Brand Loyalty in the Car Industry: A Case Study of Toyota

This report delves into the concept of brand loyalty within the automotive industry, specifically using Toyota as a case study. It begins by defining brand loyalty and exploring its significance, particularly in a competitive market. The study investigates various factors influencing brand loyalty, such as perceived value, marketing strategies, performance quality, and customer satisfaction. The report examines Toyota's background, its significance in the industry, and its strategies to enhance brand loyalty. The literature review provides insights from different authors and scholars regarding the research theme, and the methodology outlines the research approach, including the type of investigation, research choices, timeframe, data analysis, and ethical considerations. The findings will highlight the factors affecting brand loyalty in the car industry, analyze the effectiveness of Toyota's strategies, and suggest ways to intensify customer loyalty. The report concludes with a comprehensive list of references.

An investigation about brand
loyalty in the car industry- A
case study of Toyota

Table of Contents
TITLE: “An investigation about brand loyalty in the car industry- A case of Toyota” .................3
INTRODUCTION...........................................................................................................................3
TIME SCALE..................................................................................................................................5
LITERATURE REVIEW................................................................................................................6
Concept of brand loyalty........................................................................................................6
Factors affecting brand loyalty........................................................................................................7
Strategies to enhance brand loyalty........................................................................................8
Ways to intensify brand loyalty............................................................................................12
RESEARCH METHODOLOGY...................................................................................................13
Type of investigation............................................................................................................13
Research choice....................................................................................................................14
Time frame...........................................................................................................................14
Data analysis.........................................................................................................................15
Data collection......................................................................................................................15
Ethics consideration..............................................................................................................15
RESULTS / FINDINGS ...............................................................................................................16
REFERENCES..............................................................................................................................30

TITLE: “An investigation about brand loyalty in the car industry- A case of
Toyota”
INTRODUCTION
Brand loyalty is the consumer behaviour pattern where customers being committed
towards specific brand and make repeat purchase in given time period. An organization can use
innovative marketing strategies, such as loyalty or rewards programs, incentives and brand
representative (Sasmita and Mohd Suki, 2015). In highly competitive market overwhelmed with
new and established brands, an enterprise employ various strategies in order to develop brand
loyalty. Brand loyal consumers are the foundation of an organisation. This will assist in building
confident of brand loyalty for their goods which are capable to save amount of money from their
marketing budget. This money is used in various schemes is to collect and gather further
customers for their goods effectively. It is crucial for Toyota organisation is to accomplish their
buyers needs and demand in order to gain high income and profits. Along with this, brand loyalty
is defined as positive feelings towards a brand and dedication in order to buy similar type of
goods and services repeatedly in future and current time period. The main advantages of brand
loyalty within an organisation which can introduce premium priced goods as they are secure in
the knowledge which the buyer will not ditch them. The report is based on Toyota which is
international automobile manufacture company and it is world's second largest automotive firm.
The main purpose of this assignment is to understand research aims and objectives on specific
topic. Along with this, literature review help in analysing different authors and scholars view
points regarding research theme.
Background of study
Toyota Motor corporation is the Japanese multinational automotive manufacture firm and
it is situated in Toyota City, Aichi, Japan. It is one of the second largest automobile manufacture
industry. They are design and develop innovative cars which gain attention of large number of
customers (Fatema, Azad and Masum, 2015). Toyota is the world's market leader in sales of
hybrid electric transport and it is one of the largest companies to motivate the mass market
adoption of hybrid vehicles in all across the boundary.
Significance of study

The main importance of this research is to analyse the factors which influence brand
loyalty in the car manufacturing industry. This will assist company in order to gain high amount
of income and profitability effectively. Along with this, Toyota can easily analyse customers
choice and preferences which help them in fulfil all demand in better manner. It is used for
examining and analysing clients requirements in order to acquire high income and profitability.
Aim: “To investigate the factors that influence brand loyalty in the car industry from the
perspective of Toyota”.
Research Objectives:
 To investigate the factors affecting brand loyalty in the car industry.
 To analyse the effectiveness of the strategies of Toyota for enhancing its brand loyalty.
 To recommend effective ways for Toyota to create deeper quantum of loyalty in its
customers.
Research Questions:
 What role does brand loyalty play in the car industry ?
 Which of Toyota cars' attributes/features/benefits play major roles in invoking brand
loyalty in its customers ?
 What could Toyota do in order to intensify brand loyalty in its customers ?
TIME SCALE

