The Impact of Product Differentiation on Consumer Preferences for Total Quartz Engine Oil in the Automobile Industry

In a fast-evolving and competitive business environment, especially in developing economies like Nigeria, firms are increasingly under pressure to develop strategies that enhance consumer preference and market competitiveness. Among such strategies, product differentiation stands out as a vital tool for gaining customer loyalty and enhancing market share. However, there remains a gap in understanding how specific differentiation factors influence consumer preferences in the engine oil sector. This study therefore examined the impact of product differentiation on consumer preferences for Total Quartz engine oil in Ilorin South Local Government Area. The study specifically explored (i) how brand image affects customer loyalty, (ii) how product quality influences repurchase intention, (iii) how packaging impacts consumer perception, and (iv) how brand design contributes to brand reputation. A descriptive survey design was adopted, targeting Total Quartz engine oil users in Ilorin South. A total of 384 questionnaires were distributed using purposive sampling, out of which 373 valid responses were analyzed. Data were processed using SPSS 25.0, and hypotheses were tested using multiple regression analysis. Findings revealed that brand image significantly affects customer loyalty (R = 0.453, R² = 0.205, p = 0.000); product quality influences repurchase intention (R = 0.352, R² = 0.124, p = 0.000); packaging impacts consumer perception (R = 0.419, R² = 0.176, p = 0.000); and brand design enhances brand reputation (R = 0.478, R² = 0.228, p = 0.000). The study concluded that product differentiation has a positive and significant impact on consumer preferences. It is recommended that manufacturers of engine oil improve brand visibility, ensure top quality, and adopt innovative packaging and designs. Future research should expand the geographical scope and examine other lubricant brands for broader scope.