Journal of Korean Society for Quality Management (품질경영학회지)

Korean Society for Quality Management (한국품질경영학회)
권호 표지
DOI QR코드

DOI QR Code

The Analysis of Efficiency and Productivity of the Quality of Global Automobile Brands from the Customer's Perspective: Luxury vs. Mainstream Brand

고객의 관점에서 바라본 글로벌 자동차 브랜드 품질의 효율성 및 생산성 분석: 고급 vs. 일반 브랜드

  • Kim, Hyun Jung (Department of Business Administration, Sangji Youngseo College) ;
  • Kim, Changhee (Department of Business Administration, Seoul National University) ;
  • Choi, Kangwha (Department of Business Administration, Hansung University)
  • Received : 2016.08.08
  • Accepted : 2016.10.11
  • Published : 2016.12.31
Download PDF
⟨ Previous Next ⟩

Abstract

Purpose: The purpose of this study is to analyze the efficiency and productivity of the quality by integrating the product quality and service quality of global automobile brands from the customer's perspective. Methods: In this study, the data from JD Power and GoodCarBadCar.net were used to analyze the efficiency and productivity of a total of 24 automobile brands (10 luxury brands and 14 mainstream brands) between 2009 and 2013. For this, DEA (Data Envelopment Analysis) and MPI (Malmquist Productivity Index) were used. Results: The mean efficiency of the quality of global automobile brands were 0.725 for luxury brands and 0.587 for mainstream brands, which suggests generally higher efficiency for luxury brands. The productivity of the quality of global automobile brands increased by 16.1% for luxury brands while it decreased by 3.1% for mainstream brands. Conclusion: The study provides a theoretical implication in that it emphasized the efficiency of the quality viewed from the customer's perspective, and investigated the quality of the product and that of service in an integrative manner. In addition, this study provides also a practical implication in that it suggests how to set the sales goal by the brand and how to manage according to the characteristics of the brand to the managers of automobile manufacturers.

