Customer Priorities Research Articles

COMPARATIVE ANALYSIS OF SERVICE QUALITY IN PUBLIC SECTOR BANKS AND INDIA POST’S FINANCIAL SERVICES USING SERVQUAL MODEL

Financial services which often involve sensitive transaction such as savings, insurance, loans and investments need to be high in service quality to build trust and credibility among customer. In financial transactions customers need to feel secure that their investments are managed with care and expertise. Service quality of financial services plays a fundamental role to the functioning of modern economies. The present study compares the service quality of Public Banks and India Post Office Financial Services using the SERVQUAL model which assesses five dimensions of service quality: tangibles, reliability, responsiveness, assurance and empathy. The present study employs a cross-sectional survey approach with data collected from 200 respondents through a structured questionnaire. The findings of the study reveal significant differences in service quality perceptions between the public banks and India Post’s financial services. Public Banks are perceived to offer better tangibles and higher levels of empathy compared to India Post which indicates superior physical facilities and more personalized customer services by public banks. However no significant difference in reliability, responsiveness and assurance between the two service providers is found. The study finds a significant positive relationship between service quality dimensions and overall customer satisfaction which highlights the importance of tangibles and empathy dimension in enhancing customer satisfaction. The research intends to shed light on the differences in service quality of public banks and India post. The recommendations based on the study result will help both the service providers to understand customer priorities and enhance their satisfaction.

P-facility capacitated location problem with customer-equilibrium decisions: a recreational case study in Mazandaran province

Purpose This paper aims to propose a bi-level mixed integer linear location-allocation problem. The upper-level objective function is dedicated to minimizing the total distances covered by customers to meet the p-selected facilities and the fixed cost values for establishing these facilities. While in the lower level, a customer preference function evaluates the priority of customers in selecting facilities. Design/methodology/approach The solution approach to the proposed model uses the Karush–Kuhn–Tucker (KKT) optimality conditions to the lower-level problem where a set of p-selected facilities are introduced as the selection of the upper-level decision maker. The bi-level model reduces to a single-level model with some added binary variables. Findings Sensitivity analysis of the proposed bi-level model concerning variations of such different parameters as customers’ preferences and the number of selected facilities have been provided, using some numerical examples. Also, locating a recreational facility in Mazandaran province, Iran, has been provided to evaluate the reliability of the proposed model and efficiency of the solution approach, as well. Originality/value To the best of the authors’ knowledge, this paper is original and its findings are not available elsewhere.

Analysis of Service Quality PT Pos Indonesia to Improve Market Share

In Indonesia's postal and logistics business, PT Pos Indonesia faces increased competition. Despite logistics' annual growth, the company's market share has declined. To be competitive in the courier and logistics market, PT Pos Indonesia must design a business strategy to improve its service quality and complement its good operational performance. This requires recognizing customer priorities and improving the company's performance in these areas. PT Pos Indonesia can use Importance-Performance Analysis (IPA) to identify customer-important service quality dimensions and underperforming areas by conducting internal and external evaluations. This complete strategy will allow PT Pos Indonesia to prioritize its efforts, strategically allocate resources, and focus on service quality that will most effect customer satisfaction. Based on the investigation, integrated logistic cooperation and solutions were presented to fill service shortages. These efforts used integrated logistical partnerships, staff advocacy, and an advanced marketing platform to improve coordination and delivery speed, employee competencies, and consumer insights. These measures were meant to bridge the gap between customer expectations and service level agreements, delivery speed, personnel competence, and customer needs. These techniques can help PT Pos Indonesia boost customer satisfaction and market share.

