A Study on Customer Satisfaction in Automobile Industry wi.docx

A Study on Customer Satisfaction in
Automobile Industry within Saudi Arabia
RESEARCH DISSERTATION
Submitted in fulfillment of the partial requirement for the award
of degree of
master of business administration
By
Fuad Abdullah Salem Hasan
Student ID: 150007035
Under the Supervision of
DR. FARRUKH RAFIQ AHMAD
COLLEGE OF ADMINISTRATIVE AND FINANCIAL
SCIENCES
SAUDI ELECTRONIC UNIVERSITY
2018

DECLARATION
I, declare that the work on which this dissertation is based,
hereby submitted to the University of
Saudi Electronic University, for the degree of Master of
Business Administration, has not
previously been submitted by me for a degree at this or any
other university.
Student Name: Fuad Abdullah Salem Hasan
Student number: 150007035
Date of Submission: 12/04/2018
Abstract
This paper is a study on customer satisfaction in Automobile
industry within Saudi
Arabia. It provides a general sight of the concept of customer
satisfaction and goes more
particularity to discuss the concept of customer satisfaction
from an Automobile perspective.

Because this study argues that achieving higher levels of
customer satisfaction for an
organization is a multifaceted success, it tries to discuss each
area that can impact the
organizational overall customer satisfaction from a management
perspective and tried also to
reveal how each area affects the consumer‟s satisfaction from
his point of view. The study aims
to benefit both Automobile consumers and the Automobile
companies in Saudi Arabia through
providing a better understanding of the customers preferences
and consumers behaving toward
the Automobile products and service that are available in the
marketplace and their needs that are
not available products in order to supply what the consumers
need so their need will be fulfilled
and the Automobile companies in the Kingdom of Saudi Arabia
can realize a better competitive
advantage among their competitors and earn more revenues.
3
Table of Contents

Declaration
Dedication
Abstract
Chapter 1: Introduction
...............................................................................................
................. 4
1.1 Background
………………….………………………………………………...……
4
1.2 Research Objectives
…………………………………………………………...…… 7
Chapter 2: Literature
Review....................................................................................
.................... 9
2.1 Research and Development: Product Design
………………..….……...…...…..… 11
2.2 Supply Chain and Logistics
……………...……..………………………………… 12
2.3 Marketing and Sales
……...……………………….……………….………...….… 13
2.4 Aftersales
Service……………………...………………………..…...…………
…. 14
2.5 Customer Preferences and Customer Loyalty
…..………………………........…… 15

2.6 Measuring Customer Satisfaction
…………………..……………………..……… 15
Chapter 3: Research
Methodology...........................................................................
................... 17
Chapter 4: Data
Analysis..................................................................................
........................... 24
Chapter 5:
Conclusion..............................................................................
................................... 70
5.1 Limitations and Recommendations
…………….…..………………...…………… 71
References
…………………………………………………………………….…
…………….. 73
Appendix: The Survey
Questionnaire……………………………………..………………….
77
4
Chapter 1: Introduction
In this chapter, a background of research topic will be provided
to demonstrate a better

understanding of what the research topic is and why it is
important. Also, the objectives, purpose
and the question of this research will be explained. Later on, a
literature review will be provided
in the next chapter.
1.1 Background
It is doubtless that customer satisfaction is a key factor of
success for any business. Its
importance extends to be the key element for business
continuity. That is because of the fact that
the purpose of business existence is to provide a product or
service that will be provided to its
customers. That means, for business with no customer
satisfaction, customer‟s withdrawal from
consuming the organization‟s product or service will be
inevitable. Therefore, there will be no
reason to continue the organizational business hence there will
be no one to consume that
product or service. That leads the managers to think of factors
that influence customer
satisfaction.
Customer Satisfaction provides the stakeholders and business
shareholders with a

measurement that helps to manage and improve their business
performance, expand their
domains, and gain more profits (Beard, 2014). Because of that,
it has its importance for the
company and their owners. Customer Satisfaction is an indicator
of the customers willing to
repeat the purchase experience. So, it is necessary for
customer‟s retention.
In general, customer satisfaction can be influenced by each part
of the company‟s supply
chain. Supply chain performance can be an unseen utility that
boosts customer satisfaction and to
5
increase the company‟s profitability (Laverty, 2014). The
influence starts from the research and
development activities which concerned mainly in revealing
what consumers need and what to
provide to them. After that research and development team will
go to the next step which is the
product or service design. It is the first key and crucial area
which can influence all the sequence

activities that impact the customer satisfaction positively or
negatively. That is because the
product or service design determines to wither the company has
succeeded in providing what
consumers need or failed.
Another area that can influence customer satisfaction is the
manufacturing area, starting
from procurements, through the logistics, value-adding process,
and lead time of delivering the
finished product or service to customer service channels. This
area is critical to product or
service quality. Furthermore, the manufacturing process is
critical for gaining customer
satisfaction in terms of determining the product or service price
through managing the
manufacturing cost and eliminating waste in material, waste of
efforts, and cost of labor time.
Additionally, the efficient production process is necessary to
reduce the waiting time which
affects the customer satisfaction directly.
An equally significant aspect of customer satisfaction is
marketing strategies.
“Establishing appropriate expectations in the minds customers
is a function of the pre-purchase

communications the seller has with them. If you set the
expectations too low, people won‟t buy
your offering. But if you set the expectations too high, you run
the risk that your buyers will be
dissatisfied” (“Principles of Marketing,” 2015). As the market
survey is the task of marketing
department within the organization which aims to find the
market opportunities through studying
what customers need, it is a part of the process of achieving
customer satisfaction. Indeed,
achieving customer satisfaction is shared task between
marketing and customer service teams.
6
Talking about the sales and customer service activity, it is the
direct contact with
customers which make it the most sensitive area that has a
colossal impact on customer
satisfaction. The way salesmen treat their customer has a crucial
impact on customer‟s delight.
Even with distinctive products or services, customer satisfaction
will be dropped without a good

attitude from sales management team.
Yet, with distinct products that have featured design, and with a
good supply
management, good marketing strategies, and competitive
customer service, there still a number
of customers will not prefer those products. This refers to
consumer behaviors and preferences.
Customer behavior is the way consumers select what to
purchase. There are several factors that
shape the customer behavior. The needs of the consumer are the
first factor that shape customer
behavior, because of that, it is important to understand what the
consumers need to provide them
the suitable product or service. Consumer‟s needs diverse
according to the functional needs, the
budget-related and financial needs, and preferences needs.
However, as the customer‟s needs are
not fixed and susceptible to change based on their individual or
social situations, customer
preferences change over time, thus, constant monitoring of
consumers preferences is necessary to
retain the current customers and attract newcomers.
As the organizational reputation is impacted by customer
satisfaction, also customer

satisfaction can be impacted by the organizational reputation.
Typically, the organizational
reputation is demonstrated in the brand name. Brands are the
names and symbols and they are
the key element to establish company relationship with
customers. Brands represent the
consumer‟s feelings and perception about the product and its
performance everything that service
or products mean to customers and finally, brands stay in the
customer's mind. Products are
made in a factory, but the brands are created in the mind.
Brands are the major enduring asset of
7
the company. For example, if Abdul Latif Jameel Company´s
every asset they own, building and
every equipment were destroyed in a terrible disaster, they
would be able to borrow all the
money to replace it very quickly because of the value of Abdul
Latif Jameel's brand. So, brands
are more valuable than the totality of the assets (Khadka &
Maharjan, 2017).

