EDUDORM ACADEMIC SERVICES

In the intensity of the rapidly growing competition across the global business landscape, perceived value by the consumers in the market is considered to be key in the success and sustainability of any business. It has also been proven that the utilization of this aspect leads to increased customer satisfaction which enhances loyalty and improves customer relationships. It is an interesting period to be part of the European automobile industry despite the fact that business demands are excessive. According to Gnamm and Lundgren, (2016 p.1). The automobile industry is one of the largest business sectors in Europe in terms of sales, profitability, and sustainability. The industry has overcome both political and socio-economic stressors in the past. Due to technological development and globalization which have had direct implications to the automobile industry, customer expectations with respect to quality, price, safety, utility service convenience, and reliability have intensified (Xu, Blankson, and Prybutok, 2017 p.24). Simultaneously, the global demand for luxury automobiles exports has increased pressure within the industry along with the need to lower products prices. The automobile industry has experienced a significant growth over the past few years as more products are being demanded courtesy of a stable global economy.

It is without a doubt that price, service advantage and quality are the main drivers of the automobile industry in the European market. Even though consumers are seeking for quality luxurious vehicles that fit their needs, in general, the aspect of quality plays part in their satisfaction. In order, for the industry to grow, it is therefore evident that the needs of the consumers have to be met as a whole. In other words, the perceived value is more essential in influencing the buyer's decisions (Xu, Blankson, and Prybutok, 2017 p.23). The buyers need to understand the value to be acquired from the respective products. If they seek to get luxurious vehicles then several related values such as affordability, services convenience, quality, and durability are needed to prove that the product is worth their purchases (Kaura, Durga Prasad, and Sharma, 2015 p.405). However, if the products fail to meet the requirement then it implies that the customers will seek to substitute the products to meet the same needs.

The increasing competition within the European automobile industry is playing part in the increasing levels of the consumer's demands and anticipations in terms of price, efficiency, services and product quality and safety. Thus, the companies must be focused on ensuring that their consumers secure meaningful gains as a whole (Xu, Blankson, and Prybutok, 2017 p.6). For competitive positioning, most of the existing firms rely on cost leadership. this entails the concepts of low products pricing as a means of attracting a new set of consumers while retaining the existing one. However, the technology that is required in the development of luxurious vehicles is high which means that such approaches will affect business sustainability in the future. Thus, this study mainly seeks to utilize price, quality and services advantages in analyzing the European luxurious automobile market through exports.

Background to Topic

The aim of this report is to provide a detailed analysis of the European car market following the present automobile trade war. In so doing the study will demonstrate how price, quality, and services factors play a role in influencing the state of the market as a whole. Thus, this will offer essential contributions for future research with reference to the innovation of the automobile industry which will offer feasible guidance to the existing companies in the industry to create and implement effective approaches for sustainability while establishing relevant government regulations that supports the move (Xu, Blankson, and Prybutok, 2017 p.23). The association amid perceived customer value and the survival of the innovative business landscape particularly the automobile sector has been investigated by various researchers and it is concluded that high perceived value with reference to quality, affordability, and services reliability are some of the leading positive drivers of desirable performance that includes high profitability and sales. It is without a doubt that consumers needs for innovative and automobiles are changing rather fast and the success of any company depends on its general ability to address the needs. The loyalty of the customers is mainly dependent on the value that the respective product brings to them. Their perceived value, therefore, determines their loyalty as a whole and influences their decisions when purchasing automobiles (Gnamm and Lundgren, 2016). Thus, this paper will seek to present a detailed exploration of the luxury automobile market in the European market.

Every study has its own limitations that must be addressed or handled to ensure that the results are not affected. The limitations range from cost, resources, sample and time. Thus, this report offers certain proposals to offer further firm foundations for future studies. The literature search began by the use of some main words such as luxury vehicles and automobile industry through the use of internet databases. The paper will thus focus on the organization of systematic literature review following the three aspects that are likely to influence the European car market which are price, quality and service advantages. Based on the focus of these aspects focusing on them would present many difficulties to address everything within one report. Therefore, this report will select literature studies that directly address the subject to minimize the focus of study. The report acquires its literature on articles and scholarly journals especially the ones that are considered scholarly and peer-reviewed. In order for the journals to be included must include some of the keywords in the effort to ensure that everything that is needed is achieved. Thus, the background of the study must mainly focus on the European vehicle market to ensure the reliability and validity of the study. Thus, this must be improved in general to ensure that future studies have a more steady foundation to investigate about perceived value towards luxurious products.

