Pricing Strategies Used by Vegetable Street Vendors in Mthatha and Mqanduli, Eastern Cape, South Africa

O. Jongihlathi; W. Shiba; M. Aliber; S. Zantsi

doi:10.17159/2413-3221/2025/v53n6a21898

Authors

O. Jongihlathi University of Fort Hare https://orcid.org/0009-0001-6671-7675
W. Shiba Agricultural Research Council https://orcid.org/0000-0001-9745-6167
M. Aliber University of Fort hare https://orcid.org/0000-0001-8739-0379
S. Zantsi Agricultural Research Council https://orcid.org/0000-0001-9787-3913

DOI:

https://doi.org/10.17159/2413-3221/2025/v53n6a21898

Keywords:

Pricing strategies, Vegetable street vendors, Social grant payout days

Abstract

Street vending is widely acknowledged as a vital component of the informal economy, providing income opportunities for rural households. Street vendors operate in highly competitive environments and are constantly seeking effective ways to attract and retain customers, including strategies for pricing their products. Therefore, the study’s main objective was to analyse the pricing strategies employed by vegetable street vendors in two Eastern Cape towns of Mthatha and Mqanduli. Using a longitudinal research design and a quantitative approach, 54 vendors were surveyed on both grant payout and post-grant days. Data were collected through semi-structured questionnaires and analysed using descriptive statistics, Z-tests, t-tests, and chi-square tests. Results revealed that during grant days, vendors employed dynamic pricing (33%) and negotiation-based strategies (33%), capitalising on the heightened purchasing power of consumers. Post-Grant showed that the dynamic pricing strategy and negotiation were more utilised, and there was also a shift towards strategies like cost-plus (16.67%) and competitive pricing (13.3%). Significant price differences were found between the two towns, shaped by local market conditions, competition, and consumer behaviour. By understanding pricing dynamics, extension officers can better assist vendors in improving market access, income stability, and resilience against economic fluctuations.

Downloads

Download data is not yet available.

Author Biographies

O. Jongihlathi, University of Fort Hare

Masters Student: University of Fort Hare, Department of Agricultural Economics, Extension, Faculty of Science and Agriculture
W. Shiba, Agricultural Research Council

Agricultural Economist, Economic Analysis Unit, Agricultural Research Council-Central

Office
M. Aliber, University of Fort hare

Professor and Head of Department: Department of Agricultural Economics and Extension, Faculty of Science and Agriculture, University of Fort hare
S. Zantsi, Agricultural Research Council

Agricultural Economist, Economic Analysis Unit, Agricultural Research Council-Central Office

References

ALIBER, M., 2019. Forms of agricultural support and the “culture of dependency and entitlement.” Agrekon., 58(2): 141–153.

ABIDIN, F.Z., ZAINAL, J., ADIBAH, T., SITI, A. & SAPARI, A., 2023. Pricing strategies: Determining the best strategy to create competitive advantage. Int. J. Acad. Res. Business. Soc. Sci., 13(6): 1623–1629.

ABORAMPAH, A.M., 2016. Street vending and competitive advantage: Towards building a theoretical framework. Qual Rep., 21(9): 1651-1673.

AGRIGIS., 2024. AfriGIS Maps. Available from https://www.afrigis.co.za/tag/google-maps/

BALACHANDER, S., GHOSH, B. & STOCK, A., 2010. Why bundle discounts can be a profitable alternative to competing on price promotions. Mark. Sci., 29(4): 624-638.

BERHANU, E., 2021. Street vending: Means of livelihood for the urban poor and challenge for the city administration in Ethiopia. J. Publ. Adm. Finance Law., 10(19): 101-120.

BINEY, I.K., 2019. Incorporating Media in Promoting Lifelong Learning Among Street Vendors in Ghana. In I. Biao (ed.), Learning cities, town planning, and the creation of livelihoods. Botswana: University of Botswana, pp. 167-188.

BOATENG, I.O., 2019. Assessing the effects of pricing strategies on sales performance of street hawkers in Ghana”. Texila Int. J. Manag., 5(2): 1-13.

CHAUKE, P.K., MUNZHELELE, R. & MAIWASHE, A., 2015. Some factors impacting on street sellers’ ability to generate above poverty line income in Vhembe District, South Africa: Logistic regression approach. J. Soc. Sci., 44(1): 8-14.

CHEN, H., WU, O.Q. & YAO, D.D., 2010. On the benefit of inventory‐based dynamic pricing strategies. Prod. Oper. Manag., 19(3): 249-260.

