Factors Influencing on Used Passenger Car Purchase Intention by Examining the Mediation of Perceived Value in Sri Lankan Used Vehicle Market

Abstract

With the suspension of new car imports to Sri Lanka from 2020, there has been a significant transformation in the used vehicle market in Sri Lanka in the last decade. Therefore, understanding the factors influencing the used passenger car purchase intention of consumers will be very helpful for all organizations and businessmen involved in the used vehicle market in Sri Lanka to formulate effective strategies, the research's purpose is investigating the factors influencing on used passenger cars purchase intention in used vehicle market in Sri Lanka, focusing on the mediating role of perceived value. This study adopted a positivist approach, focusing on quantitative methodology concerned with analysing relationships between variables, and collected primary data based on a sample of 398 respondents, utilising structured online questionnaires.. The results of the analysis show that among the independent variables, brand, price, design, technical consideration, etc., only the "technical consideration" variable has a weak relationship with perceived value. It has been confirmed that it is not a significant effect by accepting other hypotheses. Accordingly, this study has further shown that the variables brand, price, design, technical consideration, perceived value is all the most important in determining purchase intention. Not only that, the findings of this study have confirmed that the mediation of perceived value is also an important variable.This research has implications for theory as well as practice. From a theoretical perspective, it enriches the literature by elaborating on the mediating role of perceived value in the context of intention to purchase a used car. Practically, it gives actionable insights to automotive companies and leasing firms on strategic branding, competitive pricing, and innovative design for enhanced consumer value perception. In addition, it provides insight to used car dealers, online buying and selling vehicle platforms, customers, and new entrepreneurs.