The Effect of Service Quality and Custom

The Effect of Service Quality and Customer
Value on Customer Satisfaction in the

Automobile Industry: A Case of Volkswagen
Malaysia.
By
G.M SadmanSakib
RESEARCH PROJECT SUBMITTED IN

FULFILMENT OF THE REQUIREMENT FOR
THE DEGREE OF BSc (Hons) in Business Studies
In the Sunway University Business School

Malaysia
March 2013
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Acknowledgement
A sincere appreciation to my lecturer and supervisor, Dr.Tan Teck Hong, for his wonderful
guidance, endless support, professional direction and his constant faith making me feel that I can
achieve any goal if I work hard.His guidance and support has motivated me to accomplish the
paper just the way I wanted it to be.
Very special thanks to my friends and for the people who has supported me all the way, to all my
helpfulrespondents for their amiable assistance and support throughout the data collection
process. I am also very grateful to my seniors, my friends and family for giving me a great
support and encouragement.
Lastly I thank you all for your helpful behaviour and positive attitude towards me, and making
me believe that I can finish this thesis. Without your cooperation this would have not been
possible. Once again, thank you very much.
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Abstract
The objective of this study is to look into the customer satisfaction of Volkswagen Malaysia and
their knowledge about Volkswagen Malaysia. As an automobile company Volkswagen Malaysia
must know how theircustomersare satisfied, or how they can be satisfied to a higher level,
making them less vulnerable in losing their customers. Therefore, this study intends to identify
the influences of two determinants. These determinants in the study consist of service quality
which is break down into 5 parts which are tangibility, reliability, responsiveness, assurance and
empathy. The second determinant is the customer value which is also break down into three parts
which are product value, personal value and image value. This study also involves the theory of
Oliver (1981) who suggested the expectancy –disconfirmation. Expectancy- disconfirmation
theory states that those customers from their satisfaction targetproduct or services as a result of
direct comparisons between their expectation and perception. Furthermore, 200 questionnaires
were distributed around Sunway University and Sunway pyramid mall in order to collect wide
range of sample. For the data analysis the Statistical Package for Social Science (SPSS) was used
to get the significant relationship with customer satisfaction and service quality and customer
value. The test shows that there is a significant relationship between customer satisfaction and
service quality and customer value. There is a positive and significant relationship with customer
satisfaction and tangibility. Therefore further researches aresuggested in the recommendation
section. This research may contribute to the customer satisfaction of Volkswagen Malaysia
through service quality and customer value.
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Table of Contents
Acknowledgement ........................................................................................................................................ 2
Abstract ......................................................................................................................................................... 3
Chapter 1: Introduction ................................................................................................................................. 7
1.1Introduction .......................................................................................................................................... 8
1.2Background of the study ...................................................................................................................... 8
1.2.1The development of automobiles in Malaysia .............................................................................. 8
1.2.2The development of Volkswagen Group Malaysia ....................................................................... 9
1.3 Identification of Research Gap ......................................................................................................... 10
1.4Research Purpose, Questions and Objective of the study .................................................................. 11
1.4.1Research Purpose ........................................................................................................................ 11
1.4.2Research Question....................................................................................................................... 11
1.4.3Research Objectives .................................................................................................................... 11
1.5 Scope of study ................................................................................................................................... 12
1.6 Contribution of study ........................................................................................................................ 12
Chapter 2: Literature Review ...................................................................................................................... 13
2.1 Introduction ....................................................................................................................................... 14
2.2 Dependant Variable: Customer Satisfaction ..................................................................................... 14
2.2 Independent Variable: Service Quality ............................................................................................. 16
2.2.1Tangibility ................................................................................................................................... 17
2.2.2 Reliability ................................................................................................................................... 17
2.2.3 Responsiveness .......................................................................................................................... 17
2.2.4Assurance .................................................................................................................................... 17
2.2.5Empathy ...................................................................................................................................... 18
2.3Customer Value ................................................................................................................................. 18
2.3.1Product Value.............................................................................................................................. 19
2.3.2 Personal Value ........................................................................................................................... 19
2.3.3Image value ................................................................................................................................. 19
2.4 Research Hypothesis ......................................................................................................................... 20
Chapter 3: Methodology ............................................................................................................................. 21
3.1Introduction ........................................................................................................................................ 22
3.2Research Methodology ...................................................................................................................... 22
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3.3Framework (Relationship between the Independent and Dependent Variables) ............................... 23
3.4Population sample .............................................................................................................................. 23
3.5Research Design................................................................................................................................. 24
3.6Data collection Method ...................................................................................................................... 25
3.7Procedure ........................................................................................................................................... 25
3.8Instrumentation .................................................................................................................................. 26
3.9 Data Analysis .................................................................................................................................... 26
3.10Instrumental Design ......................................................................................................................... 28
Chapter4: Findings ...................................................................................................................................... 29
4.1Introduction ........................................................................................................................................ 30
4.2Descriptive statistics .......................................................................................................................... 30
4.3Reliability Analysis ............................................................................................................................ 31
4.4Factor analysis ................................................................................................................................... 32
4.4.1Purpose........................................................................................................................................ 32
4.4.2Result .......................................................................................................................................... 32
4.4.3Conclusion .................................................................................................................................. 33
4.5Multiple Regression Analysis ............................................................................................................ 34
4.5.1Purpose........................................................................................................................................ 34
4.5.2Hypothesis result ......................................................................................................................... 36
4.5.3Conclusion .................................................................................................................................. 37
Chapter5: Interpretation and Analysis of Findings ..................................................................................... 38
5.1Introdution.......................................................................................................................................... 39
5.2 Interpretation of Service quality ....................................................................................................... 39
5.2.1 Tangibility .................................................................................................................................. 39
5.2.2 Reliability ................................................................................................................................... 40
5.2.3 Responsiveness .......................................................................................................................... 40
5.2.4 Assurance ................................................................................................................................... 41
5.2.5 Empathy ..................................................................................................................................... 42
5.3 Interpretation of Customer value ...................................................................................................... 43
5.3.1 Product value ............................................................................................................................. 43
5.3.2 Personal Value ........................................................................................................................... 43
5.3.3 Image Value ............................................................................................................................... 44
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Chapter6: Conclusion, Limitation and Recommendation ........................................................................... 45
6.1Introduction ........................................................................................................................................ 46
6.2Conclusion ......................................................................................................................................... 46
6.3 Limitation.......................................................................................................................................... 48
6.4Recommendation ............................................................................................................................... 48
Chapter7: Critical Reflection ...................................................................................................................... 50
References ................................................................................................................................................... 53
Appendix 1: Questionnaire ......................................................................................................................... 60
Appendix 2: Descriptive Statistics
Appendix 3: Factor analysis
Appendix 4: Regression Analysis
Appendix 5: Reliability Analysis
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Chapter 1: Introduction
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1.1Introduction
This chapter presents the overview of the study in a brief manner involving the background of
the study, research problem, and research questions identifications, objective of the study, scope
of the study and the contribution of knowledge.
1.2Background of the study
Understanding what buyers value within a given offering, creating value for them, and then
managing it over time have long been recognized as essential elements of every market firm’s
core business strategy (Atahk, 2009). Companies are searching for newer and better ways to
create value and differentiate their product in order to attract more customers to make more
profit. Many firms have been interested in the customer value analysis which involves a
structural analyse of the factors of perceived value. Understanding what buyer’s value is a key
and essential task for all the companies as this will help them to generate more profit in the
future (Porter, 1998)
Recently, most companies in the market shows a growing interest in research on the service
quality and customer satisfaction. A number of studies have attempted to apply related theories
to conduct such a research in order to help the booming industries which relates to the higher
consumer consumption level. The rapid growth of economy and the high purchasing power of
the customers have made Malaysia one of the largest passenger car markets in Asia. At the same
time, the establishment of national car project, such as the Proton and Perudua, has transformed
Malaysia from mere motor car assembler into one of the biggest car manufacturer. Furthermore,
the industry has boosted the development engineering and supporting industries are also
emerging slowly (MIDA, 2010).
1.2.1The development of automobiles in Malaysia
Like Indonesia and Thailand, the automotive industry in Malaysia started around the 1960s. In
the past, majority of the cars used on Malaysian roads were imported in the CBU (Completely
built-up units) form. In 1963 through the recommendations of Colombo Plan experts, the
Government of Malaysia began to encourage the establishment of the automotive industry. The
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policy of encouraging assembly for automobiles and manufacture of component parts was
announced around May 1964.
In order to further develop the local automotive industry and to encourage vehicles to be
assembled locally, the government adopted several policies. The policies include requiring a
certain percentage of a vehicle to have parts and components that are manufactured locally,
imposing import taxes and putting a high tariff on the CBU imports. Apart from the protective
tariffs that were announced in February 1966, all distributors and dealers were required to obtain
import licences that had to be renewed every six months. In 1967, the Government approvedsix
assembly plants. ByDecember that same year the production began.
Since the first national car, the proton saga, rolled out in the streets in 1985, Malaysia has
obtained much recognition regionally and internationally. This is because of its outstanding
achievement in the automobile industry. This national project was progressed even further with
the collaboration of the United Kingdom’s prominent automaker (Lotus International) in 1966
and the recent introduction of the new engine called the Campro. This engine was developed by
the first national automaker, named as Perusahaan automobile national Sdn. Bhd (Proton) in
collaboration with Lotus International. Proton has produced various car models like Porton Saga,
Wira, Waja, Perdana and most recently the Gen-2. Proton has also captured medium-car class
and made its presence felt even in certain developed countries.
1.2.2The development of Volkswagen Group Malaysia
The establishment of Volkswagen Group Malaysia is the fourth official distributor for
Volkswagen brand. Volkswagen first showed itself in Malaysia in 1950s when Champion motors
began importing the Beetle, the first showroom was situated in SungeiBesi, Kuala Lumpur
(Motor Trader, 2007). The local assembling started at the Assembly Services in SdnBhd Shah
Alam, Selangor in 1967. Besides Beetle, the first generation of the Golf was also assembled in
Malaysia.
The Volkswagen brand is no stranger to Malaysians, generations of Malaysian have grown up

