Determinants of Customers’ Automobile Brand Preferences in Addis Ababa: The Case of Some Selected Car Brands (Toyota, Hyundai & Nissan)
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Date
2023-07
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Addis Ababa University
Abstract
This research aimed to investigate the determinants of customers' vehicle brand preference in Addis Ababa, with a focus on three selected car brands: Toyota, Hyundai, and Nissan. The study was conducted through a survey of 352 respondents who are a customer of these three brands and the data were analyzed quantitatively with the help of the 27th version of Statistical Software for Social Sciences (SPSS). The research analyzed the impact of the independent variables, namely aftersales service, price, brand image, reliability, and resale value, on customers' brand preference. The researcher used descriptive and explanatory research design to meet the research objectives. The researcher used a convenient sampling method to get representative samples from the populations. The researcher collected data from MOENCO, Nyala and Marathon Motors customers through structured questionnaire to assess customers’ level of agreement regarding their Automobile brand preference. Regression analysis was run for checking the relationship between the variables and testing the hypotheses. The results of the analysis revealed that Reliability, Brand Image and Resale Value positively influenced the consumer’s brand preference. On the contrary, Aftersales and Price had a negative association on brand preference. Therefore it is concluded that, Reliability and Resale value has a significant and positive effect on brand preference. This research provides valuable insights that can help car manufacturers and dealerships in Addis Ababa to better understand their customers' preferences and tailor their marketing strategies accordingly. It is recommended that car manufacturers and dealerships prioritize reliability and resale or trade-in options in their marketing and sales strategies