Int. j. econ. manag. soc. sci., Vol(4), No (3), March, 2015. pp.

344-347

TI Journals

International Journal of Economy, Management and Social Sciences

www.tijournals.com

ISSN:
2306-7276

Copyright 2015. All rights reserved for TI Journals.

Evaluation of Customers Loyalty towards the SAIPA Brand through

the Extended ECSI Model; a Case study in Tehran
Hamed Mokhtari Tabrizi
Department of Management, College of Human Science, Saveh Branch, Islamic Azad University, Saveh, Iran.

Mehrnoosh Jafari *
Department of Social Science, Roudehen Branch, Islamic Azad University, Roudehen, Iran.

Fattaneh Alizadeh Meshkani

Department of Management, South - Tehran Branch, Islamic Azad University, Tehran, Iran.
*Corresponding author: Mehr_j134@yahoo.com

Keywords

Abstract

Customer
Customers loyalty
Customers satisfaction
SAIPA brand

Background and Objective: Today is the era of loyalty. Organizations know the customers satisfaction is no
longer the key to success and profitability. Today, customers who have a heart sense of belonging to the
organizations, lead to a long-term profitability. Understanding how to increase customers loyalty is an
important issue of marketing. Today the automotive industry is in the focus of costumers and the current
market of this industry is highly competitive. Accordingly, the main objective of this study is to investigate
the factors influencing on customers loyalty towards the SAIPA brand in Tehran.
Research Methodology: The study population includes all the customers of the SAIPA brand and affiliated
companies in Tehran consisted of 400 people. The research data collecting was done by both methods of
questionnaire distributing and interviewing. The questionnaire validity based on content validity its
reliability based on Cronbach's alpha coefficient is 0.87. Data analysis was done with the help of tests such
as the Kolmogorov test, regression and correlation analysis by using SPSS statistical software.
Findings: Research findings showed that the customers loyalty towards the SAIPA brand in Tehran is good.
Also, the variables of conceptual imagination, perceived quality, perceived value, and response to the
customers complaints, are influencing on the customers satisfaction.
Conclusions: Iran automotive industry requires managers to pay more attention to the factors influencing on
the customers satisfaction and loyalty. The enhancement of customers loyalty is obtained in the shadow of
improving the quality of products and considering the customers' demands.

1.

Introduction

Since we are living in the era of discontinuities, the situations are not like in 50 and 60s, which it was possible to determine the future through
the past, and organizations should be consistent with changes [15]. Today is the era of loyalty including customers loyalty, employee loyalty,
management loyalty, loyalty to the society, principles, ideals and beliefs etc. Oliver (1999) defines loyalty as: "loyalty is calledfor a strong
commitment to purchase a better product or service in the future, so the same brand or product is purchased despite the marketing effectsand
efforts from competitors [3]. The researches conducted in this field have shown that satisfaction is not the ultimate key to success and
profitability. In fact, even the marketing concepts that underline this important issue prior to this, do not recognize it, but today only happy
customers, and customers who have had a heart felt devotion and dedication, are considered for organizations as the assets which have
profitability and are long-lived [6].
Loyalty towards a brand plays a significant role in creating long-term benefits for the company, because the customers, who are loyal to the
companys brand, need to less promotional activities compared to other customers. They are gladly willing to pay more for benefits and the
quality of their favorite brand. On the other hand, organizations can obtain a larger share of the market with the help of brand loyalty, because
the customers who are loyal to the organization, frequently buy the brand persist against the situational factors and marketing efforts of
competitors [20].
The creation of a new competitive environment in Iran automobile industry, with the emergence of new manufacturing companies and
companies that import foreign goods and parts, makes it inevitable the necessity of increased attention to the customers demands, needs and
expectations and providing consistent services and even more than the customers expectations. In today's highly competitive world, in order to
have a dominant position in the market, providing products with better quality to the customers is an important issue which can be mentioned as
a lever to create sustainable competitive advantage. The experiences of industrial countries and other automakers around the world, show that
after passing the initial stage of mass production and delivering new and updated models of cars, now it is the time to improve quality and to
provide good after-sales services, timely delivery of spare parts, creating diverse and affordable financial services and to satisfy the customers
[5].
So it is essential that Iranian SAIPA Company, regarding the situation of automobile industry in our country and its customers, pays attention to
the issue of customers satisfaction and loyalty more than ever. According to the above-mentioned contents, it is necessary to investigate which
factors lead to create satisfaction and loyalty in this industry? Car-making companies need to emphasis on which category of factors that play a
key role in customers satisfaction and loyalty? This study aims to investigate the factors influencing on customers loyalty, take a step, though
small, towards resolving the mentioned problems.
Nazemi and SaadatYar (2013) and Farahani, Mahmoodi, Ghahfarrokhi and Moradi (2013) in their studies, in different research populations,
haveemphasized on the importance of loyalty, as well as the mediating role satisfactionin the increase of customers loyalty. Also, Muzahid
Akbar (2013) and Kumar Rai & Medha (2013) in their studies have shown that the increase the loyalty is the result of several variables including
customers' satisfaction.