Keywords

References

  1. Banker, R. D., Charnes, A., and Cooper, W. W. 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis." Management Science 30(9):1078-1092. https://doi.org/10.1287/mnsc.30.9.1078
  2. Chang, K. P. 2010. "Empirical Application of the Automobile Choice Model by Accounting for Price Endogeneity." Korea Marketing Review 25(3):51-69.
  3. Chen, Y., and Ali, A. I. 2004. "DEA Malmquist Productivity Measure: New Insights with an Application to Computer Industry." European Journal of Operational Research 159(1):239-249. https://doi.org/10.1016/S0377-2217(03)00406-5
  4. Cooper, W. W., Seiford, L. M., and Zhu, J. 2004. Handbook on Data Envelopment Analysis. Boston: Kluwer Academic Publishers.
  5. Devaraj, S., Matta, K. F., and Conlon, E. 2001. "Product and Service Quality: The Antecedents of Customer Loyalty in the Automotive Industry." Production and Operations Management 10(4):424-439. https://doi.org/10.1111/j.1937-5956.2001.tb00085.x
  6. Fullerton, G., and Taylor, S. 2002. "Mediating, Interactive, and Non-linear Effects in Service Quality and Satisfaction with Services Research." Canadian Journal of Administrative Sciences 19(2):124-136.
  7. Gannage Jr, G. J. 2009. Assessing SERVQUAL and the Automotive Service Quality Model: A Comparative Study. ProQuest.
  8. Ha, G. R., and Choi, S. B. 2014. "The Evaluation of Relative Management Efficiency of Automobile Companies Using Non-parametric Approach." Knowledge Management Research 15(2):147-164.
  9. Ham, S. C., and Yu, S. M. 2000. "A Study on Efficiency in Korean, US, and Japanese Automobile Industry: Focused on Analysis Using Fourier Flexible Function." Korean Journal of Economic Studies 48(4):103-137.
  10. Hong, J. E., and Kwon, H. K. 2007. "Selecting Optimal Design Condition Based on Automobile Brake Feeling Using Malhalanobis Taguchi System." Journal of the Society of Korea Industrial and Systems Engineering 30(1):41-47.
  11. Kim. D. N., and Cho, J. R. 2004. "An Empirical Study on the Integrated Customer Satisfaction Evaluation Model for New Product Development-focused on Automobile Industry." Journal of the Korean Society for Quality Management 32(4):113-124.
  12. Kim, J-K., Lee, K-H., and Kim, Y. H. 2011. The 2007-2011 White Paper on Korean Automobile Quality.
  13. Kim, S. H. 2012. "The Effects of TQM Practices on Firm Performance through Product, Support, and Service Quality." Journal of the Korean Production and Operations Management Society 23(2):171-196.
  14. Korea Economic Research Institute. 2015. International Competitiveness and Policy Issues of Korea, China, and Japan's Automobile Industry.
  15. Luo, X., and Donthu, N. 2006. "Marketing's Credibility: A Longitudinal Investigation of Marketing Communication Productivity and Shareholder Value." Journal of Marketing 70(4):70-91. https://doi.org/10.1509/jmkg.70.4.70
  16. Moon, S. 2003. "The Efficiency of Automobile Firms Using DEA Approach." The Journal of Management and Economics 17:63-90.
  17. Oh, I., Lee, J-D., Hwang, S., and Heshmati, A. 2010. "Analysis of Product Efficiency in the Korean Automobile Market from a Consumer's Perspective." Empirical Economics 38(1):119-137. https://doi.org/10.1007/s00181-009-0258-x
  18. Oh, J. G., Lee, S. D., and Hong, Y. H. 2009. Active Plan of Automative Recycled Parts in Insurance Field. KSAE 09 Annual Conference, 2647-2652.
  19. Papahristodoulou, C. 1997. "A DEA Model to Evaluate Car Efficiency." Applied Economics 29(11):1493-1508. https://doi.org/10.1080/000368497326327
  20. Park, J. I., Lee, D. K., and Byun, J. H. 2005. "A Six Sigma Application Case Study to Improve a Rolled Throughput Yield of an Automobile Steering Wheel Manufacturing Process." Journal of the Korean Society for Quality Management 33(1):32-43.
  21. Park, J. O., Park, I. S., and Yang, C. S. 2010. "The Effects of Service Quality of Auto Maintenance and Repair Services on Customer Satisfaction and Customer Loyalty." Journal of the Korea Service Management Society 11(5):176-198.
  22. Park, M. H., and Jang, Y. H. 2009. "The Effect of Consumer's Brand Choice Attributes on Automobile Corporate Brand Evaluation." Journal of Consumption Culture 12(2):67-97. https://doi.org/10.17053/jcc.2009.12.2.004
  23. Ryu, Y. S., Rhim, H. S., and Kim, Y. S. 2001. "Applications Papers: A Study on Measuring Service Quality in Automobile Service Industry." Journal of the Korean Society for Quality Management 29(1):173-183.
  24. Yoon, S. H. 2010. "International Management: An Empirically Comparative Study on the Purchasing Attitude to Korean Automobiles of American, Chinese, and Indian Consumers: Focusing on Hyundai Automobile." International Area Studies Review 14(1):161-181.
  25. Yoon, S. H. 2012. "International Management: The Influences of Automobile Repair Service Quality on Customer Satisfaction, Customer Trust, and Customer Loyalty: Focusing on Beijing Hyundai Motors Service Center." International Area Studies Review 6(4):447-474.
  26. Yoon, S. H., and Jeon, H. Y. 2010. "Consumption Values Affecting Perceived Luxuriousness: Korean Professionals' Perceptions of Five Import Automobile Brands." Journal of Product Research 28(2):143-158.
  27. Yousefi, A., and Hadi-Vencheh, A. 2010. "An Integrated Group Decision Making Model and Its Evaluation by DEA for Automobile Industry." Expert Systems with Applications 37(12):8543-8556. https://doi.org/10.1016/j.eswa.2010.05.021