Research Article Open Access

Consumers' Perceived Quality, Perceived Value and Perceived Risk Towards Purchase Decision on Automobile

Choy Johnn Yee1 and Ng Cheng San2
  • 1 University Tunku Abdul Rahman, Malaysia
  • 2 Wawasan Open University, Malaysia


Problem statement: As the level of competition keep on increasing in Malaysia automobile market, it is essential for every automobile producer companies to understand customer insight in order to further increase their share of wallet. Thus, they need to understand what factors might influence their customers’ decision in purchasing an automobile. Therefore, the objectives of this research is to study the relationships of perceived quality, perceived value and perceived risk that will affect on Malaysia consumer purchase decision towards cars. Approach: Survey using convenience sampling was done at Klang Valley to customers’ age between 23-65 years old and above. Questionnaires were distributed to 200 respondents at the sampling location. Results: All the 200 sets of data were reliable where Cronbach’s alpha is more than 0.6. Pearson correlation also showed the strength of the relationship between those variables and normality assumption was meet. Results from multiple regression analysis showed the positive association between the three factors mentioned previously with purchase decision. Conclusion/Recommendations: The results from this research provide a platform for Malaysia automobile makers to understand consumer behavior and how it affects their purchase decision. In order to ensure that the findings of sample are representative and conclusive, future research should be include with larger number of respondents.

American Journal of Economics and Business Administration
Volume 3 No. 1, 2011, 47-57


Submitted On: 14 February 2009 Published On: 7 January 2011

How to Cite: Yee, C. J. & San, N. C. (2011). Consumers' Perceived Quality, Perceived Value and Perceived Risk Towards Purchase Decision on Automobile. American Journal of Economics and Business Administration, 3(1), 47-57.

  • 26 Citations



  • Purchase decision
  • perceived value
  • perceived risk
  • consumers’ perceived quality