A Study on Customer Perception on Service Quality of Car Dealer in Thanjavur District

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Emperor International Journal of Finance And Management Research [EIJFMR] ISSN: 2395-5929

@Mayas Publication Page 57

A STUDY ON CUSTOMER PERCEPTION ON SERVICE QUALITY OF

CAR DEALER IN THANJAVUR DISTRICT

Mr. P. RAJESH

Ph.D (Part- Time- Commerce), PG & Research Department of Commerce, Periyar EVR College, Tiruchirappalli – 23

Dr. R. KANNAPPA

Assistant Professor & Research Advisor, PG & Research Department of Commerce, Periyar EVR College, Tiruchirappalli – 23

Introduction

The automotive Industry in India is now

working in terms of the dynamics of an open

market. Many joint ventures have been set

up in India with foreign collaboration, both

technical and financial with leading global

manufacturers. The Government of India is

keen to provide a suitable economic and

business environment conducive to the

success of the established and prospective

foreign partnership ventures.

In India for inducting and absorbing the

latest technology and upgrading the quality

of products to an international level and a

partner search mission is on. Indian firms

are on the lookout for Joint Ventures and

Technology Transfers specializing in niche

technology and to complement their range of

products as well as bench marking with the

world‟s latest and the best.

India's potential in both economic and

population terms and the effect it will have

on the auto industry in the years to come.

With a well-developed components industry

and a production level of one million

four-wheeled vehicles a year, plus a further five

million two- and three-wheelers, India came

to be recognized as a potential emerging

auto market a few years back. India has

lately emerged as one of the fastest growing

auto markets in the world, and one of the

main reasons behind that is the fact that the

car market is also undergoing significant

structural shifts.

The next three to four years could see the

industry pump in as much as $5 billion, "out

of which foreign direct investment would be

close to $3 billion -- higher than ever,"

According to the Society of Indian

Automobile Manufacturer's projections,

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and utility vehicles) are set to grow at 20

percent over the next two years, given the

current GDP growth, and exports at 40

present.

Service

Service industries are playing an

increasingly important role in the overall

economies of the countries of developed and

developing countries. Researchers have tried

to define service and to explain what service

constitutes. There are many definitions

regarding the concepts of service. Services

are deeds, processes, and performances (J

Parasuraman et al. 1985). Gronroos (1983)

defined service as: “An activity or series of

activities of more or less intangibles nature

that normally, but not necessarily, take place

in interactions between the customer and

service employees and/or physical

resources, goods or systems of service

provider. Service is any primary or

complementary activity that does not

directly produce a physical product - that is,

the non-goods part of the transaction

between customer and provider" (Payne,

1993).

Service Quality

Service quality has become a major area of

attention during the past few decades for

managers, researchers, practitioners because

of its huge impact on business performance

of firms. Brown and Swartz (1989) think

that customers prefer and value companies

that provide high service quality. Thus, the

attainment of quality in products and

services has become a prime concern of the

1980s. Customers judge service quality

relative to what they want by comparing

their perceptions of service experiences with

their expectations of what the service

performance should be the service of the

quality.

Review of Literature

William B Dodds (1991) investigated the

effects of the intrinsic cues of price brand

and store information on consumer

perception of product quality. They found

that price had a positive effect on perceived

quality but a negative effect on perceived

value and respondent‟s willingness to buy.

Samson Itamer (1992) has observed that

purchase decisions are determined on the

basis of both absolute attributes of the

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within the particular choice set under

consideration. He has further suggested that

consumers are less likely to choose

alternatives that are offered with unneeded

features or premium even when the features

do not reduce the value of the product in any

way. Aradhana Krishna (1994) viewed that

buyers purchase behavior can be influenced

not only by the current price of a product but

also by what price they expect in future.

Gerald D Bell (1967) studies how a new car

buyer feels about his purchase and what

factors determine his reactions when he

begins living with his new car. The finding

of this investigation suggests the effect of a

customer‟s self confidence his personality

and the quality of service he receives upon

his cognitive dissonance. Edward L Grubb

and Greg Hupp (1968) test a methodology

for measurement of self concept and

consumer behavior in comparable terms and

therefore to further substantiate the

relationship of self theory to consumer

behavior. The author suggest that the owner

of a specific make of automobiles perceive

themselves as having self concepts similar to

those of others who own the make of an

automobile. Darlin Doman (1983) in the

article has mentioned that satisfied new car

buyers discuss their experiences with eight

people dissatisfied buyers complain to an

average of twenty two people.

Measures of Automobile Service Quality

Service quality in retailing is different from

any other product and service environment

(Finn, 2004). Because of the unique nature

of automobile service, improvements and

measurements of quality in automobile

cannot be approached in the same way as

that of the services perspective. In any

automobile service, it is necessary to look at

quality from the perspective of services as

well as goods and derive a set of items that

accurately measure this construct (Mehta et

al., 2000). For this reason, Dabholkar et al.

