CHAPTER ONE

INTRODUCTION

1. 1 Background Of The Study

In the older days, purchasing of goods and services was done through the trade by barter system. This system of exchange dates as far back as 6000bc. Introduced by Mesopotamia tribes, bartering was adopted by Phoenicians bartered goods to those located in various other cities and even overseas.

They exchange goods for food, tea, weapons, and species. With the advent of the internet, people can now purchase goods and services without having to meet the vendor. The buying of secondhand products and has been done for centuries (Dammes and Vernoesen 2009) p.270-277.

People all over the world have been able to buy second-hand products for centuries and years older (Van Damme and Vermoesen, 2009).(Elkins, 2015) states that, at present time, the range of second-hand products is wide and some of the most commonly purchased products are Cars, Furniture, instruments just to name a few.

During the last twenty years, there has been a major increase in the demand for second-hand goods. Eriks Development Partner Second Hand wrote on its website that Second-hand shopping has become a natural part of people’s consumption Patterns and that today’s consumers have a sense of trend and are more environmentally aware (Erikshajalpen Second Hand, 2017).

However, due to economic factors with a focus on the recent economic crisis, many western countries such as Spain, France have actively joined the secondhand market (Guiot and Roux, 2010).

In 2002, MINTEL showed in a survey that nearly 28% of UK customers had made a purchase in a charity store (William and Paddock, 2003). In France, sales of second-hand products have increased dramatically during the last two decades (Guiot and Roux, 2010). Germany for instance, the turnover of goods sold on second-hand retail outlets is expected to increase from  €1.902 in 2012 to €2.198 by the end of 2020(Statista n.d).

More also in Germany, the turnover of goods sold in secondhand retail outlets is expected to increase from 1.902 MILLION Euro in 2012 to 2.189 million in 2020 (statistical n.d).    The second form of consumption is a niche form of consumption and there does not correspond to the numb (Crewe and Gregson 2003; Williams and Paddock 2003).

Secondhand goods can be distinguished from new goods because they are perused and pre-owned (Luchs et al. 2011) they are usually less expensive than new products and have some traces of wear and tear (Estelami and Raymundo 2012). Several forms of secondhand consumption exist which range from Car.

Second-hand goods can be distinguished from brand new goods because they are pre-used and they have been pre-owned (Luchs et la, 2011) and they are usually less expensive than brand new products but have some traces of wear and tear (Estelami and Raymondo 2012).  Several forms of second-hand consumption exist. These ranges from Cars/boat sales, charity shops, auctions.

Recently, with the rapid development of economy, people’s living standards have been developed and they ask higher requirements on subsidiary products meanwhile the demand for Cars is increasing and the market is expanding which ignite the upgrading of car output. According to the statistical data of China Association of Automobile Manufacturers, the Car sales volume in 2012 is 19.2718 million and 19.3004 million with a 4.63% year-on-year growth amongst which the passenger’s car output is 3.7481 million, 3.8112 million with year-on-year falling of 4.71%. and 5.49%.

According to the trade data of the Japan Customs, it is verified that a constant amount of secondhand vehicles has been exported.

However, many developing countries have been setting trade barriers on secondhand goods. Most countries, in particular Asian countries, have barriers to secondhand

goods. Most countries, in particular Asian countries, ban the import of secondhand vehicles.

Before making a purchase, people/consumers go through a decision-making process and emerge with motives for purchasing the product. According to D. J Duran, motives are those influences or Considerations which provide the consumer with the impulse to buy, induce action or determine choice in the purchase of goods and service.

Purchasing on the other hand is defined as to act of obtaining one’s needs through the means of buying. purchase is also defined as the process of buying materials of the right quality, in the right quantity from the right source delivered to the right place at the right time meanwhile, procurement is the process of obtaining goods or services in any way such as borrowing, leasing and even force or pillage (Lysons Et Al 2006).

Throughout the century, there has been a rapid growth in second-hand product consumption which has become a phenomenon for research by researchers and has raised the question “why do people purchase second-hand products?” (Guiof and Roux, 2010. Page p.355).  Second-hand goods can be defined as goods that are not brand new and have previously been owned by other individuals in the past. In the past, there has been an increase in second-hand consumption amongst consumers (Gulot and Roux 2019) since the “shame and stigma associated with second goods became cool and stylish” (franklin 2011).

