A FEASIBILITY STUDY OF LAUNCHING CAR WASH BUSINESS IN BANGKOK

Transcription

1 A FEASIBILITY STUDY OF LAUNCHING CAR WASH BUSINESS IN BANGKOK By Warun Jirachaisingh SIU PS: SOM-MBA

2 A FEASIBILITY STUDY OF LAUNCHING CAR WASH BUSINESS IN BANGKOK A Project Presented By Warun Jirachaisingh Master of Business Administration in Management School of Management Shinawatra University June 2007 Copyright of Shinawatra University

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4 Acknowledgments Many people have greatly supported and provide enormous assistance to the completion of my project study. I would like to faithfully acknowledge my advisor, Dr. Chanchai Bunchapatanasakda. This study would not be able to be successfully completed without Dr. Chanchai s ultimate kindness for his supervision and valuable advices. His experiences, expertise, professional guidance, and encouragement and any necessary inspirations received from him had brought me out to the confidences and strong attempt and willingness to commit myself to the research. I would like to express my thankful faithfulness to all MBA professors for teaching me in all courses and for additional useful and supportive advices and recommendations and suggestions, especially Dr. Pacapol Anurit, who gave very useful suggestions on proposal defense presentation day. I would like to deliver my honest gratitude to Shinawatra University for its granted educational scholarship and good experiences, and all of the university staffs for providing all possible conveniences and good coordinative management and assistances during I have spent for whole academic years in university. Furthermore, I would like to state my sincere impressions to all colleagues, who had given me a very truly strong friendship, encouragement and shared experiences and activities throughout the times we have spent on studies. Finally, I was utterly grateful to my family, Mr. Visith, Mrs. Prannarai, and Mr. Wanich Jirachaisingh, my parents and my younger brother who had continuously and fully always and encouraged me in every time and everything whenever needed. i

5 Abstract The purpose of this study was to identify the direction of market opportunity for car wash business in Bangkok and provide database and information for entrepreneurs who are interested in this business can make a decision on investing in launching car wash business based on customers need not just financially but also in other aspects of management as well. The study investigated the significance of the relationship between demographic factors, marketing mix factors and factors that influence decision making on using car wash service in Bangkok. We employed descriptive statistics to analyze demographic data and One-Way ANOVA methods was used to test the hypotheses. The findings indicated that 86.8 percent of the respondents are regularly using car wash service. Their most convenient time is in the evenings during the weekends. Majority of them select the service with service charge 100 to 200 baht per time. They prefer to subscribe to the car wash service membership less than 2,000 baht. Top three priorities when they are choosing to be membership with car wash service operators were location, reliability and cleanness. The groups also stated that quality of the wash, safety, scratch protection, and satisfaction with the works are very important decision making factors that they concern when using car wash service. Finally, the group recommended that car wash service should charge the reasonable price, have good and friendly employees and do not waste the customers time. It should have a delivery service and have guarantee policies not only the quality of the wash matters but also the safety and properties inside the car. It should have additional services such as the waiting room, coffee club, bookstore, beauty shop for customers to use when they are waiting for their cars cleaned. Regarding financial analysis, we found that the investment will be returned within 3 years and IRR (Internal rate of return) for this project is 17.54% based on the assumption that the initial investment is estimated at 1,500,000 baht. Keywords: Car washes, Car wash industry Bangkok, Customer satisfaction, Quality guarantee policy ii

6 Table of Contents Title Acknowledgments Abstract Table of Contents List of Figures List of Tables Page i ii iii v vi Chapter 1 Introduction 1.1 Research Background Research Objectives Scope of Research Research Significance Conceptual Framework Hypotheses Definitions of Terms 4 Chapter 2 Literature Review 2.1 Marketing Mix Service Marketing Consumer Buying Decision Processes The consumer decision process model Variables that shape the decision process Previous Researches 19 Chapter 3 Research Methodology 3.1 Introduction Population and Sample Size Data Collecting Method Research Design Data Collecting Procedure 27 iii

7 3.6 Data Analysis 28 Chapter 4 Research Findings and Analysis 4.1 Demographic Characteristics of Respondents Using Car Wash Service Behavior Pattern of Respondents Decision Making on Using Car Wash Service in Bangkok Testing of the Hypothesis Financial Analysis Revenues forecast Unit cost Break-even analysis Income forecast Cash flow forecast Revenues forecast, income forecast, And cash flow forecast from the fifth year on Cash Management Human Resources Management SWOT Analysis BCG Matrix 76 Chapter 5 Conclusions and Recommendations 5.1 Conclusions Recommendations 80 References 82 Appendices Appendix A Questionnaire (English) 85 Appendix B Questionnaire (Thai) 91 Biography 97 iv

8 List of Figures Title Page Figure 2.1 Model of Buyer Behavior 6 Figure 2.2 The Four Ps Components of the Marketing Stimulus 7 Figure 2.3 How Consumers Make Decisions for Goods and Services 17 Figure 4 BCG Matrix 7 v

9 List of Tables Title Page Table 3 Width of Class Interval 28 Table 4.1 Respondents Demographic Data Classified by Gender 29 Table 4.2 Respondents Demographic Data Classified by Age 30 Table 4.3 Respondents Demographic Data Classified by Marital Status 30 Table 4.4 Respondents Demographic Data Classified by Education 31 Table 4.5 Respondents Demographic Data Classified by Occupation 31 Table 4.6 Respondents Demographic Data Classified by Working Position 32 Table 4.7 Respondents Demographic Data Classified by Salary 32 Table 4.8 Respondents Using Car Wash Service Behavior Pattern Classified by Regularly Using Car Wash Service 33 Table 4.9 Respondents Using Car Wash Service Behavior Pattern Classified by Reasons for not Using Car Wash Service 33 Table 4.10 Respondents Using Car Wash Service Behavior Pattern Classified by Frequency in Using Car Wash Service 34 Table 4.11 Respondents Using Car Wash Service Behavior Pattern Classified by Convenient Time 34 Table 4.12 Respondents Using Car Wash Service Behavior Pattern Classified by the Day in the Week That Uses Car Wash Regularly 35 Table 4.13 Respondents Using Car Wash Service Behavior Pattern Classified by Car Wash Service Program That Always Use 35 Table 4.14 Respondents Using Car Wash Service Behavior Pattern Classified by Spending Budget Per Time 36 Table 4.15 Respondents Using Car Wash Service Behavior Pattern Classified by Membership 36 Table 4.16 Respondents Using Car Wash Service Behavior Pattern Classified by Reasons for not being Car Wash Service Membership 37 Table 4.17 Respondents Using Car Wash Service Behavior Pattern Classified by Persuasion 37 vi

10 Table 4.18 Respondents Using Car Wash Service Behavior Pattern Classified by Media Persuasion 38 Table 4.19 Respondents Using Car Wash Service Behavior Pattern Classified by Guarantee Policy 38 Table 4.20 Respondents Using Car Wash Service Behavior Pattern Classified by Guarantee is better or not 39 Table 4.21 Respondents Using Car Wash Service Behavior Pattern Classified by Yearly Member 39 Table 4.22 Respondents Using Car Wash Service Behavior Pattern Classified by Regularly Car Wash Service Place 40 Table 4.23 Respondents Using Car Wash Service Behavior Pattern Classified by Rationales for becoming a Member 40 Table 4.24 Respondents Using Car Wash Service Behavior Pattern Classified by Rationales for becoming a Member for People who have been Membership already 41 Table 4.25 Respondents Using Car Wash Service Behavior Pattern Classified by Rationales for becoming a Member for People who have not been Membership yet 42 Table 4.26 Respondents Using Car Wash Service Behavior Pattern Classified by Expectation from Using Car Wash Service 43 Table 4.27 Respondents Using Car Wash Service Behavior Pattern Classified by Additional Services That Car Wash Service Place might think of 43 Table 4.28 Decision Making on Using Car Wash Service in Bangkok of Respondents 45 Table 4.29 Relationship between Gender and Marketing Mix Factors 47 Table 4.30 Relationship between Age and Marketing Mix Factors 48 Table 4.31 Relationship between Marital Status and Marketing Mix Factors 49 Table 4.32 Relationship between Educational Background and Marketing Mix Factors 50 Table 4.33 Relationship between Occupation and Marketing Mix Factors 51 Table 4.34 Relationship between Working Position and Marketing Mix Factors 52 Table 4.35 Relationship between Salary and Marketing Mix Factors 53 Table 4.36 Relationship between Gender and Decision Making Factors 54 vii

11 Table 4.37 Relationship between Age and Decision Making Factors 55 Table 4.38 Relationship between Marital Status and Decision Making Factors 56 Table 4.39 Relationship between Educational Background and Decision Making Factors 57 Table 4.40 Relationship between Occupation and Decision Making Factors 58 Table 4.41 Relationship between Working Position and Decision Making Factors 59 Table 4.42 Relationship between Salary and Decision Making Factors 60 Table 4.43 Relationship between Car Wash Service Program that always used and Decision Making Factors 61 Table 4.44 Relationship between Price and Decision Making Factors 62 Table 4.45 Relationship between Membership and Decision Making Factors 63 Table 4.46 Relationship between Guarantee Policy and Decision Making Factors 64 Table 4.47 Relationship between Guarantee is better or not and Decision Making Factors 65 Table 4.48 Relationship between Yearly Member and Decision Making Factors 66 Table 4.49 Relationship between regularly place and Decision Making Factors 67 Table 4.50 Revenues Forecast from 2008 to Table 4.51 Total Washing Unit Cost 69 Table 4.52 Total Waxing Unit Cost 69 Table 4.53 Income Forecast from 2008 to Table 4.54 Cash Flow Forecast from 2008 to Table 4.55 Revenues Forecast from 2013 to Table 4.56 Income Forecast from 2013 to Table 4.57 Cash Flow Forecast from 2013 to Table 4.58 Number of Employees in each Department 74 Table 4.59 Number of Employees in each Department after Expansion 74 viii

12 Chapter 1 Introduction 1.1 Research Background At present, Bangkok is one of the most dynamic communities in the world which approximately 6 million people are living in ( Number of population, 2006) and most of them are middle incomes group of people (According to National Housing Authority, average salary of people who are living in Bangkok in 2004 is 28,135 baht) who have more purchasing power and want entertaining services and relaxation at the same time. In the meantime, car has become a part of their lives as well as a fifth factor for these groups of people who have needs and wants continuously as the number of personal car registered in Bangkok has increased from 1,526,417 in 2004 to 1,691,544 and 1,867,902 in 2005 and 2006 respectively ( Number of personal car, 2007). The great automobile has made the aftermarket what it is today, and along with the times and technology advancements that came tumbling along with it, business in this field has become far more competitive. The automobile aftermarket such as car wash and repair business hasn t stopped shifting and changing, right along with the dynamic of the automobile. With such a rapidly-changing market, this industry does not lend itself to business as usual. Those within it must keep up with all the changes and advancements. They must stay attuned to their target market, try to convince and retain most customers in order not to shift to others. Nowadays, it seems that there are no entrepreneurs can satisfy and completely dominate car wash business in Thailand seriously. Therefore, this research focused on a feasibility study of launching car wash business in Bangkok which the researcher believed that it will be useful for entrepreneurs who are interested in this business. 1

13 1.2 Research Objectives To conduct the feasibility study of launching car wash business in Bangkok 1) To identify the direction of market opportunity for car wash business in Bangkok 2) To provide database and information for entrepreneurs who are interested in this business can make a decision on investing in launching car wash business based on customers need To become successful in an extremely fierce competition in the capitalism market, entrepreneurs must have outstanding and well-defined strategies and visionary management style. This research article will mainly focus on the suggestions that will lead entrepreneurs to success not just financially but also in other aspects of management as well. 1.3 Scope of Research This research will focus on people who live in business districts, Bangkok only, not including suburban area because the researcher believes these groups of people are targeted and potential customers that might use car wash service. 1.4 Research Significance Firstly, researchers can achieve and gain more knowledge about factors that are likely to influence decision making on car wash service in Bangkok Secondly, the information about demographic factors and marketing mix factor that influence decision making on car wash service in Bangkok is useful for car wash operators to access market situation, attract customers and plan effectively marketing strategy. Thirdly, the results of this research will benefit for companies, investors or entrepreneurs who are interested in establishing car wash business in Bangkok. Finally, findings from this study could be a reference for further study in the same field of car wash and selected business. The further study could use information from this study for other research such as the impact of car wash franchise on one stop service, the expansion plan to operate new car wash systems and etc. 2

14 1.5 Conceptual Framework Independent Variable (IV) Demographic Factors - Gender - Age - Income - Occupation - Housing/Working Location - Education Background - Marital status H 1 Marketing Mix Factors - Products or Services - Price - Place - Promotion H 2 H 3 Dependent Variable (DV) Factors that influence decision making on using car wash service in Bangkok - Quality of the wash - Service fees - Convenience - Speed of services - Scratch protection - Safety - Environmental Safety - Services of employees - Satisfaction 1.6 Hypotheses Hypothesis 1: There is no significance difference between demographic factors and marketing mix factors Hypothesis 2: There is no significance difference between demographic factors and factors that influence decision making on using car wash service in Bangkok 3

15 Hypothesis 3: There is no significance difference between marketing mix factors and factors that influence decision making on using car wash service in Bangkok 1.7 Definitions of Terms Self-Service Wash: A wash where the customer performs all the labor. Generally, the customer drives into a bay and washes the car by means of a high pressure hose and a foaming brush ( Car wash glossary, n.d.). Full-Service Wash: A conveyorized or tunnel wash that provides a complete wash, vacuuming and drying, usually by hand ( Car wash glossary, n.d.). Exterior Wash: Carwash service that includes only a cleaning of the outside of the car. Often this refers to an unattended wash, where no detailing services are offered ( Car wash glossary, n.d.). Wash Material: Industry term for cloth used for cleaning in a friction wash ( Car wash glossary, n.d.). Water Hardness: Soluble metal salts, (principally those of calcium and magnesium, and sometimes iron and manganese) that when present in water in sufficient amounts create cleaning problems. These metal salts remain on a vehicle after the water evaporates leaving white spots ( Car wash glossary, n.d.). 4

16 Chapter 2 Literature Review This chapter consists of the point of view of Concept Framework why the researcher thinks to run the car wash business and what is the origin of Car wash. Moreover, the researcher takes the important Marketing Theory to apply the opportunity to run business for maximize success. Concepts, theories, and previous researches relating to the present study including: 1) Marketing Mix 2) Service Marketing 3) Consumer buying decision processes 4) Previous researches 2.1 Marketing Mix McCarthy (1996) mentioned that marketing mix is the external factor that influence on buyers purchasing decision. It consists of a set of controllable tactical marketing tools such as product, price, place and promotion that the firm uses to produce the response it wants in the target market. Zikmund (1996) stated that marketing stimulus is the specific combination of interrelated and independent marketing activities in which an organization engages to meet the objective. The basic elements of the marketing stimulus are product, place, price, and promotion, which also called controllable variables of marketing. Kotler (2000) stated that on the left, marketing stimuli consist of 4Ps, Product, Price, Place, and Promotion. Other stimuli include major forces and events in the buyer s environment- economic, technological, political and cultural. All stimuli enter the buyer s black box, where they are turned into a set of observable buyer response shown on the right-product choice, brand choice, dealer choice, purchase timing and purchase amount. Model of buyer behavior is shown in figure 2.1: 5