1.2 Research Objectives
The Focus of this research is to answer the following question:
what factors lead to
raising customer satisfaction score, and what factors lead to
customer dissatisfaction,
specifically, in the automobile industry within Saudi Arabia. As
the Automobile industry in
Saudi Arabia does not perform manufacturing activities and
limited to Automobile retailing, this
paper is going to concentrate more on the retailing activities of
the Automobile industry in Saudi
Arabia. Even though Automobile industry in Saudi Arabia is
limited to retailing activities, it does
not mean that customer satisfaction will not be affected by the
manufacturing activities.
Manufacturing activities overseas have its massive impact on
customer satisfaction, since it's
influenced by all major activities done overseas such as the
research and development, products
design, product quality, brand reputation, the lead time of
delivery and so on. So, because of its
importance to the customer satisfaction, it will be included in
this study.
The focus of this paper will be for two main reasons; the first

reason is that all
Automobile activities in Saudi Arabia are limited to retailing
activities. The second reason is that
“retailers are units that communicate with customers as the last
chain of the distribution channel.
Establishing good relationships with customer, satisfying
customers and gaining loyal customers
are too important in retailing. In the competition condition
today, creating customer satisfaction
and customer loyalty in retailing provides sustainable
competitive advantage and differentiation
8
from rivals for retailers. There are many factors that create
customer satisfaction and customer
loyalty. Customer service is one of the factors that creating
customer satisfaction and loyalty”
(Kursunluoglu, 2011).
However, this study is trying to give a wider scope of customer
satisfaction management.
Most of the studies have been done with focusing on one or few
areas to understand its impact on

customer satisfaction. Those studies were trying to understand
how to improve customer
satisfaction by improving one or few areas within the
organizations. But this study is going to
study the sequence of activities that impact the customer
satisfaction whether positively or
negatively.
The objectives of this study can be summarized in the following
points:
x To provide a better understanding of the expectations and
requirements of automobile
customers in Saudi Arabia.
x To provide a better understanding of what are the areas that
contribute to shaping the
expectations and requirements of automobile customers in Saudi
Arabia.
x To help the companies that have Automobile activities to
improve their customer service
through improving the production selecting, and improving the
way they provide the
service for their customers.
x To understand customer behaviors and reveal their preferences
and needs from the

Automobile industry in Saudi Arabia.
x To have a sight on how customer behaviors and preferences
differ according to the
gender, income, and customer‟s age.
x And finally, to use the findings as a base for further studies
related to the same topic.
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Chapter 2: Literature Review
Since almost twenty years ago, the revolution of the customer
service has begun. A
number of business researchers have studied concentrated on
customer satisfaction and
customer-focused organizations. Different researchers have
explained customer satisfaction in
different ways. In general, customer Satisfaction can be defined
as attributes and characteristics
that fulfill the customer‟s needs and desires, in a way that is
competitive to the organizational
rivals (Gerpott, Rams & Schindler, 2001). When an organization
sells a product or service that
meets the requirements of their customers, the organization can

recognize the satisfaction of their
customers. Customer satisfaction depends mainly on the quality
of the products that the company
provides, nevertheless, the quality is not the only what
consumers are looking for.
A customer is an individual or entity that purchases or
consumes a product or service and
importantly selects among various products, services, and
suppliers (“Customer,” n.d.). The
customer is the end-goal of a business. It is important to realize
and understand that a customer
has a choice. He/she/the entity has a clear choice in who they
want to deal with, and because of
this, the „end-goal‟ of every business should be the customer.
On the other hand, satisfaction can
be defined as the act of satisfying a need or desire
(“Satisfaction,” n.d.). By definition, customer
satisfaction is a measure of how a product or service has met or
exceeded a customer‟s
expectation.
As Customer Satisfaction means to meet and exceed the
customer‟s expectation, the
organizations then need to join it up with the Customer‟s
experiences. One of the customer

experience definitions is that it is the totality of the interactions
that a customer does in relation
to a company and its product or service (“Customer
Experience,” n.d.). There‟s a good reason for
10
attempting to define all these terms. The benefit is that after
reading just the opening few
paragraphs, you should at the very least have experienced a bit
of edification. One of key
elements that customer relationship management deals with is
the customer experience. The total
experience demonstrates and indicates how the customer feels
about the organization and its
services. By collecting data through surveys and websites, and
papers, or verbal feedback, or any
other techniques support the company in identifying the
customer experience of its product or
service.
So, when someone asks, is customer satisfaction measurable?
The simple answer is yes,
customer satisfaction is measurable (Krautzel, 2016). In fact, in

both the definitions of Customer
Satisfaction as well as Customer Experience, the reference to
measurement is used. Customer
satisfaction is a measurement of how a good or service is doing
in terms of meeting or exceeding
the customer‟s expectation. A further question is whether this
measurement of customer
satisfaction is important to the growth of any business? The
simple answer again is yes. That is
because the customer to any business should be the end-goal.
The products and services offered are important and can easily
be measured for quality.
However, if the customer is not happy, is not satisfied, has not
had their need exceeded, if the
interaction between customer, product and service provider is
poor, it is guaranteed that the
customer will not return. Further still, the customer will not
refer the organization‟s
product/service or worse, give it a poor review.
This is why the function of a Customer/Client Relationship
Manager is vital to any
company. The unfortunate problem is that smaller companies
have budget restraints that do not

allow for additional spending on salaries and so on. However,
many times there is a disconnect
11
between company owner and the end-customer. The owner does
not always hold the
relationships with the clients. It‟s usually someone in sales.
Regardless, customer satisfaction and experience speaks to
relationships. Salespeople
close deals and move on to the next conquest. Business
Developers initiate the relationships in
order for Salespeople to take advantage of any opportunities. It
is imperative that good, sound
relationships are forged from the get-go. These relationships, if
groomed correctly, over time
spawn new business.
However, in the Automobile industry, the market presents many
different cars by well-
known carmakers such as Toyota Motors, Volkswagen, General
Motors, Ford Motors, Honda
Motors, Nissan Motors, Hyundai Motors, BMW, and Peugeot
through local companies as their

representatives. In order to maintain their products on the
market, the companies have to conduct
studies of how their products are satisfying their customers and
how to elevate their customer
satisfaction level.
2.1 Research and Development: Product Design
The role of design is considered as one of the most important
factors in business and
customer delight. Every company that produces a product or
service should be aware of how the
design affects the building of customer satisfaction and loyalty.
Furthermore,” in terms of any
business situation, the output of design efforts and investment
should arguably be greater than
management expects in order to be recognized as a worthy
investment” (Nam & Carnie, n.d.).
As the product is the main concern of the consumer, automobile
manufacturing
companies – and the companies in all industries – should keen
to use the maximum efforts to
create creative products in terms of its design, its functionality,
durability, quality, and the

12
appearance. Product designs should meet and exceed the
customer‟s expectation, but it is also
important to consider the cost of the design which might be not
affordable by a wide range of the
consumers. Because of that, the design should fulfill the
maximum consumer‟s need, the
maximum additional options at an affordable cost for the
consumers in order to achieve a high
level of customer satisfaction.
Product development can be achieved through multiple
processes which start with the
product planning. By the same token, to make a product
planning, multiple processes are
involved one of them is to define the attributes of the product
design. “Facing with fierce
competition in marketplaces, companies try to determine the
settings such that the best customer
satisfaction of products could be obtained, to achieve this,
models that relate customer
satisfaction to design attributes need to be developed” (Chan,
Kwong & Wong, 2011).
2.2 Supply Chain and Logistics

Supply chain and logistics for the companies are like a central
artery for the human body.
To extend it further, a human system must have a steady flow of
inputs like oxygen and outputs
like carbon dioxide. Similarly, a supply chain must have inputs
and outputs that flow steadily or
it will not be sustainable. For example, if the flow of outputs
stops or slows down because
customers are concerned about the sustainability of the
company's products, operations, and/or
practices, this will cause inventory clog up the supply chain,
which will cause many problems
and which will reduce the sustainability of the entire system.
The waiting line or queue management is a critical part of the
supply chain and logistics
that impact the customer satisfaction strongly. It deals with the
issue of treatment of customers in
sense reduce wait for time and improvement of service
(Stevenson, 2015). Queue management
13
deals with cases where the customer arrival is random;

therefore, service rendered to them is also
random. By managing the waiting lines, the company can reduce
the costs, improve the
profitability, and gain customer loyalty (“MSG Management
Study Guide,” n.d.). For customer
population, it can be finite or infinite. The finite population
scenario considers a fixed or limited
size of customers visiting the service counter. That means, once
served will leave the line thus
reducing overall population of customers. But in an infinite
population, subtractions, and
addition of customer do not impact overall workability.
There are seven main metrics for waiting-line performance the
Blue Meadows restaurant
management can use, the customer request volume, the average
number of replies per request,
resolution rate, first response time, 5average reply time, average
reply time, and customer
satisfaction (Papageorgiou, 2016). “Any supply chain is only as
strong as its weakest link. A
company can move a product from China to the United States,
clear it through Customs, move it
to a distribution center, and fulfill it in record time. But if it
doesn‟t deliver the product to

consumers quickly enough, they are not happy, and the
company‟s supply chain has failed.”
(Partridge, 2011).
2.3 Marketing and Sales
Customer satisfaction has been defined in a variation with
regards to product satisfaction,
satisfaction with the purchase decision experience, satisfaction
with the performance attribute,
satisfaction with the store or institution, and satisfaction with
pre-purchase experience
(Yazdanifard & Mercy, 2011). Marketing is related to all those
attributes. With a good marketing
strategy, the properties of products that attract the consumers
will be reached to them properly so
they can realize what makes them satisfied. In contrast,
improper marketing strategy will fail to
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have the consumer‟s attention to the advantages of the
company‟s products or services. Also,
providing good prices, offers, and discounts - which are the
tasks of the marketing department- is

