Impacts of Service Quality on Customer Satisfaction: A Case of Corporation X

Advisors 　： Professor Hao-Wei Yang 　　 Professor Wang-Ching Chen

Presenter ： Chih-Lei ChengDec. 9. 2013

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Contents

Introduction1

Literature Review2

Methodology3

Impacts of Service Quality on Customer Satisfaction A Case of Corporation X

Research Procedures

The Purposes of the Study

The Statement of the Problem

The Background and Motivation

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Introduction

Background and motivation

With the downward world economy in the latest years, the economy of Taiwan has been involved with many unavoidably junctures, such as euro crisis.

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Introduction

Background and motivation

The importance of quality to a corporation’s long term success is well acknowledged (Deming, 1993; Feigerbourm, 1991, & Juran, 1995).

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Introduction

The Statement of the Problem

Although many service quality models have been presented, researchers were not of one mind about the models and measurements.

Very little research measures the differences between the customer importance and satisfaction.

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Introduction

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To provide a new approach to assist retailers in better management strategies

The Purpose of the Study

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To construct service quality dimensions and research framework for food

retail chains

2

To explore the differences between customer importance and customer satisfaction toward retail chains

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Introduction

The Importance of this study

This study integrating with different measurements will enable managers to look into some hidden.

Introduction

Conclusion& Suggestions

Questionnaire Design

Research Framework

QuestionnaireData

Analysis

Research Procedures

Background & Motivation

Literature Review

Research Procedures

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Purpose of this Study

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Contents

Introduction1

Literature Review2

Methodology3

Impacts of Service Quality on Customer Satisfaction A Case of Corporation X

Service Quality

A Case of the Study

The Retail Industry of Taiwan

The Revolution of Retail Industry

Customer Satisfaction

SERVQUAL Model

Importance-Performance Analysis

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Literature Review

The Revolution of Retail Industry

From 1900s, 1900 - 1940

1950s - 1970s

1970 - 1990

1990 - Nowadays

,

• Local corner stores

• Choice was limited

• Automobile• Fridge• Merchants &

Department stores

• Wartime baby boomers' population

• The explosion of suburbs

• Malls & Mass retailers

• The big box stores

• Small merchants out of business

• E-commerce's

• Eastman Kodak 

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Literature Review

The Retail Industry of Taiwan Retail can be classified by marketing strategy：

1. Department Store

2. Supermarket

3. Convenience Store

4. Mass Merchant

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Literature Review

A Case of the Study This study plans to serve the corporation, which was

originally founded in Changhua, Taiwan in 1989.

This corporation owns 6 retail chains.

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Literature Review

Service Quality The competitive advantage can be performed

through quality management practices, which lead to a service quality that is better than the one of other competitors in marketing.

(Flynn, Schoroeder, & Sakakibara, 1995; Kull & Wacker, 2010; Naor et al., 2008)

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Literature Review

The Definition of Service Quality Service Quality has been characterized as an

attitude.

(Bolton & Drew, 1991; Parasuraman et al., 1988)

Service quality can be evaluated by interaction with service providers.

(Lenka & Mohapatra, 2009)

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Literature Review

SERVQUAL Model Parasuraman, Zeithaml, and Berry (1985) proposed

service quality model (PZB Model). • Gap 1－ Customer Expectation-Management Perception Gap • Gap 2－Management Perception-Service Quality Specification Gap • Gap 3－ Service Delivery Gap • Gap 4－ Service Delivery-External Communications Gap • Gap 5－ Expected Service-Perceived Service Gap

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SERVQUAL Model Word-of-mouth communications

Past experience

Personal needs

Expected service

Perceived service

Service delivery

Translation of perceptions into service

quality specifications

Management perception of consumer expectations

External communication to consumers

Consumer

Service provider

Gap 1

Gap 5

Gap 3

Gap 2

Gap 4

(Parasuraman, Zeithaml, & Berry, 1985)

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Literature Review

Empathy

Responsiveness

DimensionsModified

22 items

Reliability

Tangibles

Assurance

Security

Credibility

Responsiveness

Communication

Accessibility

Knowing the customer

Tangibles

Courtesy

Competency

Reliability

(Parasuraman, A., Zeithaml, V., & Berry, L., 1988)

Literature Review

Definition of Customer Satisfaction The first scholar, Cardozo (1965), claimed that

when customer feels satisfied with a product, they would have a behavior to purchase.

