Service sector expectation and experience of service quality, branding and loyalty in a customer perspective - Essay Example

To Negotiate and Produce You’re Proposal, To Be Further Investigated In Anticipation As Your Chosen Dissertation Topic Table of Contents Table of Contents 2 Topic 3 Research Questions 3 Contents Page 4 Literature Review 5 Methodology 8 Analysis 11 References 12 Topic “An examination of service sector expectation and experience of service quality, branding and loyalty in a customer perspective.” Research Questions Overall Aim: To examine the expectations and the experiences of service sector in relation to service quality, loyalty along with branding in a customer perspective. Research Objectives: To recognise the background, strategies and culture of service sector organisations To examine the importance of customer satisfaction and customer relationship in the present market scenario To determine the importance of service quality in relation to customer satisfaction To analyse the significance of branding in relation to customer satisfaction To define the prominence of customer loyalty in relation to customer satisfaction To ascertain the factors that affect the expectation and the experience of service sector relating to service quality, branding and loyalty in a customer perspective Contents Page Introduction Chapter One: The culture of service sector 1.1 Introduction to service sector 1.2 Experience and Expectation of service sector 1.3 Development of service sector 1.4 Products and/or services offered Chapter Two: The importance of service quality 2.1 Background of service quality 2.2 The importance of service quality in the service sector 2.3 The relationship between service quality and expectation along with experience of service sector for better customer satisfaction Chapter Three: The importance of branding 3.1 Background of branding 3.2 The importance of branding in the service sector 3.3 The linkage between branding and expectation along with experience of service sector for better customer satisfaction Chapter Four: The importance of Customer Loyalty 4.1 Background of customer loyalty 4.2 The importance of customer loyalty in the service sector 4.3 The relationship between customer loyalty and customer satisfaction Research Methods Data Analysis and findings Discussion of the findings Conclusion Recommendations References Appendices Literature Review According to Erocal (2005), the service sector organisations are required to be focused on providing services and/or products based on the needs of the customers. The culture as well as the operations of service organisations is often identified to be customer-centred. Contextually, Sachdev & Verma (2004) stated that service organisations are much inclined towards developing service quality, brand image and customer loyalty with the intention of meeting the preferences of the customers and gain their satisfaction at the utmost level (Erocal, 2005). Presently, customer satisfaction is recognised as an important consideration for a business corporation to conduct its respective business operations competitively and successfully (Kumar & et. al., 2011). In the present competitive market scenario, service quality, branding along with loyalty play an imperative role towards assisting organisations in attaining greater success and profitability (Beneke & et. al., 2012). According to Beneke & et. al. (2012) and Abd-El-Salam & et. al. (2013), the service sector is required to conduct their operations based on which products and/or services are provided to customers in accordance with their expectations. In this regard, service sector related business organisations are focused intensely towards gaining superior customer satisfaction as an ultimate objective of developing competitiveness in the worldwide business market segments. In this similar concern, Agbor & Eriksson (2011) stated that level of profit margin and market share of any service sector related organisation raises or lessens are based on the concept of customer satisfaction. The prime objectives of service sector organisations are to generate enhanced profits and on the other hand minimise costs. As stated by Ford & et. al. (2011), business organisations perceive customers as the most important element for their success and development in this competitive landscape. Contextually, customer satisfaction is identified as the most important tool of generating profit in terms of raising sales. According to Agbor & Eriksson (2011), service sector organisations while meeting their expectations are able to retain them at large. Respectively, the organisations based on their experiences are able to develop customer loyalty and brand image amid customers. Consequently, service sector organisations are concentrated on formulating strategies to develop customer relationship (Beneke & et. al., 2012; Agbor & Eriksson, 2011). According to the study conducted by Oliveira (2007), there lays a link between customer satisfaction and service quality, loyalty along with branding. Presently, the customers are