Service Quality Competition Research Articles

Retail competition among multi-type retail electric providers in social networks

Liberalization of the electricity retail market has intensified the competition among different types of retail electricity providers (REPs), leading REPs to pay more attention to electricity consumers' (ECs') preferences for electricity service quality, such as reliability and flexibility. In addition, social learning also greatly influences consumers' electricity purchase strategies. Therefore, this paper models the price and service quality competition among multi-type REPs in a two-layer electricity retail market network that integrates electricity trading and consumer social learning. Firstly, we construct a two-layer network that transforms the dynamic process of ECs switching REPs and changing neighbors into the reconfiguration of the network structure. The upper layer is a bipartite network to express the dynamic transaction between REPs and ECs, while the lower layer is a random network to represent the learning interaction between ECs. Secondly, considering network externalities, we model a retail competition based on price and ECs' preferences for electricity service quality in the network above and get the equilibrium solutions in different scenarios by simulating the electricity consumption data of 600 London households. The results demonstrate that network externalities hinder the transmission of price signals, and the density of the EC network affects the market game result, while the update speed of the EC network has little effect. This study provides theoretical support for multi-agent decision-making in the electricity retail market.

SERVQUAL measures: Indonesian government healthcare (BPJS) from a human resource perspective

The purpose of this study is to investigate customer satisfaction with quality of service known as SERVQUAL improvement or service quality competitiveness in emerging markets. Using Indonesian government medical care as an example the author examines the satisfaction of patients. Information and data were collected through a survey of 399 BPJS users in Indonesia. All data were analyzed using Smart PLS. This study demonstrates that there is a negative value associated with the five-dimensional gap. As a result, the care provided to BPJS patients is below par. Specifically, the sensitivity dimension has the largest disparity at 0.15, while the physical evidence dimension has the smallest at 0.49. In order to raise the level of service provided, it may be necessary to take direct measures or examine tangible evidence. This study develops the relationship between different quality service models. There appears to be a substantial increase in the body of literature in the area of service quality, allowing for constant updates and the incorporation of the lessons learned from the experiences of the departed. These revised guidelines are intended to aid SERVQUAL study participants. The study gives practical support to academics and practitioners in directing service quality improvement through the use of data collected from large-scale surveys of patients and medical professionals as doctors in Indonesia.

Differentiated attributes and service-quality competition as sources of portfolio interdependence and diverging scales in banking

Why are banks’ asset–liability decisions interdependent, and why do we observe both large and small banks? We introduce convex costs in a model with both horizontal and vertical quality differentiation, finding that, as long as a single bank spends on quality attributes, strategic quality rivalry causes the portfolio decisions of all banks to be interconnected, generating portfolio interdependence regarding choices among assets and liabilities at each bank, including banks that forego vertical quality provision. In addition, diseconomies of scale allow banks to remain profitable at different scales of operations. • We model banks that can expend on quality attributes to gain market share. • Strategic rivalry causes the portfolio decisions of banks to be interconnected. • Our model explains how both large and small banks can co-exist in the same market. • Because of convex costs, less efficient banks become niche players.

Service quality and price competition in crowdsourced delivery markets

AbstractOn‐demand crowdsourced delivery platforms (CDPs) must consider service quality and price when making their decisions. In addition, CDPs may value service quality and price differently during different stages of development. Therefore, we focus on exploring the service quality and pricing strategies of duopoly CDPs under two different competition scenarios: pure price competition and joint price and service quality competition. A Hotelling framework and simultaneous game model are employed to match the two competition scenarios in real business. First, we derive the optimal solutions for the single‐homing scenario. The results show that quality differences create differentiated equilibrium prices under pure price competition. In particular, large quality differences benefit superior CDPs. Under joint price and service quality competition, CDPs set the same service quality and price, and gain the same number of agents and the same profits. Second, we extend the basic model by considering cost asymmetry, multi‐homing behavior, and different charging schemes for couriers. Compared with the basic model under joint price and service quality competition, the CDPs’ service quality and pricing decisions differ when they have different cost control and charging schemes but are identical in the multi‐homing scenario.

Inventory Sharing Under Service Quality Competition

Inventory Sharing Under Service Quality Competition

MEASURING COMPETITIVENESS IN TOURISM ENTERPRISES USING INTEGRAL INDEX

The study aims to develop the methodology of measuring competitiveness in the context of tourism enterprises. The normalization method was used to construct the integral index of competitiveness which was aggregated by 13 sub indicators. In the process of obtaining sub indicators the methods of survey and face to face interviews were used. This study recommends new method of measuring competitiveness in the context of tourism enterprises uniting human resources, service quality competitiveness, market share, and profit benchmark in one integral index. This index can be used by regional tourism destination management bodies to make better decisions regarding sustainable development of tourism destination.

