project
A Study on Customer Satisfaction in
Automobile Industry within Saudi Arabia
RESEARCH DISSERTATION
Submitted in fulfillment of the partial requirement for the award of degree of
master of business administration
By Fuad Abdullah Salem Hasan
Student ID: 150007035
Under the Supervision of DR. FARRUKH RAFIQ AHMAD
COLLEGE OF ADMINISTRATIVE AND FINANCIAL SCIENCES
SAUDI ELECTRONIC UNIVERSITY 2018
DECLARATION I, declare that the work on which this dissertation is based, hereby submitted to the University of
Saudi Electronic University, for the degree of Master of Business Administration, has not
previously been submitted by me for a degree at this or any other university.
Student Name: Fuad Abdullah Salem Hasan
Student number: 150007035
Date of Submission: 12/04/2018
Abstract
This paper is a study on customer satisfaction in Automobile industry within Saudi
Arabia. It provides a general sight of the concept of customer satisfaction and goes more
particularity to discuss the concept of customer satisfaction from an Automobile perspective.
Because this study argues that achieving higher levels of customer satisfaction for an
organization is a multifaceted success, it tries to discuss each area that can impact the
organizational overall customer satisfaction from a management perspective and tried also to
reveal how each area affects the consumer‟s satisfaction from his point of view. The study aims
to benefit both Automobile consumers and the Automobile companies in Saudi Arabia through
providing a better understanding of the customers preferences and consumers behaving toward
the Automobile products and service that are available in the marketplace and their needs that are
not available products in order to supply what the consumers need so their need will be fulfilled
and the Automobile companies in the Kingdom of Saudi Arabia can realize a better competitive
advantage among their competitors and earn more revenues.
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Table of Contents
Declaration
Dedication
Abstract
Chapter 1: Introduction ................................................................................................................ 4
1.1 Background ………………….………………………………………………...…… 4
1.2 Research Objectives …………………………………………………………...…… 7
Chapter 2: Literature Review........................................................................................................ 9
2.1 Research and Development: Product Design ………………..….……...…...…..… 11
2.2 Supply Chain and Logistics ……………...……..………………………………… 12
2.3 Marketing and Sales ……...……………………….……………….………...….… 13
2.4 Aftersales Service……………………...………………………..…...……………. 14
2.5 Customer Preferences and Customer Loyalty …..………………………........…… 15
2.6 Measuring Customer Satisfaction …………………..……………………..……… 15
Chapter 3: Research Methodology.............................................................................................. 17
Chapter 4: Data Analysis............................................................................................................. 24
Chapter 5: Conclusion................................................................................................................. 70
5.1 Limitations and Recommendations …………….…..………………...…………… 71
References …………………………………………………………………….……………….. 73
Appendix: The Survey Questionnaire……………………………………..…………………. 77
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Chapter 1: Introduction
In this chapter, a background of research topic will be provided to demonstrate a better
understanding of what the research topic is and why it is important. Also, the objectives, purpose
and the question of this research will be explained. Later on, a literature review will be provided
in the next chapter.
1.1 Background
It is doubtless that customer satisfaction is a key factor of success for any business. Its
importance extends to be the key element for business continuity. That is because of the fact that
the purpose of business existence is to provide a product or service that will be provided to its
customers. That means, for business with no customer satisfaction, customer‟s withdrawal from
consuming the organization‟s product or service will be inevitable. Therefore, there will be no
reason to continue the organizational business hence there will be no one to consume that
product or service. That leads the managers to think of factors that influence customer
satisfaction.
Customer Satisfaction provides the stakeholders and business shareholders with a
measurement that helps to manage and improve their business performance, expand their
domains, and gain more profits (Beard, 2014). Because of that, it has its importance for the
company and their owners. Customer Satisfaction is an indicator of the customers willing to
repeat the purchase experience. So, it is necessary for customer‟s retention.
In general, customer satisfaction can be influenced by each part of the company‟s supply
chain. Supply chain performance can be an unseen utility that boosts customer satisfaction and to
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increase the company‟s profitability (Laverty, 2014). The influence starts from the research and
development activities which concerned mainly in revealing what consumers need and what to
provide to them. After that research and development team will go to the next step which is the
product or service design. It is the first key and crucial area which can influence all the sequence
activities that impact the customer satisfaction positively or negatively. That is because the
product or service design determines to wither the company has succeeded in providing what
consumers need or failed.
Another area that can influence customer satisfaction is the manufacturing area, starting
from procurements, through the logistics, value-adding process, and lead time of delivering the
finished product or service to customer service channels. This area is critical to product or
service quality. Furthermore, the manufacturing process is critical for gaining customer
satisfaction in terms of determining the product or service price through managing the
manufacturing cost and eliminating waste in material, waste of efforts, and cost of labor time.
Additionally, the efficient production process is necessary to reduce the waiting time which
affects the customer satisfaction directly.
An equally significant aspect of customer satisfaction is marketing strategies.
“Establishing appropriate expectations in the minds customers is a function of the pre-purchase
communications the seller has with them. If you set the expectations too low, people won‟t buy
your offering. But if you set the expectations too high, you run the risk that your buyers will be
dissatisfied” (“Principles of Marketing,” 2015). As the market survey is the task of marketing
department within the organization which aims to find the market opportunities through studying
what customers need, it is a part of the process of achieving customer satisfaction. Indeed,
achieving customer satisfaction is shared task between marketing and customer service teams.
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Talking about the sales and customer service activity, it is the direct contact with
customers which make it the most sensitive area that has a colossal impact on customer
satisfaction. The way salesmen treat their customer has a crucial impact on customer‟s delight.
Even with distinctive products or services, customer satisfaction will be dropped without a good
attitude from sales management team.
Yet, with distinct products that have featured design, and with a good supply
management, good marketing strategies, and competitive customer service, there still a number
of customers will not prefer those products. This refers to consumer behaviors and preferences.
Customer behavior is the way consumers select what to purchase. There are several factors that
shape the customer behavior. The needs of the consumer are the first factor that shape customer
behavior, because of that, it is important to understand what the consumers need to provide them
the suitable product or service. Consumer‟s needs diverse according to the functional needs, the
budget-related and financial needs, and preferences needs. However, as the customer‟s needs are
not fixed and susceptible to change based on their individual or social situations, customer
preferences change over time, thus, constant monitoring of consumers preferences is necessary to
retain the current customers and attract newcomers.
As the organizational reputation is impacted by customer satisfaction, also customer
satisfaction can be impacted by the organizational reputation. Typically, the organizational
reputation is demonstrated in the brand name. Brands are the names and symbols and they are
the key element to establish company relationship with customers. Brands represent the
consumer‟s feelings and perception about the product and its performance everything that service
or products mean to customers and finally, brands stay in the customer's mind. Products are
made in a factory, but the brands are created in the mind. Brands are the major enduring asset of
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the company. For example, if Abdul Latif Jameel Company´s every asset they own, building and
every equipment were destroyed in a terrible disaster, they would be able to borrow all the
money to replace it very quickly because of the value of Abdul Latif Jameel's brand. So, brands
are more valuable than the totality of the assets (Khadka & Maharjan, 2017).
1.2 Research Objectives
The Focus of this research is to answer the following question: what factors lead to
raising customer satisfaction score, and what factors lead to customer dissatisfaction,
specifically, in the automobile industry within Saudi Arabia. As the Automobile industry in
Saudi Arabia does not perform manufacturing activities and limited to Automobile retailing, this
paper is going to concentrate more on the retailing activities of the Automobile industry in Saudi
Arabia. Even though Automobile industry in Saudi Arabia is limited to retailing activities, it does
not mean that customer satisfaction will not be affected by the manufacturing activities.