attracted towards obtaining quality products and/or services. In this regard, the service sector organisations are required to provide better service quality in accordance with which the customers are able to acquire enhanced value added services. Respectively, organisations are able to develop an effective relationship with customers, which facilitates in retaining as well as attracting a huge number of customers. Consequently, the customers meeting their needs as well as requirements develop positive attitudes and loyalty towards a particular product and/or service. In this respect, Oliveira (2007) and Seaton & Bennett (1996) noted that service sector organisations that are able to meet the needs along with the requirements of the customers, develop an enhanced brand image in the business market segments. In this regard, Gronfeldt & Strother (2005) noted that the experience and expectation of service sector organisations play an effective role in satisfying the customers based on fulfilling their service requirements (Gronfeldt & Strother, 2005; Hennig-Thurau & Hansen, 2000). In this regard, Kayaman & Arasli (2007) signified that service sector organisations are required to focus on different aspects that include service quality, loyalty and branding in order to excel in their business operations along with performances. Accordingly, Kayaman & Arasli (2007) implied that service organisations performing business operations in accordance with the preferences of the customers develop better competitive advantages as compared to other business rivals existing in the business market segments. Subsequently, service organisations with better provisions in relation to service quality, loyalty and branding are facilitated with the opportunity of expanding their market share, generating more profits and most vitally raising sale figures (Kayaman & Arasli, 2007; Fen & Lian, 2006). Similarly, Kheng & et. al. (2010) stated that service organisations are required to conduct their operations with better assurance, reliability and empathy, so that businesses are performed in a sustainable and profitable manner. In this regard, the strategies of service organisations are required to be customer oriented for gaining superior customer satisfaction. According to Maddern & et. al. (2010), in this competitive business environment, services organisations should concentrate on enhancing their service quality in order to provide better value added services to the customers. Additionally, customer loyalty might be used as an effective tool of retaining the existing customers as well as attracting the newer ones (Kheng & et. al., 2010). Methodology In a research approach, a systematic investigation is usually conducted for analysing different information, ideas along with facts about a particular research topic in an appropriate manner. In this proposed research study, a mixed approach comprising both qualitative along with qualitative research methodology will be taken into concern. Additionally, the design of this approach would be based on philosophical assumptions along with inquiry methods in accordance with the collected data. It would be vital to mention that the concept of mixed research approach is regarded as the mixture of social along with economic factors that can ultimately be judged with the aid of executing both quantitative as well as qualitative methodologies (Sage Publications, n.d.). In mixed research approach, qualitative research method emphasises the assessment of relevant information in non-numeric structure (Hancock, 2002). On the other hand, the quantitative research approach represents systematic examination of various social phenomena through the implementation of numerical, computational or statistical procedures (Rao & Woolcock, 2003). Specially mentioning, hypotheses will be developed for analysing the collected data. These hypotheses will be as follows: Hypothesis 1 Null hypothesis (Ho): Gap between service sector expectation and experience is significant in case of service quality from customer perspective Alternate hypothesis (H1): Gap between service sector expectation and experience is insignificant in case of service quality from customer perspective Hypothesis 2 Null hypothesis (Ho): Gap between service sector expectation and experience is significant in case of branding from customer perspective Alternate hypothesis (H1): Gap between service sector expectation and experience is insignificant in case of branding from customer perspective Hypothesis 3 Null hypothesis (Ho): Gap between service sector expectation and experience is significant in case of customer loyalty from customer perspective Alternate hypothesis (H1): Gap between service sector expectation and experience is insignificant in case of customer loyalty from customer perspective It is worth mentioning that relevant data will be collected from primary as well as secondary sources. Primary data will be collected from conducting questionnaire survey based on close-ended questions and secondary data will be collected through review of literatures along