Customer-perceived Service Research Articles

UST Global, India: delivering software service solutions

Subject area Marketing management – services marketing specialization. Student level/applicability MBA/PGDM senior students studying services marketing as a specialization course. Case overview US Technology Private Ltd (UST) is a major software services company in India. It was started in 1999 with a few employees at an offshore development centre in Trivandrum. Now in 2010, renamed UST Global, the company has over 7,000 employees worldwide. Phenomenal success of such a software company, in the left-oriented party dominated state of Kerala, has invited the attention of many people in the industry. The company earned valuable foreign exchange through software exports for the country and the state over the last ten years. The company has created innovative service differentiators, to impress on its clients, on the advantage of doing business with the company. The cementing customer satisfaction and derived customer delight that the company has created in their clients, has secured stable customer relationship management and customer loyalty. This reinforces the trust they have shown in the services management philosophy adopted by the company. The company's unique hybrid delivery model has worked well with its clients. Its unique selling proposition of “few clients and more focus” has resulted in delight of its customers, as they see it as a value addition for their money's worth. The leadership team attributes the success of the company to its fundamental core values and twin strategy of customer centricity and employee focus. Expected learning outcomes These are: customer perception of service; purpose of customer relationship management; service differentiators; and employees' role in delivering successful software service solutions to the customer, etc. Supplementary materials Teaching notes.

Management commitment to service quality and organizational outcomes

PurposeThis paper aims to explore the mediating role of effective employee involvement in the links between management commitment to service quality, employees' job satisfaction, and customer perceptions of service performance.Design/methodology/approachBased on a review of the literature on service management, the authors identified the role of effective employee involvement in the relationships between management commitment to service quality and employees' job satisfaction and between management commitment to service quality and customer perceptions of service performance. Using a random sampling method, the authors obtained 143 matched frontline employee‐customer dyads in the Macao Special Administrative Region of the People's Republic of China.FindingsThe results of the structural equations analysis show that effective employee involvement fully mediates the positive effects of management commitment to service quality on employees' job satisfaction and customer perceptions of service performance.Practical implicationsThis study confirms that management commitment to service quality alone does not produce positive organizational outcomes, unless linked with effective employee involvement.Originality/valueThe paper contributes to the literature on service management by identifying the mediating role of effective employee involvement in the relationships between management commitment to service quality and organizational outcomes.

Choquet integral-based hierarchical networks for evaluating customer service perceptions on fast food stores

It is known that a hierarchical decision structure consisting of multiple criteria can be modeled by a Choquet integral-based hierarchical network. With a given input–output dataset, the degree of importance of each criterion can be directly obtained from the corresponding connection weight after the network has been trained from samples. Since each output value or the synthetic evaluation of an alternative derived from uncertain assessments has its upper and lower bounds, the degree of importance of each criterion should not be unique and can be distributed in a range. In this paper, the range of the degree of importance of each criterion is obtained by three Choquet integral-based hierarchical networks with the pre-specified hierarchical structure: one is a common network constructed by merely minimizing the least squared error, and the others are employed to determine a nonlinear interval regression model. The above three networks are trained with a given input–output dataset using the proposed genetic algorithm-based learning algorithm. Empirical results of evaluating customer service perceptions on fast food stores demonstrate that the proposed method can identify key factors that have stronger effect on service quality perceptions by employing three Choquet integral-based hierarchical networks with the hierarchical structure to determine possible ranges of the degree of importance of respective aspects and attributes.

