Why and When Does Consumer Protection Fa

See discussions, stats, and author profiles for this publication at: https://www.researchgate.
net/publication/294886211
Why and when does consumer protection fail
Article · September 2015
CITATIONS READS
0 54
1 author:
Boitumelo Oliphant
University of the Witwatersrand
7 PUBLICATIONS 0 CITATIONS
SEE PROFILE
Some of the authors of this publication are also working on these related projects:
Black middle class’s brand knowledge structure of Woolworths and its effect on the brand’ equity View project
All content following this page was uploaded by Boitumelo Oliphant on 18 February 2016.
The user has requested enhancement of the downloaded file.

ADVANCED TOPICS in CONSUMER BEHAVIOUR
BUSE 4007
BCOM (Honours) MARKETING
Why and When Does Consumer Protection Fail? A Consumer Behaviour Perspective:
The Case of Volkswagen
Boitumelo Oliphant (575065) and Noluthando Mazibuko (580391)

11/3/2015
Page i
Table of Contents
INTRODUCTION ........................................................................................................................... 1
LITERATURE REVIEW ................................................................................................................. 3
The Case of Volkswagen .............................................................................................. 3
Consumer Protection: Definition, Objective and Tools................................................ 4
Application of Consumer Protection in the Case of Volskwagen ................................ 6
Consequences of Consumer Protection in the Case of Volkswagen . 7
Success, Why? ................................................................................... 7
Failure, Why? ..................................................................................... 7
RESEARCH METHODOLOGY: Part one (Quantitative Analysis) ...................................................... 8
Justification ................................................................................................................... 8
Questionnaire design..................................................................................................... 8
Population and sample size ........................................................................................... 9
Data collection ............................................................................................................ 10
Data analysis ............................................................................................................... 10
RESULTS FOR QUANTITATIVE ANALYSIS .............................................................................. 12
RESEARCH METHODOLOGY: Part two (Qualitative Analysis) ..................................................... 19
Research Design ......................................................................................................... 19
Qualitative strategy of inquiry .................................................................................... 20
The role of the researcher ........................................................................................... 21
Population, Sampling and Instrument ......................................................................... 21
RESULTS FOR QUALITATIVE ANALYSIS ................................................................................. 22
DISCUSSION AND IMPLICATIONS FOR PUBLIC POLICY ........................................................ 23
REFERENCES .............................................................................................................................. 24
APPENDICES ............................................................................................................................... 25
QUESTIONNAIRE FOR QUANTITATIVE ANALYSIS ................................................................ 25
TRANSCRIPTION FOR THE QUALITATIVE PORTION .............................................................. 27
The Case of Volkswagen Page ii
List of figures
Figure 1: Awareness ....................................................................................................... 17
Figure 2: Violation .......................................................................................................... 18
The Case of Volkswagen Page iii
INTRODUCTION
The study aims to see if there is positive relationship between product involvement and the
relative knowledge of consumer protection Act within the same product category/line. This
relationship is particularly interesting as it presupposes that consumers are inclined to product
knowledge and heightened post purchase behavioural enquiries which are in congruence to the
practice of customer-product involvement. This will provide evidence to the proverbial truths of
Involvement as a theory in the context of native South Africa, and it will further ratify the logic
of apparent systematised and linear layouts of the consumer decision making process proposed
by a myriad of scholars in consumer research (Michaelidou, Nina, and Sally, 2008; Richard,
John, and David, 1983; Olshavsky, Richard, and Donald, 1979). Customers with high product
involvement are comparably more likely to engage in post purchasing behaviours than their
counterparts. Traditionally, post purchase behaviours have been seen in light of good and positive
tactical consumer responses that encourage the order of consumptive continuation reflective of
successful customer-seller fraternities. The researcher aims to propose the other side of the post
purchase behaviour that sees the customers as detached and proactive to the call of justice where
there is lack. It is more often than not that the poor delicate consumers will cease the feat of their
glory by giving into manipulative and misdirected pocket emptying attempts from suppliers who
care little to none about their presumed euphoria on reception of offers. Many consumers in South
Africa, especially black consumers, are starved of the autonomy bought about by privileges
inherent in the consumer protection act which seem to be anything but conspicuous to their front
and this can be credited to nothing but total sheer lack of the necessary curiosity and involvement.
The researcher is convinced that with the necessary product involvement, knowledge on
subsequent rights and privileges and of course, commitment and conformity to the same by the
deal-mates, successes is inevitable. The reasons why a lot of suppliers get away with “Murder”
is because of the relative lack of response from the consumers. The researcher aims to propose
with this study new terms of solutions for the African consumer that will see him purged with
knowledge on his rights and privileges as a consumer.
The researcher also uses the Volkswagen (VW) scandal as an illustrative case study. The
Volkswagen (VW) emissions cheating scandal has shown that flawed culture, governance and
accountability can undermine even well-respected products and technologies. VW’s challenge
now is how to protect its integrity. Integrity is a core value. It simply means "it is always the right
time to do what’s right"(Hilburg & Linnell, 2015).
Page 1
It is the researcher’s believe that many consumers are not aware of their rights and as such have
most these rights violated. A new concept has arisen from this research: “Consumer Abuse”- this
is when consumer rights are violated and not addressed appropriately where their concurrent
violation is of report to relevant authorities but not sought. The government should design stricter
policies and law enforcements to this sought abuse. This study will address some of the policy
implications in the subject and propose solutions that will edify the grey area for most South
African consumers.
The Case of Volkswagen Page 2
LITERATURE REVIEW
The Case of Volkswagen

