Exploring Factors That Influence Consumer Loyalty to Automobile Dealerships in New York

Abstract

<em>Customer attrition has severe effects on profitability and organizations incur high costs acquiring new </em><em>customers while existing ones generates more profits. However, when an organization reduces </em><em>customer quitting by 5%, it raises profits by 2-8% (Khan &amp; Rizwan, 2014). Previous studies gave much </em><em>attention to factors of customer loyalty such as product quality and customer satisfaction but none have </em><em>qualitatively explored the factors relative to automobile dealerships businesses in New York City. The </em><em>aim with this study was to fill the research gap. Based on Theory of Reasoned Action, the purpose of </em><em>this qualitative multiple-case study was to explore some factors that influence customer loyalty towards </em><em>automobile dealerships after initial purchases. Data were collected from 50 participants who have </em><em>purchased, leased, or serviced automobiles from same dealership for over 60 months. Data analysis </em><em>involved thematic and content analysis. The 3 emergent themes in final report related to Customer </em><em>Satisfaction, Product Quality and Service Quality influences on consumers loyalty towards dealerships. </em><em>Findings could result in retention programs and strategies for automobile business managers to inhibit </em><em>attrition rate while alleviating the damaging effects to sales and profitability. This study is beneficial to</em><br /><em>automobile business managers, policy makers, and academics.</em>