Table 1: Three Analytical Concepts For The Automobile Market

	Price advantage	Quality Advantage	Service advantage
Key Ideas	A comptitive advantage strategy	Customer retention approach	Perceived value
Findings	Competitive approach	Customr satisfaction strategy	Customer relations building
Theoretical finding	Customers are more interested in affordable products	Customers are more focused on quality oriented commodities	Service advantage is perceived value that helps in building a reputation.
Methods	Independent variables Deductive and inductive	Independent variables Deductive and inductive	Independent variables Deductive and inductive

Methodology

The chosen studies are original and scholarly but are also systematized in a manner that contributes to the fresh insights towards the academic study, which is important for the advancement of theories and explain the existing situation of practice that is focused on consumer perceived value towards automobile vehicles.

This paper, therefore, utilizes a systematic literature review to discover the influence of perceived value on the luxurious automobile industry. The approach is helpful in establishing, describing and offer a perspective on controversial and socio-economic related issues. Therefore, the report mainly synthesizes the existing literature and also generate different views on essential problems thus offers a practical strategy to research mixture. The critical analysis will, therefore, provide benefits to researchers, policy developers and professions with regard to automobile market and future research.

The systematic research is objective and works to ensure that there are no generalized concepts and assumptions. There is a possibility that researchers will tend to provide different findings even though they are investigating on the same topic. Thus, a systematic review will be useful in developing sustainable findings that are not generalized. In that, the reliability, and accuracy of the acquired results are the most important. Therefore, the approach will not result in misleading conclusions that are subjective. This, therefore, implies that the application of critical assessment is essential in neutralizing the findings as a whole. The literature review will be analyzing different literature and analyze how price, quality and service advantages on the European automobile market. the findings will be useful in running the business and academic studies.

Literature Review

This literature review section will be covering three major aspects to analyze the European vehicle market. The literature will be centered on price, quality and service advantages and their influence on the automobile industry. These aspects are the most important in the contemporary industry where the consumers are very informed about their needs and expectations. The study will mainly focus on the competitive theory that highlights the factors that influence consumer choices and the success of their market.

4.1 Product Price

According to Guajardo, Cohen and Netessine, (2015) as the luxury automobile market in Europe is becoming more innovative and global, the European market has remained a leader in guarding the stability of a profitable economic cycle. Automobile sales are increasing rather intensely in the developing markets but the services that are important in the creation of sustainable gains which has preserved the reduced part in the industry. In the European market, the sales of the exported luxurious car are high which makes an essential part of the worldwide market in the last few years. There is an expected growth of about 5 percent every year over about five years. However, the regulations of the market are changing rather intensely based on environmental and consumer demands (Nagle and Müller, 2017).

Based on Rawlinson and Wells (2016) the European automobile market is currently characterized by a notable level of competition and highly refined and informed consumers, whose dependence on the low-quality product has faded completely. In the past era, the consumers would clearly relate to leading brands based on their reputation and performance but the aspect has changed over time (Nagle and Müller, 2017). Customers are now focusing on the brands that places more emphasizes on quality, price and service reliability and convenience. In this context, consumers in the market currently view performance as a necessity when purchasing innovative product an aspect that should be there and not necessarily as an added value.

Figure 1: Price advantage

(Lumina, 2018)

4.1.1 Low-cost Pricing Advantage for Automobile in the European Market

Molle (2017) notes that it is without a doubt that pricing is one of the leading factors that determine the decisions of the consumers and the sustainability of the business. Pricing has become part of the modern competitive strategy. For companies that need to achieve sustainability in the market, they must, therefore, try to adjust their prices to retain the existing consumers while attracting others within the same setting. Cost leadership has become the alternative for most firms within the business landscape to overcome the intensifying competition and lead in terms of market share, profitability and sales (Nagle and Müller, 2017). In general, even though there is a growing need among consumers for quality products affordability is also important. Due to the increasing cost of living, individuals want to purchase products that are affordable to have more money to cater for other expenses. Most of them are now substituting the products as a whole as a means of securing their wellness.

