The Use of Importance- Performance Analysis for Evaluating Service Quality in Company A

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Presenter: Laura ChenAdvisor ： Dr. Hao-Wei Yang Dr. Wan-Ching ChenDec 30: 2013

IntroductionIntroduction

Literature ReviewLiterature Review

MethodologyMethodology

Contents

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INTRODUCTION

BackgroundBackground

PurposePurpose

Research QuestionsResearch Questions

Significance of the StudySignificance of the Study

The Statement of the Problem

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Background

Today customers demand better service quality in

every industry. Delivering good service quality is

an important issue because it is a factor that may

be used to develop customer satisfaction and

customer loyalty.

(Mishra, 2009)

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Background

Poor service quality may lead to negative word- of

–mouth, and affect the image of enterprises.

(Gounaris et al., 2010) 5

The Statement of the Problem

Most of the literature only focus on retail service

quality itself. This research will extend the previous

literature to a new context by comparing the

difference between customer satisfaction and

importance of retail service quality.

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Purpose

The purpose of this study is to explore how service

quality affects customer satisfaction, and to identify

both customer importance and customer

satisfaction of food chain stores in Taiwan retail

industry.

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Research Questions

1. To what extent does service quality influence customer satisfaction?

2. How does company A have to improve service

quality in order to satisfy its customers?

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Significance of the Study

The results may help retailers to identify

the needs, desires and expectations of

customers. Retailers will be in a better

position to develop marketing strategies

for their target customers.

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LITERATURE REVIEW

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Service QualityService Quality

Service Quality ModelService Quality Model

Customer SatisfactionCustomer Satisfaction

Importance-Performance AnalysisImportance-Performance Analysis

Research GapResearch Gap

Case StudyCase Study

Service Quality

Service quality is a client judgment where

he/she

compares his/her expectations with the actual

delivery in each service dimension.

(Parasuraman et al., 1988)

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Service Quality

Service quality could have a positive effect

on business profitability, because it may

enhance client retention, and attract new

customers.

(Zeitheml, 2000)

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Service Quality Model

Service GapService Gap

Retailers communications

about service quality

Actual service delivered

Standard satisfying

service to be delivered

Management perceptions of

customer expectations

Customer expectations for service quality

Customer perceptions of service quality

Knowledge gapKnowledge gap Standards gapStandards gap Delivery gapDelivery gap Communication gapCommunication gap

Parasuraman, Zeithaml, and Berry (1985) developed service quality model (PZB model).

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Retail service quality model (RSQS): Provide information on how customers perceive service quality with which they are provided (Dabholkar et al., 1996)

Service Quality ModelThe development of service quality model

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Customer Satisfaction

• Customer satisfaction is the level of a

person’s felt state resulting from comparing

a product’s perceived performance or

outcome with his/her expectations.

(Demirci & Kara, 2013)

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Customer Satisfaction

• Customer satisfaction plays a mediator role in

the effect of service quality on service loyalty.

• Service quality is an important gateway to

customer satisfaction.

(Caruana, 2002)

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Importance- Performance Analysis

• Importance- Performance Analysis(IPA) is a

simple and useful tool to identify those

attributes of service that are in need of

improvement or that are candidates for

possible cost-saving without significant

detriment to overall quality.

(Martilla & James, 1977)

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• IPA can be used to direct scarce resources to

areas where performance improvement is likely

to have the most effect on overall customer

satisfaction.

(Kitcharoen, 2004)

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Importance- Performance Analysis

Attributes that fall in this quadrant represent key areas that need to be improved immediately.

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Importance- Performance Analysis

Attributes that fall in this quadrant represent opportunities for gaining competitive advantages.

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Importance- Performance Analysis

Attributes that fall in this quadrant are not important. Managers do not need to spend many resources on this low priority cell.

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Importance- Performance Analysis

Instead of focusing on this area, managers should allocate more resources to deal with attributes that reside in Quadrant Ⅰ.

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Importance- Performance Analysis

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Research Gap

Researches regarding service quality in Taiwandried pork market have not received muchattention.

Customer expectations and satisfaction of dried pork service have not been widely investigated.

Case Study

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Company A was established in 1989. It is the

largest processed meat OEM (Original

Equipment Manufacturer) company in Taiwan.