Customer feedback mechanisms and organisational learning in service operations

PurposeThe purpose of this paper is to explore the antecedents and consequences of the implementation of different customer feedback mechanisms with regard to their contribution to organisational learning that leads to service improvement.Design/methodology/approachA critical case organisation is chosen to explore the link between the implementation of customer feedback mechanisms and organisational learning from a middle management and employee perspective. Method triangulation is adopted, gathering qualitative and quantitative data.FindingsOrganisational learning in relation to service improvement is influenced by the interplay between the way data are gathered through customer feedback mechanisms and implemented at a branch or business unit level. The implementation depends on attitudes of middle management towards such mechanisms.Research limitations/implicationsFuture studies might investigate whether the findings can be replicated in other operational settings and triangulate the data with customer perceptions of service improvement.Practical implicationsCustomer feedback mechanisms at an organisational and business unit level need better integration. To gather customer feedback that enables more meaningful decision‐making to improve services, middle management needs to have a stronger involvement in the design and implementation of customer feedback mechanisms. Central efforts have to be placed on the support of middle management in the interpretation and use of data that is gathered through organisation‐wide feedback initiatives.Originality/valueThis paper contributes to extant knowledge by integrating the fields of service performance management practices, in this case the implementation of customer feedback mechanisms, and organisational learning.

Investigating antecedents of consumers' recommend intentions and the moderating effect of switching barriers

The current study moves beyond customer-perceived value, service quality, and corporate image and demonstrates that switching barriers are important factors influencing a customer's decision to recommend a service provider to others. This work examines a contingency model between customer-perceived value, service quality, corporate image, and switching barriers. The results indicate that the impact of these parameters on consumers' recommend intentions increases under conditions of high switching barriers. The implications of these results are also discussed.

Measuring academic libraries service quality in fuzzy environment

PurposeThe purpose of this paper is to present the perception of service quality. The measurement of service quality has grown significantly in importance over recent years. However, since customers' perceptions of service quality are expressed subjectively in vague linguistic terms therefore, a fuzzy approach to service quality of an academic library is applied and the gap between the student's expectations and perceptions analyzed.Design/methodology/approachThe LibQUAL method is applied to identify the gap between customer expectation and perceptions of the actual service received. The linguistic procedure is developed considering four dimensions of LibQUAL. The quality analyses are based on the non‐parametric rank‐based statistics (Wilcoxon's two‐sample rank sum statistic) and extended to fuzzy data which consequently reinforces results in comparison with crisp data.FindingsIt is found that there is no gap between the students' expectations and perceptions in three dimensions of “affect of service”, “library as a place”, and “personal control”. But, from the students' point of view, regarding the “access to information” dimension, there is a significant difference between the students' expectations and perceptions.Research limitations/implicationsThe instrument that is administered is a paper questionnaire version based on the 2002 model of LibQUAL.Practical implicationsIt is felt that application of this fuzzy procedure has implications on possible constraints on the statistics of interest, as well as on the p‐value of any associated significance tests.Originality/valueThis paper is possibly the first to demonstrate the application of fuzzy logic to the LibQUAL model. This fuzzy procedure persuades possibility constraints on the statistic of interest, as well as on the p‐value of an associated significance test. This fuzzy procedure persuades possibility constraints on the statistic of interest, as well as on the p‐value of an associated significance test.

Gap Analysis as a Diagnostic Tool for Improving the Slot Gaming Experience

This study offers a unique application of gap analysis as a diagnostic tool to examine slot players' perception of customer service and the quality of their gaming experience. As part of the gap analysis, an importance-performance matrix was designed to visually depict significant measures according to whether or not these measures met slot players' expectations. It was discovered that several service and quality related issues lacked in terms of perceived performance by patrons of the casino that was examined in this current study. The results of this study will help casino management identify critical factors affecting slot players' overall gaming experience and thus, allocate resources effectively to the areas for improvement.

Research Note: How Routinization Affects Power Dynamics at a Family Restaurant Chain

This article presents initial research findings regarding the impact of routinization on manager/worker/customer relationships at a family restaurant chain. Corporate attempts to precisely control store managers and workers indirectly lead store managers to rely on a system of “responsible autonomy” when interacting with workers. This opens up certain avenues of resistance for workers and negatively impacts customer perceptions of service.

Appreciative Inquiry and Hospitality Leadership

Appreciative inquiry (AI) has application to the hospitality industry as a viable organizational methodology capable of improving overall organizational performance. Leaders in the accommodation and food and beverage industries can use the AI process of inquiry and dialogue to bring about change and transformation within their organizations. These changes include a greater degree of open communication, a more supportive work environment, and involvement of all members of the organization in the creation of a shared vision and goals that move the organization toward increased focus on customer perception of service, a greater proportion of a growing market share, and sustained profitable performance. The realization of these goals begins with more effective workforce development that addresses the morale level of employees, decreases rates of employee turnover, and increases the long-term retention of workers.