crucial for raising the customer satisfaction.
Also, salesmen behavior and attitude can have a significant
effect on customer
satisfaction. The “consistency of a sales team reduces service
variability and minimizes potential
mistakes, which enhances the team‟s ability to deliver the
promised service dependably and
accurately” (Wang, Hoegg & Dahl, 2018). The sales people are
the first line that forms the
customer's attitude about the company in general.
2.4 Aftersales Service
Product support services have become an attractive area for
competitive advantage,
especially in the Automobile industry. Some companies earn
more than fifty percent of their
profits in aftersales services. “The customer is most concerned
about an interruption in the
service that they expect from the product and their worries can
be specified into three areas:
reliability, service dependability, and maintenance. In order to
provide the most effective
support, a supplier must identify the services that customers
value most and their relative

importance” (Koskela, 2002).
As Today‟s markets tend to be more customer oriented,
delighting the customers by
meeting their needs of aftersales services through effective
maintenance service, and supplying
the part needed and the other needs cannot be neglected. After
sales service has it is a huge
impact on customer satisfaction. “After-sale service is
important because it helps to ensure that
customers are satisfied with their purchases and in case of any
difficulty installing or setting up
equipment, they can receive help” (Maghsoudlou, Mehrani &
Azma, 2014).
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2.5 Customer Preferences and Customer Loyalty
Customer preferences are related to the consumer‟s personal
needs. It can be defined as
the consumers “expectations, likes and dislikes, motivations and
inclinations that drive customer
purchasing decisions. They complement customer needs in
explaining customer behavior”

(Spacey, 2016). Any organization should adopt marketing
techniques that Appeal to the
preferences of customers. as it is useful to improve their
customer satisfaction, it is also useful
for branding, product development, distribution and customer
experience. The following are
common types of customer preference (Spacey, 2016).
On the other hand, having a customer loyalty is a precious
endowment for any company.
Customer loyalty can be defined as the “likelihood of previous
customers to continue to buy
from a specific organization. Great attention is given to
marketing and customer service to retain
current customers by increasing their customer loyalty.
Organizations employ loyalty programs
which reward customers for repeat business” (“What is
customer loyalty,” n.d.). However,
without customer satisfaction there will not be loyalty, so, it is
important to make serious effort
to achieve customer loyalty.
2.6 Measuring Customer Satisfaction
Unlike performance management which its requirements can be
met through a good

research, an effective customer measurement system is that
encouraged by the willingness to
treat the customer and perceive him as the heart of the
company. “Customer-focused companies
view customer satisfaction measurement as a means rather than
an end as part of a cycle of
continuous improvement in service delivery, and as part of the
wider toolkit of customer insight
techniques. Many organizations regularly track their levels of
customer satisfaction to monitor
16
performance over time and measure the impact of service
improvement activity” (HM
Government, 2007).
By measuring customer satisfaction, the company will be able
to understand the problems
and key drivers that impact satisfaction or dissatisfaction
regarding the company‟s product or
service. When the company understands the importance of
customer delight and how to satisfy
its customers, it will be able to use the time, efforts and

resources effectively. Measuring
customer satisfaction also allows the company to understand the
factors that influence customer
satisfaction and “outside of its control (such as the media) and
to differentiate between what
people say influences how satisfied they are, and what is really
driving their satisfaction during a
service experience” (HM Government, 2007).
Measuring customer satisfaction assists the company in
understanding what it can be
controlled and what cannot be controlled. it the company to
concentrate on its customers and
“should galvanize service owners, customer-facing staff, policy,
strategy and research staff, as
well as senior management, around the aim of improving the
customer experience” (HM
Government, 2007).
There are several techniques to measure customer satisfaction.
One of the most common
methods is the survey methodology. This technique collects the
data through questionnaires that
answered by the customers directly. There are also several
metrics can be used in measuring

customer satisfaction. Customer Satisfaction Score is a
standard metrics in which the customers
rate his/her satisfaction with business, product, or service. Net
Promoter Score is another metric
that measures the likeliness of a customer referring the company
to someone. It measures the
customer loyalty.
17
Chapter 3: Research Methodology
As this research is aiming to provide a better understanding
about how each part of the
organization and each activity that impacts the preferences of
automobile consumers and to give
a better understanding about what are the factors that affect
their decision about choosing the
brand, company, or product, survey methodology is used as a
proper methodology to gather the
data about people‟s opinions which is the main data source of
this study. A survey that is
composed of specific parts is done to get the consumers
feedback about each area that might

impact their decisions.
A survey is “a method of sociological investigation that uses
question-based or statistical
surveys to collect information about how people think and act”
(“Survey Research,” n.d.). The
substance of survey procedure can be demonstrated as
questioning people on a specific subject
and then describing their answers (Jackson, 2015). In business
research, the survey is a
methodology that collects primary data and is used to examine
concepts, mirroring individual‟s
attitude, determine the degree of customer‟s satisfaction, and
make a study of specific purposes.
Survey methodology is proper for quantitative or qualitative
research.
The questionnaire is a type of surveys. It has two types,
quantitative and qualitative
questionnaires, based on the type of study is put for. More
specific response gained through
closed-ended questions. Those questions have multiple choices
to select from them exclusively.
Then, using the quantitative method, analysis of the answered
questions to be conducted, and the
analysis can be visualized through various types of tables and

charts that include pie-charts, bar-
charts, counts, and percentages when the questionnaire has
open-ended questions, the responses
18
recorded can be analyzed using the qualitative method. They
encompass discussions and
critically analyze without using counts and equations.
The pros of questionnaires involve the ease of use, quick data
collection, low cost. Also,
it has a “higher level of objectivity compared to many
alternative methods of primary data
collection” (“Questionnaires,” n.d.). On the other hand,
questionnaires also have some cons that
include the possibility of selecting random choices by the
participants without even reading or
understating the questions which lead to misleading
conclusions. Furthermore, sometimes the
available choices are not enough not cover data that might be
useful for the researcher.
Moreover, sometimes participants are not allowed to add their
opinions and ideas about the issue

because of the absence of relevant questions or relevant
choices.
One of the widely used types of questionnaires is the online
questionnaires or known
commonly as online surveys. It is a “systematic gathering of
data from the target audience
characterized by the invitation of the respondents and the
completion of the questionnaire over
the World Wide Web” (Sincero, n.d.). It is a fast way to conduct
the survey and can be
distributed and reach many people in short time.
The advantages of online questionnaires include being easy for
data collection since the
Internet is a common media that is used by millions of people
with a perfect variety that makes
the samples choosing is better. So, a survey that requires a large
number of participants or
specific criteria for sample selection can be obtained via the
international network. The
questionnaire is quickly distributable and participated by the
respondents in short period of time,
particularly if there was a something that is given to their
responding for their participation. The
advantages also include the ease of analyzing the gathered data

since the responses are recorded
19
automatically in tables or databases that can be used in the
digital analyzing utilities and
software.
Method Purpose Advantages Disadvantages
Questionnaires
Conducted in
order to gather
large size of
information in a
short period of
time
Members of the
sample group can
remain anonymous
Considerably cheaper
than most of the other
primary data collection
methods
Possibility of

generating large
amount of data
Difficulties of ensuring greater
depth for the research
The problem of the „first
choice selection‟
Interviews
Conducted in
order to reflect
emotions and
experiences, and
explore issues
with a greater
focus
The possibility to direct
the process of data
collection
The possibility to
collect the specific type
of information required
Great amount of time required
in order to arrange and
conduct interviews and
primary data collection.
Additional costs might be

incurred associated with
arranging and conducting
interviews, travelling etc.
Potential for interviewee bias
Documentation
review
Conducted in
order to study
issues that have
developed over a
specific period
of time
Possibility to retrieve
comprehensive
information
Challenges associated with
access to documentation
Inflexibility of the research
process
Source: Survey Method. (n.d.). Retrieved March 31, 2018, from
https://research-
methodology.net/research-methods/survey-method/

