Brand Loyalty In The Automotive Industry

In addition to their green initiatives, Ford is looking at other trends regarding consumer elasticity and behavior towards the automobile market. In addition to dealing with the shift in consumer short-term behavior (going from “I really want” to “I do not really need”), the automotive industry, along with all others are wondering what the long-term change will be in consumer behavior due to the recent recession. According to Barkley US, there will be significant long-term changes in consumer behavior. Most notably, the changes will be the consumer going back to a basics mentality, the use of technology and green strategy, and women influencing more purchase decisions. The biggest changes will take place in America and parts of Europe, where housing and stock market bubbles have imploded and unemployment has soared. Companies will also need to show they empathize with consumers’ new concerns. “There will need to be a move from passion to compassion in

Over the past sixty years, the American car scene has been dominated by two completely different vehicles and the entire communities that believe in them. Both designed, founded, and rooted in Detroit, Michigan, the Ford Mustang and the Corvette have continued to fuel the chase for the label of America’s true muscle car. The question over the years has been, why and how do consumers choose which to own, and which one is our “bald eagle”? Investigating deeper into the roots of each American superpower, it all began with introduction of something that would change the automotive industry forever. “Corvette: Dream Car Come True”, is an article that highlights the beginning of the car movement in the United States: the birth of Chevrolet’s Corvette. “Born in 1953 at the General Motors plant in Flint, Michigan, the Corvette grew up on the raceway and has ruled the road ever since” (Seiden 14). The article also goes on to mention that “the Corvette is not for racers only. True car lovers own Corvette cars for everyday driving… and the highest performance standards have been built into every model” (Seiden 14). Early dominance of Corvettes on and off the racetrack, led other competitors such as Ford Motor Company wonder why and how the Corvette could be out-driven and out-sold. Directly opposing the release of the Corvette and its multipurpose ingenuity “Lee Iacocca, then general manager of Ford Motor Company, challenged his design team to create a car that could be driven ‘to

The next big upgrade to the assembly line was in the decade of the War. This is when “robots” were first introduced to the assembly lines. This was developed by the vice president of manufacture, Delmar Harder. This was a chance to see what automation could possibly do for the line. These “robots” did not run purely by themselves, the workers still played a large role. With this new-found knowledge, Ford was able to open a self-regulating plant for sheet metal stamping.

Henry Ford's assembly line and his automobile, the Model T, revolutionized manufacturing and the development of today's automobiles and engines. The assembly line and Model T caused American industry to expand and also ushered a new American lifestyle.

“If I had asked people what they wanted, they would have said faster horses,” this statement, made by Henry Ford centuries ago still fits appropriately for automobiles as well as automotive retailing industry in general terms. The global automotive retail market is all the more challenging and developing at a pace never seen and experienced before.

Henry Ford was an engineer from Detroit, Michigan who had an idea. By 1902, Ford had attempted several times to produce a gas powered vehicle, but with little capital, he realized that his attempts were futile. Ford approached a man by the name of Alexander T. Malcomson about the possibility of manufacturing an automobile. Malcomson, a friend of the family and wealthy coal merchant was reluctant at first but finally agreed with Ford, and decided to assit Ford financially with his endeavor. With Malcomsons investment and Ford's engineering skills a partnership was formed and in mid June of 1903, papers of incorporation for the Ford Motor Company were filed in Dearborn, Michigan.

Over the span of the last century no other invention has impacted America such as that of the automobile. During the infancy of such an invention it only had one purpose: to transport the commonwealth to and fro with much convenience to its credit. However, as the decades passed so did the shape and form of automobiles changed as well; from the simplistic design of Ford’s Model T, to the aggressive angles of muscle cars, and to the boxy retro design of the 80’s. Aside from from the evolution of appearances differing from generation to generation of automobiles, one constant feature setting one model more distinguished from another was (and still is) its performance; it is because of this, America fell in love with automobiles and created

The branded product at the heart of the SLP is the Ford Mustang. The Mustang was first introduced in 1964 and has become one of Ford's most iconic brands (Damian, 2006). Automobiles in general are a good subject for the study of branding because the car itself changes every year, but the brand does not. Over time, specific brands become associated with particular attributes, in terms of product category, positioning, price, and in the case of cars their styling, design and the lifestyle attributes that are associated with that vehicle. The Mustang has gone through roughly five iterations, and is currently in its fifth generation (Markus, 2010).

In the mid 1990’s, BMW decided to launch a new vehicle titled the BMW Z3 Roadster, its first car to be manufactured in North America. BMW wanted to capitalize on the decline of the motorcycle market with a roadster sports car that was targeted at driver excitement and “emotional fantasy” for drivers. The Z3 initiative provided the important opportunity to increase market share and build a stronger brand connection with Americans. Its success would influence how Americans related to all BMW products moving forward, shaping overall brand strength across market segments. The Z3 Roadster launch also needed to be done with the context of BMW’s redesigned 5 series and their role as the “official international automotive sponsor” of the 1996

United States Securities and Exchange Commission, (2012).Ford motor company 10-k . Retrieved from Ford Motor Company website: http://phx.corporate-ir.net/phoenix.zhtml?c=87772&p=irol-SECText

The Ford Production System (FPS) would utilize a pull-based production process that synchronizes production and ensures flow and stability throughout the production process. Ordered assembly drives costs down by providing Ford and its suppliers when and where supplies are needed. This also reduces overstocking of supplies.

As director of Supply Chain Systems, Teri Takai recommends implementing virtual integration strategies from companies like Dell to portions of Ford’s supply chain strategy. Although there are several key differences between the companies, the restructuring plans of Ford 2000 have set a viable foundation to implement Dell’s virtual integration strategy in inventory management, customer service and support and suppliers’ management. The redesign of the process must include design not only of the supply chain but also of fulfillment, forecasting, purchasing, and a variety of other functions that historically been considered independently within the Ford hierarchy. Teri

Differentiation requires a constantly changing product line and is more successful when the company is able to offer a portfolio of products that complement each other, which enriches the experience for customers and satisfies a variety of consumer needs. And when differentiated products truly satisfy customers’ unique needs, the company is able to charge premium prices. For customers to be willing to pay a premium price, however, Ford's products must truly be perceived as unique in some way. The ability to sell goods or services at prices that substantially exceed the cost of creating the differentiated features will allow Ford to outperform its rivals and earn above-average returns.

2) What advantages does Dell derive from virtual integration? How important are these advantages in the auto business?

Investigate how the three variables (i.e. similarity, overload, Uncertainty) affect consumer’s decision postponement and brand loyalty, concerning low involvement products. A conceptual framework based on consumer behavior – and consumer confusion literature, was utilized to form six hypotheses predicting the causality between the different variables. After validating and adapting the space to data gathered through a survey, regarding Indian Population purchasing habits of Biscuits, 2 standard multiple regressions revealed that one hypothesis was supported; overload confusion proneness decreases brand loyalty in a low involvement product category. All implications were then discussed from Practitioners and researchers points of view, concluding with possible limitations and further research.