CHODOTA, N.O., MASUI, L. & JOTTA, S., 2024. The influence of competitive pricing strategy on business performance among furniture fabricators in Nyamagana District, Tanzania. Glob Sci Acad Res J Econ Buss, Manag., 3(11): 57-63.

CLEAVE, P., 2023. Smart survey. Available from https://www.smartsurvey.co.uk/blog/structured-or-semi-structured-questionnaire

DINER, J., 2022. Product marketing alliance. Available from https://www.productmarketingalliance.com/product-bundling-strategy-pros-and-cons/

EDGAR, T.W. & MANZ, D.O., 2017. Exploratory Study. In T.W. Edgar & D.O. Manz (eds.), Research methods for cybersecurity. Syngress, pp. 95-130.

EKOBI, G. & TANGA, P., 2024. Challenges of street food vending in South Africa: The case of Mahikeng Local Municipality. Afri. J. Public Administ. Environm. Stud., 3(1): 5-26.

FANG, Y., JIANG, Y. & HAN, X., 2018. Bundle pricing decisions for fresh products with quality deterioration. J. Food Qual., 2018(1): 1595807.

FORKUOR, J.B., AKUOKO, K.O. & YEBOAH, E.H., 2017. Negotiation and management strategies of street vendors in developing countries: A narrative review. Sage Open., 7(1): 2158244017691563.

FORMAN, H. & HUNT, J., 2005. Managing the influence of internal and external determinants on international industrial pricing strategies. Ind. Mark. Manag., 34(2): 133-146.

GAMIELDIEN, F. & VAN NIEKERK, L., 2017. Street vending in South Africa: An entrepreneurial occupation. S. Afr. J. Occup. Ther., 47(1): 24-29.

GERPOTT, T.J. & BERENDS, J., 2022. Competitive pricing on online markets: A literature review. J. Rev. Pricing Manag., 21: 6.

GUPTA, V., KHANNA, K. & GUPTA, R.K., 2018. A study on the street food dimensions and its effects on consumer attitude and behavioural intentions. Tourism Review., 73(3): 374-388.

HENRY, E.T., KARIM, N.A., YUSOP, A.I. & PIAW, L.L.T., 2023. Bundling Pricing Model. Malaysia J. Invent. Innov., 2(4): 38-42.

HLENGWA, S., 2016. Street vending and the use of Urban Public Spaces in Tongaat Central Business District, KwaZulu Natal. Master’s dissertation, University of KwaZulu Natal.

IGUDIA, E.O., 2020. Exploring the theories, determinants and policy options of street vending: A demand-side approach. Urban Studies., 57(1): 56-74.

IMATHIU, S., 2017. Street vended foods: Potential for improving food and nutrition security or a risk factor for foodborne diseases in developing countries. Curr. Res. Nutr. Food Sci., 5(2): 55-65.

KING SABATA DALINDYEBO MUNICIPALITY., 2020. King Sabata Dalindyebo Municipality. Available from https://ksd.gov.za/about/

KOPALLE, P., PAUWELS, K. & AKELLA, L.Y., 2023. Dynamic pricing: Definition, implications for managers, and future research directions. J. Retail., 99(4): 580-593.

LYNGWA, A. & SAHOO, B. K., 2022. COVID-19 and street vending in tribal areas: A qualitative analysis from ground zero—Aizawl, Mizoram, Northeast India. J. Asian Afr. Stud., 59(5): 1623-1640.

MAJKA, M., 2024. Research Gate. Available from https://www.researchgate.net/publication/386049779_Cost-Plus_Pricing_Simple_Strategy_or_Missed_Opportunity

MARTINS, P., RODRIGUES, P., RODRIGUES, P., BARROS, T., DUARTE, N., DONG, R. K., LIAO, Y., COMITE,U. & YUE, X., 2021. Preference between individual products and bundles: Effects of complementary, price, and discount level in Portugal. J. Risk Financ. Manag., 14(5).

McKenna, A., 2025. Britannica. Available from https://www.britannica.com/place/Eastern-Cape-province-South-Africa

MOHAMMED, A.S. & SHEHASEN, M.Z., 2020. Street food consumption and associated health risk. Int. J. Res. Stud. Agric. Sci., 6(7): 8-18.

MWITO, R.M., 2024. Influence of pricing strategies on growth of small and medium enterprises in Imenti North Sub-County, Kenya. Available from http://41.89.31.5:8080/xmlui/handle/123456789/1815

NDABA, N.P., REDDY, K. & OGUNSANYA, O., 2024. Challenges facing street vendors in Durban and the role of the law: A means to empowering women. Afr. J. Inter-Multidiscip. Sud., 6(1): 1-15.