Company A’s products have gained 30%

market share with high quality and acceptable

price.

METHODOLOGY

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Research FrameworkResearch Framework

ProcedureProcedure

InstrumentInstrument

Data AnalysisData Analysis

Research Framework

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Conduct SERVQUAL, RSQS and Stanworth (2009) modelsConduct SERVQUAL, RSQS and Stanworth (2009) models

Compare the difference between importance and customer satisfaction in chain stores

Compare the difference between importance and customer satisfaction in chain stores

Measure the performance of chain stores’ service quality Measure the performance of chain stores’ service quality

Evaluate service quality in chain storesEvaluate service quality in chain stores

Provide retailers with suggestions and recommendations: Increase customer satisfactionImprove service performanceDevelop marketing strategies to attract customers

Provide retailers with suggestions and recommendations: Increase customer satisfactionImprove service performanceDevelop marketing strategies to attract customers

Distribution Statistics Factor Analysis Reliability Analysis Validity Analysis Paired t-test One- Way ANOVA IPA

Distribution Statistics Factor Analysis Reliability Analysis Validity Analysis Paired t-test One- Way ANOVA IPA

Procedure

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Procedure

Step 1Step 1Step 1Step 1 Step 3Step 3Step 3Step 3Step 2Step 2Step 2Step 2

Deliver approximately 400 questionnaires to customers

Deliver approximately 400 questionnaires to customers

Measure the items by using a six –point Likert-type scale

Measure the items by using a six –point Likert-type scale

Develop questionnaire

Section 1 36 questionsSection 2 Personal data

Develop questionnaire

Section 1 36 questionsSection 2 Personal data

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Instrument

SERVQUAL model

5 dimensions 22 items Developed by Parasurman et al. (1988)

RSQS Retail Service Quality model

5 dimensions 28 items Developed by Dabholkar et al. (1996) Adapted to 37 items by Stanworth (2009)

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Six-Point Likert Scale

The appearance of the store is attractive.

It’s easy to find products in the store.

You can trust the service personnel of the stores.

The opening hours meet your need.

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Questionnaire –section 1

我重視的服務 我實際感受到的服務 非 常 重視

重視 有點重視

有點不重視

不重視

非常不重視

問 題

非 常 滿 意

滿意 有點滿意

有點不滿意

不滿意

非常不滿意

1.店家的外觀具有吸引力

2.店家非常有禮貌的幫您解決問題。

3.店員穿著整齊。

4.在店內購物時讓您感到舒適。

5.在店內很容易找到自己想要的商品。

6.您想要購買的商品店家都有提供。

7.店家是值得信任的。

8.店家正確無誤的保存您的消費紀錄。

9.店家接受大部分的信用卡。

10.店家裝潢具有特色。

The store accepts most of the credit cards.

(Dabholkar et al., 1996; Parasuraman et al., 1985; Stanworth, 2009)

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Questionnaire –section 1

我重視的服務 我實際感受到的服務 非 常 重視

重視 有點重視

有點不重視

不重視

非常不重視

問 題

非 常 滿 意

滿意 有點滿意

有點不滿意

不滿意

非常不滿意

26.店家網購資訊清楚易懂。

27.店員即使忙碌也會盡心為您服務。

28.店家所在位置對您而言十分方便。

29.店家會舉辦促銷活動。

30.店家的食品美味且新鮮。

31.店家的商品價格讓您覺得合理。

32.店家提供產品試吃。

33.店家能提供最新產品。

34.店家能提供多樣化產品。

35.店家重視您的消費權益。

36.店內商品新鮮有保障。

The store provides free sample.

(Dabholkar et al., 1996; Parasuraman et al., 1985; Stanworth, 2009)

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Questionnaire –section 2

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1. To what extent does service quality influence customer satisfaction?

2. How does company A have to improve

service quality in order to satisfy its customers?

Paired T-test , One-Way ANOVA

Importance-Performance Analysis

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Descriptive Statistics

IPA Factor Analysis

One-Way ANOVA

Paired T-test

• Demographic distribution

• To simplify the scales and identify theirdimensionality

• To explore the differences between demographic variables and expectations of service quality

• To identify customer importance and satisfaction

• To explore the differences between customer importance and satisfaction

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