car purchase factors in saudi arabia

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MARKETING RESEARCH PROJECT “CAR PURCHASE FACTORS IN SAUDI ARABIA” The purpose of this research is to investigate usage behavior and attitudes of consumers in Saudi Arabia towards car purchasing.

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The purpose of this report is to communicate the results of a marketing research on the relationship between consumers, cars and auto dealers in Saudi Arabia. Further this report provides the reader with a comprehensive understanding of the different usage behaviors and attitudes of consumers in Saudi Arabia toward cars in general and each dealer. It also provides a study on the relative importance of different attributes of cars and the roles it plays on people’s lives. And it also emphasizes on the dimensions of satisfaction and dissatisfaction with cars and auto dealers in Saudi Arabia.The methodology followed to effectively complete this research started with an exploratory research to get a general idea about the objectives of the research followed by a structured self-administered questionnaire that was distributed to (300) and had a response rate of (75.4%) which was 233 participants. Key findings of the research are: 1. The different brands (e.g. Hyundai) and models (e.g. Sonata) of automobiles available on the Saudi market.2. Factors used by automobile buyers in Saudi Arabia when evaluating different automobile brands, models etc.3. The dealers for each brand of automobile on the market.4. Factors used by automobile buyers in Saudi Arabia when evaluating different automobile dealers.5. The different financing options available to Saudi consumers for purchasing an automobile.6. Information sources used by consumers in Saudi Arabia during the auto purchase process.7. Possible factors that influence what brand, model of automobile a consumer decides to purchase.8. Possible factors that influence consumers' overall automobile purchase decisions.

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Page 1: Car Purchase Factors in Saudi Arabia

MARKETING RESEARCH PROJECT

“CAR PURCHASE FACTORS IN SAUDI ARABIA”

The purpose of this research is to investigate usage behavior and attitudes of consumers in Saudi Arabia towards car purchasing.

Page 2: Car Purchase Factors in Saudi Arabia

Executive summary

The purpose of this report is to communicate the results of a marketing research on the

relationship between consumers, cars and auto dealers in Saudi Arabia.

Further this report provides the reader with a comprehensive understanding of the

different usage behaviors and attitudes of consumers in Saudi Arabia toward cars in

general and each dealer. It also provides a study on the relative importance of different

attributes of cars and the roles it plays on people’s lives. And it also emphasizes on the

dimensions of satisfaction and dissatisfaction with cars and auto dealers in Saudi Arabia.

The methodology followed to effectively complete this research started with an

exploratory research to get a general idea about the objectives of the research followed by

a structured self-administered questionnaire that was distributed to (300) and had a

response rate of (75.4%) which was 233 participants.

Key findings of the research are:

1. The different brands (e.g. Hyundai) and models (e.g. Sonata) of automobiles available on the Saudi market.

2. Factors used by automobile buyers in Saudi Arabia when evaluating different automobile brands, models etc.

3. The dealers for each brand of automobile on the market.

4. Factors used by automobile buyers in Saudi Arabia when evaluating different automobile dealers.

5. The different financing options available to Saudi consumers for purchasing an automobile.

6. Information sources used by consumers in Saudi Arabia during the auto purchase process.

7. Possible factors that influence what brand, model of automobile a consumer decides to purchase.

8. Possible factors that influence consumers' overall automobile purchase decisions.

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Table of contents

Introduction and background………………………………………….. 4Cars in Saudi Arabia..........................................................................................…...5

Importance of the research…………………………………………………………5

Research objectives……………………………………………………… 6

Literature review ………………………………………………………….7

Methodology……………………………………………………………... 8Research method………………………………………………………………….8

Research instrument……………………………………………………………....9

Sample and data collection……………………………………………………….10

Analysis and results……………………………………………………..12Research objective 1……………………………………………………………12Research objective 2……………………………………………………………17Research objective 3……………………………………………………………18Research objective 4……………………………………………………………20

Conclusion and recommendations ……………………………………22

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Study limitations…………………………………………………………23

References…………………………………………………………………24

1) Introduction and background

Since the introduction of cars, concerns have been raised about the performance, maintenance

and safety impacts of regular use. As car usage grew many standardizing organizations have

been after the manufacturers to make the cars friendly towards environment and in particular on

human health and most studies reported that “there is significant relationship between car usage

environment and safety”.

