Customer’s perception towards product quality of automotive SMEs operating in Metropolitan areas, and consideration of environmental impact

Abstract

This paper examines customer’s perception towards product quality of automotive SMEs operating in the Durban metropolitan areas and identifies how small and medium enterprises (SMEs) in South Africa (SA) contribute significantly to job creation, wealth, social stability, economic growth and reduction of poverty. Product quality of automotive SMEs requires serious attention, as it can have ecological environmental impact leading to the negative economic growth contributed by the industry. The study is aimed to understand the factors affecting automotive SMEs in order to help entrepreneurs to improve product quality and examining the customer’s perception towards product quality. The sample size of the study was 120 SMEs selected using convenience sampling with respondents completing the questionnaire. A combined method of both quantitative and qualitative techniques was employed, while the analysis of data was done using the Statistics Package for Social Scientists (SPSS) version 23.0. The findings of the study revealed that lack of managerial skills and development negatively compromises product quality of the automotive sector. Also the results indicate that the absence of financial support from financial institutions delays the improvement of stock in the business, as this is an obstacle resulting in the unsustainability of the SMEs. Further research with larger samples and the consideration of other cities is recommended.