LITERATURE REVIEW
A literature review is describe about published data and information in particular topic
area and sometime such facts and figures are related to specific area in given time period. A
literature review is the simple summary of different sources and methods but it is mainly use
specific organisation framework which combined with both summary and brief concepts or
theories. This is the type of review article (Aaker and Joachimsthaler, 2012). It is scholarly paper
that includes present and existing knowledge including substantive findings and theoretical
contribution to particular theme. This is termed as secondary sources and it does not record new
and real enquiry work. It can be seen as basis of investigation in every academic sector. Along

with this, it can be used for recognising different authors and writers views and opinions
regarding specific research topic.
Concept of brand loyalty
As per the view of Shawn Grimsley, (2019) Brand loyalty is the tendency of buyers
which continuous purchase one's brand goods over another. Consumer behaviour patterns
demonstrate which buyers will continue to purchase goods from an organization which has faster
trusting relationship. It is important for Toyota company is to fulfil their buyers needs and
demand in order to gain high income and profitability. Along with this, brand loyalty is defined
as positive feelings towards a brand and dedication in order to buy similar type of goods and
services repeatedly in future and current time period. This can help in analysing customers
behaviour and attitude towards company products and services in proper manner.
 Perceived value :- When it talks about brand loyalty, the company should create a
perceived value in the eye of customers. As customers are the king of the market , so to
create a value in the eye of consumers is much more beneficial. The value increases the
demand and also creates a brand image in the market.
 Marketing :- Marketing starts from the advertisement and work with the market till its
complete the after sales services. Toyota has after sales service which serves as free
servicing for a given period of time. It regulates the whole process from the support of
increasing sales to provide the service after sales.
 Performance quality :- When the word performance enters, then it directly link to the
quality of product and service (Aaker, 2012). Toyota has many unique products such has
RAV4, Toyota Prius+ etc. It always focuses on its new inventions in the market and
update in its technology to offer the best product in the market.
 Loyalty and Customer satisfaction :- Customers are the king of the market, satisfying
them and creating goodwill in the eye of customers is much more beneficial. Toyota has
its unique perspective while talking about customer satisfaction, it works according to the
customer's demand and improve its services as on the feedback given by them.
Factors affecting brand loyalty
According to the view of Raul Galera, 2019 brand loyalty is important because this will
assist in gaining attention of large number of customers towards company goods and services.
There are various factors which directly affect brand loyalty such as advertisement, price,

quality, past experience and service quality. Such are play an important role in business as
organisational requirements in adhere all factors in order to make happy buyers and loyal
towards them. Toyota use branding procedure which help them in creating new and unique type
of image for a product in the mid of customers. This is mainly used for advertising campaigns
which is designed by an organization in order to promote its effective goods and services.
Branding play an important role in enhancing brand equity and brand loyalty. The brand loyalty
is directly affect on increasing business sales and its profitability level by serving various
products and services to their customers (Akdeniz Ar and Kara, 2014). Toyota is multinational
car manufacturing company which create good brand position in order to enhance business sales
and income level. It is require for respective firm is to develop effective brand which attract large
number of buyers towards company goods and services.
 Every company tries to form its strategies according to the updated trend and technology
in the market. Toyota which is the largest auto-mobile manufacturer founded in 1937 in
Japan. The company has adopted many unique strategies to perform better in the market
and can create a brand loyalty in the eye of the consumers.
 These days Instagram is in trend and people are more focused towards its advertisement
because at present the percentage of people using Instagram has a big market in its own.
So, Toyota is working on Instagram Ad Videos which has the power to educate the
customers in the market. Videos, services, technology and many more unique products of
Toyota are portrayed in the market by Instagram (Al-Hawary, 2013).
 Toyota has a unique strategy which is called Pinterest, to civilized or to humane the
different crowd and attached a feeling with the products by organizing different events
such as “Road Trips” and “Outdoor Adventure” etc. These trips with the unknown crowd
creates different unique memories and maintain the brand value in the market. It also
increases the word of mouth advertisement.
Strategies to enhance brand loyalty
At present the platforms of purchasing a product has increased in a vast manner because
of which customers are not loyal towards the particular brand in the market. Many companies
and brand have come up with a conclusion that this new wave of purchasing a product online has
lower down the value of brand loyalty. There are various strategies which help in developing and
formulating brand loyalty for retaining more customers towards organization goods and services

