this investigation emerged from a
comprehensive study conducted by Blankson and Crawford (2012) which
investigated the impact of several positioning strategies on service firm performance
in the United States of America (USA). Blankson and Crawford (2012) claim that the
results of their study were consistent with a similar study conducted in the United
Kingdom by Chernatony and Cottam in 2009. For the purpose of this research
endeavour, the positioning strategies identified as providing improved sales and
return on investment in businesses in the USA, are assumed to impact on the car
wash business in South Africa in a similar way.
1.7 OUTLINE OF THE STUDY
In Chapter One the research is conceptualised. The reader is introduced to the

background and relevance of the study, problem statement, objectives of the study
as well as provided with a brief overview of the research design and methodology
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pursued. The researcher concludes the chapter by supplying an outline of the
research project.
A literature review forms the focus of Chapter Two where existing knowledge on
pertinent aspects of positioning are evaluated. The chapter begins by clarifying the
importance of positioning, effective communication of the positioning strategy and
repositioning. Thereafter, a discussion on positioning in service businesses, the
constructs of differentiation and the different positioning strategies are presented.
The chapter continues with an outline of the illustration of the steps that may be used
in positioning efforts and concludes with a discussion on typical positioning errors.
The research approach adopted in the study is the cornerstone of Chapter Three.
The reader is introduced to the topic with a discussion of formal research and
research ethics. Thereafter the chapter proceeds to substantiate the decisions taken
with regard to the empirical study of the research initiative. The use of a quantitative
approach is motivated and aspects such as the design and development of the
research instrument, validity and reliability considerations and the sampling method
are discussed. The chapter draws to a close with a discussion on the strategies used
to analyse the data collected.
The results of the data gathered from respondents are presented in Chapter four.
The data collected is organised and summarised to facilitate easier identification of
the variation in customer feelings and beliefs. Various statistical analysis and visual
representations of these findings are presented. These assist the researcher to
identify trends which relate to the objectives of the study.
Chapter five is the concluding chapter. The interpretation of the results presented in
chapter four forms the basis of this chapter. Recommendations based on the
literature review and the empirical results are proposed and limitations and
suggestions for future related research are discussed.
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CHAPTER TWO
LITERATURE STUDY
2.1 INTRODUCTION
Shoppers are constantly challenged by the tremendous range and variety of

products that are available to meet their needs and wants. To circumvent the buying
decision from being a mammoth task of perpetual evaluation of the products on offer,
buyers are known to order or position merchandise in their minds to enable
purchasing decisions being less cumbersome (Ostaseviciute and Sliburyte, 2008).
Chapter one delineated the aims, objectives and rationale for the research study. It
described the challenges faced by SMME‟s in South Africa and the need for a
focussed approach to improve sustainability. Furthermore it outlined the need to
understand the dynamics of competition in the marketplace. This chapter provides
an overview of how firms may influence customer perceptions and induce desired
customer behaviour through strategically positioning themselves and their products
in the minds of customers. The position of an organisation and/or its products is
essentially the rank it occupies in the minds of customers relative to its competitors
(Asikhia, 2010).
Blankson and Crawford (2012) hold the view that utilising positioning strategies
makes a definite contribution to improved business performance. The quest to
unravel the impact of positioning strategies on organisational performance revealed
improved sales; increased profits; higher return on investment and increased market
share to be the consequence of clearly defined positioning strategies. Improved
customer perceptions was identified as playing an important role in providing the
impetus for the positive impact on sales, profits, return on investment and market
share.
The escalating competitive nature of the South African business environment poses
increasing challenges for firms to meet their goals of operational excellence,
sustained customer loyalty and business growth. Manufacturing and service
12
organisations are therefore continually forced to review their products, facilities and
processes to make appropriate changes. This is to ensure they stand favourably
positioned with respect to their competitors. According to Blankson and Crawford
(2012) the employment of deliberate positioning strategies is crucial in crafting a
competitive advantage for a business and its products.
Due to the rapid changes in the market environment, aspects such as the changing
needs of customers, customer retention and the attraction of new customers are
continually examined (Cant, 2010). However, despite these and numerous other
exertions by the firm to garner customer support, González-Benito and Martos-Partal
(2012) note that the power essentially resides with the customer, who ultimately
decides on the success of the firm‟s offerings. The pursuit of business success
therefore demands that organisations differentiate their offerings and employ
appropriate positioning strategies to help customers to recognise the advantage in
supporting them. Examining this theme of marketing thus strives to encourage and
empower SMME‟s to fashion effective positioning plans, and in turn, facilitate
improved SMME business performance.
2.2 PRODUCTS AND SERVICES
This study explores viable strategies that a firm can cultivate to position itself, its
products and/or services favourably in the minds of customers in a competitive
market environment. Within this context, this study uses the term „product‟ as
referring to either a physical product or a service. This proposition is in agreement
with Blythe‟s statement, “Most physical goods contain a service aspect and most
services contain a physical product. In other words, most products lie somewhere
along a continuum between purely service and purely physical product” (Blythe,
2008: 256). For example, the online purchase of household grocery items can be
regarded as procuring a product with a service firm whereas having coffee at a car
wash cafe while getting your car cleaned can be viewed as a service attached to a
physical product.
13
2.3 NATURE OF POSITIONING
Blythe (2008) describes positioning as being the place in the consumer‟s perceptual
map of the market which the product occupies when compared with similar products.
The position established is noted to be the effect of buyer categorisation and
chunking processes which culminate in customer beliefs such as the product being,
„the high-quality one‟ , „the reliable one‟ or „cheap version‟ etc.
According to Cant (2010: 145) positioning is the manner in which customers perceive
a product in terms of its characteristics, advantages and competitors. Positioning is
proposed as essentially being the process which creates a distinctive position of the
firm‟s product in the minds of targeted buyers, relative to that of competitors.
The inclusion of the concept of image in the definition of positioning is discussed by

Kotler (2003a). Positioning is denoted as the act of designing a firm‟s offering and
image to occupy a distinctive place in the target market‟s mind such that a market-
focused value proposition and a cogent reason for the target market to buy the
product, is provided (Kotler, 2003b: 202). However, in subsequent years as the result
of literature scrutiny, Kotler supported by co-authors Kartajaya and Setiawan
highlighted that it is inadequate to merely target the customer‟s mind but necessary
to target the customer‟s heart as well (Kotler, Kartajaya and Setiawan, 2010). The
importance of an integrative emotional marketing approach to attract customers is
emphasised (Kotler, Kartajaya and Setiawan, 2010).
Positioning is consequently viewed as the act of projecting a product‟s

characteristics and benefits such that it occupies a favourable position in the hearts
and minds of targeted customers relative to that of its competitors. In other words,
successful positioning efforts assist the firm and its products to attain the desired
position on the customer‟s perceptual map and consequently improve firm
performance. The influence of positioning is further explored in the discussion below.
14
2.4 THE IMPORTANCE OF POSITIONING
Fierce global competition has been the consequence of rapid technological

improvements. Improvements in transport and communication systems have
resulted in a „shrinking world‟, where country borders are no longer impenetrable and
trade between international partners possible with relative ease. This environment of
rampant competition for customers and intense rivalry is largely responsible for the
need for effective positioning being recognised as critical.
According to Blankson and Crawford (2012), in addition to a firm‟s brand reputation,

product positioning is noted to contribute positively to company performance. The
authors strongly advocate the need for clear deliberate positioning strategy to
achieve business success. The constant changes in the market place provide buyers
with a much greater choice implying that an understanding of a product‟s inherent
value and its competitors has become crucial to marketers (Ostaseviciute and
Sliburyte, 2008).
Kotler (2003b), Karadeniz (2009) and Blythe (2009), along with numerous other
theorists draw from the research carried out by Treacy and Wiersema in the 1990s
and concur with the suggestion of a company striving for merit in “product
leadership, operational superiority and customer intimacy” to achieve organisational
success. In addition, Karadeniz (2009) points out Treacy and Wiersema‟s discussion
of excelling in each discipline as challenging and therefore suggests striving for a
leader position in one of the areas while maintaining a sufficient level of performance
in the remaining two. However, Trout and Rivkin (2008) advocate that organisations
focus on effective positioning by way of a point of differentiation that is unique and
meaningful in the industry, to achieve success. The authors caution marketers to be
weary of pursuing a chiefly superior operational effectiveness strategy, for the
reason that it offers a short term competitive advantage and in the long run is
inadequate owing to the improvements in technology and management.
According to Ostaseviciute and Sliburyte (2008), good product quality and a well
known brand are plainly not sufficient for successful product support in the
marketplace. The authors assert that, “The product must occupy an explicit, distinct,
15
and proper place, in the minds of potential and existing consumers, relative to other
rival products on the market” and, point out “Reaching (or not reaching) that
desirable position in the minds of consumers is the result of successful (or not
successful) positioning” (Ostaseviciute and Sliburyte., 2008: 97). Communication of
the firm‟s positioning strategy is crucial to attaining the desired place in the minds of
customers and is examined below.
2.5 COMMUNICATING THE POSITIONING STRATEGY
Once marketers and management have agreed on the most suitable position for the
product, the company needs to unambiguously communicate the stance to
consumers. For the positioning effort to be effective, it is essential for marketers to
deliberate communication strategies to influence customer perceptions taking into
consideration aspects such as physical and functional attributes, name, packaging,
price, advertising and psychological dimensions etc. (Kotler, 2003c).
Ries and Trout (2000: 2) popularised the phrase, “Positioning is not what you do to a
product, positioning is what you do to the mind of the prospect” in 1982 in their book
Positioning: The Battle for Your Mind. The authors explain that the key to achieving
success is being a leader in any category in the mind of prospective customers.
Thus Volvo speaks of being „the safest car‟; BMW highlights offering „the ultimate
driving machine‟; and Porsche proposes being „the world‟s best small sports car‟
(Kotler, 2003a) Hirschman and Holbrook, (1982) as cited in Burton and Easingwood
(2006), provide insight into the influence of sensory perceptions in terms of pleasant
and unpleasant sensations arousing emotions towards making a purchase decision.
Bearing in mind the influence of psychological dimensions, marketers are
accordingly advised to clearly understand the difference between the actual benefit
offered and the benefits perceived by the buyer, for the most the appropriate
communication strategy to be employed ( Burton and Easingwood, 2006).
Effective positioning is by no means haphazard. It is a structured process, where

marketers plan occupying “positions that distinguish their products from competing
products and provide them with the greatest strategic advantage in their target
markets” (Ostaseviciute and Sliburyte., 2008: 98). From the perspective of
16
Hartmann, Iba´n˜ez and Sainz (2005), communicating the firm‟s positioning strategy
exclusively in terms of either functional or emotional customer benefits is inadequate.
Therefore, it is advocated that functional and emotional strategies should be
considered as complementary rather than as alternatives when developing a
communication strategy.
Ries and Trout (2000) describe positioning as primarily being a communication

exercise. This view is supported by Kotler (2003a) and Blythe (2009) who suggest
the use of clear, simple messages that can be easily communicated through
advertising, public relations and the sales force, in a manner that it becomes
embedded in the minds of customers. Descriptors used by the authors include the
„fastest‟, the „safest‟, the „cheapest‟, the „best value‟, the „most friendly‟, the „most
convenient‟, the „more durable‟, the „best quality‟, the „best service‟ and the „most
technically competent‟.
In view of contemporary globalisation, Blythe (2009) emphasises that a simple

message is particularly important for firms when they communicate in many
languages across different cultures. According to Blythe this element is a crucial
factor for the growth of business globally. This view contrasts with the earlier
suggestion from Kotler (2003b) that double- and triple-benefit positioning can be
successful if used carefully. The company Smith Kline and Beecham is cited as an
example in this regard (Kotler, 2003b) The manufacturer promotes the Aquafresh
toothpaste which it produces as offering, „whiter teeth; better breadth and anti-cavity
protection‟ and visually reiterates the three benefits by way of the product squeezed
out of the tube being in three colours.
2.6 REPOSITIONING
Changes in customer needs and wants, customer indifference to the firm‟s offering
or less than expected firm performance compel changes in the competitive
environment (Doyle and Stern, 2006). Marketers are confronted with a continually
evolving market place and are at times thus forced to reposition their products
(Ostaseviciute and Sliburyte, 2008).
17
Repositioning is known as the strategy of changing the position of a product, brand
or company in the minds of consumers relative to the positions of competitors
(Strauss, El-Ansary and Frost, 2005; Ostaseviciute and Sliburyte, 2008). Strauss et
al. (2005), offer the example of Amazon.com as a recent repositioning initiative,
commenting that Amazon had moved from originally positioning itself as the „world‟s
largest book store‟, to now promising the „Earth‟s biggest selection‟ of products. The
merchandise available now ranges from music and electronic equipment to
cosmetics, shoes, sports goods and various other product lines. The repositioning
choices available to marketers, as discussed by Doyle and Stern (2006) are as
follows:
 Introduce a new brand
 Change an existing brand
 Alter the beliefs about the brand
 Alter the beliefs about competitive brands
 Introduce new or improve neglected attributes
 Search for new market segment
Introducing a new brand and making changes to an existing brand are regarded as
„real positioning strategies‟ and the others to be of a psychological nature.
From the perspective of Blythe (2009) it is best to consider a position which meets
the desired customer criteria as closely as possible as well as one which internally
receives the most enthusiasm and organisational commitment. Additionally the
author advises that the alternatives be evaluated and decisions be guided by the
following questions:
 Is it meaningful to customers?
 Given the firm‟s competencies and customer perceptions, is it feasible?
 Is the change difficult to match, does it provide a unique or superior
opportunity when compared with rivals?
 Is the alternative congruent with firm‟s objectives?
 Once the programme for repositioning is designed, does the benefit justify the
cost?
18
Companies set themselves apart from other firms by way of placing an emphasis on
distinctive characteristics. Positioning as stated by Ries and Trout (2000) is
essentially the communication of these distinguishing aspects. Since it is thus
evident that firms need to differentiate themselves from rivals before considering
positioning strategies, the bases for differentiation is explained in the subsequent
discussion.
2.7 DIFFERENTIATION
Kotler (2003b) defines differentiation as the process of adding a set of meaningful

and valued differences to a product with the aim of distinguishing the offering from
that which is made by a competitor. Ostaseviciute and Sliburyte (2008) similarly
indicate that competitive advantage is consequently achieved through differentiating
in a favourable way from similar products. Differentiation is further considered by
Karadeniz (2009) as the „added value‟ above that of competitor offerings. In other
words, literature scrutiny reveals that successful differentiation transpires when
customers are able to identify that the value offered by the product is more than that
of the competitor.
Kotler (2003b) and Cant (2010) suggest that a market offering or enterprise may be
differentiated along four different dimensions: product, services, personnel or image.
Cant (2010) further clarifies the bases for differentiation discussed, to be not the only
variables that may be used but merely the most obvious. These distinctions are
discussed by Burton and Easingwood (2006) as being either real or the result of
merely customer perception. The various dimensions and associated variables for
differentiation, as provided by scholars Kotler (2003b) and Cant (2010) are shown in
Table 2.1 and explained below.
19
Table 2.1 Differentiation variables
Product Services Personnel Image
Form Ordering ease Competence Symbols
Features Delivery Courtesy Media
Performance Installation Credibility Events
Conformance Customer training Reliability
Durability Customer consulting Responsiveness
Reliability Maintenance and Communication

repair
Repairability
Miscellaneous
Style
Design
Source: Adapted from Kotler (2003b) and Cant (2010)
2.7.1 Product Differentiation
As noted by Kotler (2003b) product differentiation is a positioning tactic available to

