The objective of this study is to find out the factors that influence consumer buying behaviour towards vehicles in the UAE perspective.
Purchasing a car is the second most important and expensive investment in everybody’s life after purchasing a house. Consumers have created a strong car brand image of different car brands and will keep on increasing in upcoming years. This dissertation describes and shows the issues or factors which arise when people decide to purchase a car in UAE. Different Industries and services which is linked to car industry segments plays a major role in the economy. Different types of models and technologies have been invented by different car companies which made consumers to afford different choices and make them way luxurious better than before. The financial risks and personal taste and preferences shows the amount of effort the buyers put when buying a new car. This essence of a high involvement purchase decision is often the purchase of a new car
Customers attitude is not easy when buying a car, it varies according to high state of social and mental contributions. People settle on their choice by looking every single alternative which is worth their interest and cost. The buying procedure of cars are affected by various factors such as their income, cars taste and preferences, instalment choices, maintenance costs and in addition to fuel costs. The buying behaviour is also affected by many mental factors such as observations, inspiration from loved ones, and trust towards the brand. About different brands, individuals also try to take different information’s from companions and associates. Car manufactures need to consider different financial factors which impacts the buyers like loan costs, income and rise in fuel costs. In such a way all carmakers should make cars according to the needs of the buyers.
Table of Contents
1.0 INTRODUCTION
2.0 SCOPE OF THE STUDY
2.1 Research Aim
2.2 Research Purpose
2.3 Research Objective
3.0 LITERATURE REVIEW
3.1 Rise of automobile industry in UAE
3.2 Current automobile growth in UAE
3.3 Barriers in growth in the automobile industry
3.4.Brand value among consumers
3.5 Driving factors influencing consumers decision in purchasing cars
4.0 RESEARCH METHODOLOGY
4.1 Research:
4.2 Research Objectives:
4.3 Research Philosophy
4.4 Research Phases:
4.5 Data Collection Methods:
4.5.1 Secondary research data
4.5.2 Primary Research
4.5.3 Questionnaire Design
4.6 Sampling Method:
4.6.1. Population and Sampling Frame
4.7 Research Instruments:
4.8 Data Analysis and Interpretation:
4.9 Limitations of The Study:
5.0 DATA ANALYSIS
5.1 Simple Percentage Analysis for Demographic Variables
6.0 CONCLUSION AND RECOMMENDATIONS:
Research Objectives and Topics
This research aims to conduct an exploratory study of the automobile industry within the United Arab Emirates (UAE) to understand consumer buying behavior and identify the specific factors that influence purchasing decisions for cars.
- The historical rise and current growth trends of the automobile industry in the UAE.
- Barriers impacting the continued growth of the automotive sector.
- The influence of brand value on consumer perception and decision-making.
- Driving factors such as price, maintenance costs, reliability, and fuel economy that affect car purchasing choices.
Excerpt from the Book
3.3 Barriers to growth in the car industry
Few of the factors which act as barriers for the growth of auto industry in the United Arab Emirates are:
1. Risk of shared mobility
In many developed and emerging markets, different congested urban spaces, high cost of ownership and different tolls(salik) has driven people to move towards shared mobility Services such as Kareem, U-drive, Zipcar, lyft, and Uber are becoming popular nowadays. With all these services people no need to worry about parking, maintenance etc. Even in Dubai, the RTA has launched a shared mobility called Sharekni, a car pooling type of app. Increase in shared mobility will have a huge impact on car ownership. The global car ownership rates will rise, but they will increase by a moderate of 2% per annum in 2015-2030 of time. And by 2030 revenues from these shared mobility services will go up to 5.5 trillion Dhs globally
2. Smaller, Quieter, Cheaper
Over the last decades, Government has been playing a huge role in reducing car emissions. This type of move such as leaded petrol to unleaded fuel and from natural aspirated big cylinder engine has high emission norms should be followed. Along with these norms, there are many environmental problems, which is leading to the development of hybrids, and electric cars, making existing car makers to bring out new models to compete with car makers like tesla and redesign their products. By 2030 electric cars will be form around 15% of new vehicles sales, because adoption is quite high in this country. Even the UAE government who supports various automobile manufactures also supports in use of electric cars. For e.g. RTA
Chapter Summaries
1.0 INTRODUCTION: Provides an overview of the UAE automotive market, highlighting the impact of different car brands, economic factors like high per-capita income, and the dynamic nature of consumer behavior in the region.
2.0 SCOPE OF THE STUDY: Defines the research aim, purpose, and specific objectives, which center on analyzing the rise of the car industry and the consumer factors involved in purchasing a vehicle in the UAE.
3.0 LITERATURE REVIEW: Examines the rise and growth of the UAE car industry, potential barriers to growth, the significance of brand value, and the various factors influencing consumer purchasing decisions.
4.0 RESEARCH METHODOLOGY: Outlines the scientific approach of the study, including the research philosophy, data collection techniques (primary and secondary), sampling methods, and the limitations encountered during the research.
5.0 DATA ANALYSIS: Presents the gathered data through various statistical tools and tables, focusing on demographic variables and specific consumer preferences regarding car purchasing procedures, usage, and brand choices.
6.0 CONCLUSION AND RECOMMENDATIONS: Summarizes the findings and provides strategic recommendations for both car companies and consumers to improve the purchasing process and enhance customer-brand relationships.
Keywords
Automobile Industry, UAE, Consumer Behavior, Car Purchasing, Brand Value, Market Growth, Shared Mobility, Electric Vehicles, Customer Satisfaction, Relationship Management, Automotive Sector, Demographic Analysis, Buying Decision, Car Reliability, Vehicle Maintenance.
Frequently Asked Questions
What is the primary focus of this research?
The research focuses on understanding the rise of the automobile industry in the UAE and the various factors that influence consumer decisions when purchasing a car.
What are the central themes discussed in this work?
Key themes include automotive market growth, barriers to growth, brand value, and specific consumer preferences like vehicle usage and payment methods.
What is the main objective of the study?
The objective is to identify and analyze the specific drivers of consumer buying behavior toward national and international vehicles within the UAE market.
Which scientific methodology is employed?
The study utilizes a quantitative research approach, involving the collection of primary data through questionnaires and secondary data from various industry sources and literature.
What does the main body of the work cover?
It covers literature review, research methodology, and a detailed data analysis section that examines demographic variables and consumer feedback collected from a sample of drivers.
Which keywords best characterize this work?
The work is best characterized by terms such as Consumer Behavior, UAE Automobile Industry, Brand Value, Market Growth, and Vehicle Purchasing Drivers.
How does the UAE government impact the automotive sector according to this study?
The study notes that government policies, such as investment in infrastructure and support for electric vehicles, play a significant role in shaping the market and driving sector growth.
What role does 'Brand Value' play in the findings?
Brand value is identified as a critical factor in consumer decision-making, where consumers perceive established brands as indicators of reliability and social standing.
How do payment preferences reflect current consumer trends in the UAE?
The data suggests that the vast majority of consumers rely on bank financing, with an increasing trend towards installment plans offered directly by automobile companies.
- Quote paper
- Joyal Philip (Author), 2018, Driving Factors Influencing Consumers Decisions On Purchasing Cars In UAE, Munich, GRIN Verlag, https://www.grin.com/document/962087