Meeting the closed‐loop challenge: The “Who‐What‐How” strategic choices for a successful remanufacturing approach

AbstractRemanufacturing is a life‐cycle renewal process recognised as one of the most effective circular strategies that can be adopted to achieve sustainable production. However, its potential has been hindered by the absence of an integrated perspective across various business domains to catalyse successful remanufacturing efforts. This paper aims to explore how such an integrated perspective can facilitate the creation of sustainable value within remanufacturing business models. To fill this gap, an in‐depth longitudinal case study was conducted on how remanufacturing practices can be effectively implemented in the white goods sector. The research identifies four fundamental mechanisms that, when used synergistically, pave the way for a successful remanufacturing approach yielding triple‐bottom‐line benefits. The study contributes to the remanufacturing literature by illustrating how (i) moving from products to solutions that fulfil customer priorities, (ii) resequencing business processes according to customer‐oriented logic, (iii) enhancing the clock‐speed of decision‐making and (iv) sharing risks within the supply chain, can unveil new strategic positioning for sustainable value creation. From a practical perspective, it advocates for the adept management of remanufacturing uncertainties through continuous, active questioning of “Who‐What‐How” choices and the cultivation of circular and organic interdependencies.

Customer Selection in the Conversion Program of LPG Stove to Induction Stove

The oversupply condition is due to differences in the current electricity supply which is higher than actual electricity demand. One option to increase demand is by converting LPG stoves into induction stoves. To achieve the conversion goal successfully, a customer selection process must be carried out to determine the conversion targets, aiming for a significant increase in electricity demand with the lowest investment costs. The main problem is the absence of a standard for determining conversion targets. The combination of clustering techniques and Multiple Criteria Decision Making (MCDM) analysis provides the best ideal solution to overcome these problems. The research included several main criteria for selecting customers that support the success factors of implementing a conversion program. The initial analysis involved clustering customers based on coordinates using the k-means method. By using the clustered customer data, the TOPSIS (Technique for Ordering Preference by Similarity to an Ideal Solution) method identified the best cluster based on general criteria. Additionally, using detailed customer data, the TOPSIS method also identified the ranking of customer priorities for each selected cluster. The recommended priority target customers are those with the greatest potential for additional kWh, the best level of electricity reliability, shortest distance to the cluster centroid, and supplied by feeders and distribution transformers with the largest reserve margin. The results indicated the difference in revenue improvement compared to the current method was US$ 16,291.31 per month. Investment costs were also reduced by US$ 166,084.80 compared to the current method. The other results were a reduction in operational costs, improvement in average reliability according to the SAIDI SAIFI, improvement in the average operation-hours, and an improvement in the distribution transformer average reserve margins.

Two-Stage Delivery System for Last Mile Logistics in Rural Areas: Truck–Drone Approach

In rural areas of China, the challenges of efficient and cost-effective distribution are exacerbated by underdeveloped infrastructure and low population density, with last mile logistics distribution posing a significant obstacle. To address the gap in drone application for last mile logistics in rural areas, a truck–drone distribution model was developed based on the specific conditions of rural regions. The improved fuzzy C-means algorithm (FCM) and genetic simulated annealing algorithm (GASA) were employed to tackle real−world cases in rural areas. The focus of the truck–drone system is to optimize the rural logistics distribution process, reduce delivery time, and minimize costs while considering factors such as maximum mileage of trucks and drones as well as customer priority. Compared to traditional methods, this system has demonstrated notable improvements in distribution efficiency and cost reduction, offering valuable insights for practical drone applications in last mile rural logistics.

Identifikasi Mission Drift Pada Keadilan Jender dan Inklusi Sosial di Lembaga Keuangan Mikro Syariah

Islamic Microfinance institutions (IMFIs) their operations are expected to not only consider financial performance, but must accommodate the principles of gender justice, because humans both men, women and people with disabilities are equally as khalifatullah fil ard to manage the earth as God wills. However, several studies show a shift in the mission carried out by IMFIs. This research aims to determine the forms of mission drift that occur at IMFIs, especially Baitul Maal Wat Tamwil in 3 districts in Central Java, District of Jepara, Kudus and Demak. These three regions were chosen because they have different levels of IMFIs development. The research results show that the forms of mission drift that occur include: (1) Differences in the accessibility of financial services based on gender; (2) Changes in IMFIs customer priorities; (3) Product changes that prioritize bankable customers; (4) Increasing of Margin, Ujroh profit sharing portion and costs; (5) Changing the focus of financing to be more profit-oriented. The implication of the results of this research is that MFIs need to mainstream gender by paying attention to the portion of financing and absorbing public funds in a Gender-equity manner by encouraging balance between the portions of men and women. Regulators need to carry out strict supervision so that their commitment to maintaining the IMFIs mission values, apart from that, stimulus to institutions that prioritize gender justice also needs to be provided.

