Analyzing Factors that Influence Consumer Decision Making when Purchasing a Motor Vehicle: A Case of CFAO Motors Zambia Limited Customers

Abstract

This research investigates the multifaceted factors shaping consumer decision-making in the purchase of motor vehicles, focusing on CFAO Motors Zambia Limited (CFAO) and its four brands—Toyota, Ford, Suzuki, and VW. The study aims to discern the primary influencers and their hierarchical significance in customers' choices, offering actionable insights for CFAO and the broader automotive industry. Therefore, the primary objective is to unravel the intricacies of consumer decision-making within the automotive sector, specifically examining how factors such as brand loyalty, pricing, infrastructure availability, environmental concerns, and social parameters interplay in influencing purchasing decisions among customers. Key findings reveal that brand loyalty and price considerations emerge as pivotal factors, forming the linchpin of consumers' choices. Infrastructure availability, environmental concerns, and social parameters also influence decisions, with a direct linear relationship identified between brand loyalty and the decision to buy. Major limitations include the study's focus on CFAO and its brands, potentially limiting generalizability. Additionally, the evolving nature of consumer preferences in light of a push towards electric vehicles (EVs) may render findings subject to temporal relevance. Practical recommendations include investing in brand strengthening activities for the poorly performing brands, targeted marketing, and infrastructure development to expand the maintenance and service centre network, to reduce sales disparities among the brands. The study further suggests the adoption of a customer-centric approach, embracing sustainability, and leveraging brand loyalty metrics for continuous improvement. This study contributes nuanced insights into the factors influencing consumer decisions in the automotive industry. By uncovering the pivotal role of brand loyalty and price considerations, the findings provide actionable recommendations and offers broader implications for enhancing industry competitiveness and consumer satisfaction.