Relationship between service quality and customer satisfaction in the familiar retail outlets of Chennai

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This study examines the relationship between service quality and customer satisfaction in the retail sector with a focus on Chennai. A total of 60 respondents participated in the study.

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Nội dung Text: Relationship between service quality and customer satisfaction in the familiar retail outlets of Chennai

International Journal of Management (IJM) Volume 9, Issue 5, Sep–Oct 2018, pp. 10–15, Article ID: IJM_09_05_002 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=9&IType=5 Journal Impact Factor (2016): 8.1920 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 © IAEME Publication RELATIONSHIP BETWEEN SERVICE QUALITY AND CUSTOMER SATISFACTION IN THE FAMILIAR RETAIL OUTLETS OF CHENNAI Dr. P.Jayendira Sankar Assistant Professor, College of Administrative and Financial Sciences AMA International University, Bldg 829, Road 1213, Blk 712, Salmabad, P.O.Box 18041, Kingdom of Bahrain ABSTRACT This study examines the relationship between service quality and customer satisfaction in the retail sector with a focus on Chennai. A total of 60 respondents participated in the study. “Research questions and objectives were set, alongside the hypotheses that were formulated and tested. Descriptive statistics comprising the simple percentage and tables were used for data presentation and analysis” [1]. In identifying the service quality, the relationship between service quality and customer satisfaction and also to compare the customer’s importance on every service quality based on different familiar retail outlets in Chennai of the familiar retail outlets in Chennai. “It is recommended that organizations should welcome suggestions from customers and more programmes should be designed to measure service quality and customer satisfaction” [1]. Keywords: Customer, Service, Customer Satisfaction, Service Quality, Retail Outlets. Cite this Article: Dr. P.Jayendira Sankar, Relationship between Service Quality and Customer Satisfaction in the Familiar Retail Outlets of Chennai, International Journal of Management, 9 (5), 2018, pp. 10–15. http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=9&IType=5 1. INTRODUCTION Service quality today “has become not only the rhetoric of every business enterprise, but also occupies eminent position in every discourse. No business organization can survive without building its customer satisfaction and brand loyalty; likewise no organization can make a healthy living without meeting the needs of its customers. That is what organizations do: they serve people’s needs. Service quality helps in cementing the relationship between customers and the organization and it is a two-way flow of value. This means that customer derives real value from the relationship which translates into value for the organization in the form of enhanced profitability and sustainability over a long period of time.” The level of persons felt state resulting from comparing “a product’s perceived performance or outcome in violation to his/her own expectation. So customer satisfaction could be considered a comparative behavior between inputs beforehand and post obtainments. As the http://www.iaeme.com/IJM/index.asp 10 editor@iaeme.com
Dr. P.Jayendira Sankar study focused on investigating customer satisfaction of the familiar retail outlets, customer satisfaction is defined as the level of service quality performance that meets customer’s expectations”. Chennai's acted as an incubator for the Indian retail industry, with the city witnessing pioneering initiatives in the retail industry, be it consumer durables, general provisions or books. The mindset of the retailers especially those involved in organizing retail marketing needs to understand the role of customers, which will be helpful in the development of the business. The study focuses on relationship between service quality and customer satisfaction in the familiar retail outlets of Chennai. 