with their own Volkswagen or seeing someone else’s around the corner of the street. Till this day
the hallmark of Volkswagen’s brand is lasting among the hearts of many Malaysians
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(Volkswagen, 2011). “Volkswagen group Malaysia” was officially launched in Malaysia the 16th
of February 2006, with the corporate headquarters situated in Wisma Volkswagen, Bangsar.
From here, it monitors marketing, sales and after sales caters and fulfils the needs of Malaysians
customers (Volkswagen, 2011).
In recent years Volkswagen cars in Malaysia has received immense popularity and lot of
Malaysian’s now prefer Volkswagen as their first choice. As reported by Volkswagen group
Malaysia, there was a record sale of performance for its Volkswagen Passenger cars which
totalled 2810 units in 2010 as compare to 885 units in 2009, the higher sales record since the
company was first operational in 2007 (Autoworld, 2011). Over the last four years of operation
in Malaysia Volkswagen sold nearly 5,400 cars to the customer and which continues to rise
dramatically.
1.3 Identification of Research Gap
There are various studies and research conducted in the area of automobile and most studies are
talking about particular sectors only. These studies are mostly on customer satisfaction, service
quality and loyalty based studies. For example a study carried on by Andreas et al. 2007 states
the influence of price fairness on customer satisfaction and empirical test in the context of
automobile purchase, mainly talks about the pricing of automobile which is fair for all customers
and who can buy them. Another study done by Nagaraja 2012, talks about the customer
satisfaction in automobile industry – an Indian online buyers perspective of car and
manufacturers website. The study talks about the customer satisfaction in order to purchase cars
from online and how customers aresatisfied with it.
However, no study has been done to assess the “The effect of service quality and customer value
on customer satisfaction in the automobile industry: A Case of Volkswagen Malaysia”.
Therefore, this study plans to examine how service quality and customer value is putting
animpact on the customer satisfaction of Volkswagen car users.
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1.4Research Purpose, Questions and Objective of the study
1.4.1Research Purpose
The aim of the research is to determine the customer satisfaction of Volkswagen Malaysia
through service quality and customer value. This could reveal the best practice to
enhancecustomer satisfaction of Volkswagen Malaysia by increasing the quality service and
customer value.
1.4.2Research Question
How do service quality and customer value affect customer satisfaction for Volkswagen
Malaysia?
1.4.3Research Objectives
To achieve the aim, the following research objectives are formulated:
1. To find out the current customer satisfaction of Volkswagen Malaysia Customer,

2. To examine the perspectives of customers towards the service quality this is broken down
into five segments consisting of, tangibility, reliability, responsiveness, assurance and
empathy.
3. To examine the perspectives of customer satisfaction towards the customer value which
is break down into another three segments which are product value, personal value and
image value.
4. To recommend the appropriate customer satisfaction strategy for Volkswagen Malaysia
to satisfy their customers to a next level.
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1.5 Scope of study
The scope of this study has been focusing on the potential customer satisfaction of Volkswagen
Malaysia, particularly in Bandar Sunway, Subangjaya and Kuala Lumpur area. Based on the
precious studies, the researcher has decided to conduct this study based on two major categories,
namely service quality and customer value.
1.6 Contribution of study
This research will be beneficial for Volkswagen Malaysia in order to improve their customer
satisfaction and gaining trust of more new customers in the market, which will eventually help
them to generate more profit in the long run. Furthermore the findings of service quality will
help Volkswagen Malaysia to understand how their customer’s value, service quality and where
or how they can improve them. Moreover, the findings on customer value will also show a result
on how the customers are appreciating Volkswagen Malaysia currently and what more do the
customers want from them.
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Chapter 2: Literature Review
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2.1 Introduction
Considering the new era of marketing development and showing concern’s towards the
automobile industry, this research focuses on the satisfaction of the customers, service quality
and how the customers value their product. This section of the study consists of a detailed
knowledge about the dependent variable and the independent variables. Starting with the
customer satisfaction which explains why customer satisfaction is a much needed resource for
any sort of industry. As it is statedin many studies, that the importance of customer satisfaction
are the key ingredients to generate more revenue for the companies (Angelova, Zekiri, 2011).
Following with the customer satisfaction we have service quality, which is another major aspect
for most service provided industries. The service quality plays a vital role in the minds of
customer and can have devastating effect on any firm which fails to provide proper service
quality. As stated by ParasuramanZeithml, and Berry (1998, 1990) the projected service model
aredivided into five section such as the tangibility, reliability, responsiveness, assurance and
empathy. All these factors will be further examined laterin the discussion. Lastly comes the
customer value which talks about how customers evaluate a certain product. It is indeed very
important for customers to value a product; the determinants of customer value are product
value, personal value and image value.
2.2 Dependant Variable: Customer Satisfaction
Customer Satisfaction means that a customer or the user of service is well contended with the
performance of the organization (Honson and Fornell1991). It can also be stated as the overall
evaluation of a customer whether positive or negative for the services (Woodruff 1997).Impact
of satisfaction on quality service and customer value is researched in broad terms. Many findings
show that if satisfaction is there, than customers are more loyal to the organization.
Customer satisfaction is also one of the most important issue concerning business organizations
and firms. Customer satisfaction measurement may be considered as one of the most reliable
feedback which provides clients preferences and experiences in an affective, direct and objective
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manner. Thus customer satisfaction can be considered as the base line of standard performance
and possible standard of excellence for any organization or business (Gerson, 1993).
Moreover, customer satisfaction is a collective and great outcome of perception, evaluation, and
psychological reaction towards the consumption expectation with a product and/or services (Yi,
1990). Furthermore, “satisfaction is a feeling of pleasure or disappointment resulting from
comparing a product perceived performance or outcome in relation to his or her expectations”.
Furthermore, Oliver (1981) introduced the expectancy-disconfirmation model for studies of