organisations to distinguish their products from that of the competitors. Blythe (2009)
comments that existing companies offering highly differentiated products, somewhat
secure their positions in the market by making it difficult for aspiring companies to
copy their products and make inroads into their customer base. Kotler (2003b: 205)
isolates the following variables that may be used in product differentiation:
 Form
The term „form‟, denotes the distinctive appearance of a product in terms of the
item‟s size, shape, outline and physical structure. The example of Aspirin is given to
demonstrate differentiation on account of the many forms of Aspirin available owing
to varying dosage size, shape, the coating and action time.
20
 Features
Features describe the product characteristics that enrich the product‟s basic function.
For example a motor vehicle manufacturer may provide customers with the option of
either air conditioning or a power steering as an additional feature. Features are
widely used as competitive tools to differentiate products. Differentiating by feature
involves market research as well as a consideration of feasibility. Marketers
generally begin the process by finding out from recent buyers the additional features
that would improve satisfaction. Thereafter a decision is made taking into careful
consideration the potential profits, potential market, cost and price.
 Performance
The level at which a product‟s primary characteristics operate denotes the
performance quality of the product. For example in marketing personal computers,
one firm may differentiate its products by offering a faster processor with a greater
memory compared to that of a competitor. This implies that the firm must design a
performance level appropriate to the target market and competitor‟s performance
level (Kotler, 2003b).
 Conformance
Conformance refers to meeting the expectation of delivering the same benefit as
identical products. Buyers expect all products to be of the same quality and meet the
promised specifications. High conformance quality is therefore known to provide
improved customer satisfaction.
 Durability
Durability is a measure of a product‟s expected operating life under natural or
stressful conditions. This is an important factor in vehicles and appliances where
customers are most often willing to pay a premium for such a product. Marketers are
however, advised to ensure that the new price is not excessive and drive away
patrons.
 Reliability
Reliability is defined as a measure of the probability that a product will not
malfunction or fail within a specified period. Buyers are generally willing to pay more
for reliable products. For example, Sony TVs though higher in price, receives
reasonable customer support since they are perceived as more reliable when
compared with television sets such as Sinotech.
21
 Repairability
Customers have been noted to prefer products that are easy to repair. Repairability
describes the ease of fixing a product when it fails or malfunctions. Users largely
value being able to fix products themselves to avoid large costs and time being lost.
This essentially represents the customer‟s view of ideal repairability. A vehicle
containing standard parts that may be easily replaced is described as offering high
repairability.
 Style
Style describes a product‟s look and feel to a buyer. Products that are attractively
styled usually receive support at often premium prices. The packaging, as well as,
the legibility of product labels have similarly, been noted to influence customer
purchase decisions. Aesthetics is believed to have been a key component of the
success of brands such as Harley-Davidson motorcycles, Apple computers and
Absolut vodka. Extraordinary styling provides the benefit of a certain degree of
individualism owing to the product being difficult to copy. Buyers are often willing to
pay a premium for such products.
 Design
The design of a product is the result of the integration of all of the variables
mentioned above: features, performance, conformance, durability, reliability,
repairability and style. From the perspective of the company, a well-designed product
is one that is both easy to manufacture as well as distribute. As a result an important
aspect of design is viability and the designer is thus tasked with working out the
variables worth accentuating. Design essentially is in totality, the way a product looks
and functions.
.
2.7.2 Services differentiation
Products such as steel are noted as largely standardised and are difficult to set part
from competitors by means of product differentiation variables. When products such
as these cannot be differentiated easily, Kotler (2003b) suggests, competitive
advantage may be achieved through adding services that are valued by the
customer. The main factors considered which may be used for service differentiation
are discussed below (Kotler, 2003b: 205):
22
 Ordering Ease
As the term suggests, ordering ease simply refers to how easy it is to place an order
with the firm. The example of Baxter healthcare, a service provider to hospitals in the
United States, is provided to demonstrate adding value through the simplification of
the ordering process. The healthcare company eased the ordering process by
providing hospitals with computers through which orders could be sent directly to the
company for delivery to the individual departments and wards. Similarly, on-line
ordering of groceries for home delivery has simplified grocery shopping through the
use of Web-based services.
 Delivery
Delivery considers how well a product or service is delivered to a customer.
Important factors influencing the quality of delivery are noted as speed, accuracy and
customer care. An example of superior delivery offered, is that of the cheque printing
company Deluxe Corp. The company is consistent in its service delivery and has
earned a reputation for supplying the printed cheques requested, a day after the
order is received.
 Installation
The work done to ensure a product is operational in its planned location is referred to
as installation. Buyers of heavy equipment generally expect a professional, efficient,
installation service to be provided in ensuring the proper set-up and functioning of
the product purchased at their location. Differentiation by installation is noted as
particularly important for companies that offer complex products such as computer
network systems.
 Customer training
Training in the proper and efficient use of the equipment purchased is key to
improvements being realised for the customer. The training provided to the customer
or the customers‟ employees often serves as an attractive differentiating factor that is
valued by the customer. General Electric is recognised as a vendor that trains users
in hospitals in the proper use of the X-Ray machines sold and installed.
 Customer consulting
Data, information systems and advisory services that the seller offers to buyers is
referred to as customer consulting. The Vitamin Institute, the communication
program for the Rite Aid pharmacy institute in the US, is provided as an example of
23
the use of differentiation through customer consulting. The company provides
customers with research on health-related information and offers consultation to help
customers keep informed and make more educated judgments on medication
purchases.
• Maintenance and Repair
Maintenance and repair describes the service arrangement offered to customers to
maintain products purchased in a good working order. These are often in the form of
a variety of repair and maintenance services. Firms such are Mercer, LG and Defy
generally provide for this aspect in the product guarantee offered.
2.7.3 Personnel differentiation
According to Kotler (2003b), appropriately trained and committed employees with the
right skills and expertise assist companies to achieve a competitive advantage. Such
employees are noted to offer customers a positive customer experience. Well known
examples described by the author are Singapore Airlines, MacDonald‟s, IBM and
Disney. Singapore Airlines are well reputed for the excellent service provided by their
flight attendants; MacDonalds‟ staff are noted for their courteousness; IBM is
remembered for their staff professionalism and; Disney employees for being upbeat.
Differentiating by means of personnel requires careful selection and training of
employees such that employees may offer service that is superior to the quality of
the service offered by competitors. By demonstrating courteous, professional, quick
and reliable responses to customers, companies may differentiate themselves from
competitors. From the perspective of Kotler (2003c), well-trained personnel generally
exhibit the following characteristics:
• Competence
• Courtesy
• Credibility
• Reliability
• Responsiveness
• Communication
For a firm to maintain its competitive advantage, attempts to secure customer
satisfaction through quality service by well-trained personnel is crucial.
24
2.7.4 Image differentiation
Frochot and Kreziak (2008) discuss image differentiation as an important aspect of a

firm‟s positioning strategy as it offers the prospect of seemingly standardised
products being perceived differently by different consumers. Kotler (2003b) supports
the notion that buyers respond differently to company and brand images and further
offers clarity on the concept of identity and image which often feature in literature
pertaining to image differentiation. Though closely related the concepts require
distinction as they vitally differ with regard to control. According to Kotler (2003b:
207) “Identity comprises the ways that a company aims to identify or position itself or
its product. Image is the way the public perceives the company or its products”.
Image is beyond the company‟s control and influenced by various external factors.
Frochot and Kreziak (2008) explain that a buyer‟s purchase decisions are often
influenced by the firm or its product‟s organic image. The organic image is the
perception created as the result of exposure to information sources such as news
reports; magazine articles; movies; documentaries; friends and relatives before the
consumer‟s actual first-hand experience with the firm or products. This reiterates the
importance of active management of a firm and its product‟s image lure customer
support.
A good image enriches customer opinion of the firm and its products; hence Blythe
(2009) supports purposeful image building initiatives. Kotler (2003b) describes an
effective image as one which embodies the firm and its product‟s character and
value proposition in a distinctive manner that appeals to the mind as well as the
heart of a consumer. For the image to achieve the desired result, Kotler (2003c)
suggests that the image of the organisation or the product is widely communicated
through logos, media and special events. An outline of the mediums most often used
is provided below:
 Symbols and Logos
A firm or brand with a unique, easily unidentifiable logo gains an advantage through
instant recognition. Firms often strive to incorporate strong distinctive symbols into
their profiles to distinguish themselves from competitors.
25
 Media
According to Frochot and Kreziak (2008) a firm‟s reputation is influenced by the
information stakeholders receive about the organisation. Media plays a significant
role in reputation management. Visual, audio as well as written media is noted to
shape the identity of the firm (Kotler, 2003c). Websites, advertisements, stationery
and business cards are considered modes for image building (Blythe, 2009).
 Events
Sponsoring events often help firms to leverage positive public opinion. The firm‟s
pledge is usually strategic in nature; where the intention is to enhance the firm‟s
reputation and the firm‟s activities and products in a positive way in the hearts and
minds of customers. Firms sponsoring sporting events draw attention to their
company‟s name through increased public exposure in such events. In South Africa
major banking concerns such as ABSA and Nedbank support popular sporting
events (Blythe, 2009). ABSA sponsors the national soccer team Bafana Bafana and
has been a sponsor for the Ruby Currie Cup for 25 years (Absa Group, 2009). One
of the major events which is sponsored by Nedbank is the Nedbank Golf Challenge
which is played annually at the Gary Player Golf Course in Sun City (Nedbank
Limited, 2012).
In sympathy with rapid changes and challenges in the market, Kotler (2003b)
advises marketers to evaluate the suitability of differentiating variables before using
them to ground positioning efforts. These aspects are discussed below.
2.7.5 Evaluating differentiation variables
Consumers are noted to gravitate towards options that provide the best value
(Blankson and Crawford, 2012). According to Kotler (2003b: 204), determinant
attributes are meaningful or worthwhile only if they meet the following criteria:
 Important
The option offered needs to afford a distinction that is highly-valued by a number of
prospective buyers. The difference is considered worthwhile if it is sought-after by
consumers such that it affords a competitive advantage. More simply, the quality and
features of the firm and its products need to appeal to the targeted segment as well
26
as present an attractive opportunity for the firm (Brook, 1994 cited in Ostaseviciute
and Sliburyte, 2008, p.101).
 Distinctive
Further, it is important that the attribute offered is delivered in a distinctive manner.
The difference needs to have the effect of alluding to the offering being exceptional
and recognised as providing a greater benefit to that of the competitor.
 Superior
In exploring various options to deliver the benefit, the distinction proposed needs to
be the best option. The difference should be superior to other ways of attaining the
benefit.
 Pre-emptive
It is important that the differentiated characteristic is not largely susceptible to being
copied. Substitutes such as these will likely reduce market share and impact
negatively on firm performance.
 Affordable
A delimiting factor which needs to be considered by a firm while differentiating a
product from that of the competitor is the affordability of the product to the customer.
For the undertaking to be worthwhile, the firm needs to be able offer the
differentiated item to the buyer at a price that the buyer can manage to pay.
Accordingly, high product costs need to be taken into account to ensure the
difference may be offered at a competitive price (Brook, 1994 cited in Ostaseviciute
and Sliburyte, 2008, p.101).
 Profitable
In keeping with fundamental business ideologies, the outcome of the initiative needs
to be profit. The firm essentially needs to ensure that introducing the difference is
profitable. The nature of the demand for the differentiated item and the intensity of
the competition in the market are further noted as aspects that need to be
considered (Brook, 1994 cited in Ostaseviciute and Sliburyte, 2008, p.101).
From the perspective of Ostaseviciute and Sliburyte (2008) finding a determinant

attribute, which satisfies all the above criteria is impossible. As a result the
researchers propose evaluating a differentiation variable opportunity in terms of the
number of conditions satisfied. The more qualities satisfied the more is the benefit.
27
Positioning strategies are essentially shaped from the differentiation variables
selected. A discussion of the strategies available is presented below.
2.8 POSITIONING STRATEGIES
According to Asikhia (2010), positioning strategies are approaches which help

achieve competitive advantage by way of placing a firm and its products in the
market in positions which customers perceive as unique. Doyle and Stern (2006)
describe positioning strategies as simply methods which outline where and how a
business competes. An outline of the literature associated with positioning is
provided in Table 2.2.
An evaluation of the literature delineates several distinguishable positioning

strategies being evident. These approaches are as follows:
 Attribute positioning
This is the most widely used approach where firms position themselves or their
products by means of an emphasis on one or a number of features or characteristics
which allows for distinctiveness. Hi-tech products offering features that are not
easily replicated by competitors often engage in such product attribute positioning
and promote unique innovative product features to achieve effective superior product
positioning (Aydin, 2009).
 Benefit positioning
Benefit positioning strategies emphasise the exceptional benefits that a firm or
product offer its consumers. The benefit received pertains to the advantage the
shopper or user gains owing to the product characteristics or firm and its products.
For example, the use of Bio-strat promises “improvements in concentration, general
health and the body‟s own power of resistance” (Bio-Strat AG, n.d). The firms‟
promotional campaigns strive to attract the support of parents of school children and
motivated high-achiever individuals. Benefit positioning is generally more effective in
view of its customer orientation. It gives emphasis to, the customer‟s interest of what
the product or firm will do for the customer (Strauss et al., 2005) .
28
TABLE 2.2: Summary of studies on positioning strategies
Author and Year Positioning Strategy Observations