Manufacturing activities overseas have its massive impact on customer satisfaction, since it's
influenced by all major activities done overseas such as the research and development, products
design, product quality, brand reputation, the lead time of delivery and so on. So, because of its
importance to the customer satisfaction, it will be included in this study.
The focus of this paper will be for two main reasons; the first reason is that all
Automobile activities in Saudi Arabia are limited to retailing activities. The second reason is that
“retailers are units that communicate with customers as the last chain of the distribution channel.
Establishing good relationships with customer, satisfying customers and gaining loyal customers
are too important in retailing. In the competition condition today, creating customer satisfaction
and customer loyalty in retailing provides sustainable competitive advantage and differentiation
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from rivals for retailers. There are many factors that create customer satisfaction and customer
loyalty. Customer service is one of the factors that creating customer satisfaction and loyalty”
(Kursunluoglu, 2011).
However, this study is trying to give a wider scope of customer satisfaction management.
Most of the studies have been done with focusing on one or few areas to understand its impact on
customer satisfaction. Those studies were trying to understand how to improve customer
satisfaction by improving one or few areas within the organizations. But this study is going to
study the sequence of activities that impact the customer satisfaction whether positively or
negatively.
The objectives of this study can be summarized in the following points:
x To provide a better understanding of the expectations and requirements of automobile
customers in Saudi Arabia.
x To provide a better understanding of what are the areas that contribute to shaping the
expectations and requirements of automobile customers in Saudi Arabia.
x To help the companies that have Automobile activities to improve their customer service
through improving the production selecting, and improving the way they provide the
service for their customers.
x To understand customer behaviors and reveal their preferences and needs from the
Automobile industry in Saudi Arabia.
x To have a sight on how customer behaviors and preferences differ according to the
gender, income, and customer‟s age.
x And finally, to use the findings as a base for further studies related to the same topic.
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Chapter 2: Literature Review
Since almost twenty years ago, the revolution of the customer service has begun. A
number of business researchers have studied concentrated on customer satisfaction and
customer-focused organizations. Different researchers have explained customer satisfaction in
different ways. In general, customer Satisfaction can be defined as attributes and characteristics
that fulfill the customer‟s needs and desires, in a way that is competitive to the organizational
rivals (Gerpott, Rams & Schindler, 2001). When an organization sells a product or service that
meets the requirements of their customers, the organization can recognize the satisfaction of their
customers. Customer satisfaction depends mainly on the quality of the products that the company
provides, nevertheless, the quality is not the only what consumers are looking for.
A customer is an individual or entity that purchases or consumes a product or service and
importantly selects among various products, services, and suppliers (“Customer,” n.d.). The
customer is the end-goal of a business. It is important to realize and understand that a customer
has a choice. He/she/the entity has a clear choice in who they want to deal with, and because of
this, the „end-goal‟ of every business should be the customer. On the other hand, satisfaction can
be defined as the act of satisfying a need or desire (“Satisfaction,” n.d.). By definition, customer
satisfaction is a measure of how a product or service has met or exceeded a customer‟s
expectation.
As Customer Satisfaction means to meet and exceed the customer‟s expectation, the
organizations then need to join it up with the Customer‟s experiences. One of the customer
experience definitions is that it is the totality of the interactions that a customer does in relation
to a company and its product or service (“Customer Experience,” n.d.). There‟s a good reason for
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attempting to define all these terms. The benefit is that after reading just the opening few
paragraphs, you should at the very least have experienced a bit of edification. One of key
elements that customer relationship management deals with is the customer experience. The total
experience demonstrates and indicates how the customer feels about the organization and its
services. By collecting data through surveys and websites, and papers, or verbal feedback, or any
other techniques support the company in identifying the customer experience of its product or
service.
So, when someone asks, is customer satisfaction measurable? The simple answer is yes,
customer satisfaction is measurable (Krautzel, 2016). In fact, in both the definitions of Customer
Satisfaction as well as Customer Experience, the reference to measurement is used. Customer
satisfaction is a measurement of how a good or service is doing in terms of meeting or exceeding
the customer‟s expectation. A further question is whether this measurement of customer
satisfaction is important to the growth of any business? The simple answer again is yes. That is
because the customer to any business should be the end-goal.
The products and services offered are important and can easily be measured for quality.
However, if the customer is not happy, is not satisfied, has not had their need exceeded, if the
interaction between customer, product and service provider is poor, it is guaranteed that the
customer will not return. Further still, the customer will not refer the organization‟s
product/service or worse, give it a poor review.
This is why the function of a Customer/Client Relationship Manager is vital to any
company. The unfortunate problem is that smaller companies have budget restraints that do not
allow for additional spending on salaries and so on. However, many times there is a disconnect
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between company owner and the end-customer. The owner does not always hold the
relationships with the clients. It‟s usually someone in sales.
Regardless, customer satisfaction and experience speaks to relationships. Salespeople
close deals and move on to the next conquest. Business Developers initiate the relationships in
order for Salespeople to take advantage of any opportunities. It is imperative that good, sound
relationships are forged from the get-go. These relationships, if groomed correctly, over time
spawn new business.
However, in the Automobile industry, the market presents many different cars by well-
known carmakers such as Toyota Motors, Volkswagen, General Motors, Ford Motors, Honda
Motors, Nissan Motors, Hyundai Motors, BMW, and Peugeot through local companies as their
representatives. In order to maintain their products on the market, the companies have to conduct
studies of how their products are satisfying their customers and how to elevate their customer
satisfaction level.
2.1 Research and Development: Product Design
The role of design is considered as one of the most important factors in business and
customer delight. Every company that produces a product or service should be aware of how the
design affects the building of customer satisfaction and loyalty. Furthermore,” in terms of any
business situation, the output of design efforts and investment should arguably be greater than
management expects in order to be recognized as a worthy investment” (Nam & Carnie, n.d.).
As the product is the main concern of the consumer, automobile manufacturing
companies – and the companies in all industries – should keen to use the maximum efforts to
create creative products in terms of its design, its functionality, durability, quality, and the
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appearance. Product designs should meet and exceed the customer‟s expectation, but it is also
important to consider the cost of the design which might be not affordable by a wide range of the
consumers. Because of that, the design should fulfill the maximum consumer‟s need, the
maximum additional options at an affordable cost for the consumers in order to achieve a high
level of customer satisfaction.
Product development can be achieved through multiple processes which start with the
product planning. By the same token, to make a product planning, multiple processes are
involved one of them is to define the attributes of the product design. “Facing with fierce
competition in marketplaces, companies try to determine the settings such that the best customer
satisfaction of products could be obtained, to achieve this, models that relate customer
satisfaction to design attributes need to be developed” (Chan, Kwong & Wong, 2011).
2.2 Supply Chain and Logistics
Supply chain and logistics for the companies are like a central artery for the human body.
To extend it further, a human system must have a steady flow of inputs like oxygen and outputs
like carbon dioxide. Similarly, a supply chain must have inputs and outputs that flow steadily or
it will not be sustainable. For example, if the flow of outputs stops or slows down because
customers are concerned about the sustainability of the company's products, operations, and/or
practices, this will cause inventory clog up the supply chain, which will cause many problems
and which will reduce the sustainability of the entire system.
The waiting line or queue management is a critical part of the supply chain and logistics
that impact the customer satisfaction strongly. It deals with the issue of treatment of customers in
sense reduce wait for time and improvement of service (Stevenson, 2015). Queue management
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deals with cases where the customer arrival is random; therefore, service rendered to them is also
random. By managing the waiting lines, the company can reduce the costs, improve the
profitability, and gain customer loyalty (“MSG Management Study Guide,” n.d.). For customer
population, it can be finite or infinite. The finite population scenario considers a fixed or limited
size of customers visiting the service counter. That means, once served will leave the line thus
reducing overall population of customers. But in an infinite population, subtractions, and
addition of customer do not impact overall workability.
