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