Project sample
Project sample
Abstract
In the present era, most brands are putting greater their emphasis on consumers' quality of life because
those consumers express their social position or across the firm and class products. The focused of the
current study is that how examine the impact of brand image and brand loyalty of customers minds that it
relates the brand name, effect of procedure and brand quality on car consumer brand loyalty products,
brand loyalty is then a big factor to examine on the customer buying decision specially in Karachi context
for this investigation on the effects of the variables i.e., product quality, brand image, brand loyalty,
customer satisfaction regarded to be independent variables and customer buying decision has been
regarded as dependent variable. The main focus of the study is that it demonstrates the study’s analysis of
the relationship between dependent and independent factors as correlational. This investigation was
carried out using a survey design and a straightforward random sampling strategy. After accounting for
omissions and errors, 207 responses were obtained from 300 surveys which were delivered at random to
car owners in Karachi.
Keywords: Brand Image, Brand loyalty, Product Quality, Customer Satisfaction, Automobile, Perceived
quality, Customer Buying Decision
INTRODUCTION
We live in a time when competition is rampant in today's world, whether it is between businesses or
between consumers' minds while making purchases. That is most important for the businesses to
understand that how customers choose the products they buy. Consumers typically choose a product
based on their awareness but the business fosters in the customer's mind a love of its brand and goods
ultimately the way company's most valuable intangible asset is its brands. Anything that is finished in the
industry can be used as a product, but for a brand were customers are the primary focus positioning on
their minds. There is a possibility for a product of automobile users to be unoriginal, however a product
cannot; there is chance for it to become an outmoded overtime, but a brand remains relevant (Quiston,
2004). In order to Muhammad Alamgir et al., (2010), a brand symbolic additional value is aids on
consumers in choosing the best product to meet their demands. Customers are more commitment to a
brand by continually using that brand (Bian and Yan, 2022). The most important part that led to a
customer of buying decisions the auto brands inspired brand loyalty (Eklund, 2022). Greater brands
recognition results in more people buying this product (Janssen et al., 2022).
Business competition between organizations in both home and foreign markets is becoming more
difficult in the age of globalization (Teece, 2022). Companies that seek to grow their competitive
advantage must be able to produce high-quality goods and services (Simanjuntak, 2021). It is difficult to
thrive in this competition and develop into a company that actually shines in the tough world of business.
Good management is necessary, but it's also necessary to make strategic decisions with precision and for
the benefit of the organization as a whole. The corporation is currently up against competition that
1
Scholar, Benazir Bhutto Shaheed University Lyari, Karachi, Pakistan. Email: [email protected]
2
Scholar, Benazir Bhutto Shaheed University Lyari, Karachi, Pakistan. Email: [email protected]
3
Scholar, Benazir Bhutto Shaheed University Lyari, Karachi, Pakistan. Email. [email protected]
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extends beyond the functional qualities of the product, such usability. However, it has been linked to
companies that can cultivate brand loyalty and a certain image in their audience (Rajagopal et al., 2022).
The study’s main objective is to examine the brand loyalty alternatively effects on the car
industry and customers buying decisions in the main goal of the study. According to Wong Fong, and
Yayah Sidek (2008), brand image and brand loyalty is the intentional or unintentional repurchases of a
specific product for actually customers are buying it. On the other hand, customers are findings more
components and contribute to brand positioning and brand loyalty is the other goal of this study with the
investigation to describe the name recognition, brand image, brand loyalty, brand awareness, and product
quality of the automobile industry that all variables are included here.
The most important part of this study examining between the relationship brand loyalty, brand
image on customer satisfaction and their purchase intent; therefore, there must look as a brand to be a
buyer intended to acquires, and then it will remember entire to make this brand consistency. A brand loyal
buyer might not to be remembering the entire process but instead; it merely brings to mind the previous
product and purchases it (Zhao et al., 2022). In which process such as searching for information,
recognizing problems, and evaluating alternatives etc. for making purchases of products. There have been
numerous studies on brand loyalty, and in this study, we expand on some of its dimensions. For instance,
we examined a variety of variables to examine brand loyalty and their impact on consumers' purchase
intentions in the auto sector.
