Perceived value analysis of motorcycles in Sri Lanka

Abstract

The motorcycle is the vehicle with highest demand in Sri Lanka. Motorcycle usage in Sri Lanka is expanding rapidly over the years primarily due to its affordable price range. Customer perception refers to the customer's opinion of the service/product and evaluates through perceived value analysis. It is important to know the relationship between the price of motorcycles and customer perceived value of motorcycles for decision-makers in the automotive industry. The objectives of this study are to identify the attributes which are most important in formulating the customer perception towards motorcycle prices, identify the relationship between the price and customer perception of the motorcycles and calculate the perceived value for each motorcycle model under consideration. A total of 1117 customers were used to generate data with respect to 21 motorcycle models. Non- probability sampling techniques were appliedin the market survey, that gathered data on customer opinion on attributes such as brand, appearance, features, fuel efficiency, resale value, after-sale services, and suitability for road. were identified as the important attributes in formulating the customer perception towards motorcycle prices. Perceived value for each Commuter Standard, Commuter Deluxe, Sports Classic and Sports Premium motorcycle models were calculated by using the weightage of each attribute and rank of motorcycles. According to the Pearson correlation coefficient, there is a positive relationship between the actual price and the perceived value of motorcycles. Therefore, this analysis helps to understand purchasing decisions of customers and industry players can use this information for adjusting their pricing strategies against the market competition.