The impact of internal behavioural decision-making biases on South African collective investment scheme performance
- Authors: Muller, Stacey Leigh
- Date: 2015
- Subjects: Decision making , Investment analysis , Efficient market theory , Consumer behavior , Behavioral assessment , Mutual funds
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1209 , http://hdl.handle.net/10962/d1020308
- Description: Market efficiency, based on people acting rationally, has been the dominating finance theory for most of the 20th and 21st Century’s. This classical finance theory is based on assumptions that people are rational, they absorb all available information and maximise utility. This view is outdated; it has been shown that people are in fact irrational and that this could be the cause of anomalies in the market. Behavioural finance takes into account people, and their natural biases. Behavioural finance has integrated classical financial theories and psychological theories to illustrate the way in which irrational people can impact market efficiency. This research looks at the way collective investment scheme manager decision-making can impact market efficiency. Specifically the behavioural biases: overconfidence, over optimism, loss aversion and frame dependence and whether or not collective investment scheme performance is affected by these. This research was carried out using a questionnaire distributed directly to CIS managers and risk-adjusted returns were used in order to allow for comparative results. The results from the questionnaire show evidence that actively managing South African CIS managers do indeed suffer from overconfidence and loss aversion and they do not appear to suffer from frame dependence or over optimism in this research context. There was also evidence showing that managers who suffer from these biases also demonstrated lower investment returns. “The investor’s chief problem, and even his worst enemy, is likely to be himself.” - Benjamin Graham
- Full Text:
- Date Issued: 2015
- Authors: Muller, Stacey Leigh
- Date: 2015
- Subjects: Decision making , Investment analysis , Efficient market theory , Consumer behavior , Behavioral assessment , Mutual funds
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1209 , http://hdl.handle.net/10962/d1020308
- Description: Market efficiency, based on people acting rationally, has been the dominating finance theory for most of the 20th and 21st Century’s. This classical finance theory is based on assumptions that people are rational, they absorb all available information and maximise utility. This view is outdated; it has been shown that people are in fact irrational and that this could be the cause of anomalies in the market. Behavioural finance takes into account people, and their natural biases. Behavioural finance has integrated classical financial theories and psychological theories to illustrate the way in which irrational people can impact market efficiency. This research looks at the way collective investment scheme manager decision-making can impact market efficiency. Specifically the behavioural biases: overconfidence, over optimism, loss aversion and frame dependence and whether or not collective investment scheme performance is affected by these. This research was carried out using a questionnaire distributed directly to CIS managers and risk-adjusted returns were used in order to allow for comparative results. The results from the questionnaire show evidence that actively managing South African CIS managers do indeed suffer from overconfidence and loss aversion and they do not appear to suffer from frame dependence or over optimism in this research context. There was also evidence showing that managers who suffer from these biases also demonstrated lower investment returns. “The investor’s chief problem, and even his worst enemy, is likely to be himself.” - Benjamin Graham
- Full Text:
- Date Issued: 2015
How the internet supports the consumer decision process: the case study of McCarthy Call-a-Car
- Authors: Limbada, Suhayl
- Date: 2006
- Subjects: McCarthy Call-a Car , Automobile dealers -- South Africa , Automobile industry and trade , Internet marketing , Consumer behavior , Customer services , Consumer satisfaction
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1171 , http://hdl.handle.net/10962/d1002787 , McCarthy Call-a Car , Automobile dealers -- South Africa , Automobile industry and trade , Internet marketing , Consumer behavior , Customer services , Consumer satisfaction
- Description: This thesis aims to provide a better understanding of the ways in which the Internet supports the consumer decision process of potential customers in an online car retail environment. The thesis is mainly focused on how this can be done in South Africa. A case study approach was adopted in investigating the case of McCarthy Call-a-Car. Interviews were carried out with McCarthy Call-a-Car employees and documents and the Call-a-Car website, were analysed. It was revealed that Call-a-Car focuses on using the Internet to support customers in the pre-purchase phase only. The purchase and post-purchase phases are carried out offline at its dealership network and Club McCarthy respectively. The findings showed that Call-a-Car views the Internet as a marketing tool that provides convenience to customers searching for product information in the pre-purchase phase. The interviews revealed that due to Call-a-Car's strategy, as well as practical problems of selling online, the customer will still have to visit a dealership to conclude a purchase and for post-purchase support. From this research it appears that there are three main issues arising out of Call-a-Car's usage of the Internet in the customer buying process: firstly, the research revealed that instead of cutting out the middle-man, the Internet has created new types of intermediaries called "cybermediaries" and that Call-a-Car is one such intermediary. Secondly, it was revealed that trust is crucial in the online environment and that Call-a-Car builds trust through branding. Thirdly, the Internet has not affected prices online, despite theoretical estimations that the Internet would induce lower prices. The main recommendations for future research are empirical studies to investigate if the cybermediary model is unique to the car industry and whether this business model could be applied to other look and feel industries such as real estate. Future studies could also investigate the mechanics of trust-building and brand-building in the online environment and finally, studies from the customer perspective considering what Internet tools the customer would like to see online to support them during their buying decision process.
