FACTORS INFLUENCING KUCHING CONSUMERS DECISION MAKING IN PURCHASING NATIONAL OR FOREIGN VEHICLES

Topics: Automotive industry, Marketing, Malaysia Pages: 30 (7710 words) Published: December 7, 2013


TABLE OF CONTENTS

LIST OF TABLES AND FIGURESii

CHAPTER 1: INTRODUCTION1
1.0 Overall Introduction1
1.1Background2
1.2Problem Statement3
1.3Objectives6
1.3.1General Objectives6
1.3.2Specific Objectives6
1.4Significance of Study7

CHAPTER 2: LITERATURE REVIEW8
2.0Introduction8
2.1Theoretical Framework8
2.2Empirical Findings10
2.2.1Product10
2.2.2Price12
2.2.3Place12
2.2.4Promotion13

CHAPTER 3: METHODOLOGY15
3.0Introduction15
3.1Hypotheses15
3.2Research Design15
3.2.1Population and Sample16
3.2.2Instrument17
3.2.3Data Collection Procedure18
3.3Data Testing19
3.3.1Reliability19

CONCLUSION20

REFERENCES21

APPENDIX

LIST OF TABLES AND FIGURES

Table 1.1:Sales Volumes in Units for Year 2007-2012 in Malaysia3 Table 1.2:Duties and Taxes on Malaysia Motor Cars4
Figure 2.1:Factors Influencing Sales for National or Foreign Vehicles in Kuching9 CHAPTER ONE: INTRODUCTION
1.0Overall Introduction
Transportation forms a living essential to human daily life, especially cars. People depend on transportation such as cars, buses, trains, or planes to travel from one place to another place. Since the invention of the car in late 1700s, it has developed into the most popular demanded form of transportation in the world. By using cars, our journeys become shorter and easier which saves time for consumers. Cars which were once considered luxuries are now considered necessities for many people. Thus, the production and sales of these vehicles has developed booming automotive sectors in various countries, contributing to economic growth.

Apart from the automotive industry, other related industries such as road developing, highway system provider, spare parts manufacturer and others have grown tremendously. Indisputably, the automotive industry plays an important role in the economy of the country. Due to the huge market for automotives, many countries are eager to involve in the automotive manufacturing industry. For example, Germany is well known to produce high quality luxurious vehicles such as BMW, Mercedes-Benz, Audi, Porsche and others.

Malaysia, as a member of Association of South East Asian Nation (ASEAN) has become one of the largest automotive markets in the region since year 1997 (Ted Case Studies 2001). Malaysia produces it owns national vehicles under companies such as Proton and Perodua. Due to large demand for vehicles, many international brands have entered Malaysia’s automotive market. For instance, Toyota and Honda from Japan, Volkswagen from Germany and so on. Thus, in the sales market, Malaysia’s national automotive brands face competition from many well-known and established international automotive industries.

In order to excel in the market, it is important to study the factors that affect a consumer’s decision on buying a vehicle. Vehicles are not cheap products that people can afford to buy everyday or change very often due to its expensive price. Most consumers would use their vehicles for a minimum of 5 years before they change to a new one. Hence, consumers tend to place much thought and consideration based on few factors before they make their final decisions to purchase their vehicles. Factors such as price, place, promotion and product will often be the first few concerns the consumer would do some research on before finally purchasing their vehicle. In this research, it studies these factors which affect the consumers’ decision on purchasing national or imported vehicle

1.1Background
In the early formations of Malaysia’s automotive industry, most of the vehicles in Malaysia were imported in the form of completely built-up units (CBU). During the times when Malaysia was still known as Malaya, Ford had been incorporated in Singapore and was already importing the Ford Model cars as early as year 1926 (Ford 2013). Volkswagen as well made its first appearance in Malaysia in 1950s...

References: Ch’ng, D 2013, Banking: Dissecting Household Debt, Maybank Investment Bank Research, PP16832/01/2013 (031128), viewed 7 November 2013,
Department of Statistics Malaysia 2010, Demographics, viewed 12 November 2013,
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