Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

A Comparison Study of The Brand Loyalty of Perodua and Proton Car Owners: A Case Study in Kota Bharu

Siti Haslini Binti Zakaria, Siti Hasma Hajar Binti Mat Zin, Nur Syafizan binti Mohd Sufter, Nurain binti Samsury

http://dx.doi.org/10.6007/IJARBSS/v13-i4/16587

Open access

In today’s world, automobile industries play a very important role in contributing to the development and growth of one country’s economy. In the car business, which is very competitive, companies must make sure that their products are appealing to consumers and well-liked, as well as highly valued. Branding is not about presenting more choices but about providing buyers with clear choices. Hence, investigating the brand loyalty towards the national car among Malaysians would pave the way for the automobile industry to prosper along with other automobile industries worldwide. This study aims to identify the relative strengths of all factors in influencing brand loyalty among customers towards two brands of national cars in Malaysia. A total of 409 respondents to this study were at least 18 years old and car owners of the national brand, and they were selected from all dealers of Perodua and Proton in Kota Bharu, Kelantan. In this study, descriptive analysis, independent t-test and the Pearson correlation coefficient were used. The sample consisted of an almost equal breakdown of Perodua and Proton car owners. The findings show that the car owners show a moderate level of brand satisfaction, brand price, brand quality, brand equity and brand loyalty with their current cars. All the independent variables, which are brand satisfaction, brand price, brand quality, and brand equity, are strongly correlated with brand loyalty towards the national brand. Perodua owners were more loyal and committed than Proton owners. Brand loyalty has become an essential factor for all manufacturing companies. To gain customer loyalty, a company should produce products with good quality, suitable pricing, and more equity.

