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Interrogating SERVQUAL: A critical assessment of service quality measurement in a high street retail bank
Abstract
This paper presents a case study of a pioneering nationwide implementation of SERVQUAL by a major UK high street bank between 1993 and 1997 at an annual cost of one million pounds. In addition to highlighting serious weaknesses in the value of SERVQUAL as a measure of service quality and as a diagnostic tool, this study raises some of the practical difficulties entailed in its implementation. Moreover, in this particular instance, it becomes apparent that difficulties are introduced by the separation of service quality management from the management of marketing and human resources. In addition, there was a discernible lack of top management commitment, as well as obstacles in the form of functional and informational silos, which served to constrain an integrated company response to SERVQUAL criteria.
... In the competitive field of services, the research and development of service quality play a key role in establishing corporate image and generating market insights (Newman, 2001). Marketing experts have also studied thoroughly in different contexts and found that quality of service has a substantial effect on customer satisfaction and loyalty and finally established the SERVQUAL model for evaluating service quality of different services (Shi & Shang, 2020). ...
... Many papers have examined SERvQUAL's dimensions as an important factor for customer satisfaction within the banking sectors (Kumar, Kee, & Manshor, 2009;Newman, 2001;Siddiq, 2011;Ali & Raza, 2015). Ali and Raza (2015) used SERVQUAL and compliance to assess the effect of superior customer service on the banking industry in a developing nation. ...
This study has been conducted to identify the relationship between customer satisfaction and customer loyalty, and customer loyalty and corporate image of the banking sector of Dhaka city. A quantitative, descriptive approach was undertaken to consider the measurement model, Confirmatory Factor Analysis (CFA). Using the convenience sampling method, 219 responses were collected. The data were analyzed using Smart-PLS 2.0 software to investigate the hypothesized relationships. A modified SERVQUAL model has been used to determine customer satisfaction and a positive relationship between both customer satisfaction and customer loyalty, and customer loyalty and corporate image has been found. Three of the four dimensions positively affect customer satisfaction where responsiveness has the highest impact. However, no positive influence of tangibles on the satisfaction of customers is found. All in all, this research provides theoretical contribution by extending the practical knowledge focusing on the relationship between customer satisfaction, customer loyalty, and corporate image on the banking industry. Besides, this study has also shown a concrete implication to the managers and policymakers of banks to comprehend what customers expect and what leads to their loyalty and amplifies the corporate image.
... Service Quality Service quality is defined as the degree and direction between customer service expectations and perceptions (Newman, 2001). Service quality as a multi-dimensional construct is commonly based on customers' judgment about service suppliers and customers' interactions and services (Zeithaml, Berry & Parasuraman, 1996). ...
... The advantage of using a Likert scale can be to create interest among respondents as, according to Robson (1993), a Likert scale can be interesting for users who often enjoy completing a scale like this. Another advantage can be simplicity as Newman (2001) suggested that the real strength of Likert scale was the simplicity and ease of use. ...
The study examined the determinants of customers’ switching behaviour in mobile telecommunications industry in South-South Nigeria. The main objective of the study was to explore the factors influencing customers’ switching behaviour in the mobile telecommunications industry and in specific terms, determine whether price, reputation, service quality, promotional package and switching cost did have a significant and positive influence on customers’ switching behaviour. The unit of analysis comprised 400 mobile telecommunication subscribers drawn from six cities in the South-South geopolitical zone of Nigeria. The study units were selected using a proportionate stratified sampling technique and the data obtained from the process were analysed with descriptive statistic using Statistical Package for Social Sciences (SPSS) version 23 software. Conceptual hypothesized relationships involving the independent and dependent variables formulated from the research model were tested with multiple regression analysis technique. The findings of the study revealed that reputation, service quality, promotional package and switching cost had a strong and positive relationship with customers’ switching behaviour but price and involuntary switching seemed to have the least significant relationship. It showed that those factors were very important determinants of customers’ decision to switch from one mobile telecommunications provider to another except price and involuntary switching as earlier stated. The key recommendations from the study were that managers of mobile telecommunications companies should develop proper pricing strategies that were remarkably different in terms of moderate call rates and data charges to prevent customer switching. Secondly, plans could be put in place by management that would encourage the development of trust and confidence through the provision of timely quality services and ensure good network coverage. Finally, managers should ensure that promotional campaigns were aimed at building relationships. In conclusion, it is quite important that managers should have adequate knowledge of the determinants of customers’ switching behaviour established in the study so as to put in place preventive measures that will enhance customers’ retention of improved sales and profitability. The study made a significant contribution by identifying customers’ perceptions of marketing variables that could affect switching.
... In the competitive field of services, the research and development of service quality play a key role in establishing corporate image and generating market insights (Newman, 2001). Marketing experts have also studied thoroughly in different contexts and found that quality of service has a substantial effect on customer satisfaction and loyalty and finally established the SERVQUAL model for evaluating service quality of different services (Shi & Shang, 2020). ...
... Many papers have examined SERvQUAL's dimensions as an important factor for customer satisfaction within the banking sectors (Kumar, Kee, & Manshor, 2009;Newman, 2001;Siddiq, 2011;Ali & Raza, 2015). Ali and Raza (2015) used SERVQUAL and compliance to assess the effect of superior customer service on the banking industry in a developing nation. ...
This study has been conducted to identify the relationship between customer satisfaction and customer loyalty, and customer loyalty and corporate image of the banking sector of Dhaka city. A quantitative, descriptive approach was undertaken to consider the measurement model, Confirmatory Factor Analysis (CFA). Using the convenience sampling method, 219 responses were collected. The data were analyzed using Smart-PLS 2.0 software to investigate the hypothesized relationships. A modified SERVQUAL model has been used to determine customer satisfaction and a positive relationship between both customer satisfaction and customer loyalty, and customer loyalty and corporate image has been found. Three of the four dimensions positively affect customer satisfaction where responsiveness has the highest impact. However, no positive influence of tangibles on the satisfaction of customers is found. All in all, this research provides a theoretical contribution by extending the practical knowledge focusing on the relationship between customer satisfaction, customer loyalty, and corporate image in the banking industry. Besides, this study has also shown a concrete implication to the managers and policymakers of banks to comprehend what customers expect and what leads to their loyalty and amplifies the corporate image.
... Oliver, (2018) says that true customer satisfaction is created when customers become advocate of an organization without any incentive. Newman (2014)while considering factors responsible for satisfaction says that of customer satisfaction in any dynamic corporate environment is influences customers repurchase intensions whereas dissatisfaction is seen as a primary reason for customer's intentions to switch. Newman (2014) further buttress that satisfied customers are most likely to share their experiences with other people around them. ...
... Newman (2014)while considering factors responsible for satisfaction says that of customer satisfaction in any dynamic corporate environment is influences customers repurchase intensions whereas dissatisfaction is seen as a primary reason for customer's intentions to switch. Newman (2014) further buttress that satisfied customers are most likely to share their experiences with other people around them. Similarly, dissatisfied customers are more likely to tell other people about their unfortunate experiences with a particular organization.In order to achieve customer satisfaction, Newman (2014) suggest that organizations must be able to build and maintain long lasting relationships with customers through satisfying various customer needs and demands which resultantly motivates them to continue to do business with the organization. ...
The ability for an organization to create and managed brands by communicating it product and image is steadily declining in effectiveness and relevance. As traditional mass media is overtaken by word-of mouth and peer review dialogue as the primary driver of consumer attitude and brand choice, consumers are more able to challenge an organization's brand promise as well as seek out alternatives. Thus, this paper focused on the role of brand advocacy on consumer satisfaction. Thus the purpose of the paper was to investigate what role (s) brand advocacy play on consumer satisfaction towards the brand. In line with the stipulated objective the cognitive dissonance and brand identity theories were employed to further provide perspective for the study. Similarly, secondary data was retrieved as the research design was documentary. Thus findings showed that in creating successful brand advocacy organizations requires a different set of brand management competencies. It requires organizations to develop and harness the competencies of customers. Also a successful brand advocacy demands new communication infrastructures to enable customers listen and participate brand conversations. It is concluded that brand advocacy is necessary to provide needed information for customer satisfaction .It is recommended that brand managers should make brand advocacy a new paradigm for advertising, since advocacy triggers brand satisfaction, and loyalty and enable the brand to compete favourably in the ever changing market.
... It results in the satisfaction and retention of customers and employees, thus reducing turnover rates. Furthermore, new customers are attracted through positive word of mouth (Newman, 2001;Caruana 2002;Arasli et al., 2005). ...
Purpose: The purpose of this study is to understand the perception of patients towards health care services in the Egyptian university hospitals-The study surveys patients using the SERVPERF instrument, which is one of the most widely used and applied scales for the measurement of perceived service quality. Methodology: An applied study was conducted to collect data from the doctors, nurses and patients of University hospitals in Cairo, and (400) questionnaires have been analyzed. Descriptive statistics, correlation, and regression techniques were used. Findings: Based on correlation and regression analysis, the research results show that there is a significant difference for Reliability, Responsiveness, and Assurance in terms of the hospital staff s perception of service quality and the patients' perception of service quality. While Tangibles and Empathy
... Also profit oriented public organizations and financial institutions exercise proper operation FMS to maintain FMSP for well-functioning surrounding so as to retain their best employees for organization continued performance and impress customers for increased profit generation (Chhabra & Sharma, 2014;Newman, 2001). ...
