Chinese Automobile Industry in Egypt

Topics: Automobile, Automobile industry in China, Automotive industry by country Pages: 7 (2324 words) Published: August 1, 2010

There are many aspects regarding the Chinese automobile industry in Egypt regarding how it mirrors on customer satisfaction, despite common believes China has been producing cars before the Koreans for almost over 50 years. The very first Chinese car was a poor copy of what European, American and Japanese manufacturers produce. It wasn’t designed with the anxiety of comfort, security nor style; it was more like wheeled boxes made of light steel, with a primitive petrol engine. After 20 years, Chinese automobile industry has finally become one of largest market in automobile market. The major advantage that Chinese cars have is its low pricing compared to other cars from western auto giants such as Germany and France, which is a satisfactory advantage to most of the Egyptians. - Besides the fact that Chinese cars are of lower prices, there are other factors that consumers look for in a car; this research measures weather Chinese cars meets the customers perceived values of satisfaction regarding performance and design or not. Foreign car manufacturers may not think that china would create any threat to their automobile industry. However, the great prospective of the Chinese car maker cannot be taken lightly. It is the time for Chinese companies to support for more future challenges and take hold of a bigger share in the global market.

Consumers in Egypt are very diverse; some base their perceptions regarding products on prior experience, delivering value expected and/or through overall performance. Those creates a huge conflict of interests between personal perceptions in the Egyptian market where some perceive Chinese cars as a low quality product with a cheap price tag, and others perceive them as economic high quality vehicles. - In 2004 China generated 5 million from car sales, coming third after America which generated 17 million and Japan with 5.9 million. This shows that the Americans and the Japanese are considered to be of a high quality regarding safety, durability, resale price, and comfort which is what most Egyptian customers look for in a car. However, according to David Thomas [1] “China is going to become the second-largest market in the world sometime over the next two or three years,” [2] he also said “China is developing in very similar ways (to the developed markets), but doing it so much quicker,” [3] enunciating on the statement “so much quicker.”[4]

Theoretical framework:

2.1) Defining Customer satisfaction:

Customer satisfaction is an evaluation of how goods and services provided by an organization to meet or to exceed the customer’s expectation and it may be measured directly by survey and expressed as a percentage. Customer satisfaction is a vague and conceptual, and the tangible appearance of the state of satisfaction will differ from individual to individual and good or service to good and service. In a competitive market, where companies compete for customers, customer satisfaction is perceived as a key differentiator and increasingly become a key element of business strategy now days.

2.1.1) variables effecting Customer satisfaction is:-

There are various elements effecting customer satisfaction starting with product quality to after sales services. This requires the organization and even third-party service firms to work as a whole to ensure that the customers are getting what they want and more “serving the customer”. Customer Satisfaction has backgrounds in two ideas about quality; gap-based view of quality, which has to do with delighting the customers rather than just satisfying them, and conformance to a standard or specification, which has to do with minimize production errors and monitoring the quality of delivery. The best method is to take a section of customers and to try to ask them about their experiences over a certain period of time; however, this only shows the regular view and will oversight any key limits that are...
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