The Volkswagen (VW) emissions cheating scandal has shown that a flawed culture, governance
and accountability can undermine even well-respected products and technologies. The scandal,
in which VW self-confessed that it intentionally covered up its true diesel vehicle emissions
readings, is not about a lack of technical competence. At this point, the company’s very
competence enabled it to create the classy ruse in the first place. Now what we have seen coming
into question is corporate leadership’s character and the morality of leadership decision-making.
It has been said that early reports indicating that the emissions cheat was probably considered
and authorised by some in the leadership, the scandal demonstrates the trust damage and financial
costs of a lack of governance, accountability and risk planning. VW’s deception raises the
cultural question: how does this respected brand’s leadership make decisions? (Hilburg &
Linnell, 2015).
The most important reason why values within an organisation are implemented is to ensure the
organisation’s global positioning system. A value-driven leadership’s greatest dividend is trust.
Some successful organisations have values so strong, so clear and so behaviourally structured
that the employees and leadership don’t have to always ask for permission because they know
that if they make decisions based on their values, they’ll always be right. Like every other major
company, VW has three primary objectives: protecting organisational trust, protecting market
trust and protecting societal trust.
The VW brand, as part of the larger German automotive brand, has always been about
competence. Competence inspires confidence. Its greatest threat is not from consumers, who will
continue buying the quality cars VW makes and sells (Hilburg & Linnell, 2015). The greatest
threat at this point for VW is from its financial, controlling and media stakeholders: how can you
trust a leadership team that threatens the economic viability of the company? Indeed, the latest
reports indicate that the first class-action lawsuits are already being launched against the company
by shareholders in the US. Residents and employees in VW’s hometown of Wolfsburg are urging
the company to take steps to restore trust in its own brand and in the "Made in Germany" label.
VW’s challenge now is how to protect its integrity. Integrity is a core value. It simply means "it
is always the right time to do what’s right"(Hilburg & Linnell, 2015).
Consumer Protection: Definition, Objective and Tools
Consumer protection Act:
Looking at the Consumer Protection Act, much can be said about the CPA. Having gone through
the Act and its major responsibility as put in a 480 pager blueprint, the researcher had to make
reference on parts affecting the sale of used vehicle, also known as second hand vehicles. We
aim to see how the role of CPA (2009) is interpreted as from the angle of the VW Scandal and
see how aware are consumers about the Act.
The media has made the Act look really unreliable in that in many ways they have misinformed
the public into believing that they can return a car to a dealer within 6 months of purchase under
almost any circumstance. What the media has singularly failed to do is explain under which
circumstances this may happen and what are the ramifications thereof. Below is a further
deliberation on CPA and its aims:
The Consumer Protection Act, No. 68 of 2008 was signed on 24 April 2009.
It aims to:
 Promote a market place that is fair, accessible and sustainable for consumer products and
services.
 Ensure consumer protection by establishing national standards and norms
 To prohibit certain unfair marketing and business practices the act makes provision for
improved standards of consumer information
 Promote responsible consumer behaviour establish the national consumer commission
The act applies to the following:
 Every transaction occurring with the Republic of South Africa
 Promotion or supply of any goods and services occurring with the Republic
 Goods or services that are supplied or performed in the Republic
The act does not apply to:
 Goods and services offered to the state
 Industry-wide exemption being granted to regulatory bodies
 Credit agreements in-terms of the National credit act
 Services under employment contracts
 Agreements giving effect to collective bargaining agreements
To thematically explore further on what the act entails the researcher had to look at some of the
topics associated and conceptualised with the Act and these included Inter alia:
A Consumer
Any person who buys commodities and services or is a user of such commodity and services is
known as a consumer. The consumer protection act provides protection to someone who uses and
consumes a product and service. Any person must satisfy two conditions to claim themselves as
a consumer: first, the service must have been rendered to them; and second he must have paid or
promised to pay for the same. If a person buys capital goods to render a service to other
individuals to earn his livelihood, then he is also recognised as a consumer. He is entitled to
receive all privileges under Consumer protection act, 1986. For example, if a hairdresser buys
hair products from a hair manufacturer, if he finds any defects with the product he can seek
redressal from consumer grievance mechanism. However if any person buys a commodity for
purposes of resale or re-trade or distribution, such a person is not recognised as a consumer
(Branan 1996).
Consumer rights
The following rights apply to any consumer in the context of South Africa:
 Right to equality in the consumer markets and protection against discriminatory
marketing practices
 Right to privacy
 Right to choose
 Right to disclosure of information
 Right to fair and responsible marketing
 Right for fair and honest dealing
 Right for fair, just and responsible terms and conditions
 Right for fair value, good quality and safety
 Right for accountability by suppliers
Trader
A trader is a person who sells goods or distributes goods for sale, or a manufacturer who produce
goods for sale, or a packer of packs and sell any goods made by others (Branan 1996).
Goods and services
Sale of goods act, 1930 defines goods as commodities purchased or produced for sale. Service
on the other hand means service of any description which is made available to potential users.
This is a promise sold to a consumer about performing an activity for him that may provide him
satisfaction. Services are not rendered free of cost or under a contract of personal service (Branan
1996).
Unfair trade practise
Any type of false representation, bluff misleading statements, acts or practices adopted by traders
for promoting or selling goods and services are regarded as unfair trade practice. This includes
false representation about: standard or high quality of goods and services; old renovated goods
as brand new goods; affiliation or sponsorship from an organisation by a seller or supplier;
warranty or guarantee with the seller (Branan 1996).
Defect and deficiency
Any fault, imperfection or shortcoming, in the quality, quantity, potency, or standard which is
required to be maintained by or under any law for the time being in force or under any contract,
express or implied, or as is claimed by the trader in the manner whatsoever in relation to any
goods. Genuineness of goods is maintained by setting standards, in some cases the standards may
be prescribed by law. Deficiency means any fault, imperfection, or short coming or inadequacy
in the quality, nature and manner of performance which is required to be maintained by or under
any law for the time being in force or has been undertaken to be performed by a person in relation
to any service (Branan 1996).
Consumer Disputes Redressal agencies
There is a three-tier system envisaged under the act. The agencies in the system are:
1. District consumer forum
2. State commission
3. National Commission
Application of Consumer Protection in the Case of Volskwagen

