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Consumer preferences in auto sector changing, shows study

DED gathered opinions from consumers and retailers across six major industry sectors, including the cars sector, as part of the first-ever Consumer Friendliness Rating analysis to evaluate the major drivers of consumer behaviour and understand the level of compliance to the Consumer Code of Rights stated in the Federal Law No. 24 of 2006.

Published: Wed 26 Feb 2014, 10:15 AM

Updated: Tue 7 Apr 2015, 10:16 PM

  • By
  • Staff Report (business@khaleejtimes.com)

Consumer preferences and behaviour in the cars sector appears to have changed considerably in recent years, and dealers who offer high quality and technology along with attractive price tags are leading in the competition, shows an analysis of consumer friendliness conducted by Dubai’s Department of Economic Development (DED) in 2013.

DED gathered opinions from consumers and retailers across six major industry sectors, including the cars sector, as part of the first-ever Consumer Friendliness Rating analysis to evaluate the major drivers of consumer behaviour and understand the level of compliance to the Consumer Code of Rights stated in the Federal Law No. 24 of 2006. The rating process for the cars sector included feedback from 890 customers dealing with 10 leading car dealers. Omar Bushahab, chief executive officer of commercial compliance and consumer protection (CCCP) at DED, said that the feedback revealed the top consumer concerns and areas dealers should focus to drive business and improve customer relations.

“The cars sector has a vast customer interface given the high number of car owners in Dubai and the sector saw 20 per cent growth in 2013 as consumers across various segments had more to choose from in terms of models, pricing and special offers. At the same time consumers are also watching what they get for the price they pay,” explained Bushahab.

The rating shows that a strong and steady relation between dealers and buyers exists in the cars sector as 84 per cent of customers go back to their dealer for after-sales service. The major attraction dealers hold for 78 per cent of customers is the transparency in billing and 74.9 per cent rate the service quality as good. A top concern for 41.3 per cent of consumers in the sector is lack of clarity in policies on warranty and services. There is also a significant number of customers (51 per cent) who think the price they pay for a car is unreasonable.



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