Based on Moraga-Gonzalez, Sándor and Wildenbeest (2015) it is not shocking to note that the automobile market is one of the leading sectors in terms of its fierce competition. Specifically, in the year 2016 about forty-four brands wear providing close to 400 new car models in the United Kingdom and Europe at large. Keeping up, with the expectations of luxurious products consumers particularly vehicles is challenging because the industry is restricted by the existence of lengthy cycles. Period to market has been increasing over the years due to the rapid technological innovation development that requires the brands to comply with the needs and innovative preferences in the market (Nagle and Müller, 2017). An automobile brand that appears perfect to get into the market at its commencement might fail to meet these expectation since the market might have changed over the time that the product is being introduced. Besides, a vehicle will stay in the market longer since the product is not perishable and the production will be continuous or years. In other words, the manufacturers cannot get into the market at ease and make the needed changes fast when compared to other industries dealing with products that need less lead and market time.

It cannot be denied that the long stay in the market creates intense opportunities for all the motor vehicles brands (Takeuchi and Quelch, 1983). The innovative products that address the existing gaps in the industry are likely to enjoy continued success for years while the competitors struggle to catch up. The automobile sector has generally enjoyed continuous growth over the years since it has proved immune to all the external disruption but technology and preferences are unavoidable. Some of the biggest threats that have affected the market are internal. Most of the changes are influenced by technology since innovation is a necessity in producing quality and acceptable products (Ehsani and Ehsani, 2015). For most of the established brands to retain their competitiveness, several strategies have been developed which involves prices structuring and differentiation. All this has taken place as the brands struggle to catch up with the rapidly changing needs and preferences of the consumers.

Price advantage is an influencing factor when it comes to exporting luxurious vehicles both in Europe and across the globe. Some regions have large markets compared to others for such products. Europe is characterized as one of the leading automobile markets across the globe in terms of sales, profitability, stability, market share, accessibility and convenience of products (Hennigs, Wiedmann, Klarmann and Behrens, 2015). Most individuals believe that exported products are cheap when compared to those that are sold in the local market. Most of the luxurious products that are sourced from other markets have the advantages (Ehsani and Ehsani, 2015). The existing brands are driven by the necessity to attract more consumers while retaining the existing ones. In other words, it is the satisfaction of the consumers that determine the performance of the brands. Consumers are pleased when a brand not only meet their product performance needs but also finances. As a whole, it is worth noting that even though the consumers are demanding for the products which are luxury rather than a necessity prices matters. The living cost has increased over the last few years and consumers are more focused on meeting their basic needs first. In that other needs such as the hospital, education and housing are the most important and thus, purchasing luxury products should retain adequate funds for such needs.

The increasing rate of empowered consumers has resulted in the development and spread of price advantage across the automobile industry. The traditional selling of vehicles was more based on the selling of cars by salesmen. This is not the case today. Back then, the sellers are the ones that held the authority of establishing the information that the consumers should take in. the case has changed over time (Hennigs, Wiedmann, Klarmann and Behrens, 2015). Technology and social networking have provided more empowered consumers. It only requires a few minutes to access information where all the information is accessible. It is easy for them to take easy trading reviews while comparing with the competing models to establish whether there are those that are offering more favorable deals. Evidently, showrooms are more accessible for the buyers in general as a whole which allows the consumers to allow an adequate assessment in relation to quality, performance, features, affordability and so on. Affordability is related to pricing. Luxurious vehicles that are brought to the market through export tend to be based on lower cost as a means of attracting more buyers (Weinstein, 2016). The products are not usually provided by the actual producers but through sales brands that provides wide ranges of vehicles. Due to the distribution of the vehicles in a large amount, it makes it easy for them to provide the products under lower prices when compared to the actual producers who are only obligated to showcase their own brands. The price advantage is an aspect that plays a huge role in satisfying the needs of the buyers as a whole thus retaining them to a certain brand.