Aaker, D. A. (1994). Building a brand: The Saturn story. California Management Review, 36(2), 114-133.
Ahmed, Z., Rizwan, M., Ahmad, M., & Haq, M. (2014). Effect of brand trust and customer satisfaction on brand loyalty in Bahawalpur. Journal of sociological research, 5(1), 306-326.
Alhaddad, A. (2015). Perceived quality, brand image and brand trust as determinants of brand loyalty. Journal of Research in Business and Management, 3(4), 01-08.
Alqasa, K., Tuck, S. H., & Md Isa, F. (2017). Determinant Factors Of Brand Loyalty In Malaysian Automotive Industry. Social and Management Research Journal (SMRJ), 14(1), 81-96.
Amineh, H., & Kosach, N. (2016). Assessment of Consumers' Satisfaction with the Automotive Product Quality. International journal of environmental and science education, 11(16), 8726-8739.
Anselmsson, J., Burt, S., & Tunca, B. (2017). An integrated retailer image and brand equity framework: Re-examining, extending, and restructuring retailer brand equity. Journal of retailing and consumer services, 38, 194-203.
Belgiawan, P. F., Schmocker, J. D., Abou-Zeid, M., Walker, J., Lee, T. C., Ettema, D. F., & Fujii, S. (2014). Car ownership motivations among undergraduate students in China, Indonesia, Japan, Lebanon, Netherlands, Taiwan, and USA. Transportation, 41, 1227-1244.
Berry, L. L. (2000). Cultivating service brand equity. Journal of the Academy of marketing Science, 28, 128-137.
Brown, S., Kozinets, R. V., & Sherry Jr, J. F. (2003). Teaching old brands new tricks: Retro branding and the revival of brand meaning. Journal of marketing, 67(3), 19-33.
Chang, H. (2006). Integrating the role of sales agent into the branding model in the insurance industry. Journal of American Academy of Business, 8(2), 278-285.
Chaudhuri, A., & Holbrook, M. B. (2001). The chain of effects from brand trust and brand affect to brand performance: the role of brand loyalty. Journal of marketing, 65(2), 81-93.
CheeSeng, L., & Husin, Z. (2015). Product and price influence on cars purchase intention in Malaysia. International Journal of Social and Educational Innovation (IJSEIro), 31.
Chinomona, R. (2013). The influence of brand experience on brand satisfaction, trust and attachment in South Africa. International Business & Economics Research Journal (IBER), 12(10), 1303-1316.
Cifci, S., Ekinci, Y., Whyatt, G., Japutra, A., Molinillo, S., & Siala, H. (2016). A cross val?dat?on of consumer-based brand equ?ty (cbbe): dr?v?ng customer equ?ty ?n reta?l brands. Journal of Business Research, 69(9), 3740-3747.
Deloitte. (2008). Automotive Gen Y Survey Findings (2010). Retrieved from: http://www.deloitte.com/assets/DcomUnitedStates/Local%20Assets/Documents/us_a uto_gen_y_survey_findins.pdf.
Fathorrahman, Puspaningrum, A., & Suyono, J. (2020). Brand Satisfaction, Brand Trust and Brand Loyalty. Proceedings of the 2nd African International Conference on Industrial Engineering and Operations Management, 2708-2717.
Fida, B. A., Ahmed, U., Al-Balushi, Y., & Singh, D. (2020). Impact of service quality on customer loyalty and customer satisfaction in Islamic banks in the Sultanate of Oman. Sage Open, 10(2), 2158244020919517.
Fleming, D., & Soborg, H. (2016). Proton–Malaysia’s national car project: between success and failure?. In Cars, Automobility and Development in Asia (pp. 90-110). Routledge.
Fornell, C., Johnson, M. D., Anderson, E. W., Cha, J., & Bryant, B. E. (1996). The American customer satisfaction index: nature, purpose, and findings. Journal of marketing, 60(4), 7-18.
Gillani, S. U. A., & Awan, A. G. (2014). Customer loyalty in financial sector: A case study of commercial banks in southern Punjab. International Journal of Accounting and Financial Reporting, 4(2), 587.
Goldberg, P., & Verboven, F. (2001). The Evolution of Price Dispersion in the European Car Market. Review of Economic Studies, 68(237), 811-848.
Grisaffe, D. B., & Nguyen, H. P. (2011). Antecedents of emotional attachment to brands. Journal of business research, 64(10), 1052-1059.
Hamzah, Z. L., Lee, S. P., & Moghavvemi, S. (2017). Elucidating perceived overall service quality in retail banking. International Journal of Bank Marketing.
Jalagat, R., Bashayre, A., Dalluay, V., & Pineda, A. P. (2017). Correlates the relationship of service quality, customer satisfaction and customer retention on selected restaurants in Muscat, Sultanate of Oman. The International Journal of Business and Management, 5(9), 97-110.
Jawi, Z. M., Kassim, K. A., Isa, M. M., Hamzah, A., & Ghani, Y. (2016). Towards safer cars in Malaysia. Journal of Advanced Vehicle System, 3(1), 1-13.
Jeon, J. E. (2017). The impact of brand concept on brand equity. Asia Pacific Journal of Innovation and Entrepreneurship.
Kaitwade, N. (2021). COVID-19 shatters global automotive industry; sales of metal powder take a nosedive amid wavering demand. Metal Powder Report, 76(3), 137-139.
Kataria, S., & Saini, V. (2020). The mediating impact of customer satisfaction in relation of brand equity and brand loyalty: An empirical synthesis and re-examination. South Asian Journal of Business Studies, 9(1), 62-87.
Keller, K. L. (2003). Brand synthesis: The multidimensionality of brand knowledge. Journal of consumer research, 29(4), 595-600.
Lanza, K. M. (2008). The antecedents of automotive brand loyalty and repurchase intentions (Doctoral dissertation, University of Phoenix).
Lau, M. M., Cheung, R., Lam, A. Y., & Chu, Y. T. (2013). Measuring service quality in the banking industry: a Hong Kong based study. Contemporary management research, 9(3).
Lee, T. W., & Govindan, S. (2014). Emerging issues in car purchasing decision. Academic Research International, 5(5), 169.
Lehmann, D. R., & Srinivasan, S. (2014). Assessing brand equity through add-on sales. Customer Needs and Solutions, 1, 68-76.
Mokha, A. K. (2021). Brand equity, brand satisfaction, and brand loyalty: A study of select e-commerce industry. International Journal of Online Marketing (IJOM), 11(3), 34-50.
