Twenty-third International Conference on Diversity in Organizations, Communities & Nations

Abstract

Research into the competition between immigrants and South Africans in the informal sector is often one side and lacks the perspective of customers. This is comparative study of the two populations utilized customer data. The study argues that differences in the entrepreneurial orientations of Immigrants and South Africans may be driving differences in performance. This study investigated the way in which immigrants differentiate themselves from South African informal entrepreneurs by providing superior customer value that wins the favor of customers. Cross-sectional quantitative data was collected from households in Alexandra, Johannesburg, A township that is known for multiple incidents of xenophobic violence. Hypotheses stated that value proposition positively affects customer preference among Immigrants and South Africans, and that the population that provides greater value to customers receives higher customer preference. The results show that value proposition positively affects customer preference in the immigrant and South African population, and that immigrants provide higher value proposition and receive higher customer preference than South Africans. The study should prompt those entrepreneurs that want to succeed in the informal retail sector to prioritize the needs of their customers. The study demonstrates the applicability of marketing theories such as the customer satisfaction theory in the informal setting. It also unveiled one of the effective factors in the competitive phenomenon between immigrants and South Africans.