Price advantage means that the products are cost friendly. The consumers must assess the prices for the product before making any form of purchases. Having informed and empowered buyers in the automobile industry implies that certain purchase decision factors. Online review is a major site for reviewing and marking exports purchases (Arslanagic-Kalajdzic and Zabkar, 2015). The process is straightforward and thus the market positioning of the products should be aligned with the needs of the consumers such as price. Such alignment must be visible to the buyers to assist them in making necessary decisions. The decision-making process for the purchasing luxurious products is a difficult one and the buyers have to be well informed of the products that they are purchasing. Even with the price advantage, this does not imply that the consumers will settle for low-quality products. The products must be meet their expectations (Rust and Kannan, 2016). In this context, it is evident that the brand that has the least price but has well-performing products will definitely acquire the most buyers and have the ability to attract even more within the shortest time.

Price advantage is important in the contemporary market since consumers tend to base their decisions on the benefit (Arslanagic-Kalajdzic and Zabkar, 2015). In order to retain the consumers and sway their decisions to purchase the products, the brand has to be providing benefits. In this context some of the values that automobile brands should provide include convenience, accessibility, and affordability and so on. Besides the products must be associated with the highest performance to meet the luxury needs of the consumers (Ehsani and Ehsani, 2015). It is through innovation that such needs will be met and allow satisfaction to grow and build a recognized reputation that would be beneficial to the company and its competitive sustainability.

While there is a constant increase of luxurious vehicles acquired through export, and the increase of empowered buyers are major competition. For the existing brands to fight competition, they must, therefore, create strategies to compete and attain sustainability in the market (Rust and Kannan, 2016). The European car market is particularly, large which implies that the competing firms desire to attain a large market share which is useful in dominating the larger market in general. Cost leadership has created a buzz across different sectors and the automobile industry has not been left behind. Despite the fact that vehicles manufacturing consumes many resources in producing innovative products, the consumers are demanding more affordable products. Most of the luxurious vehicles mainly target upper-class individuals an aspect that has been changed through exports. The consumers are the ones that need to acquire credible and reliable products as a whole (Stylidis, Wickman and Söderberg, 2015). The aspect goes far beyond the assessment of prices and in this context, the consumers must thus acquire quality and reliable products. Prices reduction is an important strategy in the market is effective as it assists the companies in helping the company to acquire a larger market in general.

In summing up, it is without a doubt that price advantage is an important factor that drives competition in the market. The automobile industry is mainly dependent on large sales and profitability as a whole. In that, the higher the sales then the company will attain the utmost revenue for all the products (Hartley, 2017). Providing affordable products is an aspect that attracts more consumers while assisting the consumers in making more informed choices. The consumers have to make decisions based on their financial stability.

Figure 2: Customer Awareness

(Kantar, 2018)

4.2 Service Advantage

Service advantage represents different things for different businesses. Customer advantage is one of the overlooked aspects of running a business in the competitive setting. Companies that offer the most suitable services have the highest ability to attract the most consumers. Service advantage is today utilized across different sectors as a competitive tool. In that through this companies are able to create sustainable value and predictable responses from the consumers (Guajardo, Cohen and Netessine, 2015). With regard to service advantage, most people tend to believe that service advantage is only applicable to the service industry particularly with reference to premium hotels, airlines service providers, and retailers. The notion is however not correct given that, in today’s competitive global business landscape where all the products needs to be customized to ensure that they are sold fast, service quality is a major differentiator across all the sectors that include automobile, financial, manufacturing logistics, innovation and many more (Hashmi and Biesebroeck, 2016).

