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Consumers' Perceived Quality, Perceived Value and Perceived Risk Towards Purchase Decision on Automobile

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  • Choy Johnn Yee
  • Ng Cheng San

Abstract

Problem statement: As the level of competition keep on increasing in Malaysia automobile market, it is essential for every automobile producer companies to understand customer insight in order to further increase their share of wallet. Thus, they need to understand what factors might influence their customers’ decision in purchasing an automobile. Therefore, the objectives of this research is to study the relationships of perceived quality, perceived value and perceived risk that will affect on Malaysia consumer purchase decision towards cars. Approach: Survey using convenience sampling was done at Klang Valley to customers’ age between 23-65 years old and above. Questionnaires were distributed to 200 respondents at the sampling location. Results: All the 200 sets of data were reliable where Cronbach’s alpha is more than 0.6. Pearson correlation also showed the strength of the relationship between those variables and normality assumption was meet. Results from multiple regression analysis showed the positive association between the three factors mentioned previously with purchase decision. Conclusion/Recommendations: The results from this research provide a platform for Malaysia automobile makers to understand consumer behavior and how it affects their purchase decision. In order to ensure that the findings of sample are representative and conclusive, future research should be include with larger number of respondents.

Suggested Citation

  • Choy Johnn Yee & Ng Cheng San, 2011. "Consumers' Perceived Quality, Perceived Value and Perceived Risk Towards Purchase Decision on Automobile," American Journal of Economics and Business Administration, Science Publications, vol. 3(1), pages 47-57, January.
    • Handle: RePEc:abk:jajeba:ajebasp.2011.47.57
    DOI: 10.3844/ajebasp.2011.47.57
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    1. Dowling, Grahame R & Staelin, Richard, 1994. "A Model of Perceived Risk and Intended Risk-Handling Activity," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(1), pages 119-134, June.
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    2. Maksymilian Czeczotko & Hanna Górska-Warsewicz & Wacław Laskowski, 2020. "Towards Sustainable Private Labels—What is the Consumer Behavior Relating to Private Labels in the UK and Poland?," Sustainability, MDPI, vol. 12(15), pages 1-18, July.
    3. Ya-Hui Wang & Cing-Fen Tsai, 2014. "The Relationship Between Brand Image and Purchase Intention: Evidence from Award Winning Mutual Funds," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 8(2), pages 27-40.
    4. Prof. Priti D Salvi & Prof. Kalpesh B Prajapati, 2015. "Exploring the Factors Influencing the Choice of Young Generation while Buying Cars: A Factor Analysis Approach," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 6(2), pages 41-44, May.
    5. Weisstein, Fei L. & Song, Lei & Andersen, Peter & Zhu, Ying, 2017. "Examining impacts of negative reviews and purchase goals on consumer purchase decision," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 201-207.
    6. Zubair Hassan, 2017. "Impact of Social, Epistemic and Conditional Values on Customer Satisfaction and Loyalty in Automobile Industry: A Structural Equation Modelling," Journal of Marketing and Consumer Behaviour in Emerging Markets, University of Warsaw, Faculty of Management, vol. 1(5), pages 29-44.
    7. Artur Wolak & Kamil Fijorek & Grzegorz Zając, 2020. "Professional Car Drivers’ Attitudes toward Technical, Marketing and Environmental Characteristics of Engine Oils: A Survey Study," Energies, MDPI, vol. 13(8), pages 1-14, April.
    8. Ya-Hui Wang, 2015. "Does Internet Information Influence Fund Investors’ Purchase Intention?," Review of Business and Finance Studies, The Institute for Business and Finance Research, vol. 6(2), pages 11-19.
    9. Ya-Hui Wang, 2017. "Are Investors Willing to Buy Non-award-wining Funds from Awarded Fund Companies?," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 7(1), pages 1-4.
    10. Alvino, Letizia & Dangelico, Rosa Maria, 2022. "Investigating the antecedents of consumer behavioral intention for sustainable fashion products: Evidence from a large survey of Italian consumers," Other publications TiSEM ed6b6a75-2a9f-4b6e-8076-9, Tilburg University, School of Economics and Management.
    11. Yueying Wang & Ying Tian, 2023. "The Impact of New Energy Vehicle Product Attributes on Consumer Purchase Intention in the Backdrop of Sustainable Development Goals," Sustainability, MDPI, vol. 15(3), pages 1-16, January.
    12. Wan Hussain Wan Ishak, 2011. "A Review Note of KMICe 2010: Knowledge Management Initiatives to Improve Organization Performance," American Journal of Economics and Business Administration, Science Publications, vol. 3(1), pages 219-223, March.
    13. Beneke, Justin & Carter, Stephen, 2015. "The development of a consumer value proposition of private label brands and the application thereof in a South African retail context," Journal of Retailing and Consumer Services, Elsevier, vol. 25(C), pages 22-35.
    14. Dangelico, Rosa Maria & Alvino, Letizia & Fraccascia, Luca, 2022. "Investigating the antecedents of consumer behavioral intention for sustainable fashion products: Evidence from a large survey of Italian consumers," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
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