17 Marketing Stimulus Other Stimulus Buyer s Characteristic Buyer Decision Process Buyer s Decision - Product - Price - Place - Promotion - Economic - Technological - Political - Cultural - Cultural - Social - Personal - Psychological - Problem recognition - Information search - Evaluation of alternatives - Purchase Decision - Postpurchase behavior - Product choice - Brand choice - Dealer choice - Purchase timing - Purchase amount Figure 2.1 Model of Buyer Behavior Source: Kotler (2000) The marketer must understand how the stimuli are changed into responses inside the consumer s black box. The black box has two parts. First, the buyer s characteristics influence how he or she perceives and reacts to the stimuli. Second, the buyer s decision process itself affects outcomes. Kotler (1997) suggested marketing stimulus is product, price, place and promotion-components involved with the model of buyer behavior-influence on the buyer s consciousness, which related to buyer s purchase decision. Kotler (2000) also mentioned that marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market. It is the communication of these elements that meets customer needs and provides customer value; the particular marketing variables under study are shown in Figure 2.2 6

18 Marketing Stimulus Product Price Place Promotion Product Variety Quality Design Features Brand Name Package Sizes Service Warranties Returns List Price Discount Allowances Payment Period Credit Term Channels Coverage Assortment Location Inventory Transport Sale Promotion Advertising Sales Force Public Relation Direct Marketing Figure 2.2 The Four Ps Components of the Marketing Stimulus Source: Kotler (2000) Product. Zikmund (1996) suggested that it is a good, service, or idea that offers a bundle of tangible and intangible attributes to satisfy customers. (Hawkins and Kenneth, 1998) mentioned that product is the element of the marketing mix that represents the basic offering being made to consumers. Schaffner. Schroder R.,and Earle D.Mary (1998) mentioned that consumers identify the product characteristics as important to them in buying and using the product. Kotler (2000), said that "Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. In includes physical objects, services, persons, places, organizations and ideas." Kotler (2003) stated that product can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. The product has many attributes. These attributes of product include quality, features, styling options, brand name, packaging, size, services, warranties and returns. As mentioned by Zikmund (1996), the product is anything that a customer acquires or might acquire to meet a perceived need. 7

19 Product Varieties: Kotler (2003) mentioned that product variety is the assortment breadth or the number of the product lines provided by seller. Normally customer prefers a grater assortment because more choice provides and increases the chance of finding what they need. Quality: McCarthy (1996) mentioned that it is a product s ability to satisfy a consumer s need or requirements. Kotler (2003) stated that product quality is the ability of a product to perform its functions; it includes the product s overall durability, reliability, precision, ease of operation and repair; and other valued attributes. Design: As mentioned by Kotler (2003) the design is the heart of the product, good design contributes to the product s usefulness as well as its looks. Feature: Kotler (2003) mentioned that product can be offered with variations of each product in the mix in terms of colors, size, or models offered within each product line. These features are competitive tool for differentiating the company s product from competitors products. Brand: A name, term, sign, symbol, design, or combination of these, intended to identify the goods, or services of one seller or group of sellers and differentiate them from those competitor is called brand, mentioned by Kotler (2003) Packaging: Chee and Harris (1993) stated that packaging can influence consumer s attitude toward the product. For the consumer goods, the packaging must give the product competitive edge. The customer s first exposure to the product is package. Berkowitz (1994) mentioned that packaging is a component of the product refers to any container in which it is offered for sale and on which information is communicated. Kotler (2003) argued that packaging of designing and producing the container or wrapper for a product. Innovative packaging can give a company an advantage over competitors. Size: The Company can introduce additional package sizes to the market under the same brand name for line extensions (Kotler, 2003). Product Support Services: Mentioned by Kotler (2003), the product support service is the augment actual products such as Internet and modern technology. The product support services will be focused on service industries. No less important are product-bases industries that must provide a service bundle. All manufacturers of equipment have to provide product support services to the customers and can charge for it. 8

20 Warranties and Return: Chee and Harris (1993) stated that the important factor of many products is the warranty. The manufacturers or service provider will replace or refund or refund the product s purchase s price, if it is proves defective during a specified time period. McCarthy (1996) stated that it is what the seller promises about its product. Kotler (2003) also mentioned that the Company can sell the product or service by adding warranty and return for supporting the consumer in order to making a buying decision. Seller provides free maintenance and repair service for specified period of time at a specified contract price Price. Zikmund (1996) stated that price is amount of money or other consideration that is something of value given in exchange for a product. (Hawkins and Kenneth, 1998) mentioned that price refers to the perceived value of goods and service measured in some medium of exchange. Price refers to the cost of acquiring the products / services in the eyes of customers. The different perception in products / service quality leads to different identifying price. Consumers are often prepared to pay a premium price for something that fits their needs better than the product they currently use. E. Jerome McCarthy (1999) mentioned that price is amount of money that is charged for something of value. Kotler (1999) said "The amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service." Kotler (2000) mentioned that price refers to the perceived value of goods and service measured in some medium of exchange. Hawkins et.al (2001) stated that price is the amount of money one must pay to obtain the right to use the product. List price: Hawkins and Kenneth (1998) The price of the product that the sellers are willing to sell to the consumers. When setting prices, the marketer needs to in line with what the customer is prepared to pay or reasonably expects to pay; this bears no relation to the firm s costs in manufacturing the product. Food price is also a factor that influences consumer income. McCarthy (1999) stated that list prices are the prices final customers or users are normally asked to pay for products. 9

21 Discount: McCarthy (1999) stated that it is a reduction from the list price given by a seller to buyers who either give up some marketing function or provide the function themselves. It is a price reduction to buyers who pay their bill promptly. Kotler (2003) also mention that price is a straight reduction in price on purchases during a stated period of time. Allowance: Berkowitz (1994) mentioned that allowance is the reductions from list or quoted price to buyers for performing some activity. Kotler (2003) stated that allowance is the promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer s products in some way. Payment Period: It is the duration that the consumers who are retailers or wholesalers have to pay money for the product to the seller according to the agreement of parties such as weekly, monthly, quarterly and etc. It s mostly used in B2B business. As Kotler (2003) argued that the customers mostly prefer longer payment period with lower monthly payment for purchasing the product. Credit Term: The term of credit can also affect the total cost of credit transaction in B2B business. Kotler (2003) mention that it is one of the sale conditions for buying products. Credit is a trust or promise to buy now and pay later under designated terms for goods or services (Source from Equifax learning Center) Place. Zikmund (1996) suggested that place is an element of the marketing mix involving all aspects of getting products to the consumer in the right location at the right time. Kotler (1997) mentioned that place is another key marketing-stimuli tool and stands for the various activities the company undertakes to make the product accessibility and variable to get the target customer. Kotler (1999) said that all the company activities that make the product or service available to target customers. Kotler (2000) also stated that place includes the various activities the company undertakes to make the product accessible and available to target customer. Distribution Channels: Zikmund (1996) mentioned that it is the complete sequence of marketing organization involved in bringing a product from the producer to the consumer. The channel of distribution often includes such intermediaries as wholesalers and retailers. McCarthy (1996), it is any series of firm or individual who participate in the flow of products from producer to final user or consumers. Kotler 10

22 (2003) mentioned that a set of independent organizations involved in the process of marketing a product or service available for use or consumption by the consumer or business user. Coverage: To cover the market, the companies have to decide on the number of intermediaries. The exclusive distribution will limit the number of the intermediaries, but selective distribution will use more than a few and less than all of the intermediaries, where as intensive distribution will placing goods as many as possible. (Kotler, 2003) Assortment: Kotler (2003) also mentioned that place assortment is the arrangement method by classifying and arranging the products into group according to the size, taste, and etc at that place. The customer can find the product easily by good place assortment. Locations: As mentioned by Kotler (2003) Location is the critical factors in retailing success and key to its ability to attract customers. Inventory: McCarthy (1996) stated that inventory is amount of goods being stored. The Company should balance the level of inventory with the customer orderfulfillment standard by doing Justin time (JIT). Sales people would like the company to carry enough stock to fill all customer orders immediately. (Kotler, 2003) Transport: McCarthy (1996) mentioned that transporting is the marketing function of moving goods. Marketers need to concern transportation. It is the process in shipping goods to the warehouses, dealers, and customers. Kotler (2003) stated that transportation affects the pricing in shipping products to the consumers. On-time delivery performance and the condition of goods when they arrive can affect the customer satisfaction Promotion. Zikmund (1996) state that it is all form of marketing communication or the means by which marketers talk to existing customers and potential buyers. Promotion may convey a message about the organization, a product, or some other element of the marketing mix. Shimp (1997) mentioned that sales promotion consists of all marketing activities that attempt to stimulate quick buyer action or immediate sales of a product. Promotion is about communicating with the consumer and about persuading people to try our products and is often very much concerned with attitude change. Because attitudes are learned, promotional activities can offer new 11

23 information to the consumer. Although the consumer s knowledge of the product is based on experience can be vicarious rather than personal. Kotler (1999) said that activities that communicate the product or service and its merits to target customers and persuade them to buy. Sales promotion: McCarthy (1996) stated that sales promotion is activities that stimulate interest, trial, purchase, by final customer or others in the channel which can involve use of coupon, point-of-purchase material, samples, signs, catalogs, novelties, or circulars. It is short-term incentives to encourage purchase or sale of a product or service. Kotler (2000) mentioned that sales promotion consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker and/or greater purchase of particular products/services by consumers or the trade companies use sales promotion tools to draw a stronger and quicker buyer response, Sales promotion can be use for short-run effects such as to dramatize product offers and boost sagging sales. Advertising: Any paid form of non-personal presentation and promotion of ideas, goods or service by an identified sponsor. Pelsmacker et.al (2001) defined advertising as non-personal mass communication using mass media such as TV, radio, newspapers, magazines, billboard and etc) the content of which is determined and paid by a clearly identified sender-the company. Personal Selling: McCarthy (1996) stated that personal selling involves direct spoken communication between seller and potential customer. It s usually happens face-to-face or telephone in sometime at expensive cost. Kotler (2000) mentioned that personal selling is face-to-face interaction with one or more prospective purchases for the purpose of making presentations, answering questions, and procuring orders. Pelsmacker et al. (2001) stated that personal selling is the oral presentation and/or demonstration of one or more salespersons aimed at selling the product or service or a company. It is a personal contact between a company representative and a prospect or client. Public relations: It is used for public purpose. Kotler (2000) stated that public relations are a variety of programs designed to promote or protect company s image or its individual products. Kotler (2003) also mentioned that public relation is the way to build good relations with the company s various publics by obtaining favorable 12

24 publicity, building up a good corporation image, and handling or heading off unfavorable rumors, stories and events. Direct Marketing: It is non-public and non-store selling. As mentioned by Kotler (2003), direct marketing is a direct communications with carefully targeted individual consumers to obtain an immediate response and cultivate lasting customer relationships by using telephone, , Internet, and other tools to communicate directly with specific consumers. The table 2.1 shows the operational components of the independent or influencing variables. 2.2 Service Marketing Service Marketing is marketing based on relationship and value. It may be used to market a service or a product. Marketing a service-base business is different from marketing a product-base business. There are several major differences, including: 1) The buyer purchases are intangible 2) The service may be based on the reputation of a single person 3) It's more difficult to compare the quality of similar services 4) The buyer cannot return the service 5) Service Marketing mix adds 3 more p's, i.e. people, physical environment, and process. When one markets a service business, one must keep in mind that reputation, value, delivery of "Managing the evidence" refers to the act of informing customers that the service encounter has been performed successfully. It is best done in subtle ways like providing examples or descriptions of good and poor service that can be used as a basis of comparison. The underlying rationale is that a customer might not appreciate the full worth of the service if they do not have a good benchmark for comparisons. However, it is worth remembering that many of the concepts, as well as many of the specific techniques, will work equally well whether they are directed at products or services. In particular, developing a marketing strategy is much the same for products and services, in that it involves selecting target markets and formulating a marketing mix. Thus, Theodore Levitt suggested that "instead of talking of 'goods' and of 'services', it is better to talk of 'tangibles' and 'intangibles'. Levitt also went on to suggest that marketing a physical product is often more concerned with intangible 13

25 aspects (frequently the `product service' elements of the total package) than with its physical properties. Charles Revson made a famous comment regarding the business of Revlon Inc.: `In the factory we make cosmetics. In the store we sell hope.' Arguably, service industry marketing merely approaches the problems from the opposite end of the same spectrum. 2.3 Consumer Buying Decision Processes Buyer decision processes are the decision making processes undertaken by consumers in regards to a potential market transaction before, during, and after the purchase of a product or service. More generally, decision making is the cognitive process of selecting a course of action from among multiple alternatives. Common examples include shopping, deciding what to eat. Decision making is said to be a psychological construct. This means that although we can never "see" a decision, we can infer from observable behavior that a decision has been made. Therefore we conclude that a psychological event that we call "decision making" has occurred. It is a construction that imputes commitment to action. That is, based on observable actions, we assume that people have made a commitment to effect the action. In general there are three ways of analysing consumer buying decisions. They are: Economic models: These models are largely quantitative and are based on the assumptions of rationality and near perfect knowledge. The consumer is seen to maximize their utility. See consumer theory. Game theory can also be used in some circumstances. Psychological models: These models concentrate on psychological and cognitive processes such as motivation and need reduction. They are qualitative rather than quantitative and build on sociological factors like cultural influences and family influences. Consumer behavior models: These are practical models used by marketers. They typically blend both economic and psychological models. 14

26 2.3.1 The consumer decision process model. This model breaks down the consumer decision process into seven basic decisions that have to be taken during the purchase process:- Need Recognition Search for Information Pre-purchase Evaluation of Alternatives Purchase and Consumption Post-Consumption Evaluation Divestment In themselves each of these decisions are almost self explanatory and we can easily identify with them and relate them to our own purchase experiences. However, when we come to generalize this model we need to consider the factors that influence each of the stages in the process. 1) Need recognition This is influenced by three factors: Environmental Influences Individual Differences and Memory So clearly this initial stage is strongly influenced by the specific situation, the individual and their past experience, however this can be influenced by marketing activity, if for example past experience of purchasing a product has been positive, perhaps a strong, positive image of a product or brand has been made in the buyers memory and the purchase environment has been made conducive to a specific purchase. 2) Search For Information Again this can be more complex, firstly the search process is both an internal and an external process. If the purchase situation is a familiar one, the purchaser s memory might satisfactorily provide the information needed. The level of information required to the involvement, experience and level of perceived risk - so even if there has been a significant degree of past experience if there is a high degree of involvement or risk the purchase will require an external search for information. 15

