The relationship & impacts of service quality, perceived value, customer satisfaction, and image
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The relationship & impacts of service quality, perceived value, customer satisfaction, and image

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The relationship & impacts of service quality, perceived value, customer satisfaction, and image The relationship & impacts of service quality, perceived value, customer satisfaction, and image Presentation Transcript

  • Relationships& Impacts ofService quality,perceived value,customer satisfaction,and imageAn Empirical StudyPresenter: Sharon Chang Instructor: Dr. Pi-Ying Hsu Date: May 20, 20131
  • CitationHu, H.-H., Kandampully, J., Juwaheer, T. D. (2009).Relationships and impacts of service quality,perceived value, customer satisfaction, and image:An empirical study. The Service Industries Journal,29(2), 111-125.2
  • IntroductionLiterature ReviewMethodologyResult & ConclusionReflection3
  • Introduction4
  • IntroductionBackgroundGiven the global nature of themarket, competing firms are constantlyseeking to project their firms’ superiorquality of service, customer-perceivedvalue, and image in order to gain customerloyalty.5
  • IntroductionPurposeThis empirical study seeks to understandthe relationships that exist betweenservice quality and perceived value andhow they impact customersatisfaction, corporate image, andbehavioural intentions.6
  • LiteratureReview7
  • H1: Perceived quality has positive impacts onbehavioural intentions.Literature ReviewThe positive relationships between service quality andrepurchase intentions and willingness to recommend.(Boulding & Karla & Staelin & Zeithaml, 1993)8
  • Literature ReviewService quality is an important driver of perceivedcustomer value.(Cronin et al., 2000; Parasuraman & Grewal, 2000)H2: Service quality has positive impacts onperceived value.9
  • Literature ReviewPerceived value contributes directly to customersatisfaction which, in turn, leads to future intentions.(McDougall & Levesque, 2000)H3: Perceived value has positive impacts onbehavioural intentions.10
  • Customer satisfaction is a post-consumption experiencewhich compares perceived quality with expectedquality, whereas service quality refers to a globalevaluation of a firm’s service delivery system.(Anderson & Fornell, 1994)H4: Service quality has positive impacts oncustomer satisfaction.Literature Review11
  • Literature ReviewService quality and satisfaction are distinct constructs,and there is a causal relationship between the two,and that perceptions of service quality affect feelingsof satisfaction which, in turn, influence futurepurchase behaviour.(Hurley & Estelami, 1998)H5: Perceived value has positive impacts oncustomer satisfaction.12
  • Literature ReviewCorporate image is built mainly by technical qualitywhat the customer receives from the service experience,and functional quality: the manner in which the serviceis delivered.(CrÖnroos, 1984)H6: Service quality has positive impacts oncorporate image.13
  • Literature ReviewA company will have a strong image if customers believethat they are getting high value when they buy from it.(Barich and Lotler, 1991)H7: Perceived value has positive impacts oncorporate image.14
  • Literature ReviewH8: Customer satisfaction has positive impactson corporate image.Satisfaction levels derived from each service encounterare viewed as having an effect on image assessments.(Nguyen &LeBlanc, 1998)15
  • Literature ReviewCorporate image serves as an important factorinfluencing customer loyalty, and a favourable image caninfluence repeat patronage.(Andreassen & Lindestad, 1998; Dick & Basu, 1994)H9: Corporate image has positive impactson behavioural intentions.16
  • Literature ReviewZeithaml et al. (1996)H1H2H3H4H5H6H7H8 H9- Conceptual model -17
  • Methodology18
  • MethodologySampleThree categories• Namely luxury(26%)• Mid-scale(64%)• Economy hotels(10%)Location•Participants• 1500participantsBilingual country(French &English)19
  • Methodology1 2 3 4 5 6 7CompletelydisagreeDisagreeDisagreesomewhatUndecidedAgreesomewhatAgreeCompletelyagree- Instrument -Service quality –Multiple-item scale of SERVQUAL from Parasuraman et al.(1988)20
  • MethodologyPerceived value –Three items were adapted from Cronin et al. (2000)1 2 3 4 5 6 7StronglydisagreeDisagreeDisagreesomewhatUndecidedAgreesomewhatAgreeStronglyagree21
  • MethodologyCustomer satisfaction -1 2 3 4 5 6 7VerydissatisfiedDissatisfiedDissatisfiedsomewhatUndecidedSatisfiedsomewhatSatisfiedVerysatisfiedCorporate image -Two dimensions: image attributes and image holistic1 2 3 4 5 6 7StronglydisagreeDisagreeDisagreesomewhatUndecidedAgreesomewhatAgreeStronglyagree22
  • Methodology1 2 3 4 5 6 7Not alllikelyNotlikelyNot likelysomewhatUndecidedlikelysomewhatlikelyExtremelylikelyBehavioural intentions –Three categories: repurchase intentions,willingness to recommend, and price sensitivity.23
  • MethodologyPilot study-Establish contentvalidity of thequestionnaireCollect the data-During a 6-weekperiodAnalyze the data-Cronbach’s alphaLISREL 8Step2Step 1 Step 3Procedure24
  • Result &Conclusion25
  • Result26
  • Result27Descriptive statistics including mean and standarddeviation of each variable used in the proposed model.
  • ResultThese are all close to or even exceed the recommendedlevel of 0.9 that represents reasonable fit.( Comparative fit index )( Normed fit fit index )( Tucker-Lewis index )The RMSEA values between 0.0 and 0.05 indicate a closefit.( Root Mean Square of Approximation )Assess the “goddness of fit” of the model.28
  • ResultStructural equation modelH1H2H3H4H5H6H7H8 H9H1: Perceived quality has positive impacts onbehavioural intentions. Not Supported29
  • Conclusion High quality leads to superior perceived value,customer satisfaction, and favourable perceptionsof corporate image.Customers’ perceived value was found to affectcustomer satisfaction, the image of the hotel, andcustomers more likely to prefer the organisationand recommend it to others.30
  • Reflection31
  • ReflectionThis study My researchFocus on hotelTest the impact ofservice quality,perceived value,customer satisfaction,and image.Focus on restaurantTest the impact ofcustomer loyalty,service quality,customer satisfaction,relationship age, andimage on repurchasebehavior.32
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