The mediating role of customer satisfaction in customer retention model: A Case of local automobile brands in Malaysia

The automobile industry in Malaysia is facing increasing competition from foreign makes.Local automobile manufacturers, namely Perodua and Proton, are thus losing their market share. With such rapid decline in sales, it is important to ascertain the needs of customers in determining the predictors o...

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Main Authors: Koay, Kian Yeik *, Ong, Derek Lai Teik *
Format: Article
Language:English
Published: Universiti Putra Malaysia Press 2016
Subjects:
Online Access:http://eprints.sunway.edu.my/738/
http://eprints.sunway.edu.my/738/1/Derek%20Lai%20Teik%20Ong%20The%20mediating%20role%20of%20customer%20satisfaction.pdf
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author Koay, Kian Yeik *
Ong, Derek Lai Teik *
author_facet Koay, Kian Yeik *
Ong, Derek Lai Teik *
author_sort Koay, Kian Yeik *
building SU Institutional Repository
collection Online Access
description The automobile industry in Malaysia is facing increasing competition from foreign makes.Local automobile manufacturers, namely Perodua and Proton, are thus losing their market share. With such rapid decline in sales, it is important to ascertain the needs of customers in determining the predictors of repurchase intention of vehicles. This research seeks to examine the mediating role of customer satisfaction and to investigate the relationship of perceived service quality, product quality, price fairness, satisfaction, and repurchase intention. Multistage cluster sampling method was employed first in the Klang Valley before extending to a few selected authorized service centres. 200 samples were collected and data was analysed using SMART PLS 2.0 to build and assess the structural equation model of the relationships between the constructs. The results show that perceived service quality has no significant relationship with repurchase intention. However, perceived product quality, perceived price fairness and customer satisfaction are important factors that influence customers’ repurchase intention. Customer satisfaction also mediates the relationship between perceived product quality and perceived price fairness towards repurchase intention.
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spelling sunway-7382020-10-14T06:23:57Z http://eprints.sunway.edu.my/738/ The mediating role of customer satisfaction in customer retention model: A Case of local automobile brands in Malaysia Koay, Kian Yeik * Ong, Derek Lai Teik * HF Commerce The automobile industry in Malaysia is facing increasing competition from foreign makes.Local automobile manufacturers, namely Perodua and Proton, are thus losing their market share. With such rapid decline in sales, it is important to ascertain the needs of customers in determining the predictors of repurchase intention of vehicles. This research seeks to examine the mediating role of customer satisfaction and to investigate the relationship of perceived service quality, product quality, price fairness, satisfaction, and repurchase intention. Multistage cluster sampling method was employed first in the Klang Valley before extending to a few selected authorized service centres. 200 samples were collected and data was analysed using SMART PLS 2.0 to build and assess the structural equation model of the relationships between the constructs. The results show that perceived service quality has no significant relationship with repurchase intention. However, perceived product quality, perceived price fairness and customer satisfaction are important factors that influence customers’ repurchase intention. Customer satisfaction also mediates the relationship between perceived product quality and perceived price fairness towards repurchase intention. Universiti Putra Malaysia Press 2016 Article PeerReviewed text en http://eprints.sunway.edu.my/738/1/Derek%20Lai%20Teik%20Ong%20The%20mediating%20role%20of%20customer%20satisfaction.pdf Koay, Kian Yeik * and Ong, Derek Lai Teik * (2016) The mediating role of customer satisfaction in customer retention model: A Case of local automobile brands in Malaysia. Pertanika Journal Social Sciences & Humanities, 24 (S). pp. 27-40. ISSN 0128-7702
spellingShingle HF Commerce
Koay, Kian Yeik *
Ong, Derek Lai Teik *
The mediating role of customer satisfaction in customer retention model: A Case of local automobile brands in Malaysia
title The mediating role of customer satisfaction in customer retention model: A Case of local automobile brands in Malaysia
title_full The mediating role of customer satisfaction in customer retention model: A Case of local automobile brands in Malaysia
title_fullStr The mediating role of customer satisfaction in customer retention model: A Case of local automobile brands in Malaysia
title_full_unstemmed The mediating role of customer satisfaction in customer retention model: A Case of local automobile brands in Malaysia
title_short The mediating role of customer satisfaction in customer retention model: A Case of local automobile brands in Malaysia
title_sort mediating role of customer satisfaction in customer retention model: a case of local automobile brands in malaysia
topic HF Commerce
url http://eprints.sunway.edu.my/738/
http://eprints.sunway.edu.my/738/1/Derek%20Lai%20Teik%20Ong%20The%20mediating%20role%20of%20customer%20satisfaction.pdf