27 3) Pre-purchase evaluation of alternatives Once the information is brought together the purchaser will make their decision - this is the result of their individual characteristics. This might be a simple process or a complex process, a logical or an emotional purchase or the result of a simplification. Where complex information requires processing often a heuristic or simple rational is used. This might be to base the purchase on a single feature or benefit that will be used as a surrogate for quality or low risk, or the choice reduced to one of brand. 4) Purchase and Consumption These are highly individual aspects - but in some purchases they are extremely important, particularly in the way they influence future purchase behavior. For example services such as they are actually produced at the time of consumption. 5) Post-consumption evaluation After consumption the purchaser will both consciously or unconsciously evaluate and decide if the result of purchase process was satisfaction or dissatisfaction. This feeds back into the future purchase behavior either stimulating a more complex behavior in the future due to an increased level of perceived risk or as a simplification of the behavior as the purchaser will have learnt by a positive reinforcement. 6) Divestment Finally a consumer will need to consider how they will divest themselves of the purchase. The resale value of high ticket items is an important factor in the purchase decision. Increasingly ecological factors also effect purchase decisions - will the item be recycled? As with all models of human behavior this model provides a framework for analysis that can influence marketing decisions or explain problems that might arise in the purchase process. Models are far less in predicting what will happen, how consumers will react. 16

28 Figure 2.3 How consumers Make Decisions for Goods and Services Source: Variables that shape the decision process. Consumer decision making is influenced and shaped by many factors and determinants that fall into these three categories: (1) individual differences, (2) environmental influences, and (3) psychological process. A summary of these variables follows, but each is covered in depth in later part, with Part a. focusing on individual differences, Part b. on environmental influences, and Part c. on influencing consumer behavior. 1) Individual differences Five major categories of individual differences affect behavior: (1) demographics, values and personality, (2) consumer resources, (3) motivation, (4) knowledge, and (5) attitudes. Demographics, psychographics, values, and personality: How people differ affects decision process and buying behavior. These variables include what has come to be known as psychographic research to probe 17

29 into those individual traits, values, beliefs, and preferred behavior patterns that correlate with behavior in market segments. Consumer resources: Each person brings three primary resources into every decision-making situation: (1) time, (2) money, and (3) information reception and processing capability of each, thus requiring some careful allocation. Motivation: Psychologists and marketers alike have conducted a wide variety of studies to determine what takes place when goal-directed behavior is energized and activated. Knowledge: It encompasses a vast array of items such as the availability and characteristics of products and services; where and when to buy; and how to use products. One main goal of advertising and selling is to provide relevant knowledge and information to consumers so as to assist them with decision making, especially in extended problem solving. Attitude: Behavior is strongly influenced by attitudes toward a given brand or product. Attitudes are simply an overall evaluation of an alternative role on future choice and are difficult to change. 2) Environmental influences Consumers live in a complex environment. In addition to individual variables, their decision process behavior is influenced by environmental factors, including (1) culture, (2) social class, (3) family, (4) personal influence, and (5) situation. Culture: Culture, as used in the study of consumer behavior, refers to the values, ideas, artifacts, and other meaningful symbols that help individuals communicate, interpret, and evaluate as members of society. Social class: Social classes are divisions within society that comprise individuals sharing similar values, interests, and behaviors. Family: Since the field of consumer research was founded, the family has been a focus of research. The family is the primary decision-making unit, with a complex and varying pattern of roles and functions. Personal influences: As consumers, our behavior are often affected by those with whom we closely associate. Consumer often respond to 18

30 perceived pressure to conform to the norms and expectations provided by others seeking and talking their counsel on buying choices, observing what others are doing as information about consumption choices, and comparing their decisions to those of others. Situation: Behavior change as situation change. Sometimes these changes are erratic and unpredictable, such as a job layoff, and at other times, they can be predicted by research. Situation is treated as a research variable in its own right. 3) Psychological process influencing consumer behavior Finally, those who wish to understand and influence consumer behavior must have a practical grasp of three basic psychological processes: (1) information processing, (2) learning, and (3) attitude and behavior change. 2.4 Previous Researches International Carwash Association identified and detailed variables that influence costs and profitability in doing car wash business. They indicated that there were plenty of details for entrepreneurs to pay attention to, including what type of car wash machine to install, whether to purchase or lease that equipment, how many washes a month to aim for, and how to set prices to ensure profit without driving away valuable customers. They investigated that one of many factors that make business succeed for any site is the number of vehicles it washes on a yearly basis. According to their study in 2002, the average number of vehicles washed at respondents' car washes of all types in Chicago, USA was 84,586. They found that self-service sites had the highest average number of washes, 92,093; conveyor sites placed second with an average 82,019; and in-bay automatics ranked third, with an average 54,184 washes. They also found that annual revenues of operators differed dramatically, depending on equipment type. Operators in the conveyor segment reported the highest annual average operating income per site: $1.7 million while the second and the third were self-service operators, who reported average operating income of $314,029 and in-bay automatic operators with the average of $208,038 only. ICA recorded wide divergences by wash segment. The average wash price for all conveyor operations was $8.43 while in-bay automatic operations, the average minimum was $4.53; the average maximum, $8. At self-service operations, the 19

31 average price of a wash was $1.71; in the sub-segment of self-service operations with a secondary business, however, the average price was a bit more: $2.39 and it also noted that self-service prices were highest on average in suburban areas at self-serves with secondary businesses (as cited in Bennett, 2004). Vaubel indicated that price hikes at car washes may be driven by a mix of factors or by a single factor that's having a huge impact on costs such as water rates and water quality. He also found that altering pricing structure by reducing the number of wash offerings can bolster the margins. He insisted that even though the company's wash businesses might lose some customers who were resistant to the change, it didn t have a negative effect on the overall business (as cited in Bennett, 2004). Vercollone indicated that the quality of the car washes has been a boon for the convenience store and petroleum industry. New technology in brushes, conveyors and chemicals has lifted the entire industry to the point where it should be deciding just how much of a margin to make on a wash and not what kind of a discount to offer to attract business. He also found that customers get their cars washed when their car is dirty. So, the best strategy is to go after them with the best wash possible and insisted that you can not create a very stable foundation to grow the business if you're counting on building sales with an inferior wash, offering discounts and couponing. He found out that for most Americans, their car is the most expensive purchase they'll ever make besides a house, so they want to take good care of it. The wash has to emphasize quality-that is ultimately what earns their trust and brings them back. Willkomm also agreed with Vercollone and indicated that the quality has to be there first and foremost. He also convinced that price isn't even in the top three considerations when it comes to choosing a wash, but it's not just the one-time customer looks after. It's getting them again and again where you see real profits. Willkomm insisted that offering a quality package takes teamwork, but it also requires a lot of homework to make sure you have the support to satisfy your customers. "At the end of the day, it's your name on the sign and that's all customers are going to remember when they leave the store. Make sure they always walk away satisfied" (as cited in Lofstock, 2007). Gregorie indicated that advances in technology made it possible for car wash operators to get vehicles cleaner, to boost customer services and increase throughput, reduce labor and operating costs, and charge consumers more. However, he found out 20

32 that these same advances also prompted more competitors to enter the car wash business, including private investors and hypermarket retailers. Dollhopf and Campbell also agreed with Gregorie as Dollhopf stated that some hypermarket chains wanted to offer a discounted car wash and others wanted to provide their customers with one-stop convenience while Campbell noted that hypermarkets started to dabble in car washes because advancing technology made the business easier and more profitable (as cited in Warren, 2005). Cole stated that some car wash staff concerned how customers feel about the company's services and its long-term role in the community. They looked for every opportunity to demonstrate concern for customers. He also noted some lessons from the car-wash chain that might apply to other businesses as well in the following (as cited in Johnston, 1994): Pay attention to the details. Just as the hospitality industry wants travelers to feel pampered, the car wash service operators want customers to view the car-wash service as a positive experience. The first clues to this service philosophy: flower beds decorate the entrance to the wash, neatly groomed employees greet customers courteously, and car owners receive little treats such as peanuts as they enter the cleaning tunnel. Inside, the cars are cleaned by an equipment system that is configured for the most effective treatment possible. Meanwhile, any kids on board may be delighted to see cartoon characters like Garfield or Bart Simpson mounted on poles inside the tunnel. These familiar characters are intended to calm kids who are frightened when the washing machine descends on their family car -- and thus allow their parents to relax. Once drivers emerge from the wash, they can go to a waiting room and get free coffee if they want the insides of their cars cleaned. Some customers -- depending on the make of their car and the level of service they've chosen -- have their wheels cleaned with a toothbrush. Others can go to the "satisfaction center," a final service checkpoint, for any extra attention they feel the car needs. The goal is to make sure customers feel well taken care of when they drive out of the lot. Know the customer. The marketing and service programs rely heavily on the tracking of customers' buying habits. The company should use a 21

33 computer database to track the frequency of these customers' visits and the services purchased. Each time a member visits, an employee scans a barcode sticker that's located on the vehicle's window and logs information into the database. Behind the scenes, the company analyzes the vehicle histories, along with other sales and profit data, to track buying habits and identify sales opportunities. To punch up its relatively slow business in the evening hours, for example, the company could introduce a "night wash" special with a $1 savings and doubled its volume. And if a review of the data shows that certain club members haven't been to the store for a while, the company sends out a "We miss you letter" to invite them back. Employees could use the histories to suggest service upgrades. If a customer usually gets a regular wash, for example, a sales advisor might recommend an undercarriage wash if the car has been coated by heavily salted roads. However, the company should caution employees to suggest only those services appropriate to the vehicle and the customer. The pointof-sale histories help guide the sales advisor to the customer's buying preferences. Mine new prospects. The company should always look for new prospects, using both mass-market means (such as radio jingles) and more targeted approaches to draw them in. New car buyers are obvious prospects, so it will be useful if the company can work with local car dealers to distribute 30-day passes for free washes to their customers. To reach new home buyers, another target group, it can use an outside service to generate names from property-transfer records, and then sends them coupons for its services. Fix the problems. If a customer believes the car wash has damaged his or her car in any way, the manager can spend up to $150 in labor or merchandise to fix the problem, no questions asked. Even if the company is not at fault, it didn't want customers driving away with a sour memory. When one customer's tire began to leak, for example, an employee spotted it, helped the customer change the tire and got the leaky one repaired. After a problem is fixed, the company should send the customer "a little warm fuzzy" of flowers, cookies or candy. It also backs up its work with 22

34 guarantees. Customers who purchase the basic wash can get a rewash if they're not satisfied, while club members are entitled to some added protection. In exchange for these customers' loyalty and investment, the company can offer them a free replacement wash if it rains or snows within 24 hours after they've left the lot. With some of the more expensive treatments, customers are guaranteed a clean car for three days. If the driver goes through a puddle or parks under a flock of pigeons, the company will wash the car again for free. This guarantee is particularly important. The benefit of such guarantees helps a company stay competitive by acknowledging that a bad service experience eats away at a customer's good will. Of course, this forces a company to determine what services it can afford to guarantee and to improve operations so that mistakes are the exception. But the cost of fulfilling guarantees should be viewed as a marketing investment and a second chance to make a good impression, not as a loss. Monitor customer satisfaction. The company could use a variety of feedback mechanisms to evaluate the quality of their service at each location. These include comment cards available to all customers and special reports which the managers personally ask some drivers to fill out each month. In addition, it can add a new service questionnaire for customers getting the insides of their cars cleaned. This feedback mechanism allows the company to make sure its inside-cleaning service is as detailed as customers expect. These forms give enough feedback to rate overall customer satisfaction and calculate it on an index ranging to 100. To supplement its own research, the company also employs an outside firm to send people through the car wash and generate professional "shoppers reports" on their experiences. Use training and incentives to ensure good service. If you want highquality service, then get the message across with your hiring, training and pay practices. The company might try to set itself apart from competitors by hiring well-groomed employees, for example. Once hired, employees go through various training modules in a classroom setting -- an unusual practice in the car-wash business -- to make sure service will be consistent 23

35 from location to location. New employees also must meet the approval of their coworkers, since the staff at each location is viewed as a team with its own sales and expense goals to meet. Indeed, up to half of employees' pay is tied to such goals; the incentive-pay proportion for each individual varies according to the sales and management content of his or her job. (Managers' incentive pay is more heavily weighted toward incentives than that of employees who vacuum the cars.) The teams also compete for contest awards, based on specific sales goals and their satisfaction ratings from customer feedback mechanisms. Finally, several employees from each location join an improvement team that meets regularly to discuss new ways to enhance customer service. Demonstrate respect for the community. One of the subtler ways the company can impress customers is by being a good neighbor. In these days of environmental awareness, it should reclaims\ some of the water used and treats the dirt that's eliminated for recycling as fill. The company should donate money from a portion of its sales over a three-day period to nearby homeless shelters that uses the cash to buy winter clothes for its young clients. 24

36 Chapter 3 Research Methodology 3.1 Introduction In order to examine factors that influence decision making on car wash service in Bangkok, a study is designed to be a survey research using constructed survey questionnaire to collect data from the car owners who are currently own a car and live in Bangkok, Thailand. The purpose of this study is to identify the demographic factors and marketing mix factors on factors that influence decision making on using car wash service in Bangkok. The researcher analyzes data variables using percentage, frequency, mean, standard deviation, and One-way ANOVA to test hypotheses and answer research questions. In addition, this study will employ SWOT Analysis and BCG Matrix to analyze the market overview and competitive situation of the current business and its environments. 3.2 Population and Sample Size Population of this study are car owners who are currently own a car and live in Bangkok. According to data of Department of Land Transport, there are 1,867,902 in number of personal car registered in the end of 2006 (DLT,2007). The target group of this study are the car owners who currently own a car and live in Bangkok. The sample group participated in this study will be calculated by using YAMANE equation (Yamane, 1967) as follows; n = N / 1+ N(e) 2 Remark: n = Sample size N = 1,867,902 E = Significant level (0.05) From equation, the sample size can be calculated as follows; n = 1,867,902 / 1+ 1,867,902 (0.05) 2 =