The goal of this study is to determine how brand loyalty and brand image affect automotive
consumers in Karachi. The research gap is based upon the review of article that “The influence brand
loyalty and brand image on consumer buying intension: Evidence of automobile industry of Pakistan”,
which was identified the brand name, brand awareness and buying decision benefits, after winning the
customer’s brand loyalty, there are many advantages that can be significant and realized. The challenges
are to determine the characteristics that aid in building a product’s brand loyalty and brand Image on
consumers mind set.
Research Objectives
The goal of this study is to create a model to assess how Pakistani vehicles buyers weigh factors including
product quality, brand image, and brand loyalty while making selections. Following are the theoretical
goals of this study.
1. To introduce a model for the purchase decisions of Pakistan automobile customers.
2. To find the relationships between product quality, brand image, and customer satisfaction related to the
purchase decisions of Pakistan automobile customers.
3. To find and measure some indicators related to product quality, brand image, customer satisfaction and
purchase decisions.
LITERATURE REVIEW
Oliver (1997) highlights that the clients' completion response is satisfaction and it is a resolve that a
product's or service's qualities or the actual good or service offering a pleasurable level of consumption-
related fulfillment, it includes levels of under- or over-fulfillment. According to Vavra (2002), customers
can be satisfied through product performance as seen through corporate or department representatives,
further, it can also be satisfied through the overall products and good services, such as the multiple
transactions between a business and its consumers, including pre and purchase relationships, sales
presentations, product delivery, repair services, post-sales service, and complaint management.
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According to Cochran (2003), customer happiness is the primary objective of any organization.
Jiradilok et al. (2014) discovered that customers are satisfied with accurate prices and realistic website
information and this positively relates to the buying intention of the customers.
Moreover, customer value and customer pleasure have a connection that controls service
innovation, claimed by Sukwadi (2017). Customers get satisfied when they use any organization’s service
or purchase something, compare it to what they expected, and are satisfied (Oliver, 1993). Satisfaction
has two types’ Cumulative satisfaction and transaction-specific satisfaction; these are the two types (Yi,
1990). How the transaction-specific strategy expresses customer satisfactions depends on the consumers
emotional response to the most recent transaction they had at that exact time (Oliver-1993) contrarily, the
cumulative approach sees customer satisfaction as the sum of all interactions and experiences leading to
the client overall enjoyments with the company. Furthermore, the creator of this study defines customer
satisfaction as the sum of all customer satisfaction. Customers continue to have a relationship with dealers
after making procurement. For example, a customer of a Mercedes-Benz dealers may not be satisfied with
the transaction-specific service experience but will be satisfied with the dealer service overall long run
(Bitner and Hubbert, 1994). Based on the result the overall rating of customer satisfaction with dealers is
based on several positive interactions with their customer service rather than being a single judgment.
The theories of equity and needs contend that customer satisfaction is encouraged by the quality
of the services provided (Au, Ngai, and Cheng 2002). Researchers from various industries give empirical
data providing the quality of their services findings demonstrating service quality has a major impact on
customer satisfaction (Arasli, Katircioglu, and Mehtap-Smadi ,2005, Wilson et al. ,2012, Kandampully,
1998). Additionally, studies by guiry (1992) and Johnston (1995) as well as assertions made by
Dabholkar, shepherd, and Thorpe (2000) diligent, cordial, and helpful workers improve consumer and
service quality perceptions satisfaction. This suggests that workers with these service-oriented traits can
be used to enhance client pleasure through quality service facilities in the context of quality that is
customer-focused.
Due to its potential to both attract and retain new customers, customer happiness is one of the
marketing literature's most studied constructs (Deyalage and Kulathunga, 2019), and it is crucial in a
competitive setting (Tandon, Kiran, and Sah, 2017; Trans, 2020). According to Vasi, Kilibarda, and
Kaurin (2019), customer satisfaction is described as a sentiment that manifests in the findings of a
purchase assessment that compares real awareness and expectation. This can also be a source of either
satisfaction or dissatisfaction. Customer satisfaction has been viewed in the experience context as a
customer's cumulative experience based on all preceding experiences with a good or service that resulted
from a post hoc analysis of intense experience (Pandey et al., 2020). Customer gratification also relieves
businesses and organizations in boosting profits and ahead a competitive edge. Previous research (Rather
et al., 2019) measures it using four items, with the sample item being "the overall reply which I become
from the company is favorable."