The CPA states that all consumers have the right to disclosure by the product owner or service
provider, meaning that all information should be shared with the consumer in a way that which
they can understand. However, in the case of VW Emission scandal, they were in bridge of these
rights in the South African context (CPA, 2009):
 Right to Equality in the Consumer Market and Protection against Discriminatory marketing
Practices;
 Right to Privacy;
 Right to Choose;
 Right to Disclosure of Information;
 Right to Fair and Responsible Marketing;
 Right to Fair and Honest Dealing;
 Right to Fair, Just and Reasonable Terms and Conditions;
 Right to Fair Value, Good Quality and Safety; and
 Right to Accountability by Suppliers.
Consequences of Consumer Protection in the Case of Volkswagen

Although the VW emission scandal is not impacting the South African market directly, it does
however take into consideration the fact the rights listed above do apply in the smallest way for
this in a South African context.
Success, Why?
Due to the VW emission scandal not having a direct impact on South African consumers, one
can’t not really say that the CPA was therefore applied in this intense. However, taking into
account the statement released by VW to their dealership as formal communication to all their
concerned customers as means to bring calm and assurance to all that the South African WV
motors have not been impacted in any way.
This speaks to the directive from the CPA, regarding clear communication to customers.
Failure, Why?
We, therefore, can’t conclude that the CPA was a failure as the case of VW emission scandal
does not apply to South African motors.
RESEARCH METHODOLOGY: Part one (Quantitative Analysis)
Justification
This study seeks to answer and explain research questions mentioned above through a nexus of
quantitative and qualitative procedures. For the quantitative part of the study the researcher seeks
to describe consumer protection as a social phenomenon by employing the use of system-based
numerical means which employ the use of statistical and mathematical processes (Wagner at el.
2012). The researcher attempts to understand the depth of involvement the South African
Consumer has on consumer protection act in the motor industry and its implications thereof,
using the VW scandal as an illustrative case study. This approach carries with it the onus of
providing a succinct of descriptive statistical insight which will help predict generalization of
outcomes.
Questionnaire design
The researcher took into consideration the appearance of the questionnaire (should be user-
friendly); duration of the questionnaire (<7 min to complete). The researcher believes that
through the right instrument of gathering data, absolute truth for this inquiry (Consumer
Protection and involvement) can be produced. The questionnaire had only two sections, the first
section was mainly on the demographic depiction of the populace, this was intended to give a
bird’s eye on different parameters of the populace’s socio-demographic distributions. In this
section the researcher intended for the audience to be proportionally distributed according to race
(100% black,) age group (75% 19 – 35, 25% other age groups) car ownership (75% Yes, 25%
No) and level of education (no proportions). The significance of these proportions can be credited
to the South African population distribution and makeup following the latest Stats SA Census
results. The researcher believes that for the study to be reflective of true enquiries and thus
generalizability the sample should be representative of the entire population. The second section
of the questionnaire was a series of lirket scale questions measuring knowledge of the consumer
protection act and the relative involvement. The design of the questionnaire was preceded by the
following hypothesis concerning consumer protection and involvement.
HA: There is positive relationship between product involvement and the relative knowledge of
consumer protection Act within the same product category/line. This relationship is particularly
interesting as it presupposes that consumers are inclined to product knowledge and heightened
post purchase behavioural enquiries which are in congruence to the practice of customer-product
involvement. This will provide evidence to the proverbial truths of Involvement as a theory in
the context of native South Africa, and it will further ratify the logic of apparent systematised
and linear layouts of the consumer decision making process proposed by a myriad of scholars in
consumer research (Michaelidou, Nina, and Sally, 2008; Richard, John, and David, 1983;
Olshavsky, Richard, and Donald, 1979). Customers with high product involvement are
comparably more likely to engage in post purchasing behaviours than their counterparts.
Traditionally, post purchase behaviours have been seen in light of good and positive tactical
consumer responses that encourage the order of consumptive continuation reflective of
successful customer-seller fraternities. The researcher aims to propose the other side of the post
purchase behaviour that sees the customers as detached and proactive to the call of justice where
there is lack. It is more often than not that the poor delicate consumers will cease the feat of their
glory by giving into manipulative and misdirected pocket emptying attempts from suppliers who
care little to none about their presumed euphoria on reception of offers. Many consumers in South
Africa, especially black consumers, are starved of the autonomy bought about by privileges
inherent in the consumer protection act which seem to be anything but conspicuous to their front
and this can be credited to nothing but total sheer lack of the necessary curiosity and involvement.
The researcher is convinced that with the necessary product involvement, knowledge on
subsequent rights and privileges and of course, commitment and conformity to the same by the
deal-mates, success is inevitable. The reasons why a lot of suppliers get away with “Murder”,
(figuratively) is because of the relative lack of response from the African consumer. The
researcher aims to propose with this study new terms of solutions for the African consumer that
will see him purged with knowledge on his rights and privileges as a consumer.
Population and sample size

