Predicting Brand Loyalty in Automobile Industry

Running head: PREDICTING BRAND LOYALTY IN AUTOMOBILE INDUSTRY
Dissertation
Topic: PREDICTING BRAND LOYALTY IN AUTOMOBILE INDUSTRY,
CONSUMER VALUE AND CONSUMER BRAND IDENTIFICATION IN UK
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PREDICTING BRAND LOYALTY IN AUTOMOBILE INDUSTRY1
Abstract
The whole study is going to highlight the importance of customer valuation and
customer satisfaction and how these two factors are helping companies dealing with
automobiles in UK in predicting brand image. It has been seen that most of the automobile
companies are dealing mainly with the development of high rating and consumers brand
preference is depending on the variables such as types of cars that are being purchased
instead of brands of vehicles that are being purchased. It has been seen that producers are
using brand image for the improvement in the production of cars. . The normal regression
formula is Y= α+β1X1+β2X2+β3X3.......+ βnXn+ C. In this equation Y is the independent
variable and Xi’s are set of independent variables. C is the constant. Now β1 is the coefficient
of X1 and similarly βn is the coefficient of the Xn. VIF is the variance inflation factors. From
the above regression analysis, Y=0.906+0.561X1+0.74X2+0.010X3+C. In the above
equation, X1 is the preference of cars, X2 is the brand preference of the customers and X3 is
the consumer values that are being taken by producers
It has been pointed out that in the UK, the prediction of brand value by the producers will be
tough challenge as per the data that has been collected is showing the fact that customers are
not so interested in brands like Bentley, Cadillac and they are not enough to create an
impression on the brand image of the vehicle. Now in order to highlight the development of
resource, through from the data, factors that are being considered by the consumers are not
important in the sense that though it thought to be one of the important thing but the structure
of data that has been collected is not showing that much of dependency.

PREDICTING BRAND LOYALTY IN AUTOMOBILE INDUSTRY2
Table of Contents
Chapter 1: Introduction..............................................................................................................3
1.1 Background of the study...................................................................................................3
1.2 Research Aims and Objectives.........................................................................................3
1.3 Aims of the study..............................................................................................................4
1.4 Objectives of the study.....................................................................................................4
1.5 Research Questions..........................................................................................................5
1.6 Problem Statement............................................................................................................5
1.7 Rationale of the study.......................................................................................................6
1.8 Research Hypothesis........................................................................................................7
1.9 Structure of the study........................................................................................................7
Chapter 2: Literature Review.....................................................................................................9
2.1 Introduction......................................................................................................................9
2.2 Conceptual Framework....................................................................................................9
2.3 Brand value.....................................................................................................................10
2.4 Equity and branding value..............................................................................................11
2.5 Financial based brand equity..........................................................................................12
2.6 Relationship with brand value and marketing of automobiles.......................................15
2.7 Brand conscious customers............................................................................................16
2.8 Web designing of the vehicles........................................................................................17

PREDICTING BRAND LOYALTY IN AUTOMOBILE INDUSTRY3
2.9 Chapter Summary...........................................................................................................19
Chapter 3: Research Methodology...........................................................................................21
3.1 Introduction....................................................................................................................21
3.2 Method Outline...............................................................................................................21
3.3 Research Onion..............................................................................................................22
3.4 Research Philosophy......................................................................................................23
3.5 Research Approach.........................................................................................................24
3.6 Research Design.............................................................................................................26
3.7 Data Collection Process..................................................................................................26
3.8 Sampling Method...........................................................................................................27
3.9 Sample Size....................................................................................................................28
3.10 Analytical model..........................................................................................................29
3.11 Ethical Consideration...................................................................................................29
3.12 Limitations of the study................................................................................................30
3.13 Chapter Summary.........................................................................................................31
Chapter 4: Results....................................................................................................................32
4.1Introduction.....................................................................................................................32
4.2 Empirical Results............................................................................................................33
4.3 Descriptive study............................................................................................................38
4.4 Inferential study..............................................................................................................43
4.5 Summary.........................................................................................................................47

PREDICTING BRAND LOYALTY IN AUTOMOBILE INDUSTRY4
Chapter 5: Discussion..............................................................................................................48
5.1 Introduction....................................................................................................................48
5.2 Discussion.......................................................................................................................49
5.3 Summary.........................................................................................................................52
Chapter 6: Conclusion and Recommendation..........................................................................54
6.1 Conclusion......................................................................................................................54
6.2 Linking with Objectives.................................................................................................55
6.3 Recommendations..........................................................................................................56
6.4 Limitations of study........................................................................................................57
6.5 Future scope of the study................................................................................................58

PREDICTING BRAND LOYALTY IN AUTOMOBILE INDUSTRY5
List of figures
Figure 1: Structure of the study................................................................................................11
Figure 2: Conceptual framework.............................................................................................13
Figure 3: 2D and 3D images that are shown to the customers.................................................18
Figure 4: Brands of vehicles in UK and class of vehicles under these brands.........................20
Figure 5: Snapshot of 3D morphing online design of vehicles................................................20
Figure 6: Brand recognition for four big brands of vehicles in UK.........................................21
Figure 7: Research Onion.........................................................................................................26
Figure 8: Deductive way of research.......................................................................................28
Figure 9: Abductive method of research..................................................................................29
Figure 10: Box-plot diagram for car-types and brand image...................................................37
Figure 11: Normal and commercial vehicles manufacturing...................................................46
Figure 12: Total export destinations of UK cars......................................................................47
Figure 13: Gender of responses................................................................................................48
Figure 14: Age of respondents.................................................................................................49
Figure 15: Designation of respondents....................................................................................50

PREDICTING BRAND LOYALTY IN AUTOMOBILE INDUSTRY6
List of tables
Table 1: Descriptive statistics..................................................................................................37
Table 2: Correlation coefficient matrix....................................................................................39
Table 3: Correlation coefficient matrix....................................................................................41
Table 4: Model summary.........................................................................................................53
Table 5: ANOVA calculation...................................................................................................55

PREDICTING BRAND LOYALTY IN AUTOMOBILE INDUSTRY7
Chapter 1: Introduction
1.1 Background of the study
In the modern world of business, increase in the brand loyalty is one of the important
concepts. Through the identification of brand loyalty and brand image the companies target
their specific customer groups. However, automobile industry is more fragile and more
competitive in nature. New companies are entering the market of automobile with
improvement in the technologies that are forcing the existing companies to feel the pressure
of high competition. Now in such circumstances in order to thrive in the market, the existing
companies will require customer loyalty and customer base. Consumer brand identification is
an important process through which the companies can understand what changes the
company requires in order to increase the satisfaction of the customers regarding
consumption of their vehicles. The study is mainly aiming to highlight the ways of increasing
customer valuation and brand loyalty.
1.2 Research Aims and Objectives
The main aim of the research is to predict the stature of the brand loyalty and
customer valuation that will be important for the automobile companies doing business in UK
in order to thrive within the industry. The study will help in the identification of factors that
are mainly beneficial for the automobile industry so that the companies will be able to expand
their profitability. Increase in the customer valuation will increase the communication level
with the customers and open communication will definitely help the companies to identify
their demand that will be influenced by tastes and preference. The second aim of the research
is to identify the factors that are lying within demand of customer that are influencing
marketing of the products.