Customer service and service quality

Customer service is an important issue for all types of organizations. For business organizations in a competitive environment, it is obviously necessary to pay attention to the level of service provided. Customers are free to choose alternatives, and so if they perceive that they will get better service at a competitor, they will switch over to competitor. We see that government more willing to deregulate markets, and so allow privately owned companies to compete against companies. Service levels become vital to the former monopoly to retain its customers. Many research studies have been conducted to identify supposedly generic aspects or components of service quality (e.g. Parasuraman, Zeithaml, & Berry, 1988; 1985) and the links between service quality, satisfaction, and customer buying behavior or its proxies (for a recent review see Zeithaml, 2000). Much effort has been expended to develop questionnaire instruments in order to measure service quality levels as perceived by customers.

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Service quality involves a comparison of expectations with performance: it is a measure of how well the service level delivered matches customer expectations on a consistent basis. Service quality has been conceptualized as a function of consumer expectations towards the service situation and process, and of the output quality they perceived themselves to have received. The ultimate goal of service quality measurement is to assist managers in ensuring service quality and customer satisfaction . Measurement is a necessary step towards devising any action plan. Parasuraman et al. (1988) developed a 22-item measurement instrument called SERVQUAL for assessing customers’ perceptions of service quality in service and retailing organizations. Respondents are first asked to provide the level of service expected from a service firm on the 22-item expectations scale. Perceived service quality is obtained by subtracting the expectation rating from the perception rating for each of the items. The perceived quality is assessed based on service quality dimensions that correspond to the criteria used by consumers when assessing service quality. Using these 5 dimensions as the evaluation criteria the specification of service quality becomes the gap between customers’ expectations and their perceptions (Parasuraman et al). The five key gaps or discrepancies on the service provider’s side that are likely to affect consumers’ perceptions of service quality are:-

Gap 1: Consumer expectation-management perception gap, which is the gap between consumer expectations of service quality and management perceptions of these expectations

Gap 2: Management perception-service quality perception gap, that is, the gap between management perceptions of consumer expectations and the firm’s service quality specifications

Gap 3: Service quality specifications-service delivery gap, the gap between service quality

specifications and actual service quality.

Gap 4: Service delivery-external communications gap, or the gap between actual service delivery and external communications about the service

Gap 5: Expected service-perceived service gap, which is the gap between expected service and perceived service.

REVIEW OF LITERATURE

Chingang Nde et al.,(2010) state that service quality and customer satisfaction are very important concepts that companies must understand in order to remain competitive in business and hence grow. It is very important for companies to know how to measure services from the consumers in order to better understand their needs and hence satisfy them. Service quality is considered very important because it leads to higher customer satisfaction, profitability, reduced cost, customer loyalty and retention. It was found out that, the SERVQUAL model was not a good instrument to measure service quality because some of the items under the dimensions overlapped and regrouped under different dimensions from the factor analysis carried out. It also showed some items associated to more than one component. Also, it was found that the overall service quality perceived by consumers was not satisfactory meaning expectations exceeded perceptions and all the dimensions showed higher expectations than perceptions of services.

Jaswal and Sahu.,(2010) state that identification of consumer preference is very important. In this study finding indicates that customer prefer these restaurants which provide maximum satisfaction. There are various factor affecting the choice of consumer regarding restaurants.

Rajagopal.,(2008) has analyzed the impact of market orientation strategies and performance of customer services on customer acquisition, retention and sales of automobiles for overall performance of automobile service centres in Mexico. The study comprehends understanding on customer-dealer relationship in the automobile market segment referring to key factors which establishes service quality encompassing tangibility, responsiveness, trust, accuracy and empathy. It was found that the customers perceive better quality of relationship in a given frame of functions that are performed effectively by the dealer lowering the extent of conflicts thereof. High conformance quality services of service centres and value added customer relationship to offer high customer satisfaction develop life time customer value and strengthen the customer-dealer relationship.

Iwaarden & Wiele (2008) opines that E-business plays an important role. It is growing at very rapid rate in all over the world because it requires less money as compare to shops. They explore their studies on the basis of five dimensions Tangibles , Reliability, Responsiveness, assurance and empathy . They found that these dimensions are important apart from this the visibility of the website also plays an important role in the E- Business .

Paulo A. et al.,(2006) state that SERVQUAL model is used for assessing service quality in a chain of car repair workshops. The main objective is to assess quality service dimensions that are delivered through the perspectives of managers and customers. This work was performed in a multinational company service chain including one hundred shops located throughout the country. They study about the company manufactures brake system, steering wheel system, suspension and seat belts. The service chain involves automotive services concerning suspension, brake systems, clutch and tires, among others. Responsiveness and assurance were found the most relevant to shop managers and customers. Quality improvement initiatives were proposed to enhance the service rendered by the car repair shops.

