Iycee Charles de Gaulle Summary Analytical Hierarchy Process Method To Prioritize Automobile Purchase Commerce Essay

Analytical Hierarchy Process Method To Prioritize Automobile Purchase Commerce Essay

Everyday people make determinations. We may hold to do simple determinations such as what clothes to have on today, what sort of nutrient to eat during tiffin and likely who is the right individual to be friend with. Somehow we might hold to cover with major determination or doing one time in a life clip determination such as: a determination to acquire married, a determination to purchase a house, a determination to use for a loan and a determination that besides includes that of buying a auto.As clip moves on, demands and demands alteration. Almost everyone needs transit as a medium to go. Transport is a human of import demand following to other basic demands such as nutrients, apparels and houses. Nowadays, auto is the figure one ranking in the list of major conveyances.

Other than a house, a auto is possibly the largest purchase that we make. Byun ( 2001 ) addressed that autos touch the lives of 100s of 1000000s of people about everyplace on this planet on a day-to-day footing.Today, autos are technologically advanced. At the same clip, people have become more demanding. When person decides to buy a auto, the theoretical account is chosen harmonizing to its public presentation, safety, exterior and other factors. Furthermore, auto purchasers want a auto that suits their demands, manners, calling and household excessively.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Among all these standards, we might desire to cognize what auto purchasers have in head when buying a auto. This issue has been discussed by Byun ( 2001 ) and Norhaslinda et Al. ( 2003 ) .The major intent for people to purchase a auto is for going either to workplace or anyplace else. This includes the academic staffs of International Education Center ( INTEC ) Kampus UiTM Section 17, Shah Alam.

Making determination in buying a auto is of import facet among university staffs since a batch of standards demands to be taken into history. Most academicians have no hole working hours. Sometimes they need to remain after working hours due to excess categories or scrutinies which are usually held at dark and besides over the weekends. Therefore, a dependable auto with security characteristics might be one of the standards that should be put into consideration, specifically by female academicians. They might besides necessitate a compact and economic auto with low fuel ingestion for their life since INTEC is located at the centre of Shah Alam metropolis.

Therefore a proper technique is needed to steer the academician to choose a suited auto.The proposed technique which is Analytic Hierarchy Process ( AHP ) will assist auto purchasers to do determination in proper mode and cut downing the per centum of dissatisfaction. Multi criteria determination devising analysis requires people to choose their auto in an nonsubjective mode, taking all factors and their ain precedences into history.

Therefore, in this survey, the research workers examined the precedence of standards involved in choosing a auto by utilizing the multi standards determination doing analysis specifically the AHP method. Research inquiries sing the factors that INTEC staff focuses on and the most of import standards in choosing a auto are hopefully answered. This survey lead to utile findings and will be able to supply information to the makers to better their merchandises.

Positions from the staff as auto purchasers ( standards that should be considered ) are really of import for the car industry since they are portion of the major auto purchasers in Malaysia. Doing so, they can detect customersaa‚¬a„? demands and penchants. Besides that, our national autos can be more competitory in the universe market.There are two aims to be fulfilled in this survey:To find the precedence of car purchase standards.To find the differences of ranking the standards based on gender and matrimonial position.

This research was merely concentrating on the outlook of auto purchasers for the purchase of new autos. One of the premises implicit in using this technique was that the respondents doing the picks and paired comparing are mature plenty to cognize the right precedences. The survey besides assumes that the respondents are able to compare two or more autos on each of the property. In many instances it may so go on that the respondents have ne’er experienced with listed auto ; hence, it becomes impossible to do nonsubjective comparing with other autos on many of the properties. The spread has been overcome by supplying sufficient information to the respondents.In this research, the picks of autos were limited to the national autos that are still being manufactured by Proton and Perodua.The theoretical accounts of autos are as listed:Proton ( Perdana, Saga, Satria-Neo, Gen-2, Waja Campro, Savvy, Persona, Chancellor ) .Perodua ( Kancil, Kenari, Rusa, Viva, MyVi ) .

2 Literature reappraisal

2.1 Standards involved in purchasing a auto

Buying a auto is the one of most of import determination devising. There are many standards to look at. Byun ( 2001 ) listed seven standards in the choice of a auto theoretical account. Each standard has its ain properties. The standards and properties were listed in Table 1:Table 1: The standards in auto choice

Standards

Properties

Exterior ( E )Model, manner, length, ornament, coloring material type, instrument bunchConvenience ( C )In side breadth, lading, operating, adjustment, visibleness, sound systemPerformance ( P )Torque, velocity, fuel armored combat vehicle, braking, cornering, noise, comfortSafety ( S )Air bags, impact, bole, place belt, organic structure, dismayEconomic facet ( EA )Monetary value, fuel, insurance, resale, equipmentDealer ( D )Visit, attitude, expertness, beliefWarranty ( W )Service station, trim portion, satisfaction, fix clip

2.2 The Analytical Hierarchy Process ( AHP )

In multi standards determination devising, a technique called Analytic Hierarchy Process ( AHP ) provides a construction on decision-making procedure.