According to Juran and Gryna (1970), “fitness for a drive,” “conformances to terms,” and
“uniformly around a correct aim,” respectively, are unambiguous examples of quality, throughout the
previous few years (Deming, 1986). Mr. Joseph Juran provides two annotations in the "Quality
Handbook" that he believes it is essential to managing quality:
1) The term "quality" refers to a product's characteristics that satisfy the needs of the consumer. However,
delivering better quality requires an investment, which also increases expenses. In this sense, better
quality could lead to high costs.
2) "Freedom from the faults" refers to the absence of errors that demand redoing the work or result based
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Further, customer unhappiness directly results in a negative relation to the repurchase intentions
of consumers (Brown and Gulycz, 2001). Repurchase intent is the propensity to decide to purchase a
specific well in the future (Fornell, 1992; Boonlertvanich, 2001)
METHODOLOGY
The purpose of this study is to examine the relationship between customer buy decisions in the
automobile industry. The review of the previous study concluded that have used quantitative methods on
a given topic, therefore current researchers quantitative techniques.
Research Design
The study acquired the survey design this design is inspected as relevant for studying car users’ and
customers’ buying decisions with the nature and population of the automobile industry in Karachi. The
acquisition of the survey methods in this study is informed too by its variability in using a sample drawn
to represent the element within the automobile industry. The research design is based upon a quantitative
approach that is done by using questionnaires which is essential to collect primary data. This is an
appropriate measure it is an effective way to conduct the research in a short time frame.
Data Collection
The data collection tool investigates the facts and figure by using different ways. The research is purely
being based on quantitative data. The research is based on primary data and researcher conducted the
research online and physical distributed it to the car users of Karachi. As we are students of BBA, so our
many friends owned their car so they helped me in data collection. Though it was not possible to
assemble the facts and figures without the collaboration of my friends and my teachers, they helped me
much more during this research journey.
Research Model
Using the information provided above as a foundation, this study created the research framework in the
areas of product quality (PQ), brand image (BI), brand loyalty (BL) and customer satisfaction (CS) as
independent variables. In addition, product quality, brand image, brand loyalty and customer satisfaction
will have consequences on the customer buying decisions (BD), as a resilient factor of Pakistan
automobile customers. This theoretical framework provides an overview of the research model.
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Hypotheses
To put the research premise to the test, data analysis was done, using Structural Equation Modeling
(SEM), with the consideration that it has the ability to combine measurement models and structural
models.
The hypothesis is as follows, based on the research topic:
H1 = There is a significant effect of product quality on Customer buying decision.
H2 = There is a significant effect of Brand Image on Customer buying decision.
H3 = There is a significant effect of Brand loyalty on Customer buying decision.
H4 = There is a significant effect of Customer Satisfaction on the Customer buying decisions.
Instrument Selection
Our primary data, which is based on surveys or questionnaires, is used in our study project. All questions
and their items were adapted from the Brunello (2015).
Variables
A consumer buying decision is the dependent variable in our study, while PQ, BI, BL, and CS are the
independent variables.
Plan of Analysis
Despite the fact that this is a quantitative approach, the data will be used to gather information, and the
results will be analyzed using statistical analysis. Data analysis includes the following types: data
correlation, data regression, and data reliability analysis. The "Statistical Packages for Social Sciences
(SPSS-26)" analytical tool will be used to analyze the data collected in order to make the research more
empirical.
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Table 1
Gender of Respondents
Gender
Frequency Percent Valid Cumulative
Percent Percent
Male 111 53.6 53.6 53.6
Valid Female 96 46.4 46.4 100.0
Total 207 100.0 100.0
Table 1 depicts the gender distribution of respondents which reveals the male constitutes 53.6%
of respondents and 46.4% are Female. According to the survey, there is a greater part of male than
women drive cars in Pakistan in which is particularly Karachi, which is why a large percentage of
respondents were male. All respondents had cars, and the sample was chosen by randomly without any
bias.
