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

  1. 1. Relationships& Impacts ofService quality,perceived value,customer satisfaction,and imageAn Empirical StudyPresenter: Sharon Chang Instructor: Dr. Pi-Ying Hsu Date: May 20, 20131
  2. 2. 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
  3. 3. IntroductionLiterature ReviewMethodologyResult & ConclusionReflection3
  4. 4. Introduction4
  5. 5. 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
  6. 6. IntroductionPurposeThis empirical study seeks to understandthe relationships that exist betweenservice quality and perceived value andhow they impact customersatisfaction, corporate image, andbehavioural intentions.6
  7. 7. LiteratureReview7
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. 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
  15. 15. 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
  16. 16. 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
  17. 17. Literature ReviewZeithaml et al. (1996)H1H2H3H4H5H6H7H8 H9- Conceptual model -17
  18. 18. Methodology18
  19. 19. MethodologySampleThree categories• Namely luxury(26%)• Mid-scale(64%)• Economy hotels(10%)Location•Participants• 1500participantsBilingual country(French &English)19
  20. 20. Methodology1 2 3 4 5 6 7CompletelydisagreeDisagreeDisagreesomewhatUndecidedAgreesomewhatAgreeCompletelyagree- Instrument -Service quality –Multiple-item scale of SERVQUAL from Parasuraman et al.(1988)20
  21. 21. MethodologyPerceived value –Three items were adapted from Cronin et al. (2000)1 2 3 4 5 6 7StronglydisagreeDisagreeDisagreesomewhatUndecidedAgreesomewhatAgreeStronglyagree21
  22. 22. MethodologyCustomer satisfaction -1 2 3 4 5 6 7VerydissatisfiedDissatisfiedDissatisfiedsomewhatUndecidedSatisfiedsomewhatSatisfiedVerysatisfiedCorporate image -Two dimensions: image attributes and image holistic1 2 3 4 5 6 7StronglydisagreeDisagreeDisagreesomewhatUndecidedAgreesomewhatAgreeStronglyagree22
  23. 23. Methodology1 2 3 4 5 6 7Not alllikelyNotlikelyNot likelysomewhatUndecidedlikelysomewhatlikelyExtremelylikelyBehavioural intentions –Three categories: repurchase intentions,willingness to recommend, and price sensitivity.23
  24. 24. MethodologyPilot study-Establish contentvalidity of thequestionnaireCollect the data-During a 6-weekperiodAnalyze the data-Cronbach’s alphaLISREL 8Step2Step 1 Step 3Procedure24
  25. 25. Result &Conclusion25
  26. 26. Result26
  27. 27. Result27Descriptive statistics including mean and standarddeviation of each variable used in the proposed model.
  28. 28. 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
  29. 29. ResultStructural equation modelH1H2H3H4H5H6H7H8 H9H1: Perceived quality has positive impacts onbehavioural intentions. Not Supported29
  30. 30. 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
  31. 31. Reflection31
  32. 32. 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
  33. 33. 33