2. REVIEW OF LITERATURE Zyad, Ali, Bang, & Chanaka, (2018) shows that “service delivery is both complex and challenging, particularly when considering the unique characteristics of services and the high level of customer involvement in their creation. The facilitation, transformation and usage framework identifies how failures can occur at each stage of service delivery, beginning with the characteristics of the service environment, while control theory offers insights into the formal and informal controls that may be applied in the facilitation and transformation stages, which may reduce the likelihood or extent of such failures” [2]. Haemoon, Kawon, (2017) conclude that “the research on these topics has grown constantly during the period in the hospitality and tourism field, it has declined in the general business discipline over the same period. Hospitality and tourism research relied heavily on cross- sectional data through a survey approach, whereas business studies used experimental designs more frequently. Research on Customer Satisfaction has sustained both interest and productivity, but research on Service Quality and Customer Value has dwindled over time. Another notable finding is that most studies are not grounded in strong theories, although Customer Satisfaction studies tended to be more theory-embedded” [3]. Spacey (2016) discussed that “the different dimensions of service quality include for example reliability – delivered service is on time and it is what is promised and consistency meaning that provided service remains rather same each time” [4]. Hamari (2015) given that “the sales of premium products and services on top of the core freemium service pose many dilemmas, without a valuable and high quality core service users are less likely to be retained, which further reduces the likelihood of a customer being subjected to upselling” [5]. Liu, Au, & Choi, (2014) expressed that “the freemiumis considered as a relatively novel business model for services, similar overlapping developments have existed previously. For example, providing free samples of a product has generally been considered to affect sales in one of three ways: accelerating sales, as customers buy the product earlier than they would have without the free sample; cannibalizing sales, if the free sample reduces purchases; or expanding sales, when customers buy the product they would not have bought without the free sample” [6]. 3. OBJECTIVES OF THE STUDY The primary objective of the study is to find out the relationship between service quality and customer satisfaction in the familiar retail outlets of Chennai. • To identify the service quality (Tangibles, Responsiveness, Reliability, Assurance and Empathy) of the familiar retail outlets in Chennai. • To discuss the relationship between service quality and customer satisfaction of familiar retail outlets in Chennai. • To compare the customer’s importance on every service quality based on different familiar retail outlets in Chennai. http://www.iaeme.com/IJM/index.asp 11 editor@iaeme.com
Relationship Between Service Quality and Customer Satisfaction In The Familiar Retail Outlets of Chennai 4. RESEARCH METHODOLOGY The respondents of the study are the consumers of retail outlets in Chennai area. A total of 60 consumers has been divided into 3 different retail outlets in Chennai region, 20 consumer respondents from Reliance, 20 consumer respondents from More, 20 consumer respondents from Nilgiri’s to identify the service quality (Tangibles: physical facilities, equipments provided by the retail outlets, Responsiveness: staff’s willingness to help users or provide prompt service, Reliability: to provide reliable and accurate service, Assurance: staff knowledge and courtesy that make users assured and confident, and Empathy: staff’s empathy to provide concerns or individual attentions), to discuss the relationship between service quality and customer satisfaction. The Researcher has used Radom sampling as the number of respondents is very high. Corresponding to each question is five Likert numeric scales of the following qualitative equivalents as part of the survey questionnaires. 