An investigation of business to business non-ownership consumption in the local market a qualitative approach

Abstract

This research aims at investigating the reasons why companies choose non-ownership type of consumption by analysing the various factors which emerged during this study. Moreover this study intends to explore the influences which lead to a company to choose a particular leasing company. Another aim of this study is also to explore the business relations between all the stakeholders. Moreover this study also attempts to establish if the Users company‟s needs are being met through the non-ownership service offering. In this study a qualitative approach was adopted together with interviews for the collection of data. The researcher interviewed six companies who have moved from ownership type of consumption and are currently using non-ownership for certain aspects of their business. The researcher has also interviewed two leasing companies to obtain a view of the Supplier‟s point of view. The following findings were established; (1) The Users in this day and age seem to prefer non-ownership type of consumption over ownership. The following factors have emerged from this study which leads to such preference are as follows: Peace of mind, Focus on companies‟ core activities, Client satisfaction, cost effectiveness, Supplier reliability, Business reciprocation and Access to the latest technology are amongst the most common factors which lead to non-ownership type of consumption being preferred over ownership. (2) Several factors are considered when a User chooses the Supplier. These factors are mainly based on familiarity and non-familiarity of the User with the Suppliers. It was also seen that this is done keeping in mind the end Client satisfaction. (3) The stakeholders which are the Supplier, the User and the Client all play and important part and thus focus on building a business relation. Through the analysis of this thesis it will become very clear that locally businesses place a great deal of importance to relationship building. This in view, that it is mutually beneficial for both the User and Supplier but also affects the end Client. It has also been found that in analysing the business relations a missing link between the Supplier and the Client has been noticed. Finally this thesis gives three recommendations for further research being; 1. How the service offering might improve if the Suppliers take into account the end client during this business transection. 2. How the evolvement of the business environment within the local context might affect non-ownership type of consumption. 3. How governmental incentives might affect non-ownership type of consumption.