Cooperative Goals in the Chinese Work Environment: A Hong Kong Case Study

This research seeks to develop an understanding of how cooperative teamwork among Chinese employees impacts upon the customer perception of service in the Hong Kong ship-repair industry. The research model was based on the ‘Theory of Cooperation and Competition’, a western-derived theory. The model used included the Chinese values of power distance, collectivism and conformity. The results suggested the need to explore alternative processes that Chinese people may engage in in managing their conflict. We question whether the ‘goals’ or ‘ends’ based approach to the operation of teams inherent in the Theory of Cooperation and Competition, is valid in the Chinese context where ‘process’ and ‘relationship’ are pivotal.

The impact of customers' perception of varying degrees of customer service on commitment and perceived relative attractiveness

PurposeThe study is motivated by business' mixed response to increasing demand for customer service, leaving the question as to its impact on performance open. The study is concerned with the impact of customers' perception of customer service (bad/good) on variables that are known to drive revenue, i.e. customer satisfaction, perceived relative attractiveness, and commitment.Design/methodology/approachData were collected through a survey among bank customers. Two groups were sampled: customers who have experienced good or bad customer service. The hypotheses were tested by applying structural equation modeling and running two group analysis using the PLS and LISREL softwares.FindingsCustomers that experience bad customer service do take into account the same variables in their evaluation as do customers that experience good customer service. They do however, put different weights on every factor in the evaluation process. Also the strength of the relationships between the variables seems to differ. Typically, analyses showed that customers experiencing bad customer service tend to consider more thoroughly all aspects of the service; the relationships between the variables were stronger and the explained variance of each construct higher, than in the group of customers experiencing good customer service. However, the paths are not different across the groups.Research limitations/implicationsThe paper has only tested the model and hypotheses in one industry. Future research should test the same model using different industries reflecting different customer involvement levels.Practical implicationsFrom this study, service managers can learn that investing in customer service in ongoing customer relations is “the right thing to do” as it is linked to customer equity through customers' commitment to the firm. Second, as customer service in such relationships drives perceived relative attractiveness, saving the bottom line by cutting back on the human side of the customer interaction, may harm the firm's competitive position in the marketplace.Originality/valueThe impact of customer service on key performance variables in ongoing relations has to the knowledge never been studied before.

Service Quality Dimensionality: A Study of the Indian Banking Sector

ABSTRACT The Indian banking industry is going through turbulent times. With the lowering of entry barriers and blurring product lines of banks and non-banks since the financial sector reforms, banks are functioning increasingly under competitive pressures. Hence, it is imperative that banks maintain a loyal customer base. In order to achieve this and improve their market and profit positions, many retail banks are directing their strategies towards increasing customer satisfaction and loyalty through improved service quality. Moreover, with the advent of international banking, the trend towards larger bank holding companies, and innovations in the marketplace, customers have greater and greater difficulty in selecting one institution from another. Therefore, the current problem for the banking industry in India is to determine the dimensionality of customer-perceived service quality. This is because if service quality dimensions can be identified, service managers should be able to improve the delivery of customer perceived quality during the service process and have greater control over the overall outcome. The objective of the study was to explore the dimensions of customer perceived service quality in the context of the Indian retail banking industry. A set of service quality parameters, drawn from customers' perceptions about service quality as well as the bank marketing and service quality literature were devised. These parameters have been used in the context of four of the largest banks in India to identify the underlying dimensions of service quality, using factor analysis. The study suggests that customers distinguish four dimensions of service quality in the case of the retail banking industry in India, namely, attitude, competence, tangibles and convenience. Identifying the underlying dimensions of the service quality construct in the Indian retail banking industry is the first step in the definition and hence provision of quality service. The paper has drawn upon the findings of the service quality dimensions to contend the initiatives that bank managers can take to enhance their employees' skills and attitudes and instill a customer-service culture.