NIKOLOPOULOU, K., 2022. Scribbr. Available from https://www.scribbr.com/methodology/snowball-sampling/#:~:text=Also%20known%20as%20chain%20sampling,sample%2C%20or%20a%20saturation%20point.

POKU, A.A., SARKODIE, K., MENSAH, J., SAM-MENSAH, R., QUAYSON, J.J. & POKU, K., 2024. Livelihood resilience among street hawkers during Covid-19 lockdown in the Awutu Senya East Municipality, Ghana. J. Human. Appl. Soc. Sci., 7(3): 220–235.

PROIETTI, I., MANTOVANI, A. & FRAZZOLI, C., 2014. Identification and management of toxicological hazards of street foods in developing countries. Food Chem. Toxicol., 63: 143-152.

RAHAYU, M.J., BUCHORI, I., WIDJAJANTI, R. & RINI, E.F., 2019. Street vendors stabilisation location’s existence at settlement areas in Surakarta. Proceedings of the 18th International Conference on Sustainable Environment and Architecture (SENVAR), pp. 159- 163.

REFAIE, N. & MISHRA, S., 2021. Economic Hardship. In T.K. Shackelford, V.A. Weekes-Shackelford (eds.), Encyclopedia of Evolutionary Psychological Science. Cham: Springer, pp. 2263-2266.

RUNTING, G., 2023. On the importance of pricing strategy in marketing strategy. Front. Bus. Econo. Manage., 10(1): 158-161.

SAMMUT‐BONNICI, T. & CHANNON, D., 2015. Pricing strategy. In T.S. Bonnici & J. McGee (eds.), Wiley Encyclopedia of Management. John Wiley & Sons, pp. 1-3.

SCHOLZ, M. & KULKO, D.R., 2022. Dynamic pricing of perishable food as a sustainable business mode. Br Food J., 125(5): 1609-1621.

SHARMA, D., 2025. Cost-plus pricing: Advantages, disadvantages and example. Available from https://www.indeed.com/career-advice/career-development/cost-plus-pricing

SHUKLA, M., 2024. Delighted by Qualtrics. Available from https://delighted.com/blog/open-ended-questions#:~:text=Open%2Dended%20questions%20begin%20with,in%20a%20free%20response%20format.

Smith, D., 2021. Forbes. Available from https://www.forbes.com/councils/forbesbusinesscouncil/2021/10/06/understanding-haggling-vs-negotiating-in-business/

STATISTICS SOUTH AFRICA., 2019. Gender Series Volume VII: Informal Economy, Pretoria: Stats SA Library Cataloguing-in-Publication.

THOMAS, L., 2020. Simple Random Sampling, Scribbr. Available from https://www.scribbr.com/methodology/simple-random-sampling/

TORIRO, P. & CHIRISA, I., 2021. Vendors on wheels! The changing terrain and manifestation of informality in Harare under Covid-19 pandemic restrictions. Cogent Soc. Sci., 7(1): 1939230

VALLE, E.G., 2023. The Borgen project. Available from https://borgenproject.org/how-street-food-vendors-are-important-in-the-fight-against-poverty/

VON MALTITZ, L., DAVIS, K., SUVEDI, M., CHANZA, C., AGWU, E., SASIDHAR, P.V.K., UKAMAKA, M.D., LIVERPOOL-TASIE, L.S., ANUGWA, I.Q. & TCHUWA, F., 2023. Strengthening agricultural extension training: Process skills and competency gaps in undergraduate agricultural extension curriculum in South Africa. Partnerships for Innovative Research in Africa (PIRA) Research Report. East Lansing, MI: Alliance for African Partnership, Michigan State University.

WAMSLER, J., NATTER, M. & ALGESHEIMER, R., 2022. Transitioning to dynamic prices: Should pricing authority remain with the company or be delegated to the service employees instead?. J. Bus. Res., 139: 1476-1488.

WEGERIF, M., 2023. Street traders’ contribution to food security: lessons from fresh produce traders’ experiences in South Africa during Covid-19. Food Secur., 16: 115-135.

ZANTSI, S., CLOETE, K. & MÖHRING, A., 2021. Productivity gap between commercial farmers and potential emerging farmers in South Africa: Implications for land redistribution policy. Appl. Anim. Husb. Rural Dev., 14(1): 22-30.

ZONDI, L.P. & MAGWAZA, N., 2023. Women taking agency through feminized migration patterns and remittances: Socio-economic experiences of migrant street vendors, Pietermaritzburg, Kwazulu-Natal-South Africa. Adv. Anthropol., 13(1): 29-40.