Assessment of Service Quality in Kand-O

Transcription

Jurnal UMP Social Sciences and Technology Management
Vol. 3, Issue. 1,2015
Assessment of Service Quality in Kand-O-Kav Machine
from customer point of view
Davod Hajizadeh,
M.A. Student, Department of Management, Business Branch, Islamic Azad University, Tehran, Iran
Salar Fathi,
M.A. Student, Department of Management, Business Branch, Islamic Azad University, Tehran, Iran
Leyla Farjou
Assistant Prof, Department of Management, Business Branch, Islamic Azad University, Tehran, Iran
Abstract
The present study Assessment of Service Quality in Kand-O-Kav Machine from customer
point of view. Required information is adapted by the questionnaire-based on research model
and is responded by 80 operators of private and public companies which are the Kand-O-Kav
Machine customers. The Wilcoxon and Friedman tests are used to analyze data and
reliability through Cronbach's alpha, which is 0.84 has been measured. The result of this
study confirmed that except empathy, between perceptions and expectations of customers
from five dimensions of service quality, there is significant differences also the most gap
related to tangible factors and accountability and the least gap related to empathy and
reliability, most important related to assurance and reliability and least important related to
responsiveness and empathy. At the end recommendations were presented based on research
findings.
Keywords: customer satisfaction- Service Quality - expectations and perceptions of
consumers
Introduction
In today’s turbulent market environment, many businesses are facing increasing competition
and they have to increase the quality of their products and services. In some businesses such as
travel, tourism, catering and banking the delivery of high quality services to consumers is
increasingly recognized as a key factor affecting the performance of the firm (Atilgan et al., 2003).
According to Asubonteng et al., (1996), due to intense competition and the hostility of
environmental factors, service quality has become a cornerstone marketing strategy for companies.
This highlights how important improving service quality is to organizations for their survival and
growth since it could help them tackle these challenges they face in the competitive markets. This
means that service-based companies are compelled to provide excellent services to their customers
in order to have a sustainable competitive advantage. There is however, a need for these
organizations to understand what service quality is in order to attain their objectives. In service
marketing literature, service quality is generally defined as the overall assessment of a service by
the customers, (Eshghi et al., 2008, p.121) or the extent to which a service meets customer’s needs or
expectations, Asubonteng et al., (1996). Parasuraman et al., (1985) define service quality as “The
discrepancy between consumers’ perceptions of services offered by a particular firm and their
expectations about firms offering such services”. If what is perceived is below expectation,
consumer judges quality as low and if what is perceived is meets or exceeds expectation then
consumer sees quality to be high. Critical component of service quality identified are; consumer’s
expectation which is seen as what they feel service provider should offer and this is influenced by
his/her personal needs, past experience, word-of-mouth and service provider’s communications,
Parasuraman et al., (1985, p.49). However, this meaning of expectation is that of service quality
literature which is different from expectation in the customer satisfaction literature which defines
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expectation as predictions made by consumer about what is likely to happen during an impending
transaction. Consumers’ perception of performance is what he/she experiences, (Parasuraman et
al., 1988, p.17). Generally, it is interesting to study expectations and experiences of consumers in
many different contexts.
Statement of Problem
Many managers have realized that they provide goods and services that meet their customers'
expectations and thereby lead to their satisfaction (Steward 1996).
Today, organizations knows their customers as valuable assets and they want from employees
to maintain their customers (Rousta 1381). For this purpose, you must identify the factors that affect
on customer satisfaction. Since Kand-O-Kav Machine Company from its inception, providing
different services including after sales services. Ideal target of Kand-O-Kav Machine Company is
removing the gaps and achieve to customer satisfaction with the service provided.
So in this research the main questions are:
How is the quality of service provided to customers by Kand-O-Kav Machine Company?
Which factors will increase customer satisfaction?
What is the appropriate methods for reaching to Ideal target?
Literature Review
1. Service Concept:
A study carried out by Johns, (1998, p.954) points out that the word ‘service’ has many
meanings which lead to some confusion in the way the concept is defined in management
literature, service could mean an industry, a performance, an output or offering or a process. He
further argues that services are mostly described as ‘intangible’ and their output viewed as an
activity rather than a tangible object which is not clear because some service outputs have some
substantial tangible components like physical facilities, equipment and personnel.
Quality has been considered as being an attribute of an entity (as in property and character), a
peculiar and essential character of a product or a person (as in nature and capacity), a degree of
excellence (as in grade) and as a social status (as in rank and aristocracy) and in order to control
