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Customer satisfaction and loyalty for Toyota products

1800 words (7 pages) Essay in Marketing

5/12/16 Marketing Reference this

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1.0 Customer Demographic

1.1 Gender, Age, Race and monthly income

Demographic of customers was included as a factor that might play a role in determining a brand image and loyalty. According to Toyota customer demographic research, the higher purchasing rate on Toyota vehicle is 20 – 30 years old which is 78 people, the lowest purchasing rate is people who are below than 20 year old which is 0 people (refer to figure 1, picture 2 ). Otherwise, in race perspective, Chinese is the largest consumer’s base which is 98 people and the smallest consumer’s base is other races which is 8 people (refer to figure 1, picture 3). Thus, from monthly income perspective, it show that 98 people is the category from RM 4001-5000 income which is the highest range among the rest of categories and the lowest category is from < RM 1000 income which is 2 people only (refer to figure 1, picture 4).

Figure 1: Customer Demographic

2.0 Customer Satisfaction

There are four main elements that use to determine customer satisfaction on Toyota Motor Company which is Toyota products quality, Toyota products price, Toyota products innovative and creative; and Toyota services. The respondents were exposed to the question regarding the specific brand that they like and they like to purchase. This four elements is the most important factor that influence or affect customers decision making while consider to purchase Toyota products. Data were assembled on asking question from the users of the Toyota that whether they are satisfied with the Brand they are using. The results of the quantitative research are showing at below according to different element.

2.1 Product Quality Perspective

Product quality is a very important factor to determine customer satisfaction on Toyota products. According to the data collection most of the respondents are agree of important of product quality which is 45%. The second highest is 38% which is strong agree that products quality is the important factor when a customer’s intent to purchase Toyota products. The lowest percentage is strongly disagree which is only 1% (refer to figure 2).

Figure 2: Product quality

2.2 Product Price Perspective

Thus, product price is another important element that will affect Toyota customer satisfaction. In the research result, most of the respondents are strongly agreed that products price is very important when they choose to purchase Toyota products which are 52%. On the contrary, there are only 2% of respondents which is strongly disagreed on the impact of products price (refer to figure 3).

Figure 3: Product Price

2.3 Product Creative and innovative Perspective

A feature of a product permits a certain function which in turn leads to a benefit and is considered a value addition to a particular product. The importance of features of a product cannot be ignored, because of this, users were asked about features of the Toyota. Particular features that were included in the questionnaire were picking of vehicle, seating capacity, economy of fuel & maintenance, status symbol, performance, reliability and resale value. According to the result, there are 32% of respondents agreed that product innovative and creative will affect Toyota customer satisfaction. This is the highest percentage among the rest. Beside it, the lowest percentage is 11% which is strongly disagree that products innovative and creative will affect customer satisfaction on Toyota products (refer to figure 4). Through this result, Toyota can determine that Innovative and creative of their product is not the largest affection that affect customer on purchasing their products and enhance customers’ satisfaction.

Figure 4: Product innovative and creative

2.4 Customer Service Perspective

To determine customer satisfaction on Toyota customer service perspective, three main elements are separate out which is store atmosphere, service advisor and also technical service (refer to appendix 26).

2.4.1 Store Atmosphere

According to the data collection result, the highest percentage from the respondents is 45% which is strongly agreed that store atmosphere is very important to enhance the customers purchasing rate of Toyota products. Beside it, the lowest percentage is neutral which 1% is only (refer to figure 5). Through this percentage figure Toyota are able to understand that there are a big gab among the customer on store atmosphere perspective but, the majority of customers are expect to have a good quality of store atmosphere.

Figure 5: Store Atmosphere

2.4.2 Service Advisor

From the result, the highest percentages from the respondents agree that service advisor is important to them which are 42%. Thus, the lowest percentage is neutral which 1% is only (refer to figure 6).

Figure 6: Sevice advisor

2.4.3 Technical service

Through the result, the highest percentage from the respondents is 46% which is strongly agreed that technical service is very important to enhance Toyota brand image. Beside it, the lowest percentage is remain neutral which 1% is only (refer to figure 7).

Figure 7: Technical Service

From the customer service perspective analysis, it shows that service of a company is very important to increase the customer satisfaction on a products or Company. In order to increase customer satisfaction level, Toyota has to remain and increase the quality of service on every department to satisfy customers’ needs and wants.