The quantitative part of the research was directed towards the general population in the cities of
Johannesburg. Instead of studying every individual within the borderline, a subset of a research
will be identified to represent the population (Wagner et al 2012). There are two types of
sampling probability sampling and non-probability sampling (Meadows 2003). Probability
sampling is where every sampling unit has an equal chance of being included in the study
(Meadows 2003). The rationale behind probability sampling is random selection which in
choosing the sample removes subjectivity (Wagner 2012). According to Meadows (2003), Non-
probability sampling involves choosing samples that are rather representative of the
characteristics of target population (p.522). For the purpose of this study non-probability
sampling was employed and the method used was a duet of proportional and convenience
sampling. Participants were randomly selected from shopping centers, malls, streets churches
and other places of gathering according to the convenience of the researcher. The total sample
was n = 20.
Data collection
Data collection involves collecting information from participants to assist the researcher in
answering research questions (Wagner et al 2012). Researcher will inform the participants that
access to the survey will be tightly controlled by the researchers and their confidentiality will not
be compromised. Primary data will be collected by the issuing and collecting of questionnaires
from the pre-labeled sample sector.
For secondary data, the research utilized earlier studies on consumer protection and its
expediency on consumer behavior. Most of these secondary data were collected from books,
journal articles and online data sources.
Data analysis
The study has employed the use of factor analysis utilizing the principle component method and
a varimax approach. The factor analysis procedure is good for summarizing variables and
reducing them to a manageable level where they are easy to interpret. Once the variables have
been reduced accordingly, linear regression will be used to see if there is a relationship between
involvement and consumer protection act knowledge. The nature of Likert-scale is such that
although it is fundamentally qualitative when the sample increases it lends itself to a quantitative
layout thereby becoming ideal for this narrative and discourse. To make a correct prediction and
reduce type one and type two errors, the researcher had to test for multicolinearity using the value
inflation factor and condition index. Anything more than 10 on VIF was investigated and if the
CI was more than 30 it had to be investigated also. To test for outliers the researcher had used
outlier diagnostics plots. These included calculations of DFBETAS, DFFITS, QQ PLOTs, and
the COOK’S D. The researcher also used frequency tables to analyze and configure the parttern
of responses on the awareness and violation of rights as composites for the tabling of the
investigation.
Reliability is the stability with which a measuring instrument gives a certain result when the
entity being measured hasn’t changed (Wagner et al. 2012). Reliability is measured by repeatedly
measuring the variables or constructs in question. The higher the association between the scores
derived after testing the model through this procedure, the more reliable the scale (Babbie 2016).
Cronbach’s coefficient alpha was used to assess and measure the reliability of the measuring
instrument.
RESULTS FOR QUANTITATIVE ANALYSIS
Factor analysis procedure
Correlations
Right to
equality in
the
consumer
markets Right for
and fair, just Right
protection Right and for fair
against Right to Right to for fair responsib value,
discrimato Right Right disclosur fair and and le terms good Right for
ry to to e of responsib honest and quality accountabili
marketing privac choos informati le dealing condition and ty by
practices y e on marketing 1 s safety suppliers
Right to equality in the Right to 1 - 0.0643 0.21209 0.43205 - 0.09046 - -0.10548
co_0001 equality in 0.0157 3 0.1721 0.1547
the 4 7 4
consumer
markets
and
protection
against
discrimator
y marketing
practices
Right to privacy_0001 Right to -0.01574 1 0.8917 0.28339 0.19137 0.8978 0.32394 0.2675 0.36402
privacy 2 3 2
Right to choose_0001 Right to 0.06433 0.8917 1 0.39465 0.1481 0.6921 0.07424 - 0.10165
choose 2 0.0122
1
Right to disclosure of Right to 0.21209 0.2833 0.3946 1 0.47882 0.1302 -0.31738 - -0.28497
info_0001 disclosure 9 5 2 0.3444
1
Why and When Does Consumer Protection Fail? A Consumer Behaviour Perspective: The Case of Volkswagen Page 12
of
information
Right to fair and Right to fair 0.43205 0.1913 0.1481 0.47882 1 0.1878 0.01115 - -0.1194
responsib_0001 and 7 9 0.1849
responsible 5
marketing
Right for fair and honest Right for -0.17217 0.8978 0.6921 0.13022 0.18789 1 0.52237 0.5282 0.6056
d_0001 fair and 3 5
honest
dealing
Right for fair, just and Right for 0.09046 0.3239 0.0742 -0.31738 0.01115 0.5223 1 0.8397 0.90459
re_0001 fair, just 4 4 7 1
and
responsible
terms and
conditions
Right for fair value, Right for -0.15474 0.2675 - -0.34441 -0.18495 0.5282 0.83971 1 0.93962
good_0001 fair value, 2 0.0122 5
good 1
quality and
safety
Right for accountability Right for -0.10548 0.3640 0.1016 -0.28497 -0.1194 0.6056 0.90459 0.9396 1
by_0001 accountabil 2 5 2
ity by
suppliers
= Smallest Correlation
= Highest Correlation
Why and When Does Consumer Protection Fail? A Consumer Behaviour Perspective: The Case of Volkswagen Page 13
Eigenvalues of the Correlation Matrix: Total
= 9 Average = 1
Eigenvalue DifferenceProportionCumulative
1 3.72968018 1.1749219 0.4144 0.4144
2 2.55475828 1.19198095 0.2839 0.6983
3 1.36277733 0.71670176 0.1514 0.8497
4 0.64607557 0.20597754 0.0718 0.9215
5 0.44009804 0.31552891 0.0489 0.9704
6 0.12456913 0.05136312 0.0138 0.9842
7 0.07320601 0.03134074 0.0081 0.9924
8 0.04186528 0.01489509 0.0047 0.997
9 0.02697019 0.003 1
= Factors that account for the most variance in the data
Rotated Factor Pattern (Standardized Regression Coefficients)