Facilities management services are essential for maintaining a conducive and functional office environment that supports an organization's core objectives. Organizations adopt facilities management to ensure their support services are efficiently managed, allowing employees to focus on business goals. However, despite the benefits of facilities management adoption, underperformance in FM services can still occur due to differences in how FM is adopted and positioned across organizations. This prompted the researcher towards analyzing the impact of facilities management adoption on facilities management services performance
of selected services as moderated by facilities management positioning. The study adopted a survey method and data was collected through a questionnaire among
facilities managers and other employees of the five selected organizations in owner occupied office buildings. Data analysis was done through descriptive statistics, regression and correlation analysis using statistical package software for scientist (SPSS) and the results were presented using figures and tables to show comparison and establish trends. The findings show that different organizations have adopted facilities management differently with private organizations having higher level of adoption than public organizations. Alignment of FM to organization goals and objectives, FM roles and responsibilities, budget sufficiency and specialization and expertise of facilities managers were among facilities management adoption criteria identified to statistically influence facilities management services performance. It was also revealed that among the three levels of facilities management positioning strategic and tactical roles enhance facilities management performance whereas the moderating effect of facilities management positioning has a diminishing effect of facilities management services performance for organizations that have not adopted FM appropriately and a positive effect for organizations that have attained higher level of facilities management adoption. The study recommends organizations experiencing low performance of services and frequent user complaints to prioritize implementing facilities management adoption criteria that are statistically proven to improve facilities management services performance and organizations with skilled FMers with sufficient budget and a well aligned FM department to organization goals still facing lower performance of FM services should focus on ensuring their FMers are effectively undertaking strategic and tactical roles which have the most significant positive impact on performance of services.
... Dimungkinkan juga untuk membuat perbedaan antara kualitas layanan teknis dan fungsional, kualitas teknis terhubung dengan apa yang disampaikan, dan kualitas fungsional terhubung dengan cara penyampaiannya. Kualitas layanan telah didefinisikan sebagai derajat dan arah antara harapan dan persepsi layanan pelanggan [7]. Kualitas layanan yang dirasakan didefinisikan sebagai evaluasi layanan yang dibandingkan dengan beberapa standar eksplisit atau implisit [8]. ...
Layanan transportasi berubah sejalan dengan perubahan teknologi, digitalisasi informasi, dan komunikasi. Moda transportasi di ibu kota sudah selayaknya memenuhi standar, di mana memiliki fasilitas yang lengkap, memiliki pelayanan yang memuaskan, memberikan kenyamanan, dan menjamin keselamatan penumpang. Sehingga, target masyarakat kota menggunakan moda transportasi umum tercapai. Adapun tujuannya dari penelitian ini adalah a) untuk mengetahui pengaruh kualitas layanan angkutan umum terhadap keselamatan perjalanan, b) untuk mengetahui pengaruh kualitas layanan terhadap aksebilitas yang dirasakan, c) untuk mengetahui pengaruh keselamatan perjalanan terhadap aksebilitas yang dirasakan, dan d) untuk mengetahui pengaruh kualitas layanan angkutan umum terhadap aksesibilitas yang dirasakan melalui keselamatan perjalanan sebagai mediator. Metode yang digunakan dalam penelitian ini adalah metode kuantitatif deskriptif dilengkapi dengan wawancara untuk mendapatkan data yang lebih dalam. Penelitian dilakukan terhadap pengguna angkutan umum Transjakarta. Analisis data menggunakan pendekatan Partial Least Square (PLS). Hasil penelitian menunjukkan bahwa 1) kualitas layanan berpengaruh signifikan terhadap keselamatan perjalanan; 2) kualitas layanan berpengaruh signifikan terhadap aksesibilitas yang dirasakan; 3) keselamatan perjalanan berpengaruh signifikan terhadap aksesibilitas yang dirasakan; dan 4) tidak ada pengaruh yang signifikan dari kualitas layanan terhadap aksesibilitas yang dirasakan melalui keselamatan perjalanan sebagai mediator.
... Service quality plays a critical role in the success of Islamic banking, significantly impacting customer satisfaction and loyalty (Surjaatmadja & Kusniawati, 2023). It is defined by the extent and direction of the gap between customer perceptions and service expectations (Newman, 2001). In the context of Islamic banking, service quality reflects how well the bank's offerings align with or surpass client expectations. ...
Islamic banks are financial institutions that operate according to Sharia principles. In 2021, the Indonesian government consolidated several Islamic banks into Bank Syariah Indonesia (BSI) to strengthen the Islamic finance sector. However, the growth of Islamic banks remains relatively modest compared to conventional banks. Brand image and service quality are critical factors influencing customers’ choice of BSI, with religiosity also playing a significant role in shaping the demand for Sharia-compliant services. This study aims to evaluate the impact of brand image and service quality on the decision to choose BSI, considering religiosity as a moderating variable. The study was conducted with 105 BSI customers in South Kalimantan, selected through purposive sampling. Thirteen indicators were used, including three for brand image, five for service quality, two for religiosity, and three for choice decision. Data was collected via questionnaires distributed to BSI customers, and analysis was performed using SEM-PLS to assess both the measurement and structural models. The results revealed that brand image and service quality significantly influence the decision to choose BSI. Religiosity was found to moderate the impact of brand image on choice decisions but did not have a moderating effect on service quality. These findings suggest that BSI should focus on enhancing its brand image and improving service quality to attract a broader clientele and reinforce its position as a preferred institution for financial transactions.
... Gerstner and Libai (2006) reported that lack of training, service process failures, inadequate choice of personnel, and misalignment of incentives, are the major challenges that need to be overcome to ensure service quality. Newman (2001) found that inadequate communication and lack of top management commitment are the main challenges facing service design, while Burke (2001) found that lack of management control compromises the service quality. Some of the studies investigated challenges in sustainable design such as cost Travis et al., 2004), inadequate information flow and lack of feedback ( (Chou et al., 2012); ), shortage of skilled employees and lack of incentives . ...
Resilient and sustainable service design is essential for ensuring the longevity and effectiveness of service systems. However, existing literature often neglects key aspects such as articulating resilience attributes and integrating sustainability dimensions. This study proposes a decision support model for a “resilient-sustainable service design” that merges service design principles with resilient system attributes and organizational sustainability goals. The framework incorporates a multi-objective mathematical programming model and a multi-phased Quality Function Deployment (QFD) approach to derive Pareto optimal solutions using the Brute Force algorithm. Applied in the m-health service sector in Bangladesh, the study reveals significant challenges, including limited awareness of services and logistical inefficiencies. To address these issues, flexible strategies such as demand planning and service innovation are implemented. The findings have direct implications for the improvement of service delivery processes and underscore the importance of considering both resilience and sustainability. While focusing on Bangladesh’s m-health sector, the insights gained have broader relevance globally. The integration of resilience and sustainability principles into service design is crucial for addressing complex challenges across sectors and regions. Future research could involve longitudinal studies to capture evolving resilience strategies and explore resilient-sustainable service systems from a broader perspective. This entails examining various factors such as technological advancements and socio-economic dynamics shaping resilient and sustainable service ecosystems.
... asserted that customer satisfaction results to perceived quality (Tam, 2000;Petrick & Backman, 2002). Newman (2001) argued that perceived quality in addition to consumer satisfaction are positively linked while enhanced perceived quality results to consumer satisfaction with and eventually to consumer loyalty and enhanced relationships among customers and firms. ...
Organizations are realizing the importance of customer-focused concepts and embracing perceived quality practices to help in business survival. Perceived quality and customer satisfaction are critical constructs that businesses need to emphasize to have an added advantage. Satisfied consumers contribute to the success of businesses as consumer satisfaction results to re-purchase, good-mouthing and customer loyalty. The conceptual paper starts with a critical literature review on the constructs of perceived quality, firm characteristics and customer satisfaction, followed by theoretical framework. In the subsequent sections, perceived quality and firm characteristic concepts and their relationships to customer satisfaction are discussed. Then literature review summary and knowledge gaps are discussed. The paper closes with conceptual framework and hypotheses.
... Customers' satisfaction is often a key factor in the success of service organizations, which in turn affects the company's outcomes such as increased sales and profit (Lanka, Suar, & Mohapatara 2009), improved customer relations, performance superiority and market share (Poretla &Thanassoulis 2005), and enhanced customer loyalty and corporate image (Lanka, Suar, & Mohapatara 2009), (Poretla &Thanassoulis 2005). (Newman, 2001) Because customer loyalty and repurchase intentions are connected to customer happiness and quality of service, providing better service to patients and customers is critical for a service organization's survival and success in today's changing business climate. In order to build and sustain long-term connections with customers, you need to provide consistently high-quality service. ...
The research looked at how listed Nigerian insurance businesses have changed structurally and how well their employees are treated. Structural change in Nigeria's listed insurance businesses is the primary focus of this research, which examines the impact on employee service quality. Survey research was used in the study. There were 4,822 workers of the 23 listed insurance firms in Nigeria that were included in the study's population. The target demographic was represented by a sample of 480 participants. A multi-stage sampling method was used to choose the participants. Stratified and purposive sampling methods were used in this study. A modified questionnaire produced by previous researchers and divided into three parts was employed in the study. Through the use of content validity, the researcher was able to verify the reliability of the research instrument. Because the Cronbach's Alpha coefficient reliability result of structural change was 0.718 and the employee's quality of service was 0.725, the questionnaire was declared relable. Regression analysis was used to examine the presented hypothesis. Employees' quality of service is negatively affected by structural change (beta =-0.0851, P-value = 0.2090-0.05) but is statistically insignificant (beta =-0.0851). But this research found that structural modifications allow service organizations, including the insurance business, to share a same vision and goal. As a result, every organization that is going through a period of transition needs a solid organizational structure in place. Consequently, it was proposed that the workers who are directly engaged about structural change should only be permitted to participate in the decision making process about the adjustment.
... For example, Newman. K [27] studied the implementation of SERVQUAL as an assessment tool in a large British bank between 1993 and 1997. Then, Augustyn MM and Seath-King. ...