customer satisfaction in the retail market and service industry. Expectancy-disconfirmation
theory points out those customers from their satisfaction target product or service as a result of
direct comparisons between their expectations and perceptions. Customers are often asked to
provide their perceptions directly using a “worse than/better than expected” scale. The resulting
perceptions are conceptualized as a psychological construct called “subjective disconfirmation”.
As a result through this model the customer satisfaction is a direct function of subjective
disconfirmation, which is the size and direction of disconfirmation determine, in part the level of
satisfaction.
Furthermore, in the discussion customer satisfaction is now becoming a corporate level strategy
(Rust and Zahorik, 1993). Various researchers and authors have discussed the importance of
customer satisfaction. In the works of Drucker (1973) customer satisfaction is the base for
business success, which eventually shows how important customer satisfaction is for every
organization. In addition, customer satisfaction is the key link for the relationship between
marketing and management (Claycomb and Marting, 2002), and one of the major source of
competitive advantage for organizations (Anderson et al., 1994).Overall customer satisfaction
translates to more profits for the companies and thus market share increase.
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2.2 Independent Variable: Service Quality
Quality is the overall experience which a customer perceives through interacting a product and
services. Ahmed et al (2010) has captured the definition of quality as taken as a whole
judgement. “Service quality has been demonstrated as a form of attitude, related but no
equivalent to satisfaction that results from the comparison of expectations with performance”
(Ahmed et al 2010). Moreover, quality had a long term impact on the satisfaction of customers.
Studies show that creating value and offering quality service to customers creates loyal
customers. Service quality has also been defined by Agyapong (2011) as customer perception of
how well a service meets or exceeds their expectations. Furthermore, service quality is
commonly noted as critical prerequisite and determinants of competitiveness for creating and
sustaining customer relationship. In Addition a more observed look on the service quality can
make an organisation different from other organizations and gain a long-run competitive
advantage (Boshoff and Gray, 2004). In particular consumers prefer service quality when the
price and other cost elements are held stagnant (Turban, 2002). The two major way of customer
satisfaction that customers get from quality service are offered as technical quality and functional
quality (Gronroos, 1984). However customers do not have much information about the technical
aspects of service; therefore, functional quality becomes the major factor from which perception
of service quality is determined by the customers. Service quality can be measured by customer
perception, customer expectations and customer attitudes (Sachdev and Verma 2004). Studies
indicate the evaluation of service quality leads to greater customer satisfaction.
Parasuraman, Zeithml, and Berry (1998, 1990) projected a service quality model that identified
perceived service quality into five dimensions: tangibility, reliability, responsiveness, assurance
and empathy.
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2.2.1Tangibility
Tangibilityinvolves the appearance of physical facilities, including the equipment,

personnel and communication materials. It also includes the physical attributes, such as
visually appealing facilities, how employees are dressed and how they engage with their
customers. Furthermore, tangibility also includes the service provided with visually
appealing materials such as gift vouchers, key rings and diaries.
2.2.2 Reliability
Reliability involves the appearance of physical facilities which includes the ability to
perform the promised services dependably and accurately. This broadly means that,
services which are promised to the customer being fulfilled or not. Whether the
customers can depend on the organization for the services they provide.
2.2.3 Responsiveness
Responsiveness includes the willingness to help the customer when the customer needs
them and when the customers are at their most vulnerable situation. It also includes
providing strong and prompt services to the customers, which will make the customers
feel satisfied. Such responsiveness can include by letting the customers know about after
sales services. Showing readiness and respond to customer’s requests.
2.2.4Assurance
Assurance involves the knowledge and courtesy of employees and their ability to convey
the trust and confidence towards the organization or company. Such assurance involves
the knowledge of the employees, who constantly interact with their customers. Making
customers feel safe while they are making financial transaction and lastly being polite
and nice to the customers.
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2.2.5Empathy
Empathy involves the provision of caring, individualism attention of customers and much
more. This empathy includes access, communication and understanding customer. This
also includes of employees understanding the needs of the customers, the business hour
of the company is convenient. And lastly making the employees feel that they are given
the best quality for which they are paying for.
Today most customers prefer good service to lower prices. Thinking about all the situations
where customers are prepared to pay a little more to get a better or more efficient service.
Companies and organizations that provide these added service benefits are likely to be the
winners. Customers are requiring and demanding better services and the goal of all automobile
companies is to make customer feel special by improving service quality which will lead to
greater customer loyalty and will have a positive impact on customer satisfaction.
2.3Customer Value
Customer value can be broadly defined as “the customer’s overall assessment of the utility of a
product based on the perception of what is received and what is given”. A number of researchers
have investigated the role of customer value in consumption contexts. For example Zeinthaml
(1998) provided the evidence supporting an influential role of value in consumers purchase
decision making. According to the mean ends model provided by Zeithaml (1988), perceived
value is a direct antecedent of a purchase decision and a direct consequence of perceived service
quality. However, Dodds et al (1991) conceptualized perceived value as tradeoffs between
perceived quality and perceived psychological as well as monetary sacrifice. Moreover, recently
Woodruff (1997) laid out a customer value hierarchy model in which customer value was viewed
as a hierarchically structured construct at levels of consumption goals, consequences and
attributes. Furthermore based on economic value and consumer behaviour theories, Jayanti and
Ghosh (1996) formulated perceived value as a direct consequence of perceived quality as well as
of price-based transaction and acquisition utilities.
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Furthermore, customer value is a fundamental basis for all marketing activity (Holbrook, 1994).
High customer value is a one primary motivation for customer patronage. In addition a study by
Sirdeshmukh, Singh and Sabol (2002) argues that customer value is a super ordinate goal and
customer loyalty is a subordinate goal. Further studies have concluded that customer-perceived
value has been found to be a major contributor to purchase intention (Chang and Wildt, 1994).
Furthermore, the discussion narrows down to the determinants of customer value which are as
follows;
2.3.1Product Value
The product value involves the performance and safety of the product and how much is
the product reliable. It is also an important factor for attracting customer and to fulfil their
need. Such issues for product value can be used to make the customer feel that they are
getting the best for what they are paying for. They believe that Volkswagen cars are
reliable and valuable to them which satisfy their need.
2.3.2 Personal Value
Personal value discusses about the personality perception of customers and how they
view the product that is in front of them. Critical issues of customer value can make the
customers believe that Volkswagen cars suit their personality. Do the customers of
Volkswagen feel that they are satisfied with the purchase they made, will the go for a
repurchase from Volkswagen again. Such value is a key issue for Volkswagen Malaysia
because if their customers are satisfied with each of the aspects discuss their customer
satisfaction can rise and loyalty of customers will eventually increase.
2.3.3Image value
Image value involves greater perception about the product and how the product is having
a good name in the market; consumers are fonder of good image product. As Volkswagen
Malaysia is already a well reputatedcompany they should really be careful in how the
customers are seeing their company and product. Image value consists of impressive and
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delightful designs, reputation of the company, recommendation of the company to others
and more. As a result to create and to maintain a good image will definitely have an
impact on the customer satisfaction of Volkswagen Malaysia.
Overall, it can be stated that customer value is in direct relation with customer satisfaction. Ifthe
customer value is increased, it will have a positive effect on customer satisfaction which will
eventually be beneficial for an organization.
2.4 Research Hypothesis
In order to study the factors of customer satisfaction on service quality and customer value, the
hypothesis were proposed as the following:
H1: there is a significant relationship between customer satisfaction and tangibility
H2: there is a significant relationship between the customer satisfaction and reliability
H3: there is a significant relationship between the customer satisfaction and responsiveness
H4: there is a significant relationship between the customer satisfaction and assurance
H5: there is significant relationship between the customer satisfaction and empathy
H6: there is a significant relationship between customer satisfaction and product value
H7: there is s significant relationship between customer satisfaction and personal value
H8: there is a significant relationship between customer satisfaction and image value
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Chapter 3: Methodology
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3.1Introduction
This chapter presents the discussion and procedures utilized in this study. The further discussion
will include the collection and analysis of data to achieve the suggested research objectives.
Moreover, the instrument design is also included in this chapter where it is based on the relevant
literature from previous studies and cases.
3.2Research Methodology
This study examines the dependent variable as customer satisfaction of Volkswagen Malaysia
through service quality and customer value as the independent variables. This would reveal the
best practice to increase customer satisfaction of Volkswagen Malaysia by increasing the quality
service and customer value.
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3.3Framework (Relationship between the Independent and Dependent Variables)
Independent Variable Dependent