Because of the financial crisis, US car manufacturing is at its lowest in 26 years. In Europe,

customers are confused whether to buy cars or not. Car manufacturers have lost consumers’ trust.

Revenue for Toyota has come down 23%. GM’s stock fell to $2.76, the lowest since 1943. Ford

lost 30% of its revenue and the stock fell 80%. Honda lost 25%, BMW 15%, Mazda 45%, Nissan

36.8%, and Kia 27.8% of their revenue. Nothing was claimed by Hyundai, but it is said that they

have experienced losses as well. (1)

Cars in Saudi Arabia

In 1931 in Saudi Arabia the ratio was 1 car per 48 people. The number of cars in the Kingdom

has increased to a ratio of 1 to 4 at present. The reason for this is an increase in population, new

developments, increase in distances, as well as economic and social reasons. (2)

Saudi consumers purchase cars to represent their personalities, so they choose cars carefully and

try to have the newest and best. For BMW 40% of total revenue is by the old/new car exchange

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program, and 20-25% for used cars. Toyota and Lexus 30% is exchange, and 75% used. 20-30%

of cars driven in Saudi Arabia are owned by females, and 5-7% of them exchange their cars after

3 years. 90-95% male owners change their cars in the same period. (4)

Car imports in Saudi Arabia have increased 125%, from 144,000 cars in 1994 to 324,000 cars in

2003. The most imported cars are SUVs and minivans. (3)

Importance of this research

Finding information about car usage rates and different statistics is not as hard as finding

information about consumers’ relations and their different attitudes towards different car brands

in general and how consumers are actually purchasing automobiles and what specific factors

influence their final decisions.

At many levels the results of this research would provide auto dealers in the Saudi market with

information concerning:

1) Consumers' perceptions of auto brands

2) Consumers' preferences for auto brands

3) Influences factors on auto purchase decisions

4) Preferences for (or use of) alternative financing options in auto purchase

5) Importance of different information sources in auto purchase

6) Evaluations of auto dealers

After knowing all these information about consumers in the Saudi market, car dealers can

easily enhance and work on the areas that consumers are dissatisfied with, offer services that

match consumers’ needs and better build a relationship with different consumers to increase

the level of loyalty in the sense that consumers keep buying from the same dealer.

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It also helps each service provider to know the different gaps in the market that aren’t yet met

and try to fill these gaps with a clear idea of what consumers actually wants.

2) Research Objectives

BROAD RESEARCH OBJECTIVES

To study the automobile purchasing behavior of consumers in Saudi Arabia with

particular emphasis on examining factors that influences the auto purchase decision.

SPECIFIC RESEARCH QUESTIONS

1) What are automobile consumers' perceptions of, and preferences for different brands,

models etc of automobiles on the Saudi market? What factors influence these perceptions

and preferences? What is the specific nature of these influences?

2) What is the nature of consumers' preferences for alternative financing options in the

auto purchase decision? What factors influence these preferences? What is the nature of

these influences?

3) What is the relative importance of various information sources in consumers'

automobile purchase decisions?

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4) Where there are several dealers for a particular brand of automobile, what is the nature

of consumers' preferences for the different dealers? What factors influence these

preferences? What is the nature of these influences?

3) Literature ReviewFor our literature review we have reviewed 3 articles:

1) Robert B. Zajoncand and Hazel Markus

Vol. 9 • September 1982, Effective and Cognitive Factors in Preferences

2) Gerald Haubl. (1996) "A cross national Investigation of the effects of country of origin

and brand name on the evaluation of a new car" International Marketing Review pp76-91

3) Busik Choi (2006) " Consumers perception of a warranty as a signal of quality: An

Empirical Study on the automobile industry" pp 1-18 University of California, Irvine

1) The quality and importance of service play vital role in car purchasing. occupation,

age and gender influence car-buying attitudes. There are three factors involved in

Consumers Reaction Analysis: environment, behavior, and affect/cognition. Cross-

cultural differences arise from different cultural environments that influence consumers'

behaviors. People rely on their previous experiences to help them decide on what kind of

cars and brand names they wished to purchase.

