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The Role Of Physical Environment, Price Perception And Service Quality Essay

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This chapter discusses the research literature review on the roles of physical environment, price perception and service quality in determining customer loyalty. Chapter 2 will includes the headings: the SERVQUAL model, the physical environment, price perception, what is customer satisfaction and what is customer loyalty.
2.1 The SERVQUAL model. Delivering an excellent customer service that meets the customers need allows the customer to come back and repurchase the products. In determining the customer service quality, Parasuraman, Zeithaml, and Berry (1985) have comes out with ten components to evaluate customer service quality: reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding/knowing the customer and tangibles. Later these ten key categories were summaries to five dimensions of service quality which also known as SERVQUAL: reliability, responsiveness, assurance, empathy and tangibles. According to Kulasin (2005), the definition of each dimensions are as follow:
Dimensions
Definition
Reliability
The ability to perform the promised service dependably and accurately
Assurance
The knowledge and courtesy of employees and their ability to convey trust and confidence
Tangibles
The appearance of physical facilities, equipment, personnel and communication materials
Empathy
The provision of caring, individualized attention to customers
Responsiveness
The willingness to help customers and to provide prompt service

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