지역 스포츠산업 경쟁력 및 생태계 건강성 분석을 통한 활성화 방안 연구 : 부산광역시를 중심으로

Purpose: This study is conducted to analyze the competitiveness of the Busan sports industry and the health of the industrial ecosystem, and to propose a plan to revitalize the local economy in preparation for the post-Corona.<BR> Method: Through online and telephone surveys, a total of 150 valid samples were collected from 45 sports facilities industry, 70 sports goods industry, and 35 sports service industry.<BR> Results: First, in Busan’s sports industry, the sporting goods industry had the highest overall competitiveness, followed by sports facilities and sports services. By item, product and service quality competitiveness was the highest, followed by technological competitiveness, price competitiveness, market competitiveness, manpower competitiveness, and brand competitiveness. Second, as for the health level of Busan sports industry ecosystem, efficiency showed a relatively high score, followed by innovation and robustness. In particular, among the robustness that was the lowest in the average score, the lowest score was counted for resilience. Third, looking at the factors for vitalization of the Busan sports industry, securing financial resources and funds was the highest, followed by strengthening public relations and marketing, enlargement and specialization of companies, nurturing professional manpower, improving product and service quality, and strengthening government support.<BR> Conclusion: Eventually, such analysis on the competitiveness of the local sports industry and the health of the ecosystem can be an important data for deriving practical economic revitalization plans, and if this is possible, it will be possible to reduce the uncertainty in the real economy, such as job creation and industry growth.

How Do Customers Respond to Increased Service Quality Competition?

When does increased service quality competition lead to customer defection? And, which customers are most likely to defect? Our empirical analysis of 82,235 customers exploits the varying competitive dynamics in 644 geographically isolated markets in which a nationwide retail bank conducted business over a five-year period. We find that customers defect at a higher rate from the incumbent following increased service quality (price) competition only when the incumbent offers high (low) quality service relative to existing competitors in a local market. We provide evidence that these results are due to a sorting effect, whereby firms trade off service quality and price, and, in turn, the incumbent attracts service (price) sensitive customers in markets where it has supplied relatively high (low) levels of service quality in the past. Furthermore, we show that it is the high quality incumbent’s most profitable customers who are the most attracted by superior quality alternatives. Our results appear to have long-run implications whereby sustaining a high level of service quality is associated with the incumbent attracting and retaining more profitable customers over time.

Price and Service Quality Competition with Benchmark Effect

We address the effect of the effect of benchmark effect of industry prominent firm for the influence of the duopoly competition. Consumers always consider prominent firms as the industry benchmark, when they evaluate other firms’ product, treating prominent firm as a reference point, thus show the loss aversion behavior. We find that benchmarking effect of the prominent firm makes consumer surplus increase, while decreases both firms’ profits.

How do Incumbents Fare in the Face of Increased Service Competition?

When does increased service quality competition lead to customer defection, and which customers are most likely to defect? Our empirical analysis of 82,235 customers exploits the varying competitive dynamics in 644 geographically isolated markets in which a nationwide retail bank conducted business over a five-year period. We find that customers defect at a higher rate from the incumbent following increased service quality (price) competition only when the incumbent offers high (low) quality service relative to existing competitors in a local market. We provide evidence that these results are due to a sorting effect, whereby firms trade-off service quality and price, and in turn, the incumbent attracts service (price) sensitive customers in markets where it has supplied relatively high (low) levels of service quality in the past. Furthermore, we show that it is the high quality incumbent’s most profitable customers who are the most attracted by superior quality alternatives. Our results appear to have long-run implications whereby sustaining a high level of service quality is associated with the incumbent attracting and retaining more profitable customers over time.

A service quality model of air travel demand: An empirical study

The demand for air passenger travel represents a simultaneous system in which traffic, fare and service quality, in the form of expected delay times, are jointly determined. An econometric model of air passenger travel based on the concept of service quality competition is estimated for domestic American city-pairs during the 1973–1977 regulatory period. Service quality is shown to be a significant determinant of air traffic, and the results are used to provide some indication of the relative effects deregulation is likely to have on fare and service quality across markets.