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Table 2
Age of Respondents
Age
Frequency Percent Valid Cumulative
Percent Percent
18-20 41 19.8 19.8 19.8
21-25 103 49.8 49.8 69.6
Valid 26-30 34 16.4 16.4 86.0
Above 30 29 14.0 14.0 100.0
Total 207 100.0 100.0
Table 2 above displays the respondents’ age characteristics. out of the 207 respondents overall the
first age grouped (18-20 years) accounted 19.8% and next (21-25 years) age grouped accumulated is
49.8%, and (26-30 years) age grouped accounted were 16.4% and above 30 years age group respondents
were 14.0% and furthermore pie chart shows it.
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Table 3
Education of Respondents
Education
Frequency Percent Valid Cumulative
Percent Percent
Matric 9 4.3 4.3 4.3
Intermediate 11 5.3 5.3 9.7
Undergraduate 76 36.7 36.7 46.4
Valid
Graduate 90 43.5 43.5 89.9
Post-Graduation 21 10.1 10.1 100.0
Total 207 100.0 100.0
Above show the table 3, is respondents of education in which is 4.3% of matric and 5.3% is
intermediate in between 36.7% is undergraduate and the study of more over respondents of 43.5% from
graduate and lastly 10.1% from post graduated.
Table 4
Income of Respondents
Income
Frequency Percent Valid Cumulative
Percent Percent
41000-50000 102 49.3 49.3 49.3
51000-60000 36 17.4 17.4 66.7
Valid 61000-70000 22 10.6 10.6 77.3
71000 and Above 47 22.7 22.7 100.0
Total 207 100.0 100.0
In above the table shows the income level. Data shows that 49.3% respondents of annual income
were below 41000-50000 and 17.4% the respondent’s yearly salary ranges from 51000-60000 and 10.6%
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respondents’ annual income is between 61000-70000 and 22.7% respondents’ will incomes above 71000.
Every respondent has a different car, according to their own personal income levels.
Table 5
Profession of Respondents
Profession
Frequency Percent Valid Cumulative
(f) (%) Percent(vp) Percent(cp)
Free lancing 36 17.4 17.4 17.4
Marketing 16 7.7 7.7 25.1
Teaching 30 14.5 14.5 39.6
Valid
Medical field 33 15.9 15.9 55.6
Others 92 44.4 44.4 100.0
Total 207 100.0 100.0
Table 5 above displays the occupation of each of the 207 respondents. The first one is Free
lancing which is 17.4% and 7.7% are marketing, 14.5% are Teaching and the medical field in which is
approximately 15.9%, and there are the largest response of Other profession it could be anything which is
44.4%, the chart are explain more.
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Table 6
Status of Respondents
Status
Frequency Percent Valid Cumulative
Percent Percent
Single 159 76.8 76.8 76.8
Valid Married 48 23.2 23.2 100.0
Total 207 100.0 100.0
This table 6 shows the status respondents of research. Singles constitutes 76.8% and married
respondents are lower than singles in which 23.2%.
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Table 7
Automobile Sectors of Respondents
Sector
Frequency Percent Valid Cumulative
Percent Percent
Hyundai 26 12.6 12.6 12.6
MG 10 4.8 4.8 17.4
Toyota Indus 68 32.9 32.9 50.2
Yamaha Motor
13 6.3 6.3 56.5
Paki
Atlas Honda 62 30.0 30.0 86.5
Valid Changan 3 1.4 1.4 87.9
DSFK 1 .5 .5 88.4
Haval 1 .5 .5 88.9
Cherry 2 1.0 1.0 89.9
Proton 1 .5 .5 90.3
Others 20 9.7 9.7 100.0
Total 207 100.0 100.0
The table 7, shows the ratio of brand of automobile sector responses which is 12.6% of Hyundai
and 4.8% are MG and there is the largest respondents counts on Toyota Indus which is 32.9% and 6.3%
are Yamaha Motor Paki, 30.0% are Atlas Honda and 1.4% are Changan, there is lower respondents of
.5% are DSFK also .5% are Haval, and 1.0% respondents from Cherry and .5% are proton and 9.7% are
other automobile sectors.