37 Therefore, the sample size for this study will be 400 samples of the car owners who are currently own a car and live in Bangkok. 3.3 Data Collecting Method The researcher used questionnaires and interview as the instrument to survey opinions about marketing mix factors; products or services, price, place and promotion and factors that have importance on using car wash services; quality of the wash, service fees, convenience, speed of services, scratch protection, safety, environmental safety, services of employees and satisfaction. The questionnaires are distributed to the car owners who are currently own a car and live in Bangkok. The researcher conducts the questionnaire by himself and one assistant during January Research Design Due to this study will be survey research, the questionnaire will be employed as data collecting method to obtain data from 400 samples of the car owners who are currently own a car and live in Bangkok. The questionnaire will be distributed to respondents for a face-to-face interview by field workers in January Part 1 Questionnaire will be contained about demographic data of respondent namely gender, age, income, occupation, education background and marital status. Part 2 Questionnaire will be contained about using car wash service behavior such as using car wash service frequencies, car wash service program selected, spending budget, membership, media persuasion, and additional services expected. Part 3 Questionnaire will be contained about decision making on using car wash service in Bangkok. Furthermore, the researcher will apply summated rating method of Renis Likert in questionnaire development process because this method is simple to administer (Zikmund, 2003). With the Likert scale, respondents will indicate their information that are asked by the researcher by checking how much important they think with carefully constructed statements. Respondents will choose from five alternatives which are very important, important, moderately important, slightly important, and not important at all. To measure the information value, the researcher 26

38 will assign scores or weights to the alternative responses such as 5,4,3,2,1 will be assigned to the answers. In positive statements, very important will be weighted of the highest value, 5, but in negative items the weights will be reversed and not important at all will be assigned the weights of Data Collecting Procedure This study the researcher is planning to complete within 5 months by following arrangement: Proposal writing; the researcher will write the research proposal to present the project committee in November Proposal or topic defensive presentation; the researcher will present project proposal to committee by using Powerpoint program and elaborating topic background, objectives of study, and etc. within 2 weeks of December Literature review and building data collecting instrument; after proposal approved the researcher will review and write about involved theories, past researches then the researcher will construct data collecting instrument, questionnaire, according to reviewed literature ad also pre-testing questionnaire by December Data collection; in January 2007, after questionnaire has relied the research will collect data by distributing questionnaire to the car owners who are currently own a car and live in Bangkok. This process will be conducted by the researcher and one assistant. Data analysis; Completion of collected data will be brought to analyze by using SPSS for windows software according to statistical methods and then analyzed data output will be wrote in the chapter of research result by February Final research writing and oral examination or project defense; the researcher will conclude all sound results and write on the final chapter including make both recommendations for future research and related professionals in March

39 3.6 Data Analysis The researcher analyzes data variables using SPSS program to compute for the results. The outputs of the program have been presented in Chapter five and the result of respondents would be presented as follows; Descriptive statistics will be used with demographic variables. The researcher will take collected data to analyze by using Frequency, Percentage, Central tendency (the mean, the median, and the mode), Standard deviation, and then present the results in form of tabulation. Inferential statistics will be used to compare relationship between data variables at significant level 0.05., and testing hypotheses by using Oneway ANOVA. The Variables Measurement The researcher defines the criteria to measure level of variable according to the separate of five levels following Likert s scale. Table 3 Width of Class Interval Not Important Slightly Moderately Important Very at all Unimportant Important Important (1) (2) (3) (4) (5) Very Important = 5 Important = 4 Moderately Important = 3 Slightly Unimportant = 2 Not Important at all = 1 28

40 Chapter 4 Research Findings and Analysis This chapter presents the data analyzed based on the 400 questionnaires. The obtained data were input in computer and used software SPSS version 13.0 to compute for the results. The results were classified into four sections including demographic data of respondents, using car wash service behavior pattern, decision making on using car wash service in Bangkok, and hypothesis testing results. In the last of this chapter, the researcher will discuss about financial analysis, people management and competitive analysis that the researcher believes that it might be useful for entrepreneurs who are interested in this business. 4.1 Demographic Characteristics of Respondents Base on part 1 of the questionnaire, the personal information of the sampling group of the study is demographic characteristics as summarized in the following figures. Table 4.1 Respondents Demographic Data Classified by Gender Gender Frequency Percent Male Female Total The results from Table 4.1 illustrated that the majority of respondents are nearly equal between male and female which are 51.8 % and 48.3 % respectively. 29

41 Table 4.2 Respondents Demographic Data Classified by Age Age Frequency Percent < 25 years old years old years old years old years old years old > 50 years old Total The results from Table 4.2 illustrated that the majority of respondents are 26 to 30 years old while the group that less than 25 years old, 31 to 35 years old and 36 to 40 years old are nearly equal and can be viewed as the second largest group of respondents. Table 4.3 Respondents Demographic Data Classified by Marital Status Marital status Frequency Percent Single Married Divorced Total The results from Table 4.3 revealed that up to 63.8 % of respondents are single. 30

42 Table 4.4 Respondents Demographic Data Classified by Education Education Frequency Percent Less than Bachelor Degree Bachelor Degree Master Degree More than Master Degree Total The results from Table 4.4 showed that the majority of respondents have a bachelor degree. Table 4.5 Respondents Demographic Data Classified by Occupation Occupation Frequency Percent Governmental Officer Private Employees State Enterprise Employees Entrepreneurs Soldiers/Police Housewife Retired Other Total The results from Table 4.5 showed that the majority of respondents are working in private companies. 31

43 Table 4.6 Respondents Demographic Data Classified by Working Position Working position Frequency Percent Other President Director Manager Officer Total The results from Table 4.6 revealed that the majority of respondents are working in the officer level. Table 4.7 Respondents Demographic Data Classified by Salary Salary Frequency Percent Other < 15,000 baht ,001-25,000 baht ,001-40,000 baht ,001-50,000 baht ,001-80,000 baht , ,000 baht , ,000 baht , ,000 baht Total The results from Table 4.7 revealed that the majority of respondents earn monthly incomes between 15,001 to 25,000 baht. The results from Table 4.1 to 4.7 illustrated that the majority of respondents are nearly equal between male and female. These groups of people are years old, single and hold bachelor degree level. Most of them work in private company and their working positions are officers level generally, and earn incomes between 15,001 to 25,000 baht. 32

44 4.2 Using Car Wash Service Behavior Pattern of Respondents Base on part 2 of the questionnaire, the using car wash service behavior pattern of the sampling group of the study is using car wash service frequencies, car wash service program selected, spending budget, membership, media persuasion, and additional services expected as summarized in the following figures. Table 4.8 Respondents Using Car Wash Service Behavior Pattern Classified by Regularly Using Car Wash Service Regularly using car wash service Frequency Percent Yes No Total The results from Table 4.8 showed that 86.8 % of respondents use car wash service regularly while only 13.2 % of respondents stated that they do not use car wash service regularly. Table 4.9 Respondents Using Car Wash Service Behavior Pattern Classified by Reasons for not Using Car Wash Service Reasons for not using car wash service Frequency Percent Have no time Do not need to wash the car High price Can not find the proper place Car will have scratch Can wash it by themselves Other Total The results from Table 4.9 showed that up to 77.4 % of respondents who do not use car wash service regularly because they think that they can wash their cars by themselves. 33

45 Table 4.10 Respondents Using Car Wash Service Behavior Pattern Classified by Frequency in Using Car Wash Service Frequency in using car wash service Frequency Percent Everyday More than once a week Once a week weeks Once a month month month Longer than 6 month Total The results from Table 4.10 illustrated that most of respondents who use car wash service regularly always use the service once a month. Table 4.11 Respondents Using Car Wash Service Behavior Pattern Classified by Convenient Time Convenient time Frequency Percent Total The results from Table 4.11 illustrated that most of respondents who use car wash service regularly often use the service between 3pm to 6 pm. 34

46 Table 4.12 Respondents Using Car Wash Service Behavior Pattern Classified by the Day in the Week That Uses Car Wash Regularly The day in the week that uses car wash regularly Frequency Percent Monday and Tuesday Wednesday and Thursday Friday Saturday Sunday Whatever Total The results from Table 4.12 revealed that up to 51.9 % of respondents who use car wash service regularly stated that they always use the services whenever they are free. Table 4.13 Respondents Using Car Wash Service Behavior Pattern Classified by Car Wash Service Program That Always Use Car wash service program that always use Frequency Percent Wash only Wash and wax Wash and interior detailing Was, wax and interior detailing Total The results from Table 4.13 revealed that up to 63.1 % of respondents who use car wash service regularly stated that they always choose washing program only whenever they use the services. 35

47 Table 4.14 Respondents Using Car Wash Service Behavior Pattern Classified by Spending Budget Per Time Spending budget per time Frequency Percent < 100 baht baht baht baht ,000 baht ,001-2,500 baht Total The results from Table 4.14 revealed that 46.1 % of respondents who use car wash service regularly stated that they are willing to pay 100 to 200 baht once they use the service. Table 4.15 Respondents Using Car Wash Service Behavior Pattern Classified by Membership Membership Frequency Percent Yes No Total The results from Table 4.15 revealed that up to 89.3 % of respondents who use car wash service regularly stated that they are not member of any car wash service operators. 36

48 Table 4.16 Respondents Using Car Wash Service Behavior Pattern Classified by Reasons for not being Car Wash Service Membership Reasons for not being car wash service membership Frequency Percent High price Want to try other places Cannot find regular car wash service places Do not use car wash service regularly Other Total The results from Table 4.16 illustrated that 46.5 % of respondents who use car wash service regularly stated that the primary reason why they are not member of any car wash service operators is they do not use car service regularly. Table 4.17 Respondents Using Car Wash Service Behavior Pattern Classified by Persuasion Persuasion Frequency Percent Yes No Total The results from Table 4.17 illustrated that 53 % of respondents who use car wash service regularly stated that they have never been invited by any media to be membership with car wash service operators. 37

49 Table 4.18 Respondents Using Car Wash Service Behavior Pattern Classified by Media Persuasion Media Persuasion Frequency Percent Newspapers Magazines TV Radio Billboard Brochure/Leaflet Internet Other Total The results from Table 4.18 illustrated that up to 50.9 % of respondents who have been persuaded to be membership stated that they have always been invited by brochures or leaflets to be membership with car wash service operators. Table 4.19 Respondents Using Car Wash Service Behavior Pattern Classified by Guarantee Policy Guarantee policy Frequency Percent Yes No Total The results from Table 4.19 illustrated that up to 96.8 % of respondents who use car wash service regularly stated that they would like car wash service operators to have quality guarantee policy. 38

50 Table 4.20 Respondents Using Car Wash Service Behavior Pattern Classified by Guarantee is better or not Guarantee is better or not Frequency Percent No comment Yes No Total The results from Table 4.20 illustrated that up to 94.8 % of respondents who use car wash service regularly stated that car wash service operators with quality guarantee policy will be better than car wash service who do not have that policy. Table 4.21 Respondents Using Car Wash Service Behavior Pattern Classified by Yearly Member Yearly Member Frequency Percent Other < 2,000 baht ,001-3,000 baht ,001-4,000 baht ,001-5,000 baht ,001-8,000 baht ,001-10,000 baht Total The results from Table 4.21 illustrated that up to 60.5 % of respondents who use car wash service regularly stated that they are willing to pay the yearly membership fees with limited number of services less than 2,000 baht. 39

51 Table 4.22 Respondents Using Car Wash Service Behavior Pattern Classified by Regularly Car Wash Service Place Regularly car wash service place Frequency Percent No comment or do not have regular places Gas Station Department Store Stand alone car wash service Total The results from Table 4.22 revealed that 31.1 % of respondents who use car wash service regularly stated that they regularly use the service at gas station or pump. Table 4.23 Respondents Using Car Wash Service Behavior Pattern Classified by Rationales for becoming a Member Rationales for becoming a member N SE Mode SD Location Service fees Reliability Word of mount Products Advertising Promotion Cleanness Credit or debit Employees The results from Table 4.23 revealed that most of respondents who use car wash service regularly stated that they always give their first priority when they are 40

52 choosing to be membership with car wash service operators to location while the second and the third priority are service fees, reliability and cleanness respectively. Table 4.24 Respondents Using Car Wash Service Behavior Pattern Classified by Rationales for becoming a Member for People who have been Membership already Rationales for becoming a member N SE Mode SD Location Service fees Reliability Word of mount Products Advertising Promotion Cleanness Credit or debit Employees The results from Table 4.24 revealed that most of respondents who have not been persuaded to be membership stated that they will give their first priority when they are choosing to be membership with car wash service operators to location and cleanness while the second and the third priority are service fees and reliability respectively. 41

53 Table 4.25 Respondents Using Car Wash Service Behavior Pattern Classified by Rationales for becoming a Member for People who have not been Membership yet Rationales for becoming a member N SE Mode SD Location Service fees Reliability Word of mount Products Advertising Promotion Cleanness Credit or debit Employees The results from Table 4.25 revealed that most of respondents who have been persuaded to be membership stated that they always give their first priority when they are choosing to be membership with car wash service operators to location while the second and the third priority are service fees, cleanness and reliability respectively. 42

54 Table 4.26 Respondents Using Car Wash Service Behavior Pattern Classified by Expectation from Using Car Wash Service Expectation from using car wash service Frequency Percent Advice from employees Proper time range Atmosphere Selling car care products Additional services Other Total The results from Table 4.26 revealed that up to 79.8 % of respondents who use car wash service regularly stated that they would like to receive good advice from employees. Table 4.27 Respondents Using Car Wash Service Behavior Pattern Classified by Additional Services That Car Wash Service Place might think of Additional services Frequency Percent Gas Station Waiting room High speed Internet Convenience Store Fast food Dry clean ATM Balance a wheel Transfer lubricants Other Total The results from Table 4.27 revealed that up to 76.4 % of respondents who use car wash service regularly stated that they would like car wash service operators to have a waiting room for them when they use the services. 43

55 The results from Table 4.8 to Table 4.27 illustrated that up to 86.8 percent of respondents are regularly using car wash service because of their convenience and limited of time that is very important for modern living world. The sample groups usually wash their cars once a month. Their most convenient time for using car wash service is between 3 pm and 6 pm and they will use the service whenever they are free. However, the most preferred day to use the service is weekends. Most of them will use car wash service by selecting washing program only which they are willing to pay 100 to 200 baht per one time that they use the service. Only 13.2 percent of respondents stated that they do not regularly use the car wash service because they can wash their cars by themselves. Up to 89.3 percent of the respondents who regularly use car wash service are not member of any car wash service operators primarily because they do not use car wash service regularly and they think that car wash service places charge them high service fees. Furthermore, they want to try other places to find the most appropriate car wash service places for them. 53 percent of these group stated that they are never persuaded by any media to be membership with car wash service operators. On the other hand, 47 percent of people who regularly use car wash service have been invited primarily by brochures or leaflets, billboards and internet respectively while the minority groups of people still confused with the media and said that they have been introduced to be membership by their friends and employees at the point of sales. Only 3.2 percent of these groups did not agree on the quality guarantee policy of car wash service places. However, up to 96.8 percent of them agreed that car wash service operators should have quality guarantee scheme in order to guarantee dissatisfied results. In addition, up to 94.8 percent of these groups of people agreed that car wash service operators with the quality guarantee policy are better than operators who do not have this policy. However, the minorities did not agree with this statement because they feel that if it has the quality guarantee policy, operators will wash their cars cleanly for only the short period and cannot remain the same standard every time they use the service. Furthermore, some feel that if it has this policy, operators will charge the higher service fees and they have to pay more for the service. The membership fees levels that people who regularly use car wash service are willing to pay per year with limited number of services is lesser than 2,000 baht. They always give their first priority when they are choosing to be membership with car 44