For most of the mechanical and production focused companies, their continued success is derived from the production of reliable findings at the at most speed and minimal expenses. The focus of these companies particularly when referring to the established firms is the achievement of operational efficiency (Guajardo, Cohen and Netessine, 2015). In that this is attained when the operating expenses are minimal, quality is enhanced and developed in every phase. Such characteristics can be regarded as entry needs where price and quality are important profitability determinant. Most intelligent companies are thus engaging in the creation of luxurious models that adhere to the needs of the consumers and value-based relationships for this company that intends to create lasting relationships with their customers (Stylidis, Wickman and Söderberg, 2015). It is widely emphasized that service quality is the most essential aspect of attracting new customers while retaining the existing ones.

In other words, service advantage has the ability to ensure that a brand dominates the market in terms of market share, sales, and profitability. Customers tend to lean and trust brands that have desirable service quality. In this context, it is clear that success in the business landscape today necessitates more that fast response to the needs of the customers (Guajardo, Cohen and Netessine, 2015). If the company cannot be able to develop products that are connected to authoritative services then this will ultimately discourage the customers due to fear that the poor servicing is a reflection of poor performance for the respective products. Succeeding, therefore, implies the ability to respond effectively to the needs of the customers even in the case where the products are expensive. This implies to the discovery of what the others are not doing in the making and focusing on the creation of value through innovative servicing actions. Quality services in some cases will show the customers that the company is not profit focused but actually cares about them and the product they are purchasing. The process involves the constant questioning of how the services should be improved (Hashmi and Biesebroeck, 2016). Service quality is not a one way given that several actions will only suit in a specific industry. Thus, it is worth noting that for instance when it comes to the automobile industry offering customer perceived advantages such as affordability and quality will attract more customers within the shortest time period.

In the business landscape, service advantage refers to taking actions in the creation of value with regard to someone else. With regard to clients, the value is mainly connected with products and services that are being provided (Hashmi and Biesebroeck, 2016). In that, this comes in every manner in which the services are delivered with reference to service perspective which leads to the creation of reliable. Customer satisfaction is mainly gauged by the responses that they give with regard to specific products. Service advantage is closely related to quality and cost leadership given that the factor seeks to differentiate the brand from all those that the competitors are providing (Mahfooz, 2015). The cultivation of customer services towards the achievement of competitive positioning leads to the creation of the sustainability value. Unknown to many people, quality services leads to the building of a desirable reputation. Even the most known and accepted brands will get rejected at that point where the customers realize that the servicing quality aspect is missing. In that, the advantage is what the companies use in building lasting partnerships with their consumers. With quality servicing, there are sufficient strategies that a company can differentiate its brand. In that, the manner in which Toyota develops or designs its products with respect to quality, price, and services is different from that of Honda. In that, the companies are competitors in the market and they must, therefore, strive to win the hearts of their target customers (Mahfooz, 2015). The market has many substitution brands and if a customer does not gain any satisfaction from one company they are likely to move to another. It is through such reviews that others get discouraged to be part of the brand. In so doing the competitiveness of the company is affected as a whole which leads to the acquisition of a low share of the market.

Companies are becoming more empowered to offer better and satisfactory services to their customers. In that, most of the automobile companies have even gone to the extent of creating online 3D showrooms where their customers can be able to review the products and talk directly to a team of experts. The development mainly involves ensuring that the services are accessible and convenient to all the customers (Mahfooz, 2015). The service aspect, therefore, keeps the customers since they can assert that the company has accounted their need. Unlike before customers are not able to visit the physical retailers to access the products. In this context, through the services, they can be able to determine the services that are needed. The services empower the customers and allow them to access information at ease in relation to a product. It is a form of autonomy that allows the customers to conduct their personal assessments of different brands before settling for one (Tandon, Malhan and Pachpore, 2017). When a company empowers the autonomy of the customers this fuels their willingness and demonstrates a sign of inclusivity and engagement which ensures that business becomes easy and effective. Quality servicing is not constrained by interactions with the customers but also providing them with adequate information and freedom to make independent choices.

Evidently, customers are happier in the case that the services meet their expectations or exceed. Thus, service advantage has played part in ensuring that the European luxury market has a significant share of customers who are interested when it comes to exports of luxury vehicles. Besides the price, quality of the offered prices usually influences their decision that creates dependability and loyalty to a brand.