Companies should consider on which elements of the value proposition--price,

service, quality, and image-they wish to focus, based on cultural preferences.

2) Country of origin and the country where the car is manufactured effects on the

perception of consumers when they are looking for a car to purchase.

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3) When consumers purchase new vehicles, consumer's past experience with vehicles is

an important factor.

Consumers might value on information about lesser known products more than

the information about a well known product.

4) Methodology

In this part of the study the following will be covered. First, the research method which

is the way this research was conducted and how an exploratory research assisted in the

process. Second, the research instrument which was a structured self-administered

questionnaire prepared after the findings of an exploratory research. Third, which is the

last part of the methodology, the sampling and data collection where different parts of

the eastern region of Saudi Arabia were visited and different demographic variables were

used to make sure the sample is as representative as possible.

1) Research method To reach to the objectives of this research a survey (i.e. self administered questionnaires) was

conducted. We have chosen the survey option because this research approach is feasible,

provides faster data and can be conveniently executed within the time frame available for the

study. First, an exploratory research was undertaken to identify the variables that need to be

measured and the specific questions that will explain each variable.

The goal of the exploratory research was to provide a general idea on how consumers relate

to car purchasing, to get insights on the behaviors and attitudes of car owners in Saudi Arabia

toward different brands of automobiles and their respective dealers. Further, the exploratory

research identified different variables that were used in designing the questions in the

questionnaire.

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Mainly some articles were reviewed in the exploratory research, focus group interviews were

done and sentence completion tests were conducted. The respondents in the exploratory

research were mostly family members and friends of the researchers.

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The results of the exploratory research identified different brands of automobiles in the Saudi

market, different car features, the most important attributes of cars to consumers in Saudi

Arabia, dimensions of consumers’ satisfaction and dissatisfaction with cars, different services

offered by the auto dealers in Saudi Arabia, what role does a car have in peoples’ daily life

and dimensions of consumers’ satisfaction and dissatisfaction with the auto dealers. At the

end several questions were prepared addressing each of these findings.

2) Research instrument

All the results from the exploratory research were used to design the structured self-

administered questionnaires that were used as the main instrument in this research. Both

Arabic and English versions were used.

In this research the objectives were clearly identified and the questionnaire was designed in a

way that makes it able to cover and answer each specific research question.

The variables that the questionnaire was designed to measure are all extracted from the

specific research questions which are listed below:

1) Consumers' perceptions of auto brands

2) Consumers' preferences for auto brands

3) Preferences for (or use of) alternative financing options in auto purchase

4) Importance of different information sources in auto purchase

5) Evaluations of auto dealers

6) Important influences on auto purchase decisions

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3) Sample and data collection The sample of the research was chosen from the eastern regions of Saudi Arabia and most of

the questionnaires were distributed face to face to ensure a high response rate and differences

in demographic variables.

The following table shows the response rate.

English Version Arabic Version

Attempted Surveys 250 50

Completed Surveys 197 36

Incomplete Surveys 53 14

Response Rate78.8% 72%

75.4%

The following tables shows the demographic characteristics of the sample

GENDER

Frequency

Male 233

Female 0

AGE

Frequency

Below 18 years 1

18 - 25 years 134

26 - 30 years 40

31 - 35 years 17

36 - 40 years 13

41 - 45 years 10

46 - 50 years 9

over 50 years 9

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NATIONALITY

Frequency

Saudi 155

Non-Saudi 78

MONTHLY

INCOME

Frequency

Less than SR 5,000 120

SR 5,000 - SR 9,999 29

SR 10,000 - SR 14,999 31

SR 15,000 - SR 19,999 17

SR 20,000 - SR 24,999 6

Over SR 25,000 8

EDUCATION

Frequency

Less than high school 4

High school diploma 44

Technical degree 13

Bachelor’s degree 116

Master’s degree 30

Doctorate degree 5

No education 1

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5) Analysis and Results

Our Analysis was conducted using SPSS for each research objective; each objective had

certain variables (questions from questionnaire) that we used to carry out our analysis.

