Exploring the relationships among service quality features, perceived value and customer satisfaction

Azman Ismail,Muhammad Madi Bin Abdullah,Sebastian K Francis

doi:10.3926/jiem.2009.v2n1.p230-250

Abstract

The purpose of this paper is to explore the relationships among service quality features (responsiveness, assurance, and empathy), perceived value and customer satisfaction in the context of Malaysia. The empirical data are drawn from 102 members of an academic staff of a Malaysian public institution of higher learning using a survey questionnaire. The results indicate three important findings: firstly, the interaction between perceived value and responsiveness was not significantly correlated with customer satisfaction. Secondly, the interaction between perceived value and assurance also did not correlate significantly with customer satisfaction. Thirdly, the interaction between perceived value and empathy correlated significantly with customer satisfaction. Thus the results demonstrate that perceived value had increased the effect of empathy on customer satisfaction, but it had not increased the effect of responsiveness and assurance on customer satisfaction. In sum, this study confirms that perceived value act as a partial moderating variable in the service quality models of the organizational sample. In addition, implications and limitations of this study, as well as directions for future research are discussed.

Highlights

Service quality and customer satisfaction are inarguably the two core concepts that are at the crux of the marketing theory and practice (Spreng & Mackoy, 1996)
The finding for this research shows that perceived value does act as a partial moderating variable in the relationship between service quality features and customer satisfaction
In the context of HIGH INSTITUTION, Malaysia the service provider is given a major responsibility to plan, maintain, and monitor sophisticated teaching and learning facilities in the central teaching buildings based on the rules set up by the leadership of the university

Summary

Introduction

Service quality and customer satisfaction are inarguably the two core concepts that are at the crux of the marketing theory and practice (Spreng & Mackoy, 1996). In today’s world of intense competition, the key to sustainable competitive advantage lies in delivering high quality services that will in turn result in satisfied customers (Shemwell, Yavas, & Bilgin, 1998). In an era of intense global competition; many organizations have shifted the paradigm of service quality to customer’s perspective (Parasuraman, Zeithaml, & Berry, 1985). Based on this paradigm, a customer will judge the quality of service accorded and determine whether it met his/her expectations (Grönroos, 1984; Parasuraman et al, 1985, 1988). Many scholars think that employee satisfaction with the accompanying service features may increase retention and loyalty (Alexandris, Dimitriadis, & Makata, 2002), paving the way to increased organizational competitiveness (Shemwell et al, 1998)

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