Client satisfaction and loyalty factors in automotive industry

Abstract

Automotive companies tend to view customer satisfaction as a determining factor of customer loyalty. An esteem essential to the long-standing profit of an association is a customer satisfaction. However, when an organization lessens customer leaving by 5%, profits raise by 2-8%. former researches have focused on aspects of customer loyalty such as quality of product and customer fulfillment, although none have qualitatively explored the factors correlated to automobile dealerships businesses in Bosnia and Herzegovina. The aim of this qualitative study in this regard is to study some of the factors that influence customer loyalty in car dealerships. from the dealer principals’ point of view. We collected data from more than 70 dealerships around Bosnia and Herzegovina. It has been observed that 5 different factors have influenced customer loyalty significantly. Besides, physical factors related with facility, customer-oriented factors, product and services-oriented factors, finance-oriented factors and marketing presence was taken over. Customer loyalty is objectively important for strategic marketing planning and represents an important basis for developing a sustainable competitive advantage (Kahreh & Kahreh, 2012). In general, customer loyalty is a favorable attitude from individuals towards repeat purchasing of a company’s products over competitors (Oliver, 2010). The ability to retain customers and make them loyal is critical for continued organizational success (Mohd, Mokhtar, & Yusr, 2016).