CONSUMER PERCEPTION TOWARDS EXCISE DUTY LEVIED IN AUTOMOBILE INDUSTRY

Abstract

The purpose of this research is to investigate the consumer understanding towards the excise taxes levied on the car. In addition, it intends to analyze their perception and purchasing criteria. Furthermore the research will compare the opinions of foreign car’s owners and local car’s owners. It will also determine their level of awareness towards the excise taxes, opinion towards government policy, satisfaction level, and impacts of such price to them. The research also provides the factors that can be master in order to know the consumer preference today for automobile market as well as the propositions and suggestions on how to improvise the national automotive policy. The questionnaires ware distributed to total of 32 staffs and lecturers of University Kuala Lumpur – MITEC who were selected as respondents of the study. Most of the respondents agreed that the excise tax imposed on vehicles notably imported car is relatively high. Next result shows that almost all the respondents considered that the price of local car is still expensive even though they gain much protection by government. Majorities of them were not satisfied with current price of both local and imported car. Finally this study found that the main criterion in selection of cars is mostly based on its perceived quality followed by price, and popularity of the cars. In conclusion, some suggestions have been made to increase the competitiveness in the automobile industry and recommendations for future research have also been included in the final part of the report.