Research focus
Ries and Trout (1981) Market leader, follower, The main focus of positioning is
Positioning strategies reposition competition, use establishing a favourable location
brand name, line extension for brands in the minds of the
consumers
Aaker and Shansby (1982) Positioning by attribute, The selection of a positioning
Positioning strategies price–quality, application, approach includes identifying
product–user, product class, competitors, relevant attributes,
competitor competitor positions and market
segments
Berry (1982) Retail Value retailing, time-efficient Value retailers focus on providing
positioning strategies retailing, high-contact better value than competitors; time-
retailing, sensory retailing efficient retailers focus on
convenience; high-contact retailers
focus on providing strong customer
service; sensory retailers focus on
making the shopping experience
exciting
Sujan and Bettman (1989) Superior attribute, niche Amount of relative differences
Effects of positioning on positioning between brands and the product
brand perceptions category determine the position of
that brand in the market as niche
and differentiated positions
Fisher (1991) Service Durable service Differentiation of services is
positioning differentiation effective only when they are
valuable to consumers and only
when they cannot be easily
imitated by competitors
Penchman and Ratneshwar Positioning by association, The categorisation of a brand is
(1991) Advertising for positioning by differentiation influenced both by the
positioning differentiated attribute and by the
way this difference is
communicated
Dibb and Simkin (1993) Attribute positioning, value After reviewing the positioning
Positioning in services positioning strategies, it is seen that the role of
positioning in the service sector is
not any less developed than other
sectors of commerce
Bennion and Redmond Positioning based on Both positioning strategies and
(1994) Positioning strategies service, product, support, choice criteria influence
in business markets price organisational buying behaviour.
Kotler (2003a) Attribute positioning, Benefit Positioning is on-going, needs to
Marketing insights and positioning, Use or be a carefully considered,
concepts every business application positioning, User deliberate and, communicated
manager needs to know positioning, Competitor effectively, to maintain a superior
positioning, Product position in the chosen
category positioning, Quality discipline so as not to lose out to
or price positioning competitors
Cant (2010) Seven positioning methods Positioning must take cognisance
Fundamentals of Successful as mentioned in Kotler of customer preferences and
marketing (2003a) positions of competitive brands
Source: Adapted from Aydin (2009: 26); Kotler (2003a) and Cant (2010)
29
 Use or application positioning
Inducing support for the firm or its products through accentuation of the use or
application of the product depicts use or application positioning. Asikhia (2010)
contends use or application positioning to fundamentally involve identifying and
exploiting a usage situation. Horlicks, for example is punted as providing for a restful
night‟s sleep while Lucozade is emphasised as an energy drink to keep one alert
during stressful periods (Amazon.com Inc., 2012; Lucozade, n.d).
 User positioning
This strategy involves the firm positioning the brand or product to buyers of similar
characteristics with similar needs and expectations (Asikhia, 2010). Asikhia (2010:
149) explains that the different groups of consumers may be delineated in terms of
demography for example, age, income, sex, occupation, education, geographic
location; behaviour in terms of volume of usage, benefit or satisfaction desired and;
psychographic factors such as personality, lifestyle and social class. Promotions of
bungee jumping in the Getaway and Offroad and Adventure SA magazines provide
examples of marketers positioning in a manner to appeal to thrill-seekers (Cant,
2010). Strauss et al. (2005), explains that this positioning method relies on correctly
identifying customer segments and it is particularly successful when the segment
has some unique quality that ties the product‟s benefits closer to the specific group
than to the other segments.
 Competitor positioning
Inherent in the definition of positioning is the comparison with competitors. Though
this is implicit in the competitive positioning method, the strategy essentially involves
the most assertive aspect of the approach being that of decidedly defining the
product with respect to a competitor (Aydin, 2009). Aydin (2009) notes two possible
tactics in this regard: associative positioning strategies which echo similarities with
strong competitors, and differential positioning strategies which strive to differentiate
products from rivals by emphasising attributes which are superior to competitors or
lacking in the opposition. Mercedes and BMW are examples in the automobile
market where buyers are campaigned by touting comparisons to each other (Cant,
2010). Avis, the car rental company based in the U.S further illustrates competitor
positioning against its larger rival Hertz, by grounding promotional campaigns by the
30
motto, “in this field we are the second, therefore, we exert more efforts” (Karadeniz,
2009: 100).
 Product category positioning
Efforts to expand into new markets may at times be facilitated by firms positioning
themselves in product categories not traditionally associated with the organisation. In
this regard, Cant (2010) draws attention to museums and planetariums customarily
known as educational establishments, positioning themselves as tourist attractions to
increase market share.
 Price-quality positioning
Consumers of different socioeconomic status have been noted to have varying
expectations of quality at different price levels (Asikhia, 2010). Asikhia indicates that
it has become crucial for marketers to attain consumer support by ensuring a price-
quality ratio balance such that the customer is able to perceive actual value for
money. Pep Stores is known for merchandise of reasonable quality offered at low
prices whereas Edgars is recognised for higher quality garments retailed in the
medium-high price range (Cant, 2010). Alluding to high price as a sign of quality or
low price as an indication of value are possible considerations of quality or price
positioning, otherwise known as value positioning or „value for money‟. For example,
Rolex watches are widely acknowledged as expensive watches providing high
quality.
2.9 POSITIONING IN SERVICE BUSINESSES
The findings of an in-depth qualitative study of four service firms in Texas conducted
by Blankson and Crawford (2012) recommend that managers of service firms may
strive to achieve acceptable consumer perceptions and sales by emphasising
positioning efforts such as value for money; service; reliability; top of the range;
branding and attractiveness. A critical evaluation of these variables suggests the use
of positioning strategies such as price-quality positioning (value for money); benefit
positioning (service and reliability); competitor positioning (branding and top of the
range) and attribute positioning (attractiveness) in service firms. Furthermore the
researchers noted three positioning aspects, i.e. „branding‟, „service‟ and „value for
money‟ as being the most dominant factors in the service firms investigated. In light
31
of these findings the suggestions made by Rigik (2010) which relate to a car wash
service business become pertinent. Rigik (2010) suggests that customer perceptions
could be influenced by using tools such as loyalty programs, maintenance programs,
water saving initiatives and social networking to increase profits in a service
business.
2.10 GREEN BRAND IDENTITY
In the last decade, increasing customer environmental awareness has resulted in

marketers being more cognisant of the influence of sustainability concerns on
customer perception. Bearing this in mind, a green brand identity is briefly explored.
Environmental concern has been noted to forge a demand for new environmentally-
friendly firms and their products and at times results in existing products being
redesigned, reformulated or produced differently (Hartmann et al., 2005). The degree
of influence varies across markets and has been recognised as having the potential
to at sway the behaviour and attitudes of consumers (Hartmann et al., 2005).
Hartmann et al. (2005) discuss good eco-performance as a possible means of new

market and differentiation opportunities. These authors show that there is a need for
marketing strategists to understand the influence of the green agenda on their
customers and business so as to be able to exploit these prospects. Successful
green association provides benefits to environmentally conscious customers.
Benefits may be related to an affinity for nature and concern for its well-being; a
sense of altruism and personal fulfilment of contributing to the „greater good‟ and a
feeling of individual achievement by demonstrating to others, personal environmental
consciousness.
National Petroleum News (2010) and Rigik (2010) discuss the example of the
Watersavers Partner program offered by the International Car wash Association to
show that car wash businesses practising responsible environmental behaviour
through water saving, add value to green customer relationships and enrich the
perception of the firm and its products. However, Hartmann et al. (2005) caution that
focusing exclusively on the green brand identity of a product may not be sufficient to
32
influence customers‟ purchase decisions. Effective green brand communication
strategies evoke pleasant emotive associations with nature, emphasise the
environmentally-friendly attributes of the firm and its products while unambiguously
communicating the individual benefits and value delivered to the customer.
Subsequent to identifying the differentiation dimensions and variables that would

help achieve the desired influence on the minds of customers, researchers advise
marketers to follow certain steps when engaging in positioning efforts (Cant, 2010;
Ostaseviciute and Sliburyte, 2008). A discussion of this process will follow.
2.11 THE POSITIONING PROCESS
Cant (2010) presents a seven-step method that may be used in positioning. Figure
2.1 reflects a comparison of the generic marketing research process suggested by
Kotler (2003c) with the positioning approach proposed by Cant (2010). The
researcher notes a general similarity in the methods and contends that a more
comprehensive positioning model would improve marketers‟ success in efforts to
achieve competitive advantage by means of attaining uniqueness (Ostaseviciute and
Sliburyte (2008).
Winner, (2007) as cited in Ostaseviciute and Sliburyte (2008: 98) summarising the
opinion of various researchers, corroborates that positioning is a complex, continuing
and sequential process and advocates that the process needs to be guided through
probing the following questions:
 What dimensions do consumers use to evaluate product offerings in the
industry or category?
 How important is each of these dimensions in the consumer decision making
process?
 How does the firm and the competition compare on the dimensions?
 What decision processes do the customers use?
33
Figure 2.1 Comparison of the marketing research process to the positioning
process
Marketing process Positioning process
Source: Kotler (2003c); Cant (2010)
Researchers concur with Winner‟s counsel to focus on customer preferences and

perceptions accepting that these aspects largely determine consumer behaviour
(Kotler, 2003c; Burton and Easingwood, 2006; Cant, 2010; Blankson and Crawford,
2012). Smith (2003: 38) had earlier alluded to this when it was advocated that
questions such as the following need to be considered:
 Can the company fulfil the ideal positioning?
 Has it got the resources?
34
 Is it capable of continually delivering a suitable marketing mix?
Ostaseviciute and Sliburyte (2008: 98) have integrated the aspect of communication
and place more emphasis on differentiation relative to competitors in their proposed
product positioning model. A more comprehensive positioning process taking into
consideration the capacity of the firm, is accordingly presented in Figure 2.2, and
discussed below.
Fig 2.2: Proposed positioning process
Step 1 :
Identify and analyse competitve rival firms, brands or products in the
market
Step 2 :
Identify the determinant attributes and determine their significance to
the user
Step 3 :
Identify the current position the firm, brand or product and the
position of rival firms, brands and other competiting products
Step 4 :
Compose the positioning map
Step 5 :
Determine the desired position of the firm, brand or product
Step 6 :
Select the positioning or repositioning strategy taking into
consideration the firm's capacity
Step 7 :
Create the positioning statement
Source: Adapted from Kotler (2003c), Ostaseviciute and Sliburyte (2008), Cant
(2010)
35
Step 1: Identify and analyse competitive products, brands or rival firms in the
market
This is essentially the foundational phase which provides for an understanding of the
firm and its products relative to competitors. Rivals against which consumers
compare the firm and its products are identified in a manner that a positioning frame
evolves (Ostaseviciute and Sliburyte, 2008). It is important that marketers familiarise
themselves with the competitive aspects of rivals as it provides for a deeper
understanding of the strengths and weaknesses of the constituents relative to the
competitor and in turn facilitates a more worthwhile positioning effort (Cant, 2010).
Ostaseviciute and Sliburyte (2008) are of the opinion that the best method of
determination is the quantitative approach. In a quantitative approach the use of a
consumer survey allows for collecting a large amount of useful data in a relatively
shorter period of time. The data can then be easily systemised, adapted and
processed statistically at a lower cost compared to a qualitative study which would
entail in-depth interviews and detailed analysis.
Step 2: Identify the determinant attributes and measure their significance to

the user
Determinant variables are those variables that play a key role in helping customers
to differentiate among alternative firms and the products being offered (Cant, 2010).
Marketers are able to assemble the required information through appropriate market
research. Ostaseviciute and Sliburyte (2008) note group discussions to be effective
in determining the determinant attributes and the survey method better suited to
establishing the significance of the determinant attribute to the user. Subsequent to
the identification of the determinant attributes, the significance to the user is
measured by requesting respondents to rate their ideal product and existing products
with respect to the determinant variables (Ostaseviciute and Sliburyte, 2008). Cant
(2010) similarly embraces the use of a structured questionnaire to probe customer
perceptions of the various firms and their products.
Step 3: Identify the current position the firm, brand or product and the position
of rival firms, brands and other competing products
Ostaseviciute and Sliburyte (2008) suggest that the task is best accomplished by
carrying out a target segment survey. Consumers evaluate the product against
36
competing products in terms of the most significant determinant attributes. From the
data regarding perceptions the company, through data analysis, is able to establish
how strongly a particular brand is associated with the various determinant variables
(Cant, 2010).
Step 4: Compose the positioning map

A positioning map is principally a graphic representation of the customer‟s
perceptions of the firm and its products and competitors in terms of the variables
which are valued and therefore may otherwise be referred to as a perceptual map
(Blythe, 2009). Ostaseviciute and Sliburyte (2008) explain that information solicited
from the results of the first stages of the positioning process provide marketers with
the inputs for the construction of the competitive reference map. Blythe (2008: 87)
highlights that the, “positions on the map are based on average responses of
customers in the target group” and explains that “they are not objective” and “based
on the firm‟s view of the quality of its product”. Blythe (2008) accordingly reasons
that this provides the opportunity for improving perceptions through promotional
efforts, changes in quality of the firm and its products and adjustments to the price of
the product that may be offered. The reason why a positioning map is such a
powerful tool for examining the position of products is further discussed by Arora
(Arora, 2006) as cited by Ostaseviciute and Sliburyte (2008: 100) as follows:
 It develops understanding of how the relative strengths and weaknesses of
different products are perceived by buyers.
 It builds knowledge about the similarities and dissimilarities between
competing products.
 It assists the process of repositioning existing products and the positioning of
new products.
 The technique helps to track the perception that buyers have of a particular
product, and assists in the measurement of the effectiveness of
communication programs, and marketing actions, intended to change buyer‟s
perceptions.
 It enables managers to identify gaps and opportunities in the market and
allows monitoring of effects of past marketing communications.
37
Ostaseviciute and Sliburyte (2008) emphasise the visual aid as a highly valuable
means of assisting managers with better decision-making, more effective positioning
efforts and improved performance.
Step 5: Determine the desired position of the firm, brand or product

The most desirable position for a product is the one that takes into consideration the
attractiveness of the market segments, positions of competitive products, as well as
the present and potential product strengths of serving that segment (Ostaseviciute
and Sliburyte, 2008). Premised on a review of early literature by Scheinin (1998),
Ostaseviciute and Sliburyte (2008) advise avoiding market segments where there is
no differential advantage benefit and suggest companies choose the desired position
as close to an ideal customer perceived position as possible. The ideal position from
the customer‟s perception is the place on the positioning map that represents the
combination of attributes which is most valued. This point describes the product the
consumer would prefer over all others. This part of the process involves a
compromise between the attractiveness of the market segments, the differential
advantage benefit realised and the ideal customer position.
Step 6: Select the positioning or repositioning strategy taking into

consideration the firm's capacity
In the positioning process, actual selection of the positioning or repositioning strategy
that will be employed is considered to be one of the most crucial aspects. The
decision is usually based on factors such as the attributes, price and quality, rivals,
benefits, use, users and product class (Ostaseviciute and Sliburyte, 2008). In
deciding where to position or reposition a product, it is important for marketers to
also take into consideration the organisation‟s own capabilities.
Step 7: Create a positioning statement

Kotler (2003b) states that the conception of the positioning statement is a complex
highly interactive, creative process which at times involves many revisions before an
acceptable result is achieved. Clear positioning statements have major value. From
the perspective of Kotler (2003b) and Ostaseviciute and Sliburyte (2008) positioning
statements play a key role in guiding the firm‟s efforts in the marketplace. Although
these statements are not advertising messages, they afford excellent guidance to a
38
business‟ advertising campaign. A common complaint advertising agencies
experience with their clients is that they have not clarified their strategies. Without
clarity and clear guidance, the creative teams find it extremely difficult to meet the
expectations of the client within a reasonable time (Ostaseviciute and Sliburyte,
2008). In creating a positioning statement, scientists Rossiter, Piercy (1997) cited in
Ostaseviciute and Sliburyte (2008) suggest that one should be mindful of the
product‟s intended target audience and should clearly communicate the benefit of
the product to the consumer. It therefore becomes evident that it is crucial for a
positioning statement to be formulated such that there is alignment between the
firm‟s positioning strategy, promotional objectives and overall business strategy.
2.12 POSITIONING ERRORS
Besides a highly competitive environment and rapid changes in the market, at times
products struggle to achieve customer support as a result of the initial positioning
errors of marketers. Kotler (2003c) believes marketers need to be mindful of four
main positioning errors: under-positioning, over-positioning, confused positioning and
doubtful positioning. Groucutt, Leadley and Forsyth (2004) describe these situations
as risky product positions in the market and similarly advise marketers to caution
against them. Blythe (2009) suggests marketers in their positioning efforts need to
take cognisance of the factors known as the four C‟s of positioning: clarity, credibility,
consistency and competitiveness. An explanation of these risky situations or
positioning errors is provided below:
 Under positioning
Companies may at times encounter consumers who have only a vague idea of the
product and the features or benefits offered by the product. The consumer is
indifferent to the product and merely sees the item as simply an option among many
other similar products in the market place. The customer is not able to recognise
anything particularly special about the product and cannot relate the positioning
method with the benefit offered by the product. This situation involves a poor
awareness of the product and its corresponding benefits due to vague positioning
and is referred to as under positioning. Blythe (2009) advocates clarity, such that the
product, the benefits it offers and, its position relative to other products is obvious.
39
 Over positioning
Over positioning is the result of buyers having a particularly narrow view of the
products and corresponding benefits offered. Groucutt, Leadley and Forsyth (2004)
provide an example of over-positioning in terms of the drawback of a loss of sales
owing to customers believing that a specific glass manufacturer only offers highly
priced luxury items although the firm additionally offers a variety of lower priced
standard glassware. The consumer simply assumes that all items offered by the firm
are expensive.
 Confused positioning
This error involves buyers holding a confused image of the product and the product‟s
position within the marketplace and is the outcome of confused positioning. In this
case, the scenario develops as a result of the firm making too many decisions and
claims about the product as well as making too frequent changes to the positioning
strategy. Consistency is thus vital where marketers need to uphold a consistent
message of the selected position and the image of the product.
 Doubtful positioning
Doubtful positioning occurs on account of buyers finding it difficult to believe product
claims concerning the product‟s features, price, or manufacturer. Blythe (2009)
advises marketers to ensure that the position communicated is logical and
believable, in a manner that does not compromise credibility. The author further
demonstrates doubtful positioning by way of the example of an obviously cheap
product positioning itself as a premium product being unrealistic and therefore
unbelievable.
2.13 CONCLUSION
Most marketing scholars consider the position of a product to be the customer‟s