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Evaluation of Customers loyalty towards the SAIPA Brand through the Extended ECSI Model; a Case study in Tehran
International Journal of Economy, Management and Social Sciences Vol(4), No (3), March, 2015.

2.

The research methodology

This research is practical in terms of objective and descriptive-survey in terms of the method of data collection, and is correlative in the part that
deals with the study of the relationships between variables. In this study, the costumers of the SAIPA brand in Tehran were chosen as the
research population. According to the statistics, currently there are approximately five million cars in Tehran. Therefore the research population
was unlimited. The sampling was done with cluster method. That is, first, Tehran was divided into four districts of North, South, East and West
and then the people who are using or used in the past the products of SAIPA brand or its affiliated companies, were selected randomly from each
districts. Cochran formula was used to determine the sample size which is obtained equal 384.16 people. This number was calculated at a 95%
confidence level, and in order to ensure the required number to be obtained, the sample number was considered 400 people. The researcher-made
questionnaire and interview were used for data collection. In interviewing, the people who had completed the questionnaire were asked open
questions to comment and express their opinions in detail.
To assess the validity of questionnaire, the method of formal content analysis was used. In a way that the judgment of experts was used to
determine the content validity. To determine the reliability of the questionnaire, Cronbach's alpha method was used. With the help of Cronbach's
alpha test, the reliability of the questionnaire was obtained 0.87.

Research hypotheses are:

Customers loyalty towards SAIPA brand in Tehran is in a good situation.

The level of satisfaction of SAIPA brand customers has a significant positive relationship with their loyalty towards this brand.
The level of fulfilled expectations of SAIPA brand costumers has a significant positive relationship with their satisfaction from this
brand.
The level of perceived value of SAIPA brand costumers has a significant positive relationship with their satisfaction from this brand.
The level of perceived quality of SAIPA brand costumers has a significant positive relationship with their satisfaction from this brand.
The level of conceptual imaginations of SAIPA brand costumers has a significant positive relationship with their satisfaction from this
brand.
The responsiveness of SAIPA brand to its costumers complaints has a significant positive relationship with their satisfaction from this
brand.

With the help of statistical analysis on the collected data, the following results were obtained:
The normality of the obtained data was analyzed using the Kolmogorov Smirnov test. Based on the obtained results, due to the issue that sig
value for variables isless than 0.05, we can safely rule the normality of the data distribution, with a 95% confidence (Table 1).
Table 1. The results of the Kolmogorov-Smirnov test.
Statistical Indicators
The value of Kolmogorov Smirnov
Significance level

Conceptual
imagination

Customers
expectation

Perceived
quality

Perceived
assessment

Responsiveness to
customers complaints

Loyalty

Customers
satisfaction

4.22
0.000

2.30
0.000

3.43
0.000

2.83
0.000

2.64
0.000

1.96
0.000

2.75
0.000

The evaluations of single sample statistical t-test to determine the utility of SAIPA brand showed that there is difference between two groups of
theoretical and observed averages. Therefore the researcher's hypothesis about the significance of difference in averages is confirmed with a 0.95
confidence level and a possible error of 0.05. It can be concluded that of customers loyalty towards SAIPA brand in Tehran is in a good
situation (Table 2).
Table 2. The results of single-sample t-test
Variable

