Comparative Study of Critical Attributes towards Purchasing Decision between National and Foreign Car in Malaysia

Abstract

Automotive industry is one of the key industries that drives the success and development of a nation. Malaysia's automotive industry is regarded as one of the main contributors to its Gross Domestic Product (GDP). Automotive industry in Malaysia can be divided into National Car and Non-National (foreign) car manufacturer. Intense competition from foreign car brands could threaten the competitiveness of the national car brands. Therefore, this study seeks to compare the critical attributes affecting purchase decision between national and foreign car brands among Malaysian car users. Three critical attributes have been proposed which are product quality dimension, brand loyalty and price. A survey was carried out with 384 respondents and the data collected by using closed-ended questionnaire. 186 questionnaires accepted and processed with 48.5% of response rate. Finding of this study illustrated that there are significant difference of critical attributes of product quality, price and brand loyalty toward purchase decision between national and foreign car brands. It can be concluded that price for national car brands is reasonable and competitive but not for loyalty and product quality compared to foreign car. This study would benefit especially the automotive players by understanding their customer needs affecting to attract intention for Malaysian consumer to purchase. At the same times traders and marketers to gain a better understanding while launching their marketing strategy for global competitiveness.