Kaul (2005) opines that Indian retail industry is growing in very high pace and competition is rising day by day in the retail industry very few research is conducted in retail to measure service . Indian retailers have not appropriate tools to measure the service quality. He said that service gives the competitive edge to compete with others . He found that over all service quality measurement scale is reliable to measure the service quality in Indian retail sector.

Jain &Gupta (2004) opines that service plays an important role in today’s era. It is one of the responsible factor which help to boost up sale of a company or responsible to fall in sale of the company. They suggested two models to measure the service gap, one is SERVQUAL and SERVPERF . They want to measure which scale is reliable out of two and they found that SERVPERF is more reliable than the SERVQUAL model to measure the service gap and customer satisfaction.

Jacobo Neuman Praes (2005) opinions that it is mandatory to evaluate the present Quality Service level offered by the automobile industry and its distribution chain to consumers of autos, spare parts and maintenance services in Mexico, since it is one of the most important sectors for the national economy. This particular sector requires implementing a continuous improvement process with the use of state of the art Quality Productivity of Service, to better compete. To evaluate the current level of Quality Service Index (QSI) offered to clients, a series of visits to different service centreships, using the “Mystery Shopper Technique”, were carried out to determine how customers are being taken care of in the three basic areas of operation performed in such type of organizations

Lowndes(2001) explains that there are limitations of the customer perception. If a company gives same level of services to two different customers one is satisfied another may not satisfied with the services of the company because it depend upon individual . To overcome this limitation he suggest “Mystery Shoppers” It is helpful to know which level of services competitors are providing to customers and which level of services we are providing to our customers. The focus of research in this paper is on the monitoring of the organization’s own service quality. He found that there are two tangibles factors – one to do mainly with the physical facilities, equipment and layout, and one pertaining to appearance – cleanliness and smartness of the outlet and its staff.

Andaleeb and Basu (1998) state that relationship between customers’ overall evaluation of service quality and five factors perceived fairness, empathy, responsiveness, reliability, and convenience was examined in the automobile repair and service industry. Specifically, the study explored whether a warranty influenced the evaluation of service quality. A survey was conducted. The findings indicate that the empathy demonstrated by the service provider was important only when the service was not under warranty. Fairness and reliability were found to be important when there was no warranty and their effects were heightened by the presence of warranty. The influence of responsiveness and convenience were significant and remained the same with or without warranty.

Leen et. al (1997)state that there are number of retail store increasing day by day in Malaysia .In this competitive environment it is not possible to sustain without providing appropriate services to the customers. They study the gernalizibilty and applicability of service quality scale and they found that five factors physical aspects, reliability, personal interaction, problem-solving and policy most suitable to measuring quality of service in retail.

According to Brown et. al (1993) SERVQUAL is the most popular measure of service quality, which involves the calculation of the difference between expectations and perceptions on a number of specified determinants. After an evaluation of four alternative service quality models Brady and Cronin (2001) state that the SERVQUAL instrument appears to be distinct from the others as it uses one or more determinants to measure the service quality.

Parasuraman (1988) further explain that services are experiences and therefore intangible. The personal qualities of service providers often lead to variable levels of services and therefore heterogeneity. Quality in services mostly occurs during the service delivery and therefore services are inseparable from production and consumption.

OBJECTIVE

To study the gap between the expected service quality and the quality perceived by. Customers in the two wheeler segment in Nangal Dam using the SERVQUAL Model.

NEED

There are five major players of two wheelers and because of that there is cut throat competition in the market and all the players are dealing into the same product and there is a minute difference in the price of these products. So there is only one way to differentiate among others i.e. through providing services to the customer. It is very difficult to know whether the services provided by the players are satisfying the customers or not. As each customer’s perception and expectation of service varies from each others. So we can find it with the help of SERVQUAL model that whether the customers are satisfied or not and it will help service centres to fill the gap of service where they are lacking.

SCOPE :

The study will evaluate the service gap. It will help to service centres to identify gap and fill that gap. This will give better opportunity to two wheelers from other service centres to acquire the customer because every customer has different perception and expectation from other customer. It can find out by SERVQUAL model. New players can enter who can try to fill a gap, if any: opportunity for new players.

RESEARCH METHODOLOGY

Primary research will be used with the help of Questionnaires.

DATA COLLECTION

The questionnaires will directly be given to the respondents. The instructions will clearly given on the questionnaire to facilitate easy and accurate responses but in order to avoid biasness in the responses; the purpose of the study will not be disclosed. The respondents will be assured that the record would be kept confidential. Whenever they faced any difficulty in understanding any item the meaning will readily explained without biasing their responses. It will make sure, in this study, the data collected through questionnaires will complete in all respects.

SAMPLE DESIGN

Simple random sampling technique will be used.

