Measuring Service Quality in a Corporatised Public Sector Environment

ABSTRACT

Using a modified SERVQUAL scale, this paper measures perceived service quality in a corporatised public sector environment. Five factors were identified: personalised proficiency, empathic professionalism, reliability, tangibles and access; explaining 61% of overall variance. Further analysis using multiple regression also indicated that 45% of the variability in customer satisfaction and 43% of the variability in overall service quality was explained by the five factors. The research was conducted in response to calls for the application of this measure and following a review of extant literature that indicated the limited number of studies undertaken within the public sector that assessed service quality.     

The effects of service quality,perceived value and trust in home delivery service personnel on customer satisfaction: Evidence from a developing country

The rapid growth of online purchasing in recent years has emphasized the accompanying role of home delivery service provided by delivery personnel in ensuring customer satisfaction. On-time delivery, better service, generating positive customer perceived value, and trust towards service providers are influential factors that contribute to customer satisfaction. The aim of the study was to investigate the effects of service quality of home delivery personnel and perceived value on customer satisfaction, with trust playing an intervening role. It was conducted in Dhaka, Bangladesh, a less developed country with a new but rapidly growing digital sector. Data was collected from 259 respondents who received home delivery service, using a structured questionnaire. The conceptual model was analysed using partial least square structural equation modelling (PLS-SEM) with SmartPLS tool. The findings revealed that service quality, customer perceived value, and trust influenced customer satisfaction. The relationship between service quality and customer satisfaction and the relationship between customer perceived value and satisfaction were both partially mediated by trust. The findings contribute to the development and validation of a trust-based satisfaction model by extending the SERVQUAL model to incorporate perceived value in the presence of trust, while complying with expectation disconfirmation theory This study provides insights for managers to develop reliability and build trust in their service delivery personnel.     

Public service quality and customer satisfaction: exploring the attributes of service quality in the public sector

Beyond the existing SERVQUAL-based research, the authors develop an alternative model of public service quality. The various sources of public service quality are explored and a new classification scheme formulated by using critical incidents technique. Four main qualities of public service are identified: process quality, outcome quality, design quality, and relationship quality. The findings suggest that the critical attributes of public service quality for customer satisfaction differ according to the types of customers in the public sector. Final customers (beneficiaries) give priority to the process and outcome qualities, whereas intermediary customers (social workers) have high regard for the design and relationship qualities.     

Zone of tolerance for banks: a diagnostic model of service quality

Service quality has become an increasingly important factor for success and survival in the banking sector. Provision of high-quality service aids in meeting several requirements such as customer satisfaction and its consequent loyalty and market share, soliciting new customers, financial performance, and profitability (Cui, C.C., Lewis, B.R., & Park, W. (2003). Service quality measurement in the banking sector in South Korea. International Journal of Bank Marketing, 21(4), 191–201.). This paper presents the bank service quality measurement in its extended form. It deals with the concept of ‘zone of tolerance’ in judgments of service quality proposed by Zeithaml, Berry, and Parasuraman (1993, The nature and determinants of customer expectations of service. Journal of the Academy of Marketing Science, 21(1), 1–12.). The ‘zone of tolerance’ is recognized in the service quality literature as representing a range of expectations and an area of acceptable outcomes in service interactions. The present study describes the zone of tolerance for young customers’ service expectations and determines the customer satisfaction level for banks. The study focusses only on the youth market to formulate long-term strategies because young customers tend to keep themselves up to date with latest technological developments. A conceptual model BANKZOT is presented in this study, and the results demonstrate that evaluation of services can be scaled according to different types of expectations – ‘desired' and ‘adequate’ – and that customers use these two types of expectations as a comparison standard in evaluating bank services. The findings reveal that young customers have a narrow zone of tolerance with regard to the services provided by the banks. The results with respect to gap analysis reveal that there was a shortfall in the service quality provided by the banks in the sample, with the largest gap being found in tangibles and empathy of service quality dimensions. The results of exploratory factor analysis reveal that the SERVQUAL model is found to be uni-dimensional in this study. The results, managerial implications, and future research implications are discussed in detail.     

Hospice Informal Caregivers' Perception of a Good Death Experience: A SERVQUAL Analysis

ABSTRACT

This research study explores hospice informal caregivers' perceptions of service quality and a good death experience during end-of-life care. It demonstrates how service dimensions of the SERVQUAL analysis affect overall customer satisfaction. This study addresses contrast and dissonance theory as relative to marginal gaps in actual service performance and the effect on overall customer satisfaction. The research indicated that while reliability was the core of the service outcome, peripheral variables (e.g., assurance, empathy, responsiveness, and tangibility) integrated emotions and feelings into the hospice service process that equated to a positive disconfirmation of expectations and a good death experience.     

