Factors influencing the selection of environmental inpact services in South Africa

The environmental consulting industry in South Africa is still in a growth phase, andthe dominant service offering is that of Environmental Impact Assessments (EIA).Understanding consumer behaviour in the purchase process of environmentalservices will enable service providers to effectively target and service their desiredmarkets.This research examined factors influencing the selection of EIA Consultants in SouthAfrica, specifically in the pre-purchase phase. This included determining the nature ofthe service offering and the related perceptions of risk as well as the informationsources consulted and criteria used as risk reducing strategies. The research wasconducted by means of a structured written survey, which was completed by 77respondents across South Africa.The research revealed that EIA’s are experience offerings, that is, they are easy toassess after the service has been rendered. It was also determined that the majorfactor contributing to the selection process is the multi-faceted nature of the service,as this can lead to negative reputation-based consequences. One such facet of EIA’sis the length of time required to complete the process. Temporal risk was found to bethe most dominant concern, followed by financial risk, specifically the incurrence ofunforeseen costs. It was established that consumers consult personal non-marketercontrolled information sources as a method of reducing risk; most notably,consultants known to the developers through previous experience. Reliability,represented largely by tangible criteria, and reputation, comprising less tangiblecriteria, were found to be the factors underlying the evaluation of environmentalconsultancies.The research highlighted the need for EIA Consultants to understand the buyingbehaviour of their target market to effectively understand and manage perceivedrisks. Tangible indicators of reliability and reputation that address these risk areasmust be a central theme in any direct marketing strategies developed. Furthermore,continuous improvement of processes and systems is essential such that a healthyreputation, based on sound experience, can be developed and maintained well intothe future.