20
However, to measure customer satisfaction there are several
questionnaires that can be
used. Each questionnaire aims to measure a specific area for a
certain purpose. Customer
satisfaction surveys, in general, can be classified according to
the survey‟s goal. Depending on
the main goal of the customer satisfaction surveys, there are
different types of implementations:
Product Survey, staff & service surveys, pricing surveys, and
NPS surveys (Types of Customer
Satisfaction Surveys, n.d.).
A Product survey measures the product value of specific
company or companies to their
consumers. The questions this questionnaire containing reveal
how the consumers feel about the
company‟s products or services such as the product/service „s
quality, the lifespan of that
product, the design, the uniformity, processability, and
variation of product models.
Furthermore, this type of surveys is perfect for revealing the
difference between the consumer‟s

expectation and the real product or service condition.
A staff and service surveys measure the service value of
specific company or companies
to their consumers. It is a customer satisfaction survey that
uncovers and provides a better
understanding of how the organization‟s customers feel about
their service team. “Starting with
representative's availability and knowledge, the reliability of
returning calls, courtesy from sales
staff, friendliness of the sales staff, complaint resolution,
responsiveness to inquiries, technical
service and ending with the after-sales service”(Types of
Customer Satisfaction Surveys, n.d.).
A delivery survey measures the delivery related issues such as
the lead time and the
condition of the product, and how it performs from the
consumer‟s perspective. Delivery surveys
are important for evaluating the quality of delivery activities.
For example, the company would
21
want to know if the products or services have been delivered to

its consumers on time, and if the
products that delivered and transported are intact damage-free
or not.
A Pricing survey measures the factors that might influence the
price of the product or
service that the company is providing. It helps in the decisions
that related to determining the
product‟s price for the new products or services, and the
decision related to rising of decreasing
the prices for the current products and services. This type of
survey uncovers the customers‟
perception of the price they are willing to pay. The company
might want to ask about the
expected market price, and value that customers get for the
money they pay.
A Net Promoter Score survey (NPS survey) is a simple
measuring tool that is obviously
interested in only one aspect that is the customer loyalty. This
type was presented by Reichheld‟s
Harvard Business Review article “One Number you need to
grow” (Reichheld, 2003). The most
important question Net Promoter Score survey is that how likely
is it that the customer
recommends the company or product. Moreover, to have a better

analysis, the company might
ask an additional question. It might be for example a question
about the likelihood of consumer„s
willingness to repeat the purchase experience from the
company. When the answers are
collected, “The score is calculated based upon one question by
sorting respondents into
promoters, neutrals, and detractors, followed by subtracting the
percentage of respondents that
are Detractors from the percentage that are Promoters” (Types
of Customer Satisfaction Surveys,
n.d.).
However, for this study, a prototype survey is developed
depending on the factors to be
uncovered related to the customer satisfaction in the automobile
industry. This prototype is
composed of the product type of surveys, staff and service
surveys, delivery surveys, pricing
22
surveys, and loyalty surveys (NPS). The questions were
designed into three sections, the general

questions, core questions, and supplementary questions.
The general questions are intended for categorizing the
participants. The categorizing are
chosen based on three criterions, the age, gender, and monthly
income. Those three categories
will help to understand the trends for each group. The core
questions are intended for measuring
the customer satisfaction and the factors that influence their
decision to choose a specific
product, while the supplementary question is intended to obtain
the consumer‟s opinions that
might be useful for this study.
The core questions measure the factors related to the products
design, supply chain,
marketing, sales, aftersales service, and customer loyalty. For
product design part, the product
survey technique is used in designing the survey of this study.
While for supply chain aspect, the
study mainly focused on the lead time impact, so, the delivery
survey technique is used in
designing the survey of this study.
Regarding the marketing aspect, pricing survey is used to reveal
the influence of product

prices on the consumer‟s preferences. In addition, another
question that relates to the offers,
marketing campaigns, and marketing advertisements were
added. Also, some questions that
related to marketing activities were added such as providing
multiple models to expand the
choices for the consumers.
Moreover, as one of the most important areas that influence the
customer behavior and
preferences, sales centers and salesmen were also included in
this study. Staff and service
surveys techniques were applied in designing the survey of this
study. The questions addressed
the salesmen attitude, branches availability, and telesales
services.
23
An equally significant aspect of customer concerns, spare part,
maintenance service and
other after-sales services is important to be included in this
study. Because of that, aftersales
survey techniques also were considered in designing the survey
for this study. The questions

addressed are intended to measure the importance of aftersales
services to the consumers.
Finally, customer loyalty is a key role player factor that affects
the preferences of
Automobile products consumers. Because of that, NPS surveys
technique was considered to be
used in this study. It is demonstrated in how the consumers feel
about the brand of the products
they are willing to purchase from.
The questions were designed to be simple and understandable
for the participants.
Moreover, the number of questions was limited as possible to
avoid boring and withdrawal of the
participants. To do so, some questions that measure multiple
aspects have merged in a way that
does not affect the results and make the questionnaire simpler.
Also, the questions were asked in
both English and Arabic language to allow both speakers to
participate without the problem of
the ability to understand a particular language.
The online survey was designed through Google Forms tool
which allows designing
surveys flexibly and in an attractive design. When the survey

design was completed, it was
distributed to the targeted people – which are selected randomly
within Saudi Arabia- through
the internet, particular via the social media websites and
applications. Also, it was distributed to
friends and relatives directly who also shared it randomly for
their contacts. Following are the
questions and the choices that included in this study‟s survey:
24
Chapter 4: Data Analysis
A hundred forty-seven participants have completed the survey.
Ninety-nine of them are
males with a percentage of 67.35% of the total ground, and 48
are females with a percentage of
32.65% from the total ground. Fifteen of the participants with
percentage of 10.20% from the
total participants are under eighteenth of age, eighteen of the
participants with percentage of
12.24% of the total participants are between eighteen and

twenty-four of age, twenty-six of the
participants with percentage of 17.69% of the total participants
are between twenty-four and
thirty of age, sixty-three of the participants with percentage of
42.86% of the total participants
are between thirty and forty of age, seventeen of the
participants with percentage of 11.56% of
the total participants are between forty and fifty of age, and
eight of the participants with
percentage of 5.44% are more than fifty of the age.
25
Chart No.1: Participants Share – By Gender
Chart No.2: Participants Share – By Age
As the participants were grouped by gender and age, they are
also grouped by the
monthly income. The groups were chosen as the following: low
income which allocated from
Zero up to three thousands Saudi Riyals monthly, low-medium
income which allocated from

three thousands Saudi Riyals up to six thousands Saudi Riyals,
medium-medium income which
allocated from six thousands Saudi Riyals up to nine thousands
Saudi Riyals, high-medium nine
thousands Saudi Riyals up to twelve thousands Saudi Riyals,
and high income which allocated
for more than twelve thousands Saudi Riyals monthly.
Forty-nine of the participants with a percentage of 33.33% of
the total participants are
from the low-income category. Eighteen of the participants with
a percentage of 12.24% of the
26
total participants are from the low-medium income category.
Twenty-eight of the participants
with a percentage of 19.05% of the total participants are from
the medium-medium income
category. Thirteen of the participants with a percentage of
8.84% from the total participants are
from the high-medium income category, and thirty-nine of the
participants with a percentage of
26.53% from the total participants are from the high-income

category.
Chart No.3: Participants Share – By Income
The above three charts show the participant‟s general groups
that can be used to be
correlated with their preferences based on their answers to each
part of this study. For example,
preferring the products with the lowest prices might be related
to the monthly income for the
participant. Also, preferring products with additional
accessories or additional specifications
might be a trend for those with high income. In the same matter,
gender and age might be
27
considerable factors that impact the preferences, which will be
revealed in the next part of the
analysis.
In the next part of the analysis, the qualitative information is
converted into quantitative
data. This is done for the core questions to have calculable
information that can be ultimate

comparable to each other. This has been done through giving
each answer a weight that indicates
the importance of the item to the customer so, the factors that
influence the customer satisfaction
can be weighted and the logic calculation applied on it. The
weight of each answer has
distributed as follows:
1- The “Very Important” answer is given a weight of four.
2- The “Somewhat Important” answer is given a weight of three.
3- The “Neutral” answer is given a weight of two.
4- The “Somewhat Not Important” answer is given a weight of
one.
5- The “Absolutely Not Important” answer is given a weight of
zero.
Each respond is multiplied by its weight. For example, when ten
participants respond with the
Somewhat Important answer, the calculation will be ten
multiplied by three so the score will be
thirteen. Then, after multiplying each respond to its weight, the
sum of total scores will be the
score that item. This is applied to each item of the core
questions. The first part of core questions
was assuming that the participant is going to buy a new car. The

questionnaire asks about how
important is each item from the list on the decision of choosing
a specific car.
The first item was the brand. For the brand, forty-two
participants have responded with
the Very Important answer which represents 28.57% of the total
participants with a weighted
score of 168. Forty-seven participants have responded with the
Somewhat Important answer
28
which represents 31.97% of the total participants with a
weighted score of 141. Fifteen
participants have responded with the Neutral answer which
represents 10.20% of the total
participants with a weighted score of 30. Nineteen participants
have responded with the
Somewhat Not Important answer which represents 12.93% of
the total participants with a
weighted score of 19, while twenty-four participants have
responded with the Absolutely Not
Important answer which represents 16.33% of the total
participants with a weighted score of

zero. The total weighted score of the brand importance is 358.
Table No.1: Responses to Brand Importance
Chart No.4: Responses to Brand Importance
Brand Responses Percentage Weighted Score
Very Important 42 28.57% 168
Somewhat Important 47 31.97% 141
Neutral 15 10.20% 30
Somewhat Not Important 19 12.93% 19
Absolutely Not Important 24 16.33% 0
Grand Total 147 100.00% 358
29
The second item was the Main Specifications of the product.
For the Main Specifications
of the product, seventy-two participants have responded with
the Very Important answer which
represents 48.98% of the total participants with a weighted
score of 288. Thirty-eight participants
have responded with the Somewhat Important answer which
participants with a weighted score of 114. Four participants
have responded with the Neutral

answer which represents 2.72% of the total participants with a
weighted score of 8. Seventeen
participants have responded with the Somewhat Not Important
answer which represents 11.56%
of the total participants with a weighted score of 17, while
sixteen participants have responded
with the Absolutely Not Important answer which represents
10.88% of the total participants with
a weighted score of zero. The total weighted score of the main
specifications of the product
importance is 427.
Table No.2: Responses to Main Specifications Importance
Main Specifications Responses Percentage Weighted Score
Neutral 4 2.72% 8
Grand Total 147 100.00% 427
30