In today’s competitive business landscape, maintaining market position and customer satisfaction relies on high-quality equipment maintenance. Total Productive Maintenance (TPM) is a popular method for optimizing internal efficiency. However, despite its popularity, companies still face challenges in implementing TPM. This study proposes a comprehensive evaluation model combining SERVQUAL and fuzzy set theory (Fuzzy SERVQUAL) to assess TPM implementation and identify obstacles for focused strategies. The results demonstrated that the level of implementation within the Moroccan industrial sector ranges from 3 to 4, as per the Classic SERVQUAL, showing a minimum level between 2 and 3 and a maximum level between 4 and 5 based on the nuanced analysis of Fuzzy SERVQUAL. The success of TPM implementation in the industrial sector is largely attributed to the human element, which includes prioritizing employee attention, enhancing skills, and which involves prioritizing employee attention, skill enhancement, and active involvement in decision-making processes.
... For example, Newman. K [27] studied the implementation of SERVQUAL as an assessment tool in a large British bank between 1993 and 1997. Then, Augustyn MM and Seath-King. ...
In today’s competitive business landscape, maintaining market position and customer satisfaction relies on high-quality equipment maintenance. Total Productive Maintenance (TPM) is a popular method for optimizing internal efficiency. However, despite its popularity, companies still face challenges in implementing TPM. This study proposes a comprehensive evaluation model combining SERVQUAL and fuzzy set theory (Fuzzy SERVQUAL) to assess TPM implementation and identify obstacles for focused strategies. The results demonstrated that the level of implementation within the Moroccan industrial sector ranges from 3 to 4, as per the Classic SERVQUAL, showing a minimum level between 2 and 3 and a maximum level between 4 and 5 based on the nuanced analysis of Fuzzy SERVQUAL. The success of TPM implementation in the industrial sector is largely attributed to the human element, which includes prioritizing employee attention, enhancing skills, and which involves prioritizing employee attention, skill enhancement, and active involvement in decision-making processes.
... As a consequence, this leads to a rise in customer satisfaction and loyalty. It was discovered by Levesque and McDougall (1996), Newman (2001), andCaruana (2002) that there is a connection between customer loyalty and repurchase intentions. This connection was determined to be based on the importance of service quality and customer pleasure. ...
In both public and private banking institutions, the purpose of this study was to investigate the relationship between customer loyalty and various service quality parameters, including tangibility, reliability, assurance, responsiveness, and empathy. A regression analysis was carried out in order to investigate the connections that exist between these factors and the occurrence of repeat business. Based on the findings, it has been determined that tangibility, reliability, assurance, and empathy have a substantial impact on customer loyalty in both public and private banking institutions. These criteria are relevant in the banking business since they have been found to have positive connections with client loyalty. Yet, in this scenario, responsiveness did not yield a statistically meaningful impact on client loyalty. The overall regression model showed a high level of statistical significance, indicating the effectiveness of Tangibility, Reliability, Assurance, and Empathy in jointly accounting for variations in consumer loyalty. This research provides valuable insights for banks aiming to improve customer retention by focusing on specific areas of exceptional service. The findings resulted in suggestions for banks to improve service quality by investing in physical and online environments (Tangibility), maintaining reliable and error-free services (Reliability), improving client trust and communication (Assurance), and promoting empathetic interactions (Empathy).
... Despite numerous criticisms (e.g. Babakus & Boller, 1992;Dahiyat et al., 2011;Newman, 2001), the SERVQUAL model developed by Parasuraman et al. (1985) initially consisting of 10 elements and later refined (Parasuraman et al., 1988) to measure service quality across five (5) dimensions namely tangibility, reliability, responsiveness, assurance, and empathy, is widely and highly acknowledged and utilised in research and practice in diverse contexts. However, its application in the Ghanaian hospitality industry, specifically in rural geographical settings such as the Volta Region, remains relatively unexplored. ...
Service quality and customer retention remain essential issues in the service sector. This research delves into unravelling the complex relationships between the facets of the SERVQUAL model (reliability, responsiveness, tangibility, assurance, and empathy) and the retention of hotel customers in less-urban areas of Ghana. A cross-sectional survey of 450 customers of hotels in the Volta Region produced data for descriptive and regression analyses using Smart PLS 4. The results show that service quality was rated moderately, only assurance and empathy significantly affect customer retention, while tangibility, reliability, and responsiveness do not. Generalizability of our findings to other regions of Ghana and elsewhere might be questioned because the study was limited to only one region. However, this seeming limitation provides novelty and value in several ways. Firstly, while SERVQUAL is widely used, its application to less-urban geographical areas like the Volta Region is uncommon. Moreover, the study provides a deeper understanding of how service quality affects customer retention by focusing on a specific, narrow regional area. Further, by differing from the usual broader hospitality research, this distinctive approach offers valuable insights into local customers' unique preferences and behaviours that larger-scale studies may overlook.
... According to Oliver cited in Alamgir and Shamsuddoha (2003) service quality is the difference between actual service performance and expected performance. It is the degree and direction between customer service expectations and perceptions (Newman, 2001). However, this study defined quality service as the perceived perception of service rendered as opposed to actual expectations. ...
The study examined the relationship between crisis communication strategies and operational performance of deposit money banks in Rivers State. The study adopted clarity, transparency and prompt response as the dimensions of the predictor variable whereas, service quality and customer retention served as the measures of the criterion variable. A Quasi-experimental research design was adopted with a cross-sectional survey approach. The population of the study consisted of management staff of the 21 deposit money banks in Rivers State. Three management staff were studied across each of the deposit money banks; branch manager, head of corporate communication and head of operations from each of the twenty one (21) Deposit Money Banks in Rivers State. A total of sixty three (63) management staff were derived. However, owing to the relatively small population, a census was adopted. Therefore, 63 management staff of the 21 deposit money banks was studied. Data were analysed with Spearman Rank Correlation Statistic. A total of sixty-three (63) copies of questionnaire were administered, however, only 45 copies were retrieved. Therefore, 45 copies of questionnaire was used for the analysis. The findings revealed that, there is a significant positive relationship between crisis communication strategies and operational performance as well as the dimensions to the measures of this study. Based on these findings, the study concluded that there is a significant relationship between crisis communication strategies and operational performance of deposit money banks in Rivers State. Therefore, the study recommended that deposit money banks should encourage clarity, transparency and prompt response as its strategy in communicating crisis situation to its public as it has been found to trigger customer retention and quality service.
... The SERVQUAL approach sees QS as the agreement between customers' expectations and their perceptions of the provided service. SERVQUAL has been vastly used in a wide range of services and has shown the potential to be applied both to private [37][38][39][40][41][42][43] and public services [44,45]. For reviews of this method, see [46,47]. ...
This work delves into the crucial role of service quality in the water supply and sanitation sector. Despite extensive research and implementation of quality management practices in this sector, a universally accepted definition of quality is still lacking, resulting in various service quality assessment procedures that are difficult to compare. To address this issue, the World Bank launched the `Utility of the Future' (UoF) program, aiming to guide water service providers in their efforts to become future-focused utilities that offer reliable, safe, inclusive, transparent, and responsive services through best-fit practices. Building upon the framework provided by the UoF program, this study proposes the Water Utility Service Quality Index (WUSQI) - a composite indicator that reflects the quality of service provided by water supply and sanitation utilities from a customer perspective. Based on Data Envelopment Analysis, the Benefit-of-the-Doubt approach is employed to assign weights for aggregating the indicators representing the diverse performance dimensions. The study operationalises the WUSQI to assess the quality of Portuguese wholesale water and wastewater companies using data collected by the national regulator of water and waste services. A Multiple Criteria Decision Analysis technique, the Deck of Cards method, is used to specify an indicator of transparency from the information made available by the regulated utilities. The results show the effectiveness of this tool for evaluating and measuring service quality at the company level. Additionally, the findings highlight areas for improvement in the utilities' performance. By enabling companies and regulators to identify areas for improvement, the WUSQI can support the delivery of high-quality services to customers.
... This discovery implies that emphasizing service quality can result in heightened customer satisfaction. Within the banking sector, prioritizing customer satisfaction is intricately linked to providing outstanding service quality and cultivating a mutually advantageous relationship between service providers and customers, all fueled by customer contentment (Gounaris et al., 2003;Joseph & Stone, 2003;Newman, 2001). Studies conducted by Harimurti and Suryani (2019), Pattanayak et al. (2017), Saraswati (2021), Shanka (2012), andYulianti (2013) provide additional evidence supporting the positive connection between service quality and customer satisfaction in the banking sector. ...
The economic environment has significantly changed, necessitating quality improvements to achieve the organization’s competitive advantage. A notable progress involves the creation and execution of a quality management system, utilizing the Total Quality Management (TQM) principle to address forthcoming consumer requirements. This paper explores the impact of TQM, service quality, and market orientation effects customer satisfaction in East Java’s state-owned banking sector. The researchers collected empirical data from 199 respondents who were employees of state-owned banks in East Java. In this research, we utilized PLS-SEM analysis to investigate the connections between the variables. The results indicate a positive effect between TQM and service quality, market orientation, and customer satisfaction. Moreover, there is a positive association between service quality, market orientation, and customer satisfaction. According to this study, state-owned banks in East Java should focus on implementing TQM, improving service quality, and developing a market orientation to enhance customer satisfaction. By practicing effective TQM, continuously improving service quality, and adapting responsive marketing strategies, state-owned banks can improve customer satisfaction and strengthen their position in the highly competitive banking sector. Lingkungan ekonomi telah mengalami perubahan besar dan perlunya melakukan peningkatan kualitas untuk mencapai keunggulan kompetitif organisasi. Salah satu perkembangan tersebut melibatkan pengembangan dan penerapan sistem manajemen mutu dengan menerapkan konsep Total Quality Management (TQM) guna memenuhi kebutuhan konsumen di masa mendatang. Penelitian ini bertujuan untuk mengeksplorasi pengaruh antara TQM, service quality, dan market orientation terhadap korelasi customer satisfaction di sektor perbankan BUMN Jawa Timur. Peneliti mengumpulkan data empiris dari 199 responden yang merupakan pegawai bank BUMN di Jawa Timur. Dalam penelitian ini, peneliti menggunakan analisis faktor konfirmatori untuk menguji reliabilitas dan validitas konfigurasi, sedangkan hubungan antar variabel diperiksa melalui Partial Least Square. Penelitian ini membuktikan bahwa TQM berhubungan positif dengan Service Quality, Market Orientation, dan Customer Satisfaction. Service Quality dan Market Orientation juga berhubungan secara positif dengan Customer Satisfaction. Menurut penelitian ini, perbankan BUMN di Jawa Timur perlu mendapat perhatian serius untuk menerapkan TQM, meningkatkan kualitas layanan dan mengembangkan orientasi pasar untuk meningkatkan kepuasan nasabah. Dengan menerapkan praktik TQM yang efektif, terus meningkatkan kualitas layanan, dan merespons perubahan strategi pemasaran, perbankan BUMN dapat meningkatkan kepuasan nasabah dan memperkuat posisinya di tengah sektor perbankan yang sangat kompetitif.
