Customer Perceptions of Mediating Role of Ownership Cost in Garvin's Dimensions of Quality

Abstract

In relation to Garvin's dimensions of quality, this paper investigates the influence of ownership cost on automobiles customers' perspective through maintenance, service and repair. A quantitative survey approach was applied and the results were analyzed using Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA). Both analyses were conducted in Japan using different sets of sample sizes (n = 300 for EFA and n = 668 for CFA). Structural Equation Modeling (SEM) was employed for examining the relationships between various constructs in the conceptual model, including six different dimensions of product quality, ownership cost, customer satisfaction, and customer loyalty. From the structural model, nine out of twelve hypotheses were supported, and the ownership cost factor was revealed as playing a significant role in enhancing customer loyalty. In addition to empirically examining this new conceptual model, this research discusses the managerial implications corresponding to the research outcomes.