There are seven main metrics for waiting-line performance the Blue Meadows restaurant
management can use, the customer request volume, the average number of replies per request,
resolution rate, first response time, 5average reply time, average reply time, and customer
satisfaction (Papageorgiou, 2016). “Any supply chain is only as strong as its weakest link. A
company can move a product from China to the United States, clear it through Customs, move it
to a distribution center, and fulfill it in record time. But if it doesn‟t deliver the product to
consumers quickly enough, they are not happy, and the company‟s supply chain has failed.”
(Partridge, 2011).
2.3 Marketing and Sales
Customer satisfaction has been defined in a variation with regards to product satisfaction,
satisfaction with the purchase decision experience, satisfaction with the performance attribute,
satisfaction with the store or institution, and satisfaction with pre-purchase experience
(Yazdanifard & Mercy, 2011). Marketing is related to all those attributes. With a good marketing
strategy, the properties of products that attract the consumers will be reached to them properly so
they can realize what makes them satisfied. In contrast, improper marketing strategy will fail to
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have the consumer‟s attention to the advantages of the company‟s products or services. Also,
providing good prices, offers, and discounts - which are the tasks of the marketing department- is
crucial for raising the customer satisfaction.
Also, salesmen behavior and attitude can have a significant effect on customer
satisfaction. The “consistency of a sales team reduces service variability and minimizes potential
mistakes, which enhances the team‟s ability to deliver the promised service dependably and
accurately” (Wang, Hoegg & Dahl, 2018). The sales people are the first line that forms the
customer's attitude about the company in general.
2.4 Aftersales Service
Product support services have become an attractive area for competitive advantage,
especially in the Automobile industry. Some companies earn more than fifty percent of their
profits in aftersales services. “The customer is most concerned about an interruption in the
service that they expect from the product and their worries can be specified into three areas:
reliability, service dependability, and maintenance. In order to provide the most effective
support, a supplier must identify the services that customers value most and their relative
importance” (Koskela, 2002).
As Today‟s markets tend to be more customer oriented, delighting the customers by
meeting their needs of aftersales services through effective maintenance service, and supplying
the part needed and the other needs cannot be neglected. After sales service has it is a huge
impact on customer satisfaction. “After-sale service is important because it helps to ensure that
customers are satisfied with their purchases and in case of any difficulty installing or setting up
equipment, they can receive help” (Maghsoudlou, Mehrani & Azma, 2014).
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2.5 Customer Preferences and Customer Loyalty
Customer preferences are related to the consumer‟s personal needs. It can be defined as
the consumers “expectations, likes and dislikes, motivations and inclinations that drive customer
purchasing decisions. They complement customer needs in explaining customer behavior”
(Spacey, 2016). Any organization should adopt marketing techniques that Appeal to the
preferences of customers. as it is useful to improve their customer satisfaction, it is also useful
for branding, product development, distribution and customer experience. The following are
common types of customer preference (Spacey, 2016).
On the other hand, having a customer loyalty is a precious endowment for any company.
Customer loyalty can be defined as the “likelihood of previous customers to continue to buy
from a specific organization. Great attention is given to marketing and customer service to retain
current customers by increasing their customer loyalty. Organizations employ loyalty programs
which reward customers for repeat business” (“What is customer loyalty,” n.d.). However,
without customer satisfaction there will not be loyalty, so, it is important to make serious effort
to achieve customer loyalty.
2.6 Measuring Customer Satisfaction
Unlike performance management which its requirements can be met through a good
research, an effective customer measurement system is that encouraged by the willingness to
treat the customer and perceive him as the heart of the company. “Customer-focused companies
view customer satisfaction measurement as a means rather than an end as part of a cycle of
continuous improvement in service delivery, and as part of the wider toolkit of customer insight
techniques. Many organizations regularly track their levels of customer satisfaction to monitor
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performance over time and measure the impact of service improvement activity” (HM
Government, 2007).
By measuring customer satisfaction, the company will be able to understand the problems
and key drivers that impact satisfaction or dissatisfaction regarding the company‟s product or
service. When the company understands the importance of customer delight and how to satisfy
its customers, it will be able to use the time, efforts and resources effectively. Measuring
customer satisfaction also allows the company to understand the factors that influence customer
satisfaction and “outside of its control (such as the media) and to differentiate between what
people say influences how satisfied they are, and what is really driving their satisfaction during a
service experience” (HM Government, 2007).
Measuring customer satisfaction assists the company in understanding what it can be
controlled and what cannot be controlled. it the company to concentrate on its customers and
“should galvanize service owners, customer-facing staff, policy, strategy and research staff, as
well as senior management, around the aim of improving the customer experience” (HM
Government, 2007).
There are several techniques to measure customer satisfaction. One of the most common
methods is the survey methodology. This technique collects the data through questionnaires that
answered by the customers directly. There are also several metrics can be used in measuring
customer satisfaction. Customer Satisfaction Score is a standard metrics in which the customers
rate his/her satisfaction with business, product, or service. Net Promoter Score is another metric
that measures the likeliness of a customer referring the company to someone. It measures the
customer loyalty.
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Chapter 3: Research Methodology
As this research is aiming to provide a better understanding about how each part of the
organization and each activity that impacts the preferences of automobile consumers and to give
a better understanding about what are the factors that affect their decision about choosing the
brand, company, or product, survey methodology is used as a proper methodology to gather the
data about people‟s opinions which is the main data source of this study. A survey that is
composed of specific parts is done to get the consumers feedback about each area that might
impact their decisions.
A survey is “a method of sociological investigation that uses question-based or statistical
surveys to collect information about how people think and act” (“Survey Research,” n.d.). The
substance of survey procedure can be demonstrated as questioning people on a specific subject
and then describing their answers (Jackson, 2015). In business research, the survey is a
methodology that collects primary data and is used to examine concepts, mirroring individual‟s
attitude, determine the degree of customer‟s satisfaction, and make a study of specific purposes.
Survey methodology is proper for quantitative or qualitative research.
The questionnaire is a type of surveys. It has two types, quantitative and qualitative
questionnaires, based on the type of study is put for. More specific response gained through
closed-ended questions. Those questions have multiple choices to select from them exclusively.
Then, using the quantitative method, analysis of the answered questions to be conducted, and the
analysis can be visualized through various types of tables and charts that include pie-charts, bar-
charts, counts, and percentages when the questionnaire has open-ended questions, the responses
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recorded can be analyzed using the qualitative method. They encompass discussions and
critically analyze without using counts and equations.
The pros of questionnaires involve the ease of use, quick data collection, low cost. Also,
it has a “higher level of objectivity compared to many alternative methods of primary data
collection” (“Questionnaires,” n.d.). On the other hand, questionnaires also have some cons that
include the possibility of selecting random choices by the participants without even reading or
understating the questions which lead to misleading conclusions. Furthermore, sometimes the
available choices are not enough not cover data that might be useful for the researcher.
Moreover, sometimes participants are not allowed to add their opinions and ideas about the issue
because of the absence of relevant questions or relevant choices.
One of the widely used types of questionnaires is the online questionnaires or known
commonly as online surveys. It is a “systematic gathering of data from the target audience
characterized by the invitation of the respondents and the completion of the questionnaire over
the World Wide Web” (Sincero, n.d.). It is a fast way to conduct the survey and can be
distributed and reach many people in short time.
