CHAPTER 1
GENERALITIES OF THE STUDY
Topic: “Relationship between Service Quality and Customer Satisfaction: The Case Study of the Olympic Sports Club in Bangkok”
1.1 Introduction
When the market is full of competitors and marketing is shifted from internal consequences of performance (i.e., productivity and profit) to the external consequences of performance (i.e., consumer well-being), practitioners in the sports industries need to pay attention on customer satisfaction and service quality. (Kerkby, and Nelson, 2003) In order to enhance the profitability and productivity of a sport clubs, it must make the customers loyal to them.
In many different industries such as hotel, retail market and recreation industries, all concern about service quality and customer satisfaction. A primary goal of sports and recreation agencies is to provide customers a quality service and believe that when customers are satisfied with their experience they will revisit, share their good experience with others and be a loyal users. (Rossi and Allenby, 2003).
Nowadays, sport business face more competition
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1.4 Objective of the study
The objective of this study is to investigate the relationship between service qualities of the Olympic sports club and its customer’s satisfaction.
1.5 Scope of the Research
Current research is based on the factors of service quality and customer satisfaction. Questionnaires include demographic factors and determine satisfaction levels concerning the Olympic club service quality by the members of the Olympic club. Therefore, the findings for the study would have limited to generalize.
1.6 Limitations of the Research
Survey research was used in this study. Therefore, limitations attributed to survey research may affect the results due to potential problem areas which include to ensure that the survey questions is clear and not misleading.
1.7 Significance of the
For different types of companies, quality might refer to quality of products or quality of service. Compares with quality of products, service quality is much more difficult to measure because service is intangible and acts and processes only existing in time. In addition, service has unique characteristic which cannot be found in products, such as customer influence, inseparability of production and consumption, heterogeneity, perishability and labor intensity (Nie & Kellogg, 1999). Even though, there are still many practitioners and academics are keen on measuring service quality because it has already emerged as a key strategic issue. Companies want to better understand service quality, and to establish methods for improving quality to achieve competitive advantage and build customer loyalty (Abdullah, 2006). Based on the importance of service quality, an increasing number of literatures and companies pay attention to measuring
The top most requirement in successful marketing is achieving customer satisfaction. The business person should, most importantly, realize that customer satisfaction is the most important step into marketing success and so should always be the number one priority of the company (Ball et al, 2006). As the only people who know what customers want are customer themselves, the business
A journal article which researches service equity, satisfaction and loyalty by Johnson and Olsen (2003). is an informative article through the use of different research models and study which culminates in an understanding that cumulative evaluations are an important measure of customer loyalty. Hence management that closely examines cumulative satisfaction has a better understanding of improvement for the customer
Services are one of the factors in customer loyalty studies because of the consistent and high standards of service that provided by the hotel. The delivery of service as promised was identified as the factor, which is the most important in developing loyalty to the hotel. In contrast, employees of the hotel should ensure the quality of hotel services by constantly reviewing their guest’s needs and the management should provide service from time to time in order to improve staffs performance. The third elements which is internal marketing is also crucial to the quality of hotel services. Treating the employees as internal customers would increase the employees’ satisfaction which is fundamental to the provision of good service to the hotel customers.
Customer satisfaction is dependent of one’s intention to perform the decision to purchasing intention. On the other hand, service quality has an appositive impact on customer satisfaction because quality measure the value and this value added the loyalty (Fishbein, & Ajzen, 1975). Finally, customer satisfaction is directly or indirectly connected to customer loyalty if a customer is satisfied to buy something with full of expectation, customers may or may not be loyal to the brand or products.
Customer satisfaction and customer loyalty are the basic and main success factors in the market
Later, Parasuraman et al. (1988) revised their earlier conceptual model and conceptualized perceived service quality as “a global judgment, or attitude, relating to the superiority of the service” and also developed a 22-items instrument, recognized as SERVQUAL, which has become widely used as a generic instrument for measuring service quality. The instrument items represent five dimensions: reliability, responsiveness, tangibles, assurance and empathy. The conceptual model of Parasuraman et al. (1988) can serve as a basis for understanding customer expectations and service performance. Lee et al. (2000) have made substantial contribution to the service quality literature. They used SERVQUAL model and identified determinants of perceived service quality. Furthermore, they tried to build a relationship of these service quality determinants with satisfaction in the service-oriented firm. They have found that perceived service quality is an antecedent of satisfaction. However, they did not pay attention to whether loyalty can be the final outcome of service quality and satisfaction.Further, researchers identified various service quality dimensions and these are used as independent variables in several service quality studies. For example; Flavian et al. (2004) identified factors like access to service, service offered, security, and reputation for measuring service quality. In this study, authors measured corporate image
Customer satisfaction leads to brand loyalty. This is an assumption made very often in the hospitality industry. Based on this assumption, every company should attach utmost importance to create customer satisfaction. (Kamila,2003).
Regarding to her career choice, it is important for the author to know the factors that affecting customer satisfaction and loyalty in order to provide better service quality for the customers. Also, this is for substantial development in her future career path. These are the
The aims of research are : 1) Analyzing service quality, customer satisfaction and loyalty of full service airlines company (Garuda Indonesia) in Indonesia, and 2) Testing hypothesis on the influence service quality and customer satisfaction on customer loyalty of full service airlines company in Indonesia. Unit of observation are 160 passengers of ten profitable domestic routes of full service airlines company
In today’s competitive world, Service Quality is becoming one of the most strategic tools in measuring customer satisfaction. (Gustafsson, Johnson and Roos, 2005). To create high level of satisfaction and to develop a strong relationship with customers, customer satisfaction is very important (Deng et al., 2009). Due to these reasons, the companies consider customer satisfaction as very important element while devising their core strategies.
Service quality, in terms of customers’ perception, arises from a comparison of what customers expect that companies should offer with the companies’ service performance they perceive (Parasuraman et al, 1988). In order to maximise customer satisfaction, companies need to know what service components are important in customers’ perception and try to deliver good service quality with suitable proportions of those components.
Since the early 1980s customer satisfaction surveys have maintained a conspicuous place in the research agenda (Allen & Rao, 2000). Quality is the core strategy that organizations execute to bring better values to customers for gaining a competitive advantage. Quality is conformance to requirements (Crosby, 1979). However Juran et al. (1974) see quality as fitness for use while according to Kanji (1990) quality is satisfying the customer’s requirement continually. Service quality is the ability of the organization to meet or exceed customer expectations (Kitchroen, 2004). Research diagnose several characteristics those are associated with service quality. Schneider & Bowen (1995) proposed three crucial issues security, esteem and justice
2. Literature Review 2.1 Previous Theory on Service Quality and Customers Satisfaction Parasuraman et al., (1985, 1988) proposed service quality model for the first time and they said service quality can be measure through functional quality dimension which has five components (tangibility, reliability, responsiveness, assurance, empathy). This model identifies the gaps of service quality of the service organization which describe five gaps during the service expectation till the actual service delivery. First gap is the service providers do not know what the expectations of the customers about the service. Second gap is the service provider does not recognize the standard of service that customer expect. Specifications of the service and delivery of service is the third gap. Forth gap is related with delivery of the service. Last and final gap is the customer’s expectation about the service and the perceived service. In latter part Haywood-Farmer (1988) mentioned that there are three important attributes in a service quality for instance (1) physical facilities and processes (2) people’s behavior (3) professional judgment. However, Brogowicz et al., (1990) developed a model for
This project deals with the ‘service quality’ and ‘customer satisfaction’ of ONE BANK LTD. Data has been collected on the basis of the questionnaire and a survey was conducted. Then the results of this survey are analyzed to identify