Figure 3: Service Advantage

(Rajaguru, 2016)

4.3 Quality Advantage

Quality is a priority over making a decent product. Both service and product quality are major determinants of customer satisfaction (Xu, Blankson, and Prybutok, 2017). Competitive quality is a necessary requirement for all the automobile producers. The expectations of the customers are changing fast as they are demanding more quality products. Product and service quality represent some of the leaders in attaining sustainable competitiveness, in today’s competitive global business market. The quality advantage is one of the most authoritative means of increasing an individual’s profit yet it is treated as an option. Evidently, the provision of quality goods is not an option but a necessity (Xu, Blankson, and Prybutok, 2017). Most of the managers will in most cases lip value the advantage of this aspect in competition while doing all that they are able to do in the reduction of cost (Tandon, Malhan and Pachpore, 2017). In other cases, the managers will try to hide the need for good servicing. In the globalized setting today, all products are considered as major merchandises that allows the customers to fit within the market on the basis of their needs. Quality is not the assertion that the customer is right at all times but it involves taking bold steps in addressing the needs of the customers. This will work in most cases if the company anticipations but efficient customer services cannot generally focus on the unnecessary needs (Izogo and Ogba, 2015). In essence, it refers to the creation of a company that shows care to the customers.

Quality is derived from the created culture, every company should, therefore, develop a caring culture that emphasizes quality (Beckford, 2016). If one needs to understand how much a company cares about its customers its focus on quality will say it all. In that quality is the most valuable value in the development of a successful brand (Izogo and Ogba, 2015). Quality is diverse and it also encompasses performance. The increased assertion on quality is an important part of the business in differentiating a given brand to all the others. The modern quality advantage and strategy, particularly for the leading companies in the automobile industry, is a simplified one. The notion is the provision of the best services when dealing with customers by hiring a motivated and committed team to work towards the fulfillment of this objective. A large number of companies are struggling to attain the largest market share. It is through the creation of utmost satisfaction level through providing personalized services that competitive leadership is achieved.

In achieving customer satisfaction through quality focus, businesses are required to understand everything that the consumers need and work to meet this expectation. Customer satisfaction is essential for ensuring that the customers’ needs are met and that they will be loyal to the end. It is usually more cost friendly when a company is able to retain its consumers than when attempting to attract new ones (Kaura, Durga Prasad, and Sharma, 2015). In that when loyalty is where the company does not need to spend much unlike when attracting new ones where they are required to market their products and try to appeal to the customers. This is achieved through the provision of quality that is not provided by the competing firms within the market thus maximizing customer retaining. Most of the leading brands have invested intensely in training of their staffs and only source their resources from reliable suppliers while ensuring that the quality aspect is never affected. Such focus usually generates utmost quality both in servicing and products which normally attracts customers. In other words, this demonstrates that the consumers are becoming more content when it comes to the focus on efficiency, dependability, quality, and performance (Scherer, Wünderlich, and Wangenheim, 2015). Quality is a value that is responsible for improving the encounters of the customer which makes them gain a feeling of being valued and thus likely to become returning customers.

Consumers expect that a brand should not only be oriented on sales but should also show that they care about them as well. Quality is an effective approach to making this expression. In that customers require precise information about the product and its performance. The company should not say that a product is a good performer while it actually fails to meet the quality expectations of the consumers (Izogo and Ogba, 2015). In this context, their concerns should be addressed quickly and reliably. In that, the value for the luxury products should be attained through quality. Since they are willing to make huge investments in the products then it would only be fair that quality products are provided in return. Quality must be connected to convenience as the accompanying value. If the product is of the utmost quality but its accessibility or convenience of accessing services is missing, then it implies that then the expectations of the customers are not met (Kaura, Durga Prasad, and Sharma, 2015). Thus, it is worth noting that as a whole quality is a leading factor that determines the choices that the consumers make. There is no individual who wishes to purchase products that are of the least value when it comes to quality in general. Thus, if it has to be affordable then it should also adhere to all quality standards which means it is safe and performs as needed by the buyer.

