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- 1. Impacts of Service Quality on Customer Satisfaction: A Case of Corporation X Advisors ：Professor Hao-Wei Yang Professor Wang-Ching Chen Presenter ：Chih-Lei Cheng Dec. 9. 2013
- 2. Contents 1 Impacts of Service Quality on Customer Satisfaction A Case of Corporation X Introduction The Background and Motivation The Statement of the Problem The Purposes of the Study Research Procedures 2 Literature Review 3 Methodology 2
- 3. 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. 3
- 4. Introduction Background and motivation The importance of quality to a corporation’s long term success is well acknowledged (Deming, 1993; Feigerbourm, 1991, & Juran, 1995). 4
- 5. 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. 5
- 6. Introduction The Purpose of the Study 1 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 3 To provide a new approach to assist retailers in better management strategies 6
- 7. Introduction The Importance of this study This study integrating with different measurements will enable managers to look into some hidden. 7
- 8. Introduction Research Procedures Background & Motivation Purpose of this Study Research Framework Literature Review Conclusion& Suggestions Questionnaire Design Research Procedures Questionnaire Data Analysis 8
- 9. Contents 1 2 Impacts of Service Quality on Customer Satisfaction A Case of Corporation X Introduction Literature Review The Revolution of Retail Industry The Retail Industry of Taiwan A Case of the Study Service Quality SERVQUAL Model Customer Satisfaction Importance-Performance Analysis 3 Methodology 9
- 10. Literature Review The Revolution of Retail Industry From 1900s, • Local corner stores • Choice was limited 1900 1940 • Automobile • Fridge • Merchants & Department stores 1950s 1970s • Wartime baby boomers' population • The explosion of suburbs • Malls & Mass retailers 1970 1990 • The big box stores • Small merchants out of business 1990 Nowadays, • E-commerce's • Eastman Kodak 10
- 11. Literature Review The Retail Industry of Taiwan Retail can be classified by marketing strategy： 1. 2. 3. 4. Department Store Supermarket Convenience Store Mass Merchant 11
- 12. 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. 12
- 13. 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) 13
- 14. 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) 14
- 15. 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 15
- 16. SERVQUAL Model Personal needs Word-of-mouth communications Past experience Expected service Gap 5 Perceived service Consumer Service provider External communication to consumers Service delivery Gap 3 Gap 1 Gap 4 Translation of perceptions into service quality specifications Gap 2 (Parasuraman, Zeithaml, & Berry, 1985) Management perception of consumer expectations 16
- 17. Literature Review Reliability Tangibles Reliability Courtesy Tangibles Competency Credibility Dimensions Modified Assurance Responsiveness Security Empathy Responsiveness Communication 22 items Accessibility Knowing the customer (Parasuraman, A., Zeithaml, V., & Berry, L., 1988) 17
- 18. 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. 18
- 19. 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) 19
- 20. 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. 20
- 21. Literature Review Importance-Performance Analysis (IPA) High I. Concentrate Here Importance II. Keep up the Good Work Low High III. Low Priority Performance IV. Possible Overkill Low 21
- 22. Literature Review Importance-Performance Analysis (IPA) I. Concentrate here - high importance, low performance High II. Keep up the Good Work I. Concentrate Here Product and service need to be improved with top priory because customers take notice of the attributes here Importance Low High III. Low Priority Performance IV. Possible Overkill Low 22
- 23. Literature Review Importance-Performance Analysis (IPA) II. Keep up the good work - high importance, high performance High Retailers have to consider how to maintain product and service even enhancing its value. I. Concentrate Here II. Keep up the Good Work Importance Low High III. Low Priority Performance IV. Possible Overkill Low 23
- 24. Literature Review Importance-Performance Analysis (IPA) III. Low priority - low importance, low performance High Company needs not focus on the attributes here, or it costs extra price and resources. I. Concentrate Here II. Keep up the Good Work Importance Low High III. Low Priority Performance IV. Possible Overkill Low 24
- 25. Literature Review Importance-Performance Analysis (IPA) IV. Possible overkill - low importance, high performance High Attributes here are over-emphasized by retailers, but customers do not take notice of. I. Concentrate Here II. Keep up the Good Work Importance Low High III. Low Priority Performance IV. Possible Overkill Low 25
- 26. Literature Review Importance-Performance Analysis (IPA) Importance Many fields applied for decades due to its: 1. Appropriateness 2. Effectiveness IPA • Aiding retail industry helpful and implemental marketing strategies Performance 26
- 27. Contents 1 Literature Review 3 A Case of Corporation X Introduction 2 Impacts of Service Quality on Customer Satisfaction Methodology Research Framework Instrument Procedures Data Analysis 27
- 28. 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 Descriptive Statistics Factor Analysis Reliability Analysis Validity Analysis Paired T-test One-Way ANOVA ImportancePerformance Analysis ( IPA ) The Results for Retailers: • Enhance Customer Satisfaction and Service Performance • Provide Effective Mechanisms and Management Strategies 28
- 29. Methodology Instrument SERVQUAL scale with 22 items by Parasuraman et al. (1985) Thirty-six items RSQS scale with 12 items by Dabholkar et al. (1996) • 6-point Likert-type scale from “strongly agree” to “strongly disagree” RSQS scales with 32 items by Stanworth (2009) • Content validity 29
- 30. Methodology Instrument 我重視的服務 我實際感受到的服務 非 重 有 有 不 非 常 視 點 點 重 常 重 重 不 視 不 視 視 重 重 視 視 非 滿 有 有 不 非 常 意 點 點 滿 常 滿 滿 不 意 不 意 意 滿 滿 意 意 問 題 1.店家的外觀具有吸引力 1.The appearance of the store is attractive. 30
- 31. Methodology Procedures Step 1 • Approximately 400 customers • Retail Chains in midst of Taiwan Step 2 Step 3 Step 4 • Lingering around the stores • Explaining questionnaire’s content • Filling out without handicaps Experience • Observing • Asking • Section 1 -36 questions • Section 2 -Personal data • Participants can provide fully correct information for a short while 31
- 32. Methodology Data Analysis Importance – Performance Analysis Descriptive Statistics • Background information • Demographic distribution • To analyze the performance of importance and satisfaction One-Way ANOVA • The differences among demographic variables and expectation Paired T-test • The diversity of the importance and satisfaction SPSS Factor Analysis • The correlation among items and groups Reliability & Validity Analysis • The internal consistency and correctness for the questionnaire 32