Groups

Frequency

Average

Standard
deviation

t value

Degrees of
freedom

Significance level

Customers loyalty

Theoretical average
Observed average

400
400

12.0
13.20

--2.95

--8.16

--399

--0.000

A simple regression analysis with a 95% confidence level and a 5% error level was used to test the hypotheses of the relationship between the
costumers loyalty variable with their satisfaction and the components forming the customer satisfaction. In a way that, first, the correlation of
the variables was calculated and then, regression analysis was used to determine the prediction level of dependent variable given the independent
variable. The results showed that the relationship between the variables is positive (according to the Pearson correlation coefficient). Also, in the
relationship between variables of loyalty and satisfaction, at the observed F level 40.2, the observed significant level is 0.000,which is less than
0.05. Therefore the researcher's hypothesis about the significance of relationship between these two variables is confirmed. But in the
relationship between variables of satisfaction and the level of fulfilled expectations, at the observed F level 1.99, the observed significant level is
0.15, which is more than 0.05. Therefore the researcher's hypothesis about the significance of relationship between these two variables is not
confirmed. Also, in the relationship between variables of satisfaction and the level of perceived value, at the observed F level 22.38, the
observed significant level is 0.000, which is less than 0.05. Therefore the researcher's hypothesis about the significance of relationship between
these two variables is confirmed. In the relationship between variables of satisfaction and the level of perceived quality, at the observed F level
27.16, the observed significant level is 0.000, which is less than 0.05. Therefore the researcher's hypothesis about the significance of relationship
between these two variables is confirmed. In the relationship between variables of satisfaction and the level of costumers conceptual
imaginations, at the observed F level 6.72, the observed significant level is 0.000, which is less than 0.05. Therefore the researcher's hypothesis
about the significance of relationship between these two variables is confirmed. And in the relationship between variables of satisfaction and the
level of responsiveness to the costumers complaints, at the observed F level 19.64, the observed significant level is 0.000, which is less than
0.05. Therefore the researcher's hypothesis about the significance of relationship between these two variables is confirmed. (Table 3).

Hamed Mokhtari Tabrizi , Mehrnoosh Jafari *, Fattaneh Alizadeh Meshkani

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International Journal of Economy, Management and Social Sciences Vol(4), No (3), March, 2015.

Table 3. Correlation coefficients between customers satisfaction and loyalty and the factors influencing on them.
Statistical indicators
Criterion variable
Predictor variable

3.