The stochastic share-a-ride problem with electric vehicles and customer priorities

We introduce a stochastic share-a-ride problem in which a fleet of electric vehicles (EV) in a ride-hailing system are dynamically dispatched to serve passenger and parcel orders in a shared manner. We assume uncertain demands of both passenger and parcel orders and consider that passenger orders have priority over parcel orders. Passengers must be transported directly from their origins to destinations, while parcels can share a vehicle with other orders. The operator of the ride-hailing platform needs to decide whether to accept a newly arrived service request, how to assign orders to vehicles, and how to route and charge the EVs. To develop dynamic policies for the problem, we formulate the problem as a Markov decision process (MDP) and propose a reinforcement learning (RL) approach to solve the problem. We develop action-space restriction and state-space aggregation schemes to facilitate the implementation of the RL algorithm. We also present two rolling horizon heuristic methods to develop dynamic policies for our problem. We conduct computational experiments based on real-world taxi data from New York City. The computational results show that our RL policies perform better than the three benchmark policies in terms of serving more orders and collecting more rewards. Our RL policies are able to make high-quality decisions more efficiently when compared with the rolling horizon policies.

Scheduling of automated ore terminal operations based on fixed inflow rhythm

To facilitate transportation, some mines construct specialized ore terminals for outbound shipments. However, these terminals frequently encounter challenges when synchronizing their schedules with the production plans of the mines. The primary issue arises due to the inherent deviation between vessel demand and mine production schedules. The terminals must efficiently arrange storage positions for diverse cargo types and berthing orders of vessels to reduce the time vessels spend at the terminal and operation time. In this study, we propose a comprehensive two-step model framework that considers various customer priorities to optimize the operational plans for each operation. In the first step, we propose a column-generation approach to generate candidate berth plans. Subsequently, we evaluate the feasibility of berth plans and construct an infeasible CUT to modify the model. We implement the developed framework in real-world case studies to demonstrate its practicality and potential. Computational outcomes underscore the method’s efficacy in resolving coordination challenges between mines and terminals. Furthermore, it exhibits a noteworthy capability to diminish the terminal’s spatial requirements, enhancing its pragmatic value.

Research on Path Optimization of Vehicle-Drone Joint Distribution considering Customer Priority

To meet the personalized distribution needs of customers, comprehensively consider customer value, the urgency of customer needs, and the impact of priority distribution to the customer on the enterprise, and based on regional restrictions, put forward vehicle-drone joint distribution path optimization problem considering customer priority. First, the goal is to minimize the sum of total distribution cost and customer priority cost integrating soft time windows and constructing a path optimization model of the vehicle-drone joint distribution. Second, a two-stage hybrid algorithm is proposed for the problem model. In the first stage, the deep neural network and the grid search improved support vector machine algorithm (DNN-GSM-SVM) are used to screen and classify customer priority features, and in the second stage, adaptive large-scale neighborhood search improved genetic algorithms (ALNS-GA) are used to solve the problem of vehicle-drone joint distribution path planning problem. Finally, combined with the numerical example, the optimization scheme of the vehicle-drone joint distribution path considering priority is analyzed. Compared with the three algorithms and error analysis, the effectiveness of the model and the two-stage algorithm was verified. Compared with the results of the scheme that does not consider priority, the results show that priority can significantly improve customer satisfaction. The efficiency of the vehicle-drone joint distribution was verified by comparing the three scenarios.

Enhancing Sugar Sales Through Quality Improvement and Customer Preferences

This study investigates factors influencing the selling price of PT PG Candi Baru's sugar products, utilizing the Importance Performance Analysis (IPA) - Kano method and Quality Function Deployment (QFD). Despite consistent sales growth, the company's selling value needs enhancement. Findings reveal PT PG Candi Baru's superiority in product design, packaging durability, and availability compared to competitors. However, deficiencies in the weight measurement parameter of the 1 kg retail sugar product are noted. Renewing the 1 kilogram retail machine, integrated with a scale with an error rate of less than 0.5, is proposed to address this issue. Additionally, tightening quality control selection related to weight measurement is recommended. This research offers insights for improving PT PG Candi Baru's product competitiveness, contributing to the understanding of customer preferences and suggesting actionable strategies for the company's development. Hightligh: Customer priorities identified: IPA-Kano and QFD methods used. Product superiority: Design, packaging, availability excel. Renewal recommendations: Update machine, improve quality control for weight. Keywords: Sugar products, Selling price, Quality improvement, Industrial engineering, Customer preferences

