Abstract

Service quality is not just quality of what is delivered (core quality). However, the quality of how the service is delivered (relational quality) can be put into service quality dimensions. Other aspect that could be considered by customer to make a decision to choose which service that they would use was perceived value. Customers always compare what they had to pay with what they received. And it could impact to behavioral intentions. This research investigated the relationship between three elements – core service quality, relational service quality and perceived value – and customer satisfaction and future intentions in service industry. Using structural equation modeling, results of this research revealed that three service elements were important drivers of customer satisfaction, further, show that perceived value was the most important driver of customer satisfaction and relational quality was more important driver of customer satisfaction than core quality. It related with a kind of the service that was used in this research, high contact service. Beside that, a direct link between customer satisfaction and future intentions was established. A major conclusion was that both perceived value and service quality dimensions should be incorporated into customer satisfaction models to provide a more complete picture of drivers of satisfaction. Keywords: Core quality, Relational quality, Value, Customer satisfaction, Switch intentions, Loyalty intentions, High contact service.

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