Streamlining security checkpoint throughput at Dallas/Fort Worth International Airport

Airport security issues since September 11 and the resulting passenger delays at security screening checkpoints prompted the planning department at Dallas/Fort Worth International Airport to begin looking internally for creative solutions to their own excessive wait times. Acting as in-house consultant and leading the brainstorming process, the DFW planning department created a cross-organisational team to test and collect data, synthesise recommendations and carry out overnight modifications to checkpoints to test hypotheses. The planning department created an oversight group consisting of personnel from the airlines, airport and Transportation Security Administration. The ultimate goal was to obtain a better understanding of the issues and to consider the viewpoints of all stakeholders, with the hopes of building a strong consensus for resolutions. By keeping open lines of communication and meeting frequently, all parties involved were able to have ownership in the process and better understand the whys and whens of changes. Thanks to the planning department's efforts, a 43 per cent decrease in passenger wait times in the security queue was realised. This translated into a nine-minute decrease in the average maximum checkpoint wait time and has ultimately led to a higher level of perceived customer service and passenger satisfaction among travellers at one of the world's busiest airports.

Customer satisfaction with waits in multi‐stage services

PurposeThe purpose of this study is to examine the relative importance of customer perceptions of waits in a multi‐stage service.Design/methodology/approachThe stages included the wait at the point of service‐entry, the wait during the service stage in which the core service was experienced and the wait at the service‐exit stage as the customer was preparing to leave. Satisfaction with the waits and satisfaction with the core service product, employees' behavior and the physical setting were examined in relation to customers' perceptions of service quality. Four measures of customers' perceptions of service quality were used in this study. These included overall customer satisfaction, willingness to recommend the service to friends, willingness to bring friends to the service and repatronage intentions. A survey was developed based on a review of the literature and in collaboration with the manager of a full‐service restaurant. The survey was administered during the course of the meal by restaurant employees. Multiple regression analysis was used to identify the extent to which satisfaction with each wait affected the four customer perceptions of service quality.FindingsResults showed that the only wait satisfaction that consistently affected customer perceptions of service quality involved the service‐entry wait.Originality/valueThis study is one of the first to empirically examine the effect of service waits at multiple stages of a service operation on perceptions of service quality.

Inventory and lead time planning with lead-time-sensitive demand

Supply and order lead times can have substantial effects on operations performance and perceived customer service, particularly under uncertain customer demand. Certain customers place a high premium on shorter order lead times, while others may be willing to trade a longer lead time for a lower price. This paper studies a problem in which a supplier wishes to determine the best positioning of a product with respect to order lead time and price. We consider a continuous review inventory replenishment system, where the difference between the procurement lead time and promised sales order lead time influences both cycle stock and safety stock costs, and procurement costs may increase as a result of investment in procurement lead time reduction. We provide models and methods for determining the best combination of price and sales lead time for systems with high economies of scale when demand depends on both sales lead time and price. Our results indicate that for a broad range of practical settings, such systems employ a pure make-to-stock policy or a policy that sets sales lead time equal to the procurement lead time at optimality.

An exploratory study of service quality in the Malaysian public service sector

PurposeThe paper seeks to obtain a better understanding of the extent to which service quality permeates within the Malaysian public service sector by drawing on management and customer perceptions of service quality.Design/methodology/approachTwo separate surveys were distributed to managers and customers across 86 branches of a public sector department within the Malaysian Ministry. The manager survey comprised instruments relating to organisational service performance, while the customer survey contained instruments relating to service quality and customer satisfaction. A total of 430 manager and customer surveys were completed, representing a 95 percent response rate.FindingsThe results support the conceptual model in demonstrating a strong correlation between service quality dimensions, service performance and customer satisfaction. In particular, service providers classified as “excellent” were rated most favourably in terms of responsiveness, access and credibility.Research limitations/implicationsThe generalisability of the results is limited by the absence of the employees' perception of service quality.Practical implicationsThis research adds to the body of knowledge relating to public service quality management.Originality/valueThe originality of this paper lies within the context in which this study took place. The study addresses key relationships between service dimensions, service performance and service quality within the Malaysian public service sector. Although previous research has addressed similar issues within the context of the public sector, relatively few studies pertain directly to Malaysian public services.