Mao, J. (2010). Customer brand loyalty. International journal of business and management, 5(7), 213.
Nadzri, W. N. M., Musa, R., Muda, M., & Hassan, F. (2016). The antecedents of brand experience within the national automotive industry. Procedia Economics and Finance, 37, 317-323.
Nam, J., Ekinci, Y., & Whyatt, G. (2011). Brand equity, brand loyalty and consumer satisfaction. Annals of tourism Research, 38(3), 1009-1030.
Nuseir, M. T. (2022). Assessing the impact of brand equity and demographic characteristics on brand loyalty: The mediating role played by customer experience in United Arab Emirates’ Hotel Industry. Journal of Hospitality & Tourism Research, 46(5), 905-922.
Nyadzayo, M. W., & Khajehzadeh, S. (2016). The antecedents of customer loyalty: A moderated mediation model of customer relationship management quality and brand image. Journal of retailing and consumer services, 30, 262-270.
Othman, A. A., Sundram, V. K., Sayuti, N. M., & Bahrin, A. S. (2016). The relationship between supply chain integration, just-in-time and logistics performance: A supplier’s perspective on the automotive industry in Malaysia. International journal of supply chain management, 5(1), 44-51.
Phuong, H. L. C., Anh, L. H., & Ab Rashid, A. A. (2020). Factors Influencing Car Purchasing Intention: A Study among Vietnamese Consumers. Journal of the Society of Automotive Engineers Malaysia, 4(2), 229-252.
Pracejus, J. W. (2003). Special Session Summary Consumer Understanding of Prices and Profits. ACR North American Advances.
Putra, N. H. (2020). The Effect of Service Quality, Website Quality, Price, and Brand Image on Consumer Satisfaction Impact on Consumer Loyalty in OLX Online Stores. In 4th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2019) (pp. 774-781). Atlantis Press.
Quan, N., Chi, N. T. K. C., Nhung, D., Ngan, N., & Phong, L. (2020). The influence of website brand equity, e-brand experience on e-loyalty: The mediating role of e-satisfaction. Management Science Letters, 10(1), 63-76.
Rahman, W. A. W. A., & Saidin, Z. H. (2021). Customer Loyalty: The Effect of Service Quality and Brand Image in Malaysias Automotive Industry. International Journal of Asian Social Science, 11(4), 188-199.
Raut, U. R., Pawar, P. A., Brito, P. Q., & Sisodia, G. S. (2019). Mediating model of brand equity and its application. Spanish Journal of Marketing – ESIC, 23(2), 295-318.
Shaharudin, M. R., Mansor, S. W., Hassan, A. A., Omar, M. W., & Harun, E. H. (2011). The relationship between product quality and purchase intention: The case of Malaysia's national motorcycle/scooter manufacturer. African Journal of Business Management, 5(20), 8163.
Shipley, D., & Jobber, D. (2001). Integrative pricing via the pricing wheel. Industrial Marketing Management, 30(3), 301-314.
Simonin, B. L., & Ruth, J. A. (1998). Is a company known by the company it keeps? Assessing the spillover effects of brand alliances on consumer brand attitudes. Journal of marketing research, 35(1), 30-42.
Su, J., & Chang, A. (2017). Factors affecting college students’ brand loyalty toward fast fashion: A consumer-based brand equity approach. International Journal of Retail & Distribution Management, 46(1), 90-107.
Subaebasni, S., Risnawaty, H., & Wicaksono, A. A. (2019). Effect of brand image, the quality and price on customer satisfaction and implications for customer loyalty PT Strait Liner Express in Jakarta. International review of management and marketing, 9(1), 90.
Sulaiman, Y., & Chau, T. W. (2021). Purchase Decision of Proton Car in Pulau Pinang. WSEAS Transactions on Business and Economics, 18, 1173-1189.
Sulaiman, Y., Jamil, N. A. M., Othman, A. R., & Musa, R. (2020). The influence of green marketing, syariah compliance, customer’s environmental awareness and customer’s satisfaction towards Muslim consumer purchasing behaviour in Kedah. WSEAS Transacfion on Business and Economics, 17, 195-204.
Sulaiman, Y., Bakar, N. N. A. A., Ismail, M. Y. S., Mat, N. K. N., & Musa, R. (2017). The function of marketing mix and consumer preferences on healthy food consumption among UUM students. International Journal of Economic Research, 14(19), 103-122.
Sum, H. T. (2015). A Study of Brand Loyalty in Malaysia’s Automotive Industry (Doctoral dissertation, Ph. D Thesis, Universiti Utara Malaysia, UUM Sintok, Othman Yeop Abdullah Graduate School of Business, UUM).
Sweeney, J. C., & Soutar, G. N. (2001). Consumer perceived value: The development of a multiple item scale. Journal of retailing, 77(2), 203-220.
Sze, L. H., & Hamid, N. I. N. A. (2012). Brand equity in automotive sector.
Veloutsou, C., Gioulistanis, E., & Moutinho, L. (2004). Own labels choice criteria and perceived characteristics in Greece and Scotland: factors influencing the willingness to buy. Journal of Product & Brand Management, 13(4), 228-241.
Witama, A., & Keni, K. (2020, May). The Impact of Brand Image, Perceived Price and Service Quality Toward Customer Satisfaction. In Tarumanagara International Conference on the Applications of Social Sciences and Humanities (TICASH 2019) (pp. 316-320). Atlantis Press.
Wu, C., & Hsing, S. S. (2006). Less is more: How scarcity influences consumers’ value perceptions and purchase intents through mediating variables. Journal of American Academy of Business, 9(2), 125-132.
Yee, W. F., & Sidek, Y. (2008). Influence of brand loyalty on consumer sportswear. international Journal of Economics and Management, 2(2), 221-236.
Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of marketing, 60(2), 31-46.

In-Text Citation: (Zakaria et al., 2023)
To Cite this Article: Zakaria, S. H. B., Zin, S. H. H. B. M., Sufter, N. S. binti M., & Samsury, N. binti. (2023). A Comparison Study of The Brand Loyalty of Perodua and Proton Car Owners: A Case Study in Kota Bharu. International Journal of Academic Research in Business and Social Sciences, 13(4), 330 – 346.