5. DATA ANALYSIS AND DISCUSSION This chapter represents the analysis and interpretation of result related to the relationship between service quality and customer satisfaction of familiar retail outlets in Chennai. Respondents corresponding to each question using the five numeric scales of the following qualitative equivalents as part of the survey questionnaires: the service quality using tangibles (TAN 1, TAN 2, TAN 3, and TAN 4), responsiveness (RES 1, RES 2, RES 3 and RES 4), reliability (REL 1, REL 2, REL 3, and REL 4), assurance (ASU 1, ASU 2, ASU 3, and ASU 4), and empathy (EMP 1, EMP 2, EMP 3, and EMP 4) in order to find the customer satisfaction of familiar retail outlets in Chennai. SCALE RANGE DESCRIPTION 5 4.20-5.00 Strongly Agree 4 3.40-4.19 Agree 3 2.60-3.39 Moderately Agree 2 1.80-2.59 Disagree 1 1.00-1.79 Strongly disagree Table 1 Service Quality of The Familiar Retail Outlets In Chennai Retail Respondents Mean A Service Quality Interpretation Outlets Individual Total Individual Total Reliance 20 4.10 Tangibles 1 More 20 60 4.30 4.17 Agree Tan1, Tan2, Tan3 and Tan4 Nilgiri’s 20 4.10 Reliance 20 4.15 Responsiveness 2 More 20 60 4.20 4.23 Strongly Agree Res1, Res2, Res3 and Res4 Nilgiri’s 20 4.35 Reliance 20 4.25 Reliability 3 More 20 60 4.05 4.25 Strongly Agree Rel1, Rel2, Rel3 and Rel4 Nilgiri’s 20 4.25 Reliance 20 4.35 Assurance 4 More 20 60 4.20 4.32 Strongly Agree Asu1, Asu2, Asu3 and Asu4 Nilgiri’s 20 4.40 Reliance 20 4.30 Empathy 5 More 20 60 4.30 4.32 Strongly Agree Emp1, Emp2, Emp3 and Emp4 Nilgiri’s 20 4.35 Aggregate Mean Score 60 4.26 Strongly Agree Source: Primary Data http://www.iaeme.com/IJM/index.asp 12 editor@iaeme.com
Dr. P.Jayendira Sankar Table-1 bring out that, the service quality of the familiar retail outlets in Chennai are strongly agreed by the customer respondents of Reliance store, More store and Nilgiri’s store with the aggregate mean score of 4.26. Specifically, the customers respondents are agreed with the tangibility of the familiar retail outlets with the mean score of 4.17 includes TAN 1: Customer service centers have up-to-date equipments, TAN 2: Physical facilities (like, shelves, customer service counters, lights) are visually appealing, TAN 3: Employees are well dressed and appear neat, and Tan 4: When they promise to do something by a certain time, they do. The customers respondents are strongly agreed with the responsiveness of the familiar retail outlets with the mean score of 4.23 includes RES 1: When a customer has a problem, they show a sincere interest in solving it, RES 2: Provider performs the service right the first time, RES 3: Provides the service at the time they promised to do so, and RES 4: Employees keep their records accurately. The customers respondents are strongly agreed with the reliability of the familiar retail outlets with the mean score of 4.25 includes REL 1: Employees make information easily obtainable by customers, REL 2: Employees give prompt service to customers, REL 3: Employees are always willing to help customers, and REL 4: Employees are never too busy to respond to customers requests. The customers respondents are strongly agreed with the assurance of the familiar retail outlets with the mean score of 4.32 includes ASU 1: The behavior of employees instill confidence in customers, ASU 2: Customers feel safe in their transactions with employees in the Customer service counters, ASU 3: Employees are polite with customers, and ASU 4: Employees have the knowledge to answer customers’ questions. The customers respondents are strongly agreed with the empathy of the familiar retail outlets with the mean score of 4.32 includes EMP 1: Employees give customers individual attention, EMP 2: Their operating hours are convenient to all their customers, EMP 3: Employees give customers personal service, and EMP 4: The employees understand the specific need of their customer. Table 2 Relationship between Service Quality and Customer Satisfaction of The Familiar Retail Outlets In Chennai B Customer Satisfaction Mean Interpretation 1 Tangibles 4.15 Satisfied 2 Responsiveness 4.28 Highly Satisfied 3 Reliability 4.25 Highly Satisfied 4 Assurance 4.32 Highly Satisfied 5 Empathy 4.30 Highly Satisfied Aggregate Mean Scores 4.26 Highly Satisfied Source: Primary Data Table-2 infers that, the customer respondents are highly satisfied with the service quality of the familiar retail outlets of Chennai with the aggregate mean score of 4.26. Specifically, the customer respondents are satisfied with the tangible service quality of the familiar retail outlets of Chennai with the mean score of 4.15 (customer service centers have up-to-date equipments, physical facilities (like, shelves, customer service counters, lights) are visually appealing, employees are well dressed and appear neat, and when they promise to do something by a certain time, they do). The customer respondents are satisfied with the responsiveness service quality of the familiar retail outlets of Chennai with the mean score of 4.28 (when a customer has a problem, they show a sincere interest in solving it, provider performs the service right the http://www.iaeme.com/IJM/index.asp 13 editor@iaeme.com