Being new‐customer friendly: determinants of service perceptions in retail banking

PurposeThe purpose of this paper is to study the attributes that influence perceptions of customer service in the retail banking setting from a non‐customer perspective.Design/methodology/approachThis research employs a mystery shopping approach to identify and measure key service attributes that predict the likelihood of an individual's choosing a banking location.FindingsThe measures employed accurately predicted positive and negative outcomes based on respondent choices. The data suggest that personal elements of service may be of critical importance in cultivating new customer relationships.Originality/valueExisting research related to bank service primarily focuses on customers in the context of their existing institutional relationship. This study examines a largely unexplored area of service, specifically, the issues most important to prospective customers with regard to banking choices.

RETAIL SERVICE QUALITY EXPECTATIONS AND PERCEPTIONS AMONG PHILIPPINE SMALL/MEDIUM ENTERPRISES

The Philippines is among the emerging markets in the world. Along with China, the Philippines attracts international enterprises seeking to establish a presence in Asia. This study examines small/medium enterprises (SMEs) management and employee perceptions of customer service on a number of dimensions. The results suggest that managers and employees in the Philippines behave in similar ways to those in Western countries, but there are differences, probably related to cultural characteristics. As the Philippine market becomes more involved with global business, the importance of service quality increases. The results can be valuable in the formulation of training, sales and marketing, business development, human resources management, and strategic planning. Implications for practice are discussed.

Optimising the service mix for Irish hoteliers: the challenge for small food suppliers

PurposeThis paper seeks to investigate Irish hoteliers' customer service requirements of their food suppliers and to measure the trade‐offs that hotel buyers are willing to make during the purchase decision.Design/methodology/approachThe study is based on a quota sample of 100 hotels throughout the Republic of Ireland. Drawing on earlier research and applying conjoint analysis, the study demonstrates how customer service improvements may be achieved through variations in the customer service mix.FindingsFindings indicate that, for short shelf‐life products, frequency of deliveries and the ability to carry out emergency deliveries generate the highest levels of utility. More utility is created by lower prices in the case of long shelf‐life products. Small food suppliers are found to perform better on product quality and are more responsive in terms of product delivery than larger suppliers. They are perceived to be weaker on pricing, product assortment, and innovation.Research limitations/implicationsThe small number of observations for both four‐ and five‐star hotels in the sample limited the effectiveness of cluster analysis, which would greatly assist suppliers targeting specific markets with customer service bundles.Practical implicationsBy highlighting the trade‐offs that buyers use in evaluating customer service, the findings provide suppliers with the basis for assessing their own particular service mix. An improvement in perceived customer service may be achieved by reallocating the given resources and effort in favour of those parts of the mix that generate most value for the buyer. The identified trade‐offs also provide manufacturers with the criteria that can be usefully applied to evaluate competing distributors for their products.Originality/valueBy focusing on the hotel sector, the paper provides insights into a much ignored market for food suppliers, which differs considerably from mainstream grocery in terms of concentration, buyer processes and buying criteria.

Family Business in the Middle East: An Eexploratory Study of Retail Management in Kuwait and Lebanon

The Middle East is a growing, lucrative marketplace that has recently captured the interest of the world for political as well as economic reasons due to the War in Iraq, which began in 2003. This exploratory study examines the relationship between retail small/medium enterprises (SMEs) that are family business owned, organizational commitment, and management and employee perceptions of customer service on a number of dimensions. The results suggest that managers and employees of family-owned businesses in the Middle East behave in ways similar to those in Western countries; however, there are differences, probably related to cultural characteristics. The Middle East is a richly diverse region, a myriad of unique cultures. As the market becomes more sophisticated, the importance of service quality increases. Global retailers can benefit from this study by better understanding the managers and employees in the region and the pivotal role of the family on business. Implications for practice are discussed.