56 wash service operators to the locations while service fees is their second priority and reliability and cleanness is their third priority respectively. In addition, reasons for choosing to be membership for people who have been membership already and people who have not been membership with any car wash service operators yet are not different as both of them give their top three priorities to locations, cleanness and service fees. Up to 31.1 percent of these groups stated that they regularly use car wash service at gas station or pump such as PTT Pump, Shell Pump, Bangchak Pump, Esso Pump and etc. Up to 79.8 percent of people who regularly use car wash service would like to receive good advice from employees and they want to be taken care of very well also. Furthermore, they want car wash service places to have a perfect openingclosing time range, good atmosphere, and additional services also. Most of them would like car wash service operators to have a waiting room for them when they use car wash services. In addition, they would like to see a car wash service place together with a gas station and convenience store. 4.3 Decision Making on Using Car Wash Service in Bangkok The results from part 3 of the questionnaire, the decision making on using car wash service in Bangkok of the sampling group of the study could be analyzed, concluded, and illustrated in the following figures. Table 4.28 Decision Making on Using Car Wash Service in Bangkok of Respondents Decision making on using car wash service Mean SD Interpret Quality of the wash Very important Service fees Important Convenience Very important Speed of services Important Scratch protection Very important Safety Very important Environmental safety Important Services of employees Very important Satisfaction Very important Total Very important 45

57 Overall results from Table 14.4 conclude that respondents think that all factors are very important for decision making on using car wash service in Bangkok (mean 4.41). When consider by factor, we could summarize that quality of the wash (mean 4.82) is very important for decision making on using car wash service. Moreover, safety (mean 4.73), scratch protection (mean 4.65), and satisfaction with the works (mean 4.50), service of employees (mean 4.46), convenience to use the car wash service (mean 4.40) are very important factor also. In the meanwhile, speed of service (mean 4.18), service fees (mean 4.01), and environmental safety (mean 3.97) are considered as important factor for decision making on using car wash service. 4.4 Testing of the Hypothesis We employed One-way ANOVA statistics to test the hypothesis by testing differences between two groups of data variables as follow: 1) Hypothesis 1 There is no significance difference between demographic factors and marketing mix factors 46

58 Sub-Hypothesis 1.1: There is no significance difference between respondent s gender and marketing mix factors Ho: There is no significance difference between respondent s gender and marketing mix factors Table 4.29 Relationship between Gender and Marketing Mix Factors Gender Sum of Squares df Mean Square F Sig. Program that always use Between Groups Within Groups Total Spending budget per time Between Groups Within Groups Total Membership Between Groups Within Groups Total Persuasion Between Groups Within Groups Total Guarantee Between Groups Within Groups Total Guarantee is better or not Between Groups Within Groups Total Yearly Member Between Groups Within Groups Total Your regular car wash service place Between Groups Within Groups Total Table 4.29 illustrated that gender and all marketing mix factors Sig. is more than Therefore, we accepted null hypothesis and concluded that gender is not a key factor affected marketing mix factors. 47

59 Sub-Hypothesis 1.2: There is no significance difference between respondent s age and marketing mix factors Ho: There is no significance difference between respondent s age and marketing mix factors Table 4.30 Relationship between Age and Marketing Mix Factors Age Sum of Squares df Mean Square F Sig. Program that always use Between Groups Within Groups Total Spending budget per time Between Groups Within Groups Total Membership Between Groups Within Groups Total Persuasion Between Groups Within Groups Total Guarantee Between Groups Within Groups Total Guarantee is better or not Between Groups Within Groups Total Yearly Member Between Groups Within Groups Total Your regular car wash service place Between Groups Within Groups Total Table 4.30 illustrated that age and all marketing mix factors Sig. is more than Therefore, we accepted null hypothesis and concluded that age is not a key factor affected marketing mix factors. 48

60 Sub-Hypothesis 1.3: There is no significance difference between respondent s marital status and marketing mix factors Ho: There is no significance difference between respondent s marital status and marketing mix factors Table 4.31 Relationship between Marital Status and Marketing Mix Factors Marital status Sum of Squares df Mean Square F Sig. Program that always use Between Groups Within Groups Total Spending budget per time Between Groups Within Groups Total Membership Between Groups Within Groups Total Persuasion Between Groups Within Groups Total Guarantee Between Groups Within Groups Total Guarantee is better or not Between Groups Within Groups Total Yearly Member Between Groups Within Groups Total Your regular car wash service place Between Groups Within Groups Total Table 4.31 illustrated that marital status and all marketing mix factors Sig. is more than Therefore, we accepted null hypothesis and concluded that status is not a key factor affected marketing mix factors. 49

61 Sub-Hypothesis 1.4: There is no significance difference between respondent s educational background and marketing mix factors Ho: There is no significance difference between respondent s educational background and marketing mix factors Table 4.32 Relationship between Educational Background and Marketing Mix Factors Educational background Sum of Squares df Mean Square F Sig. Program that always use Between Groups Within Groups Total Spending budget per time Between Groups Within Groups Total Membership Between Groups Within Groups Total Persuasion Between Groups Within Groups Total Guarantee Between Groups Within Groups Total Guarantee is better or not Between Groups Within Groups Total Yearly Member Between Groups Within Groups Total Your regular car wash service place Between Groups Within Groups Total Table 4.32 illustrated that educational background and most of marketing mix factors Sig. is more than 0.05 except guarantee policy and yearly member factor Sig. which are less than Therefore, we rejected null hypothesis and concluded that educational background is a key factor affected marketing mix factors. This means people who have a bachelor degree think about guarantee policy and willing to pay yearly member different from people who have a master degree. 50

62 Sub-Hypothesis 1.5: There is no significance difference between respondent s occupation and marketing mix factors Ho: There is no significance difference between respondent s occupation and marketing mix factors Table 4.33 Relationship between Occupation and Marketing Mix Factors Occupation Sum of Squares df Mean Square F Sig. Program that always use Between Groups Within Groups Total Spending budget per time Between Groups Within Groups Total Membership Between Groups Within Groups Total Persuasion Between Groups Within Groups Total Guarantee Between Groups Within Groups Total Guarantee is better or not Between Groups Within Groups Total Yearly Member Between Groups Within Groups Total Your regular car wash service place Between Groups Within Groups Total Table 4.33 illustrated that occupation and most of marketing mix factors Sig. is more than 0.05 except persuasion factor and guarantee is better or not Sig. which are less than Therefore, we rejected null hypothesis and concluded that occupation is a key factor affected marketing mix factors. The results also revealed that people who are in different careers think about persuasion differently and they are not quite sure whether car wash with the quality guarantee policy will be better than car wash service sites that do not have it or not. 51

63 Sub-Hypothesis 1.6: There is no significance difference between respondent s working position and marketing mix factors Ho: There is no significance difference between respondent s working position and marketing mix factors Table 4.34 Relationship between Working Position and Marketing Mix Factors Position Sum of Squares df Mean Square F Sig. Program that always use Between Groups Within Groups Total Spending budget per time Between Groups Within Groups Total Membership Between Groups Within Groups Total Persuasion Between Groups Within Groups Total Guarantee Between Groups Within Groups Total Guarantee is better or not Between Groups Within Groups Total Yearly Member Between Groups Within Groups Total Your regular car wash service place Between Groups Within Groups Total Table 4.34 illustrated that working position and most of marketing mix factors Sig. is more than 0.05 except membership and yearly member factor Sig. which are less than Therefore, we rejected null hypothesis and concluded that position is a key factor affected marketing mix factors. The results also revealed that people who are in different working positions think about membership and willing to pay yearly member differently. 52

64 Sub-Hypothesis 1.7: There is no significance difference between respondent s salary and marketing mix factors Ho: There is no significance difference between respondent s salary and marketing mix factors Table 4.35 Relationship between Salary and Marketing Mix Factors Salary Sum of Squares df Mean Square F Sig. Program that always use Between Groups Within Groups Total Spending budget per time Between Groups Within Groups Total Membership Between Groups Within Groups Total Persuasion Between Groups Within Groups Total Guarantee Between Groups Within Groups Total Guarantee is better or not Between Groups Within Groups Total Yearly Member Between Groups Within Groups Total Your regular car wash service place Between Groups Within Groups Total Table 4.35 illustrated that salary and most of marketing mix factors Sig. is more than 0.05 except membership and yearly member factor Sig. which are less than Therefore, we rejected null hypothesis and concluded that salary is a key factor affected marketing mix factors. The results also revealed that people who earn different monthly income think about membership and willing to pay yearly member differently. The results from Sub-Hypothesis 1.1 to Sub-Hypothesis 1.7 illustrated that educational background, occupation, working position and salary are key factors affected marketing factors. 53

65 2) Hypothesis 2 There is no significance difference between demographic factors and factors that influence decision making on using car wash service in Bangkok Sub-Hypothesis 2.1: There is no significance difference between respondent s gender and decision making factors Ho: There is no significance difference between respondent s gender and decision making factors Table 4.36 Relationship between Gender and Decision Making Factors Gender Sum of Squares df Mean Square F Sig. Quality of the wash Between Groups Within Groups Total Service fees Between Groups Within Groups Total Convenience Between Groups Within Groups Total Speed of services Between Groups Within Groups Total Scratch protection Between Groups Within Groups Total Safety Between Groups Within Groups Total Environmental safety Between Groups Within Groups Total Services of employees Between Groups Within Groups Total Satisfaction Between Groups Within Groups Total Table 4.36 illustrated that gender and most of decision making factors Sig. is more than 0.05 except safety, environmental safety and satisfaction factor Sig. which are less than Therefore, we rejected null hypothesis and concluded that gender is a key factor affected decision making factors. The results also revealed that male and 54

66 female consider on safety, the safety of environment and satisfaction with the works differently when they want to use the car wash service. Sub-Hypothesis 2.2: There is no significance difference between respondent s age and decision making factors Ho: There is no significance difference between respondent s age and decision making factors Table 4.37 Relationship between Age and Decision Making Factors Age Sum of Squares df Mean Square F Sig. Quality of the wash Between Groups Within Groups Total Service fees Between Groups Within Groups Total Convenience Between Groups Within Groups Total Speed of services Between Groups Within Groups Total Scratch protection Between Groups Within Groups Total Safety Between Groups Within Groups Total Environmental safety Between Groups Within Groups Total Services of employees Between Groups Within Groups Total Satisfaction Between Groups Within Groups Total Table 4.37 illustrated that age and most of decision making factors Sig. is more than 0.05 except service fees factor Sig. which is less than Therefore, we rejected null hypothesis and concluded that age is a key factor affected decision making factors. The results also revealed that people at different ages consider on service fees differently when they want to use the car wash service. 55

67 Sub-Hypothesis 2.3: There is no significance difference between respondent s marital status and decision making factors Ho: There is no significance difference between respondent s marital status and decision making factors Table 4.38 Relationship between Marital Status and Decision Making Factors Marital Status Sum of Squares df Mean Square F Sig. Quality of the wash Between Groups Within Groups Total Service fees Between Groups Within Groups Total Convenience Between Groups Within Groups Total Speed of services Between Groups Within Groups Total Scratch protection Between Groups Within Groups Total Safety Between Groups Within Groups Total Environmental safety Between Groups Within Groups Total Services of employees Between Groups Within Groups Total Satisfaction Between Groups Within Groups Total Table 4.38 illustrated that marital status and most of decision making factors Sig. is more than 0.05 except service fees and safety factor Sig. which are less than Therefore, we rejected null hypothesis and concluded that marital status is a key factor affected decision making factors. The results also revealed that people who are single consider on service fees and safety differently when they want to use the car wash service from people who are married or divorced. 56

68 Sub-Hypothesis 2.4: There is no significance difference between respondent s educational background and decision making factors Ho: There is no significance difference between respondent s educational background and decision making factors Table 4.39 Relationship between Educational Background and Decision Making Factors Educational background Sum of Squares df Mean Square F Sig. Quality of the wash Between Groups Within Groups Total Service fees Between Groups Within Groups Total Convenience Between Groups Within Groups Total Speed of services Between Groups Within Groups Total Scratch protection Between Groups Within Groups Total Safety Between Groups Within Groups Total Environmental safety Between Groups Within Groups Total Services of employees Between Groups Within Groups Total Satisfaction Between Groups Within Groups Total Table 4.39 illustrated that educational background and most of decision making factors Sig. is less than 0.05 except convenience, safety, environmental safety, and services of employees factor Sig. which are more than Therefore, we reject null hypothesis and concluded that educational background is one of many key factor affected decision making factors. 57

69 Sub-Hypothesis 2.5: There is no significance difference between respondent s occupation and decision making factors Ho: There is no significance difference between respondent s occupation and decision making factors Table 4.40 Relationship between Occupation and Decision Making Factors Occupation Sum of Squares df Mean Square F Sig. Quality of the wash Between Groups Within Groups Total Service fees Between Groups Within Groups Total Convenience Between Groups Within Groups Total Speed of services Between Groups Within Groups Total Scratch protection Between Groups Within Groups Total Safety Between Groups Within Groups Total Environmental safety Between Groups Within Groups Total Services of employees Between Groups Within Groups Total Satisfaction Between Groups Within Groups Total Table 4.40 illustrated that occupation and all decision making factors Sig. is more than Therefore, we accepted null hypothesis and concluded that occupation is not a key factor affected decision making factors. 58

70 Sub-Hypothesis 2.6: There is no significance difference between respondent s working position and decision making factors Ho: There is no significance difference between respondent s working position and decision making factors Table 4.41 Relationship between Working Position and Decision Making Factors Working position Sum of Squares df Mean Square F Sig. Quality of the wash Between Groups Within Groups Total Service fees Between Groups Within Groups Total Convenience Between Groups Within Groups Total Speed of services Between Groups Within Groups Total Scratch protection Between Groups Within Groups Total Safety Between Groups Within Groups Total Environmental safety Between Groups Within Groups Total Services of employees Between Groups Within Groups Total Satisfaction Between Groups Within Groups Total Table 4.41 illustrated that working position and all decision making factors Sig. is more than Therefore, we accepted null hypothesis and concluded that position is not a key factor affected decision making factors. 59

