FACTORS AFFECTING CUSTOMER DECISIONS REGARDING STANDALONE CAR DETAILING BY MISS PANSIRI SRISUAYSAKUL AN INDEPENDENT STUDY SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE PROGRAM IN MARKETING (INTERNATIONAL PROGRAM) FACULTY OF COMMERCE AND ACCOUNTANCY THAMMASAT UNIVERSITY ACADEMIC YEAR 2014 COPYRIGHT OF THAMMASAT UNIVERSITY
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FACTORS AFFECTING CUSTOMER DECISIONS
REGARDING STANDALONE CAR DETAILING
BY
MISS PANSIRI SRISUAYSAKUL
AN INDEPENDENT STUDY SUBMITTED IN PARTIAL
FULFILLMENT OF
THE REQUIREMENTS FOR THE DEGREE OF
MASTER OF SCIENCE PROGRAM IN MARKETING
(INTERNATIONAL PROGRAM)
FACULTY OF COMMERCE AND ACCOUNTANCY
THAMMASAT UNIVERSITY
ACADEMIC YEAR 2014
COPYRIGHT OF THAMMASAT UNIVERSITY
FACTORS AFFECTING CUSTOMER DECISIONS
REGARDING STANDALONE CAR DETAILING
BY
MISS PANSIRI SRISUAYSAKUL
AN INDEPENDENT STUDY SUBMITTED IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE
OF MASTER OF SCIENCE PROGRAM IN MARKETING
(INTERNATIONAL PROGRAM)
FACULTY OF COMMERCE AND ACCOUNTANCY
THAMMASAT UNIVERSITY
ACADEMIC YEAR 2014
COPYRIGHT OF THAMMASAT UNIVERSITY
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Independent Study Title FACTORS AFFECTING CUSTOMER
DECISIONS REGARDING STANDALONE
CAR DETAILING
Author Miss Pansiri Srisuaysakul
Degree Master of Science Program in Marketing
(International Program)
Major Field/Faculty/University Faculty of Commerce and Accountancy
Thammasat University
Independent Study Advisor
Associate Professor James E. Nelson, Ph.D.
Academic Years 2014
ABSTRACT
The purpose of this study is to identify the factors affecting customer decisions
regarding standalone car detailing services including customers’ decision criteria and
influencing factors. The research analysis will also provide customer behavior in terms
of usage and demographic toward standalone car detailing. The research methodology
includes both quantitative and qualitative analysis. The exploratory research and
descriptive research will facilitate researcher to indicate factors affecting customer
decisions regarding standalone car detailing. The study also used secondary data to find
general information of the car detailing business, car detailing shop, and the current
market situation. In-depth interviews were conducted with eight participants in order to
reveal customer insight in terms of attitude and behavior and the results was applied for
qualitative data. There are 169 respondents whose age between 18-55 years, own a car
and decide for themselves to select car detailing service participated in the survey. The
survey data have been analyzed using the Statistic Package for Social Science (SPSS)
by Frequency Distribution, Mean comparison, ANOVA, Cross Tabulation and Chi-
Square Test techniques. Overall factors affecting customer decisions regarding
standalone car detailing are convenient location of the shop, reasonable price,
professional staff and meticulous process. In terms of customers’ criteria, customer
concern on quality of service as a first priority. For influencing factors, family,
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girlfriend/boyfriend/spouse and friends are the most potential influence whereas social
media of the shop such as facebook and/or instagram is the most effective media. In
order to persuade the customers, promotion is the most effective tool since women are
sensitive to promotion more than men.
Keywords: Car detailing, Auto detailing, The detailing service, Standalone Car
detailing, Factors affecting customer decisions, Decision making factors.
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ACKNOWLEDGEMENTS
First and foremost, I would like to express my sincere gratitude to my
advisor Assoc. Prof. Dr. James E. Nelson for the continuous support, for his patience,
beneficial advice and knowledge throughout my independence study. He devote his
valuable time to shape my research more sharpen, suggest plenty of useful comments
including demonstrated a statistic when I confused. These assistances are very helpful
for research writing and this independence study would never been completed without
him. He is the best advisor that I ever had.