... During the past two decades, service quality has become a major area of attention to practitioners, managers and researchers because of its strong impact on business performance, lower costs, return on investment, customer satisfaction, customer loyalty and gaining higher profit (Leonard and Sasser, 1982;Cronin and Taylor. 1992;Gammie, 1992;Hallowell, 1996;Chang and Chen, 1998;Gummesson, 1998;Lasser et al., 2000;Newman, 2001;Sureshchander et al., 2002;Seth and Deshmukh, 2005). ...
The purpose of this study was to examine the service quality and customer satisfaction of the top 14 U.S. airlines between 2007 to 2011 using data from the Department of Transportation Air Travel Reports. The objectives of this study were to compare customer satisfaction and service quality with respect to airlines quality dimensions and subsequently to determine the relationships between the dimensions of service quality and passengers' satisfaction on airlines services. A critical review of the literature revealed that the airline industry has been struggling with many challenges: cutting costs, managing fluctuating demand, keeping up with tight quality requirements while trying to maintain superior services and satisfy the needs of various customer groups. Data were collected from the Department of Transportation's Air Travel Consumer Report on the following measures: percentage of on-time arrival, passengers denied boarding, mishandled baggage and customer complaints. Using a quantitative research method, Microsoft Excel version 2010 was used to analyze the data using percentages, mean and standard deviation. Results indicate that while the traditional carriers are converging toward a higher level of service quality, using the four measures, there continue to be significant variation. In this study, over a five year period 2007 to 2011, the service quality of low cost airlines was generally found to be higher than that of traditional legacy airlines. Implications related to operating costs, market share, infrastructure and customer service were evident.
... This is because service quality affects business performance, customer satisfaction levels, customer loyalty and the overall business success. Various researchers, like Leonard (1982), Cronin (1992), Newman (2001), Guru (2003), have highlighted the importance of service quality in their respective studies. Hence, research has been intense on service quality, definitions, its models, methods of measurement, analysis and various concerns related to providing qualitative service, leading to a comprehensive and dedicated model designed for future researcher/s as well Service quality is nothing but meeting the customer's needsatisfaction by proactively fulfilling their expectations. ...
This paper tries to study the relationship between various constructs, such as tangibility, reliability, responsiveness, accuracy, security, ease of doing business, convenience and empathy with the quality of services provided by the banking sector in the state of Odisha, India. This study uses a modified 'SERVQUAL' model/scale comprising seven constructs/ dimensions to measure the quality of services provided by the banks in the Odisha state.. The respondents selected are the customers from both private and public banks operating in Odisha. The result of the study shows that, the constructs/dimensions studied in the modified SERVQUAL model and used in the study significantly and positively contribute to the customer service quality of the banks, except one construct, i. e, reliability, which significantly affects the service quality-but negatively. Further, the result points out that the banks in the state of Odisha are giving priority to the ease of doing business and facilitating convenience aspects that are followed by the responsiveness of the banks.
... However limitation of Servqual and Servperf scales are that they are generic thus cannot be applied to all service types; they do not capture all the aspects of service quality (Abbas, 2020c) but only the operational aspects. While majority of researchers have used these scales with modification/adaptations to suit the service setting, there are researchers who have developed industry specific scales for various industries like-education, agriculture, tourism, logistics etc. (Balaji & Ganesan, 2005;Chowdhary & Prakash, 2007;Davila et al., 2010;Eboli & Mazzulla, 2007;Hajdari, 2019;Newman, 2001;Nwabueze & Mileski, 2008;Rahman, 2005;Rhee & Rha, 2009;Selen & Schepers, 2001;Shamdasani et al., 2008;Yu & Fang, 2009;Zhou et al., 2009). ...
This paper studies the service quality (SQ) of higher education institutes (HEI), offering professional courses from the perspective of faculty as they are the service providers as well as a major stakeholder in the educational arena. PHEISQUAL (Professional higher education institute service quality) scale has been developed to measure the service quality of HEI offering professional course using mixed methodology. Four factors namely—Training & Placement, Faculty Resource, Learning Infrastructure, and Assessment & Evaluation have been extracted. The scale has been subjected to rigorous analysis of scale development process and has complied with same. Thus this study accrues a new instrument to measure service quality of professional institutes offering higher education by taking into account the technical as well as operational factors.
... (Newman & Cowling, 1996) Banks have to redefine their corporate image to that emphasizes service quality since it provides many advantages to a company such as allowing the company to differentiate itself from its competitors by increasing sales and market shares, providing opportunities for cross selling, improving customer relations thus enhancing the corporate image, reliability, responsiveness, credibility and communication results in the satisfaction and retention of customers and employee, thus reducing turnover rate. (Newman, 2001). According to Woldie (2003), bank customers in Nigeria have been found to be dissatisfied with the quality, of services provided by banks. ...
The study assessed the effects of service delivery quality on customer satisfaction among deposit money banks in Osun state, Nigeria. Specifically, the objectives were to assess the perceived service delivery quality of deposit money banks, identify the services offered by deposit money banks and evaluate the customer satisfaction of the deposit money banks. The study was carried out in Osun state and used the survey method. Purposive sampling technique was used to select a total 125 respondents who were customers of at least one deposit money bank. Data collected were analyzed using descriptive and inferential statistics. The results showed that 43.2 percent of the respondents were civil servants, majority were highly knowledgeable about deposit money banks services such as ATMs, Electronic Fund Transfer (EFT), Electronic Bill Payment (EBP), E-Cheque, Internet Banking, Mobile Banking and Debit Cards, 68.8 percent perceived the quality of service delivery as average while 61.6 percent also rated the customer satisfaction as average. The test of hypothesis showed a positive and significant relationship between quality of service delivery (r=0.793, p =0.000*) and customer satisfaction. The study concluded that customer satisfaction and quality of service delivery in deposit money banks was average and improved quality of service will lead to an increase in the level of customer satisfaction.
... Studies on the differences in service quality in Canada and Tunisia by Ladhari et al. (2011) concluded that the most crucial aspect of service quality is empathy. This statement is also consistent with a study done by Newman (2001). Besides, studies by Beerli et al. (2004) and Tahir and Bakar (2007) came to a different conclusion, which is that empathy is the least influential factor in service quality. ...
In many organizations, especially those dealing with services, customer satisfaction is considered a challenge (Pula, 2022). The study is grounded in the theory of customer satisfaction and service quality. The purpose of this study is to examine the relationship between service quality at local independent auditing firms and customer satisfaction. Between September and October 2022, the general accounting and chief accounting departments will be surveyed. There were 250 respondents in the data collection, based on exploratory factor analysis, linear regression, correlation analysis, and scale reliability analysis. According to the study, client happiness and service quality at local independent auditing firms are positively correlated. The effects of the service quality at the component level, however, vary. The findings of the study imply that clients should choose local independent auditing firms that provide high-quality services. There are some suggestions on how to enhance the caliber of their services and the growth of this industry in Vietnam. The study advances our knowledge of local independent auditing firms’ levels of service quality.
... In spite of the controversies associated with the reliability and validity of SERVQUAL, its application is instructive in the healthcare sector (Newman, 2001). SERVQUAL dimensions are modified accordingly by various researchers in order to meet the objectives of their respective studies. ...
The National Health Insurance Scheme (NHIS) is an initiative of the federal government of Nigeria to provide accessible and affordable health care services to a significant number of citizens. The scheme was enabled by Decree 35 of 1999 (now NHIS Act 2004), and became operational in 2005. Coming at the onset of the democratization process, the NHIS is the first indication of social inclusion policy consistent with the principle of good governance. However, progress checks in implementation suggest that there is considerable gap between policy objectives and outcomes. In the light of this observation, the paper examines the extent to which medical equipment, supply of drugs and consumables affect the implementation of NHIS in the Federal Capital Territory (FCT), Abuja. The study which is a survey research was anchored on Service Quality Theory and employed the instrument of questionnaire to elicit data from Health workers and NHIS enrollees in nine health institutions spread across four Area Councils in Abuja, namely, AMAC, Gwagwalada, Kuje and Kwali. The data were analyzed using Statistical Package for Social Science (SPSS). The study observed that medical equipment, drugs and consumable are fundamental requirements of public health intervention, and the lack or inadequate supply of these requirements has severely compromised the efficient implementation of NHIS in the FCT. It concludes that state intervention designed to improve access to affordable health care services should be treated as a social welfare programme which often requires massive investment in a variety of medical equipment and consumables. The paper recommends that the NHIS should collaborate with Civil Society Organizations with interest in public health advocacy to ensure that only properly equipped health care providers with the full complement of health care professionals are accredited for its enrollees; and that the Ministry of Health should conduct regular monitoring and evaluation of NHIS health care facilities to ensure that stipulated standards of health care services are maintained.
... As will, service quality regarded as crucial determinant of competitiveness [18]. Cultural and social factors, technological advances, and growing competition are the principal drivers of service quality initiatives beyond the 1990s [21]. It is now well recognized that high service quality brings about high customer's satisfaction, and vice versa [2]. ...
