This study empirically identifies, from a real estate perspective, the differential mechanisms through which the demand characteristics and selection factors of customers visiting automobile service centers operate by location type. In Korea, vehicle ...
This study empirically identifies, from a real estate perspective, the differential mechanisms through which the demand characteristics and selection factors of customers visiting automobile service centers operate by location type. In Korea, vehicle registrations have grown steadily while the number of repair establishments has remained stagnant, intensifying competition and raising the importance of differentiating factors such as location, service quality, and technical expertise. This study classifies automobile service centers into three location types — urban, suburban, and industrial complex — and analyzes how visiting customers' demand characteristics and selection factors differ across these types.
The theoretical foundation draws on location theory in real estate (the three major theories of urban spatial structure, the four-type classification of retail establishments, central place theory, and bid-rent theory) and on key prior research in the automobile repair field. In particular, the industrial complex type is academically established as a hybrid location that combines the multi-layered customer base of the urban type with the sufficient site and Class 1 comprehensive repair facilities of the suburban type, while also securing B2B transactions, commercial-vehicle repair demand, expressway access, and industrial cluster effects specific to industrial complexes.
The main findings are as follows. First, the empirical validity of the five-factor structure — geographic location, technical expertise, service quality and reliability, economic feasibility, and facility environment — was confirmed. Second, visiting customers were classified into two heterogeneous groups: the quality- and service-oriented type and the practical, balanced type. Third, economic feasibility and technical expertise showed significant associations with demand type, with economic feasibility most prominent. Fourth, respondents who emphasized geographic location tended to choose the urban type, while those who emphasized technical expertise tended to choose non-urban types; vehicle model year emerged as the most strongly associated factor, with owners of older vehicles showing a strong preference for the industrial complex type. Fifth, a statistically significant association was confirmed between demand type and the actual location visited, and the quality- and service-oriented type consistently showed higher overall satisfaction, service quality satisfaction, and revisit intention.
The spatial pattern in which repair demand for older vehicles differentiates toward the industrial complex type suggests that the spatial differentiation of automobile service centers forms in linkage with the vehicle life cycle and repair complexity. By integrating the analysis of location and selection factors and demonstrating the applicability of real estate location theory to the automobile repair field, this study contributes academically and presents the need for differentiated service and management strategies by demand and location type.