The advantages of online questionnaires include being easy for data collection since the
Internet is a common media that is used by millions of people with a perfect variety that makes
the samples choosing is better. So, a survey that requires a large number of participants or
specific criteria for sample selection can be obtained via the international network. The
questionnaire is quickly distributable and participated by the respondents in short period of time,
particularly if there was a something that is given to their responding for their participation. The
advantages also include the ease of analyzing the gathered data since the responses are recorded
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automatically in tables or databases that can be used in the digital analyzing utilities and
software.
Method Purpose Advantages Disadvantages
Questionnaires
Conducted in order to gather large size of
information in a short period of
time
Members of the sample group can
remain anonymous Considerably cheaper than most of the other primary data collection
methods
Possibility of generating large amount of data
Difficulties of ensuring greater depth for the research
The problem of the „first choice selection‟
Interviews
Conducted in order to reflect emotions and
experiences, and explore issues with a greater
focus
The possibility to direct the process of data
collection The possibility to
collect the specific type of information required
Great amount of time required in order to arrange and conduct interviews and primary data collection.
Additional costs might be incurred associated with
arranging and conducting interviews, travelling etc.
Potential for interviewee bias
Documentation review
Conducted in order to study
issues that have developed over a specific period
of time
Possibility to retrieve comprehensive
information
Challenges associated with access to documentation
Inflexibility of the research process
Source: Survey Method. (n.d.). Retrieved March 31, 2018, from https://research-
methodology.net/research-methods/survey-method/
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However, to measure customer satisfaction there are several questionnaires that can be
used. Each questionnaire aims to measure a specific area for a certain purpose. Customer
satisfaction surveys, in general, can be classified according to the survey‟s goal. Depending on
the main goal of the customer satisfaction surveys, there are different types of implementations:
Product Survey, staff & service surveys, pricing surveys, and NPS surveys (Types of Customer
Satisfaction Surveys, n.d.).
A Product survey measures the product value of specific company or companies to their
consumers. The questions this questionnaire containing reveal how the consumers feel about the
company‟s products or services such as the product/service „s quality, the lifespan of that
product, the design, the uniformity, processability, and variation of product models.
Furthermore, this type of surveys is perfect for revealing the difference between the consumer‟s
expectation and the real product or service condition.
A staff and service surveys measure the service value of specific company or companies
to their consumers. It is a customer satisfaction survey that uncovers and provides a better
understanding of how the organization‟s customers feel about their service team. “Starting with
representative's availability and knowledge, the reliability of returning calls, courtesy from sales
staff, friendliness of the sales staff, complaint resolution, responsiveness to inquiries, technical
service and ending with the after-sales service”(Types of Customer Satisfaction Surveys, n.d.).
A delivery survey measures the delivery related issues such as the lead time and the
condition of the product, and how it performs from the consumer‟s perspective. Delivery surveys
are important for evaluating the quality of delivery activities. For example, the company would
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want to know if the products or services have been delivered to its consumers on time, and if the
products that delivered and transported are intact damage-free or not.
A Pricing survey measures the factors that might influence the price of the product or
service that the company is providing. It helps in the decisions that related to determining the
product‟s price for the new products or services, and the decision related to rising of decreasing
the prices for the current products and services. This type of survey uncovers the customers‟
perception of the price they are willing to pay. The company might want to ask about the
expected market price, and value that customers get for the money they pay.
A Net Promoter Score survey (NPS survey) is a simple measuring tool that is obviously
interested in only one aspect that is the customer loyalty. This type was presented by Reichheld‟s
Harvard Business Review article “One Number you need to grow” (Reichheld, 2003). The most
important question Net Promoter Score survey is that how likely is it that the customer
recommends the company or product. Moreover, to have a better analysis, the company might
ask an additional question. It might be for example a question about the likelihood of consumer„s
willingness to repeat the purchase experience from the company. When the answers are
collected, “The score is calculated based upon one question by sorting respondents into
promoters, neutrals, and detractors, followed by subtracting the percentage of respondents that
are Detractors from the percentage that are Promoters” (Types of Customer Satisfaction Surveys,
n.d.).
However, for this study, a prototype survey is developed depending on the factors to be
uncovered related to the customer satisfaction in the automobile industry. This prototype is
composed of the product type of surveys, staff and service surveys, delivery surveys, pricing
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surveys, and loyalty surveys (NPS). The questions were designed into three sections, the general
questions, core questions, and supplementary questions.
The general questions are intended for categorizing the participants. The categorizing are
chosen based on three criterions, the age, gender, and monthly income. Those three categories
will help to understand the trends for each group. The core questions are intended for measuring
the customer satisfaction and the factors that influence their decision to choose a specific
product, while the supplementary question is intended to obtain the consumer‟s opinions that
might be useful for this study.
The core questions measure the factors related to the products design, supply chain,
marketing, sales, aftersales service, and customer loyalty. For product design part, the product
survey technique is used in designing the survey of this study. While for supply chain aspect, the
study mainly focused on the lead time impact, so, the delivery survey technique is used in
designing the survey of this study.
Regarding the marketing aspect, pricing survey is used to reveal the influence of product
prices on the consumer‟s preferences. In addition, another question that relates to the offers,
marketing campaigns, and marketing advertisements were added. Also, some questions that
related to marketing activities were added such as providing multiple models to expand the
choices for the consumers.
Moreover, as one of the most important areas that influence the customer behavior and
preferences, sales centers and salesmen were also included in this study. Staff and service
surveys techniques were applied in designing the survey of this study. The questions addressed
the salesmen attitude, branches availability, and telesales services.
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An equally significant aspect of customer concerns, spare part, maintenance service and
other after-sales services is important to be included in this study. Because of that, aftersales
survey techniques also were considered in designing the survey for this study. The questions
addressed are intended to measure the importance of aftersales services to the consumers.
Finally, customer loyalty is a key role player factor that affects the preferences of
Automobile products consumers. Because of that, NPS surveys technique was considered to be
used in this study. It is demonstrated in how the consumers feel about the brand of the products
they are willing to purchase from.
The questions were designed to be simple and understandable for the participants.
Moreover, the number of questions was limited as possible to avoid boring and withdrawal of the
participants. To do so, some questions that measure multiple aspects have merged in a way that
does not affect the results and make the questionnaire simpler. Also, the questions were asked in
both English and Arabic language to allow both speakers to participate without the problem of
the ability to understand a particular language.
The online survey was designed through Google Forms tool which allows designing
surveys flexibly and in an attractive design. When the survey design was completed, it was
distributed to the targeted people – which are selected randomly within Saudi Arabia- through
the internet, particular via the social media websites and applications. Also, it was distributed to
friends and relatives directly who also shared it randomly for their contacts. Following are the
questions and the choices that included in this study‟s survey:
24
Chapter 4: Data Analysis
A hundred forty-seven participants have completed the survey. Ninety-nine of them are
males with a percentage of 67.35% of the total ground, and 48 are females with a percentage of
32.65% from the total ground. Fifteen of the participants with percentage of 10.20% from the
total participants are under eighteenth of age, eighteen of the participants with percentage of
12.24% of the total participants are between eighteen and twenty-four of age, twenty-six of the
participants with percentage of 17.69% of the total participants are between twenty-four and
thirty of age, sixty-three of the participants with percentage of 42.86% of the total participants
are between thirty and forty of age, seventeen of the participants with percentage of 11.56% of
the total participants are between forty and fifty of age, and eight of the participants with
percentage of 5.44% are more than fifty of the age.
25
Chart No.1: Participants Share – By Gender
Chart No.2: Participants Share – By Age
As the participants were grouped by gender and age, they are also grouped by the
monthly income. The groups were chosen as the following: low income which allocated from
Zero up to three thousands Saudi Riyals monthly, low-medium income which allocated from
three thousands Saudi Riyals up to six thousands Saudi Riyals, medium-medium income which
allocated from six thousands Saudi Riyals up to nine thousands Saudi Riyals, high-medium nine
thousands Saudi Riyals up to twelve thousands Saudi Riyals, and high income which allocated
for more than twelve thousands Saudi Riyals monthly.