Variable
Tangibility
Responsiveness
Reliability Service Quality
Empathy
Assurance
Customer Satisfaction
Product Value
Personal value Customer Value
Image Value
Figure 1: Adopted from Mosahab et al (2010) Service quality, customer satisfaction and
loyalty: A test of Meditation
3.4Population sample
The population sample for this study will be defined as all the drivers who are driving a
Volkswagen car, and those who have good knowledge about Volkswagen cars. As this is a
quantitative research, the best sampling method that can be chosen is the probability sampling.
The probability sampling has been used to distribute questionnaires so that everyone has an equal
chance of being a respondent. Therefore, this will avoid any sort of biasness. However, there are
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several other methods that can be followed based on the non-probability sampling. In case of this
study questionnaires will be used to collect the most important data that is the primary data. In
order to represent the population as a whole, a total of 200 copies of questionnaires will be
distributed to Malaysians and no Malaysian concentrated on the area of Sunway city.
Furthermore, convenient sampling method will be used in this study to obtain the required
sampling that is needed.
A total of 150 questionnaires will be distributed around Sunway city, especially around the car
parks and shopping mall. The rest of 50 questionnaires will be distributed around the university.
The purpose of distribution questionnaires via different channels and locations is aimed to
generate more diversity in sample data and minimizing sample error.
In addition, to obtain the required sample that represents the population as a whole, the most
convenient sampling method which is the random sampling method was used. This involves the
selection of most researchable respondents. Furthermore, the convenience sampling provides an
added advantage of being the most cost efficient and time convincing method. However, this
method may result in inaccuracy of the sample data that are collected and lack of intellectual
credibility. Despite of all the drawbacks, this method was chosen in the study due to its
overwhelming benefits and because of being the least costly method.
3.5Research Design
The intention of this research is to determine customer satisfaction of Volkswagen Malaysia

through service quality and customer value. Thus, this study will observe the factors that affect
customer satisfaction and their perception towards Volkswagen cars. Based on previous studies it
is declared that a questionnaire allows the respondent to make quick and fast decision and make
the coding of the data simpler and easier as compared to open-ended questions.
Furthermore, descriptive research method was also used in this study as it is one of the easiest
waysto accomplish and to receive all the data that is needed. The descriptive research approach
was used to examine the relevance of pre-determined hypothesis and generate result by
collecting information regarding present circumstances.
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The primary and secondary methods were also included in this study. The primary research was
conducted by using questionnaire surveys. It is one of the most widely and vastly used survey for
data collection techniques. This is because each responded is asked to respond to the same set of
questions and this provide and efficient way of collecting the responses in an easy and smooth
manner. In addition it is also used because it delivers more specific outcome than the secondary
study itself. In conjunctions, the secondary research was used because the topic had some
relation with precious studies that were performed by others. The methods of retrieving
secondary data were through journals, articles, magazines and other statistical data.
3.6Data collection Method
In order to remain on the study of customer satisfaction on Volkswagen Malaysia, the

questionnaires was developed based on the literature review to seek factors that affect customer
satisfaction of Volkswagen Malaysia. The questionnaires were designed using Likert scale (5) to
measure the factors. The Likert scale has been proven to be one of the most reliable ways of
structuring questionnaires.
3.7Procedure
1. Part 1 consists of question related to customer satisfaction

2. Part 2 consists of the question related to service quality which has five separate parts:
a. Tangibility
b. Reliability
c. Responsiveness
d. Assurance
e. Empathy
3. Part 3 consists of the questions related to customer value which also has three separate
parts:
a. Product value
b. Personal Value
c. Image value
4. Section 4 consists of questions regarding to demographic factors of the respondents.
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There were 200 questionnaires distributed to the public within Sunway city area to examine the
customer satisfaction towards Volkswagen Malaysia.
3.8Instrumentation
It is proposed that 20 questionnaires will be first distributed to run a pilot test to see whether the
questions are reliable or not. This pilot testing is also done to check whether the respondents are
clear about the questions or not. However, the variable that is not interrelated to the total will be
discarded. The sample questionnaires will be distributed to only 20 respondents among the
Sunway university students. The feedbacks and suggestion from the pilot test respondent helps
for alteration of the questionnaire in order to retrieve reliability result.
3.9 Data Analysis
The data will be analyzed based on the questionnaires that were collected by using the statistical
package for the social science (SPSS) version 18.0. It is used t o examine the raw data that were
collected and it helps to perform numerous tests to measure the proper relationship between the
dependant and independent variables. The SPSS software helps us to determine the (Factor
analysis, reliability analysis, multiple linear regressions, normality test and the descriptive
statistics). The results of the data were compiled into table to ease the understanding of the study.
The structural validity of the scale was properly examined by using the principle components
such as the factor analysis. This is used for data omission for more manageable and meaningful
number of summated scales. Furthermore, it also identifies a small number of factors that may be
used to determine the relationship among the sets of interrelated variables. Secondly, the
reliability test was used for data analysis to measure the consistency of the measurement that was
being made. The Cronbach alpha is interpreted as a correlation coefficient. The values range
from 0 to 1 from being the lowest to the highest.
As for the validity of the questions, factor analysis in the SPSS is used. In this case the validity
has been used to ease the task of measuring the level of correlation with the respective variables.
The factor analysis included the Kaiser Meyer Olkin measure of sample adequacy (KMO) which
helps to validate the questions.
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Finally, the conceptual framework of the entire study contains more than one independent
variable. As a result the multiple regressions were used in this study as it can be used to describe
the relationship between the independent and dependant variable easily. In addition to the
multiple regression models, the hypothesis can only be accepted if the p-value is less than 0.05.
Furthermore, the analysis also illustrates the correlation for the standardized coefficient which is
the Beta. Lastly, the normality test was also implied in this study as it determines the normality
of the data that were collected which then meets the objective judgement normality.
Page | 27
3.10Instrumental Design
Questions Author/Journal
Part 1 Customer Satisfaction  Gi-Du G.D.K, Jeffery J.J, (2004),

“Service Quality dimensions: and
examination of Gronroos’s service
quality model”, Managing Service
Quality, 14(4), 266-277
Part 2 Service Quality  Gi-Du G.D.K, Jeffery J.J, 2004,

Quality, 14(4), 266-277
 Gyan P., (2011), “ Service quality
supply chain: empirical evidence from
Indian automotive industry”, Supply
chain management, Supply chain
management, 16(5), 362- 378
Part 3 Customer Value  Gi-Du G.D.K, Jeffery J.J, (2004),

Quality, 14(4), 266-277
 Shun Y.L, Venkatesh V.S, Erramilli,
Bvsan B.M, (2004), “Customer Value,
Satisfaction, loyalty and switching
costs: an Illustration from a Business-
to-Business service context”, Journal of
the academy of Marketing science,
32(3), 293-311
Table 1: Instrumental Design
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Chapter4: Findings
Page | 29
4.1Introduction
This chapter presents the data analysis where data were collected through the questionnaire
survey. All the data collected were also analysed by using SPSS. The data were
investigatedthrough descriptive statistics, reliability analysis, factor analysis, correlations
analysis and multiple regression analysis in order to examine the level of reliability or
significance of each structured question.
4.2Descriptive statistics
Demographic Details Frequency Percentage (%)

Variables
Gender Male 126 63.0

Females 74 37.0
Nationality Malaysian 134 67.0

Non-Malaysian 62 31.0
Education Primary 2 1.0
High school 7 3.5
College Degree 160 80.0
Postgraduate 27 13.5
Age Below 18 8 4.0
19-29 139 69.5
30-39 39 19.5
40-49 12 6.0
Above 50 2 1.0
Table 2: Demographic Profile of Respondents
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The above table shows the respondents demographic profile. As shown in the above table, the
overall sample was collected which consists of 63.0% male and 37.0% of female. In addition the
nationality was divided into two sections which are Malaysian and Non-Malaysians, in this case
67% of the population was Malaysian and the other 37% were non-Malaysian. Then
comestheireducation level which was divided into four distinctive parts starting with primary,
high school, college degree and lastly post graduate. The data provides the percentage of the
education attainment as follows; primary 1.0%, high school is 3.5%, college degree is 160% and
lastly post graduate comes with a 27%. This gives us a general idea that most respondents had a
college degree. Last but not the least comes the age group of the respondents which was also
divided in five sections starting from below 18, 19-29, 30-39, 40-49 and above 50. The data
clearly states that maximum numbers of respondents belong from the age group of 19-29 with a
69.5%. Then followed by that comes the age group from 30-39 with a percentage of 19.5%. The
age group of below 18 is just 4.0%, 40-49 is 6.0% and last above 50 is 1.0%.
4.3Reliability Analysis
Variables Number of items Cronbach’s Alpha

