Analysis of Product Quality and Customer Satisfaction: A Case Study of the Automotive Parts Industry

https://doi.org/10.35912/ijfam.v6i2.2153
Published: Nov 4, 2024

Abstract:

Purpose: The automobile parts industry is a technologically and capital-intensive industry with a vast supply chain that influences various related industries. Many Taiwanese automobile parts manufacturers are small to medium-sized enterprises, with a complete industry supply chain. They possess the advantages of small-scale, diversified, and flexible manufacturing, enabling them to compete internationally and potentially enter the supply chains of international car manufacturers. Good product quality is favored by customers, and there is a correlation between product quality and customer satisfaction. The design of product attributes is primarily aimed at meeting customer needs. To outperform competitors, companies can establish additional value in their products to actively please customers and even enhance customer loyalty. This study investigates the differences in demographic variables on product quality and customer satisfaction and analyzes the degree of correlation between the two variables.

Research Methodology: This study adopts a questionnaire survey method as the tool for data collection. The questionnaire is designed based on the research objectives, focusing on customer satisfaction, to explore the satisfaction levels of the case company's relevant dimensions among existing customers and compare them with customer expectations, providing recommendations accordingly. The subjects of this study are companies in the automotive parts industry with a capital of over ten million. The questionnaire was distributed from April to May 2022, with a total of 170 questionnaires distributed and 157 collected, resulting in a response rate of 92.35%.

Results: The study results indicate significant differences in gender, marital age, education level, and seniority concerning product quality and customer satisfaction, but no significant differences were found in the organizational size of the company. Subsequent Pearson correlation analysis reveals a Pearson correlation coefficient of 0.85, indicating a high correlation between product quality and customer satisfaction. This suggests that excellent product quality influences customer satisfaction.

Limitations: This study focused on the case of the automotive parts industry to explore the differential analysis of product quality and customer satisfaction. The research results are only applicable to the automotive parts industry.

Contribution: The study found a positive correlation between product quality and customer satisfaction. Therefore, the capability to enhance product quality, making products attractive and creating differentiated brand value, is actively pursued by companies as a development goal. The results of this study are consistent with previous research findings. With more streamlined product quality and detailed production history information, consumers' willingness to purchase increases. As consumer purchasing intention rises, so does brand loyalty, leading to increased profitability and surpassing competitors.

Keywords:
1. Automobile Parts Industry
2. Product Quality
3. Customer Satisfaction
Authors:
1 . Chu-chuan Hsu
Yu Da University of Science and Technology, Taiwan
2 . Shun-Hsing Chen
Asia Eastern University of Science and Technology, Taiwan2
3 . Xiu-chun Feng
Kuo Chuan Precision. CO., LTD. Taiwan
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How to Cite
Hsu, C.- chuan ., Chen, S.-H., & Feng, X.- chun . (2024). Analysis of Product Quality and Customer Satisfaction: A Case Study of the Automotive Parts Industry. International Journal of Financial, Accounting, and Management, 6(2), 245–259. https://doi.org/10.35912/ijfam.v6i2.2153
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Issue & Section
Vol. 6 No. 2 (2024): September
Articles
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    Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: a means-end model and synthesis of evidence. Journal of marketing, 52(3), 2-22.

    Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of marketing, 60(2), 31-46.