- Full Text:
- Date Issued: 2006
- Authors: Limbada, Suhayl
- Date: 2006
- Subjects: McCarthy Call-a Car , Automobile dealers -- South Africa , Automobile industry and trade , Internet marketing , Consumer behavior , Customer services , Consumer satisfaction
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1171 , http://hdl.handle.net/10962/d1002787 , McCarthy Call-a Car , Automobile dealers -- South Africa , Automobile industry and trade , Internet marketing , Consumer behavior , Customer services , Consumer satisfaction
- Description: This thesis aims to provide a better understanding of the ways in which the Internet supports the consumer decision process of potential customers in an online car retail environment. The thesis is mainly focused on how this can be done in South Africa. A case study approach was adopted in investigating the case of McCarthy Call-a-Car. Interviews were carried out with McCarthy Call-a-Car employees and documents and the Call-a-Car website, were analysed. It was revealed that Call-a-Car focuses on using the Internet to support customers in the pre-purchase phase only. The purchase and post-purchase phases are carried out offline at its dealership network and Club McCarthy respectively. The findings showed that Call-a-Car views the Internet as a marketing tool that provides convenience to customers searching for product information in the pre-purchase phase. The interviews revealed that due to Call-a-Car's strategy, as well as practical problems of selling online, the customer will still have to visit a dealership to conclude a purchase and for post-purchase support. From this research it appears that there are three main issues arising out of Call-a-Car's usage of the Internet in the customer buying process: firstly, the research revealed that instead of cutting out the middle-man, the Internet has created new types of intermediaries called "cybermediaries" and that Call-a-Car is one such intermediary. Secondly, it was revealed that trust is crucial in the online environment and that Call-a-Car builds trust through branding. Thirdly, the Internet has not affected prices online, despite theoretical estimations that the Internet would induce lower prices. The main recommendations for future research are empirical studies to investigate if the cybermediary model is unique to the car industry and whether this business model could be applied to other look and feel industries such as real estate. Future studies could also investigate the mechanics of trust-building and brand-building in the online environment and finally, studies from the customer perspective considering what Internet tools the customer would like to see online to support them during their buying decision process.
- Full Text:
- Date Issued: 2006
An analysis of the influence exerted by the pharmacist and pharmacy assistant in the purchase decision of health and beauty aid products
- Authors: Suttner, Raymond Sharl
- Date: 1986
- Subjects: Cosmetics -- Marketing , Consumer behavior , Pharmacists -- Information services , Drugstores -- Marketing
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1189 , http://hdl.handle.net/10962/d1004383 , Cosmetics -- Marketing , Consumer behavior , Pharmacists -- Information services , Drugstores -- Marketing
- Description: [Introduction] The 1980s have ushered in an era of extreme competitive pressure for the modern business organisation. In previous times many business organisations have succeeded simply because of the excellence of their products, with little concern or attention being paid to the wants and needs of potential customers. As the business environment has become more competitive, however, the point of focus has changed. There is ample evidence which suggests a correlation between success in business and firms which have adopted a marketing-orientated philosophy of business. The evolution of marketing as a discipline has been hastened in recent times by the need of the firm to survive in the face of increasing competition. This "increasing attention" is occurring because of the realisation that sheer product excellence alone will not necessarily mean that the firm will succeed in establishing a group of satisfied customers in the long term. It is the adoption of the so-called "marketing concept" which provides the opportunity for the firm to develop a competitive edge which will more likely eventuate in success.
- Full Text:
- Date Issued: 1986
- Authors: Suttner, Raymond Sharl
- Date: 1986
- Subjects: Cosmetics -- Marketing , Consumer behavior , Pharmacists -- Information services , Drugstores -- Marketing
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1189 , http://hdl.handle.net/10962/d1004383 , Cosmetics -- Marketing , Consumer behavior , Pharmacists -- Information services , Drugstores -- Marketing
- Description: [Introduction] The 1980s have ushered in an era of extreme competitive pressure for the modern business organisation. In previous times many business organisations have succeeded simply because of the excellence of their products, with little concern or attention being paid to the wants and needs of potential customers. As the business environment has become more competitive, however, the point of focus has changed. There is ample evidence which suggests a correlation between success in business and firms which have adopted a marketing-orientated philosophy of business. The evolution of marketing as a discipline has been hastened in recent times by the need of the firm to survive in the face of increasing competition. This "increasing attention" is occurring because of the realisation that sheer product excellence alone will not necessarily mean that the firm will succeed in establishing a group of satisfied customers in the long term. It is the adoption of the so-called "marketing concept" which provides the opportunity for the firm to develop a competitive edge which will more likely eventuate in success.
- Full Text:
- Date Issued: 1986
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