The second-hand market becomes more and more mature and the focus of dealers is no longer the quality of the car but the consumers who become the core competence of dealers. The sales volume for second-hand cars is the key for the survival and development of dealers and the core of sales is the analysis on decision making.

In a market that is dominated by consumers, dealers have to first understand the purchasing motives, purchasing behavior, and key marketing strategy and to developed competence as well as take place in the market. The Second-hand market is characterized by the circulating of used goods and no new goods are entering the market or considered attractive.

Consumers in developing countries are more likely to buy secondhand Goods than those in developed countries when we compare their consumption behaviors on Products coming from the same category. As such, the supply of secondhand goods is greater than the demand in developed countries, while the opposite relationship holds in developing Countries. This situation has given rise to international trade of secondhand goods from Developed countries to developing countries.  Page 156).

According to Le quotidian economie, in Cameroon, the demand for second-hand cars is dominated by vehicles from Japan, Europe, and North America. Familiar trademarks imported into the country include among others Toyota, Mercedes, Nissan BWW stationed in economic capital Douala at d’hôtel Le Nile a familiar spot for buyers and users of second-hand cars.

Imported cars through the Douala seaport some of these cars are old as 20years although the 2011 financial law of country permits only the entry of cars of maximum 7 years of age. The dissertation is aimed at knowing the motives for increase purchase of second hand cars in Cameroon.

1.2 Problem Statement:

From personal observation, despite an increase and the laws placed on imported cars, people still prefer to purchase second-hand branded cars. This study, therefore, seeks to investigate consumer motives for purchasing secondhand branded cars.it has been observed that the purchase of secondhand cars has become frequent in our society than that of firsthand cars.  For this reason, it has imposed a negative site because people no longer value the authenticity of getting a firsthand car.

According to M.R Solomon (2009 p.56) in his book titles “Consumer Behavior a European Perspective” it was said that consumers buy products when they want to fulfill a certain need. When fulfilling this need, the consumers follow a buying process.  This process is called a problem-solving process that consumers need to follow.

From his viewpoint, consumers purchase second-hand cars when they feel they must fulfill their needs.  The purpose of purchasing new or second-hand products might not be the same but second-hand product consumption is associated with more risks and can also more impact the consumer’s social status (Scitovsky).

For instance, most of second-hand cars do not have a warranty after-sale service or even any specific price value of the product.  This in turn can live customers feeling uncomfortable when purchasing second-hand products.  Therefore, the market always tries to reduce those risk factors involved with the product.  it might be because of the high involvement of risks or other social products that make the customer worry. While in secondhand car industry, according to Gai and Shen (2009), consumers take some specific factors into consideration that will influence the consumer’s consumption behavior when they purchase a secondhand car.

Data collected in their research shows that the most important factor to consumers is the real condition of secondhand cars, and then comes a price, comprehensiveness of information, and brand. According to Solomon et al. (2013), traditionally, consumers calmly and carefully gather as much information as possible about the product, make comprises amongst each alternative, and then arrive at a satisfactory decision.

However, consumers will also be irrational sometimes for instance consumers may choose to purchase secondhand cars in order to win respect regardless of the functionality of the product. Although in reality, the popularity of purchasing second-hand cars is increasing in all levels of the society; considering the popularity of second-hand cars, the is an insufficient amount of study done particularly on the products.

Without the market, especially consumers behavior it is not possible to make a strategic gain market share. Therefore, it is important to study consumer behavior especially the factors affecting the decision to purchase second-hand products (Cars).

1.3 Purpose Of The Study

The purpose of this qualitative research study is aimed at generating a comprehensive analysis of the reasons why people purchase secondhand branded cars firsthand.

Research Objectives

Main Research Objectives

To document the reasons why consumers, purchase secondhand branded cars.

Specific Objectives

1. To document the perception consumers, have towards the purchase of secondhand cars
2. To document their satisfaction towards purchasing secondhand cars