Relationship Between Service Quality and Customer Satisfaction In The Familiar Retail Outlets of Chennai first time, provides the service at the time they promised to do so, and employees keep their records accurately). The customer respondents are satisfied with the reliability service quality of the familiar retail outlets of Chennai with the mean score of 4.25 (employees make information easily obtainable by customers, employees give prompt service to customers, employees are always willing to help customers, and employees are never too busy to respond to customers requests). The customer respondents are satisfied with the assurance service quality of the familiar retail outlets of Chennai with the mean score of 4.32 (the behavior of employees instill confidence in customers, customers feel safe in their transactions with employees in the customer service counters, employees are polite with customers, and employees have the knowledge to answer customers’ questions). The customer respondents are satisfied with the empathy service quality of the familiar retail outlets of Chennai with the mean score of 4.30 (employees give customers individual attention, their operating hours are convenient to all their customers, employees give customers personal service, and the employees understand the specific need of their customer) Figure 1 Comparing The Customer’s Importance On Every Service Quality Based On Different Familiar Retail Outlets In Chennai Source: Primary Data (Smart PLS 3) Figure-1 represents that, the perception of the service quality is decided based on the individual variables like tangibles (TAN 1, TAN 2, TAN 3, and TAN 4), responsiveness (RES 1, RES 2, RES 3 and RES 4), reliability (REL 1, REL 2, REL 3, and REL 4), assurance (ASU 1, ASU 2, ASU 3, and ASU 4), and empathy (EMP 1, EMP 2, EMP 3, and EMP 4) in relationship between the dependent variable of customer satisfaction. 5. CONCLUSION The main purpose of this study was to assess the relationship between service quality and customer satisfaction in the familiar retail outlets of Chennai. The general objective of this study is to determine the relationship between service quality and customer satisfaction, and also http://www.iaeme.com/IJM/index.asp 14 editor@iaeme.com
Dr. P.Jayendira Sankar investigate the strategies utilized by an organization to deliver exceptional service quality and customer satisfaction through customer service. These objectives were tested by three hypotheses. It is also clear from this research that customer service has impact on service quality perception and customer satisfaction. REFERENCES 1. Olu Ojo (2010), “The Relationship between Service Quality and Customer Satisfaction in the Telecommunication Industry: Evidence from Nigeria”, BRAND. Broad Research in Accounting, Negotiation and Distribution, Volume 1, Issue 1, pp. 1-3, https://www.researchgate.net/publication/49595483 2. Zyad M. Alzaydi, Ali Al-Hajla, Bang Nguyen, Chanaka Jayawardhena, (2018) "A review of service quality and service delivery: Towards a customer co-production and customer-integration approach", Business Process Management Journal, Vol. 24 Issue: 1, pp.295-328, https://doi.org/10.1108/BPMJ-09-2016-0185 3. Haemoon Oh, Kawon Kim, (2017) "Customer satisfaction, service quality, and customer value: years 2000-2015", International Journal of Contemporary Hospitality Management, Vol. 29 Issue: 1, pp.2-29, https://doi.org/10.1108/IJCHM-10-2015-0594 4. Spacey, J. (2016) “10 Types of Service Quality”. Simplicable Business Guide [accessed 25 August 2017]. Available at: http://simplicable.com/new/service-quality 5. Hamari, J. (2015). Why do people buy virtual goods? Attitude toward virtual good purchases versus game enjoyment. International Journal of Information Management, 35(3), 299–308. 6. Bedman Narteh, (2018) "Service quality and customer satisfaction in Ghanaian retail banks: the moderating role of price", International Journal of Bank Marketing, Vol. 36 Issue: 1, pp.68-88, https://doi.org/10.1108/IJBM-08-2016-0118 7. Liu, C. Z., Au, Y. A., & Choi, H. S. (2014). Effects of freemium strategy in the mobileapp market: An empirical study of Google play. Journal of Management Information Systems, 31(3), 326–354. http://www.iaeme.com/IJM/index.asp 15 editor@iaeme.com