71 Sub-Hypothesis 2.7: There is no significance difference between respondent s salary and decision making factors Ho: There is no significance difference between respondent s salary and decision making factors Table 4.42 Relationship between Salary and Decision Making Factors Salary Sum of Squares df Mean Square F Sig. Quality of the wash Between Groups Within Groups Total Service fees Between Groups Within Groups Total Convenience Between Groups Within Groups Total Speed of services Between Groups Within Groups Total Scratch protection Between Groups Within Groups Total Safety Between Groups Within Groups Total Environmental safety Between Groups Within Groups Total Services of employees Between Groups Within Groups Total Satisfaction Between Groups Within Groups Total Table 4.42 illustrated that salary and all decision making factors Sig. is more than Therefore, we accepted null hypothesis and concluded that salary is not a key factor affected decision making factors. The results from Sub-Hypothesis 2.1 to Sub-Hypothesis 2.7 illustrated that gender, age, marital status, and educational background are key factors affected decision making factors. 60

72 3) Hypothesis 3 There is no significance difference between marketing mix factors and factors that influence decision making on using car wash service in Bangkok Sub-Hypothesis 3.1: There is no significance difference between car wash service program that always used and decision making factors Ho: There is no significance difference between car wash service program that always used and decision making factors Table 4.43 Relationship between Car Wash Service Program that always used and Decision Making Factors Program Sum of Squares df Mean Square F Sig. Quality of the wash Between Groups Within Groups Total Service fees Between Groups Within Groups Total Convenience Between Groups Within Groups Total Speed of services Between Groups Within Groups Total Scratch protection Between Groups Within Groups Total Safety Between Groups Within Groups Total Environmental safety Between Groups Within Groups Total Services of employees Between Groups Within Groups Total Satisfaction Between Groups Within Groups Total Table 4.43 illustrated that program that always used and most of decision making factors Sig. is more than 0.05 except service fees and convenience factor Sig. which are less than Therefore, we rejected null hypothesis and concluded that 61

73 program that always used is a key factor affected decision making factors. The results also revealed that people who use different car wash program consider on service fees and convenience to use the car wash service differently. Sub-Hypothesis 3.2: There is no significance difference between price and decision making factors Ho: There is no significance difference between price and decision making factors Table 4.44 Relationship between Price and Decision Making Factors Price Sum of Squares df Mean Square F Sig. Quality of the wash Between Groups Within Groups Total Service fees Between Groups Within Groups Total Convenience Between Groups Within Groups Total Speed of services Between Groups Within Groups Total Scratch protection Between Groups Within Groups Total Safety Between Groups Within Groups Total Environmental safety Between Groups Within Groups Total Services of employees Between Groups Within Groups Total Satisfaction Between Groups Within Groups Total Table 4.44 illustrated that price and most of decision making factors Sig. is more than 0.05 except environmental safety factor Sig. which is less than Therefore, we rejected null hypothesis and concluded that price is a key factor 62

74 affected decision making factors. The results also revealed that the level of prices that people are willing to spend per time have some impact on environmental safety. Sub-Hypothesis 3.3: There is no significance difference between member and decision making factors Ho: There is no significance difference between member and decision making factors Table 4.45 Relationship between Membership and Decision Making Factors Membership Sum of Squares df Mean Square F Sig. Quality of the wash Between Groups Within Groups Total Service fees Between Groups Within Groups Total Convenience Between Groups Within Groups Total Speed of services Between Groups Within Groups Total Scratch protection Between Groups Within Groups Total Safety Between Groups Within Groups Total Environmental safety Between Groups Within Groups Total Services of employees Between Groups Within Groups Total Satisfaction Between Groups Within Groups Total Table 4.45 illustrated that member and all decision making factors Sig. is more than Therefore, we accepted null hypothesis and concluded that member is not a key factor affected decision making factors. 63

75 Sub-Hypothesis 3.4: There is no significance difference between guarantee policy and decision making factors Ho: There is no significance difference between guarantee policy and decision making factors Table 4.46 Relationship between Guarantee Policy and Decision Making Factors Guarantee policy Sum of Squares df Mean Square F Sig. Quality of the wash Between Groups Within Groups Total Service fees Between Groups Within Groups Total Convenience Between Groups Within Groups Total Speed of services Between Groups Within Groups Total Scratch protection Between Groups Within Groups Total Safety Between Groups Within Groups Total Environmental safety Between Groups Within Groups Total Services of employees Between Groups Within Groups Total Satisfaction Between Groups Within Groups Total Table 4.46 illustrated that guarantee and most of decision making factors Sig. is more than 0.05 except convenience safety factor Sig. which is less than Therefore, we rejected null hypothesis and concluded that guarantee is a key factor affected decision making factors. The results also revealed that quality guarantee policy have some impact on convenience to use the service. 64

76 Sub-Hypothesis 3.5: There is no significance difference between guarantee is better or not factor and decision making factors Ho: There is no significance difference between guarantee is better or not factor and decision making factors Table 4.47 Relationship between Guarantee is better or not and Decision Making Factors Guarantee is better or not Sum of Squares df Mean Square F Sig. Quality of the wash Between Groups Within Groups Total Service fees Between Groups Within Groups Total Convenience Between Groups Within Groups Total Speed of services Between Groups Within Groups Total Scratch protection Between Groups Within Groups Total Safety Between Groups Within Groups Total Environmental safety Between Groups Within Groups Total Services of employees Between Groups Within Groups Total Satisfaction Between Groups Within Groups Total Table 4.47 illustrated that guarantee is better or not factor and all decision making factors Sig. is more than Therefore, we accepted null hypothesis and concluded that guarantee is better or not factor is not a key factor affected decision making factors. 65

77 Sub-Hypothesis 3.6.: There is no significance difference between yearly member factor and decision making factors Ho: There is no significance difference between yearly member factor and decision making factors Table 4.48 Relationship between Yearly Member and Decision Making Factors Yearly member Sum of Squares df Mean Square F Sig. Quality of the wash Between Groups Within Groups Total Service fees Between Groups Within Groups Total Convenience Between Groups Within Groups Total Speed of services Between Groups Within Groups Total Scratch protection Between Groups Within Groups Total Safety Between Groups Within Groups Total Environmental safety Between Groups Within Groups Total Services of employees Between Groups Within Groups Total Satisfaction Between Groups Within Groups Total Table 4.48 illustrated that yearly member and most of decision making factors Sig. is more than 0.05 except services of employees factor Sig. which is less than Therefore, we rejected null hypothesis and concluded that yearly member is a key factor affected decision making factors. The results also revealed that levels of yearly member service fees have some impact on services of employees. 66

78 Sub-Hypothesis 3.7: There is no significance difference between regularly place that use the service factor and decision making factors Ho: There is no significance difference between regularly place that use the service factor and decision making factors Table 4.49 Relationship between regularly place and Decision Making Factors Regularly place Sum of Squares df Mean Square F Sig. Quality of the wash Between Groups Within Groups Total Service fees Between Groups Within Groups Total Convenience Between Groups Within Groups Total Speed of services Between Groups Within Groups Total Scratch protection Between Groups Within Groups Total Safety Between Groups Within Groups Total Environmental safety Between Groups Within Groups Total Services of employees Between Groups Within Groups Total Satisfaction Between Groups Within Groups Total Table 4.49 illustrated that regularly place factor and all decision making factors Sig. is more than Therefore, we accepted null hypothesis and concluded that regularly place factor is not a key factor affected decision making factors. The results from Sub-Hypothesis 3.1 to Sub-Hypothesis 3.7 illustrated that car wash service program that always used, price, guarantee policy, and yearly member are key factors affected decision making factors. 67

79 4.5 Financial Analysis Revenues forecast. Assuming that car owners use our services 1,860 minutes per day and the average service fee is 165 baht/car. The revenues per day are 13, baht which equal to 397,575 baht in monthly income. Therefore, yearly revenue would be 4,770,900 baht. The forecasts show in the table below comprises of pessimistic growth estimation, normal growth estimation, and optimistic growth estimation. Table 4.50 Revenues Forecast from 2008 to 2012 Revenues Forecast (Baht) Year 2008F 2009F 2010F 2011F 2012F Revenues (Pessimistic) 4,770,900 4,627,773 4,488,940 4,354,272 4,223,643 Revenues 4,770,900 5,009,445 5,259,917 5,522,913 5,799,059 Revenues (Optimistic) 4,770,900 5,104,863 5,462,203 5,844,558 6,253,677 Pessimistic growth Normal growth Optimistic growth = growth rate of 3 percent per year = growth rate of 5 percent per year = growth rate of 7 percent per year Unit cost. 1) Washing (Around 20 minutes) The cost of washing per car can be estimated roughly as the following figure shows. Labor Cost (2 persons for washing 1 car) 1 person = 6,000 baht/month 2 persons = 12,000 baht/month = 400 baht/day = 50 baht/hr. (works 8 hour/day) = 0.83 baht/min. Washing 1 car (20 mins.) = 16.6 baht/20 min. Shampoo Foam Cost (Bodywork Shampoo Conditioner from Autoglym Brand) Shampoo foam 30 litre Shampoo foam = 1,500 baht = 1.25 baht/car (1 Litre for 40 cars) 68

80 Table 4.51 Total Washing Unit Cost Source: Auto Care Clinic Co., Ltd. Washing Component Cost (Baht) Labor cost (20 mins.) 16.6 Shampoo Foam 1.25 Water (30 Litre) 0.6 Electric (1200W for 20 mins.) 3.75 Total ) Waxing (Around 1 hour) The cost of waxing per car can be estimated roughly as the following figure shows. Labor Cost (2 persons for waxing 1 car) Waxing 1 car (1 hour) = 49.8 baht/60 min. Solution Cost (Extra Gloss Protection from Autoglym Brand) Solution 100 ML per car = 118 baht (1.18 baht/ml) Table 4.52 Total Waxing Unit Cost Source: Auto Care Clinic Co., Ltd. Waxing Component Cost (Baht) Labor cost (1 hr.) 49.8 Solution 118 Water (15 Litre) 0.3 Electric (1200W for 1 hr.) Total

81 4.5.3 Break-even analysis. 1) Fixed costs - Labor cost 132,000 baht / month - Insurance 10,000 baht / month - Rent 60,000 baht / month - Maintenance cost 3,000 baht / month - Promotion and advertising cost 20,000 baht / month Total Fixed Cost = 225,000 baht / month 2) Variable costs Based on 83.7 cars per day choosing washing program Washing Program Shampoo Foam 1.25 Water (30 Litre) 0.6 Electric (1200W for 20 mins.) 3.75 Total Variable Cost for Washing Program = 5.60 baht/car 3) Service charges Washing Program 150 baht If we calculate only washing program as most of the company s revenues come from it, the break-even point is; 225,000/ ( ) = 1, cars / month = cars / day Income forecast. The income forecast shows below is based on the growth rate of 5% per year 70

82 Table 4.53 Income Forecast from 2008 to 2012 Income Forecast (Baht) Year 2008F 2009F 2010F 2011F 2012F Sales 4,770,900 5,009,445 5,259,917 5,522,913 5,799,059 Cost of Good Sold 1,145,860 1,203,153 1,263,310 1,326,476 1,392,800 Gross Profit 3,625,040 3,806,292 3,996,607 4,196,437 4,406,259 Operating Expenses Rent 720, , , , ,165 Insurance 120, , , , ,861 Administrative Expenses 1,620,000 1,701,000 1,786,050 1,875,353 1,969,120 Promotion and Advertisement 240, , , , ,722 Total Operating Expenses 2,700,000 2,835,000 2,976,750 3,125,588 3,281,867 Operating Income 925, ,292 1,019,857 1,070,850 1,124,392 Interest Paid 74,003 77,703 81,589 85,668 89,951 Income Before Tax 851, , , ,182 1,034,441 Corporate Tax (30%) 255, , , , ,332 Net Income 595, , , , , Cash flow forecast. Table 4.54 Cash Flow Forecast from 2008 to 2012 Cash Flow Forecast Year Initial Stage 2008F 2009F 2010F 2011F 2012F Beginning Cash Balance -1,500, ,416-78, ,522 1,489,432 Cash Inflow Sales 4,770,900 5,009,445 5,259,917 5,522,913 5,799,059 Investment Income 23,855 25,047 26,300 27,615 28,995 Total Cash Inflow 4,794,755 5,034,492 5,286,217 5,550,528 5,828,054 Available Cash Balance 3,294,755 4,228,076 5,208,063 6,237,050 7,317,486 Cash outflow Initial Investment -1,500,000 Cost of Good Sold 1,145,860 1,203,153 1,263,310 1,326,476 1,392,800 Operating Expenses 2,700,000 2,835,000 2,976,750 3,125,588 3,281,867 Tax 255, , , , ,332 Total Cash Outflow -1,500,000 4,101,171 4,306,229 4,521,541 4,747,618 4,984,999 Ending Cash Balance -1,500, ,416-78, ,522 1,489,432 2,332,487 71

83 The figure above shows the forecast of cash flow. The initial investment is estimated to be 1,5000,000 baht. This investment includes legal consultants, expensed equipments, building labor, building equipments and other necessities to start up the business. The figure shows that the investment will be returned within 3 years (or year 2010). The IRR for this project is % Revenues forecast, income forecast, and cash flow forecast from the fifth year on. Let s assume that from the fifth year, the market has been fully saturated and the growth rate decline to 3 percent. We will have the following figure for revenues forecast, income forecast, and cash flow forecast. 1) Revenues forecast Table 4.55 Revenues Forecast from 2013 to 2017 Revenues Forecast (Baht) Year 2013F 2014F 2015F 2016F 2017F Revenues 5,973,031 6,152,221 6,336,788 6,526,892 6,722,698 2) Income forecast Table 4.56 Income Forecast from 2013 to 2017 Income Forecast (Baht) Year 2013F 2014F 2015F 2016F 2017F Sales 5,973,031 6,152,221 6,336,788 6,526,892 6,722,698 Cost of Good Sold 1,434,584 1,477,621 1,521,950 1,567,608 1,614,637 Gross Profit 4,538,447 4,674,600 4,814,838 4,959,283 5,108,062 Operating Expenses Rent 901, , , ,005 1,014,556 Insurance 150, , , , ,093 Administrative Expenses 2,028,194 2,089,040 2,151,711 2,216,262 2,282,750 Promotion and Advertisement 300, , , , ,185 Total Operating Expenses 3,380,323 3,481,733 3,586,185 3,693,770 3,804,583 Operating Income 1,158,124 1,192,868 1,228,654 1,265,513 1,303,479 Interest Paid 92,650 95,429 98, , ,278 Income Before Tax 1,065,474 1,097,438 1,130,361 1,164,272 1,199,200 Corporate Tax (30%) 319, , , , ,760 Net Income 745, , , , ,440 72