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Table 8
Frequencies
Statistics
Gender Age Education Income Profession Status Sector
Valid 207 207 207 207 207 207 207
N
Missing 0 0 0 0 0 0 0
Mean 1.46 2.25 3.50 2.07 3.62 1.23 4.31
Median 1.00 2.00 4.00 2.00 4.00 1.00 3.00
Mode 1 2 4 1 5 1 3
Std. Deviation .500 .931 .908 1.229 1.527 .423 2.686
Minimum 1 1 1 1 1 1 1
Maximum 2 4 5 4 5 2 11
Sum 303 465 724 428 750 255 893
Various instruments are employed for each investigation method which is determined for the
descriptive analysis the Cronbach’s that ought to be higher than .70 for considered the predictable
questionnaire. In this study Cronbach’s alpha results of .780 to consider all the elements that demonstrate
the validity of the questionnaire.
Table 9
Factor Analysis and Reliability
Reliability Statistics
Cronbach's N of Items
Alpha
.780 5
Item Statistics
Mean Std. N
Deviation
CS 3.7826 .79659 207
BL 3.0473 .49333 207
BI 3.5012 .80067 207
BD 3.4428 .81175 207
PQ 3.6401 .64526 207
Scale Statistics
Mean Variance Std. N of Items
Deviation
17.4141 6.902 2.62726 5
We generated a correlation matrix using all the variables are used in hypothesis testing and
determine all the mean and standard deviations for each one and here is the reliability and correlations
between all the brands that are used in the analysis are displayed in the table.
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Table 10
Correlation Analysis
Correlations
BD CS BL BI PQ
BD 1.000 .288 .315 .398 .409
CS .288 1.000 .427 .558 .394
Pearson Correlation BL .315 .427 1.000 .541 .432
BI .398 .558 .541 1.000 .565
PQ .409 .394 .432 .565 1.000
BD . .000 .000 .000 .000
CS .000 . .000 .000 .000
Sig. (1-tailed) BL .000 .000 . .000 .000
BI .000 .000 .000 . .000
PQ .000 .000 .000 .000 .
BD 207 207 207 207 207
CS 207 207 207 207 207
N BL 207 207 207 207 207
BI 207 207 207 207 207
PQ 207 207 207 207 207
The result of Pearson correlations displays significant values, all of which are significant at a 1%
level. All the variables chosen for this study have a moderately positive correlation, therefore we may
move forward with further regression analysis to discover the purely coincidental relationship among the
variables.
Table 11
Model Summary
Adjusted R Std. Error of Durbin-
Model R R Square
Square the Estimate Watson
1 .465a .216 .201 .72574 1.692
a. Predictors: (Constant), PQ, CS, BL, BI
b. Dependent Variable: BD
The value of R-Square which is known to be the coefficient of determination is 21.6% which is
significantly effect of positive variables and our study of research there are two variables of insignificant
on that way the R-Square value is 21.6% and our data collection method considered the 207 responses
that another reason on it.. So, 21.6% of the total variation in product quality, customer satisfaction, brand
loyalty and brand image are explained by the selected independent variables.
Table 12
ANOVA
Sum of
Model df Mean Square F Sig.
Squares
1 Regression 29.347 4 7.337 13.930 .000b
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F-Statistics
Here the F- Statistics are 13.930 its >3.14 so it shows the model fitness and F-Significance is .000 b, that
shows the fitness of model. Using SPSS, we have summarized the regression analysis. Customer
satisfaction, brand loyalty, brand image, product quality is independent variable and buying decision is
dependent variables.
Table 13
Regression Analysis
Descriptive Statistics
Mean Std. N
Deviation
BD 3.4428 .81175 207
CS 3.7826 .79659 207
BL 3.0473 .49333 207
BI 3.5012 .80067 207
PQ 3.6401 .64526 207
Table 14
Coefficient
Standardiz
Unstandardize ed
Correlations
d Coefficients Coefficient
Model t Sig.