Modelling and Investigating the relationship of after sales service quality with customer satisfaction,retention and loyalty – A case study of home appliances business

After sales services (ASS) are activities that take place after the purchase of the product by customers and are devoted to supporting customers in the use and disposal of goods. ASS can create sustainable relationships with customers and contribute significantly to customer satisfaction. The purpose of this study is to evaluate the ASS quality by measuring the level of customer satisfaction (CS), customer retention (CR) and customer loyalty (CL) through the SERVQUAL dimensions comprising of ASS attributes and also to check which such ASS-based dimensions of SERVQUAL needs to be focused more on improving the quality of ASS with the consideration of firms involved in manufacturing the home appliances. For this purpose research models were proposed to examine the influence of ASS attributes on CS, CR and CL for three different products such as Gas Stove, Water Purifier and Mixer Grinder from the home appliances sector and tested by multiple regression analyses on data collected through the structured survey questionnaire, with a five-point Likert scale. The study has demonstrated the application of multiple regression analysis in studying the influence of ASS attributes on CS, CR and CL, and the results of the study have helped in analysing the performance of the case companies so as to devise suitable strategies in improving CS, CR and CL.     

Hotel Service Recovery and Service Quality: Influences of Corporate Image and Generational Differences in the Relationship between Customer Satisfaction and Loyalty

ABSTRACT

As the number of tourists continues to grow globally, the hospitality industry players inevitably face more challenges. High competition among the competitors and the emergence of new technologies such as online booking platforms make the competition more intense among players in the hospitality sector. The quality of services provided is undoubtedly crucial to the success of the hotel. Hence, any service failure has to be addressed appropriately in order to maintain a high level of customer satisfaction and to keep the image of the hotel intact. It is therefore vital that service recovery programs are carefully planned to meet various types of service failures which may inevitably occur. In this study, questionnaires were distributed to customers who had experienced service failures. The aim was to investigate the influence of service quality and service recovery on satisfaction and, ultimately, the effect on customer loyalty. The research also tested the mediating effect of corporate image between the relationship of customer satisfaction and customer loyalty. The findings showed that both service recovery and service quality had a significant impact on customer satisfaction. Similarly, it was found that customer satisfaction induced customer loyalty towards the hotel operator. The result also showed that corporate image mediated partially between the relationship of customer satisfaction and customer loyalty.     

A Typology for Evaluating Branch-Level Perceptions of Internal Customer Management Processes within the UK Clearing Banks

Since the late 1980, the UK Clearing Banks have faced growing criticism over the quality of their finanical services. Advantages may exist in using internal marketing to ensure closer integration of multiple functions across all departments. Although adoption of an internal marketing philosophy may improve the quality of services delivered to both internal and external customers, it appears that there are few paradigms available which can be used by bankers seeking to introduce the concept into their organisation. By applying a quasi-ethnographic approach, a qualitative internal customer management model was developed based on the Peters and Waterman 7s framework to describe the factors influencing internal customer relationship which exist between branches and other departments within a bank. To determine if the model could be used to evaluate branch-level perceptions of internal customer management practices, a survey was undertaken using a modifed version of the Parasuraman SERVQUAL model. The responses suggest that possible actions to establish a stronger internal customer orientation may include altering prevailing management styles, restructuring, redirecting operational strategies away from excessive emphasis on technical efficiency and improving understanding of internal customer needs. Although the study indicates that the SERVQUAL tool can be used to examine internal customer service processes within the financial services sector, there is still only anecdotal evidence that stronger internal customer chains will enhance organisational performance. Further research is needed to validate claims that there are favourable cost/benefit outcomes to be exploited by strengthing internal customer management practices. For bankers who are convinced that changing internal organisational processes may enhance the quality of services delivered to external customers, then a process flow model is presented of a possible approach for evaluating and implementing changes necessary to create a stronger internal customer orientation within their organisation.     

The Advisor-SMF Client Relationship: Impact,Satisfaction and Commitment

This paper investigates the relationship between the type of business advisors used by SMEs and the level of impact and satisfaction a SME receives. The role of other influences, such as the intensity and cost of the service, and the level of commitment to an advisor by the client are also investigated. A structural equation path model is estimated from survey information for SMEs in Britain. The analysis shows that customer impact, satisfaction and re-use intentions are related to the character of the firm (particularly its size), the intensity and cost of services, but is only marginally influenced by the geographical distance between advisor and client. Affective commitment, measured by the level of the ‘trust’ of the advisor by the client, is shown not to be significant, except for public sector and business association suppliers. The importance of trust to these suppliers, despite the low satisfaction levels they achieve, is argued to be incompatible with attempts to charge fees, as has been sought for the government network of Business Link. Both business associations and public sector support bodies therefore have severe limitations in combining their broader roles with a commercially- based fee-based income strategy.     