84 3) Cash flow forecast Table 4.57 Cash Flow Forecast from 2013 to 2017 Cash Flow Forecast Year 2013F 2014F 2015F 2016F 2017F Beginning Cash Balance 2,332,487 3,200,834 4,095,232 5,016,461 5,965,327 Cash Inflow Sales 5,973,031 6,152,221 6,336,788 6,526,892 6,722,698 Investment Income 29,865 30,761 31,684 32,634 33,613 Total Cash Inflow 6,002,896 6,182,983 6,368,472 6,559,526 6,756,312 Available Cash Balance 8,335,383 9,383,817 10,463,704 11,575,987 12,721,639 Cash outflow Initial Investment Cost of Good Sold 1,434,584 1,477,621 1,521,950 1,567,608 1,614,637 Operating Expenses 3,380,323 3,481,733 3,586,185 3,693,770 3,804,583 Tax 319, , , , ,760 Total Cash Outflow 5,134,549 5,288,585 5,447,243 5,610,660 5,778,980 Ending Cash Balance 3,200,834 4,095,232 5,016,461 5,965,327 6,942, Cash Management When running any business, it is typical that there will be a large sum of cash reserved in saving accounts. These accounts are used for immediate cash disbursement such as employees salary, utility costs, and other miscellaneous expenses. Fortunately, these disbursements are cyclical. That is, it can be expected on which day these disbursements must be made. For example, employees salary will be paid at the end of the month once a month. Utilities such as electricity and water must be paid by the first week of the month. While the rate of interests of the saving accounts is 0.75% a tear, there are some opportunities to deposit these cash to generate high returns with minimal risks while still maintaining almost the same liquidity. Siam Commercial Bank offers very popular fix-income mutual funds. Some other commercial banks also offer similar kind of mutual funds and call them under different names. For Siam Commercial Bank, they offer SCBSFF and SCBRF (more information is available on which both typically generate the return as much or higher than 12-month fix-deposit. 73

85 4.7 Human Resources Management The company will be divided into the following departments; finance and accounting, sales and marketing, Procurement and operations. The company will employ 17 people as follow. The employees listed below will be reported directly to the manager of the company. Table 4.58 Number of Employees in each Department Department Number of employees Finance and accounting 2 Sales and marketing 2 Procurement 1 Operations 12 Expansion plan After serving customers for one or two years, the company might decide to add some services such as wheel and tyre cleaning, interior cleaning or engine cleaning to attract new customers. However, they have to think about pros and cons that it will be worth or not because they are extraordinary services which customers have overlooked from the findings in this research. However, if they decided to do this, they have to employ new employees in procurement and operations department; another one for procurement department to remain the same good relationship with the suppliers and another one each for the extra services. In the following table, we assumed that the company adds all services above. So, the new employees listed will be like this; Table 4.59 Number of Employees in each Department after Expansion Department Number of employees Finance and accounting 2 Sales and marketing 2 Procurement 2 Operations 15 In term of adding new car wash service stations, the company should think about it when they see that customers demands are higher than its capacity. This can be done by expanding existing area or adding a new branch. If entrepreneurs decide to expand the business by adding new car wash stations at the same site, they might concern on availability of the nearby area first whether it can be done or not. 74

86 However, the researcher believe that adding some new branch at other areas will be more appropriate to this kind of business because we will get more customers at that areas and we can serve our existing customers very well also. 4.8 SWOT Analysis SWOT is an abbreviation of Strengths, Weaknesses, Opportunities, and threats. It is a great tool for auditing the overall strategic position of the current business and its environments. 1) Strengths The company has the know-how. As more competitors are getting into the market, it will be possible for the company to adjust the strategic marketing to create differentiation very quickly. The company is very proficient in car wash services and brand of the products that company used is highly respected in over forty countries and proudly hold many important endorsements for exceptional performance and dependable quality. Existing strong connections with suppliers will result in a lower cost of supplies and cost of management. The suppliers may be credited for a slight longer term and just-in-time policy may be utilized based on the connection we have. 2) Weaknesses The start-up capital of this business is not very large. If some big companies found out that the business unit worth the investment and becomes our competitors directly, it would be difficult to compete with them. The company is a new comer. Customers may not be confident with us. 75

87 3) Opportunities With the widely respected brand of the products company used, the company can adjust and create more varieties based on the original services to expand to different market segments which the company can utilize them as a key differentiation. The business sector that company served is expanding continuously as the number of personal car registered is increasing everyday. 4) Threats New entrants can compete with the company easily and they might take market share away form us. The company s revenues will be decreased a little bit when it comes to rainy season as customers tend to wash their cars less often. Existing competitors such as CAR WE LOVE, which provides carwash service in Central, Future, Robinson Department store, car wash service operators in gas station such as Shell, PTT, Caltex and Jet might expand their current business into other department stores and gas stations respectively, making our revenues decreased. Premium car care products companies such as Autoglym and Meguiars might establish their own franchising system for car wash service in Thailand, making people who are reliable with their world class products likely to be loyalty with them more than the company s products. This might affect the company s market share to be decreased. 4.9 BCG Matrix The BOSTON matrix is a chart that had been created by Bruce Henderson for the Boston Consulting Group in 1970 to help corporations with analyzing their business units or product lines. This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management and portfolio-analysis. 76

88 Figure 4 BCG Matrix Source: Four segments of the BCG Matrix in figure 4 provide 4 categories in a portfolio of a company: 1) Stars (high growth, high market share) Stars are using large amount of cash. Stars are leader in the business. Therefore they should also generate large amounts of cash. Stars are frequently roughly in balance of net cash flow. However if needed, any attempt should be made to hold your market share in Stars, because the rewards will be Cash Cows if market share is kept. 2) Cash Cows (low growth, high market share) Profits and cash generation should be high. Because of the low growth, investments which are needed should be low. 77

89 Cash Cows are often the stars of yesterday and they are the foundation of a company. 3) Question Marks (high growth, low market share) Question Marks have the worst cash characteristics of all. They have high demands and generate low returns because of their low market share. If the market share remains unchanged, Question Marks will simply absorb great amounts of cash. Either invest heavily, sell off, or invest nothing and generate any cash that you can. Increase market share or deliver cash. 4) Dogs (low growth, low market share) Avoid and minimize the number of Dogs in a company. Wash out for expensive rescue plans. Dogs must deliver cash, otherwise they must be liquidated. At present, car wash business in Bangkok can be viewed as Cash Cows in BCG Matrix as the business is in a mature or slow industry. However, even though the growth rate of business is low, its market share is still high as the number of personal car registered is increasing everyday as well as the changing in consumer behavior that shifted from washing their cars by themselves in the past to using car wash services currently. Furthermore, modern people who live in Bangkok today tend to have no time because of living in dynamic community. Therefore, it will be good opportunities for entrepreneurs who are interested in this business because it can generate high profits and cash compared to the money that is invested. 78

90 Chapter 5 Conclusions and Recommendations As stated in Chapter one that the present study intends to survey the market demand on using car wash service in Bangkok. The results are used to be base information for forecasting of customers demand and consumption behavior in the financial and marketing analysis as presented in this chapter. There are two parts in this chapter including conclusion and recommendations for future study. 5.1 Conclusions Structured survey questionnaires were distributed to the car owners who live in Bangkok Metropolitan area for a face-to-face interview. The descriptive statistics for data analysis are frequency, percentage, means and standard deviation and Oneway ANOVA is applied for hypothesis testing. The samples are 400 people who are currently own a car and live in Bangkok. The results of the study illustrated that the majority of respondents are nearly equal between male and female, age between years old, single and hold bachelor degree level. Most of them work in private company and their positions are officers generally, and earn incomes between 15,001 to 25,000 baht. The findings about using car wash service behavior stated that up to 86.8 percent of respondents are regularly using car wash service and usually wash their cars once a month. Their most convenient time for using car wash service is between pm and pm and they will use the service whenever they are free. However, the most preferred day to use the service is weekends. Most of them will use car wash service by selecting washing program only which they are willing to pay 100 to 200 baht per one time that they use the service. Only 13.2 percent of respondents stated that they do not regularly use the car wash service because they can wash their cars by themselves. Up to 89.3 percent of the respondents who regularly use car wash service are not member of any car wash service operators primarily because they do not use car wash service regularly and they think that car wash service places charge them high service fees. Furthermore, they want to try other places to find the most appropriate car wash service places for them. 47 percent of people who regularly use car wash 79

91 service have been invited primarily by brochures or leaflets, billboards and internet. Up to 96.8 percent of them agreed that car wash service operators should have quality guarantee scheme in order to guarantee dissatisfied results. In addition, up to 94.8 percent of these groups of people agreed that car wash service operators with the quality guarantee policy are better than operators who do not have this policy. The membership fees levels that people who regularly use car wash service are willing to pay per year with limited number of services is lesser than 2,000 baht. They always give their top three priorities when they are choosing to be membership with car wash service operators to the locations, reliability and cleanness. Up to 31.1 percent of these groups stated that they regularly use car wash service at gas station or pump. Most of people who regularly use car wash service would like to receive good advice from employees and they want to be taken care of very well also. Furthermore, they want car wash service places to have a perfect opening-closing time range, good atmosphere, and additional services also. Most of them would like to have a waiting room when they use car wash services followed by seeing a car wash service place together with a gas station and convenience store. Quality of the wash, safety, scratch protection, and satisfaction with the works are very important decision making factors that the sample groups concern on using car wash service. Furthermore, service of employees, convenience to use the car wash service, speed of service, service fees, and environmental safety are important factors that respondents also consider when they use the service. Therefore, entrepreneurs who are interested in this business should not overlook these factors when they set up the car wash service sites. 5.2 Recommendations 1) Car wash service should charge the reasonable price, have good and friendly employees and do not waste the customers time. 2) Car wash service should have a delivery service. It should have a pick-up service at the customers place in order to attract customers who have no time. Furthermore, it will be a perfect service for people who go to car wash service sites and it turned out that the sites cannot serve their demands because of full capacity. 3) Car wash service should be very careful about the copy of car key because some customers chose not to use the service as they do not trust with 80

92 employees. They are afraid that employees would take their car key and make a copy of it. 4) Car wash service should have guarantee policies not only the quality of the wash matters but also the safety and properties inside the car. 5) Car wash service should have additional services such as the waiting room, coffee club, bookstore, beauty shop for customers to use when they are waiting for their cars cleaned. 6) Car wash service should be available after work for people who are unavailable at the day time. 7) Workers who wash the car should have the uniform dresses in order to have not only a good image for the company but also orderliness from the point of view of customers. Recommendation for further study, the future study should continue on quality of the wash factor, safety factor, satisfaction with the works factor, service of employees factor, and convenience to use the car wash service factor to cover all important decision making factor and to help in planning the marketing strategies. In case of entrepreneurs who have already own the car wash sites, the owners should evaluate the consumer satisfaction every year in order to find the strengths and weaknesses of the car wash service in order to improve quality and to receive greater customer satisfaction. 81

93 References Auto Care Clinic Co., Ltd. (2007). Unit Cost. Average salary of Thai people. (n.d.). Retrieved January 8, 2007, from Barney, J. B. (1997). Gaining and sustaining competitive advantage. Addison-Wesley Publishing Company, Reading Mass. BCG Matrix. (n.d.). Retrieved February 15, 2007, from Bennett, S. (2004). Lathering up a profit. National Petroleum News, 96(9). Retrieved February 10, 2007, from ABI/INFORM database. Berkowitz, K. H. R. (1994). Marketing (4th ed.). Blackwell, R., Miniard, P., Engel, J., & Harcourt. (2001). How consumers make decisions for goods and services. Retrieved January 10, 2007, from Car wash glossary. (n.d.). Retrieved January, 2007, from Chee & Harris. (1993). Marketing a global perspective. Pitman Publishing. Darian, J. C., & Cohen, J. (1995). Segmentating by consumer time shortage. Journal of Consumer Marketing, 12(1), Engel, J. F., Blackwell, R. D., & Mininard, P. W. (2000). ConsumerBehavior (9th ed.). Forth Worth: Dryden Press. Gilbert, D. H. (2002). Marketing connecting with customer (2nd ed.). NJ: Prentice Hall International. Hanna, N., & Wozniak, R (2000). Consumer behavior: An applied approach. Upper Saddle River, NJ: Prentice Hall. Hawkins, dl I., Best, R. J., & Coney, K. A. (1998). Consumer behavior: Building marketing strategy (7th ed.). Boston: McGraw Hill. Hawkins, dl I., Best, R. J., & Coney, K. A. (2001). Consumer behavior: Building marketing strategy (9th ed.). Boston: McGraw Hill. International Carwash Association. (2004). Cost of doing car wash business. Retrieved January, 2007, from Jagdish, N. S., Mittal, & Newman. (1999). Consumer behavior and beyond. 82

94 Johnston, J. (1994). Waxing customer service and cars. Management review, 83(7). Retrieved February 10, 2007, from ABI/INFORM database. Kotler, P. (1997). Marketing management: Analysis, planning, implementation and control (9th ed.). NJ: Prentice Hall International. Kotler, P. (2000). Marketing management. The United States of America: Prentice-Hall. Kotler, P. (2003). Marketing management: An asian perspective (3rd ed.). Singapore: Prentice Hall Lofstock, J. (2007). Making the most at the car wash. Convenience Store Decisions, 18(3). Retrieved February 10, 2007, from ABI/INFORM database. McCarthy, E. J. (1996). Basic marketing: A managerial approach (12th ed.). Homewood, IL: Irwin. McCarthy, E. J. (1999). Basic marketing: A global managerial approach. Homewood, IL: Irwin. McDaniel, C., & Gates, R. (1999). Contemporary marketing research (4th ed.). Cincinnati, Ohio: South-Western College Publishing. Number of personal car registered in Bangkok. (2007). Retrieved January 8, 2007, from Number of population in Thailand. (2006). Retrieved January 8, 2007, from Palmer, A. (2001). Principles of services marketing (3rd ed.). Singapore: McGraw- Hill. Pelsmacker et al. (2001). Marketing communications. Harlow: Financial Times /Prentice Hall Peter, J. P., & Olson, J. (2002). Consumer behavior and marketing strategy (6th ed.). Boston: Irwin: McGraw-Hill. Porter, E. M. (1998). On competition Harvard Business School Press. Schiffman, L. G., & Kanuk, L. L. (2006). Consumer behavior (9th ed.). NJ: Pearson Prentice Hall. Shimp A. T. (1997). Advertising, promotion, and supplemental aspects of intergrated marketing communications (4th ed.). Fort Worth: DryPress. Vandermerwe, S., & Rada, J. (1988). Servicitization of business: Adding value by adding services. European Management Journal, 6(4). 83

95 Warren, M. (2005). Car washing goes high-tech. National Petroleum News, 97(4). Retrieved February 10, 2007, from ABI/INFORM database. Yamane, T. (1967). Statistics, an introductory analysis (2nd ed.). New York: Harper and Row. Zikmund, W. G. (1996). Marketing (5th ed.). St. Paul, MN: West. Zikmund, W. G. (2000). Business research methods (6th ed.). USA: Harcourt. Zikmund, W. G. (2003). Essentials of marketing research. USA: Thompson South- Western. 84