Forty-nine of the participants with a percentage of 33.33% of the total participants are
from the low-income category. Eighteen of the participants with a percentage of 12.24% of the
26
total participants are from the low-medium income category. Twenty-eight of the participants
with a percentage of 19.05% of the total participants are from the medium-medium income
category. Thirteen of the participants with a percentage of 8.84% from the total participants are
from the high-medium income category, and thirty-nine of the participants with a percentage of
26.53% from the total participants are from the high-income category.
Chart No.3: Participants Share – By Income
The above three charts show the participant‟s general groups that can be used to be
correlated with their preferences based on their answers to each part of this study. For example,
preferring the products with the lowest prices might be related to the monthly income for the
participant. Also, preferring products with additional accessories or additional specifications
might be a trend for those with high income. In the same matter, gender and age might be
27
considerable factors that impact the preferences, which will be revealed in the next part of the
analysis.
In the next part of the analysis, the qualitative information is converted into quantitative
data. This is done for the core questions to have calculable information that can be ultimate
comparable to each other. This has been done through giving each answer a weight that indicates
the importance of the item to the customer so, the factors that influence the customer satisfaction
can be weighted and the logic calculation applied on it. The weight of each answer has
distributed as follows:
1- The “Very Important” answer is given a weight of four.
2- The “Somewhat Important” answer is given a weight of three.
3- The “Neutral” answer is given a weight of two.
4- The “Somewhat Not Important” answer is given a weight of one.
5- The “Absolutely Not Important” answer is given a weight of zero.
Each respond is multiplied by its weight. For example, when ten participants respond with the
Somewhat Important answer, the calculation will be ten multiplied by three so the score will be
thirteen. Then, after multiplying each respond to its weight, the sum of total scores will be the
score that item. This is applied to each item of the core questions. The first part of core questions
was assuming that the participant is going to buy a new car. The questionnaire asks about how
important is each item from the list on the decision of choosing a specific car.
The first item was the brand. For the brand, forty-two participants have responded with
the Very Important answer which represents 28.57% of the total participants with a weighted
score of 168. Forty-seven participants have responded with the Somewhat Important answer
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which represents 31.97% of the total participants with a weighted score of 141. Fifteen
participants have responded with the Neutral answer which represents 10.20% of the total
participants with a weighted score of 30. Nineteen participants have responded with the
Somewhat Not Important answer which represents 12.93% of the total participants with a
weighted score of 19, while twenty-four participants have responded with the Absolutely Not
Important answer which represents 16.33% of the total participants with a weighted score of
zero. The total weighted score of the brand importance is 358.
Table No.1: Responses to Brand Importance
Chart No.4: Responses to Brand Importance
Brand Responses Percentage Weighted Score Very Important 42 28.57% 168 Somewhat Important 47 31.97% 141 Neutral 15 10.20% 30 Somewhat Not Important 19 12.93% 19 Absolutely Not Important 24 16.33% 0 Grand Total 147 100.00% 358
29
The second item was the Main Specifications of the product. For the Main Specifications
of the product, seventy-two participants have responded with the Very Important answer which
represents 48.98% of the total participants with a weighted score of 288. Thirty-eight participants
have responded with the Somewhat Important answer which represents 25.85% of the total
participants with a weighted score of 114. Four participants have responded with the Neutral
answer which represents 2.72% of the total participants with a weighted score of 8. Seventeen
participants have responded with the Somewhat Not Important answer which represents 11.56%
of the total participants with a weighted score of 17, while sixteen participants have responded
with the Absolutely Not Important answer which represents 10.88% of the total participants with
a weighted score of zero. The total weighted score of the main specifications of the product
importance is 427.
Table No.2: Responses to Main Specifications Importance
Main Specifications Responses Percentage Weighted Score Very Important 72 48.98% 288 Somewhat Important 38 25.85% 114 Neutral 4 2.72% 8 Somewhat Not Important 17 11.56% 17 Absolutely Not Important 16 10.88% 0 Grand Total 147 100.00% 427
30
Chart No.5: Responses to Main Specifications Importance
The third item was the Accessories and Recent Technology. For the Accessories and
Recent Technology, twenty-five participants have responded with the Very Important answer
which represents 17.01% of the total participants with a weighted score of 100. Fifty-eight
participants have responded with the Somewhat Important answer which represents 39.46% of
the total participants with a weighted score of 174. Twenty-one participants have responded with
the Neutral answer which represents 14.29% of the total participants with a weighted score of 42.
Eighteen participants have responded with the Somewhat Not Important answer which represents
12.24% of the total participants with a weighted score of 18, while twenty-five participants have
responded with the Absolutely Not Important answer which represents 17.01% of the total
participants with a weighted score of zero. The total weighted score of the accessories and recent
technology importance is 334.
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Table No.3: Responses to Accessories and Recent Technology Importance
Chart No.6: Responses to Accessories and Recent Technology Importance
The fourth item was the Models Availability. For the Models Availability, Thirteen
participants have responded with the Very Important answer which represents 8.84% of the total
participants with a weighted score of 52. Forty-four participants have responded with the
Somewhat Important answer which represents 29.93% of the total participants with a weighted
score of 132. Thirty-six participants have responded with the Neutral answer which represents
24.49% of the total participants with a weighted score of 72. Twenty-three participants have
Accessories and Recent Technology Responses Percentage Weighted Score Very Important 25 17.01% 100 Somewhat Important 58 39.46% 174 Neutral 21 14.29% 42 Somewhat Not Important 18 12.24% 18 Absolutely Not Important 25 17.01% 0 Grand Total 147 100.00% 334
32
responded with the Somewhat Not Important answer which represents 15.65% of the total
participants with a weighted score of 23, while thirty-one participants have responded with the
Absolutely Not Important answer which represents 21.09% of the total participants with a
weighted score of zero. The total weighted score of variable models importance is 279.
Table No.4: Responses to Models Availability Importance
Chart No.7: Responses to Models Availability Importance
Models Availability Responses Percentage Weighted Score Very Important 13 8.84% 52 Somewhat Important 44 29.93% 132 Neutral 36 24.49% 72 Somewhat Not Important 23 15.65% 23 Absolutely Not Important 31 21.09% 0 Grand Total 147 100.00% 279
33
The fifth item was the Prices. For the Prices, ninety-nine participants have responded
with the Very Important answer which represents 67.35% of the total participants with a
weighted score of 396. Eleven participants have responded with the Somewhat Important answer
which represents 7.48% of the total participants with a weighted score of 33. Five participants
have responded with the Neutral answer which represents 3.40% of the total participants with a
weighted score of 10. Fourteen participants have responded with the Somewhat Not Important
answer which represents 9.52% of the total participants with a weighted score of 14, while
eighteen participants have responded with the Absolutely Not Important answer which represents
12.24% of the total participants with a weighted score of zero. The total weighted score of the
prices importance is 453.
Table No.5: Responses to Prices Importance
Prices Responses Percentage Weighted Score Very Important 99 67.35% 396 Somewhat Important 11 7.48% 33 Neutral 5 3.40% 10 Somewhat Not Important 14 9.52% 14 Absolutely Not Important 18 12.24% 0 Grand Total 147 100.00% 453
34
Chart No.8: Responses to Prices Importance
The sixth item was the Offers and Discounts. For the Offers and Discounts, sixty-one
participants have responded with the Very Important answer which represents 41.50% of the
total participants with a weighted score of 244. Thirty-six participants have responded with the
Somewhat Important answer which represents 24.49% of the total participants with a weighted
score of 108. Fifteen participants have responded with the Neutral answer which represents
10.20% of the total participants with a weighted score of 30. Twenty participants have responded
with the Somewhat Not Important answer which represents 13.61% of the total participants with
a weighted score of 20, while Fifteen participants have responded with the Absolutely Not
Important answer which represents 10.20% of the total participants with a weighted score of
zero. The total weighted score of the offers and discounts importance is 402.