The aim of this study was to apply SERVQUAL model in the Jordan branch of Arab Open University in order to describe how students perceive service quality and whether they are satisfied with services offered, and to explore the effect of demographic factors on students' satisfaction. A structured questionnaire was developed and distributed to all university students, and the respondents is quoted around 62% of popualtion. The results of this study indicated that there was a positive and significant impact of the factors of empathy, assurance, responsiveness, reliability, curriculum on student satisfaction. In term of demographic factors, the result showed that there was a positive and significant impact for some demographic factors (age, academic program, GPA) on student satisfaction.
... This imply that customers can fill it out easily and swiftly; and It has a standardized analysis procedure to aid interpretation and results. According to Newman (2001), despite the controversies regarding the validity and reliability of SERVQUAL, its application can be found in healthcare. ...
Background: The evaluation of patient satisfaction provides an indicator of the quality of care and contributes to strategies for the improvement of healthcare delivery. Objective: To assess patient satisfaction with services accessed under the contributory scheme at Katsina State in North-West, Nigeria. Methodology: A cross-sectional study with a sample size of 393 Katsina State Contributory Scheme (KTSCS) patients under a formal sector program was done from 1st October to 30th November 2022, at Katsina State, Nigeria. Patients were selected by multistage sampling techniques. Data was collected using a questionnaire adapted from a study by Parasuraman et al., (1988) who designed the SERVQUAL instrument to specifically measure functional service quality using both the gap concept and service quality dimensions. The SERVQUAL instrument, in its original form, contains twenty-two pairs of Likert scale statements structured around five service quality dimensions: These dimensions are: · Tangible: describes the appearance of physical facilities, personnel, and equipment. · Reliability: deals with the ability to perform the promised service dependably and accurately. · Responsiveness: considers the willingness to help customers and provide prompt service. · Assurance: talks about the knowledge and courtesy of employees and their ability to inspire trust and confidence, and · Empathy: the ability to provide caring and individualized attention to customers Results: The overall average satisfaction score was 75.8%. The study found that the positive gap of responsiveness, assurances, and empathy means that patients were satisfied with the quality of the service associated with these three dimensions, however, the negative gaps across the reliability and tangibility indicated that patients’ expectations generally were not being met. Conclusion: This study showed that the overall patients' satisfaction with services accessed was good. However, there is a need for the KTSCS and healthcare providers to continuously improve on the provision of healthcare services and address areas of dissatisfaction.
... The QUALITOMETRO model was developed for the evaluation of online service quality (Franceschini, Cignetti, & Caldara, 1998) where else the SERVPERF model is evaluated by perceptions of service delivered and without expectations and also without the importance weight. However, despite the emergence of these models, SERVQUAL model has stood as the most widely used service quality model to measure service quality (Gabbie & O'Neill, 1996;Newman, 2001). ...
The purpose of this study was to explore consumers' perceptions of Internet retail service quality. The phenomenal growth of Chinese Internet users and the explosive growth of China's e-commerce trade has necessitated this study. This study is a unique contribution to the e-commerce literature as it was accomplished through a phenomenological qualitative based study. This study uses in-depth interviews to identify five dimensions important to Chinese online shoppers in their evaluation of e-service quality. A phenomenological based interviewing was used to explore consumers' perception towards online shopping service quality. This was done by studying their feelings and attitude towards online shopping service quality the resulting data were transcribed, coded and analysed based on service quality themes. The results revealed that information, navigation, variety of products and services, security and responsiveness were key dimensions that affects consumer perception of Internet service quality. These five dimensions are unique to the Internet environment and mark a departure from the traditional service quality models which has dominated the literature for years. T he qualitative approach used in this study is also a significant contribution to the current scenario which mainly consists of quantitative studies. E-Retailers can use the findings of this paper to design a better service quality experience for their customers. By focusing on these five dimensions, e-retailers can formulate effective strategies for their web sites to improve their competitive advantage. Theoretical and managerial implications of the results are also discussed.
... The study included 115 customers of the bank, 31 questions and a seven-point Likert scale (Bahia and Nantel, 2000). According to Newman (2001), the analysis and implementation of the SERVQUAL instrument in major UK banks has reinforced the idea that "fulfillment of promise" is essential to the quality of services. While SERVQUAL focuses on "soft" dimensions , such as empathy and reliability, they are well-suited to the Service Marketing Community, and its findings suggest that effective delivery of difficult factors is a prerequisite for overall service quality. ...
This paper includes an in-depth analysis of the banking service quality with detailed tracking of the elements of customer expectations from banking services in the Republic of North Macedonia. The aim of this paper is to identify the level of client expectations for bank services, determining the essential dimensions that would cause satisfactory banking services. In total 330 bank customers were surveyed for this research, while a modified questionnaire for banking attributes was used. Customer expectations are measured using the SERVQUAL model, where 22 items as part of 5 dimensions are considered the research variables. Through analyzing the data, it was confirmed that the expectations for the Banking service quality in the Republic of North Macedonia are very high, with an average value of 6.53 measured with a seven-point Likert scale. According to the results obtained from the research based on the priorities of the clients for the 5 quality dimensions, Reliability was chosen as the most important dimension of the banking services. From the results of the examined relationship between Reliability as a dimension (dependent variable) and the five characteristics of banks services (independent variables)the following was found: The strongest impact on Reliability as a dimension are the ability of the bank to perform the promised services safely and accurately, then the knowledge and courtesy of bank employees and the ability to provide trust, the appearance of the bank's physical facilities, equipment, employees and communication materials, the care, individual attention that the bank offers to its customers, while the weakest variable is the impact of the bank's readiness to help customers and provide them with fast service.
... Therefore, a quality service provider has a higher opportunity to gain more loyal customers (Parasuraman, Zeithaml & Berry, 1985). Service quality can influence the outcome of an organisation, such as promoting customer loyalty (Newman, 2001;Chodzaza & Gombachika, 2013;Ismail et al., 2016;Gong & Yi, 2018;Budianto, 2019). Loyalty is also described as repurchasing, and the willingness to recommend; it has been found to have a positive relationship with service quality (Dean, 2002). ...
The purpose of this paper is to examine the relationships between service quality, customer satisfaction and customer loyalty in the context of the life insurance business. The Theory of Planned Behaviour was used in constructing the framework which measured service quality. The questionnaire survey method was used to obtain data related to the perception of life insurance policy holders towards their current insurance company. The analysis of 150 life insurance policy holders using multiple regression and SOBEL test showed that customer satisfaction plays a mediating role in the relationship between service quality and customer loyalty. In other words, the effect of mediation is present where service quality gives a positive impact on customer satisfaction, which subsequently gives a positive impact on customer loyalty. Further analysis also revealed that among the five dimensions in the SERVQUAL model, reliability played the most important role in determining customer satisfaction and customer loyalty. The outcome drawn from the current study offers insights for the insurance industry to focus on the dimensions that play a significant role in retaining and capturing more loyal customers. This will assist businesses in gaining profitability and sustainability.
... The researchers had success evaluating the service levels of various airlines in South Africa [71], Dubai [72], Taiwan [53], and the transatlantic route [73] using SERVQUAL. Additionally, SERVQUAL has been applied in a wide range of areas, including hospitality [74], tourism [75], banking [76], healthcare [77], and public services [78]. ...
The service quality ranking of airlines is a crucial factor for their sustainability in the intensely competitive airline market. This study intends to offer further insights in this field to produce simpler and explanatory results, however previous studies have been lacking in terms of sample size, efficiency, and reliability. In order to develop an airline service quality evaluation system that incorporates customer utilities, ideal points, and regret values and performs a confrontation hierarchy topology analysis based on the computation of compromise solutions, the TOPSIS-VIKOR-AISM model is proposed in this work. In addition to supporting consumer choice and airline development, this study offers fresh perspectives on how to assess the effectiveness of airlines and other industries.
Using a critical literature analysis to evaluate various service quality models, this paper aims to identify issues for future research.This research hasinvestigated various Service Quality Models based on literature review.It has examined the various dimensions of the different service quality models, compares similarities, determines their relevance and significancewithin different contexts, and identified the restrictions of the studies.The literature review of various papers on service quality models revealed that the outcome of service quality is determined by several factors, including the type of service setting, the situation, the time, and the need. Therefore, research on service quality measurement must be further developed for more accurate and meaningful metric. This research has explored the linkage between different service quality models. The paper has provided clear information about the consecutive development of various service quality measurement models.
Service quality is a pivotal factor influencing customer satisfaction, loyalty, and overall business success in today's competitive service industries. This paper reviews various models and frameworks developed to measure service quality across diverse sectors, including banking, hospitality, healthcare, and education. Prominent models such as Grönroos' Total Perceived Quality Model and the SERVQUAL model by Parasuraman, Zeithaml, and Berry have significantly contributed to our understanding of how service quality is perceived by customers. These models examine the gap between customer expectations and the actual service delivered, focusing on critical dimensions such as reliability, responsiveness, assurance, tangibility, and empathy. As service industries evolve, particularly with advancements in technology, new models have emerged that integrate technology's role in enhancing service delivery. IT alignment models, such as those proposed by Berkley and Gupta, highlight the importance of integrating information technology into service strategies to improve customer experiences in sectors like banking, hospitality, and retail. Furthermore, sector-specific adaptations of SERVQUAL, such as LODGSERV and DINESERV, illustrate how service quality measurement must be tailored to meet the unique needs of each industry. The review also emphasizes the importance of cultural and contextual factors in service quality perception, suggesting that models developed in one context may not be universally applicable. For example, CUL-HEdPERF incorporates cultural factors specific to higher education in the Gulf region, reflecting the need for service quality models to be adaptable to diverse cultural and regional contexts. This paper also explores the limitations of existing models, particularly in their ability to address the dynamic nature of service industries and the growing importance of technology. The findings suggest that service quality measurement requires continuous refinement to meet changing customer expectations and industry-specific needs. Future research should focus on developing more flexible and dynamic models that account for technological advancements and the evolving landscape of service delivery. By applying these insights, businesses can enhance service quality, improve customer satisfaction, and gain a sustainable competitive advantage.