AHP is an attack to determination doing that involves structuring multiple pick standards into a hierarchy, measuring the comparative importance of these standards, comparing options for each standard, and finding an overall ranking of the options. The construct of AHP was developed, amongst other theories, by Thomas Saaty, an American mathematician working at the University of Pittsburgh ( Power, 2007 ) .The pattern of AHP can be applied in assorted Fieldss as discussed by Gibney and Shang ( 2007 ) , Ray ( 2007 ) , Liberatore and Nydick, ( 2007 ) , Sirikrai and Tang ( 2006 ) , Byun ( 2001 ) and Norhaslinda et Al. ( 2003 ) . In the automotive industry, Sirikrai and Tang ( 2006 ) present an AHP-based theoretical account to comprehensively research the changing grades of importance among the indexs and drivers of industrial fight. The theoretical account helps to place the grade to which organisational public presentation indexs are of import when measuring industrial fight. Furthermore, it helps to measure the importance of peculiar factors that drive houses to execute better.

The paper presents an application of this theoretical account by using it to the automotive constituents industry in Thailand.On the other manus, Norhaslinda et Al. ( 2003 ) studied the AHP attack for choosing a auto among the academic staff in Northern University of Malaysia. They found that there are six standards to be considered. The standards were ranked orderly. The first standard was safety, followed by economic facet, care, public presentation, convenience and design. Therefore, this survey will lend to another AHP application in the car industry. The focal point is on the usage of the AHP method to analyse automobile purchase standards, therefore lead the determination shaper to buy a suited auto.

3 Methodology

This survey was conducted in two stages. The first stage was the preparation stage where the basic choice job was formulated as a multi standard determination devising job. The 2nd stage was the presentation stage where the formulated job was really applied on a set of participants in the survey to come out with decisions for future research. The whole procedure started with ( 1 ) job definition, ( 2 ) instrument and information assemblage, and ( 3 ) information analysis.Data aggregation was conducted in two stages by utilizing two sets of questionnaires. In the first stage, a study of auto popularity was conducted.

A set of questionnaire was used as the instrument. There were 22 respondents for this study. In the questionnaire, they were asked to rate ( mark of 1 to 5 ) all national auto theoretical accounts in Malaysia.

13 different autos from national auto makers ( Proton and Perodua ) were listed as options. The autos were Proton ( Perdana, Saga, Satria Neo, Waja Campro, Gen-2, Savvy, Persona, and Chancellor ) and Perodua ( Kancil, Kenari, Rusa, Viva, MyVi ) . Five autos which received the highest mean were included in the Second Phase Survey.In the 2nd stage of the informations aggregation, the choice job was so formulated utilizing the seven elements that serve as the standards for choice. The standards which were adopted from Byun ( 2001 ) were exterior, convenience, public presentation, safety, economic facet, trader, guarantee. Pilot trial was conducted to prove the 2nd stage questionnaire.

These will steer the research workers to build a good questionnaire before administering it to the respondents.The existent questionnaire that used AHP attack was distributed after the pilot trial has been done. For the intent of this attack, convenience sampling of size 65 was used in this survey ( beginning from Registraraa‚¬a„?s Office, entire figure of academic staff in INTEC was 124 in August 2008 ) . In the AHP method, the respondents had to find how good each alternate tonss on a standard by utilizing pair wise comparing. In the brace wise comparing, the respondents compared two options harmonizing to one standard and bespeak a penchant ( Taylor, 2007 ) .The respondents were required to reply two subdivisions ( Refer Table 2 ) .

In the first subdivision, respondents were required to give their demographic specifics. In the 2nd subdivision, all the respondents participated in the survey were required on evaluation the brace wise comparing of the seven standards and options. They were asked to rate the brace on the footing of what they think one should experience of import in choosing a auto. The AHP preparation was so solved.

Data Analysis Approach

Saaty ( 1980 ) developed the Analytic Hierarchy Process ( AHP ) to enable determination devising in state of affairss characterized by multiple properties and options. AHP allows choice and precedence ordination of options based on multiple standards.

