Factors influencing Consumer’s Driving Behavior of Most Preferred Luxury Car Brand in Bangkok Thailand

Abstract

The luxury car market in Thailand is expected to keep expanding with double-digit growth this year (2022), despite the impact of lockdown measures implemented to contain the spread of COVID-19. Demand for cars and the purchasing power of prospective buyers remain strong in these segments, making Thailand a target market for upper-end car manufacturers. Revenue in the Luxury Cars market segment is projected to reach US$201m in 2022. The purpose of this research is to study factors influencing consumer’s driving behavior of his/her most preferred luxury car brand in Bangkok, Thailand. These factors include six independent first-order variables: Social Status (SS), Social Pressure (SP), Brand Personality (BP), Brand Image (BI), Brand Trust (BT), and Product (PD); three second-order latent variables: Product (PD), Brand (BRN) and Social (SOC) and one dependent variable: Car Usage Behavior (CU). 400 sample were collected using electronic questionnaire through social media. We used second-order Structural Equation Models (SEM) for data analysis. The result shows For data analysis, we employed second-order Structural Equation Models (SEM). The result shows that the RMSEA for this model is.049 (.05), which strongly implies a "near fit," and the Goodness of Fit Index (GFI) value is.968 (>. 90), indicating that the model fits well according to the descriptive measures of fit. CFI and TLI, which are incremental fit indices that compare the fit of our hypothesized model to that of a baseline model (i.e., the model with the worst fit), both have values more than.90 (CFI =.979, TLI =.900), indicating an acceptable fit. More importantly the second-order latent factors included in the model i.e. Product (PD) and Social (SOC) seem to have significant effects on influencing consumer’s driving behavior of his/her most preferred luxury car brand in Bangkok, Thailand due to their p-values are all both less than .05.