An Integrated Model for the Effects of Perceived Product, Perceived Service Quality, and Perceived Price Fairness on Consumer Satisfaction and Loyalty

Abstract

A survey of 495 customers is conducted in 15 repair centers of three major auto firms, Mitsubishi, Nissan, and Toyota. The results illustrate that (a) perceived service quality mainly affects consumer loyalty through satisfaction, while (b) perceived product quality and perceived price fairness have both direct and indirect (through satisfaction) effects on loyalty. Consumers' perceptions about service quality, product quality, and perceived price fairness are almost equally important to build up their satisfaction. It is suggested that managers consider product quality and price as the foundations to build up consumer satisfaction and loyalty and to improve service quality as an add-on value to consumers.