(1996) developed and empirically validated

the Retail Service Quality Scale (RSQS) to

capture dimensions important to retail

customers based on the triangulation

qualitative research technique. They

conducted qualitative research using three

different methodologies - phenomenological

interviews, exploratory depth interviews,

and tracking the customer through the store.

Combining these qualitative findings with

the existing literature and SERVQUAL,

Dabholkar et al. (1996) proposed that retail

service quality has a ierarchical factor

structure comprising five basic dimensions,

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and „policy‟, with first three basic

dimensions having two sub-dimensions each

and overall service quality as a second order

Information Seeking Preference of Car Buyers

Perceived value upon customer

satisfaction

The proposed relationship of perceived

value upon customer satisfaction is

supported by value disconfirmation

experience. When a single purchase of a

product or service is made, the customer

expects to receive a benefit greater than the

cost, that is, the customer expects to receive

value. If anything happens after the purchase

that unexpectedly reduces or increases the

cost incurred or benefit received, the

perceived value is altered. The customer

becomes less or more satisfied, which in

turn influences subsequent customer value

expectations, purchase behaviour and

overall customer satisfaction (Carr, 1990;

Voss et al., 1998; Woodruff, 1997).

Perceived quality of service upon customer satisfaction

The relationship of quality to satisfaction at

either the transaction-specific or global level

of analysis is not universally agreed upon

(Parasuraman et al., 1994b; Taylor and

Baker, 1994; Zahorik and Rust, 1992). Some

analysts treat perceived quality as a

relatively stable perception of the service

which is influenced as customers experience 0

10 20 30 40 50 60 70 80

Information Seeking 72

53

45

52 57

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satisfaction or dissatisfaction with specific

instances of the service over time

(Athiyaman, 1997; Bejou et al., 1996;

Bolton and Drew, 1991a, b; Boulding et al.,

1993).

Even where perceived quality is understood

to be antecedent to satisfaction, some

researchers indicate that there can be

diminishing satisfaction returns to an

increase in the level of service quality

(Anderson and Sullivan, 1993; Caruana and

Pitt, 1997; Johnston, 1995; Mittal et al.,

1998; Woodruff, 1997). It is also argued that

perceived quality may not be a significant

determinant of customer service assessments

when the service has high credence

attributes (Powpaka, 1996). This paper tests

the view that perceived quality is a direct

positive antecedent to satisfaction.

Customer satisfaction has a positive effect to

recommendation but not repurchase

intention as well. This can be conclude that

the respondents are willing to recommend

the car brand that they are satisfy with to

someone but may not buy the same car

brand in the future. After that we ask some

respondents who were satisfy but may not

buy the same car brand and we found that it

is because the respondents want to buy the

more expensive brand if they earn more

money. Perceived service quality has

positive effect to perceived value. This mean

if the customers received good service the

value in their eyes will increase.

Conclusion

From the above discussions it is concluded

that the customer satisfaction is most

important part of any industry. So it is the

main responsibility of service industries to

improve customer satisfaction and quality of

service which is beneficial to enhance the

no. of new customers. When the service

industries provide the best in class service

than there is no need to expand money on

promotions and advertisement because a

satisfied customer directly promote the

brand of particular product and this is

directly the word to mouth communication

or promotion and it will be the most

effective for particular service industry. The

study will bring to light the relevance of

maintaining quality as a means of offering

satisfaction to four wheeler vehicle owners

during the active period of use of the

vehicle. The four wheeler automobile

service industries will be better equipped to

take decisions on the right investments to

improve on quality of service and eventually

on customer satisfaction. The result of this

research work will benefit the society since

this will serve as an information base which

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and data on customer behavior in the

automobile services sector.

Reference

1. Rampal, M.K. and Gupta, S.L. 2008,

“Chapter 21-23: Service Marketing: Concepts, Applications and cases,”

Galgotia Publishing Company, New

Delhi, pp. 289-315.

2. Zeithmal, V.A., (2000), “service quality

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review of extant knowledge”, Journal of

the Academy of Marketing Science,

Vol.30 No.4, pp.362-75.

3. Berndt, A., 2009, “Investigating Service

Quality Dimensions in South African

Motor Vehicle Servicing, “African

Journal of Marketing Management,

April, vol. 1(1), pp. 001-009.

4. Landrum, H., Prybutok, V., Zhang, X.,

and Peak, D., 2009, “Measuring IS

System Service Quality with

SERVQUAL: Users‟ Perceptions of

Relative Importance of the Five

SERVPERF Dimensions,” Informing

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5. Bojanic, D.C. (1991), “Quality

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