Orientation: Gap analysis in the information system (IS) sector is difficult to assess.Research purpose: A gap analysis model based on SERVQUAL is proposed to assess the gaps in IS services.Motivation for the study: During coronavirus disease 2019 (COVID-19), there has been an extensive use of distant learning and virtual meeting applications. Yet, there is no well-documented way to evaluate the IS service provided.Research design, approach and method: The proposed model adds a performance dimension covering the main characteristics of IS services. The model is tested on the internet service providers in Egypt as a case study. A questionnaire for the proposed model is developed, validated and distributed.Main findings: The questionnaire is statistically analysed to find whether there is statistical difference between the expectation and the perception for each factor. Then the data are tested to find whether the gender of the respondents, internet service provider and the status of whether the respondent pays for the service themself have a significant effect on the gap scores or not. Finally, an ordinal regression fit is introduced to estimate the overall satisfaction of the customers based on their gap score.Practical/managerial implications: Despite SERVQUAL being an adequate tool to analyse the gaps for different services, it needs some adaptation to fit different services. One important drawback of SERVQUAL analysis for the IS sector is that the dimensions of SERVQUAL do not fully cover the customer expectations in the IS sector.Contribution/value-add: This paper attempts to fill this gap in the literature by introducing the ‘ISSERVQUAL’ model.
Cooperative banks or cooperative societies play a crucial role in the day-today economic activities of the people in the rural area. Many of the villagers rely on these cooperative societies to satisfy their economic needs such as taking loan for their crops, saving their earnings, etc. But in spite of being so close to the rural area and the people, the satisfaction of its customers still remains a question. Are the customers of the cooperative societies satisfied with their service quality? In order to find an answer to this question the present research has been conducted with a sample number of 312 respondents from the Tirunelveli district. The collected data was analysed using Structural Equation Modelling (SEM) using AMOS. One of the major findings of the present research is that the service quality of the cooperative societies has a positive impact on the satisfaction of the customers. Thus, based on this the present research has provided various suggestions in order to increase the satisfaction of the customers.
Customer engagement is always a hot topic for marketers to focus on, but in the digital era, it
become more complex. The twenty-first century is characterized by technical advancements.
Modern marketing is digital marketing. Prior research has been demonstrated a link between
customer involvement and digital marketing, a concept known as digital engagement but empirical
studies fail to describe the impact of digital marketing on competitive advantage and the
intercession role of customer engagement practices. This study attempted to find the mediating
effect of customer engagement on the association of digital marketing and competitive advantage.
Factor analysis and regression analysis in SPSS software were used to test the reliability, validity,
and model fit. The entire study’s Cronbach alpha score is 0.984, indicating that further investigation
is required. Relationship modeling is performed, and it is indicated that there is a link between
digital marketing and competitive advantage, with customer engagement additionally playing a
role in achieving competitive advantage
Customer engagement is always a hot topic for marketers to focus on, but in the digital era, it become more complex. The twenty-first century is characterized by technical advancements. Modern marketing is digital marketing. Prior research has been demonstrated a link between customer involvement and digital marketing, a concept known as digital engagement but empirical studies fail to describe the impact of digital marketing on competitive advantage and the intercession role of customer engagement practices. This study attempted to find the mediating effect of customer engagement on the association of digital marketing and competitive advantage. Factor analysis and regression analysis in SPSS software were used to test the reliability, validity, and model fit. The entire study's Cronbach alpha score is 0.984, indicating that further investigation is required. Relationship modeling is performed, and it is indicated that there is a link between digital marketing and competitive advantage, with customer engagement additionally playing a role in achieving competitive advantage.
Many social networks have emerged nowadays, and they reshape people’s communication, interaction, cooperation and even their learning process. Social media could be able to impact youth life in positive and negative ways. Youth have become addicted to various social media platforms, social networking can impact users physically, psychologically, attitudinally, and/or socially. The youth population is more involved in social media than other walks of life Heavy usage of social network sites can lead to symptoms of substance-related addictions including salience, mood modification, tolerance, withdrawal, relapse, and problems with behavioral addictions.
The dramatic growth in the use of social networking media will bring with it several influences on the social system in Oman. Most Omanis spend more than six hours daily on social media. The excessive usage of social media has become a growing phenomenon and a controversial issue. Omani youth also influenced by social media which has enhanced the exposure of the people and create more awareness among youth. But the impact of social media on Omani youth’s health is not yet explored. The purpose of the study is to explore the influence of social media on youth social life and to understand the effects of social media on youth health in the Sultanate of Oman. Desk Research technique was conducted for this study which basically involved collecting data from the existing online library which covered several academic databases. The study brings out clearly some of the health issues that the younger generation would be exposed to due to the addiction they have in using social media.
Based on this conceptual study, a quantitative study is planned to conduct to create awareness among Omani youth on the effect of social media and the impact on the health. The future study will provide guidelines for the youth population of Oman on the effective utilization of social media platform so that they do not excessively use them and become addicted to it and suggest a well-defined lifestyle and with cutting edge information technology mix would be clearly made known to the youth population of the Sultanate of Oman. The future study is expedient to apply social media in the right direction for Omani youth and create cognizance among youth that proper use of social media becomes a solid tool to educate, inform and groomed the mentality level of youth social media to refine their living style of public, especially for Omani Youth.
Amaç: Bu araştırmanın amacı, Türkiye’de faaliyet gösteren bir beyaz eşya perakende mağazasının sunduğu hizmet kalitesinin mağazadan alış veriş yapan müşterilerin memnuniyeti üzerindeki etkilerinin değerlendirilmesidir. Tasarım/Yöntem: Araştırmada kolayda örneklem yöntemiyle belirlenen 321 katılımcı ile çevrimiçi anket yapılmıştır. Elde edilen veriler SPSS 26.0 paket programıyla analiz edilmiştir. Bulgular: Çalışmadan elde edilen bulgular, perakende hizmet kalitesi bakımından problem çözme boyutu dışında diğer tüm boyutların müşteri memnuniyeti üzerinde anlamlı bir etkisinin olduğunu göstermektedir. Hizmet kalitesinin belirlenmesinde ise en fazla kişisel etkileşim boyutu önemli bir rol oynamakta ve bunu politika, fiziksel görünüm ve güvenilirlik izlemektedir. Sınırlılıklar: Örneklemin Türkiye'de faaliyet gösteren bir perakende mağazasının üç farklı satış şubesinden alışveriş yapan müşterilerden oluşması ve hizmet kalitesinin beş boyut üzerinden değerlendirilmesi araştırmanın kısıtlarını oluşturmaktadır. Özgünlük/Değer: Yapılan literatür incelemesinin sonucunda beyaz eşya sektöründe Perakende Hizmet Kalitesi Ölçeği (RSQS)’nin kullanımına ilişkin herhangi bir çalışmaya rastlanılmamıştır. Bu ölçeğin beyaz eşya sektöründe hizmet kalitesinin değerlendirilmesine ilişkin sağlayacağı katkı araştırmanın özgün değerini oluşturmaktadır.
The connection between consumer satisfaction and service quality may be quite researched in academia. Pertinently, we argue that there is a gap of the contribution of “technology adaptation capabilities” in this relationship. Hence, objective of this empirical paper is to reveal the impacts of service quality on young customers’ satisfaction toward e-commerce in china, considering the mediating effect of technology adaptation capabilities. The independent factor, service quality was measured through SERVQUAL model including its five indicators: ‘Tangibility’, ‘Reliability’, ‘Responsiveness’ ‘Assurance’ and ‘Empathy’. Moreover, customer satisfaction is a notable concern for the organizations to exist and growth. Likewise, prior contemporary research also suggested a requirement for more empirical investigations on the current association. However, hypotheses in this present study are formulated based on the literature, and to the hypotheses, data were collected from young e-commerce users from different cities in China. For analyzing the data structural equation model have been utilized. The result shows that all five indicators contribute to customer satisfaction. Additionally, with the mediation of technology adaptation capabilities, all factors have significant effects on customer satisfaction. This research intended to contribute to the researchers, professionals, investors, executives, and other stakeholders by broadening the profound insights on e-commerce.
The key to successful quality management is primarily the measurement of service quality. As a result, this chapter shows the existing possibilities for measuring service quality and critically discusses them. It turns out that in addition to customer-oriented measurement approaches (e.g. expert observations, customer surveys, complaint analyses), also company-oriented approaches to quality measurement (e. g. benchmarking, employee surveys, suggestion schemes) are used. In the context of the consideration of practical examples and possible application of individual measurement approaches, it finally turns out that, with regard to the strengths and weaknesses shown, the SERVQUAL approach and the SERVPERF approach currently belong to the most widely used measurement approaches. These approaches are presented and evaluated in detail.
Purpose
It is widely evident that trust and commitment are important pillars for strengthening the relationship between financial service firms and their customers. However, it has not been explored how the service quality, perceived cost and role of agents are important for financial service firms. To overcome this gap, this study aims to investigate the role of service quality, perceived cost and the role of agents as the commitment–trust factors in the financial insurance service (Takaful) in Malaysia, enhancing customer satisfaction.
Design/methodology/approach
The study follows a quantitative design in which primary data was collected using a survey instrument. The measurement instrument was adapted from the previous research, and data were collected from 264 customers of the Takaful financial service organizations in Malaysia. The data were analyzed using variance-based structural equational modeling in Smart-PLS software.
Findings
This research has revealed several useful insights that demonstrate a significant impact on service quality, perceived cost and the agents’ role in forging close relationships with their customers. Corporate image has a moderating role in relationships and has significantly impacted takaful insurance companies. The results imply that regardless of the corporate image of the financial service organizations, customers are concerned about the prices and the quality of the agents’ services.
