1. Introduction
Generally, the automotive industry has developed based on manufacturing-centered sales, and auto repair services as an after-sales service form have been recognized as playing a secondary role to resolving problems occurring within the warranty period after the sale of new cars. For this reason, auto repair service companies have focused on improving technical and repair process expertise, with the goal of providing after-sales service with high cost-effectiveness in terms of time. Along with these changes, the size of the auto repair service market is estimated to be Euro 800 billion in 2017, and is expected to grow by 3% annually over the next 10 or more years. In addition, it is estimated that it will show a 6.1–7.5% growth rate in the markets of China and Asia, rather than the United States and Europe, and that the continuous growth of the auto repair service market is predicted worldwide [
1].
However, as advanced cars such as smart cars, unmanned cars, and electric cars continue to be commercialized, new systems and technologies for car repair and management are required, and expand customer services based on smartphones, so does their need for more information, and the DIY repair of their cars. Furthermore, new service models, such as on-site repair and total management services using various business platforms, rather than service centers run by car companies’ repair department and general individual entrepreneurs, are continuously activated. In addition, many global automakers continue exerting effort to maintain customer relationships by providing new service programs to enhance customer convenience and use, such as the ’Excessive Maintenance Prevention Program’ and ’One-hour Repair Service Program’ to strengthen their brand maintenance service competitiveness [
2].
In recent years, competition in the automobile market has been fierce. As the customer’s various needs increase, detailed service needs rise in the overall use and management of the car beyond the purchase of the car, emphasizing the importance of improving the quality of the auto repair service [
3]. Particularly, the reason why global automakers strive to improve repair service quality as much as the quality of automobile products is that car maintenance and management, upon using an after-sales service, are as important to the customers using cars today as the quality of the automobile products. Moreover, attracting new customers is important in the auto repair service industry, but maintaining existing customers and strengthening relationships are emerging an important issue since reducing the existing customer churn rate by just 5 percent would result in profits of about 25 percent or more of a company’s financial income, as explained by preceding studies [
4,
5]. In the end, maintaining existing customers and strengthening long-term relationships can be an important marketing strategy for auto repair service companies, as much as steady profit generation and efficient management.
Today, most auto repair service companies are exerting effort to provide new services and benefits not only to customize strategies according to customer needs, but also to maintain continuous relationships with customers. Therefore, many companies lead customer participation through relationship marketing, respond sensitively to customer reactions, and strive to improve relationship values [
6]. Also, various relationship marketing activities, such as building differentiated service devices for customer satisfaction and interaction that appear at the customer contact point in the service process, expanding communication tools, and maximizing experience values to enlarge direct interaction with customers [
7] are carried out. Auto repair services also need to consider securing a customer group that has formed long-term relationships, while forming and maintaining relationships between companies and customers in line with market growth and fierce competition.
To date, however, studies in the field of auto repair services have been conducted in terms of technical management, such as on the level of technical maintenance and management system improvement, and those in terms of service quality or customer management are highly insufficient [
8]. Hence, studies on customers’ behavior in auto repair services may be necessary, because it is important to consider the perspective of service management, in which interaction with customers and customer contact point process management for the service provided to customers should be considered beyond the perspective of production management addressing car repair.
The purpose of this study is to verify the influence of factors, such as service quality, relationship benefits, and experience values, as perceived by customers using auto repair services, and carried out through service satisfaction, trust, and intention to create a long-term relationship. By analyzing which factors have the most important effect, and what results present when service satisfaction and service trust act as parameters, this study examined the relationship-oriented behavioral structure of consumers in auto repair services. The results of this study will serve as basic data on customer-oriented and service-oriented consumer behaviors for auto repair services, which have been lacking in prior studies, and will provide specific implications for establishing relationship marketing strategies of companies in the auto repair industry.
