Customer repurchase intention in service business: a case study of car repair service business
The aim of this study is to determine the relationship between behavioural intention with customer repurchase intention, customer satisfaction, perceived service quality, perceived product quality and perceived price fairness in automobile industry, particularly in service garage. This study is specified at particular authorized automobile workshops in Indonesia. The non-probability purposive sampling was performed to obtain the samples of this research. Methodology: the survey was conducted online, using the main instrument of the data collection – the questionnaire which was adopted from previous researchers. The samples were obtained from a survey conducted for two weeks with 174 respondents. The four set of variables were then tested to ensure the validity and reliability along with the assumption test to ensure the normality, linearity, homoscedasticity and multi-collinearity, which was concluded as powerful enough to be used for this research. The statistical analyses results have supported all hypotheses stated in the research. As a result the study found positive and significant relationship of perceived service quality, perceived product quality, and perceived price fairness with customer satisfaction. In addition, in the second stage, customer satisfaction was also proven to have significant and positive relationship with repurchase intention. This study can be improved by adding the sample numbers, enlarge the samples with different car brands, and have further study on additional dependent variables. However, the current result has provided valuable inputs for automobile service garage to increase the customer repurchase intention.
JEL Classification: M21, M31, M30.
Ahmad, R. and Buttle, F. (2010). “Customer retention: A potentially potent marketing management strategy”, Journal of Strategic Marketing, Issue 9, pp. 29-45.
Anderson, S. (2008). “Linking customer satisfaction to the service concept and customer characteristic”, Journal of Service Research, Issue 10 (4), DOI: 10.1177/1094670508314575
Aspinall, E., Nancarrow, C. and Stone, M. J. (2001). “The meaning and measurement of customer retention”, Journal of Targeting, Measurement and Analysis for Marketing, vol. 10, issue 1, pp. 79-87. Available at: https://link.springer.com/article/10.1057/palgrave.jt.5740035 (Accessed 14 May 2019).
Balla, B., Ibrahim. S., and Ali, A. (2015). “The impact of relationship quality on repurchases intention towards the customers of automotive companies in Sudan”, British Journal of Marketing Studies, vol. 3, no.4, pp. 1-15. Available at: https://www.researchgate.net/publication/281404899_THE_IMPACT_OF_RELATIONSHIP _QUALITY_ON_REPURCHASE_INTENTION_TOWARDS_THE_CUSTOMERS_OF_ AUTOMOTIVE_COMPANIES_IN_SUDAN (Accessed 15 May 2019).
Balamurugan, R.N., Sathish, M., Surinder, N. D. and Karthikeyan, P. (2013). “Customer relationship management in car service industry with reference to car dealers in Coimbatore”, Journal of Business Management & Social Sciences Research (JBM & SSR), vol. 2 (6), pp.43-49. Available at: http://www.borjournals.com/a/index.php/jbmssr/article/view/237/pdf (Accessed 15 May 2019).
Bassey, F. O. (2014). “The effect of perceived price fairness on customer satisfaction and loyalty”, Podgorica, Master dissertation, Eastern Mediterranean University. Available at: https://pdfs.semanticscholar.org/e859/b7e8244e8e1006ca91dfacbe1623fd0ad48c.pdf (Accessed 17 May 2019).
Berndt, A. (2009). “Investigating service quality dimensions in South African motor vehicleservicing”, African Journal of Marketing Management, vol. 1 (1), pp. 1-9. Available at: https://academicjournals.org/journal/AJMM/article-full-text-pdf/36AD9501830 (Accessed 10 May 2019).
Bowman, D. And Narayandas, D. (2001). “Managing customer-initiated contacts with manufactures: The impact on share of category requirements and word-of-mouth behavior”, Journal of Marketing Research, vol. 38, no. 3, pp. 281-297
Buttle, F. (2009). Customer relationship management-concept & technologies. CITY of publisher: Elsevier Ltd.
Bolton, L. E., Warlop, L. and Alba, J.W. (2003). “Consumer perception of price (un)fairness”, Journal of Consumer Research, vol. 29, pp. 474- 491.