Customer Satisfaction 7 0.882
Service quality
a. Tangibility 3 0.782
b. Reliability 3 0.759
c. Responsiveness 3 0.747
d. Assurance 3 0.823
e. Empathy 3 0.741
Image value
a. Product Value 5 0.860
b. Personal Value 5 0.881
c. Image Value 4 0.825
Table3: Reliability Analysis
A reliability analysis was conducted to find out the reliability of variables used in the analysis.
According to Morgan et al (2004), Cronbach’s Alpha above 0.7 will signify the data is reliable,
while below it will be contrariwise. In addition, Cronbach’s Alpha is a reliability coefficient that
signifies how well the items in a set are positively associated to one another. According toSekran
(2003), the closer the Cronbach’s Alpha is to 1, the higher the internal consistence reliability.
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Table 3 displays the reliability of the 5 determinants of service quality with the Cronbach’s
Alpha as follows; tangibility 0.782, reliability 0.759, responsiveness 0.747, assurance 0.823 and
empathy 0.741. The other 3 determinants of customer value have the following
Cronbach’sAlphal; product value 0.860, personal value 0.881 and image value 0.825. All the
variables in the study were resulted in Cronbach’s Alpha above 0.7, thus they are all reliable. As
all variables were reliable, scaled for the dependent and independent variables were formed by
averaging the scores of the multiple indicators of that variable.
4.4Factor analysis
4.4.1Purpose
To reduce the number of items of original variables and to find items whether they are tapping
into the same construct in the variables. Thus, the dependent variable, customer satisfaction
preferences and independent variables, in terms of service quality and customer value and
attributes of customer satisfaction will be examined.
4.4.2Result
Variables Number of Items Bartlett’s Test KMO

Customer Satisfaction 7 0.000* 0.879
Service Quality 15
a. Tangibility 3 0.000* 0.671
b. Reliability 3 0.000* 0.676
c. Responsiveness 3 0.000* 0.675
d. Assurance 3 0.000* 0.718
e. Empathy 3 0.000* 0.650
Image Value 14
a. Product value 5 0.000* 0.838
b. Personal Value 5 0.000* 0.819
c. Image Value 4 0.000* 0.723
Table 4: Factor analysis of dependent and independent variables
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4.4.3Conclusion
Based on the above table, the variable of customer satisfaction has a total number of seven. The
factor analysis of customer satisfaction also shown a significant result as depicts be the Bartlett’s
Test of Sphericity and the Kaiser-Meyer-Olkin measure of sampling adequacy is far greater than
0.6, which is 0.0874.
Moreover, the independent variable of service quality is reduced to 5 items: “tangibility”,

“reliability”, “responsiveness”, “assurance”, “empathy”, (see the appendix 1 of questionnaire for
the complete sentence). The factor analyses for each of these attributes are as follows with
KMO’s: tangibility 0.671, reliability 0.0676, responsiveness 0.675, assurance 0.718, and
empathy 0.650. all the factors show a significant result as depicts by the Bartlett’s test of
Sphericity and the Kayser-meyer-olkin measure of sampling adequacy is far greater than 0.6.
Lastly, the independent variable of image value is reduced to 3 items, “product value”, “personal
value”, “image value”, (see the appendix 1 of questionnaire for the complete sentence. The factor
analyses for each of their attributes are as follows with KMO’s: product value 0.838, personal
value 0.819, and image value 0.723. all the factors show a significant result depicts by eh
Bartlett’s test of Sphericity and the Kayser-meyer-olkim measure of sampling adequacy is far
greater than 0.6.
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4.5Multiple Regression Analysis
4.5.1Purpose
This test is run to find out which independent variable (service quality, customer value) is best
predictor of the dependent variable. Here both service quality and customer value is divided into
several sections. Service quality is divided into five sections which are tangibility,
responsiveness, reliability, empathy and assurance. On the other hand customer value is broken
down to three parts which are product value personal value and image value.
ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression 32.000 8 4.000 24.189 .000a

Residual 29.600 179 .165
Total 61.600 187
a. Predictors: (Constant), Average of image value , Average for Responsiveness , Average of
Tangibility , Average of Empathy, Average for Assurance , Average of personal value , Average
of Reliability, Average of Product value
b. Dependent Variable: Average of CS
Table 5: ANOVA
The ANOVA table above has analyzed that the F-vale is 24.189 and the p-value is less than 0.05
which indicate at least one of the variables of this study is significant.
Model Summaryb
Std. Error of the
Model R R Square Adjusted R Square Estimate
1 .721a .519 .498 .40665
a. Predictors: (Constant), Average of image value , Average for Responsiveness , Average of
Tangibility , Average of Empathy, Average for Assurance , Average of personal value , Average of
Reliability, Average of Product value
b. Dependent Variable: Average of CS
Table 6: Model Summary
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Based on the model summary result shown above, the R square (0.519) indicates that 51.9% of
the observe variability in customer satisfaction is explained by the independent variables. In
addition, the R value shown in the model summary is 0.721 which signified that the correlation
efficient between the observed value of the dependent variable (customer satisfaction) and the
predicted value based the regression model. In this scenario, it is observed that the value of 0.721
indicated that the linear regression model predicts moderately.
Coefficientsa
Standardize
Unstandardized d Collinearity
Coefficients Coefficients Statistics
Toleranc
Model B Std. Error Beta t Sig. e VIF
1 (Constant) .509 .237 2.149 .033
Tangibility .357 .051 .433 7.017 .000 .705 1.419
Reliability .107 .065 .115 1.656 .099 .552 1.811
Responsiveness .020 .057 .021 .353 .725 .758 1.319
Assurance .052 .064 .056 .817 .415 .574 1.743
Empathy .109 .063 .113 1.747 .082 .640 1.562
Product value .053 .066 .061 .799 .425 .459 2.177
Personal value .048 .057 .063 .843 .401 .474 2.109
Image value .088 .060 .104 1.472 .143 .543 1.841
a. Dependent Variable: Average of CS
Table 7: Coefficients
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4.5.2Hypothesis result
 H1: there is a significant relationship between customer satisfaction and tangibility
As shown in the table of confidents summary, the t-statistics for the tangibility is 7.017 (p-value
<0.05) and beta is 0.433. Therefore, there is sufficient evidence to conclude that the tangibility
does influence customer satisfaction of Volkswagen cars. Hence, H1 is accepted.
 H2: there is a significant relationship between the customer satisfaction and reliability.
As shown in the table of coefficients summary, the t-statistics for the reliability is 1.656 (p-value
<0.05) and beta is 0.115. Therefore, there is sufficient evidence to conclude that the reliability
does not influence customer satisfaction of Volkswagen cars. Hence, H2 is rejected.
 H3: there is a significant relationship between the customer satisfaction and

