CUSTOMER PERCEIVED VALUES ASSOCIATED WITH AUTOMOBILE AND BRAND LOYALTY

Abstract

The purpose of this study is identifying the customer perceived value associated with automobile and examining its impact on customer satisfaction and brand loyalty. A sample size of 198 respondents was chosen from various points in Jeddah, Saudi-Arabia using convenient sampling. A multi-factor CPV questionnaire with a Likert-Scale from 1-5 was used to collected the data to determine customer perceived value associated with automobile and its impact on customer satisfaction and brand loyalty. To ensure reliability and validity of the data set, sample size only includes respondents who have been using/driving an automobile for a year. Descriptive statistics shows that the most significant perceived value associated with automobile is functional value followed by emotional value and epistemic value. Social value was the least reason that respondents purchase an automobile. In terms of correlations, this study found that overall customer perceived value associated with automobile is highly correlated with customer satisfaction and brand loyalty. Bivariate multiple regression analysis shows that there is a significant and positive impact of FV and CV on customer satisfaction. We do not find any significant influence of EV, EPV and SV on customer satisfaction. However we found that there is a significant and positive impact of EV, FV and CV on customer brand loyalty. Again we did not find any significant impact of SV and EPV on brand loyalty. The current study contributes to the body of research by investigating the combined impacts of customer perceived value on automobiles using one instrument on cross-sectional setting. This research shows that customer perceived value associated with automobile is crucial in increasing customer satisfaction and brand loyalty. Future research should be undertaken on different context or by increasing the sample size by widening the research context to ensure validity and reliability of the results. Key Terms: Customer Perceived Value, Emotional Values, Social Values, Conditional Values, Epistemic Values, Functional Values and Customer loyalty, Automobile