perception of the value offered relative to that of the competition. Initiating and
occupying a viable competitive gap is regarded as successful positioning. The
business environment is dynamic and is shaped by changing technology and global
competitiveness. Subsequently vigilant firms should engage in positioning and re-
positioning strategies that sustain customer loyalty. The key contributions from
various researchers were amalgamated and an adapted model of the positioning
40
process is suggested. In this chapter the researcher discussed positioning as a
means to reach the desired place on the customer‟s perceptual map. In the next
chapter the empirical study is delineated. The research design and methodology as
well as the development of the measuring instrument are discussed.
41
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 INTRODUCTION
Chapter one provided an overview of the research study and accordingly explained
the rationale for the investigation and the primary and secondary research questions
of the inquiry. To guide the research process, chapter two presented a literature
review of the relevant arguments and ideas on the topic of positioning to establish a
theoretical framework for the study.
The literature review began by clarifying the importance of positioning, effective

communication of the positioning strategy and repositioning. The discussion also
entailed positioning in service businesses, the constructs of differentiation, the
different positioning strategies as well as the method that may be used in positioning
efforts. In this chapter a discussion of the research approach used to resolve the
main problem of the study is presented.
Chapter three discusses the different types of research methods available and
explains the empirical process adopted in the study. The chapter examines the
research approach utilised, type of data collected, the design and development of
the research instrument used, matters of validity and reliability, sampling and the
strategies used for analysing the data collected.
3.2 DEFINITION OF RESEARCH
Cooper and Schindler (2011) describe research as an organised investigation which

is carried out to provide information to solve problems. Research is defined by Leedy
and Orman (2005) as a systematic process of collecting, analysing and interpreting
data to improve one‟s knowledge and understanding of a phenomenon of interest.
Research initiatives are often categorised in terms of the objective of the study
namely reporting, descriptive, explanatory and predictive (Cooper and Schindler,
42
2011). Reporting studies strive to provide more insight and deeper understanding
through the summation of data. Descriptive studies aim to answer questions such as
„who, what, when, where and sometimes how‟. An explanatory study strives to
explain the reasons for the occurrence observed by the descriptive study while a
predictive study attempts to predict when and in what situations an event will occur.
From the perspective of Kumar (2011) the distinction between a research and non-
research activity is the way in which answers are found to research questions. For a
process to be considered research it must be undertaken within a framework of
certain philosophies and methodologies. Research activity needs to comply with
being objective, controlled, rigorous, systemic, valid, verifiable, empirical and critical.
Cooper and Schindler (2011: 20) affirm the importance of business research as a
method of providing information to guide management decisions and reduce risk.
Business research is profiled as being “a process of determining, acquiring,
analysing and synthesising, and disseminating relevant data, information, and
insights to decision makers in ways that mobilise the organisation to take appropriate
actions, that in turn, maximise performance”.
This project is a formal descriptive research case study to determine the most
appropriate positioning strategy for a car wash business in Port Elizabeth. Within this
framework, aspects such as „who, what and how‟ are determined. The business‟
client base and the attributes most valued by its customers when compared to
competitors are considered to provide insight into possible opportunities for improved
business performance through the use of appropriate positioning methods.
3.3 SCIENTIFIC RESEARCH ETHICS
According to Mouton (2001) scientific research is regulated by the rules of the

scientific community, namely, professional societies and associations, universities
and in certain instances funding agencies. A researcher pursuing a formal scientific
research approach is accordingly required to conform to these generally accepted
norms and values. In conducting scientific research, adherence to the rules and
conventions listed below is noted as imperative:
43
 Ensure the research is conducted in a socially responsible manner
 Maintain the highest possible technical standards
 Acknowledge all sources consulted
 Disclose the methodology and the techniques of analysis
 Indicate methodological constraints and the limits of findings
 Ensure the use of authentic, accurate data or observations
 Report findings fully without misrepresentation of results
In this study the researcher has taken due cognisance of the above conventions in
endeavours to answer the main research objective of the study. The investigation
consequently follows a research approach which is congruent with scientific research
standards.
3.4 RESEARCH DESIGN
Research design refers to the procedural plan that is used by a researcher to guide
the collection and analysis of data for a research study. It outlines the type of
information which will be collected, the sources of data, data collection procedure,
analysis of the data as well as the communication of the final research findings
(Kinnear and Taylor, 1996; Kumar, 2011). Mouton (2001: 55) succinctly describes a
research design as “a plan or blueprint of how you intend conducting the research”.
This view is supported by Kumar (2011) who further adds that a research design is a
strategy which guides the investigation towards answering the research question
validly, objectively and accurately.
Cooper and Schindler (2011) synthesise various definitions of research design and
generally recognise the essentials of a research design to be as follows:
 A plan which is activity- and time-based
 A strategy which is always based on the research question
 A guide for the selection of sources and types of information
 A framework which guides the specification of relationships among the study‟s
variables.
 A procedural outline of the various research activities to be undertaken
44
From the perspective of Kumar (2011) the contribution of an empirical investigation
is evaluated in terms of the research design adopted. Ensuring a research design is
“valid, workable and manageable” to aid the researcher in attaining “valid findings,
comparisons and conclusions” are proposed Kumar (2011: 8).
3.5 QUANTITATIVE AND QUALITATIVE RESEARCH
The viewpoint that a research study may be profiled on the basis of three different
perspectives , namely applications of the findings of the research study; objectives of
the study and the mode of inquiry used in conducting the study is presented by
Kumar (2011). Classification of the various types of research studies is clarified as
not being mutually exclusive, suggesting that the study may be underscored by all
three standpoints. The author further offers the example of the possibility of a study
being classified as pure or applied (from the perspective of application), as
descriptive, correlational, explanatory or exploratory (from the perspective of
objectives) and as qualitative or quantitative (from the perspective of the inquiry
mode employed).
Quantitative research is described by Locke et al. (2010) as research that is defined

by numbers which address the existence of concerns in terms of the quantity or the
degree of variation that is present. Cooper and Schindler (2011) associate
quantitative research with the attempt to determine the precise measurement of a
phenomenon, situation, problem or issue. Kumar (2011) concurs with these
viewpoints and rationalises quantitative research to be research which is geared
towards determining the magnitude of variation. The quantitative approach is often a
usual business research method for measuring consumer behaviour, knowledge and
opinions or attitudes (Cooper and Schindler 2011).
According to Kumar (2011) a structured approach to inquiry is usually classified as

quantitative research. Employing a structured approach to determine the extent of a
problem, issue or phenomenon is urged. The data assimilated as a result of a
quantitative approach are often in the form of participant responses that are coded,
categorised, and reduced to numbers to enable statistical analysis (Cooper and
45
Schindler, 2011). Consequently, the „frequency of response‟ entailing the quantitative
tally of the events or opinions that are of interest to the researcher is made possible.
Qualitative research strives to explore in depth and detail events, situations,

phenomenon or issues and interactions between people and things (Cooper and
Schindler, 2011). The approach entails a focus on aspects of the world as they are
experienced and reported by participants (Locke et al., 2010). An account of the
different opinions held with respect to an issue and the description of the living
conditions of a community are examples of qualitative initiatives (Kumar, 2011). An
unstructured approach is noted as most appropriate to seek answers to these types
of research questions. An inquiry of this nature is generally recognised as qualitative
research and noted to offer the advantage of flexibility and deeper understanding.
The raw data collected by means of a qualitative approach is primarily in the form of
words and text (Locke et al., 2010; Cooper and Schindler, 2011). The data often
consists of detailed verbal or visual descriptions of events, situations and
interactions. They encompass transcripts of interviews, video focus groups and
researcher notes which capture the personal expressions of participants (Cooper
and Schindler, 2011). A summary of the key distinctions between qualitative and
quantitative research is given in Table 3.1.
Kumar (2011) suggests the use of a qualitative approach for research of the different
perspectives of an issue, the various problems experienced by people living in a
community, or the different views of an issue held by people. A quantitative approach
is considered most appropriate for research investigating “how many people have a
particular perspective, how many people have a particular problem or how many
people hold a particular attitude” Kumar (2011: 13). Quantitative research is
identified as being often used to test theory while the use of qualitative research is
noted as being largely appropriate to build theory through detailed description and
understanding (Cooper and Schindler, 2011).
46
Table 3.1 Differences between qualitative and quantitative research
Qualitative Quantitative
Focus of
Understand and interpret Describe, explain and predict
Research
Dominant Explains prevalence, incidence,

Explores experiences, meanings,
extent, nature of issues,
Research Area perceptions and feelings
opinions and attitudes
Approach to Structured/rigid/predetermined
Unstructured/flexible/open methodology
inquiry methodology
Researcher Limited, controlled to prevent

High – researcher is participant or catalyst
Involvement bias
Sample Design Non-probability, purposive Probability
Sample Size Small Large
Measurement Of Emphasis on some form of

Emphasis on description of variables measurement or classification
Variables
of variables
Subjects the variables to

Analyse responses, narratives or
Analysis of data frequency distributions, cross
observational data to identify themes and
tabulations or other statistical
describe these
procedures
Source: Kumar (2011: 20) and Cooper and Schindler (2011: 163)
As mentioned earlier this study adopted a quantitative research framework. The

qualitative and quantitative approaches had been taken into consideration and a
quantitative approach was selected since the study strived to determine the
magnitude of variation in the various positioning aspects.
The successful positioning efforts in service businesses that were identified by

Blankson and Crawford (2012) through an in-depth qualitative study of service firms
formed the conceptual framework in this study and had been used to guide the
investigation. According to these authors, emphasis on one or more of the
positioning strategies such as price-quality positioning (value for money); benefit
47
positioning (service and reliability); competitor positioning (branding and top of the
range) and attribute positioning (attractiveness) contribute towards successful
business performance. This study aims to establish the car wash business‟ focus in
these areas and the significance of these aspects to the customers of the business.
3.6 FOCUS OF THE RESEARCH STUDY
Kinnear and Taylor (1996) identify the measurement of attitudes to be crucial to

numerous marketing decisions. Attitudinal research is viewed as important because
of the relationship which exists between the attitudes and behaviour of buyers. An
individual‟s attitude with respect to an object or phenomenon is considered to
fundamentally comprise of the following components (Kinnear and Taylor, 1996):
 a cognitive component which involves a person‟s belief regarding the
attributes of the object of concern for example the durability or speed
 an affective component which encompasses a person‟s feelings regarding the
desirability of these attributes such as good or bad
 a behavioural component which implies a person‟s readiness to respond
behaviourally to the object as a result of their beliefs and feelings
This mind-set suggests that purchase behaviour may be encouraged through the
application of appropriate strategies to influence the cognitive and affective
components of a buyer‟s attitude. According to Kinnear and Taylor (1996)
determining the attitudes of customers toward a product or service aids the
development of positioning strategies which are effective in promoting product
acceptance.
Blankson and Crawford (2012) suggest the use of appropriate positioning strategies
to stimulate improved business performance and support SMME success. This study
accordingly investigates the attitudes of the customers of the car wash business and
endeavours to answer the research objective stated below:
What is an optimal positioning strategy for a car wash business in Port Elizabeth?
48
To answer the primary research objective described above, a number of secondary
issues had been established to aid the investigation. These are presented below:
1: What is the typical demographic profile of the customers of the car wash
business?
2: What are the attributes of the business most valued by its customers?
3: From customers‟ perceptions does an ideal template for positioning emerge?
Due to the descriptive nature of the inquiry, a hypothesis has not been formulated.
This study involved a comprehensive review of the literature on positioning and an
empirical study to establish an appropriate positioning strategy for the car wash
business. A written questionnaire was developed and administered to the customers
of the car wash business to acquire the data needed to meet the requirements of the
study.
3.7 DESIGN AND STRUCTURE OF THE MEASURING INSTRUMENT
Cooper and Schindler (2011) advocate the use of communication-based research

techniques to address attitude enquiries. The measurement of customer attitudes
using the communication method entails the questioning of respondents (Kinnear
and Taylor, 1996). These authors note the most widely used tool of attitude
measurement to be the self-reporting technique.
The self-reporting technique entails respondents reporting their beliefs or feelings by

responding to questions on a written questionnaire. Verbal rating scales (i.e.
semantic differentials) such as very favourable, somewhat favourable, indifferent,
somewhat unfavourable and very favourable, are frequently used in self-reporting
attitude measurement. In verbal rating the respondents are requested to indicate
their response to the question presented by checking the scale which best
corresponds to their belief or feeling. Kinnear and Taylor (1996) suggest the self-
reporting technique to be most appropriate for research which requires attitudes to
be formally measured and quantified.
49
3.7.1 Layout and content of the questionnaire
This study made use of the survey approach to collect data from the customers of
the case study car wash business. The measuring instrument used to meet the
objectives of the study was primarily informed by a comprehensive review of relevant
literature conducted by the researcher. Additionally the development of certain items
in the questionnaire which related to the demographic profile and the quality of
service provided by the business was guided by validated instruments used in similar
studies by Johnson et al. (2000); and Jirachaisingh (2007). The questionnaire
comprises of two distinct sections, namely:
 Section One: Demographic details of respondents and some aspects of
customer behaviour
 Section Two: Statements relating to respondents‟ beliefs, feelings and likely
behaviour
The purpose of obtaining data relating to the demographic profile of respondents had
been to facilitate the identification of customers with similar characteristics. For
example, age, income, gender, occupation, education, geographic location and
volume of usage. Questions such as age and income which could be viewed by
respondents as unnecessary and intrusive were cushioned by providing the option of
selecting the relevant category instead of the specific numerical value.
Questionnaire items in section two had been constructed to determine the attitude of
the customers to the case study car wash business when compared to other car
wash businesses in the region. Aspects such as value for money, service and
reliability, branding and top of the range, as well as attractiveness had been
measured. This helped to establish which business attributes had been most valued
and which attributes had not been considered as appealing or attractive to the
customers of the case study car wash business.
Leedy and Ormrod (2005) and Struwig and Steed (2010) provide the following
general guidelines for the design of an effective questionnaire:
50
 ensure that the questionnaire contains precise and clear instruction on how to
answer questions
 minimise the number of questions to avoid respondent fatigue
 start with questions that are easy to answer
 proceed from general to specific questions and ask personal or sensitive
questions last
 use simple, clear, unambiguous language and avoid technical jargon or
subject-related terms
 ask questions which are essential to answering the research question
From the perspective of Kinnear and Taylor (1996) question wording is critical to
ensure accurate research results and avoid serious measurement error. The use of
simple language and care taken to avoid leading, biasing and double-barrelled
questions is generally advised.
The researcher had taken cognisance of the above guidelines in the design and
development of the questionnaire. To encourage respondents to be sincere and
truthful in their responses the researcher assured participants of their anonymity by
clearly stating on the covering letter attached to the questionnaire that names had
not been required.
3.7.2 Scaled-response questions
Attitudes and perceptions are often measured through the use of rating scales such
as Likert-type scales (Struwig and Steed 2010). According to Leedy and Ormrod
(2005) the use of rating scales assists in easily quantifying people‟s behaviours and
attitudes. In this study, the attributes of the business which were most valued by the
customers had been measured on a four-point Likert scale ranging from Strongly
Disagree, Disagree, Agree and Strongly Agree. Kinnear and Taylor (1996) clarify
that there are no fixed number of categories which are deemed optimal for a scale
(i.e. forced response). The option of a „neutral‟ or „no opinion‟ response had been
omitted to encourage the customer to indicate some degree of feeling and not
“straddle the fence”. (Leedy and Ormrod, 2005: 187).
51
3.7.3 Testing the questionnaire
Regardless of the skill of a researcher in designing a questionnaire, testing or