Model and algorithm for pharmaceutical distribution routing problem considering customer priority and carbon emissions

Abstract Pharmaceutical distribution routing problem is a key problem for pharmaceutical enterprises, since efficient schedules can enhance resource utilization and reduce operating costs. Meanwhile, it is a complicated combinatorial optimization problem. Existing research mainly focused on delivery route lengths or distribution costs minimization, while seldom considered customer priority and carbon emissions simultaneously. However, considering the customer priority and carbon emissions simultaneously will not only help to enhance customer satisfaction, but also help to reduce the carbon emissions. In this article, we consider the customer priority and carbon emission minimization simultaneously in the pharmaceutical distribution routing problem, the corresponding problem is named pharmaceutical distribution routing problem considering customer priority and carbon emissions. A corresponding mathematical model is formulated, the objectives of which are minimizing fixed cost, refrigeration cost, fuel consumption cost, carbon emission cost, and penalty cost for violating time windows. Moreover, a hybrid genetic algorithm (HGA) is proposed to solve the problem. The framework of the proposed HGA is genetic algorithm (GA), where an effective local search based on variable neighborhood search (VNS) is specially designed and incorporated to improve the intensification abilities. In the proposed HGA, crossover with adaptive probability and mutation with adaptive probability are utilized to enhance the algorithm performance. Finally, the proposed HGA is compared with four optimization algorithms, and experimental results have demonstrated the effectiveness of the HGA.

Simulation Model for the Formation of Distributive Routes in a Dynamic Urban Environment

The share of small shipments in the total volume of cargo transportation has increased significantly. However, irrational routes are formed, customers’ requirements for timely delivery of goods are ignored, and vehicles of irrational carrying capacity are used on distribution routes, which significantly increases logistics costs and the cost of goods. The limitations and problems of existing solutions were analysed. Theoretic methods are not applicable to the Vehicle Routing Problem with more than 17 customers due to computational complexity. The heuristic methods that were examined focus on creating the shortest routes but do not consider customer priority, route restrictions, or potential service strategies. Therefore, a metaheuristic Genetic algorithm was chosen for route formation tasks. The research is aimed at developing a simulation model, which is based on the use of a genetic algorithm, to create optimal delivery routes for small shipments to customers within a city. The study includes modelling the route formation using a genetic algorithm for various types of cargo bicycles and trucks in a dynamic urban environment. As a result of simulation modelling, distribution routes were formed and operational parameters were optimized on cargo delivery routes in the city for various types of vehicles with different carrying capacities.

СУЧАСНІ ІНСТРУМЕНТИ РЕІНЖИНІРИНГУ БІЗНЕС МОДЕЛЕЙ ПІДПРИЄМСТВ

The activity of every enterprise is constantly accompanied by challenges and threats from both the internal and external environment of its functioning. That is why effectively established processes are often a guarantee of its success and sustainability. The reengineering of business processes itself is the tool that allows you to significantly improve your work, due to a radical reassessment and transformation of the main business processes. This tool aims to achieve improvements in key indicators such as costs, quality, service and speed. The article establishes the relevance of transformations in business processes using reengineering. A retrospective of the evolution of approaches to reengineering was conducted. The experience of using it to improve the performance of the business giant Ford is presented. It has been determined what advantages enterprises receive from the reengineering of business processes. The main stages of reengineering are grouped: mapping the current state of business processes, analyzing them and identifying gaps, finding opportunities to improve business processes and their verification, developing a process map of the future state and implementing future changes. It was determined that these stages may vary depending on the specifics of the enterprise's activities. The principles of effective reengineering are presented, according to Hammer M. and Champy J. Modern business process reengineering tools are specified: IT, change management, value chains, benchmarking, model change, monitoring, active accounting, GAP analysis, Lean and Six Sigma, Business Process Management, design thinking and modeling and stimulation. Systematized recommendations for increasing the efficiency of the reorganization process, in particular, using only proven methodology, documenting the reasons for introducing changes, analyzing business needs, taking any actions taking into account the priority of customers, as well as effective change management. Further prospects of research in the chosen direction are outlined, taking into account the achievements of artificial intelligence.

