Walden University ScholarWorks Walden Dissertations and Doctoral Studies Walden Dissertations and Doctoral Studies Collection 2015 Relationship between product quality and customer satisfaction Albert Vitales Cruz Walden University Follow this and additional works at: https://scholarworks.waldenu.edu/dissertations Part of the Business Administration, Management, and Operations Commons, Industrial Engineering Commons, Management Sciences and Quantitative Methods Commons, and the Mechanical Engineering Commons This Dissertation is brought to you for free and open access by the Walden Dissertations and Doctoral Studies Collection at ScholarWorks. It has been accepted for inclusion in Walden Dissertations and Doctoral Studies by an authorized administrator of ScholarWorks. For more information, please contact [email protected]. Walden University College of Management and Technology This is to certify that the doctoral dissertation by Albert V. Cruz has been found to be complete and satisfactory in all respects, and that any and all revisions required by the review committee have been made. Review Committee Dr. David Gould, Committee Chairperson, Management Faculty Dr. Mohammad Sharifzadeh, Committee Member, Management Faculty Dr. Christos Makrigeorgis, University Reviewer, Management Faculty Chief Academic Officer Eric Riedel, Ph.D. Walden University 2015 Abstract Relationship between Product Quality and Customer Satisfaction in the U.S. Automobile Industry by Albert V. Cruz MBA, John F. Kennedy University, California, 1985 MPA, John F. Kennedy University, California, 1984 BSCE, Mapua Institute of Technology University, Philippines, 1968 Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Applied Management and Decision Science Walden University August 2015 Abstract The National Safety Council (NSC) estimated that over 35,000 people died in U.S. traffic accidents. About 3.8 million traffic crash injuries requiring medical attention occurred in 2013, and the number of deaths was about the same over the last 5 years. The NSC found that product recalls, car repairs, injuries, and deaths were due to unsafe product designs or inferior product quality. These statistics underscore the challenge of producing quality vehicles while satisfying customers. The purpose of this nonexperimental study was to examine relationships among product (vehicle) quality, product cost, product safety, and consumer satisfaction. The hypotheses inquired the extent to which relationships exist between product quality and customer satisfaction and if product cost and product safety influence this relationship. The theoretical foundation included theories on product quality and consumer satisfaction associated with the cost and safety theories such as product quality and customer satisfaction that are critical factors that can promote positive social change. Data were collected from a random sample (N = 77) of U.S. automobile users and analyzed via simple and multiple linear regression, which showed a significant statistical relationship between product quality and customer satisfaction. However, neither the product safety nor product cost helped mediate the relationship between product quality and customer satisfaction. Building high-quality cars leads to fewer injuries and deaths associated with vehicular accidents, thus promoting positive social change for both U.S. automobile buyers and sellers. Relationship between Product Quality and Customer Satisfaction in the U.S. Automobile Industry by Albert V. Cruz MBA, John F. Kennedy University, California, 1985 MPA, John F. Kennedy University, California, 1984 BSCE, Mapua Institute of Technology University, Philippines, 1968 Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Applied Management and Decision Science Walden University August 2015 Dedication I dedicate my dissertation research study, in which I investigated the relationship between product quality and customer satisfaction to the unquenchable memory of my deceased loving wife and best friend, Linaflor Manantan Cruz, who passed away on October 29, 2012 as I began the dissertation procedure. My loving wife wished that I completed my study even after her passing away. I also dedicate this work to the memory of my late parent Juan Perez Cruz and Leonora Vitales Cruz, whose supports and encouragements to my study made this achievement possible. Acknowledgments This research would not have been successfully completed without the able directions of the following faculty members of the Walden University. Chairperson Dr. David Gould, who spent numerous hours in reviewing my dissertation at a high level of expectation; Dr. Mohammad Sharifzadeh, whose knowledge of research methods and statistical analyses was commendable; Dr. Christos Makrigeorgis, who helped diligently with the assessment and approval for the University Research Review; Dr. James Stewart, who mentored me during the preparation of my first three Knowledge Area Modules (KAMs); and Dr. Irmak Randa-Tanali, who journeyed with me throughout the review of my last two KAMs. I also acknowledge my siblings Ernesto V. Cruz, Josefina C. Calayag, Gerardo V. Cruz, Erminda C. Mora, Corazon C. Millena, and Salvador V. Cruz for their morale and physical supports during my studies and while I was grieving over the loss of my dear wife, Linaflor Manantan Cruz. Table of Contents List of Tables ..................................................................................................................... iv List of Figures ......................................................................................................................v Chapter 1: Introduction to the Study ....................................................................................1 Background ....................................................................................................................3 Problem Statement .........................................................................................................5 Purpose of the Study ......................................................................................................6 Research Question and Hypotheses ...............................................................................7 Theoretical Foundation ..................................................................................................8 Nature of the Study ......................................................................................................13 Definitions....................................................................................................................15 Assumptions .................................................................................................................19 Scope and Delimitations ..............................................................................................20 Limitations ...................................................................................................................21 Significance of the Study .............................................................................................23 Significance to Practice......................................................................................... 23 Significance to Theory .......................................................................................... 24 Potential Implications for Positive Social Change................................................ 27 Summary and Transition ..............................................................................................29 Chapter 2: Literature Review .............................................................................................31 Literature Search Strategy............................................................................................33 Theoretical Foundation ................................................................................................35 i Literature Related to Key Variables and Concepts ......................................................37 Product Quality and Customer Satisfaction Constructs ........................................ 38 Product Cost and Customer Satisfaction Constructs ............................................ 40 Product Safety, Product Cost, and Customer Satisfaction Factors ....................... 42 Customer Satisfaction and Customer Loyalty ...................................................... 44 Best Practices and Models for Influencing Customer Satisfaction ....................... 47 Product Quality, Product Safety, and Customer Satisfaction Constructs ............. 53 Summary and Conclusions ..........................................................................................55 Chapter 3: Research Method ..............................................................................................58 Research Design and Rationale ...................................................................................59 Research Methodology ................................................................................................63 Population ............................................................................................................. 65 Sampling and Sampling Procedures ..................................................................... 65 Procedures for Recruitment, Participation, and Data Collection .......................... 70 Pilot Study ............................................................................................................