Research Objective 1

A) Consumer perceptions of auto brands

Frequency Analysis was conducted on Question 17.

Chevrolet Ford Toyota Honda Nissan Kia Hyundai

Audi Volvo

a) Has reputation for good quality

24.9% 20.6% 60.9% 44.6% 24.4% 0.4% 6.9% 38.6% 26.2%

b) Is reasonably priced for its quality level

23.2% 23.6% 54.1% 29.2% 22.7% 16.7% 28.8% 12.9% 9.9%

c) Gives real value for your money

13.3% 17.2% 58.4% 24.9% 17.2% 10.3% 14.2% 19.3% 10.7%

d) Has very good fuel economy

5.2% 13.7% 70.4% 38.2% 28.8% 20.2% 28.8% 6.4% 4.3%

e) Has a reputation for durability

17.6% 19.3% 54.1% 36.1% 19.3% 1.3% 4.3% 24.0% 21.5%

f) Has a reputation for safety

14.2% 12.4% 19.7% 17.6% 6.9% 0.4% 2.1% 36.5% 68.7%

g) Is noted for its excellent design

20.6% 9.0% 25.8% 32.6% 18.9% 0.4% 7.7% 59.2% 17.2%

h) Has the best re-sale value

9.4% 10.7% 84.5% 25.3% 13.3% 1.7% 5.2% 7.7% 3.9%

i) Has excellent performance

23.6% 18.0% 47.6% 35.2% 25.3% 0.4% 3.4% 54.1% 25.8%

j) Has excellent overall quality

18.5% 15.5% 51.9% 33.0% 16.3% 0.4% 2.6% 45.9% 29.1%

Table 1

Table 1 illustrates percentages of the number of respondents who have selected the

statements according to their perception of each specific car. As we can see majority of

the respondents are in favor of Toyota, while on the other hand the overall perception of

KIA is very poor in the minds of the respondents.

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We have conducted further analysis on consumers’ perception of auto brands through

comparing means of the current satisfaction with car and likelihood of purchasing the

same car again for each of the brands. The variables included were Question 15, 16 & 2.

This is shown below:

Brand N S(Mean) L(Mean) DifferenceAmerican:        

Chevrolet 42 5.69 4.4 1.29Ford 28 4.89 3.75 1.14Chrysler 8 3.75 1.5 2.25Other 9 5.78 4.56 1.22Total 87 5.0275 3.5525 1.475

German:        Audi 5 6.2 6.2 0BMW 8 5.37 4.5 0.87VW 7 5.71 3.5 2.21Other 8 5.25 4 1.25Total 20 5.76 4.733333333 1.02666667

French:        Peugeot 6 3.5 2.33 1.17Renault 1 5 6 -1Total 7 4.25 4.165 0.085

English:        Range Rover 3 4.67 3 1.67Jaguar 3 4 2.33 1.67Other 1 7 7 0Total 7 5.22333333 4.11 1.11333333

Other European:        

Volvo 3 6 3.67 2.33Saab 1 7 7 0Total 4 6.5 5.335 1.165

Korean:        Hyundai 9 5.78 4.89 0.89Kia 3 5.33 3 2.33Daewoo 2 3 3 0Total 14 4.70333333 3.63 1.07333333

Japanese:        Toyota 33 5.73 4 1.73Honda 12 5.83 4.58 1.25Nissan 14 5.36 4 1.36Mitsubishi 5 4.2 4.2 0Other 9 5.7 3 2.7Total 73 5.364 3.956 1.408

Table 2

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In Table 2 the numbers highlighted Yellow are the total respondents that own a car

within that country (brand). And the numbers highlighted Orange are the total means of

the Satisfaction with current car (S) and Likelihood of buying car again (L).