Service Quality Expectations: Exploring the Importance of SERVQUAL Dimensions from Different Nonprofit Constituent Groups

Given the multiplicity of “customers” in the nonprofit sector, the need for nonprofits to ensure that quality service delivery matches customer expectations is difficult yet paramount. Nonprofit organizations serve several constituent groups: the service recipient, donor, volunteer, and general public at large. While each constituent group may not be perceived as a customer in the general sense, each group is making quality assessments that may affect performance evaluations, donations, volunteerism, and brand equity decisions. Hypothesis support was found, distinguishing between the importance of the different SERVQUAL dimensions and the perspective roles played within the nonprofit scenarios. Respondents playing the role of volunteer rated Empathy and Assurance highest and Tangibles lowest. Respondents playing the role of donor rated Reliability and Tangibles highest and Empathy lowest. Respondents playing the role of recipients rated Empathy and Responsiveness highest and Tangibles lowest. Finally, respondents playing the role of volunteer rated Assurance and Reliability highest and Tangibles lowest.     

Translating satisfaction determination from health care to the automotive industry

This study is based on the case of BMW, and aims to improve the determination of perceived consumer satisfaction in the automotive industry by transferring existing knowledge from the health care sector. A literature analysis of the health care sector and the automotive industry was conducted to identify the common concepts of determining satisfaction. These were the service encounter, situational factors, and sociodemographics. The practical application was tested by analyzing a contemporary survey from BMW. Based on the findings, managers responsible for customer satisfaction in after-sales services in the automotive industry could improve measurement of customer satisfaction.     

A New Look at the Antecedents and Consequences of Relationship Quality in the Hotel Service Environment

Abstract

As economic conditions improve, hotels are investing in new ways to improve service quality and perceived value that hopefully will lead to better customer satisfaction and loyalty. This study took a new look, with newly developed scales, at the antecedents and consequences of relationship quality in the hotel service environment to shed new light on the factors hotels have to deal with to achieve their objective of satisfied and loyal customers. Using a structural equation model, it was determined that the tangible and intangible factors of perceived value, timeliness, and hotel facilities are antecedents of hotel quality. Hotel quality, subsequently, is a determinant of both customer satisfaction and loyalty. However, consistent with previous research, customer satisfaction is not a guarantee of customer loyalty.     

Methods for determining areas for improvement based on the design of customer surveys

Many firms conduct satisfaction surveys of their customers, with a view to using the analyzed results to identify areas of potential improvement. The weakness in this approach is that attributes with a lower satisfaction level might not be in need of improvement. They might merely be of little concern to customers. The present research develops several methods to identify areas that do require improvement. These methods include the importance–satisfaction (I–S) model, the improvement index, the quality-improvement index, the SERVQUAL survey, Kano's model, the extent of satisfaction, and the extent of dissatisfaction. An integrated model of service-quality measurement is used to cover all the customer surveys required for an international certification service company. In the case study, valuable information of various kinds is obtained from an analysis of the customer surveys. On the basis of this information, the firm can make appropriate decisions on areas for improvement, which are significantly different from those identified on the basis of a simple satisfaction survey.     

Cultural influences on B2B service quality-satisfaction-loyalty

The link between service quality, customer satisfaction, and customer loyalty has drawn the attention of both academic researchers and practitioners. They are also focusing on the effect of cultural differences on customer attitudes and behaviour in the global service industry. This paper examines the relationships between service quality, customer satisfaction, and loyalty as well as the moderating effect of cultural differences on the above relationships in the industrial business-to-business (B2B) service sector. The paper presents an empirical study using datasets collected from 7652 industrial customers across 55 countries and uses structural equation modeling (SEM) to test the hypotheses. The application of Net Promoter Score (NPS) as a customer loyalty metric based on customer experience management (CEM) is studied in relation to customer satisfaction. The study results demonstrate the positive relationship of service quality, satisfaction, and loyalty. In terms of the effect of cultural differences, the study finds that cultural dimensions of uncertainty avoidance negatively moderate the relationship between service quality and satisfaction, while individualism positively moderates the relationship between service quality and satisfaction. However, cultural differences do not impact on the relationship between satisfaction and loyalty.     

The behavioural sequence of the financial services industry in Taiwan: Service quality,relationship quality and behavioural loyalty

This study develops and empirically tests a model for examination of the relations among service quality scales, relationship bonding tactics, customer satisfaction, trust and commitment, and customer behavioural loyalty in a relationship marketing system. This paper aims to test the relationship between perceived service quality satisfaction and relationship intentions, or, in other words, whether or not consumers will consider building long-term relationships with service providers on the basis of a single instance of perceived service quality. Based on three groups of samples from XYZ bank, one of the most famous banks providing merchant banking services in Taiwan, the findings suggest that financial products with different product attributes need different kinds and levels of service and relationship investment. The findings also suggest that there does exist a positive relationship between service quality satisfaction and perceived relationship investment.     