35
Table No.6: Responses to Offers and Discounts Importance
Chart No.9: Responses to Offers and Discounts Importance
The seventh item was the Advertisements. For the Advertisements, thirteen participants
have responded with the Very Important answer which represents 8.84% of the total participants
with a weighted score of 52. Fourteen participants have responded with the Somewhat Important
answer which represents 9.52% of the total participants with a weighted score of 42. Thirty-three
participants have responded with the Neutral answer which represents 22.45% of the total
Offers and Discounts Responses Percentage Weighted Score Very Important 61 41.50% 244 Somewhat Important 36 24.49% 108 Neutral 15 10.20% 30 Somewhat Not Important 20 13.61% 20 Absolutely Not Important 15 10.20% 0 Grand Total 147 100.00% 402
36
participants with a weighted score of 66 Thirty-three participants have responded with the
Neutral answer which represents 22.45% of the total participants with a weighted score of 33,
while fifty-four participants have responded with the Absolutely Not Important answer which
represents 36.73% of the total participants with a weighted score of zero. The total weighted
score of the advertisements importance is 193.
Table No.7: Responses to Advertisements Importance
Chart No.10: Responses to Advertisements Importance
Advertisements Responses Percentage Weighted Score Very Important 13 8.84% 52 Somewhat Important 14 9.52% 42 Neutral 33 22.45% 66 Somewhat Not Important 33 22.45% 33 Absolutely Not Important 54 36.73% 0 Grand Total 147 100.00% 193
37
The eighth item was the Customer Service. For the Customer Service, sixty-two
participants have responded with the Very Important answer which represents 42.18% of the
total participants with a weighted score of 248. Thirty participants have responded with the
Somewhat Important answer which represents 20.41% of the total participants with a weighted
score of 90. Fourteen participants have responded with the Neutral answer which represents
9.52% of the total participants with a weighted score of 28. Twenty participants have responded
with the Somewhat Not Important answer which represents 13.61% of the total participants with
a weighted score of 20, while twenty-one participants have responded with the Absolutely Not
Important answer which represents 14.29% of the total participants with a weighted score of
zero. The total weighted score of the customer service importance is 386.
Table No.8: Responses to Customer Service Importance
Customer Service Responses Percentage Weighted Score Very Important 62 42.18% 248 Somewhat Important 30 20.41% 90 Neutral 14 9.52% 28 Somewhat Not Important 20 13.61% 20 Absolutely Not Important 21 14.29% 0 Grand Total 147 100.00% 386
38
Chart No.11: Responses to Customer Service Importance
The ninth item was the Telesales. For the Telesales Service, twenty-one participants have
responded with the Very Important answer which represents 14.29% of the total participants with
a weighted score of 84. Twenty-nine participants have responded with the Somewhat Important
answer which represents 19.73% of the total participants with a weighted score of 87. Nineteen
participants have responded with the Neutral answer which represents 12.93% of the total
participants with a weighted score of 38. Thirty-five participants have responded with the
Somewhat Not Important answer which represents 23.81%of the total participants with a
weighted score of 35, while forty-three participants have responded with the Absolutely Not
Important answer which represents 29.25%of the total participants with a weighted score of zero.
The total weighted score of the telesales importance is 244.
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Table No.9: Responses to Telesales Importance
Chart No.12: Responses to Telesales Importance
The tenth item was the Centers Availability and its Locations. For the Centers
Availability and its Locations, forty-two participants have responded with the Very Important
answer which represents 28.57% of the total participants with a weighted score of 168. Thirty-
nine participants have responded with the Somewhat Important answer which represents 26.53%
of the total participants with a weighted score of 117. Twenty-one participants have responded
Telesales Responses Percentage Weighted Score Very Important 21 14.29% 84 Somewhat Important 29 19.73% 87 Neutral 19 12.93% 38 Somewhat Not Important 35 23.81% 35 Absolutely Not Important 43 29.25% 0 Grand Total 147 100.00% 244
40
with the Neutral answer which represents 14.29% of the total participants with a weighted score
of 42. Twenty participants have responded with the Somewhat Not Important answer which
represents 13.61% of the total participants with a weighted score of 20, while twenty-five
participants have responded with the Absolutely Not Important answer which represents 17.01%
of the total participants with a weighted score of zero. The total weighted score of the center
availability and its locations importance is 347.
Table No.10: Responses to Centers Availability and its Locations Importance
Chart No.13: Responses to Centers Availability and its Locations Importance
Centers Availability and its Locations Responses Percentage Weighted Score Very Important 42 28.57% 168 Somewhat Important 39 26.53% 117 Neutral 21 14.29% 42 Somewhat Not Important 20 13.61% 20 Absolutely Not Important 25 17.01% 0 Grand Total 147 100.00% 347
41
The eleventh item was the Availability of Spare Parts and Maintenance Centers. For the
Availability of Spare Parts and Maintenance Centers, eighty-six participants have responded with
the Very Important answer which represents 58.50% of the total participants with a weighted
score of 344. Twenty-two participants have responded with the Somewhat Important answer
which represents 14.97% of the total participants with a weighted score of 66. Nine participants
have responded with the Neutral answer which represents 6.12% of the total participants with a
weighted score of 18. Sixteen participants have responded with the Somewhat Not Important
answer which represents 10.88% of the total participants with a weighted score of 16, while
fourteen participants have responded with the Absolutely Not Important answer which represents
9.52% of the total participants with a weighted score of zero. The total weighted score of the
availability of spare parts and maintenance centers importance is 444.
Table No.11: Responses to Availability of Spare Parts/Maintenance Centers Importance
Availability of Spare Parts and Maintenance Centers Responses Percentage Weighted Score Very Important 86 58.50% 344 Somewhat Important 22 14.97% 66 Neutral 9 6.12% 18 Somewhat Not Important 16 10.88% 16 Absolutely Not Important 14 9.52% 0 Grand Total 147 100.00% 444
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Chart No.14: Responses to Availability of Spare Parts/Maintenance Centers Importance
The twelfth item was the Spare Parts Prices. For the Spare Parts Prices, eighty-nine
participants have responded with the Very Important answer which represents 60.54% of the
total participants with a weighted score of 356. Twenty participants have responded with the
Somewhat Important answer which represents 13.61%of the total participants with a weighted
score of 60. Seven participants have responded with the Neutral answer which represents 4.76%
of the total participants with a weighted score of 14. Fifteen participants have responded with the
Somewhat Not Important answer which represents 10.20% of the total participants with a
weighted score of 15, while sixteen participants have responded with the Absolutely Not
Important answer which represents 10.88% of the total participants with a weighted score of
zero. The total weighted score of the spare parts prices importance is 445.