piloting the questionnaire to identify areas that may be improved is required prior to
its final distribution and administration (Kinnear and Taylor, 1996). Kumar (2011)
indicates that pre-testing the questionnaire is important to correct the potential
problems that respondents may have in understanding or interpreting the questions
posed. Feedback on aspects such as incorrect wording, ambiguous meaning and
inconsistent interpretation must be noted and corrected.
A pilot group of 15 friends, colleagues and neighbours of the researcher who

normally have their vehicles cleaned at a car wash had been requested to identify
errors and suggest improvements to the draft questionnaire. Hard-copies of the
questionnaire were hand-delivered to each member of the pilot group where
participants had been requested to provide their comments, corrections and
suggestions on the printed document. The questionnaire was amended taking into
consideration the comments and suggestions from the pilot group to improve the
quality and readability of the measuring instrument.
Before administering the final version of questionnaire to the customers of the case
study car wash business, the amended version of the questionnaire (Annexure B)
was administered to five customers at a neighbourhood car wash business to
establish the user-friendly nature of the document. The researcher had noticed that
participants seemed confused when responding to the items in section two of the
questionnaire and the time taken to complete the exercise had been much longer
than anticipated. To improve the clarity, items in section two were organised in
categories in the final version of the questionnaire (Annexure C).
3.7.4 Validity and reliability considerations
Cooper and Schindler (2011) state that a researcher‟s findings may only be
considered accurate if the results retrieved have also been consistent. This implies a
need to keep in mind validity and reliability considerations when designing a
measuring instrument. Validity refers to the extent to which a measuring instrument
52
measures that which it essentially has been set out to measure (Struwig and Stead,
2010; Cooper and Schindler, 2011). Authors Kinnear and Taylor (1996: 232) add
their voice and assert that validity fundamentally deals with the question of “are we
measuring what we think we are measuring?” According Burger (2003) the accuracy,
meaningfulness and credibility of a research project broadly provide an indication of
the validity of a research initiative. Reliability refers to the extent to which a
measuring instrument yields consistent results when the characteristic measured
remains the same (Cooper and Schindler, 2011). Researchers are cautioned to take
cognisance of validity and reliability issues to ensure their findings are of actual
value.
The main approaches to address validity are face validity, content validity, and
criterion validity and construct validity (Cooper and Schindler, 2010). Face validity is
noted as the extent to which a measuring instrument on the surface is seen to
measure a particular characteristic. In addition, the researcher interprets face validity
as the appearance of the measuring instrument in terms of ease of reading, legible
font size and adequate font spacing to avoid a look of disorder. Content validity
refers to the extent to which the items in the measuring instrument “reflect the
theoretical content domain of the construct being measured” (Struwig and Stead,
2010: 139). Scrutiny of measuring instruments by experts is suggested to ascertain
the validity of measuring instruments in measuring constructs of interest.
Establishing the level to which measuring instruments are related or unrelated to
other measuring instruments that appears to be similar refers to the aspect of
criterion validity. Construct validity deals with the extent to which a measuring
instrument “measures the theoretical construct or abstract variable it was intended to
measure” such as motivation, intelligence and self-esteem (Struwig and Stead, 2010:
141).
This research study had integrated into its research design segments which took into
consideration content validity and face validity. Being an experienced scholar and
academic in the field of marketing, the study leader for this project and other
academics in the field of marketing at the Nelson Mandela Metropolitan University
had been requested to critically review the initial questionnaire constructed by the
researcher. The feedback received with regard to the face value of the questionnaire
53
and the effectiveness of the questions constructed to measure the attitudes of the
customers for the purpose of determining an appropriate positioning strategy, had
subsequently been incorporated. The pilot-study provided for further improvement of
the questionnaire with regard to its face value. Aspects such as ambiguity and
understanding of the content and questions by potential respondents, was
considered.
Reliability refers to the degree to which an instrument provides consistent and stable
results when the entity being measured remains unchanged (Cooper and
Schindler,2011; Struwig and Stead, 2010; Leedy and Ormrod, 2005) which implies
that repeated measures using the same instrument should produce similar results. It
is suggested that although reliability is an important pre-requisite for validity, a high
reliability in test scores by itself does not imply that validity will be high as well. For
example, a clinical thermometer may give the same results for the measurements of
body temperature over a short period of time (an indicator of high reliability), but if
the instrument is faulty the measurement is invalid (Locke et al., 2010). However, it is
important to note that the credibility of research findings depend on both the
reliability and validity of the scores.
Consideration of various factors during the development and administration of the
instrument could contribute towards the improvement of the reliability of an
instrument (Struwig and Stead, 2010). Among others, some of the key factors are:
 Ambiguity in the wording of test items
 The motivation of the participants to complete the test
 The appropriateness of the testing environment (whether the physical setting
distracts the participants or not)
 The consistency in the administration of the test
The above factors had been carefully considered to minimise the potential for errors
during the design and administration of the test instrument. In addition, the
measuring instrument was pre-tested before administering to the participants in the
study, a method suggested by Cullen (2007) as a means to improve the reliability of
the test scores.
54
3.8 DATA COLLECTION
As described above, the survey approach was used to collect the data for the study.
It entailed asking a random sample of the population questions and thereafter
tabulating their responses to gain an understanding of the larger population of
interest (Leedy and Ormrod, 2005).
3.8.1 Sample and sample size
Leedy and Ormrod (2005) believe that convenience sampling is appropriate in

studies which involve the opinions of customers on matters such as the quality of
food or quality of service in a restaurant. Based on the likeness of the study to the
example provided and the limited time available, the researcher adopted the
convenience sampling method. The approach involved selecting samples as a result
of them being readily available to the researcher. For this study, data from a sample
of 100units (N = 100) had been envisaged. On account of heavy rain over a period of
two weeks and the limited time available for completion of the research project, the
researcher had only managed to attain responses from 61 respondents.
3.8.2 Administration of the questionnaire
Random customers present at the car wash waiting for their vehicles to be cleaned
had been requested to participate in the study. Since the questionnaire contained
clear instructions and the language was simple and easy to understand, a self-
administered survey technique had been changed A batch of 100 questionnaires
was left with the cashier at the car wash business who gave out the questionnaires
to the customers at random who were waiting for their vehicles to be cleaned. The
completed questionnaires left with the cashier were collected by the researcher on a
regular basis
Each questionnaire was accompanied by a covering letter written in clear simple

language which outlined the reason for the study, the instructions of how to complete
the questionnaire, the details of the researcher and an assurance of anonymity
which indicated that respondent names had not been required. Data collection took
55
place over a period of four weeks where the researcher maintained regular contact
with the car wash business owner and collected the completed questionnaires
weekly. Daily collection of the questionnaires was not feasible as a result of reduced
daily customer flow on account of the poor weather conditions that prevailed.
3.9 DATA ANALYSIS AND COMMUNICATION OF FINDINGS
From the perspective of Mouton (2001: 108) data analysis involves “breaking up the
data into manageable themes, patterns, trends and relationships” with the aim to
understand the various constituents that exist. Locke et al. (2010) isolate descriptive
research as an approach which captures and displays a graphic picture of some
aspect(s) of a situation which is expressed in numbers. According to Booth, Colomb
and Williams (2008) quantitative evidence, such as the above are more easily
grasped by readers when expressed in tables, charts and graphs than in sentences.
The questionnaires administered for this research study was scrutinised for
completeness. The data had been analysed using Microsoft Excel and the statistical
programme Statistica. Where relevant the responses have been tabulated and
expressed in terms of frequencies and percentages to provide the reader with a
summary of the various categories, beliefs and feelings of the customers surveyed.
Appropriate visual representations of the data such as pie and bar charts have
additionally been included to facilitate easier understanding.
3.10 CONCLUSION
This chapter provided an overview of the research approach adopted in the study.
Aspects such as the type of information collected, the data collection process,
analysis of data and the communication of the research findings were outlined. The
use of a quantitative approach was argued in view of the focus of the research study.
The rationale for the use of a four point forced Likert scale in the construction of a
questionnaire was presented. The researcher subsequently addressed the validity
and reliability considerations of the study and discussed the pre-testing of the
questionnaire. The chapter ended with a discussion on the use of Microsoft Excel to
organise and analyse the data collected and the inclusion of tables, pie and bar
56
charts to present the results of the empirical study. The results of the data retrieved
from the empirical study will be presented in Chapter four.
57
CHAPTER FOUR
RESULTS
4.1 INTRODUCTION
In chapter three a discussion of the research design and methodology adopted in the
study was presented. Aspects considered pertinent to the empirical investigation
such as the design and development of the questionnaire to elicit information from
respondents, validity, reliability and sampling had been outlined.
This chapter offers a synopsis of the results of the empirical investigation conducted
at the car wash business which formed the focus of the research study. With the
assistance of a professional statistician at the Nelson Mandela Metropolitan
University (NMMU) the data collected from 61 respondents was summarised using
the statistical programme Statistica. The mean, mode, frequency of the mode and
the frequency count of the responses attained were determined and are presented in
summary tables, pie charts and bar charts in the discussion below.
Random customers who had been waiting for the cleaning of their vehicles to be
completed had been approached to participate in the study. The customers
approached had responded positively to the exercise and had agreed to participate
without hesitation. A response rate of 100% had therefore been achieved.
The results of the empirical study are provided in the order of the items presented in
the questionnaire. Firstly, the results of section one which aimed to determine the
demographic profile of respondents along with items such as the frequency of use of
the car wash service, the willingness to recommend the car wash and the likelihood
of the name of the car wash being easily remembered, are presented. Thereafter the
results of section two which was designed to ascertain the attitude of the customers
to the selected car wash business when compared to other car wash businesses in
the region are provided.
58
4.2 FINDINGS OF SECTION ONE
Section one of the questionnaire was designed primarily to gain a general overview
of the demographic details of the customers engaging the services of the car wash
business. Aspects such as gender, age, education, employment and net monthly
income had been investigated followed by a few aspects on customer behaviour.
The data collected have been summarised in Tables 4.1 to 4.8 and visually
illustrated in Figures 4.1 to 4.8. A brief discussion of the data is provided below each
figure.
Table 4.1 Customers according to gender
Response Percentage
Gender
Count (%)
Male 44 72
Female 17 28
Figure 4.1 Graphic representation of customers with regard to gender
GENDER
28%
Male
72% Female
Table 4.1 and Figure 4.1 show that the majority of customers who had opted to use
the car wash service and participated in the study had been males (72%) while
females formed the remaining 28%.
59
Table 4.2 Customers according to age
Response Percentage
Age
Count (%)
< 25 years 4 7
25-30 years 6 10
31-40 years 19 31
41-50 years 18 30
51-65 years 13 21
> 65 years 1 2
Figure 4.2 Graphic representation of customers with regard to age group
35
31
30
30
25
Percentage (%)
21
20
15
10
10
7
5
2
0
< 25 years 25-30 31-40 41-50 51-65 > 65 years
years years years years
Age Group
From Table 4.2 and Figure 4.2, it can be seen that the largest number of
respondents (31%) had been within the age category of 31 to 40 years old. Though
customers in this age group formed the majority, respondents aged between 41 to
50 years old are very similarly (30%) highly represented. Respondents younger than
25 years of age formed 7% while respondents aged between 25 to 30 years old
comprised 10% and respondents above 65 years of age was the smallest category
(2 %) of customers. It can be seen that generally most respondents (61%) had been
within the age range of 31 to 50 years old.
60
Table 4.3 Customers according to education
Response Percentage
Education
Count (%)
Gr 12 or less 17 28
Nat. Diploma 18 30
B Degree 22 36
M Degree 4 7
Figure 4.3 Graphic representation of customers with regard to education
40
36
35
30
30 28
Percentage (%)
25
20
15
10
7
5
0
Gr 12 or less Nat. Diploma B Degree M Degree
Educational Qualification
Table 4.3 and Figure 4.3 show that 36% of the 61 respondents who participated in
the study hold a Bachelor‟s Degree, 30% a national diploma, 7% a Master‟s degree
and the remaining 28% an educational qualification of grade 12 or less. The
responses received reveal the majority of respondents (73%) to have attained an
educational qualification higher than grade 12.
61
Table 4.4 Customers according to employment
Response Percentage
Employment
Count (%)
Student 2 3
Self employed 12 20
Employed 40 66
Housewife 3 5
Retired 4 7
Figure 4.4 Graphic representation of customers with regard to employment
EMPLOYMENT
3%
5%
6%
20%
Student
Self employed
Employed
66% Housewife
Retired
From the results summarised in Table 4.4 and Figure 4.4 it is evident that the
majority of respondents (66%) comprised of those who had been currently
employed. Self-employed individuals formed the second largest component (20%).
The remaining 14% of respondents comprised of 6% students, 5% housewives and
3% retired persons.
62
Table 4.5 Customers according to monthly net income
Response Percentage
Monthly Net Income
Count (%)
< R5000 4 7
R5001 - R10000 4 7
R10001-R20000 14 23
R20001-R30000 16 26
> R30000 23 38
Figure 4.5 Graphic representation of customers with regard to income group
40 38
35
30 26
Percentage (%)
25 23
20
15
10 7 7
5
0
R5001 - R10001- R20001-
< R5000 > R30000
R10000 R20000 R30000
Series2 7 7 23 26 38
Monthly Net Income
Respondents earning a net monthly income greater than R30 000 per month can be
noted as the largest group of customers which had used the services of the car wash
business. In the middle to the upper-middle income group, 26% of respondents
constitute the R20 001 to R30 000 income category while a slightly smaller
percentage (23%) fall in the R10 001 to R20 000 bracket. It can thus be seen that
respondents earning above R10 001 comprise the majority, i.e., 87% of the total
respondents. The lower income levels of the survey categories (less than R10 000)
formed 14%. Respondents earning less than R5 000 as well as respondents earning
in the range of R5001 to R10 000 had each formed 7%.
63
Table 4.6 Customers according to frequency of use
Response Percentage
Frequency of Use Count (%)
Once a week 16 26
Once every 2 weeks 10 16
Once a month 15 25
Once in 2 months 13 21
Longer than 2 months 7 11
Figure 4.6 Graphic representation of customers with regard to frequency of

use
30
26
25
25
21
Percentage (%)
20
16
15
11
10
0
Once a week Once every 2 Once a month Once in 2 Longer than 2
weeks months months
Frequency of Use
In Table 4.6 and Figure 4.6 responses of how often respondents tend to make use of
the services of the car wash business are presented. The results indicate that while
a significant number of respondents (67%) use the service once a week or more
often, 32% of the respondents use the service less frequently. In researcher‟s
opinion this represents an area which may be improved by implementing marketing
strategies to increase the frequency of vehicle cleaning.
64
Table 4.7 Customers according to willingness to recommend the car wash
business
Response Percentage
Recommend Car Wash Count (%)
Yes 60 98
No 1 2
Figure 4.7 Graphic representation of customers’ willingness to recommend

the car wash business
RECOMMEND CAR WASH

2%
Yes
No
98%
Respondents‟ willingness to recommend the use of the services offered by the car
wash business is shown in Table 4.7 and Figure 4.7. The researcher had included
this item in the questionnaire to gain an understanding of overall customer
satisfaction and the likelihood of increased sales through customer referrals. From
the results, it can clearly be seen that the vast majority of respondents (98%) are
willing to recommend the car wash business to other potential customers. Merely 2%
of respondents (i.e. one out of 61 respondents) expressed that they would do
otherwise and not recommend the car wash business. The researcher believes this
to be the result of an arbitrary incident where the customers‟ expectations had not
been met.
65
Table 4.8 Customers’ opinion on the car wash name being easy to remember
Car Wash Name Easy to Response Percentage

