Factors Influencing Consumer Buying Behavior of General Motors East Africa’s Saloon Vehicles

Abstract

The general objective of this study was to investigate the factors that influence customer buying behavior of the automotive products at the General Motors East Africa Limited. The specific objectives of the study were therefore to find out whether perceived price, quality, cultural factors and beliefs, perceived brand image and income level influence consumer buying behavior of automotive at GM respectively. This study used descriptive cross-sectional survey research design. The population for this study consisted of 180 customers who own GM products from General Motors (GM) Kenya limited. Vehicle owners of the brands listed were randomly selected to participate in the study. The questionnaires were used in this study mainly for the purpose of collecting primary and secondary data. To establish the reliability of the research instruments, the researcher carried out a pilot test of the instruments using another similar group with the same characteristics as the one targeted in the study. The responses were coded, edited and analyzed using Statistical Package for Social Science (SPSS). Descriptive statistics like frequencies distribution, percentages, means, modes, medians, standard deviations were used to analyze the data (Mugenda & Mugenda, 1999). The study concluded that price of a product is a key factor in determining consumer buying behavior since majority of the respondents sampled by the study considered it when purchasing their automotive saloon cars from GM. The research also concluded that customers always consider price as a major factor in any of their spare parts purchases but sometimes loyalty towards automotive remains the same even in change of prices, consumers always consider price of other car brands from other manufacturers if prices are high at GM, customers always switch to other automotive brands with other dealers/ manufacturers whenever the price increases, sometimes the increased price would not hinder customers purchase intentions and that brand from GM provides good value for money. In addition the study concluded that product quality is a core factor in determining the consumer buying behavior. The research concluded that quality affect respondent‟s attitude and commitment in repurchasing the automotive of choice. In addition the study concluded that the perception of the culture of certain automotive brands makes customers repurchase more and more and Customers always belief in what their friends prefer. The study concluded that product image influence the attitude and commitment of a customer in repurchasing the automotive of choice to a great extent. Product image of automotives is dependent on shape, size, color and dimensions. The level of income influences consumer buying behavior/ repurchasing power of the customer on the automotive of choice. This clearly indicates that high income earners tend to purchase costly cars while low income earners will always tend to purchase less costly cars from GM.