Automobile manufacturers, marketing channels and consumer loyalty

Abstract

The aim of this paper is to demonstrate the importance of cooperation between manufacturers of durable goods, specifically cars, and their marketing channels to accomplish strategic goals such as customer retention. A survey was administered to 644 owners of sub-compact cars manufactured by the three lead automakers in Mexico—Nissan, GM and Volkswagen. Based on this data, multi-scales measuring key concepts were validated and a regression analysis applied to test the research hypotheses. Results indicate satisfaction with the car brand and satisfaction with the after-sales services equally contribute to customer loyalty. Meanwhile brand and dealer image directly and indirectly affect loyalty through the mediation of satisfaction. This study adds to the extant literature that recognises the importance of pursuing a joint strategy between manufacturers and retailers to enhance the loyalty of consumers of durable goods. Car manufacturers have an opportunity to increase customer satisfaction and loyalty and consequently their own profitability by being aware of the importance after-sale service has in the intentions of repurchasing the same auto brand.