My sincere thanks also go to my friends particularly “Rad Around” and
“PSM” groups for sharing good times and bad times together more than ten years and
my sister, Fahfahblossom for her encouragement and the grate support.
Furthermore, I am also very thankful for all contribution of respondents
who answered the questionnaire.
Lastly, I would express a deep sense of gratitude to my parents,
Srisuaysakul family and Suthikul family who always stand by me, helping me get
through the difficult times and supporting me spiritually throughout my life.
Miss Pansiri Srisuaysakul
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TABLE OF CONTENTS
Page
ABSTRACT (2)
ACKNOWLEDGEMENTS (4)
LIST OF TABLES (7)
LIST OF FIGURES (8)
CHAPTER 1 INTRODUCTION 1
1.1 Purpose of the study 3
CHAPTER 2 REVIEW OF LITERATURE 4
2.1 The Consumer decision model 4
2.1.1 Developed model of consumer buying decision process 4
2.2 A conceptual model of service quality and its implications
for future research 5
2.2.1 Service quality 5
2.2.2 Model of service quality gap 6
2.3 Angie's list 7
2.3.1 Guide to car washes 7
CHAPTER 3 RESEARCH METHODOLOGY 9
Research Methodology 9
3.1 Exploratory research 9
3.1.1 Secondary research 9
3.1.2 Observation 10
3.1.3 In-depth Interview 10
3.2 Descriptive research 10
3.2.1 Questionnaire Survey 10
Data Collection 12
3.3 Data Analysis 13
Limitations of the study 13
CHAPTER 4 RESULTS AND DISCUSSION 15
Data analysis and results 15
Frequency Distribution 15
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Differences between groups (ANOVA and Crosstabs) 26
CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS 37
REFERENCES 40
APPENDICES
APPENDIX A 41
APPENDIX B 49
APPENDIX C 53
APPENDIX D 55
BIOGRAPHY 58
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LIST OF TABLES
Tables Page
1. Frequencies, means and standard deviations for 41 factors that
customers concern in choosing detailing service 18
2. Sample size and percentage of each factors that customers consider
as important factors. 22
3. Results of One-way ANOVA for 41 factors that customers
concern in choosing the detailing service among light moderate
and heavy user. 26
4. Responses by usagegroup with brand of cleaning products 29
5. Responses by usagegroup with shop close to your house or your workplace 29
6. Results of One-way ANOVA for 41 factors that customers
concern in choosing the detailing service between male and female 30
7. Responses by gender with loyalty card 33
8. Responses by gender with privilege membership 33
9. Responses by gender with payment by credit card are accepted 33
10. Responses by gender with Complementary gifts 34
11. Responses by gender with speed of service 34
12. Results of One-way ANOVA for influencer in selecting
the detailing shop between male and female 34
13. Responses by gender with influencers 35
14. Results of One-way ANOVA for influencer in selecting
the detailing shop level of education 35
15. Responses by level of education with influencers 35
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LIST OF FIGURES
Figures Page
1.1 Developed conceptual model from consumer buying decision process 4
model of Engel, Kollat and Blackwell in 1968.