Improving Sustainability Reporting by Addressing Customer Priorities: Insights from Switzerland and Singapore

Nachhaltigkeitsbemühungen sind ein wichtiger Bestandteil von Geschäftsaktivitäten und das Reporting darüber ist ein wichtiger Aspekt für das Monitoring der Leistung im Sinne von Investoren und Aufsichtsbehörden. Es ist allerdings nicht klar, inwieweit das bestehende Nachhaltigkeitsreporting und weitere, allgemeinere Kommunikationsmassnahmen Kundenprioritäten berücksichtigen und wie sie in dieser Beziehung verbessert werden können. Diese Forschung untersucht anhand von zwei Umfragen in der Schweiz und in Singapur die Prioritäten von Versicherungskundinnen und -kunden bezüglich Nachhaltigkeit sowie die Adressierung dieser Prioritäten durch die Versicherer. Die Ergebnisse zeigen, dass das bestehende Reporting die Kundenprioritäten nicht ausreichend berücksichtigt und verbessert werden kann. Dazu sollte der Fokus mehr auf die Kern-Versicherungsaktivitäten gerichtet werden und das Reporting sollte regional erstellt und somit relevanter gestaltet werden. Zusätzlich sollten Distribution, Underwriting und Schaden in die Nachhaltigkeitsbemühungen einbezogen werden, damit die Glaubwürdigkeit des Nachhaltigkeitsreportings und die Firmenpositionierung langfristig gewährleitet sind.

The moderating role of high- and low-involvement product types on customer loyalty and satisfaction in banking: an Australian perspective

PurposeThe study aims to develop a holistic model identifying the constructs that impact customer loyalty in retail banking and introduce product type as a moderating variable to the model.Design/methodology/approachA conceptual model of customer loyalty is introduced and empirically tested with 416 valid samples obtained from Australian retail banking customers. The data were analysed using partial least squares structural equation modelling and multigroup analysis.FindingsThis study confirms the moderating effect of high- and low-involvement products on the relationship between customer loyalty and satisfaction, trust, service quality, commitment and perceived value. Surprisingly, the effect of satisfaction on loyalty was much stronger with low-involvement product types and the effect of commitment on loyalty was much stronger with customers who utilise high-involvement products.Research limitations/implicationsThe study uses a sample population in Australia who utilise one of the top four banks and investigates three product types. Further research could expand the product selection and include customers who use credit unions and other banks not in the top four categories.Originality/valueThis study is the first to confirm the moderating effect product type has on the customer loyalty relationship in retail banking in regard to high- and low-involvement product categories. The research provides a deeper understanding of the factors that influence customer loyalty and identifies which types of products influences customer loyalty the most. Additionally, this study highlights the importance of understanding the different needs and priorities of customers using different product types in order to effectively influence their loyalty.

THE ROLE OF A MEDIATOR IN MANAGING ART PROJECT TEAMS

The paper reviews and analyzes approaches to the formation of project teams. The disadvantages, probability and feasibility of applying each approach to the implementation of art projects are identified. Approaches to team building and parameters for determining well-coordinated teamwork that directly affect its effectiveness are considered and analyzed. Arguments are presented for the expediency of involving a psychology specialist both for the organization as a whole and for the project team during the implementation of a specific project. Arguments are presented for the expediency of involving a mediator in projects of any field and, especially, in art projects. The roles and tasks of psychology and mediation specialists in managing art project teams are clarified in order to analyze the functional similarities and differences in their work. On the basis of this analysis, a matrix of distribution of functions is formed, which determines which of the most common situations in the work on an art project are within the competence of a psychologist, and which require the intervention of a mediator. This analysis proves the need to involve a professional mediation specialist in the implementation of art projects, along with a psychologist, for a more effective outcome in resolving conflicts and disputes, including the settlement of conflicts of interest arising in the process of negotiating and concluding agreements and contracts. This matrix can be used not only for art projects, but also as a useful tool for a project manager in the distribution of functions when engaging a mediator in projects of any kind. Two ways of involving a mediator in an art project are considered: as a full-time employee of the organization and inviting an external specialist to work on a specific project. The advantages and disadvantages of each of them are analyzed. The result of the analysis shows that it is impossible to unambiguously determine the optimal method for all art projects. Based on the priorities of the art project customer and an assessment of the advantages and disadvantages of each method, the project manager chooses the method of involving a mediator in each art project separately.