The satisfaction level was rated out of 7, 1 is least satisfied and 7 most satisfied.

And for Likelihood 1 is least likely and 7 is most likely purchasing car again. The

majority of our sample owned American/Japanese cars. And for both they seemed to be

moderately satisfied with their current cars. From this we can deduce that most of the cars

on the street are either Japanese or American. Even though American cars lack good fuel

economy but since fuel is so cheap in Saudi Arabia it doesn’t make a difference to the

people. Within category of Korean cars Hyundai is the best in terms of satisfaction and

likelihood of getting bough again. Also, Japanese cars are doing significantly well due

them being reliable, good fuel economy and affordable to middle class people.

B) Consumers' preferences for auto brands

We used frequency analysis to find out how many individuals in the sample owned each type of different car. The variable included was Question 2 from the questionnaire. We got the following results:

Car brand Frequency Car brand Frequency

American:  Other European:  

Chevrolet 43 Volvo 3Ford 28 Saab 1Chrysler 8 Korean:  Cadillac 2 Hyundai 9Dodge 1 Kia 3Jeep 2 Daewoo 2Mercury 1 Japanese:  

German:   Toyota 33Audi 5 Honda 12BMW 8 Nissan 14VW 7 Mitsubishi 5Mercedes 5 Isuzu 2

French:   Lexus 2Peugeot 6 Mazda 1Renault 1 Suzuki 2

English:   Indian:  Range Rover 6 Tata 1Jaguar 3    

Total 216Table 3

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Table 3 illustrates there are a total of 216 individual from our sample of 233 that own a

car. As we can see Chevrolet and Toyota are the most own cars, also American and

Japanese cars are a lot in number from our sample. Once again this is leading to the

conclusion that in the population American and Japanese cars are most popular.

Once again we used Frequency analysis to find out which type of cars is most

popular. We used the variable Question 4 to figure this out. The following table is self

explanatory:

Type of car Frequency

4x4 14

Coupe 5

Hatchback 1

Minivan 12

Sedan 126

SUV/Jeep 23

Truck 7

Table 4

From Table 4 we can deduce that majority of the cars on the streets are in fact sedans.

Even the majority of productions for most car manufacturers are sedans. This proves that

people prefer Sedans in comparison to other types of cars.

For the third time we used Frequency analysis to see from our sample how many

people owned New/Used cars. We used variable Question 7 to figure this out. The table

is shown below:

Car Frequency Percentage

New 133 57.10%

Used 63 27.00%

No car 37 15.90%

Total 233 100%

Table 5

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Table 5 illustrates that 57.1% of our sample own new cars. So it can be suggested that

people to prefer buying new cars over used cars due to the complications they may cause

and this will lead to more chances of dissatisfaction.

C) Influencing factors on auto purchase decision

We conducted frequency analysis on variable Question 11 to see how many

individuals selected what in each category.

  Not important

Somewhat important

Average importance

Quite important

Very important

a)       The car's quality reputation 5 9 23 60 97b)       The car's features 3 17 46 65 62c)       The car's fuel consumption 16 20 55 50 53d)       The car's durability 6 12 46 69 63e)       The car's performance 4 11 40 59 80f)        The car's design 4 16 41 65 68g)       The car's price 3 7 31 60 94h)       The car's brand name 14 14 52 63 50i)         The car's home country 31 21 55 51 36j)        The car's re-sale value 47 32 44 39 32

k)       Reputation of the dealer 23 32 52 47 40m)     Country where the car is manufactured 26 32 50 44 41n)       Quality of after-sales service 18 17 39 66 54o)       Availability of spare parts 4 8 24 48 110p)       Cost of spare parts 6 8 30 53 96

Table 6

The numbers that are highlighted red in Table 6 are the highest selected within each

specific criteria. From this table you can easily interpret that a, e, f, g, o and p are “very

important” to most people since these were selected the most. b, d, h and n are quite

important. c, i, k and m hold average importance in people’s minds. Finally the most

chosen for j was “not important”. Being that this is a rich country some of these factors

would have been chosen abnormally due to the circumstances and situation (low fuel

cost) of people.

