Decision Analysis on the Customer Preferences of Automobiles using AHP-TOPSIS Model

Abstract

Vehicle registration has surpassed the number of populations in Malaysia in 2021. Automobiles remain the preferred mode of transport with the top brands including Perodua, Proton, and Toyota in Malaysia. The local automotive industry is facing various challenges such as robotics and automation, sustainability, and resource scarcity in the supply chain. Therefore, this paper aims to propose a research framework for studying the consumer preferences of local car models in Malaysia using the integration of Analytic Hierarchy Process (AHP) and the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) models. In the first stage, AHP model is used to determine the weights of main decision criteria and sub-criteria. In the second stage, the weights of the decision alternatives are determined using TOPSIS model. In this study, the main decision criteria include design, convenience, performance, safety and economic aspect. This study shows that safety, economic aspect, and design are the top three main decision criteria in the consumer preferences of local car models. In addition, car price, engine capacity, style and aerodynamic designs are the three most influential sub-criteria affecting consumer preferences of local car models. Besides, Perodua Myvi appears as the most preferred car model based on the highest relative closeness coefficient, followed by Proton Persona, Perodua Bezza, Proton Saga, Perodua Axia and Proton Iriz. This paper contributes by providing insights to local automotive industry to improve based on the top influential criteria affecting car model selection in Malaysia.