1.2 Model of service quality gaps 5
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CHAPTER 1
INTRODUCTION
In Thailand, the manufacture of cars swelled from less than 500,000 units in
1998 to a high of nearly 2.5 million units in 2012 (2,428,181 cars to be exact)
(Vanhaleweyk, 2014). The Thai automotive industry had a tremendously productive
year in 2012. That year, first-time car buyers could obtain considerable reductions for
their purchase, a product of the Thai government’s fiscal policies, which was the
primary cause of the good fortune (Vanhaleweyk, 2014). First-time car owners could
get tax reimbursements of up to 100,000 baht (around 3,070 USD) under Yingluck
Shinawatra’s government policy. Provided the vehicle’s engine size did not exceed
1,500 cc and the price of the car was under 1 million baht, this plan was accessible
when purchasing small cars or (pick-up) trucks. Tax rebates to first-time car buyers
exceeded 90 billion baht (roughly 3 billion USD). Nearly 1.25 million cars and small
trucks were sold and benefited from the scheme (Vanhaleweyk, 2014). The projected
expenditure for the policy was exceeded extensively by the amount of funds paid out
by the government (and the amount of vehicles sold). Vehicle sales reached 1.33 million
units in 2013 based on information collected by Toyota Motors Thailand (The Nation,
2014). Total domestic vehicle sales topped over one million units in 2014, as calculated
by The Federation of Thai Industries' Automotive Industry Club (MCOT, 2014). The
first-car policy not only boosted domestic car sales significantly, but also drove demand
for related industries such as automobile parts and maintenance services, including the
detailing businesses.
In addition, Thai people have been changing their lifestyle to live in
condominiums because of various advantages such as convenient locations. For
example, there are plenty of condominium projects close to the routes for the Skytrain
and the subway. Condominiums also usually have full facilities such as fitness rooms,
swimming pools, laundry, garden and library as well as covered parking lots, all
including maintenance services. In the first 6 months of 2014, there were a reported
16,750 new condominium units based on land department registrations. This compared
to the entire accessible stock for greater Bangkok at approximately 414,550 units
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(Corben, 2014). Colliers International Thailand, consisting of property consultants and
real estate advisors, anticipate the availability of more than 50,000 condominium units
for sale in 2014 (Corben, 2014). Although there are numerous benefits of the
condominium lifestyle, there are some disadvantages of living that should be
considered as well. One main problem is that condominiums do not have car wash
facilities for residents or areas for residents to wash cars themselves.
From the two major points mentioned previously, a car detailing service is an
interesting prospect for a business since it can support vehicle proliferation and fulfill
the need of condominium inhabitants. Furthermore, shares from the Thailand car
detailing market have risen sharply 75%, from 2.5 billion baht (approximately 77
million USD) in 2008 to 10 billion baht (around 307 million USD) in 2014 (Manager,
2014). Mr. Chaichan Oupapan, executive director of The Perfect Shine (TPS), a car
detailing and glass coating company in Thailand, revealed that the car detailing business
grew 30% in 2014, gaining market share at 10 billion baht (around 307 million USD).
This consisted of car detailing at 8 billion baht (about 246 million USD) and products
and services at 2 billion baht (roughly 61 million USD), in a market that will continue
to grow in 2015 (Posttoday, 2015).
Ample proof that the industry has potential and that an entrepreneur could reap
immense benefits by starting a car detailing business is contained in the statistics. The
overall study of detailing businesses and involves the way to persuade customers by
discovering what the vital factors are that attract customers to use a detailing service,
particularly standalone car detailing. The definition of “standalone” means a place
located in a specific area of land and “car detailing” means the act of washing,
vacuuming and/or waxing cars, either by hand or with automatic machinery. The
information gained from this study will be useful for entrepreneurs as an essential key
to launching this kind of business in the future.
This report is the study of a contemporary topic in applied marketing under a
societal issue theme. The main objective is to identify the factors affecting customer
decisions (which include the reasons for selecting a detailing service) regarding
standalone car detailing services. The research main purposes are defined as follows:
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1. To identify decision-making factors (in reference to service, price, place,
promotion, people, process and physical evidence) that customers consider in selecting
standalone car detailing.
2. To identify customers’ criteria (which factors are involved with customers
selecting a first priority to last priority) for using standalone car detailing.
3. To identify factors influencing customers (which are promotion, advertising,
review, recommendation and words of mouth) to use standalone car detailing.