5. Conclusions
5.1. Summary and Implications
This study empirically analyzed how service quality, relationship benefits, and experience values affect long-term relationships through service satisfaction and trust in order to observe the customer’s continued relationship orientation to auto repair services. The three major findings from the analysis are as follows: first, service quality, relationship benefits, and experience values were found to affect customers’ service satisfaction, but relationship benefits and experience values did not influence service trust. While service quality is important for service trust, experience value is emphasized as the most important factor for service satisfaction. This shows that, in the end, it is important to strengthen service quality for service trust and satisfaction, but it may be important to consider the experience value of repair service to improve customer satisfaction.
Second, it was found that service trust as a parameter does not mediate long-term relationship properties to relationship benefit factors. This means that the relationship benefits do not play a major role, especially in forming trust in the service as much as service quality and experience value for customers who use the auto repair service. It was further confirmed that for customers, the quality value for repair results and the value through direct experience are factors in maintaining long-term relationship upon forming a trust, rather than the benefits that come from the relationship.
Third, it was found that customers using auto repair services consider service satisfaction factor a more important than service trust. Typically, previous studies emphasized that trust is as important as a satisfaction factor, because services have intangible characteristics [
81,
82]. However, in the case of an auto repair service, service satisfaction based on service quality is considered as the top priority, unlike other general services, because the service results for vehicles are directly checked and service characteristics that prioritize quality satisfaction for products target service. It was also confirmed that, even if service trust is formed, there is a characteristic of not continuing the relationship if satisfaction is not fulfilled.
5.2. Discussion: Open Innovation in the Auto Repair Service Sector
Based on these results, the following implications can be discussed: first, this study empirically revealed the relationship of the impact of customer-centered factors such as relationship benefit and experience value, extended from service quality for auto repair service By specifically examining customer satisfaction, trust, and long-term relationship formation in auto repair services, this study shows that the research results in the aspect of customer behavior of auto repair services, which was lacking in the previous researches and shows academic implications.
Second, in the practical aspect, advance information and reliability have a great impact on customers, as they indicate the propensity to purchase a new car through pre-reservation according to brand preference or reliability [
83]. In the case of an auto repair service, however, a lack of technical knowledge of car repair and anxiety about disadvantages due to an unprecedented condition can breed significant results, even in a brand repair center. Therefore, it may be important to improve customer satisfaction and build trust by strengthening customers’ direct experiences. In these contexts, auto repair service industry needs to provide a promotion that enhances the customer’s direct experience, rather than the marketing approach that relies on the customer’s choice [
84,
85]. It may even be necessary to change a marketing strategy to increase the number of visits to the center in the aspect of car operation management, thereby reducing the anxiety and the psychological distance that customers feel from repair services.
Third, the recent environmental changes of automobile industry are on growth of electrical and unmanned cars, diversifying customers’ needs for car maintenance or repair services, and market environment in which new services are required to be provided [
86]. In particular, customer movements appear according to various types of services, ranging from vehicle types, maintenance contents, repair processes, and parts prices, so there is a limit to a workshop operated by a small private business operator. However, as a large-scale brand-based workshop, a repair service company with enough size and organizational power needs to establish a system by expanding the range of repair services to maintain satisfaction and relationship, as well as various types of repair service quality elements and applications, in accordance with professional manuals, in order to reduce customers’ movement to other repair shops or their consideration to change repair centers.
5.3. Research Limitation and Future Researches
Nevertheless, this study is limited to the generalization of the research results, because the subject customers using auto repair services are only Korean. Since auto repair service shows a large difference according to national and cultural characteristics, it is necessary to conduct comparative studies considering market characteristics by country, and to carry out studies considering the global common influence factors of auto repair services. Second, it will show differences in service usage patterns and needs according to the age and driving experience of customers who use the auto repair services. This research could consider the subdivided characteristics of these customers. In future researches, therefore, it is necessary to conduct a study in consideration of customer characteristics such as age, car type, driving experience, and lifestyle patterns of customers who select auto repair services. Third, service differences and customer needs of auto repair services can be subdivided according to the car brand, specifications and characteristics, and type of service free. Therefore, future researches will require comparative studies by the subdivided service sector in the auto repair service field, as well as studies of customer service and relationship orientation considering differences.