FACTORS AFFECTING CONSUMER AUTMOBILE PREFERANCE OF INTERNATIONAL BRAND VERSUS LOCAL BRAND: THE CASE OF ARADA SUB-CITY

Abstract

The objective of this study was to investigate Arada sub-city automobile owners, brand preference comparing international automobile brand with locally assembled automobile brands. Hence, this study tries to answer whether automobile owners prefer foreign brands over local brands due to the influence of western culture, Product attribute or Price of product. In order to find out the brand preference of Arada sub-city automobile owners, the study considered three factors namely brand equity consumers attributes and Product attribute. These factors had sub elements which included ten dimensions. The research used descriptive research design and primary data was collected using questioner. To assess the factors influence, a sample size of 200 was selected using convenience sampling technique. Based on the theoretical frame work and objectives of the study 34 items were provided in a 5 point Likert scale to the respondents. The analysis revealed that product attributes and price were the major criteria for selecting automobile and friends or family and the internet were the major sources of information from where automobile owners get to know new about automobile brands. In addition brand equity and product attribute dimension ware the major influential factor than consumer attribute. The study concludes that international brand are more preferable by their product attribute, and consumers perceive that international brand has a better quality than local. Product attributes and brand equity dimensions were more influential factor in automobile brand preference than consumer attribute dimensions. Finally the study recommend that local automobile assembling/manufacturing/ must provide automobile brands that are perceived to be high quality, concentrate on creating brand awareness, must improve their product quality, build their brand equity and Local companies could also try to do with franchising with international automobile manufacturer by establish patent relationships to manufacture patented international automobile brands