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Perceived Quality and Brand Loyalty in Car Industry

Author: YunJing
Tutor: QiaoJun
School: Nanjing University of Finance and Economics
Course: Business management
Keywords: perceived quality customer loyalty auto industry
Type: Master's thesis
Year: 2013
Downloads: 5
Quote: 0
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Early in1980s,China’s auto market is gradually opening up,and a large mumberof foreign car brands come in China,the domestic brands also grow and developmentwith the time going by.Although Chian has a large automobile production andsales,but China is not strong enough in automobile production.We can’t simplymeasure the value of the car brands in the mind of cosumers realying on the salesindicator decisions,this article intends to know another authors’ opinions aboutperceived quality in auto industry and compare the different brands’ perceived qualityscores between foreign and domestic brands.This helps us to explore the relationshipbetween perceived quality of customer and the customer loyalty and build theevaluation of automotive brand perception index system.By building models andquantitative indicators,we can find the gap between domestic car and foreign carbrands.The article selects price as the standard to choose car brands of the samegrade(2011Volkswagen Passat1.8TSI DSG Imperial statue edition,2012VolkswagenGolf2.0TSI GTI and domestic brands like the2010SAIC Rowew9502.4LLuxury,the2010SAIC MG71.8T automatically extended deluxe editon) as theresearch sample object.By combining the relevant research literature,the article findconsumers perceived quality effecting factors.By interviewing survey of China’sautomotive industry experts,the author build the perceived quality scale evaluation ofChina’s automotive brands in base of the literature review and empirical results andvertify the car brand perception of the quality of the feasibility of the model.Theauthor using SPSS17.0to find the different dimensions of perceivedquality-tangibles,reliability,responsiveness,assurance,empathy and customer loyalty inthe correlation coefficient is0.789、0.715、0.654、0.701、0.796,showing a strongpositive correlation. We also find empathy of the automotive industry derived bymultiple regression analysis have the biggest effect on customer loyalty and theresponsiveness is the least.In addition,the author visit a large number of4S stores anddo the consumer survey to get the scores,the results show that no matter domestic orforeign brands,perceived quality dimensions of empathy scores are lowest,indicatingthat most consumers are not satisfied of it.Through the analysis of a comparativestudy of Volkswagen Passat,Volkswagen Golf,SAIC Roewe,SAIC MG brand,we can see that foreign auto brand overall consumer perception of higher quality thandomestic brands,and domestic brands still lag behind in reliable,empathy and so on.In this paper, we want to give some suggestions due to the current developmentof China’s own auto brand to enhance local brand image and costomer loyalty, thisstudy provides a theoretical basis for the development of China’s domestic car brand.

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