effectively (Anisimova, 2013). There are many unique strategies which Toyota follows to
maintain its loyalty in the market. As it is much more beneficial for the profit maximization. The
company never sacrifices on its important decisions related to the brand loyalty as it increases its
market across the world. These are described as follows:
 Quality Concept - Keeping quality high is the utmost factor of every company. Toyota
which carries a world wide image always take initiative for updating its existing product
with high quality and maintain it for the future. It carries the dynamic image of a
particular brand in the eye of customers as to offer them high quality product is much
more essential to maintain its image in the market.
 Two way communication - It define as the conversation between company and customers
so to educate them about its different new innovations. Toyota use to come-up with some
new and exciting offers, adaptation of unique technology, and the future plans regarding
its company (Apenes Solem, 2016). These all new information scattered or
communicated to the customers of the company. This creates a link, and customers feels
attached to the company as their loyal customers.
 Feedback concept - The most vital concept from which the company notices its
weakness and work on it. Toyota take initiative as to find out its weakness regarding the
product of the company or the services which has offered after purchasing it. This
feedback solve the customer's problem and help them in creating a good bond regarding
its product (Ažman and Gomišček, 2015). This is that concept which assist them in taking
feedback and they are offer potential goods and services effectively. Along with this, an
organisation take initiatives for further steps which help them in achieving potential
customers in better manner.
 Appreciation concept - The company goal is to connect their customers from every
aspect of selling or making a bond, as word of mouth marketing also plays a vital role in
handling the loyalty of its customers. Toyota deals with every thankful letter and stock
their customer's special day to wish them a Happy Birthday. Wishing on festivals, New
year, and on every occasion Toyota gets connections with their customers, which help in
building its loyalty with its existing market (Cho And et. al., 2017). This is the concept
which help them in giving appreciations to their employees which enhance its growth and
income level. It will assist in reaching with desired customers that can be helpful in

analysing their needs and wants in proper manner. The main objective of an organisation
is to make connection with their potential customers and offer them required goods and
services in better manner.
 Adding value concept - Here the question comes in mind about the existing customer,
whether they prefer the brand again and again or not. Toyota pleases their customers by
giving them unique gifts while purchasing the product. It adds the value in the existing
product and deals with their customers by giving them unique discounts, offers, gift
vouchers, bonus services and finds many different ways to make themselves more
attractive (Eggert, Henseler and Hollmann, 2012). The company can use this concept
which help in adding value in order to achieving with desired customers.
 Stay Focused - Keeping an eye on the market competition and always update its
marketing strategies is the most important part of Toyota. Toyota focuses on its
competitors and finds the new updated trends from the market so to change its way of
commination with its customers. It is required for firm is to focus on different marketing
strategies and policies which help them in smoothly run of business operations and its
functions in better manner. Along with this, they are concerned about competition which
occurs within an organisation and it will assist in gaining high income and profitability
effectively (Fatema, Azad and Masum, 2015). This can be used for making and
developing business strategies which help them in analysing all required goods and
services in the large market area. Email strategies – This is one of the effective strategy which assist in gaining attention of
large number of customers towards Toyota cars. For attracting more customers, the
company manager requires to send messages and emails to their regular buyers for
maintain brand image in the mind (Schivinski and Dabrowski, 2015). For this, company
can enhance its brand loyalty in front of domestic as well as international customers. It is
used for developing and formulating business strategies which help them in reaching with
desired income and profitability effectively. This strategy assist in promoting company
goods and services through use of email methods and techniques. Along with this, it can
be helpful in gaining and acquiring high income and profitability.
 Discounts – It is another strategy which assist in retaining large number of customers by
satisfying their needs and demand in better manner. It is the way which help them in

building relationship of trust and loyalty with their customers and they require to give
them value and respect. The company provides discounts and offers which attract large
number of customers towards large market place in goods and services (Gaiardelli,
Songini and Saccani, 2014). They are offer variety of products and facilities in discounts
and it is helpful in gaining attention of more buyers towards desired goods and services.
 Keep quality high: One of the best source to enhance brand loyalty is to give best
quality products and services to their consumers. In order to large amount should be
spend on research and development to grab large attention of consumers. Consumers
consciously focus on quality of product at low price base so that they can get satisfaction.
This is required for firm is to provide best quality based goods and services to their
customers in the large market place. For this, they need to maintain and manage all
products which are high in quality and they are make innovative products and services to
the potential buyers (Germann and et. al., 2014). This will assist them in attracting large
number of customers who are willing to buy such type of goods and services in better
manner. For this, they required to analyse whole market place where they can easily
examine each customers needs and wants along with high quality.
 Engage with consumers: The another best way to enhance brand loyalty is to keenly
engage with consumer base by frequent observation of taste and preferences of consumer.
Give them something exciting so that they pleasantly buy the products and services.
Proper communication is one of the best way to engage with consumers and after sale
services is one of the another most important factor to closely engage with consumers.
They are engaged with customers in order to offer variety of goods and services in the
large market place (Goh, Heng and Lin, 2013).
 Solicit feedback from consumers: The another best method to engage with consumer
and enhance brand loyalty is to take feedbacks from consumer and accordingly mould in
products and services and reach at large consumer base. Know about their experience and
try to give them delighted experience so that they feel satisfied from products and
services. This is the best method which help them in enhancing brand loyalty among
customers in order to reach with desired customers effectively. An organisation analyse
feedback and their buyers response which assist them in gaining attention of buyers
towards their goods and services.