Chart No.5: Responses to Main Specifications Importance
The third item was the Accessories and Recent Technology. For
the Accessories and
Recent Technology, twenty-five participants have responded
with the Very Important answer
weighted score of 100. Fifty-eight
participants have responded with the Somewhat Important
answer which represents 39.46% of
the total participants with a weighted score of 174. Twenty-one
the Neutral answer which represents 14.29% of the total
participants with a weighted score of 42.
Eighteen participants have responded with the Somewhat Not
Important answer which represents
12.24% of the total participants with a weighted score of 18,
while twenty-five participants have
responded with the Absolutely Not Important answer which
participants with a weighted score of zero. The total weighted
score of the accessories and recent
technology importance is 334.

31
Table No.3: Responses to Accessories and Recent Technology
Importance
Chart No.6: Responses to Accessories and Recent Technology
Importance
The fourth item was the Models Availability. For the Models
Availability, Thirteen
participants have responded with the Very Important answer
which represents 8.84% of the total
participants with a weighted score of 52. Forty-four participants
Somewhat Important answer which represents 29.93% of the
total participants with a weighted
score of 132. Thirty-six participants have responded with the
Neutral answer which represents
24.49% of the total participants with a weighted score of 72.
Twenty-three participants have
Accessories and Recent Technology Responses Percentage
Weighted Score
Neutral 21 14.29% 42

Grand Total 147 100.00% 334
32
responded with the Somewhat Not Important answer which
participants with a weighted score of 23, while thirty-one
participants have responded with the
Absolutely Not Important answer which represents 21.09% of
weighted score of zero. The total weighted score of variable
models importance is 279.
Table No.4: Responses to Models Availability Importance
Chart No.7: Responses to Models Availability Importance
Models Availability Responses Percentage Weighted Score
Neutral 36 24.49% 72
Grand Total 147 100.00% 279

33
The fifth item was the Prices. For the Prices, ninety-nine
participants have responded
with the Very Important answer which represents 67.35% of the
total participants with a
weighted score of 396. Eleven participants have responded with
the Somewhat Important answer
which represents 7.48% of the total participants with a weighted
score of 33. Five participants
have responded with the Neutral answer which represents 3.40%
of the total participants with a
weighted score of 10. Fourteen participants have responded with
the Somewhat Not Important
weighted score of 14, while
eighteen participants have responded with the Absolutely Not
12.24% of the total participants with a weighted score of zero.
The total weighted score of the
prices importance is 453.

Table No.5: Responses to Prices Importance
Prices Responses Percentage Weighted Score
Neutral 5 3.40% 10
Grand Total 147 100.00% 453
34
Chart No.8: Responses to Prices Importance
The sixth item was the Offers and Discounts. For the Offers and
Discounts, sixty-one
which represents 41.50% of the
total participants with a weighted score of 244. Thirty-six
score of 108. Fifteen participants have responded with the
Twenty participants have responded

with the Somewhat Not Important answer which represents
a weighted score of 20, while Fifteen participants have
zero. The total weighted score of the offers and discounts
importance is 402.
35
Table No.6: Responses to Offers and Discounts Importance
Chart No.9: Responses to Offers and Discounts Importance
The seventh item was the Advertisements. For the
Advertisements, thirteen participants
have responded with the Very Important answer which
represents 8.84% of the total participants
with a weighted score of 52. Fourteen participants have
responded with the Somewhat Important
weighted score of 42. Thirty-three

Offers and Discounts Responses Percentage Weighted Score
Neutral 15 10.20% 30
Grand Total 147 100.00% 402
36
participants with a weighted score of 66 Thirty-three
Neutral answer which represents 22.45% of the total
participants with a weighted score of 33,
while fifty-four participants have responded with the Absolutely
Not Important answer which
score of zero. The total weighted
score of the advertisements importance is 193.
Table No.7: Responses to Advertisements Importance
Chart No.10: Responses to Advertisements Importance
Advertisements Responses Percentage Weighted Score

Neutral 33 22.45% 66
Grand Total 147 100.00% 193
37
The eighth item was the Customer Service. For the Customer
Service, sixty-two
total participants with a weighted score of 248. Thirty
score of 90. Fourteen participants have responded with the
Twenty participants have responded
with the Somewhat Not Important answer which represents
a weighted score of 20, while twenty-one participants have

zero. The total weighted score of the customer service
importance is 386.
Table No.8: Responses to Customer Service Importance
Customer Service Responses Percentage Weighted Score
Neutral 14 9.52% 28
Grand Total 147 100.00% 386
38
Chart No.11: Responses to Customer Service Importance
The ninth item was the Telesales. For the Telesales Service,
twenty-one participants have
responded with the Very Important answer which represents
a weighted score of 84. Twenty-nine participants have

weighted score of 87. Nineteen
participants with a weighted score of 38. Thirty-five
Somewhat Not Important answer which represents 23.81%of the
total participants with a
weighted score of 35, while forty-three participants have
Important answer which represents 29.25%of the total
participants with a weighted score of zero.
The total weighted score of the telesales importance is 244.
39
Table No.9: Responses to Telesales Importance
Chart No.12: Responses to Telesales Importance
The tenth item was the Centers Availability and its Locations.
For the Centers
Availability and its Locations, forty-two participants have
responded with the Very Important

weighted score of 168. Thirty-
nine participants have responded with the Somewhat Important
of the total participants with a weighted score of 117. Twenty-
one participants have responded
Telesales Responses Percentage Weighted Score
Neutral 19 12.93% 38
Grand Total 147 100.00% 244
40
with the Neutral answer which represents 14.29% of the total
participants with a weighted score
of 42. Twenty participants have responded with the Somewhat
Not Important answer which
score of 20, while twenty-five
participants have responded with the Absolutely Not Important
of the total participants with a weighted score of zero. The total
weighted score of the center

availability and its locations importance is 347.
Table No.10: Responses to Centers Availability and its
Locations Importance
Chart No.13: Responses to Centers Availability and its
Locations Importance
Centers Availability and its Locations Responses Percentage
Weighted Score
Neutral 21 14.29% 42
Grand Total 147 100.00% 347
41
The eleventh item was the Availability of Spare Parts and
Maintenance Centers. For the
Availability of Spare Parts and Maintenance Centers, eighty-six
the Very Important answer which represents 58.50% of the total
participants with a weighted
score of 344. Twenty-two participants have responded with the
Somewhat Important answer

weighted score of 66. Nine participants
have responded with the Neutral answer which represents 6.12%
of the total participants with a
weighted score of 18. Sixteen participants have responded with
the Somewhat Not Important
weighted score of 16, while
fourteen participants have responded with the Absolutely Not
9.52% of the total participants with a weighted score of zero.
The total weighted score of the
availability of spare parts and maintenance centers importance
is 444.
Table No.11: Responses to Availability of Spare
Parts/Maintenance Centers Importance
Availability of Spare Parts and Maintenance Centers Responses
Percentage Weighted Score
Neutral 9 6.12% 18
Grand Total 147 100.00% 444

