Report on Determinants of Brand Loyalty

Topics: Automotive industry, General Motors, Volkswagen Group Pages: 14 (4188 words) Published: September 25, 2011
Statistical Inference

Report on Determinants of Brand Loyalty
Of Cars for the Leading local Car Brands

Submitted to: Dr. Abdul Waheed

Submitted By: Anwer Chishti (5695)

May 30th 2011

IQRA University Gulshan Campus

Determinants Of Brand Loyalty Of Cars For The Leading Local Car Brands Abstract
In the present scenario there is the growing need to understand the markets from the perspective of a marketer as well as a researcher. Thinking in the same line, the present study underlines the determinants of brand loyalty that helps to look for a potential target market. The study undertook the current brands in the automobile sector for study, to gain an insight into the minds of its customers. Consistent growth and dedication have made the Pakistan automobile industry one of the largest industries in Pakistan. The Pakistan automobile market is among the largest in Asia. The key players like Toyota, Honda, Suzuki, etc, have been considered as the likely brand bases to get answers from the target customers and the factors affecting their brand preferences. Introduction

In the world trade, Automobile Sector is one of the largest segments. It is the major driver of economic growth and business activities. It puts multiplier impacts on the economy. Day-in, day-out around 200,000 vehicles roll off the world’s assembly lines with car as the dominant segment of the industry. The automobile sector has been registering high growth for the last four or five years due to the country's business friendly policies along with lower tariff rates, persistent growth in GDP, and per capita income. The automotive industry rightly prides itself on being recognized as the “mother of all industries.” In its folds it carries many different kinds of vehicles to provide mobility to people and goods. While they may appear to be simple machines, their design and manufacturing have much deeper roots in all the known technologies. In-depth knowledge and skillful application of mechanical, electrical, electronics, chemical and a host of other technologies culminate in achievement and improvement of the manufacturing base of a country, by focusing on a single product the automobile. This then provides an opportunity to produce a large number of goods and services for consumption of the entire international community. Use of the word “mother” for automotive industry is therefore the most appropriate description to define the nature and importance of the industry. Automotive industry in Pakistan started in 1950 and has gone through different phases1950’s (Private sector). 1960’s (Private sector). 1970’s (Nationalization). 1980’s onward (Privatization & entry of private sector). It is indeed heartening that the mother has once again smiled at Pakistan; fortunately the last 3 years have witnessed phenomenal growth in the industry in terms of technological advancements and production/sales volumes with the local contents rising as high as 90%. The industry is already employing 120,000 people; contributing more than 12 billion rupees to GDP, contributing more than Rs. 30 billion to the national exchequer in terms of duties and taxes, attracted investment worth Rs. 52 billion including a substantial foreign investment. Today the customers have choice to pick from a wide range of products including motorcycles, trucks, buses and cars of premier Japanese and Korean brands at internationally competitive prices, which has only become possible due to local contents and availability of highly productive and inexpensive human resources. In Pakistan the automobile components manufacturing industry consists of mainly units producing original components for assembly under deletion program and units are producing reconditioned and original components for local use. There are more than 800 vendors in the country with a total investment of over eight billion rupees; they are engaged in the manufacturing of original components for the assembly operation...
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