Academy of Marketing Studies Journal (Print ISSN: 1095-6298; Online ISSN: 1528-2678)

Abstract

An Empirical Study on Assessing Brand Loyalty in Automobile Industry using Hidden Markov Model

Author(s): Serkan Varol and Alberto Marquez

The topic of brand loyalty in automobile industry is a multidimensional construct that is formed through cognitive and affective assessments, which has often been associated with outcomes rather than causes. Discovering underlying reasons behind purchase decisions can be critical in predicting brand loyalty and revisit intentions. Because each market shows individual characteristics, it is difficult to draw a generalized conclusion on consumer behavior. Hence, in this research, a survey is conducted, and validated among 244 participants in a target market to better observe the attitude of the car shoppers that are homogeneous with regard to attributes such as household income level and marital status. The properties of Hidden Markov Model (HMM) are used to predict the consumers’ next purchase intentions associated with a most probable cause. The methodology of the conducted approach is presented to help automobile companies to achieve an alternative practice in terms of observing measuring overall market and consumer behavior