Factor1 Factor2 Factor3
Right to equality in the co_0001 Right to equality in 0.12282 -0.21275 0.88363
the consumer
markets and
protection against
discrimatory
marketing practices
Right to privacy_0001 Right to privacy 0.09365 0.95338 -0.03132
Right to choose_0001 Right to choose -0.19658 0.96725 -0.04455
Right to disclosure of info_0001 Right to disclosure -0.48879 0.50058 0.38263
of information
Right to fair and responsib_0001 Right to fair and -0.04185 0.16038 0.8035
responsible
marketing
Right for fair and honest d_0001 Right for fair and 0.36787 0.81486 -0.07069
honest dealing
Right for fair, just and re_0001 Right for fair, just 0.97836 -0.00815 0.20151
and responsible
terms and
conditions
Right for fair value, good_0001 Right for fair value, 0.94277 -0.00193 -0.0651
good quality and
safety
Right for accountability by_0001 Right for 0.94775 0.09328 -0.00366
accountability by
suppliers
= High Loading
= Highest Loading
Regression Procedure
Parameter Estimates
Paramet Standa Varian
er rd ce
Estimat t Va Inflatio
Variable Label DF e Error lue Pr > |t| n
Intercept Intercept 1 3.40078 2.2728 1.5 0.1568 0
6
Right for fair, just and Right for 1 0.87192 0.4859 1.79 0.0944 1.8804
respons fair, just 2 6
and
responsibl
e terms
and
conditions
Right to choose 1 -1.30517 0.6303 - 0.0574 2.0767
6 2.07 2
Right to equality in the Right to 1 0.7399 0.2927 2.53 0.0242 1.0878
consume equality in 5 2
the
consumer
markets
and
protection
against
discrimator
y
marketing
practices
Age 1 -0.01587 0.0205 - 0.4521 1.0653
1 0.77
= Significant variable (less than 5% LOS)
Factor Analysis:
From the factor procedure the following could be observed
 The Combranch alpha was 0.83 which is well above the minimum threshold of 0.70. This meant there
was internal consistency.
 Correlation was highest between Right for fair value, good quality and safety and Right for
accountability by suppliers (90%)
 Correlation was lowest between Right to fair and responsible marketing and Right for fair, just and
responsible terms and conditions (0.0111)
 three factors have been selected by the Kaiser criterion to provide a succinct for important variables,
these are uncorrelated variables that account for the most varience in the data
 Right for fair, just and responsible terms and conditions, Right for fair value, good quality and safety
and Right for accountability by suppliers load high on Factor 1
 Right to privacy, Right to choose, Right to disclosure of information and Right for fair and honest
dealing load high on Factor 2
 Right to equality in the consumer markets and protection against discrimatory marketing practices
and Right to fair and responsible marketing Load high on Factor 3
 For Factor 1 the researcher took the variable with the highest loading to represent all and this was
Right for fair, just and responsible terms and conditions (97%)
the right to choose (96%)
Right to equality in the consumer markets and protection against discrimatory marketing practices
(88%)
 It must be noted that Only the Right to disclosure of information does not explain the variability in
commonality to all other variables
 Product Involvement and Consumer protection Act: Regression Results and Interpretation
 Right for fair, just and responsible terms and conditions is significant at 10% level of significance
[Pr > |t| (0.09 <0.1)] therefore we can conclude that there is a relationship between Right for fair,
just and responsible terms and conditions and Product involvement. furthermore it must be noted
that an increase in the violation of the Right for fair, just and responsible terms and conditions has
caused consumers to be more weary and circumpectuous thereby more involved
 Right to choose is significant at 10% level of significance [Pr > |t| (0.05 <0.1)] therefore we can
conclude that there is a relationship between right to choose and product involvement. Furthermore
it must be noted that an increase in the violation of this right by suppliers decreases the level of
product involvement.
 Right to equality in the consumer markets and protection against discrimatory marketing practices
is significant at 10% Level of significance [Pr > |t| (0.02 <0.1)] therefore we can conclude that there
is a relationship between this right and product involvement. Furthermore it must be noted that an
increase in the violation of this right has seen an increase in product involvement
Frequency analysis
Using mathematical means to see if customers were aware of all the rights listed in the Consumer
Protection Act and further validate the assumption that some rights are violated, the following
could be observed:
Figure 1: Awareness
Mean Awareness Of the CP Act

Right for accountability by suppliers 79%
Right for fair value, good quality and safety 74%

Right for fair, just and responsible terms and
71%
conditions
Right for fair and honest dealing 66%
Right to fair and responsible marketing 61%
Right to disclosure of information 68%
Right to choose 82%
Right to privacy 76%