and improve its dimensions it must first be defined and measured (Ghylin et al., 2008, p.75).
Some definitions of quality pointed out by Hardie & Walsh (1994, p.53) include;
“Quality is product performance which results in customer satisfaction freedom from product
deficiencies, which avoids customer dissatisfaction” – (Juran, 1985, p.5)
“Quality is the extent to which the customers or users believe the product or service surpasses
their needs and expectations” – (Gitlow et al. 1989)
“Quality: the totality of features and characteristics of a product that bear on its ability to
satisfy stated or implied needs”– International Standards Organization (ISO).
“Quality is the total composite product and service characteristics of marketing, engineering,
manufacture and maintenance through which the product in use will meet the expectations of the
customer” – (Feigenbaum, 1986)
“Quality is anything which can be improved” – (Imai, 1986, p. xxiii.)
“Quality is the loss a product causes to society after being shipped” – (Taguchi, 1986, p.1)
“We must define quality as “conformance to requirement” – (Crosby, 1979, p.17).
“Quality is the degree or grade of excellence etc. possessed by a thing” – (Oxford
English Dictionary).
“Quality is defined as the summation of the affective evaluations by each customer of each
attitude object that creates customer satisfaction”- (Wicks & Roethlein, 2009, p.90).
“Quality is the totality of features and characteristics in a product or service that bear upon its
ability to satisfy needs” (Haider, 2001, p.8).
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Vol. 3, Issue. 1,2015
2. Service quality Concept
Service quality is considered an important tool for a firm’s struggle to differentiate itself from
its competitors (Ladhari, 2008, p.172). The relevance of service quality to companies is emphasized
here especially the fact that it offers a competitive advantage to companies that strive to improve it
and hence bring customer satisfaction.
Service quality has received a great deal of attention from both academicians and practitioners
(Negi, 2009) and services marketing literature service quality is defined as the overall assessment of
a service by the customer (Eshghi et al., 2008, p.121). Ghylin et al., (2008, p.76) points out that, by
defining service quality, companies will be able to deliver services with higher quality level
presumably resulting in increased customer satisfaction. Understanding service quality must
involve acknowledging the characteristics of service which are intangibility, heterogeneity and
inseparability,(Parasuraman et al., 1985, p.42); (Ladhari, 2008, p.172). In that way, service quality
would be easily measured.
3. Customers’ Expectations compared to Perceptions
Gronroos, (1982); Parasuraman et al., (1985) have proposed that customer’s perception of
service quality is based on the comparison of their expectations (what they feel service providers
should offer) with their perceptions of the performance of the service provider.
Parasuraman et al., (1988, p.17) point out that expectation is viewed differently in both
satisfaction literature and service quality literature. In satisfaction literature, expectations are
considered as ‘predictions’ by customers about what is likely to happen during a particular
transaction while in service quality literature, they are viewed as desires or wants of consumers,
that is, what they feels a service provider ‘should’ offer rather than ‘would’ offer.
For our study, we will define expectations as desires or wants of customers because this allows
us to know exactly what service providers show offer and this is based on based past experience and
information received (Douglas & Connor, 2003, p.167). It I important to understand and measure
customer’s expectations in order to identify any gaps in delivering services with quality that could
ensure satisfaction, Negi, (2009).
Perceptions of customers are based solely on what they receive from the service encounter
(Douglas & Connor, 2003, p.167).
Parasuraman et al., (1985, p.47) identified 10 determinants used in evaluating service quality;
reliability, responsiveness, competence, access, courtesy, communication, credibility, security,
understanding the customer, and tangibles. Most of these determinants of service quality require
the consumer to have had some experience in order to evaluate their level of service quality ranging
from ideal quality to completely unacceptable quality. They further linked service quality to
satisfaction by pointing out that when expected service is greater than perceive service, perceived
quality is less than satisfactory and will tend towards totally unacceptable quality; when expected
service equals perceived service, perceived quality is satisfactory; when expected service is less than
perceived service, perceived quality is more than satisfactory and will tend towards ideal quality
(Parasuraman et al., 1985, p.48).
Parasuraman et al., (1988, p.17) point out that expectation is viewed differently in both
satisfaction literature and service quality literature. In satisfaction literature, expectations are
considered as ‘predictions’ by customers about what is likely to happen during a particular
transaction while in service quality literature, they are viewed as desires or wants of consumers,
that is, what they feels a service provider ‘should’ offer rather than ‘would’ offer.
For our study, we will define expectations as desires or wants of customers because this allows
us to know exactly what service providers show offer and this is based on based past experience and
information received (Douglas & Connor, 2003, p.167). It is important to understand and measure