Figure 4: Quality Advantage

(USC, 2018)

5.0 Analysis and Critical Discussion

5.1 Implications for practicing managers

5.1.1 Price Advantage

Price advantage has been analyzed in the literature review of this paper. There are several factors in relation to price advantage that have been established to having notable influence in the automobile industry. First, the study established that the increasing rise of empowered and informed consumers due to technology and globalization have led to most of the existing brands following a cost leadership approach. In that, the consumers are well aware of the products they want and in making a decision they assess the price value that each brand is providing. Even though performance is very crucial it is noted that the product should also be affordable. Through R&D, the automobile industry has constantly been involved in filling the existing gaps in the market as a whole (Scherer, Wünderlich, and Wangenheim, 2015). Even though the process is expensive based on the fact that the products have to be highly developed in relation to innovation the companies must align their marketing with the preferences of the consumers. Thus, the findings are important to the practicing managers in understanding the needs of the customers and how best to position their brands. In that, in order to succeed through the cost-efficient approach, the companies should also focus on designing strategic methods to cut down on the operating cost which will, in turn, increase the productivity.

5.1.2 Quality Advantage

It is widely known that the best product is one that adheres to the utmost quality levels (Beckford, 2016). It was established that quality plays part in shaping individuals decisions. In that, in the context that one will settle for a higher priced brand if its quality is more fulfilling in terms of performance (Kaura, Durga Prasad, and Sharma, 2015). Customers nowadays rely on reviews and thus the product should perform when to meet the needs of the customer. In addition, even if a company offers the best services if the product is low in performance then the consumers will forego it. For automobiles that are very expensive they have to be durable and of high quality meaning that they are also safe. Thus, managers need to ensure that their products adhere to quality.

5.1.3 Service Advantage

Good servicing is essential in building relationships with consumers as well as satisfaction (Scherer, Wünderlich, and Wangenheim, 2015). If the customers are not satisfied with the services provided then it means that the reputation of the brand is affected. In that, the product should serve their needs completely while the company is focused on the provision of the best services. The administrators are therefore required to consider price advantage over to satisfy all the stated needs of the consumers and to appeal to them that the brand is good for them.

5.2 The implication to the Policy Makers

Based on the literature above, it was demonstrated by researchers in the technology and innovation field that there is a direct association between luxurious export vehicles and the associated brand value. Different companies link diverse values to their product and even though performance is one of the leading ones, service, quality and price are major determinants. The government and all the participating companies have the role of making a reasonable investment in the development of the innovative sector. Research and development as part of this innovation have facilitated the development of vehicles that fit the needs of the consumers. While most people believe that it is the operating companies that have the obligation to decide on how the needs of the consumers should be met, it is actually true that this cannot be done without the approval of policymakers (Scherer, Wünderlich, and Wangenheim, 2015). Policy develops set guidelines, procedures, and rules that are to be adhered to while making critical decisions as a whole. In most nations, there are agents and institutions that have been established to deal with the innovative projects and operations in general.

Since the beginning of the 21st century, several policies have been launched by the European Union as measures to support innovation for the established and upcoming companies as a way of boosting technological innovation (Rodwin and Sazanami, 2017). In some nations within Europe such as in the United Kingdom government-supported programs, as well as networking structures for carrying out business, have been created to ensure the steady flow of all economic activities with the main focus on innovation. The effectiveness of the innovation sector and manufacturing of more eco-friendly and customer center automobiles depends on the decisions of the policy developers. Thus, this has influenced the EU in the establishment of a steady stream that is inclusive and development focused. The government has the highest authority of offering support through the provision of resources and the best working environment for high technology and innovation companies in building alliances outside Europe (Rodwin and Sazanami, 2017). Through this research that is centered on automobiles innovation and customer values, it is evident that it is through the support of the government that businesses succeed.

