Identifying the Formative Factors which Shape Individual Intention to Prefer Imported Used or Locally Assembled Cars: A Survey on Pakistan

Abstract

The current study intended to examine the consumer intention while purchasing locally assembled and imported cars. Hence, the study proposed a model which is underpinned with social identity theory. The research model employed consumer ethnocentrism, self-congruity product characteristic, perceived relative price, brand personality and service quality. The current study identify research gap and found to the best knowledge of researchers that past study is lacking the determinants which motivate consumer intention, separately, to select local or imported cars. Moreover, aforementioned studies reported inconsistent results about consumer inclination towards automobile selection. The sample size of the study was 396. The proposed model was analyzed using structural equation model. The finding of the study revealed that consumer intention to purchase locally assembled and imported cars are shaped by both factors like rational and emotional. In addition to the results unveiled the fact that consumer purchase intention towards locally assembled cars highly influenced by ethnocentrism, brand personality as well as product characteristics. In continuation with the brand personality has highest explanatory power for making consumer intention towards imported cars. In contrary to that while purchasing imported cars the consumer influenced by self-congruity and brand personality. In addition to perceived relative price and service quality having insignificant effect on both cars. The present study confirmed that in collectivism society the purchase of automobile shaped by emotions and social influences. Although the study contributed in literature with theoretical and practical implication nevertheless suggested some future research direction.