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Literature Review

Definition of Customer Satisfaction Satisfaction is a person’s feelings of pleasure or

disappointment stemming from comparing a product’s perceived performance in relation to their expectations.

(Kotler, 2000)

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Literature Review

Importance-Performance Analysis (IPA) This tool was founded by Martilla and James (1977).

IPA is used for developing companies’ management and strategies.

IPA combines two attributes, importance and performance, into a two dimensions grid.

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Literature Review

Importance-Performance Analysis (IPA)

Importance

Performance

Low High

High

Low

I. Concentrate Here II. Keep up the Good Work

III. Low Priority IV. Possible Overkill

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Literature Review

Importance-Performance Analysis (IPA) I. Concentrate here - high importance, low performance

Product and service

need to be improved

with top priory because

customers take notice

of the attributes here

Importance

Performance

Low High

High

Low

I. Concentrate Here

II. Keep up the Good Work

III. Low Priority IV. Possible Overkill

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Literature Review

Importance-Performance Analysis (IPA) II. Keep up the good work - high importance, high performance

Retailers have to

consider how to

maintain product

and service even

enhancing its value.

Importance

Performance

Low High

High

Low

I. Concentrate Here

II. Keep up the Good Work

III. Low Priority IV. Possible Overkill

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Literature Review

Importance-Performance Analysis (IPA) III. Low priority - low importance, low performance

Company needs not

focus on the attributes

here, or it costs extra

price and resources.

Importance

Performance

Low High

High

Low

I. Concentrate Here

II. Keep up the Good Work

III. Low Priority IV. Possible Overkill

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Literature Review

Importance-Performance Analysis (IPA) IV. Possible overkill - low importance, high performance

Attributes here are

over-emphasized

by retailers, but

customers do not take

notice of.

Importance

Performance

Low High

High

Low

I. Concentrate Here

II. Keep up the Good Work

III. Low Priority IV. Possible Overkill

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IPA

Many fields applied for decades due to its:

1. Appropriateness 2. Effectiveness

• Aiding retail industry helpful and implemental marketing strategies

Importance

Performance

Literature Review

Importance-Performance Analysis (IPA)

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Contents

Introduction1

Literature Review2

Methodology3

Impacts of Service Quality on Customer Satisfaction A Case of Corporation X

Data Analysis

Procedures

Instrument

Research Framework

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Methodology Research Framework

Based on Service Quality Model (PZB Model)

Explore and Evaluate Principle of Service Quality in Food Retail Chains

Compare the Diversity of the Importance and Satisfaction of Service Quality

Examine the Performance of Service Quality in Food Retail Chain

The Results for Retailers: • Enhance Customer Satisfaction and Service Performance • Provide Effective Mechanisms and Management Strategies

Descriptive Statistics Factor Analysis Reliability Analysis Validity Analysis Paired T-test One-Way ANOVA Importance-

Performance Analysis ( IPA )

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Methodology

Instrument

SERVQUAL scale with 22 items by Parasuraman et al. (1985)

RSQS scale with 12 itemsby Dabholkar et al. (1996)

RSQS scales with 32 itemsby Stanworth (2009)

Thirty-six items

• 6-point Likert-type scale from “strongly agree” to “strongly disagree”

• Content validity

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Methodology

Instrument

我重視的服務   我實際感受到的服務

非常重視

重視有點重視

有點不重視

不重視

非常不重視

問 題

非常滿意

滿意有點滿意

有點不滿意

不滿意

非常不滿意

1.店家的外觀具有吸引力

1.The appearance of the store is attractive.

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Methodology

Procedures

Step 1 Step 2 Step 3 Step 4

• Approximately 400 customers

• Retail Chains in midst of Taiwan

• Lingering around the stores

Experience • Observing • Asking

• Explaining questionnaire’s content

• Section 1 -36 questions• Section 2 -Personal data

• Filling out without handicaps

• Participants can provide fully correct information for a short while

Methodology

Data Analysis

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Descriptive StatisticsImportance – Performance Analysis

Factor Analysis

Reliability & Validity Analysis

One-Way ANOVA

Paired T-test

SPSS

• Background information • Demographic distribution

• The correlation among items and groups

• The internal consistency and correctness for the questionnaire

• The diversity of the importance and satisfaction

• The differences among demographic variables and expectation

• To analyze the performance of importance and satisfaction