5.3 Implications for Academic Research In the Future

This report has generated original findings and concepts with regard to the state of the European automobile industry in the technological era. While it was investigated in details of the influence of price, quality and service advantage which is applicable by policy developers and managers, future research has the obligation to further utilize the insights and investigate on the influence and relevance of other factors. The automobile industry is very broad and even though it has been involved in more studies over the past years there is more that needs to be done. The study mainly revolved around the factors and it is therefore suggested that future studies can focus on the influence of innovation in shaping the factors. Having an understanding of the relationship between consumer decision and technological innovation is important in justifying the current state of the market. It is without a doubt that innovation is affecting the state of the automobile industry is changing rather fast because of innovation, technology advancement and globalization and thus the contribution of these aspects should be investigated in details. In other words, future studies could focus on detailed analysis of the manner in which value perceived advantage by the customers along with the assimilation of technology has affected the automobile industry.

6.0 Conclusions

This report began with the identification of the fundamental role with respect to the influence of the European vehicle market in the automobile industry. The study began by highlighting the background to the subject to understand the need to carry out a detailed literature review. A detailed analysis is conducted and all the selected articles, journals, and books have their focus on the automobile industry and their findings are different and related to the study subject. The report, therefore, made conclusions based on several aspects. First, the European automobile literature can be categorized into three which includes price, quality and service advantages. The themes, findings, analytical concepts, theories and proposed suggestions in relation to the advantages are all asserted. All the aspects are analyzed as the influencing factors that lead to the state in the market. Several other factors were established to be contributory such as customer preferences, customer satisfaction, product performance and market needs that contribute to the development of the market. The study concluded that the consumers are more informed and empowered than before and they tend to use their knowledge while making decisions. Price, quality, and services advantages are considered to be some form of values that must be present for the consumers to consider buying a brand. Thus, there is a strong relationship between consumer buying and brand value. The findings from different literature studies are related though conflicting. The implications of the research will be useful as a future basis for different research investigation and review.

7.0 Learning Statement

An in-depth analysis of the business landscape is a matter that provides adequate knowledge and experience about management integration theories that are needed for the growth of the business. The analysis is also a field that offers a critical opportunity to acquire professional knowledge via the procedure of searching data, analyzing, narrowing information, critical thinking, discussion and drafts development. In the past, I have suffered from regard to the ability to narrow down subjects but through critical thoughts and the ability to focus on a specified topic. The experience has been helpful in the use of different documented sources to source information and analyzes major concepts from the academic resources.

Also, the ability to select topics directly excites me in reading more articles that are associated with the business industry, which helps in the identification of the study focus. It is without a doubt that this work has been extremely important for theories and conceptual review in most of the courses that I have learned. The report has major impacts on my critical skills with relation to research approaches and empirical reviews. In general, the report was not only detailed but also entailed an investigation and study of various concepts that are essential for the development of an accurate research. The model of study has provided me with adequate knowledge for identification, evaluation, and justification of most suitable strategies. The process of literature reviews, methodology assortment, and data gathering has given me with wealthy experience of conducting a thorough research study in the nearest future. It is through this process that I have intensely improved my analytical skills across more than twenty articles and books. The process was important as it enhanced reasoned judgment and proposals within the high technology and innovation industry.

Additionally, the research in the innovation and technology field has offered me with an extensive understanding of the automobile and business industry as a whole. I have come to the realization that I have more understanding of consumer’s demands in the innovative market as the notion of an individual’s views. Most individuals believe that innovation is more of the internet and products development. However, I discovered that innovation has intense effects with regard to people’s needs and preferences. Based on the knowledge, the research with regard to the highly innovative market is mainly centered on data collection to ensure that it supports the aims and hypotheses of the study. In the beginning, I would not differentiate between empirical and literature review but through the discussion, I have realized that even though both of them entails data collection they are different. In general even where there is a broad topic one must take time to analyze and simplify the subject. It is not wise to underrate any form of a report or categorize a certain topic as easy even in the instance that it is not. Besides, based on the responses of the supervisor with respect to the topic everything with regard to research structure has been clarified. I have made the efforts of making reviews to the existing methods, theoretical alignment, results analysis and references use has advanced with time. The significance of citation to making more precise and reliable reports a matter that is commonly ignored.

After researching the topic, I have acquired clear and diverse innovation subjects that are useful as a guide in the future. It is through this investigation that I have acquired personalized and expert knowledge that relates to continuous research development which is useful in the identification of research gaps.

References

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