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For variable Question 18 we used frequency analysis to see which factor holds

more important to people in comparison with the opposing factor. This is show below:

a) [ 48] Dealer reputation Vs. [178] Car reputation

b) [154] Purchase price of the car Vs. [ 72] Re-sale price of the car

c) [122] Performance Vs. [107] Durability

d) [137] Performance Vs. [ 88] Fuel consumption

e) [119] Home country of the car Vs. [105] Country the car is manufactured in

f) [ 77] Quality of dealer service Vs. [149] Cost of spare parts

g) [ 53] Advertising information on the car Vs. [171] Friends/family recommendations

h) [ 90] Advertising information on the car Vs. [135] Articles in car magazines

i) [ 80] Advertising information on the car Vs. [144] Articles in internet sites

Table 7

From Table 7 (bold numbers are number of people that selected that factor) it is

clear which factors are more important in the minds of people when it comes to

purchasing a car.

Research Objective 2

D) Preferences for alternative financing options

Frequency analysis was conducted to find out how many individuals in our sample used

which different kinds of financing method and we found the following which is

illustrated in Table 7. The variable Question 10 was used to do this.

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Financing Method used Frequency PercentCash payment 64 27.46781116Gift from family member 86 36.90987124Interest-free loan from bank 5 2.145922747

Regular bank loan 7 3.004291845Islamic financing 9 3.862660944Company loan 2 0.858369099Hire-purchase 10 4.291845494Installment payments 11 4.721030043Other financing method 2 0.858369099Total 196 84.12017167Missing 37 15.87982833Total 233 100

Table 7

As you can see from Table 7 that 36.9% of the sample use Gift from a family member,

27.4% used Cash Payments to buy their car, etc. 15.8% reported nothing. From this we

can see that a lot of people that get a car in Saudi Arabia (Mainly the youth) get it as a

gift from their family member. And a significant amount use cash payments to purchase

their car.

Research Objective 3

E) Importance of different information sources in auto purchase

A combination of Frequency analysis and Descriptive was used to get how many

individuals used which Information source and what was the total average score out of

5. Variable Question 13 was used to conduct this analysis. Table 8 Illustrates this

Information.

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no.# of people that used source. Mean Usefulness

151 Recommendation by family 3.65

111 Manufacturers'/Dealers' brochures 3.13

121 Dealer's salesmen 3.22

95 TV advertising 2.88

96 Newspaper advertising 2.71

95 Magazine advertising 2.75

116 Reviews in car magazines 3.32

140 Internet reviews 3.66

153 Your own past experience 4.14

124 Car exhibitions 3.54

97 Car clubs 3.02

Table 8

As you can see from Table 8 the column highlighted in Yellow displays the number of

people from the sample that used that Information source. The column highlighted

Orange shows the Mean score out of 5 that has been calculated for all the individuals

that used that source. We can conclude that the most used Information source was from

peoples own past experience which had the highest score of 4.14. The second most

used source was recommendation by family which scored 3.65, etc. The information

sources that scored the least were the advertising sources. Internet reviews seem to be

more affective that Advertising.

Referring back to Table 7 we see the following;

j) [ 53] Advertising information on the car Vs. [171] Friends/family recommendations

k) [ 90] Advertising information on the car Vs. [135] Articles in car magazines

l) [ 80] Advertising information on the car Vs. [144] Articles in internet sites

It seems that people find Friends/Family recommendations, Articles in car magazines

& Internet sites to be more reliable than Advertising information.

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Research Objective 4

F) Evaluation and Preference of Auto Dealers

By conducting Frequency analysis on variable Question 8 we found out from where

most of our sample bought their car from. This information is displayed in Table 9.

Where car was bought FrequencyAgent in KSA 131Other dealer 55Outside K.S.A 9Not reported 38Total 233

Table 9

If you refer back to Table 7, a and f you can see which factor is more influential to

majority of the sample when it comes to dealer preference. Ideally this would be the

same for the population.