Research limitations/implications
In this study, only the predictors such as service quality, perceived costs and agents’ roles as trust–commitment factors were examined to determine customer satisfaction. Other investigations are highly recommended, such as value co-creation in takaful, takaful customer experience and takaful trust. This study offers insights to takaful insurance companies on how to keep up a positive corporate image, which will boost their trust–commitment factors and ultimately increase customer satisfaction.
Originality/value
By presenting commitment–trust factors and company image in an identifiable framework, the current study has expanded the discussion on takaful financial insurance services. The methodology is developed and rigorously tested to gauge customer satisfaction in takaful financial service organizations’ context.
Electronic Financial services is consists of the financial market such as Bank ,Non banking financial Institutions, etc. and theses e-Financial Institution transfer the fianancials services from saving to investments. These Services rendered by the Financials institutions are called as Financial Services. Median defines financial services activities. This e-financials sector has been growing in term of number and quality financial of services. After the liberalization of Indian Economy in 1990s, the number of financial services is increasing day by day. New trends and Innovative financial Services have been recognized. These include Commercials Banks, Insurance Companies, merchant banking, institutions, mutual funds, factors, leasing and hire purchase, credit rating, agencies, finance companies etc. The e-financial services mean allocation and mobilization of savings and resources. This includes transformation of financial activities into saving into investments. Financial services means the services provided by the financial institutions, These financials institutes consist of a range of organisations which deals managing money, These institutions includes investments banks, brokerages services, insurances services, consumers financials institutes, and non banking financial services etc. Financial Intermediate means collecting the funds from various group of customer funds and make the funds available for those who need the money in terms of loans to those individual and corporate companies. This institution which helps financial services like banks, investment firms, merchant banks, leasing, and venture capital mutual funds companies etc. These financial services provide operation to the financial markets. I. INTRODUCTIONS
The banking sector in Nigeria underwent a drastic restructuring exercise to standardize its operation, and to return trust to stakeholders of deposit money banks in Nigeria, as a result of failing banks that were no longer able to meet up the trends of strategic adjustment exercises by the Central Bank of Nigeria (CBN). However, this study was carried out to examine the effect of merger and acquisition on the non financial performance of banks in Aguata LGA, Anambra State, Nigeria. The study adopted a survey research design method, and it population consisted of only deposit money banks that were involved in merger and acquisition exercise between the periods of 2009-2019. The simple random sampling method was adopted for a sample size of 316. The one way anova and pearson correlation was used to analyze data gotten from the field of study, while the likert style questioaire was used to obtain relevant data from the respondents. The finding from the study revealed that there is a significant positive effect of M&A on the non financial performance of deposit money banks.
The attainment of quality in products and services has become a pivotal concern of the 1980s. While quality in tangible goods has been described and measured by marketers, quality in services is largely undefined and unresearched. The authors attempt to rectify this situation by reporting the insights obtained in an extensive exploratory investigation of quality in four service businesses and by developing a model of service quality. Propositions and recommendations to stimulate future research about service quality are offered.
The publication of the first results of the SERVQUAL instrument provoked a debate on how best to measure service quality. With more than a decade since the publication of those results many researchers have attempted to demonstrate the efficacy, or not, of the SERVQUAL instrument, or to develop their own measurement methods. This paper reviews this debate in relation to six key aspects: the purpose of the measurement instrument; the definition of service quality; models for service quality measurement; the dimensionality of service quality; issues relating to expectations; and the format of the measurement instrument. The main areas of agreement and disagreement are identified. As a result the continued use of the SERVQUAL instrument is called into question, and areas for further research are identified.
The intangibility of services presents a number of problems for the
measurement of quality and customer satisfaction. Proposes a simple
index which can be applied to ordinal or cardinal data and will provide
a convenient aggregate summary of the extent to which a product or
service meets consumer expectations. The index, though simple, is
robust, and is applied to the problem of analysing the quality of
banking services provided to small firms in the United Kingdom.
Since its launch in 1985, SERVQUAL has become a widely adopted technology for measuring and managing service quality. Recently, a number of theoretical and operational concerns have been raised concerning SERVQUAL. Reviews these concerns and proposes a research agenda.
This article investigates how image, perceived service quality and satisfaction determine loyalty in a retail bank setting at the global construct level, as well as the level of construct dimensions. At the global level the results of a large-scale empirical study reveal that image is indirectly related to bank loyalty via perceived quality. In turn, service quality is both directly and indirectly related to bank loyalty via satisfaction. The latter has a direct effect on bank loyalty. At the level of the dimensions underlying aforementioned constructs, it becomes clear that reliability (a quality dimension) and position in the market (an image dimension) are relatively important drivers of retail bank loyalty.
Replicated the 1st author and J. J. Parkington's (1979) research on the relationships between employees and customers in service organizations by analyzing survey data from 142 employees and 968 customers from 28 branches of a bank. Moderate support was found for the 1st author and Parkington's work on correlates of stress for boundary role employees. Support was also found for relationships between branch employees' and branch customers' service perceptions and attitudes as reported by the present 1st author et al (1980). Significant relationships were reported between branch employees' perceptions of organizational human resources practices and branch customers' attitudes about service. Employee attitudes and customer attitudes were related to their own and one another's turnover intentions. Results are discussed from the perspective of promoting an integration of consumer and organizational behavior in the service sector. (51 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
The chapter presents a summary and extension of our book, Winning the Service Game, published in 1995 by Harvard Business School Press (Schneider
& Bowen
, 1995). We summarize the “rules of the game” we had presented there concerning the production and delivery primarily of consumer
services and note several advances in thinking since we wrote the book. We emphasize that people (customers, employees, and
managers) still are a prominent key to success in service and that this should be fully recognized in the increasingly technical
sophistication of service science
. The foundation of this thesis is the idea that promoting service excellence and innovation
requires an understanding of the co-creation of value by and for people. Further, that such co-creation is most likely to
effectively occur when an appropriate psycho-social context is created for people as they produce, deliver and experience
a service process. Such a context is the result of understanding the complexities of the people who are a central component
of the service delivery
system.
textlessptextgreaterThe attainment of quality in products and services has become a pivotal concern of the 1980s. While quality in tangible goods has been described and measured by marketers, quality in services is largely undefined and unresearched. The authors attempt to rectify this situation by reporting the insights obtained in an extensive exploratory investigation of quality in four service businesses and by developing a model of service quality. Propositions and recommendations to stimulate future research about service quality are offered.
Although a common theme in the service quality literature is that organizations must create and maintain a climate for service in order for employees to effectively deliver service, few studies exist that evaluate climate for service components against a criterion of customer satisfaction. The effectiveness of different aspects of a climate for service is evaluated by determining the relationships between service climate components and facets of customer satisfaction, as rated by 538 employees and 7,944 customers across 57 branches of a large bank. All service climate components were significantly related to at least one facet of customer satisfaction (e.g., teller service). Seeking and sharing information about customers' needs and expectations, training in delivering quality service, and rewarding and recognizing excellent service were the practices that were most highly related to satisfaction with service quality.
The author examines conceptual and operational issues associated with the “perceptions-minus-expectations” (P-E) perceived service quality model. The examination indicates that the P-E framework is of questionable validity because of a number of conceptual and definitional problems involving the (1) conceptual definition of expectations, (2) theoretical justification of the expectations component of the P-E framework, and (3) measurement validity of the expectation (E) and revised expectation (E*) measures specified in the published service quality literature. Consequently, alternative perceived quality models that address the problems of the traditional framework are developed and empirically tested.
The authors investigate the conceptualization and measurement of service quality and the relationships between service quality, consumer satisfaction, and purchase intentions. A literature review suggests that the current operationalization of service quality confounds satisfaction and attitude. Hence, the authors test (1) an alternative method of operationalizing perceived service quality and (2) the significance of the relationships between service quality, consumer satisfaction, and purchase intentions. The results suggest that (1) a performance-based measure of service quality may be an improved means of measuring the service quality construct, (2) service quality is an antecedent of consumer satisfaction, (3) consumer satisfaction has a significant effect on purchase intentions, and (4) service quality has less effect on purchase intentions than does consumer satisfaction. Implications for managers and future research are discussed.
The following study demonstrates that service quality assessment using importance-performance analysis may be a more useful strategic management tool than the gap measures recommended by the authors of the SERVQUAL scale. An example from the health care industry highlights the utility of the proposed method for purposes of strategic decision making.
Since the release of SERVQUAL and its findings, much has been written on service quality. In this study, we extend the SERVQUAL concept by adding product attributes and examining the combined results. The conclusions reached are that the product dimension is uppermost in the customer’s mind and, by excluding it, SERVQUAL only told half a story, and the less important half at that. For best results, we provide recommendations on how to incorporate customer service (service quality) with product offerings into an entity’s operations.
The author examines conceptual and operational issues associated with the "perceptions-minus-expectations" (P-E) perceived service quality model. The examination indicates that the P-E framework is of questionable validity because of a number of conceptual and definitional problems involving the (1) conceptual definition of expectations, (2) theoretical justification of the expectations component of the P-E framework, and (3) measurement validity of the expectation (E) and revised expectation (E*) measures specified in the published service quality literature. Consequently, alternative perceived quality models that address the problems of the traditional framework are developed and empirically tested.
The service profit chain is a simple conceptual framework linking employee satisfaction and loyalty, customer satisfaction and loyalty, and financial performance. Although widely used by practitioners, the service profit chain's series of hypothesized relationships between employee, customer, and financial outcomes has not been rigorously tested using data that span all components of the model. Panel data from the branches of a large regional bank are used to test individually each of the service profit chain's constituent hypotheses. The results generally support the model, but there are some exceptions. Further work is needed to refine and simplify several critical measures and to enhance the analysis to test the service profit chain as a complete system of related hypotheses.
