Manufacturing of Cars

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It is interesting to see how cars revolutionised the way we live but what is more interesting is that the cars these days are not just considered a device for transportation but much more than that. When you go deeper into the dynamics of the consumer behaviour towards cars it is fascinating to see how a brand of a car has a great impact on its consumer. Lots of research has been done on measuring the impact of the brand on the customer and buyer behaviour and my research aim is to add a drop of information into the existing ocean of knowledge. There has been a lot of research done on the consumer’s perception towards a car’s brand and the country of the brand. The research has been characterised by the notion that a customer’s willingness to buy a car is influenced by factors like, where the car is produced and the nationality of the car brand. The research done in a couple of articles was primarily focussed on the consumer and the fluctuations in their purchase behaviour due to the perception of the car’s brand. In an article by Fetscherin & Toncar, 2009, the concept of brand personality was explored and used in the research to measure the impact of the Country of the Brand and Country of Manufacture on the consumer. The research was done in USA and the respondents were all students. The study consisted of a survey measuring the consumer’s perceptions towards a car’s brand and the country of its manufacture. This was done by classifying the countries into two different types, developing nation (China) and developed nation (USA). The research aimed at measuring the impact of the country of production of a car on the consumers demand towards the same car. The study involved in developing a hypothesis and an experimental design was used where hypothetical cars were created and used in the survey to report the findings. The central findings of the research paper included the observation that “For a developed country automotive companies, shifting their production (Country of Manufacture) to developing countries and importing the cars back into their own country may have a negative effect on their brand” (Fetscherin & Toncar, 2009). Similar research was done in Thailand by Thanasuta, Patoomsuwan, Chaimahawong, & Chiaravutthi, 2009 and a similar research style was used where a hypothesis was developed and later a survey was carried out. The focus of the paper was to measure the significance of a brand and consumer’s willingness to pay a premium for a niche brand. The paper undertook a study on 20 existing brands from 7 countries of origin. The study involved both passenger cars and pick-up trucks. The research paper brought into light that German car brands were preferred more than Japanese or American brands even though Japanese brands have been dominating the Thai market for long time. There was also an interesting finding that the “countries with a lower GDP per capita show lower price premiums and vice versa” (Thanasuta, Patoomsuwan, Chaimahawong, & Chiaravutthi, 2009). There is another article “American Design Redefined” which brings out the importance of being American while producing the cars. The essence of that article was to signify the importance of an image of a country and their way of doing things. The article says “by accepting sloppiness, we (Americans) have been paying for the precision seen in Japanese and European vehicles. The main theme of the article was based on Chrysler and how it lost its “American” nature over the years. All the three articles above set a direction for my research proposal from different aspects. My research question “What are the underlying factors for a car manufacturer to establish a production facility offshore?” is primarily focussed on the producers of cars and all the research above is based on consumer’s perceptions. The first article suggests that there will be an impact on the demand for the car based on the country of manufacture and the second journal...
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