42
Chart No.14: Responses to Availability of Spare
Parts/Maintenance Centers Importance
The twelfth item was the Spare Parts Prices. For the Spare Parts
Prices, eighty-nine
total participants with a weighted score of 356. Twenty
Somewhat Important answer which represents 13.61%of the
score of 60. Seven participants have responded with the Neutral
of the total participants with a weighted score of 14. Fifteen
Somewhat Not Important answer which represents 10.20% of
weighted score of 15, while sixteen participants have responded
with the Absolutely Not

zero. The total weighted score of the spare parts prices
importance is 445.
43
Table No.12: Responses to Spare Parts Prices Importance
Chart No.15: Responses to Spare Parts Prices Importance
The last item was the Warranty. For the Warranty, eighty-five
participants have
responded with the Very Important answer which represents
a weighted score of 340. Twenty-five participants have
answer which represents 17.01%of the total participants with a
weighted score of 75. Six
Spare Parts Prices Responses Percentage Weighted Score
Neutral 7 4.76% 14
Grand Total 147 100.00% 445

44
participants with a weighted score of 12. Thirteen participants
Somewhat Not Important answer which represents 8.84%of the
score of 13, while eighteen participants have responded with the
Absolutely Not Important
answer which represents 12.24%of the total participants with a
weighted score of zero. The total
weighted score of the warranty importance is 440.
Table No.13: Responses to Warranty Importance
Chart No.16: Responses to Warranty Importance
Warranty Responses Percentage Weighted Score
Neutral 6 4.08% 12
Grand Total 147 100.00% 440

45
By comparing the total weighted score of each item, we get the
following ranking of the
importance of each of them to the customers:
Chart No.17: Total Weighted Score of Items Importance to the
Automobile Consumers
Table No.14: Ranking of Important items to the Automobile
Consumers
Ranking Measured Item Total Socre
1 Price 453
2 Spare Parts Prices 445
3 Availability of Spare Parts and Maintenance Centers 444
4 Warranty 440
5 Main Specifications 427
6 Offers and Discounts 402
7 Customer Service 386
8 Brand 358
9 Centers Availability and its Locations 347
10 Accessories and Recent Technology 334
11 Models Availability 279
12 Telesales 244
13 Advertisements 193
46

The second part of core questions was about the lead time.
There were two questions
related to the lead time. The first question asks the participants
about the maximum acceptable
waiting time from their buy order till the car's delivery to them.
This question is intended to
reveal the ideal lead time that Automobile companies in Saudi
Arabia should not exceed it.
Twenty-three participants have declared that the delivery of the
purchased vehicle should
be immediately at the time of purchase order. This count
participants. Forty-eight participants have declared that the
delivery of the purchased vehicle
should be within three days starting from the purchase order
day. This count represents 32.65%
of the total participants.
Forty-nine participants have declared that the delivery of the
purchased vehicle should be
within one week starting from the purchase order day. This
count represents 33.33% of the total
participants. Sixteen participants have declared that the
delivery of the purchased vehicle should

be within two weeks starting from the purchase order day. This
count represents 10.88% of the
total participants.
Six participants have declared that the delivery of the purchased
vehicle should be within
one month starting from the purchase order day. This count
participants. While two participants have declared that the
delivery of the purchased vehicle
should be within two months starting from the purchase order
day. This count represents 1.36%
of the total participants.
47
Chart No.18: Participant Responses Regarding the Acceptable
Lead Time Days
The second related to lead time question of the questionnaire
was about the influence of
the time period from their buy order till the car's delivery on
their decision to buy a specific
vehicle. This question shows the importance of committing the
acceptable lead time and its

impact on the customer loyalty.
In this part, a scale from Zero – which means no influence – up
to ten – which means
strong influence – was provided to determine the tendency of
cancellation the purchase order due
to not committing the lead time from the seller‟s side. To
calculate the intensity of the influence,
the 1 on the scale was given a zero weigh, the 2 on the scale
was given a one weigh, the 3 on the
scale was given a two weigh, the 4 on the scale was given a
three weigh, the 5 on the scale was
given a four weigh, the 6 on the scale was given a five weigh,
the 7 on the scale was given a six
48
weigh, the 8 on the scale was given a seven weigh, the 9 on the
scale was given an eight weigh,
and the 10 on the scale was given a nine weigh.
To calculate the total influence intensity of not committing the
lead time limit, it is
calculated as the following: when all participants response in
scale with 1 – no influence – the

total score will be zero (147 participants x Zero weight = Zero),
while when all participants
response in scale with 1 – strong influence – the total score will
be 1323 (147 participants x 9
weight = 1323). So, the total weighted scale will be from zero
to 1323, neutral zone will be the
mid-point of 661.5, and the actual intensity will be the sum of
responses multiplied by their
weights.
However, seven participants have responded with 1 on the scale,
which represents 4.76%
of the total participants with a weighted score of zero. Three
participants have responded with 2
on the scale, which represents 2.04% of the total participants
with a weighted score of 3. Eleven
participants have responded with 3 on the scale, which
represents 7.48% of the total participants
with a weighted score of 22.
Seven participants have responded with 4 on the scale, which
represents 4.76% of the
total participants with a weighted score of 21. Thirty-two
participants have responded with 5 on
the scale, which represents 21.77% of the total participants with

a weighted score of 128.
Eighteen participants have responded with 6 on the scale, which
participants with a weighted score of 90. Seventeen participants
have responded with 7 on the
scale, which represents 11.56% of the total participants with a
weighted score of 102.
Twenty-four participants have responded with 8 on the scale,
which represents 16.33% of
the total participants with a weighted score of 168. Six
participants have responded with 9 on the
49
scale, which represents 4.08% of the total participants with a
weighted score of 48, while twenty-
two participants have responded with 10 on the scale, which
participants with a weighted score of 198. The total weighted
score of the impact of the lead time
commitment on consumer‟s purchase decision.
Chart No.19: Impact of Lead Time Commitment on the
Consumer’s Purchase Decision

However, to have a better understanding of how is the
relationship between the gender of
the participant and his/her preferences in terms of Automobile
satisfaction criterions, the
following charts show the percentage of responses for each
gender:
50
Chart No.20: Brand Importance to Each Gender
Chart No.21: Main Specifications Importance to Each Gender
51
Chart No.22: Accessories and Recent Technology Importance to
Each Gender
Chart No.23: Models Availability Importance to Each Gender
52

Chart No.24: Prices Importance to Each Gender
Chart No.25: Offer and Discounts Importance to Each Gender
53
Chart No.26: Advertisements Importance to Each Gender
Chart No.27: Customer Service Importance to Each Gender
54
Chart No.28: Telesales Service Importance to Each Gender
Chart No.29: Centers Availability Importance to Each Gender
55

Chart No.30: Availability of Spare Parts/ Maintenance
Importance to Each Gender
Chart No.31: Spare Parts Prices Importance to Each Gender
56
Chart No.32: Warranty Importance to Each Gender
Also, to have a better understanding of how is the relationship
between the age of the
participant and his/her preferences in terms of Automobile
satisfaction criterions, the following
charts show the percentage of responses for each age group:
Chart No. 33: Brand Importance to Each Age Group
57
Chart No.34: Main Specifications Importance to Each Age
Group

Each Age Group
58
Chart No.36: Models Availability Importance to Each Age
Group
Chart No.37: Prices Importance to Each Age Group
59
Chart No.38: Offer and Discounts Importance to Each Age
Group
Chart No.39: Advertisements Importance to Each Age Group
60
Chart No.40: Customer Service Importance to Each Age Group

Chart No.41: Telesales Service Importance to Each Age Group
61
Chart No.42: Centers Availability Importance to Each Age
Group
Chart No.43: Availability of Parts/ Maintenance Importance to
Each Age Group
62
Chart No.44: Spare Parts Prices Importance to Each Age Group
Chart No.45: Warranty Importance to Each Age Group
63

Also, to have a better understanding of how is the relationship
between the monthly
income of the participant and his/her preferences in terms of
Automobile satisfaction criterions,
the following charts show the percentage of responses for each
monthly income group:
Chart No. 46: Brand Importance to Each Income Group
Chart No.47: Main Specifications Importance to Each Income
Group
64
Each Income Group
Chart No.49: Models Availability Importance to Each Income
Group
65

Chart No.50: Prices Importance to Each Income Group
Chart No.51: Offer and Discounts Importance to Each Income
Group
66
Chart No.52: Advertisements Importance to Each Income Group
Chart No.53: Customer Service Importance to Each Income
Group
67
Chart No.54: Telesales Service Importance to Each Income
Group

Chart No.55: Centers Availability Importance to Each Income
Group
68
Chart No.56: Availability of Spare Parts/ Maintenance
Importance to Each Income Group
Chart No.57: Spare Parts Prices Importance to Each Income
Group
69
Chart No.58: Warranty Importance to Each Income Group
In the end, the survey contained a final part that allows the
participants to provide their
comments, opinions, and ideas. This part was optional, because
of that not all participant have

provided their individual ideas. However, in spite of the few
comments received from the
participants, there still some of the comments useful. One of the
participants has declared that
product sustainability and durability is the main factor that
influences his decision of choosing a
specific product. Another participant has declared that the main
factor that influences his
decision of choosing a specific product is that the value of what
he gets in contrast to what he
paid. If the benefits he will get from the products worth the
money he pays or more he will
decide to purchase that product whatever the price is.
Another participant has declared that the main factor that
influences his decision of
choosing a specific product is that how easy is to purchase the
product. This is related to routine
procedures, the required documents and other requirements,
customer service, and lead time
altogether. Other participants have declared variable factors that
are parts of the addressed
factors such as the product factor and others.