correlation
coefficient

Coefficient of
determination

Regression
coefficient

Costumers loyalty

Costumers satisfaction

0.303

0.090

F= 40.2
P= 0.000

B= 0.303
t= 6.34
P= 0.000

Costumers
satisfaction

Level of fulfilled
expectations

0.071

0.005

F= 1.99
P= 0.15

B= 0.071
t= 1.41
P= 0.15

Costumers
satisfaction

Level of perceived value

0.23

0.051

F= 22.38
P= 0.000

B= 0.23
t= 4.73
P= 0.000

Costumers
satisfaction

Level of perceived quality

0.25

0.062

F= 27.16
P= 0.000

B= 0.25
t= 5.21
P= 0.000

Costumers
satisfaction

Level of costumers
conceptual imaginations

0.12

0.014

F= 6.72
P= 0.01

B= 0.12
t= 2.59
P= 0.01

Costumers
satisfaction

Level of responsiveness
to costumers complaints

0.21

0.045

F= 19.64
P= 0.000

B= 0.21
t= 4.43
P= 0.000

Discussion and conclusions

According to the obtained results, SAIPA and its affiliated companies have acceptable functioning in society and people opinions. It should be
noted that the products manufactures in the companies affiliated with SAIPA, such as Parskhodro which assembles high-quality products from
the family of Renault and Nissan with the international standards of the automotive industry and delivers them to the market, have had a high
impact on customers satisfaction.
Customers satisfaction from a brand is the key factor in their loyalty towards that brand, and this claim is shown in the obtained results.
Customers satisfaction is created by various variables each of them contributes to the increase or decrease of the customers satisfaction, but
ultimately, if a customer or consumer is satisfied with a particular brand, backs again to that brand.
The results of our researches are consistent with the researchers conducted by Haghighi Kaffash(2011), Chinomona & Sandada (2013) and
Wong & Tong (2014). So the correctness of our results is reinforced. The reason behind the similarity with similar researches is the necessity of
customers satisfaction factor to create loyalty.
The results of the present study showed that the level of fulfilled expectations of customers has a direct impact on the creation of their
satisfaction from the brand, but these results were not statistically confirmed in the present study. The research results on this issue, is different
from the results of Sedaghat (2011) and Hosseini (2009). The reason behind this differences the populations under study. In an industry such as
automotive, at present conditions, we observe a monopoly incar-making companies, and the prices grow every day without improving the
quality of products and services. This factor can be traced back to the industrial structure of the country. Because it has led to the fact that we
continuously see different types of Pride, after several years of its production, and this has harmful effect on the customers' expectations before
purchase.
The presence of close relationships with customers and appropriate behavior of personnel, are very important in the enhancement of customers
sense of trust. Of course, it is very important to pay attention to the reasonable pricing of products and services in todays competitive situation.
Because after purchasing a brand, the customers compare the paid product with the received one through assessing the quality of the purchased
product or the received service. Allegedly, the level of perceived value of customers from the brand has a direct impact on the creation of their
satisfaction. The results of the present research are similar to the researches of Kaveh, Mousavi and Ghaedi (2012)Muzahid Akbar (2013).So our
results are enhanced.
The customers, who have expressed their satisfaction from this brand, were satisfied with the quality of received products and services. And
allegedly, the level of perceived quality from products and services has a direct impact on the enhancement of customers satisfaction. This issue
increases the liability of companysexecutives regarding the brand's future production. Inautomotive industry of our country, while with the
importing of various foreign cars into the country, having a high quality in the services and products of domestic brands is very important and
affects the customers satisfaction.The results of the present study in this issue are similar to the researches of Abdoli and FereydounFar (2009),
TaghaviFard, Nemat and SanieiMonfared(2011) and Akbari, Naderi, RaziZade, EbrahimiNia and RoohiPoor (2013). So the correctness of our
results is enhanced.
As the research results showed, the level of conceptual imaginations of customers from the brand has a direct impact on creating customers
satisfaction. The results of the present study in this issue are similar to the researches of Hosseini and Rezaei (2011) and Kumar Rai&Medha
(2013). So the correctness of our results is enhanced. Then the correct conclusion enhanced. Certainly, having a good advertisement which
repeated regularly to be lasting in customers brains, has great impact on the increase of customers satisfaction as well as the increase of their
loyalty.
Establishing a regular system to accept the criticisms, is very important to create customers satisfaction, because they expect their ideas to be
important for managers and organizations and know that they pay attention to their comments. The variable of response to the costumers
complaints is not considered as a separate variable in most similar researches, but allegedly, the level of responsiveness to the costumers
complaints has a direct impact on customers satisfaction from the brand and is very important for customers. The results of the present study in
this issue are similar to the researches of Tajzadeh and Allah Yari (2010) and Sedaghat (2011). So the correctness of our results is enhanced. Fast
handling with the customers complaints is also an issue which is emphasized and the lack of paying attention to it, leads to reduce the
customers trust and satisfaction.

347

Evaluation of Customers loyalty towards the SAIPA Brand through the Extended ECSI Model; a Case study in Tehran
International Journal of Economy, Management and Social Sciences Vol(4), No (3), March, 2015.

In general, it should be said that today, the automotive industry is in the focus of costumers, and the quality of products and services is an
essential and necessary element in the current competitive market. Then, it is not wrong to say that the investment to improve the quality of
products and services has direct relationship with the enhancement of brand's reputation in the society.
The results of the data analysis show that: the level of customers loyalty towards SAIPA brand in Tehran is in a good situation. But since
various variables influence on the customers satisfaction and loyalty, managers must recognize that "the satisfaction and loyalty of a costumer
are not permanent and can easily be eliminated".
The suggestions that can be provided in this regard are:
1. To have satisfied customers, we should pay attention to the customers expectations and the performance of company and personnel, in
dealing with costumers and in the meantime, seek to reduce the gap between these two factors.
2. Special attention should be given to training the personnel in order to enable them in the recognition of organization goals. In other
words, the organization should train the employees on how to deal with customers, and familiar them to the psychological skills
needed to establish a good and suitable relationship with customers.
3. Given the importance of managing customers complaints as one of the key factors affecting customers satisfaction, the following are
recommended:

Detailed informing, regarding the reference and the method of dealing with complaints.

Emphasis on the issue that the customers feedback is highly regarded for the company and they definitely will be dealt with.

The real concern of managers in handling the customers complaints. In a way that if a mistake made by organization, it will be
promptly resolved and the customer will be apologized.
4. Using appropriate pricing practices with regard to the economy and the purchasing power of the public people and trying to reduce the
finished cost of products.

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