4. To study customer behavior in terms of usage (which includes usage rate,
service types, reasons for use, satisfaction and so forth) and demographic factors
(gender, age, marital status, occupation, income, etc.) that influence selection of
standalone car detailing.
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Problem/Need Recognition
Purchase Decision
Post-Purchase Behavior
CHAPTER 2
REVIEW OF LITERATURE
The Consumer Decision Model (The Engel, Kollat, Blackwell Model)
Depending on the conditions in their lives, consumers are continuously
developing in their purchasing behavior. The method that consumers use when making
purchases defines their consumer behavior. Several factors affecting their decisions and
usage are included in this definition. Consumers typically go through a decision-making
procedure when purchasing goods and services, which comprises five steps.
Understanding these steps is essential for marketers to effectively influence consumers
toward their products and promote sales. (Engel, Kollat and Blackwell, 1995).
Because the purpose of this research is to identify the factors affecting customer
decisions regarding standalone car detailing, a basic model of complex decision making
by Engel, Blackwell and Kollat is used as a framework for this study.
A model of the consumer-buying decision procedure was created by Engel,
Kollat and Blackwell in 1968. Problem/Need recognition, information search,
evaluation of alternatives to meet this need, purchase decision and post-purchase
behavior were the five steps included in this model and can be an effective guide for
marketers in understanding consumers to connect to them more successfully.
Depending on the product, their buying phase and their financial situation, consumers
move through the decision process in different ways. (Engel, Kollat and Blackwell,
1995).
Developed model of consumer buying decision process.
Figure 1.1 Developed conceptual model from consumer buying decision process
model of Engel, Kollat and Blackwell in 1968.
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A conceptual model of service quality and its implications for future research (A.
Parasuraman, Valarie A. Zeithaml, & Leonard L. Berry).
Service Quality
Due to the complexities of both defining and measuring service quality,
substantial attention has been stimulated in research literature on the concept. Little
agreement has materialized on either front (Wisniewski, 2001). Service quality carries
a variety of "definitions" regarding its true meaning. The degree to which a service
addresses a customer’s needs or expectations is one definition generally accepted
(Lewis and Mitchell, 1990; Dotchin and Oakland, 1994a; Asubonteng et al., 1996;
Wisniewski and Donnelly, 1996). Therefore, service quality can be characterized as the
discrepancy involving customers’ expectation of service and perceived service.
Perceived quality is inadequate and customer disappointment transpires when
expectations outweigh performance (Parasuraman et al., 1985; Lewis and Mitchell,
1990).
The most prevalent methodology for determining service quality is the
SERVQUAL approach (Parasuraman et al., 1985).
Figure 1.2 Model of service quality gaps (Parasuraman et al., 1985; Curry, 1999; Luk
and Layton, 2002)
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Model of Service Quality Gaps (Parasuraman et al., 1985; Curry, 1999; Luk and
Layton, 2002)
Seven key gaps exist in the concept of service quality, which are shown in
Figure 2. The representation is an augmentation to Parasuraman et al. (1985). Three
important gaps include Gap 1, Gap 5 and Gap 6, which are linked with peripheral
customers because they have a direct connection to them, based on the explanation (ASI
Quality Systems, 1992; Curry, 1999; Luk and Layton, 2002).
Gap1- Customers’ expectations versus management perceptions: insufficient
upward interaction and excessive layers of management as the result of a lack
of marketing research direction (Parasuraman et al., 1985; Curry, 1999; Luk and
Layton, 2002).
Gap2- Management perceptions versus service specifications: assessment of
unfeasibility, deficient task consistency and an absence of goal setting as the
result of insufficient dedication to service quality (Parasuraman et al., 1985;
Curry, 1999; Luk and Layton, 2002).
Gap3: Service specifications versus service delivery: inferior employee and
technology-job fit, unsuitable supervisory management systems, lack of
perceived control and lack of teamwork as the result of role uncertainty and
inconsistency (Parasuraman et al., 1985; Curry, 1999; Luk and Layton, 2002).