with other sources such as websites, journals and books. The sample size will comprise 100 customers in the form of the participants or respondents. The following table illustrates the questions that are to be included in the questionnaire. Objectives Expectation Experience Service Quality Are the services offered, meet your expectations? What services do you expect from service sector? What value added services offered? Are the services offered based on your needs and demands? Branding Do the services offered in accordance with perceived brand image? Does brand value of service assists in performing operations effectively? Does improved brand image aids in performing operations competitively? Does brand image assists service sector in increasing market share? Loyalty What services and values develop positive attitudes toward service sector? Does customer loyalty is related with customer satisfaction? Does customer loyalty assists in retaining customers? Does your loyalty assists you in developing better relationship with service sector? Analysis The data to be collected will be stored through manual along with electronic means. The data collected from the questionnaire survey will be analysed through certain software such as Microsoft Excel. The close-ended questions will be analysed with the assistance of graphs and pie charts among others. Additionally, the hypotheses formulated will be analysed through Chi-Square testing method. References Abd-El-Salam, E. M. & et. al. 2013. The impact of Corporate Image and Reputation on Service Quality, Customer Satisfaction and Customer Loyalty: Testing the Mediating Role. Case Analysis in an International Service Company. The Business & Management Review, Vol. 3, No. 2, pp. 177-196. Agbor, J. M. & Eriksson, J., 2011. The Relationship between Customer Satisfaction and Service Quality: A Study of Three Service Sectors in Umea. Master Thesis. [Online] Available at: http://umu.diva-portal.org/smash/get/diva2:448657/FULLTEXT02.pdf [Accessed March 01, 2014]. Beneke, J. & et. al., 2012. Examining the Effect of Retail Service Quality Dimensions on Customer Satisfaction and Loyalty: The Case of the Supermarket Shopper. Acta Commercii, pp. 27-43. Seaton, A. V. & Bennett, M. M., 1996. The Marketing of Tourism Products: Concepts, Issues and Cases. Cengage Learning EMEA. Erocal, D., 2005. Case Studies of Successful Companies in the Services Sector and Lessons for Public Policy. OECD Science, Technology and Industry Working Papers, 2005/07. [Online] Available at: http://www.oecd-ilibrary.org/docserver/download/5lgqqh87sbns.pdf?expires=1393648785&id=id&accname=guest&checksum=F69C5BC3313A7BC7FD4AC1ECF29FC338 [Accessed March 01, 2014]. Fen, Y. S. & Lian, K. M., 2006. Service Quality And Customer Satisfaction: Antecedents of Customer’s Re-Patronage Intentions. Sunway Academic Journal, Vol. 4, pp. 59-73. Ford, R. & et. al., 2011. Managing Quality Service In Hospitality: How Organizations Achieve Excellence In The Guest Experience. Cengage Learning. Gronfeldt, S. & Strother, J., 2005. Service Leadership: The Quest for Competitive Advantage. SAGE. Hancock, B., 2002. An Introduction to Qualitative Research. Trent Focus Group. [Online] Available at: http://faculty.cbu.ca/pmacintyre/course_pages/MBA603/MBA603_files/IntroQualitativeResearch.pdf [Accessed March 01, 2014]. Hennig-Thurau, T. & Hansen, U., 2000. Relationship Marketing: Gaining Competitive Advantage Through Customer Satisfaction and Customer Retention. Springer. Kayaman, R. & Arasli, H., 2007. Customer Based Brand Equity: Evidence from the Hotel Industry. Managing Service Quality, Vol. 17, No. 1, pp. 92-109. Kheng, L. L. & et. al., 2010. The Impact of Service Quality on Customer Loyalty: A Study of Banks in Penang, Malaysia. International Journal of Marketing Studies, Vol. 2, No. 2, pp. 57-66. Kumar, V. & et. al., 2011. The Impact of Operations Performance on Customer Loyalty. Service Science, Vol. 3, No. 2, pp. 158-171. Maddern, H. & et. al. 2010. Customer Satisfaction and Service Quality in UK Financial Services. Discussion Papers in Management. [Online] Available at: https://ore.exeter.ac.uk/repository/bitstream/handle/10036/48253/0710.pdf?sequence=1 [Accessed March 01, 2014]. Rao, V. & Woolcock, M., 2003. Mixed Methods and Program Evaluation. Integrating Qualitative and Quantitative Approaches in Program Evaluation. [Online] Available at: http://siteresources.worldbank.org/SOCIALANALYSIS/11048901120158274352/20566665/Integratingqualitativeandquantapproachesraoandwoolcock.pdf [Accessed March 01, 2014]. Sachdev, S. B. & Verma, H. V., 2004. Relative Importance of Service Quality Dimensions: A Multisectoral Study. Journal of Services Researches, Vol. 4, No. 1, pp. 93-116. Sage Publications, No Date. Understanding Mixed Methods Research. What Is Mixed Methods Research? [Online] Available at: http://www.sagepub.com/upm-data/10981_Chapter_1.pdf [Accessed March 01, 2014]. Oliveira, R. C. D., 2007. Evidences from Link Between Quality and Loyalty in e-service: An Empirical Study. Revista Eletronica Sistemas & Gestao, Vol. 2, No. 1, pp. 1-15. Read More