For Evaluation of the Dealer we conducted Frequency Analysis to see how many

different Dealers our sample is customers of, this is shown in Table 10. To do this we

used variable Question 9, and also we analyzed how our sample evaluated dealers

over all with respect to 6 dimensions which is shown in Table 11, to do that we used

variable Question 14.

Agent or dealer Frequency Agent or dealer name Frequency

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nameAAC Dammam 1 Al-Yemni 1

Abdul-Latif Jamil 27 Al-Zahid 3

Abdullah-Hashim 11 Ali Exhibition 1

Al- Naghi Motors 2 Auto Star 1

Al-Domaly 1 Balubaid Automotive 9

Al-Hamrani 5 Dammam Car Exhibition 1

Al-Haraj 2 Haji Husein Alireza 3

Al-Harraj 2 Juffali Automative 1

Al-Issa 3 Juffali Automotive 2

Al-Jaber 1 Khalid 1

Al-Jabir 3 Marhoon Exhibition 1

Al-Jadeedy Exhibition 1 Najd 1

Al-Jazirah 10 Sai'ary Exhibition 1

Al-Jumaih 12 Samaco 10

Al-Majdouie 6 Samaco Group 2

Al-Marhon 1 Shaik Al-Ma'ared Qaseem 1

Al-Mulhem 1 Sulaiman M. Alhamzah 1

Al-Mutahida 2 Tamkelat 1

Al-Naghi Motors 5 United Motors 8

Al-Ohaly 1 Universal Motors 17

Al-Saif Motors 3 Zahid Tractor 1

Al-Taveer 1 Not Reported(Missing, no car) 65

Table 10

These are all the different dealers present in our sample.

Different Dimensions being measured: Poor Average Good

V. Excell-ent

Don't KnowGood

a)      Availability of spare parts

17 24 35 47 66 5

b)      Price of spare parts 46 29 58 35 20 6c)      Quality of technical

service27 26 58 47 28 9

d)      Labor charges for service

47 33 53 34 13 12

e)      Speed of service 36 40 37 41 30 11f)       Quality of customer

service24 33 45 44 38 12

Table 11

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5) Conclusions and Recommendations

Based on the results of this research following are some recommendations for car dealers in

Saudi Arabia.

1) It is obvious from this research that Toyota (Abdul-Latif Jamil) has competitive advantage

in comparison with other car dealers due to the excellent services that they offer with the

highest quality standards. If car dealers can bring up the standards of their services by

benchmarking them with other car dealers such as Abdul-Latif Jamil they can become very

successful in a very short period of time. But in general usually when a new car brand enters

a market if they don’t use the right strategies from the start and try to take advantage of their

customers their reputation will be bad for the years to come. You have to make the best first

impression.

2) People have different perceptions of different car brands. They stereotype Korean cars for

being unreliable and having weak bodies compared to Japanese cars being very reliable. But

from our analysis we can see that specific Hyundai in comparison with other Korean cars is

doing very well. If auto-dealers can improve their image in front of the customers using

better marketing techniques and improving the quality of their cars by making minor

adjustments here and there it will make a big difference.

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6) Study Limitations

Some factors affected the perfection level of the study and forced the researchers to make

some choices in sampling and the type of analysis conducted on different variables to reach

to conclusions about each objective.

These factors are time constraints, limited resources and some cultural believes.

1) Due to time constraints a larger sample couldn’t be reached and some of the

demographic variables were not analyzed very deeply.

2) Due to limited resources we had to make a convenience sample method instead of

probability sampling. And due to cultural believes it was quit difficult to get a

response from females over males which could have produced some very interesting

results.

At the end these limitation only resulted in some minor shortfalls that the researchers would

have loved to complete. But it didn’t affect the validity of the acquired results.

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ReferencesThe following links have been used as a reference in our Introduction:

1) http://www.alrage.net/vb/t136417.html

2) http://www.dralsaif.com/articls/6.htm

3)http://www.asharqalawsat.com/details.asp?

section=6&article=258392&issueno=9441

4) http://www.asharqalawsat.com/details.asp?section=6&article=82007&issueno=8445

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