 Stay relevant: One of the most important factor to remain loyal and provide brand
loyalty to consumers is to remain always relevant on own words and give their best
attribute to enlarge business opportunities and grab large market share. This will assist in
stay relevant and applicable which help them in giving their best to the business concerns
effectively (Guajardo, Cohen and Netessine, 2015). It is required for an organisation is to
focus on marketing strategies and policies which assist them in reach with desired buyers
who are willing to purchase such type of goods and services.
 Provide value- One of the important aspect to build brand loyalty is to give best
attributes and features in products that create value advancement in individual life. To
provide value organisation have to add some features and provide on less price so that
they can happily purchase it. This is required for an organisation is to give accurate value
to their potential buyers as per this they can analyse and examine value of goods and
services in proper manner.
Ways to intensify brand loyalty
Intensifying brand loyalty involves re-building brand with the help of seamless strategies.
In this, managers are connected with their buyers which assist them in developing and creating a
sense of belonging and community. They are use various methods and sources which help them
in reaching with desired goals and targets. One of the important way of brand loyalty which can
intensified is by strengthening customer service. At the time, when Toyota delivers quality and
reliable cars to the customers (Guercini and Ranfagni, 2013). Brand loyalty is defined as positive
feelings towards a brand and dedication to buying same type of goods and services. This can be
demonstrated with other attitude and behaviour such as positive word of mouth advocacy. This is
important in company which help in maintaining budgets and funds. With the help of this, it will
assist in enhancing sales volume, premium pricing ability and retaining new customers which
are essential factor for brand loyalty. It is the tendency of consumers which is continuously
purchase one brand's products over another. Consumer behaviour patterns shows that buyers will
continue to buy desired goods from an organisation which maintain strong relationship with
them. There are various ways through which company can enhance their brand loyalty that are
described as under: Use technology to create a better customer experience – In an organisation, technology
is a valuable method and tool which assist them in make improvement in brand

relationship with their customers. This is required for firm is to deliver unique and new
type of services to their buyers which assist them in meet with required needs and
demands in proper manner (Guido and Peluso, 2015). Toyota required to make unique
type of products and services in order to develop effective customer experience. They are
use latest methods and techniques which assist them in achieving high income and
profitability. It will help in developing better customer experience for satisfying their all
needs and wants in better way. Respective company required to adopt latest methods and
techniques which help them in analysing all desired consumers demands. This is required
for firm is to use latest technology and methods that can be helpful in creating customer
experience.
 Use social media to show brand value and customer appreciation – A social media is
the important way which help them in building and developing effective brand loyalty.
This will assist in promoting company goods and services in order to gain attention of
domestic as well as international customers. Toyota required to adopt such method and
technique which help them in reaching with desired buyers who are willing to purchase
such type of products and facilities of cars (Hamin, Baumann and Tung, 2014). Along
with this, firm required to use social media method which assist them in presenting brand
value and customer appreciation towards innovative products. Brand loyalty help
company in using social media which show brand value and gain effective customer
experience.
RESEARCH METHODOLOGY
This is the process and technique that can be used for selecting, identifying and analysing
whole data and information regarding specific topic of research. In this section, investigation can
carry out in order to analyse appropriate method which are used by researcher. In this section,
they allow readers in order to evaluate and analyse the study's whole validity and reliability. It is
defined as the study of technique and method in which they gain correct knowledge and skills. It
is one of the most essential section of investigation report because it is necessary factor to be
considered. With the help of this, all such issues which are related to research report which can
be sort in better manner. It is required for investigator is to conduct all main functions and
activities in given time period so that they can easily gain desired goals.