Nice to See Nice to Hold, Once Broken Considered Sold: The Effects of Risk Perception and Service Quality on Customer Satisfaction in Second Hand Market

Abstract

The effects of risk perception and service quality towards customer satisfaction and customer loyaltyon the purchase of goods have been widely discovered in many areas. However, a search of theliterature revealed that only a few researches has been conducted in the second-hand market. Hence,this has led to more recent arguments and continuous debates on the effects of risk perception andservice quality towards customer satisfaction and customer loyalty on consumer’s purchasingdecision of used goods. Therefore, the aim of the current research is to propose a structural model onthe effects of risk perception and service quality towards customer satisfaction and customer loyaltyon consumer’s purchasing decision of used goods. The empirical data for the present study wereobtained through a quantitative research method conducted on a total of 376 respondents.Accordingly, a conceptual framework associated with risk perception, service quality, customersatisfaction, and customer loyalty of used goods was developed using a structural equation model.The results obtained in the current research were supported by the developed model. The overallfindings revealed that a positively strong relationship between risk perception, service quality,customer satisfaction, and customer loyalty. The findings of the current research indicate a verystrong relationship between risk perception, customer satisfaction, customer loyalty, and servicequality in the second-hand market, thus supporting the model development. To the best of the author’sknowledge, this is the first research involving the second-hand market which successfully exploredrisk perception, service quality, customer satisfaction, and customer loyalty in Malaysia by furtherdepicting new perspectives for future investigations.