Service quality dimensions and superior customer perceived value in retail banks: An empirical study on Mexican consumers

This study concerns the service quality topic in the retail bank sector. A sample of 209 retail bank clients was taken, measuring the performance of service quality attributes of their principle retail bank. Behavioral performance variables such as satisfaction, loyalty and customer perceived value were also measured. In a factor analyses the attributes were separated into three factors. These three independent factors explain a considerable amount of variability of a satisfaction–loyalty factor. On the other hand, they could not explain the superior perceived value; and no differences between the service quality performances of the bank brands were found. In conclusion, regardless of the degree of satisfaction and loyalty, the customer is not willing to pay more for banking services at his regular bank than he would at other brands. This implies that superior perceived value is not being achieved via service quality, which suggests a lack of differentiation between brands in this sector.     

An Integrated Model of Quality for Mass Services in the Context of the Ghanaian Retail Banking Sector

This study draws upon the service literature and operationalizes the investment model in the services domain to examine factors that contribute to customers’ desire to maintain service relationships with firms (i.e., retail banks) in an emerging economy in sub‐Saharan Africa: Ghana. We empirically test the explanatory power and robustness of the investment model using 218 customers of various banking institutions in Ghana. Results from partial least squares—structural equation modeling (PLS‐SEM)—reveal that (1) service quality is positively associated with customer satisfaction, investment size, and customer commitment; and (2) while customer satisfaction is positively associated with customer commitment, both investment size and quality of attractive alternatives are not associated with customer commitment. Interestingly, we found investment size to have a positive association with customer commitment only when fully mediated by customer satisfaction. Our model reveals that service quality and customer satisfaction predict 79.3% of the variation in customer commitment toward maintaining a service relationship with their retail banks. Discussion and managerial implications conclude the article. © 2015 Wiley Periodicals, Inc.     

The happy versus unhappy service worker in the service encounter:Assessing the impact on customer satisfaction

This paper assesses the impact of the service worker's display of emotions (i.e., one aspect of functional service quality) on customer satisfaction under the conditions of different levels of technical service quality by means of an experimental approach (N=600), in which display of emotions (unhappiness vs. happiness) and technical service quality (poor vs. good) were manipulated. The results indicate that the impact of the service worker's emotional display behavior on customer satisfaction is contingent on the level of technical service quality, in the sense that customer satisfaction is affected only when technical service quality is good rather than poor. Encouraging a positive display (e.g., by a smile policy), which many service firms do, is thus not a panacea for improved customer satisfaction. The moderating effect is explained in terms of service encounter congruency, which influences the mediated process by which emotional displays by service workers come to affect customer satisfaction.     

Research on the influence of after-sales service quality factors on customer satisfaction

Determining customer satisfaction elements in retailing after-sales services have been well explored; however, the increasing competition in this area demands the investigation of actual instrumentality of these elements on satisfaction of customers. In the present research, we have proposed a framework for assessing the instrumentality of after-sales services on customer satisfaction. Kano model and SERVQUAL framework were used to categorize customer satisfaction elements. In addition, in order to address behavioral dissimilarities among customers, RFM clustering technique was used for analysing 243,180 customers of automobile after-sales services. Accordingly, dissatisfaction decrement index and satisfaction increment index were measured for every cluster separately. We identified a group of 21 quality elements and demonstrated the instrumentality and quality of these quality elements on customer satisfaction. RFM clustering technique is applied to address customer dissimilarities and we demonstrated the preferences and desires of customers in each cluster. While some papers have already identified the influential factors of after-sales services on customer satisfaction, this is for the first time that the instrumentality of after-sales services is being identified. Accordingly, this study demonstrates how different after-sales services quality elements affect customer satisfaction. Therefore, the results of this study can help companies to allocate their resources more efficiently.     

A Comparative Analysis of the Relative Importance of Service Quality for Two UK Grocery Retailers

This article identifies the relative importance of service quality across two grocery store formats. Research to date, indicates that within the grocery sector, customers expect value for money in terms of product quality, nutritional value and service quality. If these attributes are met in relation to the customers' perceived risk, it is more likely that customer satisfaction and retention will occur. In difficult competitive, social and economic circumstances, some sources indicate that there will be a trading down in customer shopping habits, with more customers expecting higher levels of service provision across a wider range of store formats, including the discounters. This study examines the relative importance of service quality for a quality-led retailer, compared to a discounter. Quantitative and qualitative research was carried out to obtain both a demand and supply–side perspective. Research findings demonstrate that despite the fact that consumer expectations are rising in relation to the overall shopping experience, distinctions in relation to customers' expectations between the levels of service provided across quality-led stores, compared to discounters, is still evident.