responsiveness.
As shown in the table of coefficients summary, the t-statistics for the responsiveness is 0.353(p-
value >0.05) and beta is 0.021. Therefore, there is sufficient evident to conclude that the
responsiveness does not customer satisfaction of Volkswagen cars. Hence, H3 is rejected.
 H4: there is a significant relationship between the customer satisfaction and assurance.
As shown in the table of coefficients summary, the t-statistics for the assurance is 0.817 (p-
value>0.05) and the beta is 0.56. Therefore, there is sufficient evidence to conclude that the
assurance does not influence customer satisfaction of Volkswagen cars. Hence, H4 is rejected.
 H5: there is significant relationship between the customer satisfaction and empathy.
As shown in the table of coefficients summary, the t-statistics for the empathy is 1.747 (p-
empathy does not influence customer satisfaction of Volkswagen cars. Hence, H5 is rejected.
 H6: there is a significant relationship between customer satisfaction and product value.
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As shown in the table of coefficients summary, the t-statistics for the product value is 0.799 (p-
product value does not influence customer satisfaction of Volkswagen cars. Hence, H6 is
rejected.
 H7: there is s significant relationship between customer satisfaction and personal value.
As shown in the table of coefficients summary, the t-statistics for the personal values is 0.843 (p-
personal value does not influence customer satisfaction of Volkswagen cars. Hence, H7 is
rejected.
 H8: there is a significant relationship between customer satisfaction and image value.
As shown in the table of coefficients summary, the t-statistics for the image value is 1.472 (p-
image value does not influence customer satisfaction of Volkswagen cars. Hence, H8 is rejected.
4.5.3Conclusion
Overall, tangibility of service quality has a higher explanatory power compared to the other
independent variables because it is the only value that is significant and has the highest beta
(0.433) compared to other variables. In addition, the table shows that except for tangibility, the
other variables such as reliability, responsiveness, assurance, empathy, product value, personal
value and image value does not have a positive relationship with customer satisfaction of
Volkswagen.
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Chapter5: Interpretation and Analysis of Findings
Page | 38
5.1Introdution
In this chapter, the interpretation and analysis of findings were discussed based on the findings in
chapter 4 which is the multiple linear regressions. It is an interpretation and analysis of findings
in terms of the correlation between the independent variables and the dependent variable, factors
that influence customer satisfaction and the relationship between service quality and customer
value.
5.2 Interpretation of Service quality
As for the interpretation of service quality on customer satisfaction, the variables are divided into
5 sections which are tangibility, reliability, responsiveness, assurance and empathy. Therefore,
the interpretations for each of the variables are as follows:
5.2.1 Tangibility
According to the findings in chapter 4, the tangibility was significant and positively relationship
to the customer satisfaction of Volkswagen cars. This result is clearly proven by the standardized
coefficient, beta, shown in the table 7 coefficient summary model where Beta for tangibility is
0.433. This proves that the tangibility of Volkswagen cars affects the customer satisfaction by
43.3%. With the given evidence of tangibility, it is an important factor which affects the
Malaysian consumer’s satisfaction towards Volkswagen cars. The hypothesis for tangibility (H1)
is accepted as the t-statistics for tangibility concern is 7.017 where p-value is less than 0.05
(0.000). Therefore, there is sufficient evidence to conclude that the tangibility does influence the
customer satisfaction of Volkswagen Malaysia. According to Prasiman et al (1990) tangibles are
about physical facilities, equipment, personnel and communication material. Thie dimension
includes physical facilities, equipment, personnel and communication material and id the
personnel appear neat. Gonroos (2007) mention that the service quality can be divided into two
parts functional quality and technical quality. As seen in the study done by Hussain and Carlsson
(2010) tangibility shows a positive result which means that the perceptions about the visually
appealing materials is exceeding the expectation. In this case of Volkswagen Malaysia,
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tangibility also shows a positive relation with customer satisfaction. This means that customer
satisfaction is dependent on tangibility of Volkswagen cars.
5.2.2 Reliability
Based on the table 7 from chapter 4, the reliability was not significant and was positive
relationship to the customer satisfaction of Volkswagen cars. The result is clearly proven by the
standardized coefficient, beta, shown in the table 7 coefficient summary model where Beta for
reliability is 0.115. This proves that the reliability of Volkswagen cars affects the customer
satisfaction by only 15.5%. With the given evidence of reliability, it is not an important factor
which affects the Volkswagen customer’s satisfaction. The hypothesis for reliability (H2) is
rejected as the t-statistics for reliability concern is 1.656 where the p-value is greater than 0.05
(0.099). Therefore, there is sufficient evidence to conclude that the reliability does not influence
the customer satisfaction of Volkswagen Malaysia. Reliability is connected to the consistence of
performance and dependability, (Gronroos, 1983). This dimensions includes keeping promises,
showing a sincere interest in solving problem, give the right service the first time. In other words
providing the service at the time the company promise to do so and trying to keep a error free
record. As seen in the study done by Hussain and Carlsson (2010) the customers do not think that
their overall expectations are fulfilled within this dimension. The results in the study shows that
the customers are not at all satisfied with the quality described in this dimension. In other words
reliability is no significant with customer satisfaction. In the case of Volkswagen Malaysia it can
also be seen that reliability is not significant with customer satisfaction there for the hypothesis is
rejected.
5.2.3 Responsiveness
Moreover, from the table 7, it can be seen that the responsiveness was not significant and was
positivelyrealted to customer satisfaction of Volkswagen cars. The result is clearly proven by the
standardized coefficient, beta, shown in the table 7 coefficient summary model where Beta for
responsiveness is 0.021. This proves that the responsiveness of Volkswagen cars affect the
customer satisfaction by 2.1%. With the given evidence of responsiveness, it is not an important
factor which affects the Volkswagen customer satisfaction. The hypothesis for responsiveness
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(H3) is rejected as the t-statistics for responsiveness concern is 0.353 where the p-value is greater
than 0.05 (0.725). Therefore, there is sufficient evidence to conclude that the responsiveness
does not influence the customer satisfaction of Volkswagen Malaysia. According to Gronroos
(1983) this factor concerns to what extent the employees are prepared to provide the promised
services. This involves factors such as mailing a transaction slip immediately, calling a customer
back in shot time giving prompt services. However, the results from the study of Hussain and
Carlsson (2010) shows that the customers do not this that their overall expectations are fulfilled
whith this dimension. As a result this shows that the customers are not at all satisfied with the
quality described in this dimension. In other words responsiveness did not lead to a good
customer satisfaction. In the case of Volkswagen Malaysia the same results are seen as
responsiveness and customer satisfaction are not significant.
5.2.4 Assurance
From the provided table 7 it can be concluded that assurance was not significant and was
positivelyrelated to customer satisfaction of Volkswagen cars. The result clearly proved by the
standardized coefficient, beta shown in table 7 coefficient summary model where beta for
assurance is 0.056. This proves that the assurance of Volkswagen cars affect the customer
satisfaction by only 5.6%. With the given evidence of assurance, it is not an important factor
which affects the Volkswagen customer satisfaction. The hypothesis for assurance (H4) is thus
rejects as the t-statistics for assurance concern is 0.817 where the p-value is greater than 0.05
(0.415). Therefore there is sufficient evidence to conclude that the assurance does not influence
the customer satisfaction of Volkswagen Malaysia.According to Zeithaml, Berry and Parasurman
(1990) assurance is about competence, courtesy, credibility and security. The assurance mainly
discusses about the dimension about the behaviours and ability of the employees to show
confidence, secure transaction, being courteous and being knowledgeable. From the study of
Hussain and Carlsson (2010) the result show that the customers are not at all satisfied with the
quality described in this dimension. Which means the hypothesis is rejected. The case of
assurance is same for Volkswagen Malaysia as the assurance does not go in line with customer
satisfaction and the hypothesis is also rejected. Therefore, this means that assurance is not
significant with customer satisfaction.
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5.2.5 Empathy
Furthermore in the discussion taken from the table 7 it can be seen that empathy was not
significant and had a positively related with customer satisfaction of Volkswagen Malaysia. The
result clearly proven by the standardized coefficient, beta shown in the table 7 coefficient
summary model where beta for empathy is 0.113, this proves that the empathy of Volkswagen
cars affect the customer satisfaction by only 13.3%. The hypothesis for empathy (H5) is rejected
as the t-statistics for empathy is 1.747 where the p-value is greater than 0.05(0.082). Therefore
there is sufficient evidence to conclude that the empathy does not influence the customer
satisfaction of Volkswagen Malaysia. According to Zeithaml, Berry and Prasuraman (1990)
empathy is about easy access, good communication and understanding the customers. Gronroos
(1983) include the factors such as individual attention, if the company has the best of the
customer at their heart, are the employees understanding the need of the customers and does the
company has convenient operation hours. However, the study conducted by Hussain and
Carlsson (2010) shows that the customers do not think that their overall expectations are fulfilled
within this dimension. As a result it shows that the customers are not at all satisfied with the
quality described in this dimension except feature 18 which is about individual attention. In case
of Volkswagen Malaysia the results are significantly the same as empathy is not significant with
customer satisfaction, which means that the customers are not satisfied.
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5.3 Interpretation of Customer value
As for the interpretation of customer value on customer satisfaction, thevariables are broken
down into 3 sections which are product value, personal value and image value. Therefore, the
interpretations for each of the variables are as follows:
5.3.1 Product value
As seen from the findings in table7 from chapter 4, there is evidence that the product value was
not significant and had a positiverelationship with customer satisfaction of Volkswagen
Malaysia. The result clearly proved by the standardized coefficient, beta shown in the table7
coefficient summary model where beta for product vale is 0.061, this proves that the product
value of Volkswagen cars affect the customer satisfaction by only 6.1%. The Hypothesis for
product vale (H6) is rejected as the t-statistics for product value is 0.799 where the p-value is
grater then 0.05(0.425). Therefore there is sufficient evidence to conclude that the product value
does not influence the customer satisfaction of Volkswagen Malaysia.
5.3.2 Personal Value
Provided from the table 7 from chapter 4 it can be seen that the personal value was not
significant and had a positive relationship with customer satisfaction of Volkswagen Malaysia.
The result clearly proved by the standardized coefficient, beta shown in the table 7 coefficient
summary model where beta for personal value is 0.063, this proves that the personal value of
Volkswagen cars affect the customer satisfaction by only 6.3%. The hypothesis for the personal
value (H7) is rejected as the t-statistics foe the personal value is 0.843 where the p-value is
greater than 0.05(0.401). Therefore there is sufficient evidence to conclude that the personal
value does not influence the customer satisfaction of Volkswagen Malaysia.
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5.3.3 Image Value
Lastly, image value also has a positive relationship and is not significant with customer
satisfaction of Volkswagen Malaysia. The result form the table 7 clearly shown that the
standardized coefficient, beta shown in the coefficient summary model was 0.104, this proves
that the image value of Volkswagen cars affect the customer satisfaction by only 10.4%. The
hypothesis for image value (H8) is rejected as the t-Statistics for the personal value is 1.472
where the p-value is greater than 0.05(0.143). Therefore there is sufficient evidence to conclude
that the image value does not influence customer satisfaction of Volkswagen Malaysia.
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Chapter6: Conclusion, Limitation and
Recommendation
Page | 45
6.1Introduction
In this chapter the summarization of the whole report is provided. In addition, the findings from
previous chapters are combined together with the conclusions. The limitations and
recommendation is also added in this chapter, to give a more discrete view of the research. This
chapter recapitulated on the key findings and overall synopsis for the entire research paper.
6.2Conclusion
This case-study explores the service quality and customer value dimensions of Volkswagen
Malaysia. 200 respondents were asked to fill the questionnaires provided in appendix 1 in order