  1. Affairs, M. o. E. (2024). Revenue of the Automotive and its Parts Manufacturing Industry. Retrieved from https://www.moea.gov.tw/Mns/dos/home/Home.aspx
  2. Bitner, M. J. (1990). Evaluating service encounters: The effects of physical surroundings and employee responses. Journal of marketing, 54(2), 69-82.
  3. Cardozo, R. N. (1965). An experimental study of customer effort, expectation, and satisfaction. Journal of marketing research, 2(3), 244-249.
  4. Chen, S.-H., Chen, Y.-J., & Leung, W.-C. (2023). Analyzing differences in customer satisfaction on the video streaming platform Netflix. Annals of Management and Organization Research, 4(3), 193-209.
  5. Chen, S.-H., & Shun, Y.-L. (2023). Integrating Importance-Satisfaction Model and Performance Evaluation Matrix to improve service quality. International Journal of Financial, Accounting, and Management, 5(3), 373-386.
  6. Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. psychometrika, 16(3), 297-334.
  7. Deming, W. E. (2000). Out of the Crisis: MIT Press.
  8. Diarti, Y., & Hesniati, H. (2024). Factors affecting consumers intention in purchasing eco-friendly cosmetic products in Batam City. International Journal of Financial, Accounting, and Management, 6(1), 33-46.
  9. Garvin, D. A. (1984). What Does “Product Quality” Really Mean? Sloan management review, 25, 25-43.
  10. Gerson, R. F. (1994). Measuring Customer Satisfaction: Kogan Page.
  11. Gudda, K., Keitany, P. J., & Ombok, M. (2023). Supplier development, integration and procurement performance of steel manufacturing firms in Kenya.
  12. Huang, H., & Chia-Chang, L. (1997). Product Performance Signaling, Customer Satisfaction and Post-purchase Behavior: An Integrated Analysis. Tai Da Guan Li Lun Cong, 8(1), 25.
  13. Jemal, S. (2022). The Effect of Supply Chain Management on the Performance of Commercial Bank Organization in Ethiopia's Case of Jimma City. International Journal of Financial, Accounting, and Management, 4(3), 285-302.
  14. Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. Journal of marketing, 57(1), 1-22.
  15. Khodadad Hosseini, S. H., & Behboudi, L. (2017). Brand trust and image: effects on customer satisfaction. International journal of health care quality assurance, 30(7), 580-590.
  16. Kotler, P. (1997). Marketing Management: Analysis, Planning, Implementation, and Control: Prentice Hall.
  17. Kotler, P. (2000). Marketing Management, Millenium Edition.
  18. Kotler, P. (2002). Marketing Management (11th ed.): Prentice Hall.
  19. Kotler, P. (2003). Marketing management: Prenhallindo Jakarta.
  20. Mitra, S., & Jenamani, M. (2020). OBIM: A computational model to estimate brand image from online consumer review. Journal of business research, 114, 213-226.
  21. Olsen, S. O. (2002). Comparative evaluation and the relationship between quality, satisfaction, and repurchase loyalty. Journal of the Academy of Marketing Science, 30(3), 240-249.
  22. Ou, W.-M., Shih, C.-M., & Chen, C.-Y. (2014). Antecedents and consequences of relationship commitment: an empirical study in Taiwan. International Journal of Commerce and Management, 24(3), 228-242.
  23. Parasuraman, A. P., Zeithaml, V., & Berry, L. (1988). SERVQUAL A Multiple-item Scale for Measuring Consumer Perceptions of Service Quality. Journal of retailing, 64, 12-40.
  24. PJ, S., Singh, K., Kokkranikal, J., Bharadwaj, R., Rai, S., & Antony, J. (2023). Service quality and customer satisfaction in hospitality, leisure, sport and tourism: An assessment of research in web of science. Journal of Quality Assurance in Hospitality & Tourism, 24(1), 24-50.
  25. Rogers, C. R. (1965). Client-centered Therapy: Its Current Practice, Implications and Theory.
  26. Shyu, C.-S., Yen, C.-C., & Lin, C.-S. (2023). The Impact of Consumer Loyalty and Customer Satisfaction in the New Agricultural Value Chain. Agriculture, 13(9), 1803.
  27. Sureshchandar, G., Rajendran, C., & Anantharaman, R. (2002). The relationship between service quality and customer satisfaction–a factor specific approach. Journal of services marketing, 16(4), 363-379.
  28. Tanha, M., Siddique, M. A., Sumon, M. M. I., Nurulhoque, M., Sazin, R., & Hossain, P. (2023). Cash Recycling Machine (CRM) & its impact on customer satisfaction: A study on UCB PLC. Annals of Management and Organization Research, 5(2), 72-97.
  29. Tian-Cole, S., Crompton, J. L., & Willson, V. L. (2002). An empirical investigation of the relationships between service quality, satisfaction and behavioral intentions among visitors to a wildlife refuge. Journal of Leisure research, 34(1), 1-24.
  30. Tsiotsou, R. (2005). Perceived quality levels and their relation to involvement, satisfaction, and purchase intentions. Marketing Bulletin, 16(4), 1-10.
  31. TTR. (n.d.). Development Trends of Automobile and Parts Manufacturing Industry (2023).
  32. Tu, X. Y. (2022). The road to intelligent manufacturing of Taiwan's automotive components. Retrieved from https://www.itri.org.tw/ListStyle.aspx?DisplayStyle=18_content&SiteID=1&MmmID=1036452026061075714&MGID=1163244507353506435
  33. Yang, K.-J., Chen, S.-H., & Yang, C.-C. (2020). Establishment and applications of quality management system for service industries. International Journal of Financial, Accounting, and Management, 1(4), 199-207.
  34. Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: a means-end model and synthesis of evidence. Journal of marketing, 52(3), 2-22.
  35. Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of marketing, 60(2), 31-46.