Factors influencing customer Loyalty on Perusahaan Otomobil Kedua Sdn Bhd (Perodua) products / Ahmad Hafiz Azizan

In recent years, Perusahaan Otomobil Kedua Sdn Bhd (PERODUA) had achieved great success in the local automobile industry by receiving many awards and acknowledgements in local and international automotive industry. For the first time, monthly sales of Perodua passenger cars overtook sales of Proton cars. Perodua gained the biggest market share with 27.4% followed closely by Proton at 26.6%. Toyota remained the most popular non-national brand, with 17.4% market share. (AmResearch Sdn Bhd; The Star BizWeek, 1st April 2006).

By introducing their latest model that was Myvi, Perodua once again booming their sales by becoming the most demanded car of the year. Thus, it is important for the company to consider and give a full attention to maintain the services even though the car had being delivered to the customers. According to both marketing theory and practical experience, firms should improve their performance by satisfying customers, so as to obtain and sustain advantage in the intensely competitive business environment. This is because the main output of customer satisfaction is customer loyalty, and firms with a bigger share of loyal customers profit from increasing repurchase rates, greater cross-buying potential, higher price-willingness, positive recommendation behaviour and lower switching tendency