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Table No.12: Responses to Spare Parts Prices Importance
Chart No.15: Responses to Spare Parts Prices Importance
The last item was the Warranty. For the Warranty, eighty-five participants have
responded with the Very Important answer which represents 57.82% of the total participants with
a weighted score of 340. Twenty-five participants have responded with the Somewhat Important
answer which represents 17.01%of the total participants with a weighted score of 75. Six
participants have responded with the Neutral answer which represents 4.08% of the total
Spare Parts Prices Responses Percentage Weighted Score Very Important 89 60.54% 356 Somewhat Important 20 13.61% 60 Neutral 7 4.76% 14 Somewhat Not Important 15 10.20% 15 Absolutely Not Important 16 10.88% 0 Grand Total 147 100.00% 445
44
participants with a weighted score of 12. Thirteen participants have responded with the
Somewhat Not Important answer which represents 8.84%of the total participants with a weighted
score of 13, while eighteen participants have responded with the Absolutely Not Important
answer which represents 12.24%of the total participants with a weighted score of zero. The total
weighted score of the warranty importance is 440.
Table No.13: Responses to Warranty Importance
Chart No.16: Responses to Warranty Importance
Warranty Responses Percentage Weighted Score Very Important 85 57.82% 340 Somewhat Important 25 17.01% 75 Neutral 6 4.08% 12 Somewhat Not Important 13 8.84% 13 Absolutely Not Important 18 12.24% 0 Grand Total 147 100.00% 440
45
By comparing the total weighted score of each item, we get the following ranking of the
importance of each of them to the customers:
Chart No.17: Total Weighted Score of Items Importance to the Automobile Consumers
Table No.14: Ranking of Important items to the Automobile Consumers
Ranking Measured Item Total Socre 1 Price 453 2 Spare Parts Prices 445 3 Availability of Spare Parts and Maintenance Centers 444 4 Warranty 440 5 Main Specifications 427 6 Offers and Discounts 402 7 Customer Service 386 8 Brand 358 9 Centers Availability and its Locations 347
10 Accessories and Recent Technology 334 11 Models Availability 279 12 Telesales 244 13 Advertisements 193
46
The second part of core questions was about the lead time. There were two questions
related to the lead time. The first question asks the participants about the maximum acceptable
waiting time from their buy order till the car's delivery to them. This question is intended to
reveal the ideal lead time that Automobile companies in Saudi Arabia should not exceed it.
Twenty-three participants have declared that the delivery of the purchased vehicle should
be immediately at the time of purchase order. This count represents 15.65% of the total
participants. Forty-eight participants have declared that the delivery of the purchased vehicle
should be within three days starting from the purchase order day. This count represents 32.65%
of the total participants.
Forty-nine participants have declared that the delivery of the purchased vehicle should be
within one week starting from the purchase order day. This count represents 33.33% of the total
participants. Sixteen participants have declared that the delivery of the purchased vehicle should
be within two weeks starting from the purchase order day. This count represents 10.88% of the
total participants.
Six participants have declared that the delivery of the purchased vehicle should be within
one month starting from the purchase order day. This count represents 2.04% of the total
participants. While two participants have declared that the delivery of the purchased vehicle
should be within two months starting from the purchase order day. This count represents 1.36%
of the total participants.
47
Chart No.18: Participant Responses Regarding the Acceptable Lead Time Days
The second related to lead time question of the questionnaire was about the influence of
the time period from their buy order till the car's delivery on their decision to buy a specific
vehicle. This question shows the importance of committing the acceptable lead time and its
impact on the customer loyalty.
In this part, a scale from Zero – which means no influence – up to ten – which means
strong influence – was provided to determine the tendency of cancellation the purchase order due
to not committing the lead time from the seller‟s side. To calculate the intensity of the influence,
the 1 on the scale was given a zero weigh, the 2 on the scale was given a one weigh, the 3 on the
scale was given a two weigh, the 4 on the scale was given a three weigh, the 5 on the scale was
given a four weigh, the 6 on the scale was given a five weigh, the 7 on the scale was given a six
48
weigh, the 8 on the scale was given a seven weigh, the 9 on the scale was given an eight weigh,
and the 10 on the scale was given a nine weigh.
To calculate the total influence intensity of not committing the lead time limit, it is
calculated as the following: when all participants response in scale with 1 – no influence – the
total score will be zero (147 participants x Zero weight = Zero), while when all participants
response in scale with 1 – strong influence – the total score will be 1323 (147 participants x 9
weight = 1323). So, the total weighted scale will be from zero to 1323, neutral zone will be the
mid-point of 661.5, and the actual intensity will be the sum of responses multiplied by their
weights.
However, seven participants have responded with 1 on the scale, which represents 4.76%
of the total participants with a weighted score of zero. Three participants have responded with 2
on the scale, which represents 2.04% of the total participants with a weighted score of 3. Eleven
participants have responded with 3 on the scale, which represents 7.48% of the total participants
with a weighted score of 22.
Seven participants have responded with 4 on the scale, which represents 4.76% of the
total participants with a weighted score of 21. Thirty-two participants have responded with 5 on
the scale, which represents 21.77% of the total participants with a weighted score of 128.
Eighteen participants have responded with 6 on the scale, which represents 12.24% of the total
participants with a weighted score of 90. Seventeen participants have responded with 7 on the
scale, which represents 11.56% of the total participants with a weighted score of 102.
Twenty-four participants have responded with 8 on the scale, which represents 16.33% of
the total participants with a weighted score of 168. Six participants have responded with 9 on the
49
scale, which represents 4.08% of the total participants with a weighted score of 48, while twenty-
two participants have responded with 10 on the scale, which represents 14.97% of the total
participants with a weighted score of 198. The total weighted score of the impact of the lead time
commitment on consumer‟s purchase decision.
Chart No.19: Impact of Lead Time Commitment on the Consumer’s Purchase Decision
However, to have a better understanding of how is the relationship between the gender of
the participant and his/her preferences in terms of Automobile satisfaction criterions, the
following charts show the percentage of responses for each gender:
50
Chart No.20: Brand Importance to Each Gender
Chart No.21: Main Specifications Importance to Each Gender
51
Chart No.22: Accessories and Recent Technology Importance to Each Gender
Chart No.23: Models Availability Importance to Each Gender
52
Chart No.24: Prices Importance to Each Gender
Chart No.25: Offer and Discounts Importance to Each Gender
53
Chart No.26: Advertisements Importance to Each Gender
Chart No.27: Customer Service Importance to Each Gender
54
Chart No.28: Telesales Service Importance to Each Gender
Chart No.29: Centers Availability Importance to Each Gender
55
Chart No.30: Availability of Spare Parts/ Maintenance Importance to Each Gender
Chart No.31: Spare Parts Prices Importance to Each Gender
56
Chart No.32: Warranty Importance to Each Gender
Also, to have a better understanding of how is the relationship between the age of the
participant and his/her preferences in terms of Automobile satisfaction criterions, the following
charts show the percentage of responses for each age group:
Chart No. 33: Brand Importance to Each Age Group
57
Chart No.34: Main Specifications Importance to Each Age Group
Chart No.35: Accessories and Recent Technology Importance to Each Age Group
58
Chart No.36: Models Availability Importance to Each Age Group
Chart No.37: Prices Importance to Each Age Group
59
Chart No.38: Offer and Discounts Importance to Each Age Group
Chart No.39: Advertisements Importance to Each Age Group
60
Chart No.40: Customer Service Importance to Each Age Group
Chart No.41: Telesales Service Importance to Each Age Group
61
Chart No.42: Centers Availability Importance to Each Age Group
Chart No.43: Availability of Parts/ Maintenance Importance to Each Age Group
62
Chart No.44: Spare Parts Prices Importance to Each Age Group
Chart No.45: Warranty Importance to Each Age Group
63
Also, to have a better understanding of how is the relationship between the monthly
income of the participant and his/her preferences in terms of Automobile satisfaction criterions,
the following charts show the percentage of responses for each monthly income group:
Chart No. 46: Brand Importance to Each Income Group
Chart No.47: Main Specifications Importance to Each Income Group
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Chart No.48: Accessories and Recent Technology Importance to Each Income Group
Chart No.49: Models Availability Importance to Each Income Group
65
Chart No.50: Prices Importance to Each Income Group
Chart No.51: Offer and Discounts Importance to Each Income Group
66
Chart No.52: Advertisements Importance to Each Income Group
Chart No.53: Customer Service Importance to Each Income Group
67
Chart No.54: Telesales Service Importance to Each Income Group
Chart No.55: Centers Availability Importance to Each Income Group
68
Chart No.56: Availability of Spare Parts/ Maintenance Importance to Each Income Group
Chart No.57: Spare Parts Prices Importance to Each Income Group
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Chart No.58: Warranty Importance to Each Income Group
In the end, the survey contained a final part that allows the participants to provide their
comments, opinions, and ideas. This part was optional, because of that not all participant have
provided their individual ideas. However, in spite of the few comments received from the
participants, there still some of the comments useful. One of the participants has declared that
product sustainability and durability is the main factor that influences his decision of choosing a
specific product. Another participant has declared that the main factor that influences his
decision of choosing a specific product is that the value of what he gets in contrast to what he
paid. If the benefits he will get from the products worth the money he pays or more he will
decide to purchase that product whatever the price is.