customer’s expectations in order to identify any gaps in delivering services with quality that could
ensure satisfaction, Negi, (2009).
Perceptions of customers are based solely on what they receive from the service encounter
(Douglas & Connor, 2003, p.167). Parasuraman et al., (1985, p.47) identified 10 determinants used in
evaluating service quality; reliability, responsiveness, competence, access, courtesy,
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communication, credibility, security, understanding the customer, and tangibles. Most of these
determinants of service quality require the consumer to have had some experience in order to
evaluate their level of service quality ranging from ideal quality to completely unacceptable quality.
They further linked service quality to satisfaction by pointing out that when expected service is
greater than perceive service, perceived quality is less than satisfactory and will tend towards totally
unacceptable quality; when expected service equals perceived service, perceived quality is
satisfactory; when expected service is less than perceived service, perceived quality is more than
satisfactory and will tend towards ideal quality (Parasuraman et al., 1985, p.48).
4. Customer satisfaction
Customer satisfaction is conceptualized as been transaction-specific meaning it is based on the
customer’s experience on a particular service encounter, (Cronin & Taylor, 1992) and also some
think customer satisfaction is cumulative based on the overall evaluation of service experience
(Jones & Suh, 2000). These highlight the fact that customer satisfaction is based on experience with
service provider and also the outcome of service.
5. Relationship between service quality and customer satisfaction
According to Sureshchandar et al., (2002, p. 363), customer satisfaction should be seen as a
multi-dimensional construct just as service quality meaning it can occur at multi levels in an
organization and that it should be operationalized along the same factors on which service quality
is operationalized. Parasuraman et al., (1985) suggested that when perceived service quality is high,
then it will lead to increase in customer satisfaction. He supports that fact that service quality leads
to customer satisfaction and this is in line with Saravana & Rao, (2007, p.436) and
Lee et al., (2000, p.226) who acknowledge that customer satisfaction is based upon the level of
service quality provided by the service provider.
6. Service Quality Models
As stated earlier service quality has been defined differently by different people and there is no
consensus as to what the actual definition is. We have adopted the definition by Parasuraman et al.,
(1988, p.5), which defines service quality as the discrepancy between a customers’ expectation of a
service and the customers’ perception of the service offering.
7. The Development and Evolution of the SERVQUAL Model
“Parasuraman et al. (1985) identified 97 attributes which were found to have an impact on
service quality. These 97 attributes were the criteria that are important in assessing customer’s
expectations and perceptions on delivered service” (Kumar et al., 2009, p.214).
These attributes were categorized into ten dimensions (Parasuraman et al., 1985) and later
subjected the proposed 97 item instruments for assessing service quality through two stages in
order to purify the instruments and select those with significant influences (Parasuraman et al.,
1988, p.13). The first purification stage came up with ten dimensions for assessing service quality
which were; tangibles, reliability, responsiveness, communication, credibility, security,
competence, courtesy, understanding, knowing, customers, and access. They went into the second
purification stage and in this stage they concentrated on condensing scale dimensionality and
reliability. They further reduced the ten dimensions to five which were;
Tangibility: physical facilities, equipment, and appearance of personnel
Reliability: ability to perform the promised service dependably and accurately
Responsiveness: willingness to help customers and provide prompt service
Assurance: knowledge and courtesy of employees and their ability to inspire trust and
confidence
Empathy: caring individualized attention the firm provides to its customers
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Vol. 3, Issue. 1,2015
The Oretical Framework Of The Research
In this research, for investigating key factors, Parasuraman, A., Zeithaml, V. A., & Berry (1991)
questionnaire based on five dimensions of Tangibles, Reliability, Assurance, Empathy,
Responsiveness has been used. According to that, research conceptual model based on research
subject is as following.
Figure 1: Research conceptual model
Methodology of the research
Present research is a descriptive-survey research. Statistical universe includes all Kand-O-Kav
Machine customer. In order to gather data, a questionnaire has been used. The questionnaire
consists of two parts. In the first part demographic information such as gender, education level,
age, etc. were allocated. In the second part, 22 questions were allocated and they were confirmed by
vote taking and consultation with experts and decision-makers and then after investigating its
reliability and validity, it has dealt with data gathering. The questions were in closed type and
Likert scale has been used that includes five points of strongly disagree, disagree, partially, agree,
strongly agree. The way of scoring choices is from very low (1) to very high (5). It is worth
explaining that the questionnaire was investigated by experts and professors and its reliability and
validity were examined and they confirmed. In addition, hypotheses of the research are as follows:





