Abstract :

The Automobile Industry Faces A Persistent Strategic Dilemma: Balancing Investor-driven Profitability With The Long-term Objective Of Customer Loyalty. In The Race To Boost Short-term Financial Outcomes, Many Manufacturers Implement Aggressive Cost-cutting Measures That Compromise Vehicle Quality, Durability, And Performance. These Measures—often Mislabeled As Value Engineering—are Frequently Misunderstood And Poorly Implemented, Leading To Substandard Outcomes During The Vehicle’s Usage Phase. The Result Is Rising Maintenance Costs, User Dissatisfaction, And A Slow But Steady Erosion Of Brand Trust. This Paper Critically Explores The Broader Consequences Of Such Short-term Strategies, Revealing How They Negatively Impact Not Only Consumer Satisfaction But Also The Long-term Viability Of The Brand. It Emphasizes That Companies Are More Focused On Attracting New Buyers Than Nurturing Loyalty Among Existing Customers—despite The Latter Being More Costeffective And Impactful. As A Result, Repeat Purchases Decline, Word-of-mouth Advocacy Diminishes, And Customers Shift Toward Competitors Who Offer Better Perceived Reliability. Further, The Study Investigates How These Internal Decisions Influence External Perceptions, Including Brand Equity And Stock Market Performance. For Publicly Listed Auto Companies, Product Failures And Weakening Customer Sentiment Can Lead To Declining Revenues, Profit Warnings, And Share Price Volatility—creating A Vicious Cycle That Undermines Future Stability. The Paper Also Highlights The Untapped Potential Of Emerging Automotive Technologies. If Driven By Visionary Leadership Committed To Long-term Goals, These Innovations Could Enable The Production Of High-quality, Reliable Vehicles That Exceed Customer Expectations. However, Realizing This Potential Requires A Mindset Shift— From Reactive Cost Control To Proactive Quality And Loyalty Development. While Centered On The Automobile Industry, The Findings Are Equally Relevant To Other Sectors

Published:

25-9-2025

Issue:

Vol. 25 No. 9 (2025)

Page Nos:

247-261

Section:

Articles

License:

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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