It is a determination tool that structures a complex determination job in a hierarchal manner, leting comparing of touchable and intangible factors, and sets precedences among alternate class of action ( Foreman & A ; Gass, 2001 ) . Saaty ( 1980 ) developed the undermentioned stairss for using the AHP:Define the job and find its end.Elicit brace wise comparings between the factors utilizing inputs from determination shapers.

-Pair wise comparing of the elements will let the derivation of priority/significance weights for the elements. While comparing two elements we followed the simple regulation as recommended by Saaty ( 1980 ) , though more complicated methods utilizing fuzzed triangular Numberss were frequently used to ascribe values to lingual variables. The valued assigned to a comparing can run from 1/9 to 9, where 1/9 would connote that the one component is highly less of import than the other and 9 implies that the component is highly more of import than the other ( Saaty, 1980 ) .Table 2: Preference graduated table for brace wise comparing

Preference degree

Numeric Value

Equally preferable1Equally to reasonably preferable2Reasonably preferable3Reasonably to strongly preferred4Strongly preferred5Strongly to really strongly preferred6Very strongly preferred7Very strongly to highly preferable8Highly preferable9Evaluate comparative importance weights at each degree of the hierarchy.Combine comparative importance weights to obtain an overall ranking of the campaigner options.-Using the rule of hierarchal composing, synthesise all the local set of weights and obtain the set of overall or planetary weights for the options.

The option that receives the overall highest weight with regard to the end of the job is selected as the best. Figure 1 presents the determination job as formulated under AHP.

Car Choice

C

Tocopherol

Tungsten

Phosphorus

Second

Ea

Calciferol

Car 1

Car 5

Car 2

Car 3

Car 4

Figure 1: Hierarchical construction of the auto choice jobThe top degree of the hierarchy represents the aim of the determination job. In this instance, choice of the auto was the determination job being addressed. The set of picks from which a choice has to be made was the last degree of the hierarchy. There were five picks to be considered. This degree can hold every bit many options as one wishes without the demand to modify the procedure of obtaining the penchant weights. The assorted standards that need to be satisfied and any classification of such standards make up the in-between degree of the hierarchy.

The job formulated above was that of choosing a auto from the five options, Car 1, Car 2, Car 3, Car 4 and Car 5. The determination will be based on the comparative importance of the elements for the respondents and the grade of fulfilment of the elements by each of the auto. Car with the highest entire evaluation, which was obtained through a synthesis procedure, was the one to be selected.

4 Data Analysis and Findingss

4.1 First stage analysis

The aim of this study was to find five national auto theoretical accounts that received the highest mean. Then, the five auto theoretical accounts were so included in the Second Phase Survey. 13 different autos from two national auto makers ( Proton and Perodua ) were listed as options.

Evaluations from 22 respondents are shown in Table 3. It shows that five autos which received the highest mean in falling orders are Perodua Myvi, Perodua Kancil, Proton Gen-2, Proton Waja Campro and Proton Perdana with agencies 4.68, 4.41, 3.95, 3.73, and 3.73 severally.Table 3: Average value for auto theoretical accounts

Car Model

Mean Value

Perodua Kenari

1.

02

Perodua MyVi

4.68

Perodua Kancil

4.41

Proton Gen2

3.95

Proton Waja Campro

3.73

Proton Perdana

3.73

Perodua Viva

3.36

Proton Persona

3.

32

Proton Saga

3.23

Proton Satria Neo

3.09

Proton Savvy

2.86

Perodua Rusa

1.91

Proton Chancellor

1.

82

4.2 Second stage analysis

4.2.1 Descriptive analysis

The sum-up of the respondentsaa‚¬a„? profile is tabulated in the undermentioned tabular arraies.Table 4: Summary of distributed and returned questionnaire

Staff

Number of questionnaire

Target sample

Consistent

Academic staff6557There were 88 questionnaires indiscriminately distributed to the academic staff in INTEC. However, merely 65 were returned. From the 65 questionnaires, there were 57 respondents that could be considered as consistent in replying the inquiries.

Consistent in AHP technique is referred to the value of Consistency Ratio ( CR ) . The CR was extracted from the analysis done utilizing Expert Choice 11.5. The CR values will be accepted if it does non transcend 0.10.

If it is more, the judgement matrix of AHP is inconsistent. So, the questionnaire was excluded.Table 5: Summary of respondents harmonizing to age group

Age group

Frequency

Percentage

& lt ; 251729.825-393256.1& gt ; 40 or equal814.0Entire57100.