s
B Std. Beta Zero- Partial Part
Error order
(Consta 1.02
.369 2.773 .006
nt) 2
CS .053 .078 .052 .673 .502 .288 .047 .042
1
BL .145 .126 .088 1.153 .250 .315 .081 .072
BI .183 .090 .181 2.040 .043 .398 .142 .127
PQ .313 .097 .249 3.231 .001 .409 .222 .201
a. Dependent Variable: BD
The result shows that the result of Brand Image (BI) and Product quality (PQ) are significant on
that way these variables will be accepted and further more variables which is Customer satisfaction (CS)
and Brand loyalty (BL) that shows the insignificant results of 0.502 and 0.250 will be rejected. The beta
of last two variables which is Brand Image (BI) and Product quality (PQ) shows the positive amount of
(BI: .181, PQ: .249) so therefore, it can be seen that the variables exhibits a positive effects while the
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customer satisfaction(CS) and brand loyalty(BL) exhibits a negative effect. There is positive effects show
the regression table the results of .811 means that the average output 81.1% that considered the
contribution in customer buying decision (BD).
In this study of researchers also shows the relationship of the two variables in which brand Image
(BI), Product quality (PQ), Customer satisfaction (CS) and brand loyalty (BL) is independent variable and
the Buying Decision (BD) is the dependent variables. The table shows the following results.
Table 15
Hypotheses Summary
Hypothesis Hypothesis Statements Accepted Rejected
H1 Customer Satisfaction Impact on Customer
Buying Decision.
H2 Brand Image Impact on Customer Buying
Decision.
H3 Brand loyalty Impact on Customer Buying
Decision.
H4 Product Quality Impact on Customer Buying
Decision.
Table 16
Residual Statistics
Minimu Maximu Mean Std. N
m m Deviation
Predicted Value 2.1771 4.3150 3.4428 .37744 207
Residual -2.04273 1.68723 .00000 .71866 207
Std. Predicted Value -3.353 2.311 .000 1.000 207
Std. Residual -2.815 2.325 .000 .990 207
a. Dependent Variable: BD
It’s a method to determine the relationship between dependent and independent value. It’s an
observed value of DV to predict the difference.
CONCLUSION
The study concludes by demonstrating the impact of various variables on Buying Decision (BD) to the
consumers. Upon investigation, we have found that given two of its hypothesis have been confirmed, the
initial theory which was “Brand Image impact on Customer Buying Decision” was accepted the research
it means that customer mind position was maintained and develop to existing brand and once it should
occur so the customer will being loyal to the brand and products as well. The second hypothesis which
was “Product Quality Impact on Customer Buying Decision” is also acknowledge following research on
it or after data has been pasted on it. Regression indicates a favorable effect, and since it is significant,
and also indicates a favorable of the variables. There are two more variables which is not accepted in the
research hypothesis that third hypothesis “Customer Satisfaction Impact on Customer Buying Decision”
was rejected for certain reasons hence proving that customer satisfaction level are not pretending to
purchase a relationship for attract a brand as well. The fourth hypothesis “Brand loyalty Impact on
Customer Buying Decision” is also rejected after the research has been made of data and it shows the
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insignificance of relation of the variables. After using statistical techniques, this investigation yields a
substantial results it means understanding and after that analyzing the results to using trustworthy
regression to verify its dependability on that we put data on SPSS and get results.
In this research we investigate the various explanations after that the primary objective was to
examine the impact of brand image (BI) and Product quality (PQ) among consumers in the automotive
industry. We choose the automotive industry in several reasons. The first is that car brands have a lot of
brand enrolments. Sectors, brand Image, brand loyalty, Customer satisfaction these all factors are largely
considered the primary reason for this in such a field is the quality which is most important for every
brands and products. The fact that autos are relatively specialized goods means that a person will only buy
one or two throughout their life time. In this study of automobile specially understanding and controlling
brand loyalty is crucial for the durable goods sector, such as the automotive industry that’s the products of
large margin has a long placements cycle for the consumers on the one hand and on the other. In a study
of research, it is quite difficult for the industry to guarantee that customers will buy the same items after
some time has passed or when a new need for the products appears.
Recommendations
Brand image (BI) and product (PQ) are crucial to success.
That is a positive recognition that will also increase consumer acceptability, which will heighten
the new products attraction.
There is need to develop a brand loyalty (BL) and Customer Satisfaction (CS) that can be
distributed more widely.
It is to maintain knowledge of market factors and trends.
There is need to create a global strategy focused on idea gathering.
The other factors that should be taken into accounts is communication for identifying and
gauging, consumer’s loyalty.
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