to measure their customer satisfaction perception. They were provided with a questionnaire
which followed the SERVQUAL model which is developed by (Parasurman, 1990) and this
model consists of 22 different service features which are grouped into 5 different determinants:
tangibility, reliability assurance, responsiveness and empathy.
As we could see from the analyses of the separation between expectations and perceptions of
males and females they differ within many features. It is natural that if the expectations are
different the perceptions will also be different. But the question is why the expectations are
different between males and females. This might be because of the personality differences of
male and female respondents.
Overall the study shows that only one factor is significant with the customer satisfaction which is
the tangibility. As a result the hypothesis is accepted and can be concluded that tangibility has a
direct relationship with customer satisfaction. However, the factor reliability is not significant
with customer satisfaction. The reason behind it might be that the customers of Volkswagen
Malaysia are not satisfied with the current dimension of the reliability they are providing. In
addition, the study conducted by Hussain and Carlsson (2010) also shows that the reliability did
not satisfy the customers properly. Furthermore, the results for assurance, responsiveness and
empathy are significantly same. All the factors except for tangibility are not significant with
customer satisfaction. As per the results it can be concluded that the customers of Volkswagen
Malaysia is only satisfied with the tangibility of the service quality. In order to change the
Page | 46
dimension of the results Volkswagen Malaysia can conduct even a broader study to further
analyze the data’s and satisfy the customers.
Moreover, Customer value can be broadly defined as “the customer’s overall assessment of the
utility of a product based on the perception of what is received and what is given”. A number of
researchers have investigated the role of customer value in consumption contexts. For example
Zeinthaml (1998) provided the evidence supporting an influential role of value in consumers
purchase decision making. In this case the customer value is grouped into 3 different
determinants: product value, personal value and image value.
As the result from chapter 4 supports that the product value was not significant with customer
satisfaction. In other words customers were not satisfied with the product, which is a huge issue
for Volkswagen to look into. This is because if the customers are not satisfied with the product
that means they are not satisfied with the Volkswagen Company. Furthermore, the personal
value and the image value has shown the same result as personal value. Both the image value and
personal value was not significant with customer satisfaction. The result means that customers
are not satisfied with Volkswagen Malaysia’s current image and also not satisfied with their
personal experience with Volkswagen Malaysia.
All in all it can b concluded, that the results of the studies are quiet limited and further
investigation and researches are need tounderstand the customer satisfaction of Volkswagen
Malaysia. As per the finding of this study accept for tangibility none of the other variables are
significant with customer satisfaction.
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6.3 Limitation
This research paper contains several limitations that have hindered the capability to generalize
the result of the project. Due to time constraints, the researcher is unable to do more reading on
the literature. The sampling frame of this study was only limited to Bandar Sunway area.
Therefore, the findings of this study were unable to be generalized to all the customers of
Malaysia. Furthermore, the limited time has also limited the researcher’s ability to gather more
respondent for the study which could have given the research a more distinctive look. Therefore,
there were only limited numbers of respondents who participated in this study which eventually
lead the research to retrieve more unreliable results.
Moreover, this study concentrated on only two independent variables as the determinant of
customer satisfaction. However, there are more variables which do influence customer
satisfaction in various ways. In addition the questionnaire used in the research was the five Point
Likert-scales which could be another limitation of this research as most respondent’s straight go
for the answer as neutral. This has caused the research to have more unreliable data.
Furthermore, most of the respondents who answered the questionnaire does or did own a
Volkswagen car as result they did not have clear knowledge about the current service or value of
Volkswagen Malaysia. However though the research had limitation it was carried out
successfully on time.
Lastly, the insufficient resources were also one of the limitations found in this study. Even
though there were free resources available for the study; there were still insufficient journals and
articles to support the literature of the study. In addition finding the journal article was quiet
difficult as most of the journal article only had the abstract view. The time lost finding these
articles were another limitation of this study.
6.4Recommendation
This research was relatively narrow because it did not identify all the factors of customer
satisfaction such as customer loyalty (Hafeez and Muhammad 2012), American customer
satisfaction model (ACSI Model) indentified by (Angelova and Zekiri 2011), customer perceived
Page | 48
value and many more identified by (Yang and Peterson, 2004). Therefore, further research may
consider broader range of customer satisfaction preferences determinants.
Apart from the analysis of this studies result is limited to Bandar Sunway area, namely Kuala
Lumpur districts. Thus, it would be recommended for future research to extend the research
geographically to get more comprehensive view of customer satisfaction of Volkswagen
Malaysia. In future, the research may be concluded and covers wider area such as Sabah,
Sarawak, Johor and Penang.
Moreover, in concluding the research the researcher opted for the method of self- administrated
survey which has some limitation as compared to other research that have been done in the past.
For instance, self-administrated survey will not allow the researcher to ask more questions other
that what is there inside the questionnaire. Therefore, the respondents were limited in providing
their own opinion and further discussion regarding the topic. Thus, it would be recommended for
future research to focus on interviews and other interacting method to capture important
information in case of customer satisfaction for Volkswagen Malaysia which will eventually
provide more dependable outcome of the findings.
In addition, the sample of the study is considered relatively small to represent the whole
population of Malaysia. Therefore, it would be recommended for future research to expand the
sample of the study to get a more comprehensive view of the customer satisfaction of
Volkswagen Malaysia. For instance, the research may increase the sample size from 200 to 1000
or 2000.
Finally, I would also recommend for future researchers to study more on the customer
satisfaction variable and go through more articles and data’s to get a more comprehensive
outcome. In general the process of completing this project is beneficial to me as I have gained
essential skills and valuable knowledge which will help me in the future. Last but not the least I
would like to take the opportunity to express my gratitude to my lecturer and supervisor, Dr.
Walter Tan Teck Hong for his time, patience, guidance and advice throughout the process of
completing this project.
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Chapter7: Critical Reflection
Page | 50
This research project has taken me eight months to be completed. During this period, I have
gained and improved me knowledge in everything that has helped me to complete this research.
Furthermore, I have gain tons of knowledge on other studies and research as I went through all
the journals, books and articles which I have used to complete this research. This skills and
knowledge that I have gain are overwhelming and this will help me in the future when I start
working in real life. In addition in this study I have learned about lots of theories and
implications which relates to customer satisfaction, which also gives me a vast knowledge on
how to fulfil the customer satisfaction in a larger panel. Overall, I have learned different type of
skills while developing this research, which includes research skills, time management,
following proper guidance and lastly how to complete a thesis paper.
Firstly, i have learned how to conduct a proper academic research and utilize the resources in
order to get clear understanding the in-depth of the study. As a matter of fact without going
through this research process I would not have understand the comprehensive procedures of
conducting a research. Therefore, this subject has enlightened me on the importance of
conducting a proper research and understanding how a proper research paper should be done.
Moreover, this subject has given me a chance to work with the SPSS software for doing the data
analysis. The software itself is a learning machine it has helped me to find out all the results and
values that were needed to complete this research. In addition, this research paper has also taught
me how to develop a proper research survey which has indeed played a vital role in completion
of this research. While developing the questionnaire I have gone through tons of articles and
journal which helped me to do the questionnaire properly, and with the help of the SPSS
software it was just so easy to analyze all the data that I have collected and finally finish the
research on time. Furthermore, these experiences that I have gain while doing this research has
eased my worries in conducting future research paper.
Apart from developing research skills, I have learned to develop a good interpersonal skill by
building good relationship with my supervisors and friends. This is because I was constantly
meeting him throughout my research period, to update him on the research progression and have
him to correct the mistakes I was making. Furthermore, this has improved the work I have done
as my supervisor has prior experience to develop professional research paper.Moreover, by
sharing his knowledge, my research has improved frequently in the process of completion. In
Page | 51
order to develop a positive and professional relation with my supervisor I constantly kept contact
with him while arranging appointment according to his schedule. As my supervisor is busy with
lots of work he has deliberately helped me whenever I asked help from him. This is a very
important thing that I have learned which will help m in the future when I join the workplace.
Moreover, I have also learned time management while doing this research. As for the second part
of the project I was given only two months to complete the whole research paper. Therefore, I
needed to constantly manage my time in order to complete the project at the due time. Right at
that time every single second was important to me and without appropriate timeline I would have
never completed the project on time. With the help of my supervisor, who has always helped me
to finish each chapter and each process in a timely manner. Besides that he has constantly pushed
me to finish the project before the deadline so at the end of the day I have extra time for small
correction and addition. From my point of view, time management is highly needed to complete
a research paper. It plays a vital role and utilizing each and every second is more than just
important.
Moreover, apart from all the skills mentioned above, I have also learned to face the challenges
that I have came across while finishing this research. In order to finish the research I have gone
through relevant journals and article which will support my research with good references. I have
indeed spent a lot of time in order to find the correct journal that is needed to complete my
research. At times when I could not find or access the proper journals as required I asked my
friends to help me finding them. In contrast, distributing the questionnaires was one of the most
difficult task during the research period.I had to go through lot of stress as most respondents
were less willing to answer the questionnaires. However, I was not that packed with other
subjects or assignment during the whole assignment which has given me more time to
concentrate on this research which might help me to achieve a good grade.
In general, the process of completing this research has benefited me in every way possible. I
have gained potential knowledge and valuable skills throughout this research. Lastly, I would
like to take the opportunity to thank my supervisor my lecturer and my mentor, Dr. Walter Tan
Teck Hong for his precious time, guidance and advice throughout the completion of research. I
thank him once again for this support.
Page | 52
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Page | 53
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Appendix 1: Questionnaire
“The effect of service quality and customer value on customer satisfaction in the automobile
industry: A Case of Volkswagen Malaysia”
I am an undergraduate student who is currently studying BSc (Hons) in Business Studies at Sunway
University. I am conducting a research on the effect of service quality and customer value on
customer satisfaction in the automobile industry: A Case of Volkswagen Malaysia. The main
purpose of this research is to determine the customer satisfaction of Volkswagen Malaysia through
service quality and customer value. We hope that the results of this survey will serve as a
preliminary platform to other studies and affect the business decision. I would be very grateful if
you could spend a few minutes to complete this questionnaire. Your answers will strictly remain
confidential and all information disclosed will be used for academic purpose only.
For Part 1 to Part 3, please tick () on the 5-point scale, ranging from 1 (strongly disagree) to 5
(strongly agree)
Part 1 – Customer Satisfaction
Strongly Disagree Neutral Agree Strongly

