INDONESIAN CONSUMER PREFERENCE OF BUYING A CAR: THE COMPARISON BETWEEN CHINESE CAR MANUFACTURER TO THE OTHER CAR MANUFACTURERS

• Main Author: Raditya, Alexander
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/57608
• Institution: Institut Teknologi Bandung

The continuous economics improvement of various developing countries has led to a significant increase in the world’s overall demand for cars. The massive development of China's economy allows car manufacturers to expand their business specifically in Indonesia. Nevertheless, the quality fade strategy that was commonly used by past Chinese car manufacturers has caused Indonesian consumers to still have trauma with the Chinese products, shown by relatively a small market share coverage and poor annual sales performance. Hence, the researchers want to acknowledge any factor that significantly affect Indonesian car consumer preference by using stated choice experiment. The experiment utilize the NGENE Choice Metrics to develop the scenario based on 9 alternatives and 7 attributes. In terms of data collection, there are a total of 590 respondents were involved through the process of filling out the questionnaires. In addition, researcher focus on respondents that being car owner and intender located in Jakarta, Bandung, and Surabaya. Afterwards, the questionnaire is divided into 3 parts, consist of scenario selection, attitudinal question, and socio-demographic information. For scenario selection, respondents were asked to choose 1 out of 9 available alternatives each in 8 different scenarios. In terms of attitudinal question, respondents were required to provide a number between 1-7 on each attitudinal statement that best describes themselves. In the part of socio-demographic information, respondents were asked to fill their profile, including age, gender, origin, educational level, type of job, and monthly income. Hereafter, the researcher use multinomial logistic regression in conjunction with Pandas Biogeme as the tools of analysis for statistical measurement and demand elasticity. According to the result, Indonesian car consumer prefer Chinese car less than other alternatives with different country of origin. Moreover, Indonesian car consumers place a different portion of attribute significance for each available alternative. Nevertheless, there are several significant attributes that intersect in between multiple Chinese alternatives, such as purchase price, resale value year 5, and safety rating. Thus, Chinese car manufacturers should focus on improving those attributes in order to increase the company’s sales and expand the market share.