The Preference of Indonesian Car Consumer: The Comparison Between Chinese to the Other Manufacturers

Abstract

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 poor annual sales performance. Hence, the researchers want to acknowledgeany attribute 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 in filling out the questionnaires. Hereafter, we use multinomial logistic regression in conjunction with Pandas Biogeme as the tools of analysis. Moreover, Indonesian car consumers consider the purchase price, engine capacity, resale value, safety rating, availability of services, and exterior-interior design as the important attributes. Thus, Chinese car manufacturers should focus on improving those factors.

Keyword:Annual Sales Performance, Car Attributes, Car Ownership, Chinese Car Manufacturers, Choice Modelling.