Boafo, D. N. (2015). “Effect of sales service quality on customer retention: A case study of PHC Motor Accra, Ghana”, The International Journal of Business & Management, vol. 3 (5).
CzepieI, J. A. (1990). “Service encounters and service relationships: Implications for research”, Journal of Business Research, vol. 20, pp. 13-21.
Cronin, J.J., Brady, M.K. and Hult,G. (2000). “Assessing the effects of quality value and customersatification on consumer behavioral intentions in service environments”, Journal of Retailing, vol. 76 (2), pp. 193–215
Dai, Bo. (2010). The impact of perceived price fairness of dynamic pricing on customer satisfaction and behavioral intention: The moderating role of customer loyalty. Auburn: Auburn University
Dawkins, P.M. and Reichheld, F.F. (1990). “Customer retention as a competitive weapon”, Directors & Board Summer, vol. 42 (7), pp. 20-40.
Gummesson, E. (2002). Total relationship marketing. CITY of publisher: Butterworth-Heinemann.
Hair Jr, J. F., Anderson, R. E., Tatham, R. L., Babin, B. J. and Black, W. C. (2009). Multivariate data analysis (7th ed.). New Jersey: Prentice-Hall.
Hanif, M., Hafeez, S. and Riaz, A. (2010). “Factor affecting customer satisfaction”, International Research Journal of Finance and Economics, issue 60, pp.44-52.
Haq, A. (2012). “Satisfaction towards customer loyalty in auto-mobile industry of Pakistan”, Int. J. Manag. Bus. Res., 2 (4), pp. 363-371. Available at: https://www.researchgate.net/publication/279993624_Satisfaction_towards_Customer_ Loyalty_in_Auto-Mobile_Industry_of_Pakistan (Accessed 10 May 2019).
Hellier, P. K., Gus, G., Rodney A. C. and John, A. R. (2003). “Customer repurchase intention: A general structural equation model”, European Journal of Marketing, 37 (11/12): 1762-1800. DOI: 10.1108/03090560310495456. Available at: https://www.researchgate.net/publication/242342933_Customer_Repurchase_Intention_ A_General_Structural_Equation_Model (Accessed 12 May 2019).
Homburg, C., Koschate, N. and Hoyer, W. D. (2005). “Do satisfied customers really pay more? A study of the relationship between customer satisfaction and willingness to pay”, Journal of Marketing, vol. 69, no.2, pp. 84-96. https://doi.org/10.1509/jmkg.18.104.22.168760
Hussain, N., Bhatti. W.A., and Jilani, A. (2011). “An empirical analysis of after sales service and customer satisfaction”, Management & Marketing Challenges for the Knowledge Society, vol. 6, no. 4, pp. 561-572. Available at: https://www.academia.edu/9712352/An_empirical_analysis_of_after_sales_service_and _customer_satisfaction (Accessed 18 May 2019).
Ibzan, E., Balarabe, F. and Jakada, B. (2016). “Customer satisfaction and repurchase intentions”, Developing Country Studies, vol. 6, pp. 96-100.
Ismoyo, N., Hadiwidjojo, D., Rahman, F.and Rahayu, M. (2017).“Service quality perception’s effect on customer satisfaction and repurchase intention”, European Business & Management, vol. 3 (3), pp. 37-46.
Ismail, A., Sufardi, Y. and Yunan, M. (2016). “Service quality as a predictor of customer satisfaction and customer loyalty”, Scientific Journal of Logistic, vol. 12 (4), pp. 269-283.
Izogo, E.E. and Ogba, I. (2015). “Service quality, customer satisfaction and loyalty inautomobile repair servicessector”, International Journal of Quality & Reliability Management, vol. 32, pp. 250-269
Jiang, Y. and Wang, C.L. (2006). “The impact of affecton service quality and satisfaction: The moderationof service contexts”, Journal of Services Marketing, vol. 20 (4), pp. 211–218. Available at: http://dx.doi.org/10.1108/08876040610674562 (Accessed 18 May 2019).
Kotler, P. (2000). Marketing management: The millennium edition, pp. 153-155.