0Based on Table 5, more than half of the respondents are in the age group 25-39. This determination is rather similar to INTEC academic staff population where more than half of the academicians are in the age of 25-39. Merely 14 % ( 8 ) of the respondents are 40 old ages old and above. Meanwhile, 30 % ( 17 ) of respondents are younger than 25.Table 6: Summary of respondents harmonizing to gender

Gender

Frequency

Percentage

Male

14

24.

6

Female

43

75.4

Entire

57

100.0

In Table 6, 75 % of the respondents are female. This determination supports the scenario that the female are the bulk gender in instruction field. Males are merely 27 % ( 25 ) .Table 7: Summary of respondents harmonizing to matrimonial position

Marital Status

Frequency

Percentage

Single

31

54.4

Married

26

45.

6

Entire

57

100.0

Table 7 shows that the respondents are rather equal value in footings of matrimonial position. 46 % of the respondents are married while the remainder are still individual.

4.2.

2 The precedence of car purchase standards

All questionnaires in Second Phase were analyzed utilizing the AHP process. The analyses were done by utilizing Expert Choice 11.5. The first measure is to find the consistence value of each questionnaire. Consequences showed that from 65 distributed questionnaires, 57 ( 88 % ) were consistent. Inconsistent questionnaire will non be included in the analysis. Overall analyses were done to see the comparative importance weights obtained by all factors. The consequences are shown in Table 8.

It shows that the weight for public presentation is 0.1762 which is the highest mark among the other 6 standards. The other standards scored are ; safety ( 0.1758 ) , economic facet ( 0.1713 ) , guarantee ( 0.1425 ) , exterior ( 0.

1221 ) and trader ( 0.0806 ) .Table 8: The degree of importance for standard in auto choice

Standards

Weight

Ranking

Performance0.1762941Safety0.1757782Economic facet0.1712543Guarantee0.1425474Convenience0.1314915Outside0.

1221046Trader0.0806207

4.2.3 Priority of car purchase standards based on gender

Table 9 shows that males focus more on the public presentation of the auto, the economic facets and safety before purchasing a auto. While for the female respondents, they prioritize more on safety, public presentation and economic facets.

Both have the same penchant in ranking the other standards. They agreed that guarantee, convenience, exterior and trader are less of import.Table 9: The precedence of car purchase standards based on gender

Outside

Convenience

Performance

Safety

Economic

Trader

Guarantee

Male

0.

12200.13430.18090.16650.

17820.07870.1395

Rank

6

5

1

3

2

7

4

Female

0.12210.13060.17480.

17880.16900.08120.1435

Rank

6

5

2

1

3

7

4

4.

2.4 Priority of car purchase standards based on matrimonial position

The precedence of car purchase standards based on matrimonial position is reported in Table 10. The respondents who are individual preferable to look at the economic facets foremost compared to those who are married who focus more on the public presentation of the auto. Both of the two groups agreed that safety is the 2nd factor that needs to be considered.

They besides agreed that the trader is the least importance facet to look at earlier buying a auto.Table 10: The precedence of car purchase standards based on matrimonial position

Outside

Convenience

Performance

Safety

Economic

Trader

Guarantee

Single

0.10810.

14340.17230.17290.17340.08950.1406

rank

6

4

3

2

1

7

5

Married

0.

13880.11730.18110.17920.

16870.07000.1448

rank

5

6

1

2

3

7

4

Summary and decision

The car purchase standards and the choice of auto were analyzed by the Analytical Hierarchy Process method. From the analysis, car purchase standards ; public presentation, safety, economic, guarantee, convenience, exterior and trader were rated in a descending mode. Car public presentation, as one of the determination doing standards was found to hold the highest weight.

This determination is consistent with the determination from Byun ( 2001 ) . Byunaa‚¬a„?s happening indicated that safety is the top precedence, public presentation as the 2nd factor, followed by economic facet, exterior, convenience, guarantee and trader. Byun listed down seven sub-criteria related to safety, which are organic structure of the auto, place belts, ABS, dismay, airbags, impact and bole. In footings of public presentation, seven sub-criteria have besides been considered ; braking, noise, cornering, velocity, torsion, comfort and fuel armored combat vehicle.We found that the male respondents gave higher precedence to the public presentation of the auto compared to the female who were prioritising more on safety. It is common that work forces ever look at the public presentation of autos and adult females more to safety. They agreed that guarantee, convenience, exterior and trader are less of import when taking the right auto.

In footings of matrimonial position, respondents who were singles considered the economic facet, safety, and public presentation of the auto as standards in their determination devising. However, for those who were married with kids, they preferred to look at the public presentation of the auto. The respondents who were married without kids agreed that they would see safety and economic facets. The respondents who were singles focused more on the economic facet, possibly they might be salvaging money for future programs like nuptials.