There is difference between perceptions and expectations of customers from quality of services provided
in dimension of Tangibles
in dimension of Reliability
in dimension of Assurance
in dimension of Empathy
in dimension of Responsiveness

Analyzing the Data of The Research
In this research, independent variables are Tangibles, Reliability, Assurance, Empathy,
Responsiveness and dependent variables is customer satisfaction. In following, results of research
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data analysis is presented: according to the analytical research model and for hypotheses
examination related to the relationship between dependent and independent variables, the
Spearman correlation coefficient and linear regression testing by SPSS software have been used.
Each coefficients of these components in the fitted regression model reflect the relation extent of
this component with variable response.
Kolmogorov-Smirnov test:
With respect to, one of the default assumptions of the Pearson correlation test is observations
normally distributed, first, to ensure normality of the variables, we used the KS test.
Component
Tangibles
Reliability
Assurance
Empathy
Responsiveness
Table1: Kolmogorov-Smirnov test
KS
Signifi
statistic
cant level
3.618
0.000
2.238
0.000
4.615
0.000
3.602
0.000
3.602
0.000
re
sult
Non-Normal
Non-Normal
Non-Normal
Non-Normal
Non-Normal
Wilcoxon test
The Hypotheses tests with Wilcoxon test
First hypothesis: There is difference between perceptions and expectations of customers from
quality of services provided in dimension of Tangibles
The results of this test is brought in Table2:
Table2: Wilcoxon test for the first hypothesis
The mean of customer perceptions
and expectations in dimension of
Tangibles
Z
-5.591
Significance level
0.000
The significance level is less than 0.05 so we can say there is difference between perceptions
and expectations of customers from quality of services provided in dimension of Tangibles
Second hypothesis: There is difference between perceptions and expectations of customers
from quality of services provided in dimension of Reliability
Reliability
Z
-2.309
Significance level
0.000
and expectations of customers from quality of services provided in dimension of Reliability
Third hypothesis: There is difference between perceptions and expectations of customers
from quality of services provided in dimension of Assurance
232
Z
Significance
level
Vol. 3, Issue. 1,2015
Assurance
-3.106
0.000
and expectations of customers from quality of services provided in dimension of Assurance
Fourth hypothesis: There is difference between perceptions and expectations of customers
from quality of services provided in dimension of Empathy
Empathy
Z
-1.548
Significance level
0.000
and expectations of customers from quality of services provided in dimension of Empathy
Fifth hypothesis: There is difference between perceptions and expectations of customers from
quality of services provided in dimension of Responsiveness
The mean of customer perceptions and
expectations in dimension of
Responsiveness
Z
-5.079
Significance level
0.000
and expectations of customers from quality of services provided in dimension of Responsiveness
Conclusion And Suggestions
First hypotheses
There is difference between perceptions and expectations of customers from quality of services
provided in dimension of Tangibles
Results of the study showed there is difference between perceptions and expectations of
customers from quality of services provided in dimension of Tangibles. This finding is consistent
with the results of Chingang Nde Daniel and Lukong Paul Berinyuy..
Second hypotheses
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provided in dimension of Reliability
customers from quality of services provided in dimension of Reliability. This finding is consistent
Third hypotheses
provided in dimension of Assurance
customers from quality of services provided in dimension of Assurance. This finding is consistent
Fourth hypotheses
provided in dimension of Empathy
customers from quality of services provided in dimension of Empathy. This finding is consistent
Fifth hypotheses
provided in dimension of Responsiveness
customers from quality of services provided in dimension of Responsiveness. This finding is
consistent with the results of Chingang Nde Daniel and Lukong Paul Berinyuy.
Research suggestions
Research Implementation Suggestions
According to studies conducted in the research process and the results of statistical analysis of
research data can be offered the following implementation suggestions:

have up-to-date equipment for services

Have Employees with well-dressed and appear neat.

When promise to do something by a certain time, must do it.

When customer has a problem, should show sincere interest in solving the problem.

Perform the service right the first time.

provide services at the time they promise to do so

Employees make information easily obtainable by customers.

Employees must give prompt services to customers.

Kand-O-Kav Machine must has a way that Customers feel safe in their transactions with the
employees

Kand-O-Kav Machine must give customers individual attention
 Employees of Kand-O-Kav Machine must understand the specific needs of their customers.
The other research suggestions

It is recommended that future researchers to use from this model in other organizations and
compare the results with this research.

It is recommended that future researchers to use from other models.
 It is recommended that future researchers to use Mediating variables such as organization
resources.
Limitations of the research




232
Some people do not cooperate in completing the questionnaire.
The lack of a standard questionnaire for survey the research purposes.
Lack of scientific sources about this subject.
Time-limited for further investigation.
Vol. 3, Issue. 1,2015
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Assessment of Service Quality in Kand-O

Transcription

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