70
Chapter 5: Conclusion, Limitations &Recommendations
The conclusion of this research is summarized in this chapter.
This study has focused on
customer satisfaction in Automobile industry within Saudi
Arabia. The study has been conducted
through a survey methodology of data collecting which has been
distributed through the internet
to get a random sample.
In the introduction and literature parts, this study has shown
that the customer satisfaction
is a crucial element for business successes. That is because of
the fact that the customers are the
reason for business existence. Hence the company‟s customers
consume the products and
services that are provided by that company, so the
company/organization can provide more
quantities of their products or services thus, there will be
revenues make the business continuity
is rational manner. The same is applicable to each
company/organization, including the
Automobile industry in Saudi Arabia and everywhere around the
globe.

The analysis of the collected data has revealed the most
important area that should
Automobile companies give it a priority in their management
activities. The item number one
that is attractive to Automobile consumers in Saudi Arabia is
the prices. Because of that,
Automobile companies within Saudi Arabia should give the cost
reduction the highest priority in
order to guarantee a better customer satisfaction. This can be
achieved through; 1- selling
inexpensive products; 2- eliminating all types of wastes such as
operational process waste, time
waste, efforts waste, damage incidents, and wastes of unneeded
activities and processes.
Supply chain carries out a lot of activities that can raise the
total cost and subsequently
leads to raising the products prices. By the same token, supply
can reduce the total cost if
managed properly. Reduction of supply chain costs for sure a
leads to reduce the products prices.
71

Using the lean supply chain management is a good strategy to
decrease total cost and products
costs (Ugochukwu, Engström & Langstrand, 2012).
However, the price is not the only factor that affects the
customer satisfaction of the
Automobile consumers, there are several factors might have a
significant impact. The analysis of
the study has shown that unlike the expectations, spare parts
prices comes in the second rank of
important factors after the products prices that they are looking
for. Spare parts prices, spare
parts/maintenance centers availability are even more important
than the factor of main
specifications of the products which expected to be the first
factor that leads the consumer's
decision about purchasing a specific vehicle. So, the
Automobile companies should be careful
and monitor the preferences of their customers, as the
preferences are not fixed and can be
changed with time.
5.1 Limitations and Recommendations
Although the research has reached its aims, there were some
unavoidable limitations.

First, because of the time limit, this research was conducted
with a small sized sample of the
population. The participating count was increasing at the time
of taking the sample but the
deadline for submitting this research was so close. Therefore, to
generalize the results for larger
groups, the study should have involved more participants at
different cities in Saudi Arabia with
wider and detailed grouping methodology. Also, further studies
are recommended to be
conducted to measure the correlation between some criterions
such the age, gender, nationality,
past experience and so on with the Automobile customer‟s
behavior and preferences.
Furthermore, it is recommended to conduct further studies using
different methodologies
and different resources for data collections. For Automobile
companies, it is recommended to
72
keep detailed data of their customers to be used in the future
customer satisfaction studies. Also,
conducting periodical surveys through different channels such

as the internet, the telephones, and
direct interviews with their customers are highly recommended.
Automobile companies should be aware of the dynamic and
changeable consumer‟s
behaviors and preferences. They should spontaneously and
continuously monitor the internal and
external factors that cause a change in customer satisfaction
levels of their customers. At the
same time, they should monitor how their competitors are
developing and attracting more
customers and strive to have a competitive advantage to keep
and retain their customers and
attract more from their rivals.
73
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Appendix:
The Survey Questionnaire
x What is Your Age?
o From 0 – 18
o From 18 – 24
o From 24 – 30
o From 30 – 40
o From 40 – 50
o More than 50
x Please Select Your Gender?
o Male
o Female
x Please Select Your monthly Income Category
o 0 – 3000 SR
o From 3000 SR – 6000 SR
o From 6000 SR – 9000 SR
o From 9000 SR – 12000 SR

o More than 12000 SR
x Did you purchase a car before?
o Yes, I have previous car purchase experience.
o No, I do not have previous car purchase experience.
78
x Assume that you are going to buy a new car, how important is
each of the following on
your decision of choosing the car:
o The Brand :
� Very Important
� Somewhat Important
� Neutral
� Somewhat Not Important
� Absolutely Not Important
o The Car's Main Specifications
� Very Important

� Neutral
o Accessories and Recent Technology
� Very Important
� Neutral
o Availability of Models with Variable
Specifications/Accessories
� Very Important
79
� Neutral

o The Price
� Very Important
� Neutral
o Offers and Discounts
� Very Important
� Neutral
o Creative Advertisements
� Very Important
� Neutral

o Customer Service
� Very Important
80
� Neutral
o Availability of Telesales
� Very Important
� Neutral
o Centers Availability and its Locations
� Very Important

� Neutral
o Availability of Spare Parts and Maintenance Center
� Very Important
� Neutral
o Spare Parts Prices
81
� Very Important
� Neutral

o Warranty
� Very Important
� Neutral
x What is the Maximum Acceptable Waiting Time from Your
Buy Order till the Car's
Delivery:
o Immediately
o Within Three Days
o Within one Week
o Within Two Weeks
o Within Three Weeks
o Within one Month
o Within Two Months
x How is the influence of the Time Period from Your Buy Order
till the Car's delivery on
your decision to buy a specific Car ( 1 means

82
o (1 Means No influence) 1 – 2 – 3 – 4 – 5 – 6 – 7 – 8 – 9 – 10
(10 Means Strong
influence)
x Any Comments?
o An open TextBox.
Running head: BANKING PROPOSAL1
BANKING PROPOSAL34
Course code: 675-13707
Course Name: Research Project
Student Id: 160020468
Instructor:Dr.Gokul Kumari
Abstract
The paper aims to discuss the advantages of having a
competitive advantage in the banking system. For example,
RIYAD bank are among the Banks that might offer a service at

a lower price and more convenient and desirable to clients
which will allow them to generate revenue and margin more
than market rivals, Competitive advantages include cost, quality
and most importantly customer service. Also, the research will
address RIYAD bank most powerful services that are aligned
with achieving the objectives of the vision of 2030 such as the
growth of its economy. The main aim of the research is insuring
meeting customer’s expectation, the satisfaction of the services
provided to increase the development of the economy, also a
will touch on the upcoming merger between the two largest
Saudi Banks (RIYAD Bank and NCB) and its positive impacts
on the economy and customers. One of the objectives of the
research is addressing the importance of Digitization in the
banking sector especially in Saudi Arabian banks and its
relationship with attracting more customers, ensure their
satisfaction with the services provided and the quality of the
services. Finally, a comparison between RIYAD Bank and
JPMorgan Chase bank to understand customer behavior, choice,
and preference. The data collection will include a questioner
and a survey to employees, clients to support findings. The
current research will be presented in various sections including
introduction, literature review, methodology, data collection,
and analysis, as well as discussion and conclusion.
Keywords: Banking system, Banking Sector, Competitive
advantage, Digitization.
Contents
Acknowledgments3
Introduction3
Statement of problem4
Purpose of Study5
Research Questions/Hypothesis6
Part 1. Literature Review7
Chapter 1. Competitive advantage in banking at Global

Perspective7
Introduction7
I.Digitization Concept in banking7
1.2The Riyad Bank
II.Digitization advantages in general7
III.Challenges in General7
Chapter 2: digital banking Status in Saudi Arabia7
Introduction7
I.The Digital Transformation Initiatives and National Vision
20307
II.Advantages of digital banking8
III.Customer Understanding of digital banking8
Conclusion8
Chapter 3. E-transactions in the banking sector in Saudi
Arabia8
Introduction8
I.E-transactions status in Saudi Arabia8
II.Benefits of E-transactions8
I.RIYADH BANK10
II.NCB11
III.JP Morgan13
III.Barriers to E-transactions8
Conclusion8
Part 2. Empirical study9
Introduction9
Chapter 1. Methodology9
Chapter 2. Discussion10
Discussion of results10
Implications and limits10
Conclusion10
Appendix10
References11