96 Appendix A Questionnaire (English) Shinawatra University Questionnaires A FEASIBILITY STUDY OF LAUNCHING CAR WASH BUSINESS IN BANGKOK This survey questionnaire is a part of MBA program Shinawatra University Your information will be very useful in the study. Thank you for your fulfill in these questionnaires Mr. Warun Jirachahisingh MBA (Master of Business Administration) Shinawatra University 85

97 Part 1 Demographic Information 1. Gender Male Female 2. Age Less than 25 years old years old years old years old years old years old More than 50 years old 3. Status Single Married Divorced or widowed 4. Education Less than Bachelor Degree Bachelor Degree Master Degree More than Master Degree 5. Occupation Governmental Officer Private Employees State Enterprise Employees Entrepreneurs Soldiers or Police Housewife Retired Other (Please specify) Position (if possible) CEO, MD and Assistant VP and assistant Manager and assistant Officer Levels 7. Monthly Income Less than 15,000 baht 15,001-25,000 baht 25,001-40,000 baht 40,001-50,000 baht 50,001-80,000 baht 80, ,000 baht 100, ,000 baht 150, ,000 baht More than 300,000 baht 86

98 Part 2 8. Are you regularly using car wash service? Yes (Skip question 9) No (Answer question 9 and stop) 9. Reasons for not using car wash service (Can choose more than 1 choice) Do not have time to use the service Unnecessary to clean the car High price and expensive Cannot find the appropriate car wash service place Afraid that car will have scratches Can clean their cars by themselves Other (Please specify) How often do you use the car wash service? Everyday More than once a week Once a week Within 2 weeks Once a month 2-3 months per time 4-6 months per time Longer than 6 months 11. Which period of time do you use car wash service most often? 6 am 9 am 9 am 12 am 12 am 3 pm 3 pm 6 pm 6 pm 10 pm 12. Which day do you use car wash service most often? Monday and Tuesday Wednesday and Thursday Friday Saturday Sunday Whatever 13. Which program do you always choose when you use car wash service? Wash Only (Wash and vacuum) Wash and Wax Wash and Interior detailing Wash, Wax and Interior detailing 87

99 14. How much money do you estimate the spending budget once you use the car wash service? Less than 100 baht baht baht baht 501-1,000 baht 1,001-2,000 baht 2,001-2,500 baht Over than 2,500 baht 15. Have you been membership with car wash service operators currently? Yes (skip question 16) No 16. Reasons for not being membership with any car wash service operator? (Can choose more than 1 choice) High Price Want to try other places Cannot find regularly car wash service places Do not use car wash service regularly Other (Please specify) Have you ever asked for information or invited to be membership with any car wash service operator? Yes No (Skip question 18) 18. Have you ever received the information for being membership with car wash service operators through which media? Newspapers Magazines TV Radio Billboard Brochure/Leaflet Internet Other (Please specify) Do you think that car wash service should have the quality guarantee policy or not? Should have Should have not 20. Do you think that car wash service operators with the quality guarantee policy will be better than car wash service operators who do not have it or not? Better Not better because.. 88

100 21. How much money are you willing to pay the yearly member fee for being the membership (limited number of services) with car wash service operators? Less than 2,000 baht 2,001-3,000 baht 3,001-4,000 baht 4,001-5,000 baht 5,001-8,000 baht 8,001-10,000 baht 10,001-20,000 baht Over than 20,000 baht 22. Please specify car wash service places that you use most often? 23. Please rank these following factors that you think it is important for choosing to be membership with any car wash service operator? (1 means the most important and 10 means the least important) Location (Very closed to their houses or offices) Reasonable service fees Reliability Word of mouth communication that told you it is a good place Washing products that the place used Advertising Promotion Cleanness Paid by credit or debit card Services of employees (convenient, fast and friendly) 24. What is your expectation from using car wash service (Can choose more than 1 choice) Good and friendly advice from washers Proper opening-closing time range Good Atmosphere Selling car care products also Additional services Other (Please specify)... 89

101 25. What additional services do you think car wash service place should have? (Can choose more than 1 choice) Gas Station Waiting room High speed Internet Convenience Store Fast food Dry clean ATM Balance a wheel services Transfer lubricants services Other (Please specify)... Part Please indicate the level of important of the following factors that might have an influence on your decision making of choosing car wash operators (Please select one alternative only) Very Important = 5 Important = 4 Moderately Important = 3 Slightly Unimportant = 2 Not Important at all = Quality of the wash Service fees Convenience to use the service Speed of services Scratch protection Safety of properties inside the car Environmental Safety Services of employees Satisfaction with the wash Other comments 90

102 Appendix B Questionnaire (Thai) มหาว ทยาล ยช นว ตร แบบสอบถาม เร อง การศ กษาความต องการของตลาดส าหร บธ รก จการให บร การการท าความสะอาดรถยนต แบบสอบถามน เป นส วนหน งของหล กส ตรบร หารธ รก จมหาบ ณฑ ต มหาว ทยาล ยช นว ตร ข อม ลของท านม ประโยชน และค ณค าอย างย งในการศ กษาว จ ย จ งขอขอบพระค ณท กท านเป น อย างส งท ให ความร วมม อในการตอบแบบสอบถามน นาย วร ณ จ รไชยส งห น กศ กษาหล กส ตรบร หารธ รก จมหาบ ณฑ ต (MBA) มหาว ทยาล ยช นว ตร 91

103 ส วนท 1 ข อม ลท วไป 1. เพศ ชาย หญ ง 2. อาย น อยกว า 25 ป ป ป ป ป ป มากกว า 50 ป 3. สถานภาพ โสด สมรส ม าย/หย าร าง 4. ระด บการศ กษา ต ากว าปร ญญาตร ปร ญญาตร ปร ญญาโท ส งกว าปร ญญาโท 5. อาช พ ข าราชการ พน กงานบร ษ ทเอกชน พน กงานร ฐว สาหก จ ประกอบธ รก จส วนต ว ทหาร/ต ารวจ แม บ าน เกษ ยณ อ น ๆ (โปรดระบ ) ต าแหน งงาน (หากม ) ประธาน, รองประธาน, กรรมการผ จ ดการ, รองกรรมการผ จ ดการ, ท ปร กษาอาว โส ผ อ านวยการฝ าย, รองผ อ านวยการฝ าย ผ จ ดการ, ผ ช วยผ จ ดการ ฯลฯ เจ าหน าท, พน กงานระด บต าง ๆ 7. รายได (บาทต อเด อน) ต ากว า 15,000 15,001-25,000 25,001-40,000 40,001-50,000 50,001-80,000 80, , , , , ,000 มากกว า 300,000 92

104 ส วนท 2 8. โดยปกต แล วท านใช บร การการท าความสะอาดรถยนต หร อไม ใช (ข ามข อ 9) ไม ใช (ให ต อข อ 9 แล วหย ด) 9. สาเหต ท ไม ใช บร การการท าความสะอาดรถยนต (เล อกได มากกว า 1 ข อ) ต ดภารก จหร อไม ม เวลา ค ดว าไม จ าเป นต องท าความสะอาดรถยนต การท าความสะอาดรถยนต ม ค าใช จ ายส ง ไม สามารถหาสถานท ให บร การท เหมาะสมได กล วรถยนต เป นรอยข ดข วน ค ดว าท าความสะอาดรถยนต ด วยต วเองได อ น ๆ (โปรดระบ ). 10. ท านใช บร การการท าความสะอาดรถยนต บ อยเพ ยงใด ท กว น มากกว า 1 คร งต อส ปดาห ส ปดาห ละคร ง 2 ส ปดาห ต อคร ง เด อนละคร ง 2-3 เด อนต อคร ง 4-6 เด อนต อคร ง นานกว า 6 เด อนต อคร ง 11. ท านม กใช บร การการท าความสะอาดรถยนต ในช วงเวลาใด น น น น น. 12. ท านม กใช บร การการท าความสะอาดรถยนต ในว นใด ว นจ นทร และว นอ งคาร ว นพ ธและว นพฤห ส ว นศ กร ว นเสาร ว นอาท ตย แล วแต สะดวก 13. โดยปกต ท านใช บร การการท าความสะอาดรถยนต อย างไร ล างอย างเด ยว (ล างและด ดฝ น) ล าง ด ดฝ นและข ดเคล อบส (ลง Wax) ล างและท าความสะอาดภายใน (ซ กเบาะ ฟอกพรม) ล าง ข ดเคล อบส และท าความสะอาดภายใน 14. ในการเข าร บบร การการท าความสะอาดรถยนต ท านประเม นค าใช จ ายต อคร งไว ท เท าใด ไม เก น 100 บาท บาท บาท บาท 501-1,000 บาท 1,001-2,000 บาท 2,001-2,500 บาท มากกว า 2,500 บาท 15. ท านเป นสมาช กสถานท ให บร การการท าความสะอาดรถยนต หร อไม เป น (ข ามข อ 16) ไม เป น 93

105 16. สาเหต ท ท านไม เป นสมาช กสถานท ให บร การการท าความสะอาดรถยนต (เล อกได มากกว า 1 ข อ) ค าใช จ ายส ง ต องการลองเปล ยนสถานท ให บร การไปเร อย ๆ ไม สามารถหาสถานท ให บร การท ต องการใช ประจ าได ไม ได ใช บร การการท าความสะอาดรถยนต เป นประจ า อ น ๆ (โปรดระบ ). 17. ท านเคยสอบถาม หร อได ร บข อม ลการเช ญชวนให เข าเป นสมาช ก หร อ ค าใช จ ายในการเป น สมาช กของสถานท ให บร การการท าความสะอาดรถยนต หร อไม เคย ไม เคย (ข ามข อ 18) 18. ท านเคยได ร บการเช ญชวนให เข าเป นสมาช ก ผ านทางส อใด หน งส อพ มพ น ตยสาร ท ว ว ทย แผ นป ายโฆษณา แผ นพ บ และใบปล ว Internet อ น ๆ (โปรดระบ ) 19. ท านค ดว าสถานท ให บร การการท าความสะอาดรถยนต ควรม การร บประก นค ณภาพการให บร การ หร อไม ควร ไม ควร 20. ท านค ดว า ถ าสถานท ให บร การการท าความสะอาดรถยนต ม ตราร บประก นค ณภาพการให บร การ จะด กว าสถานท ท ไม ม ตราร บประก นค ณภาพการให บร การหร อไม ด กว า ไม ด กว า เพราะ. 21. ท านย นด ท จะจ ายค าบร การ หร อค าสมาช กต อป แบบจ าก ดจ านวนคร งการให บร การ (โดยประมาณ) ในการเข าร บบร การการท าความสะอาดรถยนต จ านวนเท าใด ต ากว า 2,000 บาท 2,001-3,000 บาท 3,001-4,000 บาท 4,001-5,000 บาท 5,001-8,000 บาท 8,001-10,000 บาท 10,001-20,000 บาท มากกว า 20,000 บาท 22. โปรดระบ สถานท ท ท านเข าร บบร การการท าความสะอาดรถยนต ท ท านใช เป นประจ าหร อเป น สมาช กในป จจ บ น 94

106 23. ป จจ ยท เป นสาเหต ให ท านเล อกเป นสมาช กก บสถานท ให บร การการท าความสะอาดรถยนต (โปรด เร ยงล าด บความส าค ญจากมากไปน อย โดยท 1 แสดงถ งความส าค ญมากท ส ด และ 10 แสดงถ ง ความส าค ญน อยท ส ด) สถานท ต ง (ใกล บ าน,ใกล ท ท างาน) ราคาค าบร การเหมาะสม ความน าเช อถ อของสถานท ให บร การน น ม คนร จ กหร อเพ อนใช บร การ แล วบอกต อว าด ผล ตภ ณฑ ท สถานท ให บร การน นใช โฆษณาของสถานท ให บร การน น โปรโมช นของสถานท ให บร การน น ผลงานการท าความสะอาดรถยนต การจ ายค าบร การด วยบ ตรเครด ต/เดบ ต หร อการผ อนช าระค าบร การเป นงวด ๆ ได การให บร การของพน กงาน (สะดวก, รวดเร ว, เป นก นเอง) 24. อะไรค อส งท ท านคาดหว งจากการใช บร การการท าความสะอาดรถยนต (เล อกได มากกว า 1 ข อ) ม พน กงานให ค าแนะน าการท าความสะอาดและการด แลรถยนต อย างถ กต องและเป นก นเอง เวลาเป ดป ดการให บร การของสถานท ให บร การการท าความสะอาดรถยนต เหมาะสม บรรยากาศโดยรอบ/โดยรวมของสถานท ม การจ าหน ายผล ตภ ณฑ ท ใช ในการด แลร กษารถยนต ม การให บร การอ น ๆ ท น าสนใจร วมอย ในสถานท เด ยวก น อ น ๆ (โปรดระบ ) 25. ท านค ดว าท านต องการบร การใดเพ มเต มในการใช บร การ ณ สถานท ให บร การการท าความสะอาดรถยนต (เล อกได มากกว า 1 ข อ) สถาน บร การน าม น ห องร บรองล กค าระหว างรอการท าความสะอาด บร การ Internet ความเร วส ง ร านส นค าสะดวกซ อ ร านอาหารจานด วน ร านซ กแห ง บร การต ATM ศ นย บร การช วงล าง ต งศ นย ถ วงล อ ศ นย บร การเปล ยนถ ายน าม นเคร อง อ น ๆ (โปรดระบ ) 95

107 ส วนท ป จจ ยต าง ๆ ต อไปน ม อ ทธ พลต อการเล อกสถานท ให บร การการท าความสะอาดรถยนต ของท าน มากน อยเพ ยงไร (โปรดเล อกเพ ยงหมายเลขเด ยวต อหน งข อย อย) น อยท ส ด ปานกลาง มากท ส ด 26.1 ค ณภาพในการท าความสะอาด อ ตราค าบร การในการความสะอาด ความสะดวกในการมาร บบร การ ความรวดเร วในการท าความสะอาด การป องก นรอยข ดข วนขณะท าความสะอาด ความปลอดภ ยต อทร พย ส นในรถยนต การป องก นอ นตรายท เก ดข นต อส งแวดล อม การให บร การของพน กงาน ความพ งพอใจในงานก บราคาท จ ายไป ข อค ดเห นเพ มเต ม 96

108 Biography Name: Mr. Warun Jirachaisingh Date of Bath: June 8, 1983 Place of Birth: Bangkok, Thailand Institutions Attended: Chulalongkorn University, Thailand, Bachelor of Engineering (Industrial Engineering) 2005 Master of Business Administration in Management (MBA) Shinawatra University, Bangkok, Thailand Home Address: 217 Phaholyothin Rd. Samsennai Phayathai Bangkok Telephone: or,