Another participant has declared that the main factor that influences his decision of
choosing a specific product is that how easy is to purchase the product. This is related to routine
procedures, the required documents and other requirements, customer service, and lead time
altogether. Other participants have declared variable factors that are parts of the addressed
factors such as the product factor and others.
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Chapter 5: Conclusion, Limitations &Recommendations
The conclusion of this research is summarized in this chapter. This study has focused on
customer satisfaction in Automobile industry within Saudi Arabia. The study has been conducted
through a survey methodology of data collecting which has been distributed through the internet
to get a random sample.
In the introduction and literature parts, this study has shown that the customer satisfaction
is a crucial element for business successes. That is because of the fact that the customers are the
reason for business existence. Hence the company‟s customers consume the products and
services that are provided by that company, so the company/organization can provide more
quantities of their products or services thus, there will be revenues make the business continuity
is rational manner. The same is applicable to each company/organization, including the
Automobile industry in Saudi Arabia and everywhere around the globe.
The analysis of the collected data has revealed the most important area that should
Automobile companies give it a priority in their management activities. The item number one
that is attractive to Automobile consumers in Saudi Arabia is the prices. Because of that,
Automobile companies within Saudi Arabia should give the cost reduction the highest priority in
order to guarantee a better customer satisfaction. This can be achieved through; 1- selling
inexpensive products; 2- eliminating all types of wastes such as operational process waste, time
waste, efforts waste, damage incidents, and wastes of unneeded activities and processes.
Supply chain carries out a lot of activities that can raise the total cost and subsequently
leads to raising the products prices. By the same token, supply can reduce the total cost if
managed properly. Reduction of supply chain costs for sure a leads to reduce the products prices.
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Using the lean supply chain management is a good strategy to decrease total cost and products
costs (Ugochukwu, Engström & Langstrand, 2012).
However, the price is not the only factor that affects the customer satisfaction of the
Automobile consumers, there are several factors might have a significant impact. The analysis of
the study has shown that unlike the expectations, spare parts prices comes in the second rank of
important factors after the products prices that they are looking for. Spare parts prices, spare
parts/maintenance centers availability are even more important than the factor of main
specifications of the products which expected to be the first factor that leads the consumer's
decision about purchasing a specific vehicle. So, the Automobile companies should be careful
and monitor the preferences of their customers, as the preferences are not fixed and can be
changed with time.
5.1 Limitations and Recommendations
Although the research has reached its aims, there were some unavoidable limitations.
First, because of the time limit, this research was conducted with a small sized sample of the
population. The participating count was increasing at the time of taking the sample but the
deadline for submitting this research was so close. Therefore, to generalize the results for larger
groups, the study should have involved more participants at different cities in Saudi Arabia with
wider and detailed grouping methodology. Also, further studies are recommended to be
conducted to measure the correlation between some criterions such the age, gender, nationality,
past experience and so on with the Automobile customer‟s behavior and preferences.
Furthermore, it is recommended to conduct further studies using different methodologies
and different resources for data collections. For Automobile companies, it is recommended to
72
keep detailed data of their customers to be used in the future customer satisfaction studies. Also,
conducting periodical surveys through different channels such as the internet, the telephones, and
direct interviews with their customers are highly recommended.
Automobile companies should be aware of the dynamic and changeable consumer‟s
behaviors and preferences. They should spontaneously and continuously monitor the internal and
external factors that cause a change in customer satisfaction levels of their customers. At the
same time, they should monitor how their competitors are developing and attracting more
customers and strive to have a competitive advantage to keep and retain their customers and
attract more from their rivals.
73
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Appendix:
The Survey Questionnaire
x What is Your Age?
o From 0 – 18
o From 18 – 24
o From 24 – 30
o From 30 – 40
o From 40 – 50
o More than 50
x Please Select Your Gender?
o Male
o Female
x Please Select Your monthly Income Category
o 0 – 3000 SR
o From 3000 SR – 6000 SR
o From 6000 SR – 9000 SR
o From 9000 SR – 12000 SR
o More than 12000 SR
x Did you purchase a car before?
o Yes, I have previous car purchase experience.
o No, I do not have previous car purchase experience.
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x Assume that you are going to buy a new car, how important is each of the following on
your decision of choosing the car:
o The Brand :
� Very Important
� Somewhat Important
� Neutral
� Somewhat Not Important
� Absolutely Not Important
o The Car's Main Specifications
� Very Important
� Somewhat Important
� Neutral
� Somewhat Not Important
� Absolutely Not Important
o Accessories and Recent Technology
� Very Important
� Somewhat Important
� Neutral
� Somewhat Not Important
� Absolutely Not Important
o Availability of Models with Variable Specifications/Accessories
� Very Important
� Somewhat Important
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� Neutral
� Somewhat Not Important
� Absolutely Not Important
o The Price
� Very Important
� Somewhat Important
� Neutral
� Somewhat Not Important
� Absolutely Not Important
o Offers and Discounts
� Very Important
� Somewhat Important
� Neutral
� Somewhat Not Important
� Absolutely Not Important
o Creative Advertisements
� Very Important
� Somewhat Important
� Neutral
� Somewhat Not Important
� Absolutely Not Important
o Customer Service
� Very Important
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� Somewhat Important
� Neutral
� Somewhat Not Important
� Absolutely Not Important
o Availability of Telesales
� Very Important
� Somewhat Important
� Neutral
� Somewhat Not Important
� Absolutely Not Important
o Centers Availability and its Locations
� Very Important
� Somewhat Important
� Neutral
� Somewhat Not Important
� Absolutely Not Important
o Availability of Spare Parts and Maintenance Center
� Very Important
� Somewhat Important
� Neutral
� Somewhat Not Important
� Absolutely Not Important
o Spare Parts Prices
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� Very Important
� Somewhat Important
� Neutral
� Somewhat Not Important
� Absolutely Not Important
o Warranty
� Very Important
� Somewhat Important
� Neutral
� Somewhat Not Important
� Absolutely Not Important
x What is the Maximum Acceptable Waiting Time from Your Buy Order till the Car's
Delivery:
o Immediately
o Within Three Days
o Within one Week
o Within Two Weeks
o Within Three Weeks
o Within one Month
o Within Two Months
x How is the influence of the Time Period from Your Buy Order till the Car's delivery on
your decision to buy a specific Car ( 1 means
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o (1 Means No influence) 1 – 2 – 3 – 4 – 5 – 6 – 7 – 8 – 9 – 10 (10 Means Strong
influence)
x Any Comments?
o An open TextBox.