AcknowledgmentsIntroduction
The collective practices of any banking business are to promote
and support national economic progression through increasing
the operational revenues, credit as well as deposit facilities. In
any nation, the banking division is in charge of supporting and
funding investment portfolio, generating big profits and
expanding the states national reserve. During the times of
economic depression and difficulties, the bank in that nation
assists in equivocating risk as well as financing palpable
investments to improve and stabilize the economy. Banks in any
nation are projected to be well-financed and imbibe controlled
loaning culture to bring the necessary viable growth as well as
development in that nation. These particular aspects are the
principles of the banking sector to be able to support the
country's economic evolution, growth in addition to
development. Thus, it is important to maintain and attain a
healthy competitive advantage in the banking sector to allow for
sustainable growth of the country's economy and to attract
investors.
Literature review
Competitive advantage in banking is a far-reaching conception
that transacts or operate with the business engineering process
(BRP) to put a banking business ahead of other banking
competitors in that nation. Competitive advantage usually
addresses what the bank has in store that will enable it to attain

an advantage over other banks in a competitive market (Noe, et
al., 2017). Mechanisms in the operation of the organization such
as strategic organization and planning, competitive intellect,
corporate social accountability, modernization, and creativeness
are important drivers in ensuring that RIYAD Bank gets a
competitive advantage over other banks. All these constructs are
aimed at improving service delivery to the customers and offer
products that will satisfy its consumers (Noe, et al., 2017).
Since customers are the core center of any banking operations,
ensuring that they are offered quality products and services to
their satisfaction will greatly improve the competitiveness of
RIYAD BANK.
Digitization is one constructs in the modern banking systems
that have led to the increased competitive advantage of any
bank that has adopted it. Digitization in banking has led to the
conversion of data and information into a digital set-up through
the adoption and implementation technology. In Saudi Arabia,
RIYAD bank have embraced digitalization in providing
improved services to their customers (Chahal, & Bakshi, 2015).
This move has provided customers with ease and convenience,
which has enabled them to save time when doing transactions.
Moreover , it has led to reduced human error in the banking
world consequently, building customer loyalty. Banks, which
has adopted digitization, thus, have an increased competitive
advantage over those still using outdated banking systems and
procedures (Chahal, & Bakshi, 2015). Also, some banks have
resulted in the merger with other banks to help them increase
their competitive advantage in the competitive market. For
instance, there are ongoing talks for a merger between Riyadh
Bank and NCB, which are two of the largest banking
organization in Saudi Arabia. The Merger between the two
banks will give a huge competitive advantage over other banks
in the nation, as it will increase their assets and influence in the
Saudi's markets.Statement of the problem
Currently, many banks in Saudi Arabia have incorporated
digitization in improving service delivery to its customers. This

has been greatly influenced by the battle by all the banking
institutions to gain the competitive advantage of each other in
the provision of services to the growing customer base in the
Kingdom. The Saudi government through the National Plan for
Telecommunication and IT which was sanctioned in 2007, as
well as the National Transformation Program in Vision 2030,
have supported the transformation of banking transactions in the
nation to digital or E-transactions (Parameswar, Dhir, & Dhir,
2017). This provision has made banking to millions of Saudis
seamless and convenient in their day-to-day transactions
activities. Also, several banks in the nation have resulted to
merge with other banks such as SABB and Al-AWWAL merger
in a move to expand their customer base and influence in the
provision of services to more customers (Parameswar, Dhir, &
Dhir, 2017). In this case, it is vital to study the importance of
mergers and digitization and their competitive advantage to the
provision of services to customers and the growth of the
nation's economy aligned with achieving the Saudi’s vision
2030 of a thriving economy.Purpose of the Study
The purpose of this study is to investigate the benefits of
digitization in banking and its competitive advantages in the
provision of improved services and products to its customers. It
will also talk about the impacts of the upcoming merger
between Riyadh Bank and NCB bank in Saudi Arabia and its
competitive advantages and influence in the economic growth of
the Kingdom. The study will also examine the challenges
emerging in the process of implementing digitization in the
banking systems in the Kingdom. In this case, varied factors
will be explored that facilitate digitization in the banking
systems in Saudi Arabia to come up with the better provision of
convenient and quality services to the customers. Approaches
in the process of transforming the country with the
implementation of e-government must be ensured. The study
will explore the way of digitization and mergers in the banking
sectors, which are important in increasing the competitive
advantage of an organization in the delivery and access of

services to its customers. In addition, available data and
information will be used in the project to guide in highlighting
the factors that enable or hinder the implementation of
digitization and mergers in the banking sector in the Saudi
Arabia.Research Questions/Hypothesis
To realize the main objective of the study, the following
questions will be addressed.
· What is the approach of the Saudi Arabian citizens concerning
the implementation of digital banking?
· Does digitization improve the competitive advantage of a
banking institution in the competitive market?
· Does digitization improve service delivery to customers in
Saudi Arabia?
· Does digital banking improve and aid in the growth of the
economy of Saudi Arabia, if yes, how? If no, why?
· What are the implications of the merger between Riyadh and
NCB to the economy of Saudi Arabia?Part 1. Literature
ReviewChapter 1. Competitive advantage in banking at a Global
PerspectiveIntroduction
I. Digitization Concept in bankingI.1. Adoption of digital
banking
Digital banking is used in a form where banking services are
delivered using the internet. Contemporary banking has
embraced the use of digital banking to catch up with the fast
moving trends in the world (Lipton, Shrier & Pentland, 2016).
JP Morgan is one commercial bank that is also identified with
the adoption of digital banking like other different banks which
are beginning to adopt digital banking as their means of
operation. Locally, RiYAD is a Saudi bank which is also known
for digitization of its banking services. The general function of
commercial banks is to help in provision of financial services to
the members of the public. The commercial banks have
different roles, which include; accepting different types of
deposits, advancing loans to different people, and providing
consultancy services (Roy et al., 2017). In digital banking, the

functions of commercial banks are being digitized in a manner
that introduces internet and reduces the paperwork that had been
identified with the banking.
Commercial banks are using different strategies to implement
digital banking. Growing beyond your core into relevant
ecosystem is one of the strategies that commercial banks are
using. In this strategy, the banks focus on adjacencies to inform
their customers of existing products and changes (Laukkanen,
2017). Banks are working by extending beyond their core areas.
Banks, therefore, tend to create their own ecosystems, which
employ the digital banking. The second strategy by commercial
banks is the creation of financial supermarkets. Banks use this
strategy by mixing both internal and third party offerings thus
creating their own financial supermarkets.
Adoption of digital banking considers security of banking.
Financial security and the general security of the banking
processes is always considered when looking at the adoption of
digital banking. Particularly, protection against fraud and other
fraudulent activities is considered in digitization of banking
system. For instance, RIYAD bank has collaborated with an
international company to implement a system against Fraud
which is First data system, it has proven that it’s a strong
system enabling Fraud agents to create rules to protect their
clients from getting fraud from certain merchants.
Consideration of whether the new system is a proof against
fraud and all the risks involved is important in adopting digital
banking. 21st century is a century identified with technological
changes that include high penetration of mobile and internet
technologies. Therefore, different commercial banks are using
the penetration and increase in technologies to provide services
to their customers, this works by tilting dynamics in favor of
commercial banks.
Today, customers have different considerations before making a
decision to open a banking account with a commercial bank.
Customers have different preferences when it comes to banking
and this works by influencing their ultimate choice of

commercial banks. Banks also have the responsibility of
satisfying their clientele. Competition from other banking and
non-banking financial institutions also prompts commercial
banks to come up with different issues and implement the
technologies. In banks such as Riyad and NCB Long queues in
the banking halls are indications of slow uptake and use of
technologies in banking. Therefore, commercial banks are
coming up with systems where customers can access services
and make inquiries at the click on their mobile phones and
laptops. The use of digital banking by commercial banks is from
the need to change the phase of cash deposits, money transfers,
accessing loans, and accessing the bank statements. It is also
implemented to ensure that there is efficiency in the production
process.
To adopt digital banking, banks are focusing on the needs of
their customers. Satisfaction of the customers is a factor of
meeting the requirements of the customers. Increasing
efficiency in the banking system is an important process that
should be ensured always. Globalization is also a factor that has
necessitated the use of digital banking in the modern era.
Globalization has affected the face of doing business which has
forced commercial banks to change the phase of doing banking
to catch up with the changes in technology. Digital banking
occurs in the framework of changing all the traditional banking
services to online services. Traditionally, individuals have
attempted to present themselves physically at the banks and
branches to conduct their businesses. However, digitization
changes different activities and phases while at the same time
ensuring that the processes are conducted in a proper manner.
1.1The Riyad Bank
The Technology sector has changed rapidly over the recent
years. The newest technologies have changed the delivery of
products and services and has improved the E-Banking. For
instance, The E-commerce has made a great impact and role in
the development of business and digital services. Its well
acknowledged that RIYD Bank is one of the largest Saudi Banks

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