Reports the findings of a small-scale survey undertaken with a view to establishing the extent to which customers of retail banks are influenced in their expectations of quality and in their perceptions of service received according to their awareness of service charges imposed by banks. Finds that customers who were aware of banking charges had higher expectations of quality than those who were not. Further, customers who were aware of banking charges perceived receiving a higher quality service than those who were not aware. Although the findings were not statistically significant, the general direction of the relationship was maintained across all the variables measured.
These results may be summarized as follows: When branch employees perceive a strong service orientation in their branch, the customers of those branches report not only that they receive generally superior service, but that specific facets of service are handled in a superior manner. In addition, employees themselves experience less negative consequences at work when their branch has more of an enthusiastic orientation to service. Thus, employees are less dissatisfied and frustrated, more likely to plan to remain in their branch, and they experience less role conflict and role ambiguity when the branch is more like employees feel it should be— that is, more enthusiastic in its approach to service.
The service encounter between an organisation's employees and its
customers, and the ensuing implications for service operations and
management are important. Attention is focused on employment strategies
to include selection and training, the development and implementation of
customer care programmes and the management of all interpersonal
relationships within an organisation.
Describes a study performed in Canada to develop a reliable and valid scale for the measurement of the perceived service quality of bank services. A sample of retail banking customers was questioned. The proposed scale is called banking service quality (BSQ) and comprises 31 items which span six dimensions: effectiveness and assurance; access; price; tangibles; services portfolio and reliability.
Increasing competition on international markets has led many companies to consider quality as a strategic tool capable of influencing market share and return on investment. Yet a review of the marketing literature reveals a serious lack of explanatory and empirical studies on the concept of quality and its related phenomena as it applies to the service sector. This article presents the results of an exploratory study on service quality in a financial institution setting, using data collected from 1,224 respondents. A set of six factors that explain perceived quality is identified, namely the degree of customer satisfaction, the contact personnel, the internal organisation, the physical environment and instruments, the corporate image, and the personnel/customer interaction during the service encounter.
The use of technology in the delivery of banking services is becoming increasingly prevalent as it is being employed to reduce costs and eliminate uncertainties. This research investigates the role that technology plays in Australian banking and its impact on the delivery of perceived service quality. A sample of 440 electronic banking customers was taken and 300 useable questionnaires were analysed. Using the Hemmasi et al. importance-performance grid, results indicated that consumers have perceptual problems with some aspects of electronic banking. Some strategic implications are discussed.
States that the financial services industry has become one of the USA most visible players in the tough, new competitive era. What worked for corporations in the past has been re-engineered; re-evaluated, reprocessed, and reinvented in hopes of entering this new era with an edge on competition. Presents three corporate strategies of today's banking industry’s “heavy-hitters”. Each corporation has a strategy unique to its corporate culture, but all of these banking corporations have the same desire: to be the customer’s number one choice for their banking products and services. Customers equal profitability, and profitability equates to future success and prosperity. The banking industry has witnessed an evolution from the old way of doing business. With this evolution comes new possibilities in all facets of the business environment. Helps to illustrate how each corporation is “rising to the occasion” and developing their own unique strategies to remain a successful and profitable player in the banking game.
This paper focuses on an important new service management strategy: the operations capabilities-service quality-performance (C-SQ-P) triad. In order to understand what generic operations capabilities influence the strategic behavior of high performing service firms, we explore three related questions: What generic operations capabilities are among the strategic determinants of service quality? Does service quality affect market performance? How is market conduct related to the C-SQ-P triad? These questions are investigated using a stylized capabilities-based model of service quality that simultaneously assesses their impact upon a firm's market performance. Several insights emerge from our research: a) generic operations capabilities affect service quality and performance, although not all relationships are direct; b) service quality know-how and innovations can be directly observed and imitated; c) the effects of technological leadership and market acuity on service quality are moderated by the absorptive capacity of employees to recognize and exploit their potential, and hence, investments in people are critical to success; d) market conduct influences the generic capabilities of the firm more than market performance, ceteris paribus; and e) total factor productivity and service quality are negatively correlated.
Prior to the establishment of the first formal courses in service management
in the early 1970s, little research had been carried out to examine the properties of service activities that distinguished
them from more-extensively examined activities of manufacturing
organizations. While the traditional techniques of manufacturing management were invaluable to service managers, it was quickly
discovered that service managers had to contend with a set of problems that the traditional tools could not solve.
textlessptextgreaterThe authors investigate the conceptualization and measurement of service quality and the relationships between service quality, consumer satisfaction, and purchase intentions. A literature review suggests that the current operationalization of service quality confounds satisfaction and attitude. Hence, the authors test (1) an alternative method of operationalizing perceived service quality and (2) the significance of the relationships between service quality, consumer satisfaction, and purchase intentions. The results suggest that (1) a performance-based measure of service quality may be an improved means of measuring the service quality construct, (2) service quality is an antecedent of consumer satisfaction, (3) consumer satisfaction has a significant effect on purchase intentions, and (4) service quality has less effect on purchase intentions than does consumer satisfaction. Implications for managers and future research are discussed.
We provide a mathematical framework for assessing the value of customer satisfaction. The framework enables managers to determine which customer satisfaction elements have the greatest impact, and how much money should be spent to improve particular customer satisfaction elements. This makes it possible to hold customer satisfaction programs accountable, in the way that other business programs are held accountable, by forcing them to demonstrate their benefits with respect to bottom-line profitability. We use an individual-level model of loyalty and retention, and then build up to market share by aggregation. We demonstrate the application of our approach in a pilot study of a city's retail banking market.
The definition and measurement of service quality as a 5-dimensional construct, as in SERVQUAL, appears to suffer from a number of methodological shortcomings. A review of the potential problems and the findings from an empirical study are presented in this article. The findings suggest that the dimensionality of service quality may depend on the type of services under study. The use of mixed-item wording and the current operationalization of service quality on the basis of gap scores appear in the process of using SERVQUAL, the results of this study suggest to exercise caution. Suggestions are provided with implications for theory development and measurement in the service marketing area.
SERVQUAL, which involves the calculation of the differences between expectations and perceptions on a number of prespecified criteria, is currently the most popular measure of service quality. However, there are some serious problems in conceptualizing service quality as a difference score; these are reviewed and empirically investigated in this paper. An alternative method for measuring service quality is found to have favorable psychometric properties and to be more efficient than SERVQUAL.
The purpose of this paper is to investigate the interrelationships among the factors that emerged in the customer service quality instrument originally developed by Avkiran (1994) hereafter referred to as BANKSERV. BANKSERV measures service quality as perceived by the customer. Credibility is modelled as an outcome of the causal variables staff conduct, communication and access to teller services. Path analysis is used to examine the strength and significance of the hypothesised causal linkages; measuring the goodness-of-fit for the model is outside the scope of this study. The results indicate that the outcome variable is shaped by the three hypothesised variables, with staff conduct as the dominant intervening variable explaining the large indirect effects.
Defining and measuring the quality of service has been a major challenge for health care marketers. A comprehensive service quality measurement scale (SERVQUAL) is empirically evaluated for its potential usefulness in a hospital service environment. Active participation by hospital management helped to address practical and user-related aspects of the assessment. The completed expectations and perceptions scales met various criteria for reliability and validity. Suggestions are provided for the managerial use of the scale, and a number of future research issues are identified.
Companies that want to improve their service quality should take a cue from manufacturing and focus on their own kind of scrap heap: customers who won't come back. Because that scrap heap can be every bit as costly as broken parts and misfit components, service company managers should strive to reduce it. They should aim for "zero defections"--keeping every customer they can profitably serve. As companies reduce customer defection rates, amazing things happen to their financials. Although the magnitude of the change varies by company and industry, the pattern holds: profits rise sharply. Reducing the defection rate just 5% generates 85% more profits in one bank's branch system, 50% more in an insurance brokerage, and 30% more in an auto-service chain. And when MBNA America, a Delaware-based credit card company, cut its 10% defection rate in half, profits rose a whopping 125%. But defection rates are not just a measure of service quality; they are also a guide for achieving it. By listening to the reasons why customers defect, managers learn exactly where the company is falling short and where to direct their resources. Staples, the stationery supplies retailer, uses feedback from customers to pinpoint products that are priced too high. That way, the company avoids expensive broad-brush promotions that pitch everything to everyone. Like any important change, managing for zero defections requires training and reinforcement. Great-West Life Assurance Company pays a 50% premium to group health-insurance brokers that hit customer-retention targets, and MBNA America gives bonuses to departments that hit theirs.
Despite a flurry of activities aimed at serving customers better, few companies have systematically revamped their operations with customer loyalty in mind. Instead, most have adopted improvement programs ad hoc, and paybacks haven't materialized. Building a highly loyal customer base must be integral to a company's basic business strategy. Loyalty leaders like MBNA credit cards are successful because they have designed their entire business systems around customer loyalty--a self-reinforcing system in which the company delivers superior value consistently and reinvents cash flows to find and keep high-quality customers and employees. The economic benefits of high customer loyalty are measurable. When a company consistently delivers superior value and wins customer loyalty, market share and revenues go up, and the cost of acquiring new customers goes down. The better economics mean the company can pay workers better, which sets off a whole chain of events. Increased pay boosts employee moral and commitment; as employees stay longer, their productivity goes up and training costs fall; employees' overall job satisfaction, combined with their experience, helps them serve customers better; and customers are then more inclined to stay loyal to the company. Finally, as the best customers and employees become part of the loyalty-based system, competitors are left to survive with less desirable customers and less talented employees. To compete on loyalty, a company must understand the relationships between customer retention and the other parts of the business--and be able to quantify the linkages between loyalty and profits. It involves rethinking and aligning four important aspects of the business: customers, product/service offering, employees, and measurement systems.
Knowing Your Customer. A Research Report into Customer Information
- S King
Assessing the validity of SERVQUAL: an empirical analysis in Hong Kong”
- S S K Lam
The service revolution: who won?
- R Zemke