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
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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