Remember Count (%)
Yes 38 62
No 23 38
Figure 4.8 Graphic representation of customers’ opinion on the car wash

name being easy to remember
NAME OF CAR WASH EASY TO REMEMBER
38%
Yes
62%
No
The possibility of the name of the car wash business being easily remembered had
been investigated as a result of the researcher‟s belief that the name of the selected
car wash business displayed was too long and not „catchy enough‟ to be easily
recalled and therefore could become a detrimental factor for brand development.
The responses reflected in Table 4.8 and Figure 4.8 however indicated that this is
not the case. The majority of respondents (62%) found the name of the business
easy to remember while 38% indicated that they found the name not easy to recall.
Information regarding the gender, age, education, employment and income of the
respondents had been elicited to aid the researcher in presenting recommendations
for the business which would be appropriate with regard to the majority of the
66
customers of the selected car wash business. The responses shown in Table 4.1 to
4.5 and Figures 4.1 to 4.5 indicate that the majority of respondents had been male,
aged between 31 and 50 years old, held a bachelors degree, was employed and
earned a net monthly income of more than R30 000 per month.
The rationale for including items 1.5 to 1.7 of the questionnaire had been to assist
the researcher to identify the opportunities that may exist with regard to increasing
the market share and improving the profitability of the car wash business. According
to MacKay (1972), as cited in Blythe (2009) these basic marketing objectives aid
businesses to generate a competitive advantage. In view of this, chapter five will
include discussions to enhance the firm‟s performance which are in alignment with
the advice of Mackay (1972) and the concept of positioning.
4.3 FINDINGS OF SECTION TWO
Section two of the questionnaire contained 24 statements which had been designed
and constructed to determine the dominant attitudes of respondents related to four
positioning strategies, i.e. price-quality positioning (value for money), benefit
positioning (service and reliability), competitor positioning (branding, top of the range
and uniqueness) and attribute positioning (attractiveness). The 24 statements
represented attributes of the car wash relating to the quality of service, the range of
service options, the price for the various service options, attitudes of service
personnel, the general image of the business etc. Each of the four positioning
strategies contained six statements reflecting attributes which are related to that
particular category of positioning.
Each statement had been structured in the form of a four-point Likert scale type item
where respondents had been required to indicate their opinion by selecting among
options of strongly disagree, disagree, agree and strongly agree. To enable
statistical analysis, the responses attained were assigned numerical values ranging
from one (strongly disagree) to four (strongly agree). The responses have
consequently been organised and summarised using descriptive statistics and is
presented in Table 4.9.
67
Table 4.9 Descriptive statistical scores of questions in section two
Valid SD D A SA Frequency Std.

Item N Mean (1) (2) (3) (4) Mode of mode Dev.
1 61 3.28 44 17 3 44 0.45
Price-Quality Positioning
(Value for Money)
2 61 2.77 19 37 5 3 37 0.59
3 61 3.15 3 46 12 3 46 0.48
4 61 3.26 1 43 17 3 43 0.48
5 61 3.30 1 41 19 3 41 0.49
6 61 3.20 49 12 3 49 0.40
7 61 3.08 2 8 34 17 3 34 0.74
(Service and Reliability)

Benefit Positioning
8 61 3.02 1 5 47 8 3 47 0.53
9 61 3.25 1 44 16 3 44 0.47
10 61 3.25 2 42 17 3 42 0.51
11 61 3.20 5 39 17 3 39 0.57
12 61 3.13 2 49 10 3 49 0.43
13 61 3.16 5 41 15 3 41 0.55
Competitor Positioning
14 61 3.34 3 34 24 3 34 0.57
(Uniqueness)
15 61 3.25 3 40 18 3 40 0.54
16 53 3.17 2 40 11 3 40 0.47
17 61 1.95 15 36 8 2 2 36 0.72
18 61 3.25 4 38 19 3 38 0.57
19 61 3.31 1 40 20 3 40 0.50
Attribute Positioning
20 61 2.87 1 15 36 9 3 36 0.67
(Attractiveness)
21 61 2.77 1 16 40 4 3 40 0.59
22 61 3.11 6 42 13 3 42 0.55
23 61 3.20 3 43 15 3 43 0.51
24 61 3.03 11 37 13 3 37 0.63
Source: Researcher‟s own construction based on the statistical results received
68
A mean score greater than 3 (agree) for 20 out of the 24 items in section two of the
questionnaire is reflected in Table 4.9. The similarity in results implies a high degree
of congruence in respondents‟ beliefs about the various attributes of the car wash
business. A mean score greater than 3 for an item indicates that fewer respondents
chose the option strongly disagree or disagree and a greater proportion of
respondents chose the strongly agree or agree option for the item.
A similarity in respondents‟ beliefs is further evident in the standard deviation scores

attained. It can be seen that the scores do not vary significantly. They range from 0.4
to 0.74 which represents a relatively low variation in the results. The outcome of a
low variation in responses is additionally supported by the results of the mode.
Except for item 17 which has a mode of 2 (disagree), all other items revealed a
mode of 3 (agree), indicating that the most recurrent view of respondents had been
that of „agree‟ in 23 of the 24 items of the questionnaire.
The mean scores for items 2, 20 and 21 are slightly lower than 3 and are noted as
2.77, 2.87 and 2.77 respectively. These scores suggest that a fair proportion of
respondents had expressed views of disagree or strongly disagree in response to
these items. In Table 4.9 it can be seen that a relatively higher number of
respondents chose the disagree option rather than the strongly disagree option for
these statements. For items 2, 20 and 21 the number of disagree counts were 19, 15
and 16 respectively while items 20 and 21 registered strongly disagree responses of
only one each. The mean for the four numerical scores assigned, 1 (strongly
disagree), 2 (disagree), 3 (agree) and 4 (strongly agree), is 2.5. The mean scores
for items 2, 20 and 21 lie above the value of 2.5 implies that, even though responses
of disagree or strongly disagree had been indicated, the majority of responses
attained had been that of agree.
Item 17 obtained the lowest mean score (1.95) compared to all other items in the
questionnaire. This is the only item with the highest strongly disagree responses (15)
as well as the highest number of disagree (36) responses. As mentioned earlier, a
mode value of 2 for this item indicates that the majority of respondents do not view
the communication aspect of the business favourably. This exposes a likely area of
weakness in the business which should be addressed. The researcher is of the
69
opinion that a significant number of responses of strongly disagree and disagree
provides opportunities for improvement in the car wash business and will thus
examine these items more closely in the next chapter.
The highest mean score (3.34) had been attained by item 14. This indicates that the
largest number of strongly agree or agree responses had been acquired for this item.
It is worth noting that the highest count for the strongly agree option was recorded for
item 14 which indicates that the respondents value the attribute of the business
reflected in this item most favourably. Item 16 relating to the use of recycled water in
the car wash was noted as the only item for which some of the participants (eight out
of 61 participants) did not provide a response. This is quite interesting considering
the fact that the participants did not appear to be negligent in indicating their
responses to all remaining 23 items in the questionnaire. This suggests an aspect of
customer uncertainty with regard to their views for this item which will be scrutinised
in more detail in the next chapter.
The general trends and similarities as revealed in the descriptive statistics in Table
4.9 have been presented above. However, it was also seen that responses to items
2, 14, 16, 17, 20 and 21 indicated statistically significant deviations from general
trends. The deviations noted have implications for the findings of the study.
Therefore, it is considered important to examine the results of these items in more
detail. Thus the unique characteristics of the individual items which require close
scrutiny are the following:
 Item 14: The item which scored the highest mean
 Item 17: The item which scored the lowest mean
 Items 2, 20 and 21: These items attained a mean score less than 3 and
reflected a relatively higher count for the disagree option.
 Item 16: The only item in which some of the respondents did not select any
one of the four options offered.
The results of the above items are presented in more detail in Tables 4.10 to 4.16
below.
70
Item 14:
In Item 14 respondents were required to provide their belief for the statement “the
manual car wash at this car wash business as opposed to the use of automated
wash bays protect the vehicle from getting scratched”. The aim of the statement was
to explore respondents‟ awareness with regard to the benefit of reduced scratches to
a vehicle when using the services of a manual car wash.
Table 4.10: Responses to Item 14
Response Percentage
Count (%)
Disagree 3 5
Agree 34 56
Strongly agree 24 39
Figure 4.9: Responses to Item 14
60 56
50
39
Percentage (%)
40
30
20
10 5
0
Disagree Agree Strongly agree
Responses
The highest mean score (3.34) had been attained for this item. This indicates that the
largest number of strongly agree or agree responses was selected for this item when
compared to all other items on the questionnaire. From Table 4.9 it is evident that the
largest number of strongly agree responses (24) had been achieved in item 14. This
suggests that customer‟s perception with regard to the benefit of reduced scratching to
the vehicle as a result of the manual wash facility is most highly valued.
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Item 17:
This item aimed to investigate how regularly the business promoted its services through
customer price incentives. A response to the statement “I receive regular notification
from this car wash about their specials” was required.
Table 4.11: Responses to item 17
Response Percentage
Count (%)
Strongly disagree 15 25
Disagree 36 59
Agree 8 13
Strongly agree 2 3
Figure 4.10: Responses to item 17
70
59
60
50
% Frequency
40
30 25
20
13
10
3
0
Strongly disagree Disagree Agree Strongly agree
Responses
While item 14 attained the highest mean score (3.34), item 17 attained the lowest mean
score (1.95). A mean score of 1.95 indicates that the largest number of strongly disagree
and disagree responses had been provided for this item. It is important to note that this
item scored the highest count for the „strongly disagree‟ (15 out of a possible 61)
sentiment in all 24 items in the questionnaire. This is further indicative of the majority
(84%) of the respondents‟ strong feelings (i.e. 25% strongly disagree and 59% disagree)
about the lack of communication from the business to its client base.
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Item 2:
The statement “the prices for the various vehicle service options offered by this car wash
are generally less than that of the competitors” refers to Item 2 of the questionnaire. The
item represented one of the components which investigated the comparative „value for
money‟ proposition offered by the car wash.
Response Percentage
Count (%)
Disagree 19 31
Agree 37 61
Strongly agree 5 8
70
61
60
50
Percentage (%)
40
31
30
20
8
10
0
Responses
Although Figure 4.11 above shows that 69% of respondents agree (i.e. 61% agree and
8% strongly agree), this item has the lowest mean (2.77) compared to all other five items
in the price-quality positioning category. The low mean indicates that despite a majority
of the respondents seem satisfied with the price charged by the car wash for the various
service options as reasonable compared to the competition, the view expressed
otherwise by 31% of the respondents cannot be ignored.
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Item 20:
This item refers to the attractiveness of the location of the car wash in relation to its
proximity to other shopping facilities reflected in the statement “This car wash is
close to other shopping facilities”.
Response Percentage
Count (%)
Disagree 15 25
Agree 36 59
Strongly agree 9 15
70
59
60
50
Percentage (%)
40
30 25
20 15
10
2
0
Responses
The car wash is located about 450 to 500 m away from two major retail outlets
(Shoprite Checkers and Pick n Pay) and other service businesses. Although 74% of
the respondents (59% agree and 15% strongly agree) feel that the car wash is close
to other shopping facilities, it is worth noting that a sizable proportion (25% disagree
and 2% strongly disagree) of the respondents find that this is not the case. This
shows that more than a quarter of the participants surveyed consider closer
proximity of the car wash to major shopping centres as an important factor.
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Item 21:
The statement “the overall image of this car wash premises is attractive” was aimed to
explore the comparative advantage of the attractiveness of the car wash business in
relation to its competitors.
Response Percentage
Count (%)
Disagree 16 26
Agree 40 66
Strongly agree 4 7
70 66
60
50
Percentage (%)
40
30 26
20
10 7
2
0
Responses
From Table 4.15 and Figure 4.14 it can be seen that 28% of customers do not view the
overall image of the business as attractive. While this is not the view of the majority of
the respondents (66% agree and 7% strongly agree that the overall image of the
business is attractive), the negative perceptions regarding the attractiveness of the
business premises shown by more than a quarter of the respondents cannot be
neglected.
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Item 16:
The purpose of this item was to determine whether the customers of the car wash
consider the sustainable and environment-friendly usage of water as an attractive
feature. A response to the statement “most of the water used at this car wash is
recycled water” was required for this item.
Response Percentage
Count (%)
Disagree 2 4
Agree 40 75
Strongly agree 11 21
80.00 75
70.00
60.00
Percentage (%)
50.00
40.00
30.00
21
20.00
10.00 4
0.00
Responses
This was the only item in the questionnaire for which eight out of a total of 61
participants did not indicate a response. From a total of 53 participants who
responded to this item, a substantially large majority (79%, i.e. 75% agree and 4%
strongly agree) indicated that they are aware of the car wash‟s usage of recycled
water. These respondents appear to consider this as a unique feature of the
business since this item was included in the category investigating the unique appeal
of the business. The fact that eight respondents did not show any response to this
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item is probably indicative of their lack of awareness of the car wash‟s use of
recycled water.
4.4 CONCLUSION
This chapter presented the results of the empirical component of the research study.
The data collected had been synthesised, organised and presented in frequency
tables and charts to provide for easier understanding.
The interpretation of the findings presented in this chapter forms the basis of chapter
five. Based on the findings, recommendations for the business are offered and
limitations and suggestions for future related research are discussed.
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CHAPTER FIVE
DISCUSSION OF RESULTS, CONCLUSIONS AND RECOMMENDATIONS
5.1 INTRODUCTION
This study took place in the context of the critical role that SMMEs play in the
economic prosperity of a developing nation such as South Africa to address issues
of poverty alleviation and unemployment. The country experiences an alarming 75%
failure rate of new SMMEs (Olawale and Garwe, 2010), this study focussed on a car
wash business in Port Elizabeth to investigate the customers‟ perceptions of the
business. The empirical data collected were presented in the previous chapter. This
chapter interrogates the data gathered to generate a perceptual map of the business
as viewed by the customers. Based on the evidence, a positioning strategy for the
business is suggested to enhance its competitive advantage. The conclusions drawn
from the study are presented along with recommendations for the business as well
as for further research in the sector for service-oriented SMMEs.
The results presented in chapter four relate to two distinct, albeit inter-related
components to meet the objectives of the study. Section one of the customer survey
dealing with the demographic details of the customers, has implications for section
two, which investigated customers‟ attitudes and perceptions of the business.
Therefore, the results of these two sections are discussed from this perspective.
5.2 DISCUSSION OF THE DEMOGRAPHIC PROFILE OF THE CUSTOMERS
The participants in the study were requested to provide information regarding five
elements of a demographic nature, i.e. gender, age group, qualification, employment
status and monthly income. Although the information sought can be perceived to be
of a sensitive nature, all participants provided their personal details with regard to all
five elements. This can be viewed as an indication of the respondents‟ willingness to
participate in the study fully. In this regard, it must be noted that the anonymous
nature of the survey could have been a contributing factor as well. The summary of
the demographic details of the participants is given in Table 5.1. The summary
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suggests that the majority of customers are middle-aged males with matric or a
higher educational qualifications and who are employed earning a good income.
Table 5.1 Summary of demographic details of the customers
Category Highest percentage and description