Kumar, A. and Singh, B. (2016). “Role of customer satisfaction in automobile service sector”, International Journal of Engineering Technology, Management and Applied Sciences, vol. 4 (10).
Lang Tang, L., Han Shu, C. and Wen Chan, Y. (2015). Constructing a B2C repurchase intention model based on consumer perception factors.
Megatef, S. G. and Tomalieh, E. F. (2015). “The impact of customer loyalty program on customer retention”, International Journal of Business and Social Science, vol. 6, no. 8 (1), p. 78-93. Available at: http://ijbssnet.com/journals/Vol_6_No_8_1_August_2015/8.pdf (Accessed 28 May 2019).
Mesnah, R. (2018). “Effect of service quality and customer satisfaction on repurchase intention in restaurant on University of Cape Coast campus”, Journal of Tourism, Heritage and Service Marketing, vol. 4 (1), pp. 27-36. Available at: https://www.jthsm.gr/vol4iss1/4-1-5.pdf (Accessed 23 May 2019).
Olivier, R. (1997). Satisfaction: A behavior perspective on the customer. Maidenhead: McGraw-Hill.
Parasuraman, A., Zeithaml, V.A. and Berry, L. L. (1985). “A conceptual model of service qualityand its implications for future research”, Journal of Marketing, vol. 49(4), pp. 41-50.
Peyrot, M. and Doren, D. (1994). “Effect of a class action suit on consumer repurchase intentions”, Journal of Consumer Affairs, vol. 39, pp. 361-379.
Phuong, N. and Trang, T. (2018). “Repurchase intention: The effect of service quality, system quality, information quality, and customer satisfaction as mediating role: a PLS approach of m-commerce ride hailing service in Vietnam”, Marketing and Branding Research, vol. 5, pp. 78-91. Available at: https://www.researchgate.net/publication/325708845_Repurchase_Intention_The_Effect _of_Service_Quality_System_Quality_Information_Quality_and_Customer_Satisfaction _as_Mediating_Role_A_PLS_Approach_of_M-Commerce_Ride_Hailing_Service_in _Vietnam (Accessed 20 May 2019).
Saleem, A., Ghafar, A., Ibrahim, M., Yousuf ,M. and Ahmed, N. (2015). “Product perceived quality and purchase intention with customer satisfaction”, Global Journal of Management and Business Research: E Marketing, vol. 15 (1), pp.21-27. Available at: https://www.academia.edu/29725607/Product_Perceived_Quality_and_Purchase_ Intention_with_Consumer_Satisfaction_Product_Perceived_Quality_and_Purchase_Intention _with_Consumer_Satisfaction (Accessed 22 May 2019).
Soon, W.L., Run, E. and Hong, N. M. (2012). “Customer retention model – A case study of branded passenger car”, Conference Paper, Conference: International Engineering and Management Conference 2012. Available at: https://www.researchgate.net/publication/236204251 (Accessed 28 May 2019).
Tsioutsou, R. (2005). “Perceived Quality Levels and Their Relation to Involvement, Satisfaction and Purchase Intention”, Marketing Bulletin, vol. 16, Research Note 4.
Wahyuningsih (2011). “Customer value, satisfaction and behavioral intentions: The effect of customer search behavior”, Asean Marketing Journal, vol. 3. Available at: http://journal.ui.ac.id/index.php/amj/article/view/2011 (Accessed 29 May 2019).
Wulf, K. D., Schroder, G. O., Cannier, M. H. and Oppen, C. V. (2003). “What drives consumer participation to loyalty programs? A conjoint analytical approach”, Journal of Relationship Marketing, vol. 2 (1/2), pp. 69-83.
Zaw, A. and Chaipoopirutana, S. (2014), “Factors affecting customer loyalty of Toyota Cars’ owners in Yangon, Myanmar”, International Conference on Business law and corporate Social Responsibility.
Zeithaml, V. A. (1988). “Consumer perceptions of price, quality and value: A means-end modeland synthesis of evidence”, Journal of Marketing, vol. 52, pp. 2-22.