Analisis Pengaruh Kualitas Pelayanan pada PDAM Tirtanadi di Kota Medan

Service quality is a top priority for PDAM Tirtandi customers in Medan City. The purpose of this research is to analyze the quality of drinking water services offered to PDAM Tirtandi customers in Medan City, as well as the supporting and inhibiting factors. The theory used is from Zeithml and Bitner, which is a measure of quality resulting from several indicators of reliability, responsibility, security, empathy and concrete evidence. The research method used is a qualitative approach through observation, interviews and documentation. The results of this study indicate that the quality of drinking water supply in PDAM Tirtanadi Medan City is not fully effective. This can be said to be ineffective based on several metrics that are used as benchmarks for research that is not carried out optimally. Supporting and inhibiting factors also determine the quality of services offered.
 Keywords: Quality, Service, PDAM

Modularization of the front‐end logistics services in e‐fulfillment

AbstractThis study exploits service modularity in front‐end logistics services in e‐fulfillment, from a customer‐centric approach, particularly in order management, delivery, and return. Through an online survey of UK customers, the service priorities of 494 respondents via AHP (Analytic Hierarchical Process) were analyzed. Extracting customers' service priorities, ordering behavior, and demographic information as input data, the clustering algorithm KAMILA (KAy‐means for MIxed LArge data sets) was further applied. The three identified customer clusters (multichannel shoppers, infrequent shoppers, and online fans) provide preliminary evidence on how commonality and variability aspects of service modularity in front‐end logistics services can optimize the number of service options and their performance levels. Therefore, our study, building on value co‐creation and modularity, proposes a systematic way of exploiting service modularity for the customer segmentation process that addresses heterogeneous customer preferences cost‐efficiently and uncomplicatedly. Furthermore, we provide a framework for the governance of front‐end logistics services, guiding outsourcing decisions. Accordingly, it reveals the implications of customer priorities and service decomposition logic choices on value creation. Finally, the propositions formulated aim to develop theoretical foundations for explaining how the heterogeneity in customer priorities for logistics services can be managed with modularity, creating value both for customers and retailers.

Factors Influencing Customer Loyalty in the Retail Banking Sector: A Study of Financial-Banking Services in the Republic of Moldova

Purpose of this research is to identify the nature of loyalty, the valence/dimensionality of this concept, and the factors that determine customers of banking products/services in the Republic of Moldova to establish long-term relationships with the bank and remain loyal to it, thereby proposing targeted measures the banks could take to keep their customers. Online survey data of 363 customers of financial-banking products/services in the country was extracted, counted, and analyzed, and the statistical results reveal that loyalty to a banking service is similar to that in interpersonal relationships, and bank-client relationships can generate friendships or even lasting partnerships over time due to proper behavior. Based on analysis results, this paper identifies manifestations of loyalty, figures out factors for developing loyalty and trusting relationships and for improving customer attitude, and innovatively proposes a few suggestions for financial institutions to formulate customer loyalty problems and develop long-term relationships with their customers, including measuring customer loyalty level to identify genuinely loyal customers, ensuring the bank’s efforts to build customer loyalty is recognized in the entire institution, relating the value of each customer to the value of rewards provided in the loyalty program, and rewarding customer loyalty according to customer priorities. Research results attained in the paper could assist bank managers in the Republic of Moldova in making managerial decisions to prevent customers from migrating to competitors and establish long-term relationships with them, and the conclusions and suggestions might be applicable to banks in other counties with similar problems around the globe.