Abstract
M.Com. (Marketing Management)
Market potential is a decision making aid for the strategic marketing orientated
manager. Jewellers can use information on market potential for planning, decision
making and the overall managing of their own business. It would then be possible to
develop the South African jewellery industry, to be able to deliver unique and quality
products to present and potential buyers (local and foreign). The unknown need for
information on the market potential of the South African jewellery industry realised into
this study. The aim of this study is to develop a market potential measuring model with
which the market potential of the South African jewellery industry can be determined.
The model developed is based on the chain ratio method. Various measuring variables
were identified and included in the model. The uniqueness of the model is based on two
variables namely the willingness of buyers to purchase the product and their buying
behaviour based on changes in their income (income elasticity). The above mentioned
factors have a definite influence on the buying behaviour of jewellery buyers and
therefore also the market potential. The research is done by identifying homogene
groups of buyers and determining their buying behaviour with postal questionnaires.
Personal interviews were conducted with which the South African jeweller's opinion was
included in the study. The research results showed that with the market potential of the
South African jewellery industry it can bring about a large amount of buying
opportunities. If jewellers analised the markets in which they operate with care, they will
be able to accomplish an optimal level of need satisfaction. Buyers needs will be
addressed and the potential of the jewellery industry maximalised.