Gap4- Service delivery versus external communication: lack of correlation
between service and interaction as the result of deficient horizontal
communications and the tendency to make unreasonable promises
(Parasuraman et al., 1985; Curry, 1999; Luk and Layton, 2002).
Gap5- The discrepancy between customer expectations and their perceptions of
the service delivered: lack of correlation between the influences exercised by
the customer and the underperformance (gaps) of the service supplier. In this
case, the degree of personal needs, word of mouth recommendations and
previous service experiences influence customers’ point of view (Parasuraman
et al., 1985; Curry, 1999; Luk and Layton, 2002).
Gap6- The discrepancy between customer expectations and employees’
perceptions: lack of comprehension about customer expectations by front-line
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service providers results in differences (Parasuraman et al., 1985; Curry, 1999;
Luk and Layton, 2002).
Gap7- The discrepancy between employee’s perceptions and management
perceptions: lack of comprehension about customer expectations between
managers and service providers creates differences (Parasuraman et al., 1985;
Curry, 1999; Luk and Layton, 2002).
Angie's list
Guide to car washes (Angie's list, 2014)
Recommendations for car washing are provided online from Angie’s list, a US-
based website including crowd-sourcing evaluations of local businesses. Users can
check information from “Angie's list guide to car washes – topic car wash basics to
follow”.
Car wash basic
One of the easiest means of preserving a car’s exterior and maintain its pleasant
appearance is to have it washed and waxed on a consistent basis. Frequent car washes
assist in diminishing the typical wear and tear that every vehicle’s exterior experiences,
as well as providing source of pride for owner. Eliminating other surrounding
contaminants, including road salt, sap, tar and bugs in a suitable way also works toward
making a vehicle’s paint and clear coat endure longer (Angie's list, 2014).
The question of how often to wash a vehicle is asked by many owners. Initially,
personal preference and the vehicle owned is the primary consideration. For example,
a vehicle owner with a brand new luxury vehicle will likely wash it at least once a week
to maintain its bright and shiny “new” appearance. Conversely, a vehicle owner driving
an old and damaged-looking pick-up truck will likely never wash it (Angie's list, 2014).
Driving conditions - The dust kicked up and encrusted onto vehicle’s paint for
those living in rural areas with gravel, dirt roads or driveways might be a good
reason to wash cars more often (Angie's list, 2014).
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Season - Corrosive harm to the vehicle’s underbody and paint can be done by
the grunge and dirt from road salt in the winter or rainy season. A similar effect
is possible in the summer from bugs hitting the exterior (Angie's list, 2014).
Climate – Frequent washing of vehicles in needed for owners living in locations
with frequent rain. A vehicle’s luster can be damaged by salt, mud, rain and
flood, while environmental moisture also draws increased contaminants to the
vehicle. Bird droppings, bugs and tree sap are contaminants that contain
increased acidity in higher temperatures (Angie's list, 2014).
Geography - Higher levels of dirt and salt in the air are an increased threat for
people living in coastal areas. Chemical particles damaging to a vehicle’s paint
is a risk for those living in industrial areas. Weekly vehicle washing is the
standard suggestion for those residing in these areas (Angie's list, 2014).
Parking location – Vehicle owners lacking the convenience of covered parking
or a garage to store their vehicle at night should at least avoid parking under
trees or in other areas prone to contaminants dropping from above, such as bird
droppings, as well as consider washing their cars more often (Angie's list, 2014).
Commute distance and conditions – Long distance driving on the highway
entails exposing a car’s exterior to increased road grime and bug strikes. This is
especially true for daily commuters when compared to those making shorter,
non-highway commutes, requiring increased frequency for the washing of
vehicles (Angie's list, 2014).
In order to keep dirt and grime from accumulating on the exterior, it would be
advantageous to have the vehicle cleaned every two to three weeks at the least. Drivers
may want to wash their vehicles even more frequently if they face any of the driving