3.0 Customer Loyalty

Questionnaires of customer loyalty is to determine whether Toyota are able to persuade and concede Toyota customers to become Loyal to their brand. This is an important factor that leads Toyota to success in the automobile industry. It is because more loyal customers will increase the profits of Toyota Company. According to the research result, most of the respondents are choosing ‘Yes’ which is 60% respondent average are choosing ‘Maybe’ which is 33% and 7% respondents are choosing ‘No’ (refer to figure 8).

Figure 8: Toyota Customer loyalty

Otherwsie, through the research, its shows that there are 63% of the total repondents are prefer to purchase Toyota brand products compare to the other brands. Beside it, the percentage of respondent who will not prefer to Toyota band products is remain lowest which is only 6% (refer to figure 9). According to this research result, we can know that many customers are loyal to Toyota brand.

Figure 9: Customers prefer Toyota brand compare to others?

Furthermore, through the research data most of the respondents which are 63% choose Toyota products because of the brand image. Customers feel reliable and confident on Toyota products. Beside it, there is only 1% of respondents choose Toyota products due to others reason (refer to figure 10).

Figure 10: Customer choose Toyota because of brand image?

According to the result at figure 11, there are stated that 64% and 1% of respondents will recommend and not recommend Toyota products to their relative or friends.

Figure 11: Will customer recommend Toyota products to relative or friend?

Otherwise, the respondents were also asked regarding their repeat purchase duration mechanism. Several optioned were put besides them. They were asked that after how many years they repeat their repurchase decision. Different opinions come out of the data, but the result shows an insignificant relationship between repeat purchase duration and Brand Image and Loyalty. According to figure 12, there are 57% of respondents say ‘YES’ which is they will repeat purchase Toyota brand products in the future. Thus, Only 6 % of the respondents say ‘No’ which is unwilling to repurchase Toyota products.

Otherwise, figure 13 show that the highest duration that customers will choose to repeat purchase on Toyota products is 7 to 9 year. Thus, the lowest duration those customers will repeat purchase on Toyota products is 1 to 3year.

Figure 12: Customers willingness to repuchase Toyota Products.

Figure 13: Customers repeat purchase duration

4.0 Rating for the elements that affect customer satisfaction to Toyota products

According to customer rating from Penang respondents, Toyota are able to know that the main elements that customer focus on while they choose to purchase Toyota products. According to the result, most of the customers will focus on the products price firstly. Secondly, customers will focus on products quality and follow by quality of service. The last element that customers will focus on is products innovative and creative (refer to figure 14).

Figure 14: Customer Rating

5.0 Determine the current Automobile Market situation

The respondents were asked about how many vehicle and the brands that they are currently using in their family today. Many brands were compared in this regard, which included Toyota, Honda, BMW, Mercedes, Nissan, Proton, Perodua and others. Through the data of research, Toyota is able to determine and identify current market situation, Toyota customer loyalty and Toyota brand image in Penang automobile market.

5.1 Total vehicle of family

According to the research, most of the family have more than one car. Under this Toyota questionnaire research, among 192 respondents, there are 91 respondents have 1-3 cars in each family which is considered as the highest record in this research. Otherwise, the second highest is 87 respondents which have 4-6 cars in each family. Thus, the lowest category is more than 8 cars in each family which has 5 respondents only (refer to figure 15).

Figure 15: Total vehicle of each family

5.2 Brand of Vehicle in each Family

According to the research, there are many different brands of vehicle in each family. The highest vehicle that the respondents purchase is Proton which is 31%. The lower percentage from the research is 2% only which is Nissan. In the research, we can know those Toyota brands vehicles are under very high percentage among the rest of brands which is 24% (refer to figure 16).

Figure 16: Brand of vehicle in each family

5.3 Rating on current automobile in use

According to the rating table, its shows that most of the respondents are rate perfect and excellent on Toyota vehicle which is 26 on perfect rate and 20 on excellent rate among 46 total Toyota products user. In the table, most probably of respondents have proton vehicle in their family which is 59 total vehicles (refer to figure 17). But through this table its shows that the rating on proton products is on good rating. From the table, it can conclude as many respondents have positive respond on Toyota products. Thus, quality of vehicle products is very important factor which will affect the customer satisfaction.

Figure 17: Rating on current vehicle in use

In conclude data collection from the research shows that Toyota is good in maintaining and control products quality and brand image compare. Therefore, the result from the respondent are mostly agree, or strongly agree to the question which is asking in the research question. Otherwise, according to the research questionnaires, the result shows that level of customer loyalty of Toyota is high compare to the brand. Perfect maintaining on customer loyalty is the important factor that fuelled Toyota to be success in automobile industry.

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