SAMPLE SIZE

The sample must be the representative of the whole population. It is, for the purpose of this study, decided to select a sample of 200 respondents from 5 service centre at Nangal Dam .

1. M.H Honda – 50

2. Bhakra Service Station – 50

3. Reliable Motors -50

4. Mahal TVS – 50

SOURCES OF DATA

Present study is mainly based on the primary data. Primary data will collect with the help of a survey (questionnaire) of 200 respondents, in Nangal Dam.

QUESTIONNAIRE DESIGN

When designing the questionnaire, the 22 items in the SERVQUAL questionnaire developed by Parasuraman et al. (1985) were referred to. Some modifications and adaptations were made to selected questions to make them more relevant to the two wheelers service centers services at Nangal Dam. The questionnaires which consisted of 22 questions in five dimensions: tangibility, reliability, responsiveness, assurance and empathy, were given to 200 customers, for their invaluable feedback. The questionnaire contained an “expectations” section with 22 statements and a “perceptions” section consisting of a set of matching statements. The statements in both the expectations and perceptions sections were grouped into the following five dimensions, each with a range of applicable statements: A 5 point Likert scale was used for the scoring system with 1 representing Strongly Disagree and 5 representing Strongly Agree. Dimensions used for this study is shown below.

Statements 1-4 Tangibles

Statements 5-9 Reliability

Statements 10-13 Responsiveness

Statements 14-17 Assurance

Statements 18-22 Empathy

Table 2: Shows the Highest Expectation Statements

Highest Expectation Statements

Statement

Number

Mean

Score

Table 3 : Shows the lowest Expectation Statements

Lowest Expectation Statements

Statement

Number

Mean

Score

Table 4: Shows the highest perception statements

Highest Perception Statements

Statement

Number

Mean

Score

Table 5: Shows the lowest perception statements

Lowest perception statement

Statement

Number

Mean

Score

Table 6 : Shows the highest service gap statement

Highest service Gap

Statement

Number

Mean

Score

Table 7: Shows the lowest service Gaps Statement

Lowest Service Gap

Statement

Number

Mean

Score

Table 8: Shows the relative importance of Service Quality Dimensions

S. no

STATEMENTS

DIMENTIONS

PERCENTAGE

Table 9: Opinion about overall Service Quality

S.no

Statements

Excellent

Good

Neutral

Poor

Very Poor

Table 10: Priority for each service Dimension

SERVQUAL Dimensions

Average Mean For Dimensions

Gap Scores

Exp. Score

Per. Score

Tangibility

Reliability

Responsiveness

Assurance

Empathy

Findings:

REFRENCES :

Brysland, A. and Curry, A. (2001), “Service improvements in public services using SERVQUAL”,Managing Service Quality, Vol.11, No.6, pp. 389-401.

Delgado Jorge Bolaños,(1991)” An examination of Mexican automotive market and service quality in automobile service centreships in Mexico” Calle del Puente No. 222 Esq.Periférico SurCol. Ejidos de Huipulco, Tlalpan 14380, México D. F.

Dieke, Ranjbarian (2008). “Customer Satisfaction Four Star Ishfan Hotel: An application of SERVQUAL Model” 2008:059 – ISSN : 1653-0187 – ISRN: LTU -PB-EX-08/59–SE.

Hong Qin, University of North Texas, (2007). “Service Quality Perceptions In Fast-Food Restaurants In China” available at http://www.marketresearch.com/map/prod/1545057.html, retrieved on 08/22/08.

Iwaarden, Wie, (2002). “A study on the applicability of SERVQUAL dimensions for Web sites” Master Thesis.

Jain, Gupta, (2004). “Measuring Service Quality: Servqual Vs. Servperf Scales” Vikalpa • Volume 29 • No 2 • April – June 2004

Khan, Mahapatra, (2009) “Service quality evaluation in internet banking:an empirical study in India” Int. J. Indian Culture and Business Management, Vol. 2, No. 1, 2009.

Lowndes, (2001) “Do Distinct Servqual Dimensions Emerge From Mysteryshopping Data – A Test Of Convergent Validity” Canadian Journal Of Program Evaluation Vol 16, 2, 2001 Pp. 41-53.

Nde, Chingang, (2010). “Using the SERVQUAL model to assess service quality and customer Satisfaction” Master Thesis.

Suksom, Lumyong, (2009). “Service Quality of Thai Travel Agency, Thailand Resor AB, in Sweden” EFO705 Master Thesis (Gr. 2279)

Shahin, (2006) “SERVQUAL and Model of Service Quality Gaps:A Framework for Determining and Prioritizing Critical Factors in Delivering Quality Services”Journal of Service Industry Management , Vol. 6, No. 3, pp. 64-83.

Zeinthaml V.A.,Parasuraman A. and Berry, L. L.,(1990). Delivering Quality Service; Balancing Customer Perception and Expectation, The Free Press, New York, NY.

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