Gender 72% males
Age group 61% in the 31- 50 years age group
Qualification 73% have passed Grade 12 of which 66% hold a degree or a
diploma
Employment 66% employed
Monthly income 87% with an income > R10 000 of which 54% earn > R20 000
As Asikhiya (2010) suggests, the uniformity reflected in the demographic profile

provides a framework to judge the needs and expectations of the majority of the
customers. These considerations are important because one of the factors that
contributes towards the sustainability of a business is its ability to retain the customer
base (Cant, 2010). The profile of an average customer revealed in this study
indicates opportunities for the business to explore options to suit the needs of its
clientele. Among others, some of the options would be the:
 consideration of extending the operating hours of the business,
 nature of waiting room facilities,
 amenities provided in the waiting room, and
 the offer of week-end specials.
On the other hand the data reveal that the business attracts fewer females (28%)
and other categories such as students (3%) and pensioners (7%). This suggests that
opportunities exist for the business to explore strategies to attract more of these
groups to expand its customer base.
The other aspects surveyed in section one were the frequency of use of the car
wash by the customers, their willingness to recommend the business to family and
friends and the suitability of the name of the business. With regard to the frequency
of use, the results show that 67% of the customers use the car wash once a month
or more often. Within this group, 25% access the service on a monthly basis while
79
16% fortnightly as opposed to 26% of customers who access the service on a
weekly basis. The frequency of use could depend on two factors, namely the cost of
the car wash and the prevailing weather conditions. The cost of the service could
possibly be an inhibiting factor for the 32% of customers who use the car wash once
in two months or longer. The questionnaire did not include an item to seek
information on the type of car wash options chosen by the customers. This
information would have helped to obtain clarity on the service options chosen by the
frequent users. This knowledge could assist the business to make decisions to
promote cheaper or alternate service options to attract less frequent users. For
example, the business could offer interior cleaning, as suggested by Wulf, the
executive director and CEO of the International Car Wash Association on rainy days
(Rigik, 2010).
It is important to note that nearly all the participants (60 out of 61 respondents)
stated that they were willing to recommend the services of the car wash to friends
and family. This clearly indicates that the customers are happy with the service they
receive from the business. A positive customer experience is crucial for the
sustainability of any SMME. The near unanimous customer satisfaction, when
viewed in conjunction with the frequency of use, suggests that there is potential for
the business to find ways to get the current customers to use the service more often
as well as to market the business to their friends and relatives.
Although a majority (62%) found the name of the business easy to remember, 38%
of the respondents indicated that the long name was problematic to them. This
should be viewed as a potential barrier for the expansion of the target market and
one which could be avoided since almost all of the customers expressed the view
that they will not hesitate to recommend the business to others. A shorter name may
enhance opportunity for the business to implement strategies to improve the
likelihood of customers remembering the name of the business and thus increase
the potential for „word-of-mouth‟ advertising.
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5.3….OVER-ALL IMPRESSIONS OF THE DATA IN SECTION TWO
The data in Section 2 refer to the attributes of the car wash which customers
perceived as the most valuable and those which did not meet their expectations
when compared to other car wash businesses. The 24 items in the questionnaire
reflected various attributes pertinent to the car wash business. Except for item 16 in
the questionnaire which related to the use of recycled water in the car wash, all 61
respondents indicated their views for the remaining 23 items. The likely explanation
for the eight respondents who did not indicate their preferences for item 16 is that
they may not be aware of the type of water used in the business. The near
completion of all the questionnaire items show that the respondents made conscious
decisions regarding the various attributes and that they did not consider the
completion of the questionnaire as a chore to be done out of courtesy or similar
feelings.
A mean score of greater than 3 for 20 of the 24 items in the questionnaire was
indicative of the fact that a substantial number of responses were inclined to agree or
strongly agree options rather than the disagree or strongly disagree options. This
suggests that the respondents found most of the attributes of the business desirable
when compared to competitors. The similarity in respondents‟ views was further
evident in the scores for standard deviation and the mode. The standard deviation
ranged from 0.4 to 0.74 showing a relatively low variation in the results. In addition, a
mode of 3 for 23 of the 24 items reveals that the most frequently chosen options
were either agree or strongly agree further supporting the resemblance in
respondents‟ views. These statistics suggest that the majority of the respondents are
largely satisfied with the service provided by the car wash business. This is in
agreement with the results reflected in Figure 4.7 which indicated that 98% of
respondents would be willing to recommend to family and friends the services
offered by the car wash business.
A mean score less than 3 for the four items 2, 17, 20 and 21shown in the results
suggests that the respondents were frank about expressing their views with regard to
the attributes they considered to be less desirable in the business. This is an
indication of the reliability of the data gathered in the sense that the respondents
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were not simply ticking the „agree‟ or „strongly agree‟ option in the questionnaire to
please the management of the business. Additionally this supports the observation
made earlier that the respondents were very particular about the choices they made
with regard to the attributes of the business.
5.4 DISCUSSION OF RESULTS IN THE POSITIONING STRATEGY

CATEGORIES
The attributes reflected in the questionnaire items were grouped into four categories.
The categories were Price-quality positioning, Benefit positioning, Competitor
positioning and Attributes positioning modelled on suggestions by Blankson and
Crawford (2012) to determine an appropriate positioning strategy for a service
business. Each category contained six statements and the statements in a given
category reflected attributes representative of the key characteristics of that
category. An interpretation of the respondents‟ perceptions, regarding these
attributes in each category based on the results in Table 4.9, is given in the sections
below.
5.4.1 Price-quality positioning
The statements in this category probed respondents‟ views on the price charged by
the car wash in comparison to the competitors, the affordability of the price and
whether the price matched the quality of the service provided. The mean score for
each of the five items was more than 3 (an average score of 3.2 for five items)
indicating general satisfaction with the price. However, for statement 2, which
required the respondents to compare the price for various service options with
competitors, the mean score was 2.77. It was also noted that this was the only item
in this category which registered the highest count for the disagree option, though no
one chose the strongly disagree option. On the other hand, for the first item, The
price charged is reasonable compared to the quality of service provided, the mean
score was 3.28 and for item 5, I receive value for money from this car wash, the
score was 3.30, the highest mean in this category. This shows that in respondents‟
views the quality of service was a more predominant factor than the price. The result
for item 6 where there was unanimous agreement (all 61 respondents chose either
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agree or strongly agree) that the price charged was reasonable provides further
evidence for this interpretation. This finding resonates with views expressed by
Asikhiya (2010) and Cant (2012) that quality of a product or a service is one of the
variables that differentiated a firm‟s offering from that of its competitors for which the
consumers are willing to pay more.
Item four which was intended to assess whether the respondents were satisfied with
the price for the car wash option chosen scored the second highest count for the
strongly agree option (17) in this category. Whether the price charged was affordable
or not to the respondents was implied in item four and to a certain degree in item
three. The affordability of customers to access the services of a firm is suggested by
Kotler (2003b) as an important factor when the firm attempts to differentiate itself
from competitors. The results shown for items three and four indicated that the
respondents in this study found the price charged by the car wash for the various
options as affordable. This observation is not surprising considering the fact that a
majority of the respondents (64%) as shown in Table 4.5 earn an income greater
than R 20 000 per month.
5.4.2 Benefit positioning
The service components of the business in this category which the respondents
perceived as beneficial to them were related to the waiting period for the completion
of service, the consistency in the quality of service, the variety of service options
available, the accessibility to the management to attend to specific needs and the
convenience of operating hours. An average mean score of 3 or more for all the six
components is an indication of respondents‟ acknowledgement of the beneficial
aspects of the service components. However, a relatively high mean score of 3.25
each for the consistency in the quality of service and the variety of service options
show that the respondents valued these two attributes more. In view of the fact that
the respondents valued the quality of service over the cost of service (as was
revealed in the price-quality positioning) the consistency in the quality of service
provided by the firm becomes an important advantage. In this regard, it is worthwhile
to note that Kotler (2003b) identifies reliability of a product or service as a
differentiating variable for which consumers are willing to pay more.
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5.4.3 Competitor positioning
Features considered as unique to the car wash in this study included in the category
of competitor positioning were the washing and waxing of vehicles by hand as
opposed to the use of machines, the use of recycled water and the facilities offered
at the business such as coffee and meals, tailoring and hair salon. In addition,
respondents‟ views on the personal attention given to customers and regular
communication regarding specials from the management were also probed.
The highest mean of 3.34 compared to all other 23 items in the questionnaire scored
for item 14 indicates that the respondents valued the washing of vehicles by hand as
most significant. Seeing that the second highest investment after a house that a
person makes in his/her life is the investment in a vehicle, the protection of the
vehicle from being scratched during washing becomes an important consideration. In
this respect the value that the respondents attached to the hand washing of vehicles
as opposed to machine wash is understandable. Additionally, this aspect could also
be viewed as a contributing factor towards the respondents‟ higher rating for the
quality of service stated earlier.
The lowest mean score (1.95) and the highest count (15) of the disagree option
obtained for item 17 indicate the respondents‟ dissatisfaction with the management
with regard to either not receiving special offers or a lack of communication about the
specials. During an informal chat with the management, the researcher established
that the business offers specials periodically. But it seems that this information is not
communicated explicitly to the clientele in the business. Due to rapid changes in the
market environment, the retention of existing customers in a business according to
Cant (2010) is an important aspect with respect to the sustainability of an SMME. In
this regard the suggestion from Rigik (2010) that a firm‟s ability to retain its customer
base and to attract new customers through social networking, special offers and
loyalty programmes is pertinent.
The results (Table 4.9) show that the only item for which all the respondents did not
indicate a specific view was item 16 referring to the use of recycled water in the
business. Rigik (2010) proposes that the use of recycled water in a car wash not only
84
enhances the image of the business but also is a cost saving factor. The fact that
eight participants in the survey failed to indicate a response to this item reveals that
this aspect of the business was not communicated to all customers. Rigik (2010)
further notes that consumers tend to support a business which engages in
environment-friendly practices as they are perceived as enhancing the consumers‟
image by association with such businesses. Again, the lack of communication from
the management as noted earlier appears to be the reason for not taking advantage
of a potential differentiating aspect of the business.
5.4.4 Attribute positioning
The items in this category contained aspects related to the general image of the car
wash in terms of its attractiveness, the attributes of the personnel involved, the
proximity of the business to shopping centres and the safety of articles left in a
vehicle. Frochot and Kreziak (2008) as well as Blythe (2009) claim that the image of
a business is an important differentiation aspect in determining a firm‟s positioning
strategy as buyers‟ purchase decisions are often influenced by the perceptions of a
brand. A mean score of 2.77 for item 21 compromises this perspective as the
respondents found the overall image of the car wash premises being less attractive.
A second item with a mean score less than three was also found in this category and
this item related to the proximity of the car wash to other shopping facilities. Once
established the location of a business is something which can‟t be changed easily.
To compensate for this shortcoming the business could focus on strengthening its
service aspects and thus make it worthwhile for its customers.
The second highest mean score (3.31) was observed for item 19 which related to the
attributes of the staff involved in the business. According to Kotler (2003c) and Cant
(2010), one of the important dimensions in which a business can differentiate itself
from competitors is the attributes such as competence, courtesy, credibility etc. of
the personnel involved. In this respect a high mean score reflected in the
respondents‟ appreciation of the staff is noteworthy.
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5.5 STRENGTHS AND WEAKNESSES OF THE BUSINESS
The results of the survey regarding the respondents‟ perceptions of the car wash
revealed that the respondents found certain features of the business to be better
than that of the competitors. These features point to the strengths of the business.
On the other hand there were aspects of the business which the respondents viewed
as not meeting their expectations.
Some of the key strengths of the businesses as perceived by the respondents are
listed below.
 A majority (67%) of the respondents used the services of the car wash once a
month or more often suggesting a reasonable retention of the customer base.
 The quality of service provided, in particular, the manual wash, the waxing of
the vehicles by hand and the consistency in quality were rated high.
 The cost of service in relation to the quality (price-quality ratio) was found to
be reasonable.
 The waiting period for the completion of service and the facilities in the waiting
room were viewed favourably.
 Provision of other services at the premises such as coffee and meals, tailoring
and hair salon were found to be contributing towards the convenience of the
customers.
 The attitudes of the staff and the management of the business towards its
customers were rated positively.
 The safety of articles left in the vehicles was greatly valued by the
respondents.
Some of the features of the business which were identified as its weaknesses are
given below.
 The business appeared to attract largely one segment of the market, i.e.
males in the higher income group.
 Lack of communication from the management regarding special offers was
highlighted as a major problem.
86
 Eco-friendly business practices such as the use of recycled water had not
been made explicit to all respondents.
 The general image of the car wash premises was not seen as very attractive.
 The location of the car wash business in relation to its proximity to other
shopping facilities was not viewed favourably.
5.6 POSITIONING MAP
The positioning of a business in the market place, according to Blythe (2008) and
Cant (2010) should be based on the consumers‟ perceptions on the features of the
business which they see as offering advantages when compared to competitors. The
results of this study identified certain attributes of the car wash which the
respondents perceived as beneficial to them compared to other car washes in the
area.
For an item in the questionnaire, a respondent may choose the agree option if
he/she is satisfied with the feature of the business reflected in the statement. On the
other hand, the choice of a strongly agree option for a statement is an indication that
the respondent places a greater value for the feature related to the statement. To
determine those attributes which were highly valued by the respondents, the results
need to be examined more deeply to establish the proportion of the strongly agree
options chosen for each statement. Consequently the results of the survey was
scrutinised to determine those attributes of the car wash for which a quarter or more
than a quarter of the respondents chose a strongly agree option. Table 5.2 shows
the percentage of respondents who chose a strongly agree option for the attributes
of the car wash.
Cant (2010) suggests the development of a product positioning map to visually

represent consumers‟ perceptions about a product or service. According to Cant
(2010) a graphic representation of the key attributes of a firm and that of its
competitors assists in determining the positioning strategy for the firm. Table 5.2
describes the attributes of the car wash the respondents valued highly, a strongly
agree choice, in comparison to competitors. These attributes represented by the
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corresponding item numbers in the questionnaire are presented as a perceptual map
of the respondents‟ views in Figure 5.1. Since the attributes shown in Figure 5.1
were those which were valued the most by the respondents in the car wash business
in comparison to competitors, the perceptual map essentially represents the
positioning map for the business.
Table 5.2: Attributes for which a quarter or more of the respondents chose
the strongly agree option
Item Attribute % of respondents Positioning strategy