disagree Agree
1. I am satisfied with current performance of Volkswagen
2. I am very much loyal to Volkswagen company
3. I would recommend Volkswagen to my friends
4. I am satisfied with the customer service department
5. I am satisfied with overall quality and value
6. After purchases Service (Warranty, Repair etc) is
satisfactory
7. Employees response to my enquiries in a timely manner
Page | 60
Part 2 – Service Quality

disagree Agree
Tangibility
8. Volkswagen cars have visually appealing facilities
9. Employees have a neat, profession appearance at
Volkswagen
10. Visually appealing materials are associated with
Volkswagen service(such as brochures, free gifts,
discount offer)
Reliability
11. Volkswagen provides services as promised
12. Volkswagen has a dependability in handling customers
and services performed
13. Volkswagen provides after sales services at the promised
time
Responsiveness
14. Volkswagen keeps me informed about when after sales
services will be performed
15. Volkswagen is always willing to help customers
16. I believe Volkswagen shows readiness to respond to
customers requests
Assurance
17. I believe Volkswagen makes me feel safe in every
transaction I make (such as car financing, loan etc)
18. Employees are consistently courteous to me
19. I believe that employees at Volkswagen are
knowledgeable because they answer to me clearly
Empathy
20. I believe Volkswagen has given me individual attention
while my purchase
21. I believe employees understand my need
22. I believe Volkswagen company has convenient business
hours
Page | 61
Part 3 – Customer Value

disagree Agree
Product Value
23. I think that Volkswagen Cars are safe
24. I get the best for what I am paying for
25. I believe that Volkswagen Cars are reliable
26. I think Volkswagen cars are valuable
27. The current performance of Volkswagen Cars
are good
Personal Value
28. Volkswagen cars suits my personality
29. Purchasing from Volkswagen made me satisfied
30. I would consider repurchasing from Volkswagen
again
31. I believe Volkswagen cars are smooth and
beautiful while I am driving it
32. Volkswagen cars have unique designs which is
very attractive
Image Value
33. Volkswagen cars are impressive and delightful
34. I believe Volkswagen as a company is quiet well
reputed
35. Volkswagen company has a good image in the
market
36. I would recommend Volkswagen cars to my
friends
Demographic Variables:
I. Gender: О Male О Female
II. Nationality: О Malaysian О Non-Malaysian
III. Level of education attainment: О Primary О High School О College Degree О Postgraduate
IV. Age: О below 18 О 19 – 29 О 30 – 39 О 40 – 49 О above 50
~Thank you for your cooperation~
Page | 62

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The Effect of Service Quality and Customer

Value on Customer Satisfaction in the

RESEARCH PROJECT SUBMITTED IN

In the Sunway University Business School

Appendix 2: Descriptive Statistics

Appendix 3: Factor analysis

Appendix 4: Regression Analysis

Appendix 5: Reliability Analysis

1.2Background of the study

1.2.1The development of automobiles in Malaysia

1.2.2The development of Volkswagen Group Malaysia

The Volkswagen brand is no stranger to Malaysians, generations of Malaysian have grown up

1.3 Identification of Research Gap

To achieve the aim, the following research objectives are formulated:

1. To find out the current customer satisfaction of Volkswagen Malaysia Customer,

1.6 Contribution of study

2.2 Dependant Variable: Customer Satisfaction

Furthermore, Oliver (1981) introduced the expectancy-disconfirmation model for studies of

Tangibilityinvolves the appearance of physical facilities, including the equipment,

2.3.2 Personal Value

2.4 Research Hypothesis

H1: there is a significant relationship between customer satisfaction and tangibility

Independent Variable Dependent

Reliability Service Quality

Personal value Customer Value

The intention of this research is to determine customer satisfaction of Volkswagen Malaysia

3.6Data collection Method

In order to remain on the study of customer satisfaction on Volkswagen Malaysia, the

1. Part 1 consists of question related to customer satisfaction

3.9 Data Analysis

Part 1 Customer Satisfaction  Gi-Du G.D.K, Jeffery J.J, (2004),

Part 2 Service Quality  Gi-Du G.D.K, Jeffery J.J, 2004,

Part 3 Customer Value  Gi-Du G.D.K, Jeffery J.J, (2004),

Demographic Details Frequency Percentage (%)

Gender Male 126 63.0

Nationality Malaysian 134 67.0

Education Primary 2 1.0

High school 7 3.5

College Degree 160 80.0

Age Below 18 8 4.0

19-29 139 69.5

Table 2: Demographic Profile of Respondents

Variables Number of items Cronbach’s Alpha

Table3: Reliability Analysis

Variables Number of Items Bartlett’s Test KMO

Table 4: Factor analysis of dependent and independent variables

Moreover, the independent variable of service quality is reduced to 5 items: “tangibility”,

Model Sum of Squares df Mean Square F Sig.

1 Regression 32.000 8 4.000 24.189 .000a

b. Dependent Variable: Average of CS

Table 6: Model Summary

1 (Constant) .509 .237 2.149 .033

Tangibility .357 .051 .433 7.017 .000 .705 1.419

Reliability .107 .065 .115 1.656 .099 .552 1.811

Responsiveness .020 .057 .021 .353 .725 .758 1.319

Assurance .052 .064 .056 .817 .415 .574 1.743

Empathy .109 .063 .113 1.747 .082 .640 1.562

Product value .053 .066 .061 .799 .425 .459 2.177

Personal value .048 .057 .063 .843 .401 .474 2.109