Right to equality in the consumer markets and
37%
protection against discrimatory marketing practices
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
The total number of participants was 20 and all participants responded to the questions in the
questionnaire as the questionnaire was conducted with assistance from the researcher. From the
above figure we see that most of the participants were not aware of the right to equality in the
consumer markets with an average of only 37% aware. This means they were not aware that this
was an actual right that could be practised and where they could lay a complaint if the right was
violated. The right that most people were aware of was the right to choose with an above 80%
average.
Figure 2: Violation
Violation of rights
Right for accountability by suppliers 8%
Right for fair value, good quality and safety 8%
Right for fair, just and responsible terms and… 8%
Right for fair and honest dealing 5%
Right to fair and responsible marketing 34%
Right to disclosure of information 11%
Right to choose 3%
Right to privacy 8%
Right to equality in the consumer markets… 24%
0% 10% 20% 30% 40%
From figure 2 we can observe that consumers think the right that was most violated was the right
for fair and responsible marketing (34%). The researcher also observed, upon further inspection
and enquiry, that most participants felt that they were being scammed through anti-onsent
promotional tactics. Sellers would normally obtain consumer details without explaining to them,
thoroughly, what their information will be used for, and this would usually be followed by a
myriad of promotional SMSes and emails without their due consent. It seems like this has been
a practise a lot of people have been all too familiar with and most do not know how to respond
to this.
Given the above two figures, future research on the topic should look into the effect of gender,
race and age, in order to see if discrimination is really the case in consumer markets. And
furthermore future research should investigate the concept and application of permission
marketing in Consumer protection.
RESEARCH METHODOLOGY: Part two (Qualitative Analysis)
Research Design
A qualitative research framework was selected to analyse the qualitative part of this paper as it
being suitable. A qualitative approach embraces the collection and the interpretation of non-
numerical data, focusing on how people within the sample create and maintain their social worlds
(Hinder, 2004; Welman & Kruger, 2003). Thus, qualitative approaches aim to explore the
experiences of individuals and how they understand and interpret the world around them
(Creswell, 2003; Kapelianis, 1999). The scarcity of research conducted in this area of study also
called for a qualitative approach to analysis (Creswell, 2003). The qualitative research paradigm
has in cultural anthropology and American sociology, however qualitative research approaches
have become prominent within social science in the last three or four decades (Creswell, 2003).
This type of research involves a fundamentally interpretative, naturalistic approach to studying
phenomena (Denzin & Lincoln, 1994) and is multi-method in focus where the researchers look
for involvement of participants in data collection.
Descriptive data-the data in qualitative research takes the form of word so pictures rather than
numbers. Often the descriptive data contains quotations said by informants to illustrate and
substantiate the presenting findings. Data can include; transcripts. Field notes, photographs,
video recordings, audio recordings, personal documents and memos. Qualitative research does
not reduce the pages of narration into numbers like quantitative researchers (Bogdon and Bilken,
1989). These data collection methods include open-ended observations, interviews and visual
texts (Creswell, 2003). This means that qualitative researchers study subjects matter in their
natural settings in order to make sense and interpret phenomena in terms of meanings people
bring to them (Creswell, 2003). Thus, qualitative approaches aim to gather in-depth descriptions
of events and actions to help the researcher gain insight into why and how these events and
actions take place rather than just presenting a phenomenon (Babbie & Mouton, 2000).
Qualitative research also allows participants to express feelings and opinions in their own words,
increasing levels of comfort among participants. A disadvantage of qualitative research is that it
can prove to be time consuming especially when it comes to data collection and analysing the
data (Babbie & Mouton, 2000).
Qualitative strategy of inquiry
The study used an interview strategy inquiry of ten interview questions. Such an approach would
seek to try and outline the themes in the study that surfs during the interviews. These themes are
outlined as being important points that were made by the participants during the course of the
interviews hence one will pick up certain trends and emphasis when certain issues are being
discussed within the transcripts. Although thematic analysis has been described (Benner, 1985;
Leininger, 1985; Taylor & Board, 1984), there is insufficient literature that outlines the pragmatic
process of thematic analysis (Aronson, 1994). The ethnographic interview is a commonly used
interviewing process employed by research-clinicians (Kuehl & Newfield, 1991; Kuehl,
Newfield & Joanning, 1990; Newfield, Joanning, Kuehl, & Quinn, 1990; Newfield, Kuehl,
Joanning & Quinn, 1991; William, 1992). From the conversations that take place in a therapy
session or those that are encouraged for the sake of researching a process, ideas emerge that can
be better understood under the control of a thematic analysis. Thematic analysis focuses on
identifiable themes and patterns of living and/or behaviour (Aronson, 1994).
Thematic networks, as an analytic tool, draw on core features that are common to many
approaches in qualitative analysis (Stirling, 2001). Thematic networks aim to explore the
understanding of an issue or the signification of an idea, rather than to reconcile conflicting
definitions of a problem (Stirling, 2001). The first step is to collect the data. Audiotapes should
be collected to study the talk of a session or of an ethnographic interview (Spradley, 1979). From
the transcribed conversations, patterns of experiences can be listed. This can come from direct
quotes or the paraphrasing of common ideas (Aronson, 1994).
The following is an example. A family was interviewed to get a better understanding of their
experience with a juvenile justice system. The entire interview was transcribed. The first pattern
of experience listed, was the process of the juvenile being arrested, and the different explanations
from the various family members. The second pattern of experience listed was the attitude that
each family member had toward the process (Aronson, 1992).
The next step to a thematic analysis is to identify all data that relate to the already classified
patterns. To continue the above example, the identified patterns are then expounded on. All of
the talk that fits under the specific pattern is identified and placed with the corresponding pattern.
For example, each family member somehow named their "attitude" while they were speaking.
The father stated that he is "anti-statist," the mother said that she is "protective," and the son
stated that "felt bad for what he had done" (Aronson, 1992).
The next step to a thematic analysis is to combine and catalogue related patterns into sub-themes.
Themes are defined as units derived from patterns such as "conversation topics, vocabulary,
recurring activities, meanings, feelings, or folk sayings and proverbs" (Taylor & Bogdan, 1989,
p.131). Themes are identified by "bringing together components or fragments of ideas or
experiences, which often are meaningless when viewed alone" (Leininger, 1985, p. 60). Themes
that emerge from the informants' stories are pieced together to form a comprehensive picture of
their collective experience. The "coherence of ideas rests with the analyst who has rigorously
studied how different ideas or components fit together in a meaningful way when linked together"
(Leininger, 1985, p. 60). Constas (1992) reiterates this point and states that the "interpretative
approach should be considered as a distinct point of origination" (p. 258) in (Aronson, 1994).
The next step is to build a valid argument for choosing the themes. This is done by reading the
related literature. By referring back to the literature, the interviewer gains information that allows
him or her to make inferences from the interview or therapy session. Once the themes have been
collected and the literature has been studied, the researcher is ready to formulate theme statements
to develop a story line. When the literature is interwoven with the findings, the story that the
interviewer constructs is one that stands with merit. A developed story line helps the reader to
comprehend the process, understanding, and motivation of the interviewer (Aronson, 1994).
The role of the researcher

As qualitative research is fundamentally interpretative, the views and personal experiences of the
researcher as primary data collection instrument may serve as biases to study (Creswell, 2003).
Although every effort has been made to ensure objectivity in this study, these biases may shape
the way the researcher views and understands the data collected and the way these experiences
are interpreted (Creswell, 2003).
Population, Sampling and Instrument