1 Price-quality ratio 28 Price-quality positioning
4 Satisfaction with price 28 Price-quality positioning
5 Value for money 31 Price-quality positioning
7 Location of business 28 Benefit positioning
10 Range of service options 28 Benefit positioning
11 Accessibility to manager 28 Benefit positioning
14 Manual car wash 39 Competitor positioning
15 Other amenities at the 30 Competitor positioning
business
18 Waxing by hand 31 Competitor positioning
19 Courteous staff 33 Attribute positioning
23 Safety of articles in the 25 Attribute positioning
vehicle
The perceptual map of respondents shown in Figure 5.1 indicates a number of items
in the questionnaire being rated high and these items related to the quality of
service, the attitudes of service personnel and the range of service options offered
by the car wash. However, of the eleven items identified, item 14 referring to the
manual car wash emerges as the most valued attribute of the business by the
respondents. Item 14 states, the manual wash at this car wash business as opposed
to the use of automated wash bays protect the vehicle from getting scratched and
this item falls within the framework of competitor positioning. It therefore appears that
88
competitor positioning becomes a viable positioning strategy for the car wash
business in this study.
Figure 5.1 Perceptual map of respondents’ views
RESPONDENTS' VIEWS
45
14
40
35 19
5 18
Strongly Agree Response (%)
15
30 1 4 7 10 11
23
25
20
15
10
0
0 5 10 15 20 25
Item Number
5.7 CONCLUSIONS
To achieve the objectives of this study a survey of relevant literature pointed to the
need to develop a positioning map for the car wash as an important tool based on
which a positioning strategy could be identified (Blythe, 2008; Cant, 2010). In view of
this, a positioning process outlining key steps as shown in Figure 2.2 (chapter 2) was
used as the framework for the quantitative investigation.
89
A detailed examination of the empirical data revealed certain attributes of the car
wash which differentiated it from competitors. As suggested by Kotler (2003b) the
differentiation variables in terms of criteria such as superiority, distinctiveness,
image, affordability and attitudes of personnel which were perceived by the
respondents as being beneficial to them were identified. The positioning map for the
car wash based on the respondents‟ perceptions of the business clearly indicates
that they value the washing of vehicles by hand the most. A similar finding was
revealed in a study conducted in Bangkok by Jirachaisingh (2007) in which 400 car
owners rated the quality of wash and scratch protection of vehicles as two important
criteria.
Blythe (2009) emphasises that a firm should ideally promote a positioning strategy
based on a single attribute which characterises its competitive advantage. The
attribute of the car wash business that the participants in this investigation rated as
the most valuable was the manual washing of the vehicles and this attribute is
located within the category of competitor positioning. In terms of the positioning
process (Figure 2.2), the next step would be for the management to assess its own
capabilities in view of this finding and then clearly communicate a positioning
statement to its staff and customers. The positioning statement should guide
marketing campaigns to highlight the qualities of the service firm to attract new
customers.
5.8 LIMITATIONS OF THIS STUDY
Other than informal conversations with the management of the car wash business,
the researcher could not conduct a semi-structured interview with them to access
their views on the service provided due to time constraints. Firstly the interview
would have been valuable to establish the extent to which the management‟s
conceptions of service matched the respondents‟ perceptions of the service
received. Secondly as suggested by Ostaseviciute and Sliburyte (2008), to develop a
positioning statement and to embark on a marketing drive, it is crucial to evaluate the
firm‟s capacity for the undertaking. The prosperity and the long term sustainability of
the business depend on its commitment to the formulated positioning statement and
the available resources.
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5.9 RECOMMENDATIONS
Findings of this study indicate that there is potential for further inquiry which may
yield a deeper insight into customers‟ views on service firms. Secondly the results
revealed that certain aspects of the car wash business need improvement and
suggestions are made to address these issues.
5.9.1 Suggestions for future research
This study used a close-ended questionnaire to gather data on customers‟

perceptions of the car wash business in comparison to other car washes. Although
the manual washing of vehicles emerged as the most preferred attribute, the
perceptual map showed a number of other attributes with similar high ratings.
Further exploration in this regard could benefit by adding a qualitative component to
examine this aspect more critically. Therefore, it is suggested that future studies
include an open-ended item in the questionnaire to seek customers‟ most preferred
attribute in a car wash compared to competitors.
5.9.2 Recommendations for the car wash business
The results of the study suggest that some aspects of the car wash business need
attention to enhance its image. Hence a few recommendations are made to improve
the competitive advantage of the business. In light of the increasing customer
awareness with respect to eco-friendly practices, Rigik (2010) and Hartmann et al.
(2005) suggest that responsible environmental behaviour through water saving
programmes in a car wash could be used as a differentiation opportunity. The car
wash business in this study uses recycled water and this aspect, therefore, should
be emphasised in marketing campaigns. The management needs to focus on
communicating the periodic specials offered through pamphlets, social networking
and other forms of advertising media as the majority of respondents in this survey
indicated lack of notification in this regard as a major issue. Since the appearance of
the car wash premises scored a poor rating, efforts could be made to enhance the
image of the entrance. For example, placing pot plants at the entrance or painting
the perimeter walls in a pleasant colour could make the business environment more
91
attractive to the customers. Seeing that the business attracts fewer students and
pensioners, the management could consider innovative special offers to attract more
customers from this segment of the market.
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99
ANNEXURE A: COVERING LETTER
100
Dear Respondent
I am studying towards my MBA (Masters in Business Administration) degree at the Nelson

Mandela Metropolitan University Business School. I am conducting research to investigate
an appropriate positioning strategy for this car wash business. I believe that my study will
make an important contribution to the improvement of Small and Medium Business
Enterprises (SMEs) in South Africa.
You are part of a selected sample of respondents whose views are needed on the above-
mentioned matter. I would therefore appreciate it if you could answer a few questions. It
should not take more than ten minutes of your time and I thank you in advance for your co-
operation.
Please answer the questions or statements as accurately as possible. For each statement,
tick the block which best describes your experience or perception. For example in Section
2, if you strongly disagree with a statement, tick the block:
SD D A SA
If you agree with a statement, tick the block as shown below:
SD D A SA

Tick only one block for each statement and please answer all questions or
statements in both Sections 1 and 2. Kindly note that your name is not required in
any part of this questionnaire.
Thank you very much.
Malanie Kurup
(Cell: 082 424 2182)
In case you need to verify the authenticity of the study, please contact Dr John Burger at
jburger367@gmail.com
101
ANNEXURE B: DRAFT QUESTIONNAIRE
102
Investigating a positioning strategy for a car wash business in Port Elizabeth:
A case study
Kindly put a tick () in the block that you think is the most appropriate to you for each item in
Sections 1 and 2.
Section 1
Kindly put a tick () in the block that is relevant to you in items 1.1 to 1.8 below
1.1 Gender  Male  Female
1.2 Age  Less than 25 years  25 – 30 years old

old
 31 – 40 years old  41 – 50 years old
 51 – 65 years old  More than 65 years
old
1.3 Education  Grade 12 or Less  National Diploma

 Bachelor’s Degree  Master’s Degree
 More than Master’s
Degree
1.4 Employment  Student  Self Employed

 Employed  Un-employed
 Housewife  Retired
1.5 Monthly Net Income  Less than R 5000  R 5001 – R 10 000

 R 10 001- R 20 000  R 20 001 – R 30 000
 More than R 30 000
1.6 If you are a regular customer of  Once a week  Once every 2 weeks
this car wash how often do you  Once a month  Once in 2 months
use their services?  Longer than 2
months
1.7 Will you recommend this car  Yes  No

wash to friends and relatives?  No opinion
1.8 Will you remember the name  Yes  No

of this car wash easily?  No opinion
103
Section 2
The statements given below refer to this car wash business in comparison to other car wash
businesses in Port Elizabeth. For each statement, please indicate your response by ticking () the
appropriate block, i.e. Strongly Disagree (SD), Disagree (D), Agree (A) or Strongly Agree (S).
Strongly Disagree
Strongly Agree
When compared to other car wash businesses in PE, my
Disagree
views of this car wash are as follows….
Agree
1 The price charged is reasonable compared to the quality of service
SD D A SA
provided
2 The prices for the various vehicle service options offered by this car
SD D A SA
wash business are generally less than that of the competitors
3 The physical location of this car wash is convenient to me SD D A SA
4 Articles left in the vehicle are safe SD D A SA
5 Most of the water used at this car wash business is recycled water SD D A SA
6 This car wash business is easily visible for customers SD D A SA
7 I receive value for money from this this car wash business SD D A SA
8 The waiting period for the completion of service at this car wash
SD D A SA
business is reasonable
9 The management gives personal attention to customers SD D A SA
10 There is a wide range of service options to accommodate my needs SD D A SA
11 This car wash is close to other shopping facilities SD D A SA
12 The operating hours are convenient SD D A SA
13 The price charged is within my expectations SD D A SA
14 The manual wash at this car wash business as opposed to the use of
SD D A SA
automated wash bays protect the vehicle from getting scratched
15 The range of services (coffee and meals, tailoring, hair salon etc.) on the
SD D A SA
same premises are very convenient
16 The manager is easily accessible to attend to my specific needs when
SD D A SA
necessary
17 I receive regular notification from this car wash their specials SD D A SA
18 Waxing of the vehicle by hand is better than waxing by machine SD D A SA
19 The staff are courteous and friendly SD D A SA
20 I am satisfied with the price of the car wash option I have chosen SD D A SA
21 The overall image of this car wash premises is attractive SD D A SA
22 The waiting facilities at this car wash are very comfortable SD D A SA
23 The prices charged for the various service options are reasonable SD D A SA
24 This car wash is consistent in the quality of service provided SD D A SA
Thank you for your time and valuable contribution! 104

ANNEXURE C: FINAL QUESTIONNAIRE
105
Investigating a positioning strategy for a car wash business in Port Elizabeth:
A case study
Kindly put a tick () in the block that you think is the most appropriate to you for each item in
Sections 1 and 2.
Section 1
Kindly put a tick () in the block that is relevant to you in items 1.1 to 1.8 below
1.1 Gender  Male  Female
1.2 Age  Less than 25 years  25 – 30 years old

old
 31 – 40 years old  41 – 50 years old
 51 – 65 years old  More than 65 years
old
1.3 Education  Grade 12 or Less  National Diploma

 Bachelor’s Degree  Master’s Degree
 More than Master’s
Degree
1.4 Employment  Student  Self Employed

 Employed  Un-employed
 Housewife  Retired
1.5 Monthly Net Income  Less than R 5000  R 5001 – R 10 000

 R 10 001- R 20 000  R 20 001 – R 30 000
 More than R 30 000
1.6 If you are a regular customer of  Once a week  Once every 2 weeks
this car wash how often do you  Once a month  Once in 2 months
use their services?  Longer than 2
months
1.7 Will you recommend this car  Yes  No

wash to friends and relatives?  No opinion
1.8 Will you remember the name  Yes  No

of this car wash easily?  No opinion
106
Section 2
The statements given below refer to this car wash business in comparison to other car wash businesses in
Port Elizabeth. For each statement, please indicate your response by ticking () the appropriate block, i.e.
Strongly Disagree (SD), Disagree (D), Agree (A) or Strongly Agree (SA).
Disagree
Disagree
Strongly
Strongly
When compared to other car wash businesses in PE, my
Agree
Agree
views of this car wash business are as follows….
This business in terms of value for money…..
1 The price charged is reasonable compared to the quality of service provided SD D A SA
2 The prices for the various vehicle service options offered by this car wash
SD D A SA
business are generally less than that of the competitors
3 The price charged is within my expectations SD D A SA
4 I am satisfied with the price of the car wash option I have chosen SD D A SA
5 I receive value for money from this Car Wash SD D A SA
6 The prices charged for the various service options are reasonable SD D A SA
Reasons for supporting this business ….
7 The physical location of this car wash is convenient to me SD D A SA
8 The waiting period for the completion of service at this car wash business
SD D A SA
is reasonable
9 This car wash is consistent in the quality of service provided SD D A SA
10 There is a wide range of service options to accommodate my needs SD D A SA
11 The manager is easily accessible to attend to my specific needs when
SD D A SA
necessary
12 The operating hours are convenient SD D A SA
What is unique (or special) about this business when compared to other car washes ….
13 The management gives personal attention to customers SD D A SA
14 The manual wash at this car wash business as opposed to the use of
SD D A SA
automated wash bays protect the vehicle from getting scratched
15 The range of services (coffee and meals, tailoring, hair salon etc.) on the
SD D A SA
same premises are very convenient
16 Most of the water used at this car wash business is recycled water SD D A SA
17 I receive regular notification from this car wash business about their
SD D A SA
specials
18 Waxing of the vehicle by hand is better than waxing by machine SD D A SA
Why this business appeals to me …
19 The staff are courteous and friendly SD D A SA
20 This car wash is close to other shopping facilities SD D A SA
21 The overall image of this car wash premises is attractive SD D A SA
22 The waiting facilities at this car wash are very comfortable SD D A SA
23 Articles left in the vehicle are safe SD D A SA
24 This car wash business is easily visible for customers SD D A SA
Thank you for your time and valuable contribution!

107

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INVESTIGATING A POSITIONING STRATEGY

FOR A CAR WASH BUSINESS IN PORT ELIZABETH:

MALANIE NAIDOO KURUP

FOR A CAR WASH BUSINESS IN PORT ELIZABETH:

MALANIE NAIDOO KURUP

Submitted in partial fulfilment of the requirements for the degree:

MASTERS IN BUSINESS ADMINISTRATION

in the Faculty of Business and Economic Sciences

at the Nelson Mandela Metropolitan University

PROMOTER: DR J.M. BURGER

I, Malanie Naidoo Kurup, hereby declare that:

- the content of this treatise is my own original work;

I wish to specifically acknowledge the following:

My deepest gratitude and appreciation go to Dr John Burger, my research supervisor

I wish to convey my deep appreciation to my sisters, Sarala and Rosh, as well as my

I deeply value the unconditional support, understanding, encouragement and love

It has been widely acknowledged by researchers and development agencies that

Keywords: Car wash; Differentiation; Positioning; SMME

ANNEXURE A Covering Letter……………………………………………… 100

Figure 2.1 Comparison of the marketing research process to the

Figure 2.2 Proposed positioning process………………………..……... 35

Figure 4.1 Graphic representation of customers with regard to

Figure 4.9 Responses to item 14………………………………………… 71

Figure 4.10 Responses to item 17………………………………………… 72

Figure 4.11 Responses to item 2………………………………………….. 73

Figure 4.12 Responses to item 20.……………………………………….. 74

Figure 4.13 Responses to item 21………………………………………… 75

Figure 4.14 Responses to item 16………………………………………… 76

Figure 5.1 Perceptual map of respondents‟ views…………………….. 89

Table 1.1 Total number of liquidations: 2005 to 2010………..……… 4

Table 2.1 Differentiation variables……………………………………… 20

Table 2.2 Summary of studies on positioning strategies…………….. 29

Table 3.1 Differences between qualitative and quantitative research 47

Table 4.1 Customers according to gender…………………………….. 59

Table 4.2 Customers according to age………………………………… 60

Table 4.3 Customers according to education…………………………. 61

Table 4.4 Customers according to employment………………………. 62

Table 4.5 Customers according to monthly net income……………… 63

Table 4.6 Customers according to frequency of use…………………. 64

Table 4.7 Customers according to willingness to recommend the car

Table 4.10 Responses to item 14..………………………………………. 71

Table 4.11 Responses to item 17…………………..……………………. 72

Table 4.12 Responses to item 2………………..…..……………………. 73

Table 4.13 Responses to item 20…………………..……………………. 74

Table 4.14 Responses to item 21…………………..……………………. 75

Table 4.15 Responses to item 16…………………..……………………. 76

Table 5.1 Summary of demographic details of the customers………. 79

Table 5.2 Attributes for which a quarter or more of the respondents

INTRODUCTION, RATIONALE AND SCOPE OF THE STUDY

1.1 SETTING THE SCENE

The economic prosperity of a nation is generally perceived to be dependent on the

The crucial role of SMMEs in addressing the socio-economic challenges faced by

The perspective above is shared globally by policy makers, economists, and

The success of SMMEs can be appreciated as being vital to the socio-economic

1.2 RATIONALE FOR THE STUDY

Month 2005 2006 2007 2008 2009 2010

January 328 171 176 160 270 206

Source: STATS SA (2011)

According to STATS SA (2012: 3) “approximately 4,5 million persons were looking

From a study of SMME activities in various countries, Herrington et al. (2010)