Convenience sampling technique
This is the least rigorous technique, involving the selection of the most accessible subjects. It is
the least costly to the researcher, in terms of time, effort and money, but may result in poor quality
data and lacks intellectual credibility. There is an element of convenience sampling in many
qualitative studies, but a more thoughtful approach to selection of a sample is usually justified
(Marshall, 1996). First, samples for qualitative investigations tend to be small, for reasons
explained later in this article. Even if a representative sample was desirable, the sampling error
of such a small sample is likely to be so large that biases are inevitable (Marshall, 1996).
The size of the sample is determined by the optimum number necessary to enable valid inferences
to be made about the population. The larger the sample size, the smaller the chance of a random
sampling error, but since the sampling error is inversely proportional to the square root of the
sample size, there is usually little to be gained from studying very large samples. The optimum
sample size depends upon the parameters of the phenomenon under study, for example the rarity
of the event or the expected size of differences in outcome between the intervention and control
groups (Marshall, 1996).
RESULTS FOR QUALITATIVE ANALYSIS
Given the outcomes from the interview, it is evident that although the Motor Industry is covered
in the CPA, this would not be the case for VW in South Africa as SA VW cars were not affected
by the emission scandal. This is because the VW cars In South Africa the emission compliance
standard is EU 2. All Volkswagen Group diesel vehicles of the type EA 189 retailed in South
Africa, i.e. Volkswagen passenger, Audi, Volkswagen Commercial vehicles comply with this
standard for Nitrogen oxide emissions.
The outcome of the interview also indicate that from a theoretical stand point, if the effect was
evident in the South African context, the company would have been in violation of the following
sections in the act:
 Marketing Practices;
 Right to Disclosure of Information;
 Right to Fair and Responsible Marketing;
 Right to Fair and Honest Dealing;
 Right to Fair Value, Good Quality and Safety; and
 Right to Accountability by Suppliers. Performance
DISCUSSION AND IMPLICATIONS FOR PUBLIC POLICY
The study aimed to see if there was a positive relationship between product involvement and the
relative knowledge of consumer protection Act within the same product category/line. This
relationship was particularly interesting as it presupposed that consumers are inclined to product
knowledge and heightened post purchase behavioural enquiries which are in congruence to the
practice of customer-product involvement. After running the factor analysis for variable
reduction only three variables/factors stood out and these were: 1) Right for fair, just and
responsible terms and conditions. Here we see that an increase in the violation of the Right for
fair, just and responsible terms and conditions has caused consumers to be more weary and
circumpectuous thereby more involved. This is further reiterated by Michaelidou et al, (2006) who
defined three taxonomies of involvement as Enduring involvement; Situational involvement;
Response involvement. ; 2) Right to choose, according to the results from the regression
procedure we observe that an increase in the violation of this right by suppliers decreases the
level of product involvement; 3) Right to equality in the consumer markets and protection against
discrimatory marketing practices, Furthermore it must be noted that an increase in the violation
of this right has seen an increase in product involvement. Given these conduits relationships the
researcher reiterates the need for policy alteration to suit the current circumstances and status
quo. It is the researcher’s believe that many consumers are not aware of their rights and as such
have most these rights violated. A new concept has arisen from this research: “Consumer Abuse”-
this is when consumer rights are violated and not addressed appropriately where their concurrent
violation is of report to relevant authorities but not sought. The government should design stricter
policies and law enforcements to this sought abuse.
For the VW case study SA VW cars were not affected by the emission scandal. This is because the VW
cars In South Africa the emission compliance standard is EU 2. All Volkswagen Group diesel vehicles of
the type EA 189 retailed in South Africa, i.e. Volkswagen passenger, Audi, Volkswagen Commercial
vehicles comply with this standard for Nitrogen oxide emissions. Future research should study the
relationship between Involvement and Consumer protection more in-depth.
REFERENCES
Michaelidou, N., & Dibb, S. (2008). Consumer involvement: a new perspective. The Marketing
Review, 8(1), 83-99.
Petty, R. E., Cacioppo, J. T., & Schumann, D. (1983). Central and peripheral routes to advertising
effectiveness: The moderating role of involvement. Journal of consumer research, 135-146.
Olshavsky, R. W., & Granbois, D. H. (1979). Consumer decision making-fact or fiction?.

Journal of Consumer Research, 93-100.
Hirschman, E. C. (1982). The experiential aspects of consumption: Consumer fantasies,

feelings, and fun. Journal of consumer research, 132-140
Branan, A., & Hergert, M. (1996). MEXUS Program.
Wagner, C., Kawulich, B. & Garner, M. (Ed). (2012). Doing Social Research, a Global
Context: South African Edition. Berkshire: McGraw Hill.
Meadows, K. A. (2003). So you want to do research? 3. An introduction to qualitative

methods. British Journal of Community Nursing, 8(10), 464-469.
Aronson, J. (1994). A pragmatic view of thematic analysis. The Qualitative Report, 2(1).
Retrieved October 25, 2015, from http://www.nova.edu/ssss/QR/BackIssues/QR2-
1/aronson.html
Babbie, E. (2015). The practice of social research. Cengage Learning.
Bogdon, R., & Bilken, S. (1989). Qualitative Research for Education: An Introduction to
Thematic and Models. The Qualitative Report, 59-68.
Gibbs, A. (1997). 'Focus Groups', Social Reseatch Update. Department of Sociology University
of Surrey.
Hinder, K. (1994). Choosing Qualitative Methods for Entreprenurial Cognition Research : A

Canonical Development Aproach. Entreprenuerial and Practice Winter, 1042-2587
Morgan, D. (1997). Focus Groups Kit 2: Planning Focus Groups. London: Sage Publications.
Stokes, D., & Bergin, R. (2006). Methodolarty or Methodology? An Evolution of Focus Groups
and Depth Interviews: Qualitative Market Research: An International Journal, 26-37.
APPENDICES
QUESTIONNAIRE FOR QUANTITATIVE ANALYSIS
Level of education Primary
Secondary
Post-
secondary
Tertiary
Age
Do you own a Car Yes

No
Have you ever experienced any

unfair practice after the sale of a car Yes
No
if you answered yes to this question:

Which medium did you use to
complain about this
DTI
Customer
care line
DTI Office
of
consumer
protection
DTI Email
DTI
Website
National
Consumer
Tribunal
line
NCT
Email
NCT
Website
None
Please indicate by rating the level of
agreement on the following issues: Strongl
which rights are you mostly familiar Ne y
with as a consumer Strongly Agr utr Disag disagre
Agree ee al ree e
Right to equality in the consumer
markets and protection against
discriminatory marketing practices
Right to privacy
Right to choose
Right to disclosure of information
Right to fair and responsible
marketing
Right for fair and honest dealing
Right for fair, just and responsible
terms and conditions
Right for fair value, good quality
and safety
Right for accountability by
suppliers
Strongl
Of these which ones do you think Ne y
have been violated: please rate Strongly Agr utr Disag disagre
according to the level of agreement Agree ee al ree e
Right to equality in the consumer
markets and protection against
discriminatory marketing practices
Right to privacy
Right to choose
Right to disclosure of information
Right to fair and responsible
marketing
Right for fair and honest dealing
Right for fair, just and responsible
terms and conditions
Right for fair value, good quality
and safety
Right for accountability by
suppliers
What is the your level of interest on

5 4 3 2 1
the motor industry: 1 being less
interested and 5 being very
interested
What is the your level of knowledge
5 4 3 2 1
about the motor industry: 1 being
less aware and 5 being very aware
TRANSCRIPTION FOR THE QUALITATIVE PORTION

Interviewer: Noluthando Mazibuko
Interviewee: Justice from VW Booysens
Introduction: Err…hi Justice, my name is Noluthando from Wits University…
Justice: Okay…
Introduction continued: And I am doing an assignment on err…Consumer Protection Act and

today I’ll be asking you six questions with regards to the VW Emission scandal
Question 1: Are you aware of the CPA?
Justice: Yes I am
Noluthando: Okay…
Question 2: Has CPA been in contact with VW with regards to the emission scandal?
Justice: No, not currently, it’s not something that I know. Maybe, probably with the top guys,
the CEOs, South African ones,
Noluthando: Okay
Question 3: To what extent is VW willing to corporate with the CPA?
Justice: I think that for…for them to have a very clear conscious and clear name as a err…one
of the biggest brand in the country, they has to get to the bottom of this issue that they have with
this scandal…
Noluthando: Okay
Justice: Like currently I don’t really think it affects South Africa’s markets as much
Pause
Because according to the N cap we…we actually above what South African markets requires on
the ignitions
Question 4: How does VW plan on reassuring/building trust with their consumers in SA?
Noluthando: Just to make sure people don’t worry…
Justice: About the emission?
Noluthando: Yes
))) Phone rings (((
Justice: If you can look on the news…err… we, there’s not really much about the talk about the
South African one, like I said because, our N cap is better compared to the European one,
European one they use N cap 5 I think in South Africa we use N cap 2 and we currently on N cap
4. So it doesn’t really shift that much to us.
Mmm…but we know South African markets is very loyal, so it hasn’t really affected my sales I
think you know this things called there’s no bad publicity…
Noluthando: Okay
Justice: Doesn’t really affect what we so here
Noluthando: Alright…err…I think you have answered my next question which was…
Question 5: How does VW plan on ensuring that this doesn’t affect their sales?
Justice: No it hasn’t honestly, because what we did right now, we just introduce a lot of super,
like we had a super September were you pay car 1.6 we have VGV which means Future
Guarantee Value which we did well and yeah…
The market is tight but not because of the scandal but because of the rand exchange value to the
dollar, but really the scandal is just something we read about it’s something we concerned about
Noluthando: Okay err…so I understand there’s been a formal statement that has been sent
through around the VW dealerships…
Justice: Yes…
Noluthando: which is then meant to be used by you guys to answer any questions to customers
Justice: Yeah
Noluthando: And I will be attaching that to my interview just for reference.
Noluthando: Alright, thank you.
View publication stats

Why and When Does Consumer Protection Fa

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Why and When Does Consumer Protection Fa

Uploaded by

Copyright:

Available Formats

See discussions, stats, and author profiles for this publication at: https://www.researchgate.

Why and when does consumer protection fail

Article · September 2015

The user has requested enhancement of the downloaded file.

Boitumelo Oliphant (575065) and Noluthando Mazibuko (580391)

The Case of Volkswagen

Application of Consumer Protection in the Case of Volskwagen

Consequences of Consumer Protection in the Case of Volkswagen

Population and sample size

Rotated Factor Pattern (Standardized Regression Coefficients)

= Significant variable (less than 5% LOS)

Mean Awareness Of the CP Act

Right for fair value, good quality and safety 74%

Right to fair and responsible marketing 61%

Right to disclosure of information 68%

Right to choose 82%

Right to privacy 76%

0% 10% 20% 30% 40%

The role of the researcher

Population, Sampling and Instrument

RESULTS FOR QUALITATIVE ANALYSIS

Olshavsky, R. W., & Granbois, D. H. (1979). Consumer decision making-fact or fiction?.

Hirschman, E. C. (1982). The experiential aspects of consumption: Consumer fantasies,

Branan, A., & Hergert, M. (1996). MEXUS Program.

Meadows, K. A. (2003). So you want to do research? 3. An introduction to qualitative

Babbie, E. (2015). The practice of social research. Cengage Learning.

Hinder, K. (1994). Choosing Qualitative Methods for Entreprenurial Cognition Research : A

Do you own a Car Yes

Have you ever experienced any

if you answered yes to this question:

What is the your level of interest on

TRANSCRIPTION FOR THE QUALITATIVE PORTION

Interviewee: Justice from VW Booysens

Introduction: Err…hi Justice, my name is Noluthando from Wits University…

Introduction continued: And I am doing an assignment on err…Consumer Protection Act and

Question 3: To what extent is VW willing to corporate with the CPA?

Noluthando: Just to make sure people don’t worry…

Justice: About the emission?

))) Phone rings (((

Justice: Doesn’t really affect what we so here

Noluthando: And I will be attaching that to my interview just for reference.

Noluthando: Alright, thank you.

View publication stats

You might also like